HomeMy WebLinkAbout2/6/2008 - STAFF REPORTS - 2.J. OF P A l M S'p1
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4UFpRN�p City Council Staff Repo
Date: February 06, 2008 CONSENT CALENDAR
Subject: AWARD AIRPORT RENTAL CAR READY/RETURN LOT EXPANSION
PROJECT, CITY PROJECT NO. 2007-23
From: David H. Ready, City Manager
Initiated by: Department of Aviation
SUMMARY
The City Council authorized the collection of a S10 per transaction Customer Facility
Charge (CFC) from all on - Airport rental car customers beginning March 1, 2007, with
the proceeds to be used for Airport improvements benefiting the rental car companies.
The first project to be funded from the CFC proceeds is the expansion of the Rental Car
Ready/Return Lot, located just north of the baggage claim area at the Airport. This
action would result in authorization of the City Manager to execute a construction
contract in a form acceptable to the City Attorney with G & M Construction for this
project. The related Budget Resolution and Offsetting Budget Adjustment are also
included for approval.
RECOMMENDATION:
1. Approve an agreement with G & M Construction, Inc. for the Airport Rental Car
Ready Return Lot Expansion Project, in the amount of $1,587,000, City Project
No. 2007-23, in a form acceptable to the City Attorney.
2. Adopt Resolution No. , A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
FISCAL YEAR 2007-08.
3. Approve Offsetting Budget Adjustment for $600,000 for additional Revenue 405-
38145 and offset with CFC Ready Return Expansion expense account 405-6003-
56093.
2. Authorize the City Manager to execute all necessary documents.
ITEM NO. ��
City Council Staff Report
February 6, 2008--Page 2
Airport Rental Car Ready-Return Lot Expansion, CP 2007-23
STAFF ANALYSIS:
On March 1, 2007, the collection of a $10 per transaction Customer Facility Charge
(CFC) from all on-Airport rental car customers began, with the proceeds to be used for
Airport improvements benefiting the rental car companies. The first project to be funded
from the CFC proceeds is the expansion of the Rental Car Ready/Return Lot, located
just north of the baggage claim area at the Airport. The rental car companies provide a
very important service for travelers and local residents, and this project will greatly
enhance operations and provide a higher level of service to the airport customer.
Plans and Specifications for the project were prepared by VSA Airports, Inc., and
approved by City Council on December 12, 2007. The Notice Inviting Bids was
published on December 13`" and again on December 271", in addition to being posted by
several Plan Rooms and the City's website. The Procurement and Contracting Division
received nine (9) construction bids on January 15, 2008 from the following contractors:
1. G&M Construction : $1,587,000.00
2. Landmark Site Contractors: $1 ,982,000,00
3. Dateland Construction: $1,985,145.10
4. Vance Corporation: $2,132,085.00
5. CS Legacy Construction: $2,628,21300
6. Hazard Construction: $2,734,358.80
7. Granite Construction Co.: $2,884,705.00
8. Matich Corporation: $2,961,169.00
9. Macon Corporation: $2,992,011.00
The Engineer's estimate for this project was $1,958,504.
The bid submitted by Dateland Construction was originally for $1,973,611.10, however
staff review of the bid calculations found two (2) errors in Dateland's bid, resulting in a
corrected bid amount of $1,985,145.10, making them the third (3rd) lowest bid, instead
of second (2nd)
The low bid was submitted by G&M Construction. The company is a California
corporation, and its officers are George Marantz, President; and Diane Marantz,
Secretary/Treasurer.
Dateland Construction and its electrical contractor filed written protests regarding the
G&M bid arguing that G&M failed to list an electrical subcontractor on its bid. The City
Attorney's Office has reviewed the protest and material presented by the G&M and its
attorney and has determined that G&M holds a valid Class A — general engineering
contractor license and a valid Class 6 — general building contractor license and has the
ability to perform electrical work on such licenses. G&M has advised the City that G&M
intends to do such work itself. G&M is therefore not required to list an electrical
subcontractor. Dateland and its electrical subcontractor also contend that if G&M is
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City Council Staff Report
February 6, 2008 -- Page 3
Airport Rental Car Ready-Return Lot Expansion, CP 2007-23
performing the electrical work on its own licenses then it is required to list any specialty
parking lot gate contractor that it may retain. G&M is only required to list each
subcontractor who performs work under the bid in excess of one-half of one percent of
the contractor's total bid. G&M credibly counters that the cost of the specialty parking
lot gate contract work will not exceed the threshold amount. The City bid protest is
therefore without merit and should not be sustained and the City Council can award the
contract to G&M. Dateland Construction and its electrical contractor have been advised
of this determination.
FISCAL IMPACT:
In order to encumber this construction agreement from CFC Ready Return Expansion
405-6003-56093 and complete the project the following actions will be required:
• Budget Resolution from CFC Fund Balance for $582,452 to CFC Ready Return
Expansion 405-6003-56093. This CFC revenue was received last fiscal year
and not expensed last fiscal year.
• Offsetting Budget Adjustment for additional $600,000 CFC revenue that will be
received this fiscal year to offsetting expenditure account CFC Ready Return
Expansion 415-6003-56093.
Initially the CFC budget was very conservative until actual revenues and expenses
could be determined. By the end of the current fiscal year, total CFC revenues
generated since March 1, 2007 in a projected amount of $2,382,452 will be sufficient to
cover the entire cost of the CFC Ready Return Expansion Project.
SUBMITTED:
Thomas Nolan, Executive Director of Aviation David H. Ready, Ci nager
ATTACHMENTS:
Budget Resolution
Request for Offsetting Budget Adjustment
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING THE BUDGET FOR FISCAL YEAR
2007-2008
WHEREAS, Resolution 21901 approving the budget for the fiscal year 2007-08
was adopted on June 6, 2007, and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. ADDITIONS
Fund Activity Account Amount
405 Airport Ready Return 6003-56093 $582,452.
Customer Facility Expansion
Purpose: To amend the FY 2007-08 budget to provide funds from prior fiscal
year to fund the CFC Ready Return Expansion Project.
SECTION 2. SOURCE
Fund Activit Account Amount
405 Airport Retained Earnings 293D2 $582,452.
Customer Facility
ADOPTED THIS 6th day of February 2008.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
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Resolution No,
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. _ is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on February 6,
2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
CITY OF PALM SPRINGS
REQUEST FOR OFFSETTING BUDGET ADJUSTMENT
FROM: Aviation TO: FINANCE
TOTAL ADJUSTMENT $ 600�.00
OFFSETTING REVENUE SOURCE.
Fund/Account# Account Name: Amount $
405-38145 Customer Facility Charge 600,000.00
TOTAL $600,000.00
EXPENDITURE ACCOUNT INCREASE.
Fund/Dept/Account# Account Name: Amount $
405-6003-56093 Ready Return Expansion 600,000,00
TOTAL $ 600,000.00_
Explain the new or increased revenue:
Actual CFC revenue FY 07/08 will total 1.8M not 1.2M as was origianlly budgeted.
Describe the need for the increased expenditure:
Ready Return Expansion Project total cost will be greater than 1,280,000 originally
budgeted. Need to encumber construction contract at this time. p
Submitted by: �— ���ti�� � � '���/ Date: la D
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{ Date:
Departme Head
Date:
Assistant City Manager
Approved by: Date:
Finance
Date:
City Manager
This form should only he used when an expenditure increase request is being justified by a
related increase in revenue.
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lI CONTRACT AGREEMENT
PALM SPRINGS INTERNATIONAL AIRPORT
CITY PROIECT NO.2007-23
RENTAL CAR READY-RETURN LOT EXPANSION
THIS AGREEMENT,made and entered into this day of
.20� by and between the City of Palm Springs, California, Party of the First Part,
and G&M Construction 211 West Mesquite Avenue Palm Springs,CA 92264,Contractor,Party of the Second Part.
WITNESSETH:
Article 1. For and in consideration of she payments and agreements hereinafter mentioned,to be made and
performed by the said Party of thc First Part,and under the conditions expressed in the bonds bearing even date to
these presents and hereunto annexed,said Party of the Second Part agrees with said party of the First Part,at his or
her own proper cost and expense,to do all the work and famish all materials, except such as are mentioned in the
specifications to be famished by said Party of the First Part,necessary to complete in good workmanlike and sub-
stantial manner all of the work for: Improvements to Palm Springs International Airport,City Project No.2007-23,
in accordance with the drawings, proposal, description of work, and spccial provisions therefor, and also in
accordance with the technical specifications for this project,at the first publication of the Invitation for Bids,and all
other codes and ordinances referred to and thereby made a part hereof.
The limits and location of said work to be done is shown upon the City of Palm Springs Drawings entitled
Improvements to Palin Springs International Airport, City Project No. 2007-23, consisting of numbered sheets
which said sheuls arc hereby made a part of this Agreement.
Article 2. Said Party of the Second Part is responsible for famishing all said materials and labor,I'urnishhlg
and removing all plants,temporary work or structures,tools and equipment, and doing all the work contemplated
and embraced in this Agreement; also, for all Ioss and damage arising out of the nature of the work aforesaid, or
from the action of the elements or from any unforeseen difficulties which may arise or be encountered in the
prosecution of the work until its acceptance by the City, and for all risks of every description connected with the
work;also,for all expense incurred by or in consequence of the suspension or discontinuance of work except such
as,in the said specifications,are expressly stipulated to be borne by the City,and for well and faithfully completing
the work and whole thereof, in the manner shown and described in die said drawings and specifications and in
accordance with the requirements of the Engineer. The City shall pay and The Contractor shall receive in full
compensation therefor,the prices for the several items named in the bidding sheet of the proposal.
Article 3. The said Party of the First Part hereby promises and agrees with the said Contractor to employ
and does hereby employ the said Contractor to provide the materials and do the work according to the terms and
conditions herein contained and referred to for the unit prices bid,and hereby contracts to pay the same at the time,
in the manner, and upon the conditions above set forth; and the said Parties for themselves,their heirs, executors,
administrators,successors and assigns,do hereby agree to the full performance of the covenants herein contained.
Article 4.
A. Contract Documents: The Contract Documents consist of Notice Inviting Bids,Instructions to Bidders,
the accepted Bid Schedule, the Schedule of Values or cost-loaded CPM schedule on lump-sum projects,
Equipment or Material Proposed(when required);Bidder's Gencral Information;Bid Security or Bld Bond;
this Agreement;Worker's Comp(msalion Certificate;Performance Bond;Payment Bond;Neticc of Award;
Notice to Proceed; Notice of Completion; General Conditions of the Contract; Supplementary General
Conditions of the Contract;Technical Specifications;Drawings listed in The Schedule of Drawings in the
Supplementary General Conditions or in the Index on tlic Cover Sheet of the Drawings; inclusive;mid all
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Change Orders and Work Directive Changes which may he delivered or issued after the Fl7ective Date of
The Agreement and are nor attached hereto,
13- Order of Precedence ofConnact Documents:
I. In resolving dispures resulting from conflicts, errors, or discrepancies in any of the
Contract Docuncnls,the order of precedence shall beau follows:
a. Change Orders or Work Directive Changes
j b. Agreement
c. Federal Requirements
d, Addenda
c Contractor's Bid(Bid Forms)
f. Supplementary General Conditions
g. Notice Inviting Bids
h_ Instructions to Bidders
1. General Conditions ofthe Contract
J. Technical Specifications
k. Referenced Standard Specifications
I, Contract Drawings
M. Referenced Standud Drawings.
2. With reference to the Drawings the order of precedence shall be as follows:
a. Figures govern over scaled dimensions
b, Detail drawings govern over general drawings
o, Addenda or Change Order drawings govern over Contract Drawings
d. Contract Drawings govern over standard drawings
e. Contract Drawings govern over shop drawings
Article 5- Contract Clauses and Rcouiremcnts far Constrncdon Contmets,
A, General and Labor Clauses for All Construction Contracts a d Subcontracts
1. Consent to Assignment. The Contractor shall obtain the prior written consent of the Owner to any
proposed assignment of any interest in or part of this contract.
2. Convict Labor, No convict labor shall be employed under this contract.
3. Withholding,Owner from Contractor. The Owner may withhold or cause to be withheld from the
Contractor so much of the accrued payments or advances as may be considered necessary to pay
laborers and mechanics employed by the Contractor or any subcontractor on the work the full
amount of wages required by this contract.
4, Nonoavment of WaCes. If the Contractor or any subcontractor fails to pay any taborer or
mechanic employed or working on the site of the work any of the wages required .this.conlract,. .
the Owner may, after written notice to the Contractor, take such action as may be necessary to
cause the suspension of any further payment or advance of fiords until the violations cease.
5. ¢ubcontracts. The Contractor shall insert in each of his subcontracts the provisions contained in
this section and also a clause requiring the subcontractors to include these provisions in any lower
tier subcontracts which they may cater into,together with a clause requiring this insertion in any
further subcontracts that may in turn be made.
6. Contract Termination. A breach of paragraphs 4 and/or 5 may be grounds for termination of the
contract.
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B. Miscellaneous Clause Requirements for All Consrruction Contracts and Subcontracts Onless Otherwise
Indicated-
During the performance of this contract,the Contractor,for itself,its assignees and successors in
interest(hcrcina(ier referred to as the"Contractor")agrees as follows:
L Breach of Contract Terms - Sanctions. Contracts/Subcontracts shall contain such contractual
provisions or conditions which will allow for administrative, contractual or legal remedies in
instances where Contractors violate or breach contract terms, and provide for such sanctions and
penalties as may be appropriate. A sample clause is: "Any violation or breach of the terms of this
contract on the part of the Contractor/Subcontractor may result in the suspension or termination of
this contract or such other action which may be necessary to enforce the rights of the parties of this
agreement."
The terms and conditions of paragraph 80-09 of thu General Provisions of these Contract
Documents are hereby made a part of this agreement as fully as if set out at length herein.
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2. Contract Terminazinn. (ror contracts in excess of S10,000) This contract may be terminated by
the Owner for default or any other conditions or circumstances beyond the control of the
Contractor. fermination conditions, the manner by which it will be effected and the basis for
settlement are as follows: -- - ------
"In the event that the Owner is prohibited from completing the project because of conditions or
circumstances beyond the control of either the Owner or the Contractor such as,but not limited to,
an executive Order of the President with respect to the prosecution of war or in the interest of
national defense or an order of any State or Federal Court permanently prohibiting the
construction of the project,the Owner,actin;by and dirough its Airport Manager,may terminate
the Contract or porrion thereof by giving at least tun (10) days written notice thereof to the
Contractor.
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When the Contract or any portion thereof,is terminated before completion of all items of work in
the Contract,payment will be made for die actual number of units or items of work completed at
the Contract price. On items or units which are only partially completed,payment will be made in
proportion to the completed work as determined by the engineer in his sole and absolute
discretion,bears to the toml bid price. Acceptable materials,obtained or ordered in the work at the
time of such termination, shall at the option of the Owner be purchased from the Contractor at
actual cost as shown by receipted bills and actual cost ruoords at the point of delivery.
The intent of this provision is to provide a method of equitable settlement with the Contractor in
the event of termination of the Contract because of conditions or circumstances beyond thu control
of either party. Loss of anticipated profits shall not be cansidured. li is also the intent of this
provision drat a settlement for the work performed shall not mlieve the Contractor or his surety
from responsibility for defective work and/or materials on the completed portion of the work,nor
for labor and materials as expressed in the sutety bond or bonds. The Airport Manager or his
authorized representatives shall be given bill access to all books,correspondence and papers of the -- -
Contractor relating to this Contract in order in determine the amounts to be paid on account of the
termination of the Contract."
C. Aee_e_sJ9 DLeumen7 .Records.Etc.
1. r or All Cost Reimbursement Tv2c o n_lru_as.
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! Thu Contractor shall maintain an acceptable cost accounting system. The Owner or an authorized
representative of either, shall be allowed access to the Contractor's records which we pertinent to
the contract for the purpose of accounting and audit. The Contractor shall maintain all required
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records for three years after the Owner makes final payment and all other ending matters are
closed.
2. Par All Neao[iffied Contract's in Excess of S 10,000,
The Contractor shall maintain an acceptable cost accounting system. The Owner or any of their
duly authorized representatives, shall be allowed access to any books, documents, papers and
records of the Contractor which arc directly pertinent for the purpose of making audit,
examination, excerpts and transcriptions. The Contractor shall maintain all required records for
three years after the Owner makes final payment and all other pending matters are closed.
D. Bonding Clauses for Construction Contracts and Subcontracts.
1, The Contractor agrees to furnish a performance bond for 100 percent of the contract price. This
bond is one that is executed in connection with a contract to secure fulfillment of all the
Contractor's obligation under such contract.
2. The Contractor agrees to furnish a payment bond for 100 pcment of the contract price. This bond
is one that is executed in connection with a contract to assure payment as required by law of all
persons supplying labor and material in the execution of the work provided for in the Contract.
Article 6. The Contractor agrees to accept as his full and only compensation for ibe performance of all the
work required under this Contract such sum or sums of money as may be proper in accordance with the price or
prices set forth in the Contractor's Proposal attached hereto and made a part hereof covering all of the items.
Article 7. To the extent allowed by law,the Contractor agrees to indemnify,defend and hold harmless the
Owner, from any and all claims and damages to property and injury to persons which may arise both of and during
operations under this Contract, whether such operations be by the Contractor or by any subcontractor or anyone
directly or indirectly employed by the Contractor or any otter employee or person employed or engaged on or about,
of in connection'with,the construction.
Article&. Venue andjurisdiction ofany action will only be brought in the Indio Superior Court,Riverside
County,California.
Attontey Fees,Costs,and F.xcensee of Litigation- In the event of a breach of this agreement,the breaching
party shall pay to the non-breaching party all reasonable Attorney fees,cost and other expenses,incurred by the non-
breaching party enforcing its rights as a result of said breach-
Article 9. If any claim of lien or stop notice or any other demand for payment or security therefor,
including claims or demands upon performance and payment of bond sureties for the Contract,is made or filed with
the City or against the project with respect to this Contract by any person claiming under or Through Contractor,
including any Subcontractor or material supplier,or if at any time there shall be cvidcncc of any claim of lien,stop
j notice or other demand for which,if established,the City or the project might become liable,then the City shall have
the right to retain from any payment then due or Thereafter to become due under the Contract or to be immediately
- - reimbursed by Contractor for an amount sufficient to(i)satisfy,discharge and defend against any such claim of lien -- - -or stop notice or other demand,or any action or proceeding thereof which may be brought to judgment or award;(ii)
make good any such non-payment, non-performance,damage,failure or default; and(iii) compensate the City for
and indemnify it against any loss, liability, damage, cost and expense (including attorneys' and consultants' Fens)
which may be sustained or incurred in connection thorowith. Should Contractor,any Subcontractor,or other person
or any of Them,make,record or fUc or maintain any action on or respecting a claim of mechanice lien,a stop notice,
equitable lien,payment or performance bond or"q endens relating to the work,the Contractor shall immediately
and at its own expense, secure, furnish and record appropriate statutory release bonds of bonding companies
acceptable to the City which will extinguish or expunge said claim,stop notice or Iis nendens and Contractor hereby
agrees to indemnify,protect, defend and hold ille City harmless from any such claim,mechanics'lien,stop notice,
equitable lien,payment or performance bond or lis n_endcns,
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Article 10. Whenever any provision of the Contract Documents requires the giving of written notice,it
shall be deemed to have been validly given if delivered in person to the individual or to a member of the firm or to
an officer of the corporation for whom it is intended,or if delivered at or sent by registered or certified mail,postage
prepaid,to the last business address known to the giver of the Notice.
Article 11- No assignment by a party hereto of any rights under or interests in the Contract Documents will
be binding on another party hereto without the written consent of the party sought to be bound;and specifically but
without limitation monies that may become due and monies that are due may not be assigned without such consent
(except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the
contrary in any written consent to an assignment,no assignment will release or discharge the assignor from any duty
or responsibility under the Contract Documents.
The total estimated cast for City Projcct No.2007-23, thereof to be One NEllion Five Hundred Eighty Seven
Thousand Dollars and 00/Cents($1,587,000.00).
Signature Page Follows
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N WITNESS WHEREOF,the parties have executed and entered into this Agreement as of the date first written
above.
ATTEST. CITY OF PALM SPRING
a municipal corporation
Sy: By
City Clerk City Manager
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APPROVED AS TO FORM:
Sy:
City Attorney
CONTRACTOR: Check one: Individual —Partnership____Corporation
Corporations require two notarized signatures: One from each of the following: A. Chairman of Board, President or
any vice President AND o Secretary,Assistant Secretary,Treasurer Assistant Treasurer,or Chief Financial
Officer.
By. By:
Signature(notarized) Signature(notarized)
Name: Name.
Title, Title:
State of State of
County of County of
On before me, On before me,
I
personally appeared personally appeared
who proved to me on the basis of satisfactory who proved to me on basis of satisfactory
evidence to be the person(s)whose name(s) evidence to be the person(s)whose name(s)
islare subscribed to the within instrument is/are subscribed to the within instrument and
acknowledged to me that he/she/they and acknowledged to me that helshe/they
executed the same in his/her/their authorized executed the same in his/hedtheir authorized
capacity(ies),and that by his/her/their capacity(ies) and that by his/her/their
signature(s)on the instrument the person(s), signatures(s)on the instrument the person(s)
or the entity upon behalf of which the or the entity upon behalf of which the
person(s)acted,executed the Instrument person(s)acted,executed the instrument.
I certify under PENALTY OF PERJURY I certify under PENALTY OF PERJURY
under the laws of the State of California that under the laws of the State of California that
the foregoing paragraph Is true and correct. the foregoing paragraph is true and Correa.
... .. ... ... ...._-. . .. . ....---------------- ------- ------------------------ -------- ------------- ------- -. .. . . _...- - -- --- ------
WITNESS my hand and Official seal. WITNESS my hand and official seal,
Notary Signature. Notary Signature:
Notary Seal: Notary Seal
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PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned,
as Principal,and
as Surety, are held firmly bound unto the City of Palm Springs, a charter city, organized and existing in
the County of Riverside,California,hereinafter called the"City," in the sum of:
dollars,
for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors,
l administrators,successors,and assigns,jointly and severally,firmly by these presents,
WHEREAS said Contractor has been awarded and is about to enter into the annexed Agreement with said
City to perform the Work as specified or indicated in the Contract Documents entitled:
CITY PROJECT NO.2007-23
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NOW THEREFORE, if said Contractor shall perform all the requirements of said Contract Documents
required to be performed on its part, at the times and in the manner specified herein,then this obligation
shall be null and void,otherwise it shall remain in full force and effect.
PROVIDED, that any alterations in the Work to be done or the materials to be furnished, or changes in
the time of completion,which may be made pursuant to the lcims of said Contract Documents, shall not
in any way release said Contractor or said Surety thereunder, nor shall any extensions of time granted
under the provisions of said Contract Documents, release either said Contractor or said Surety, and notice
of such alterations or extensions of the Agreement is hcrcby waived by said Surety.
SIGNED AND SEALED,this day of .20
Contractor Surety
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By By
Title Title
j (SEAL AND NOTARIAL ACKNOWLEDGMENT
OF SURETY)
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PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned,
as Principal,and
as Surety, are held firmly bound unto the City of Palm Springs, a charter city, organized and existing in
the County of Riverside,California,hereinafter called the"City,"in the sum of:
dollars,
for the payment of which suns well and truly to be made, we bind ourselves, our heirs, executors,
administrators,successors,and assigns,jointly and severally,firmly by these presents.
WHEREAS said Contractor has been awarded and is about to enter into the annexed Agreement with said
City to perform the Work as specified or indicated in the Contract Documents entitled:
CITY PROJECT NO.2007-23
NOW TIEREFORE, if said Contractor, its subcontractors, its heirs, executors, administrators,
successors, or assigns shall fail to pay for any materials, provisions, provender, equipment or other
supplies used in, upon,for or about the performance of the Work contracted to be done, or for any work
or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code, or for any
amounts required to be deducted, withheld, and paid over to the Employment Development Department
from the wages of employees of the Contractor and its subcontractors pursuant to Section 13020 of the
Unemployment Insurance Code with respect to such labor, all as required by the provisions of Title XV,
Chapter 7, Sections 3247-3252, inclusive, of the Civil Code of the State of California and acts
arnendaiory thereof, and sections of other codes or the State of California referred to therein and acts
amendatory thereof, and provided that the persons, companies, or corporations so furnishing said
materials, provisions, equipment or other supplies, appliances or power used in, upon, for or about
performance of the work contracted to be executed or performed, or any person, company or corporation
renting or hiring implements or machinery or power for or contributing to said work to be done, or any
person who performs work or labor upon the same, or any person who supplies both work and materials
therefor, shall have complied with the provisions of said laws,then said surety will pay the same in so
amount not exceeding the sum herehibefore set forth and also will pay, in case suit is brought upon this
bond,a reasonable attorney's fee,as shall be fixed by the Court.This bond shall inure to the benefit of any
and all persons named in Section 3181 of the Civil Code of the State of California so as to give a right of
action to them or their assigns in any suit brought upon this bond.
PROVIDED,that any alterations in the Work to be done or the materials to be furnished, or changes in
i the time of completion,which may be made pursuant to the terms of said Contract Documents, shall not
in any way release said Contractor or said Surety thereunder, nor shall any extensions of time granted
under the provisions of said Contract Documents release either said Contractor or said surety,and notice
of said alterations or extensions of the Agreement is hereby waived by said Surety.
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SIGNED AND SEALED,this day of .20
Contractor Surety
BY By
Title Title
(SEAL AND NOTARIAL ACKNOWLEDGMENT
OF SURETY)
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INSURANCE REQUIREMENTS CITY OF PALM SPRINGS,W07
hAURANCT:�
THE CONTRACTOR/VENDOR SHALL FURNISH AND KEEP IN FULL FORCE THE
FOLLOWING PRIMARY INSURANCE TYPES AND MINIMUM AMOUNTS DURING THE
TERM OF THE CONTRACT:
General Liabili_k)rIns_urance $2,000,000 Combined Single Limit(CSL)
Including Bodily Injury,Contractual Liability,
Personal Injury,Independent Contractors,Broad Form
Property Damage,Product's&Completed Operations
Automobile Insurance $2,000,000 Combined Single Limit(CSL)
Including Bodily Injury&Property Damage,
iOwned,Non-Owned and hired Vehicles
Worker's Compensation Insurance Statutory limits of State of California
Including 51,000,000 Employer's Liability
INSURANCE: The Contractor/Vendor shall procure and maintain,at its sole expense,throughout the term
of this Contract and any extension thereof,all required insurance.
General Liability Insurance shall be written on a per occurrence basis, to indemnify against loss from
Liability for damages an account of bodily injury,including death there from or property damage,suffered
or alleged to be suffered by any person or persons whomsoever,resulting directly or indirectly from any act
or activities of the Contractor/Vendor, its subcontractors or any person acting for the City, or the
Contractor/Vendor or under its control or direction. The policy shall include products and eompleied
operations liability, independent contractors liability, broad form contractual liability, and cross Liability
protection. Such public liability and property damage insurance shall also provide for and indemnify the
City against any legal cost in defending claims for any alleged losses. The Contractor/Vendor shall
instruct his insurance agent or carrier to name the City of Palm Springs as an additional insured in
accordance with standard ISO additional insured endorsement form CG 2010 (1185) or equivalent
language.
Automotive Insurance. A policy of business automobile liability insurance,written on a per occurrence
basis, which include bodily injury and property damage. Said policy shall include coverage for owned,
non-owned,leased and hired vehicles.
Worker's Compensation insurance. A policy of Worker's Compensation Insurance in such amount as
will fully comply with the Laws of the State of California and which shall indemnify, insure and provide
legal defense for the Contractor/Vendor against any loss, claim, or damage arising from any injuries or
occupational diseases happening to any worker employed by, or any person retained by, the
ContractorNendor in the course of carrying out the Work or services contemplated in this Contract.
The Contractor/Vendor - An Independent Contractor/Vendor. Neither the City nor any of its
employees shall have any control over the manner, mode or means by which Contractor, its agents or
employees, perform the services required herein, except as otherwise set forth herein. City shall have no
voice in the selection,discharge,supervision or control of Contractor's employees,servants,representatives
or agents,or in fixing their number,compensation or hours of service_ Contractor shall perform all services
required herein as an independent contractor of the City and shall remain at all tunes as to City a wholly
independent contractor with only such obligations as are consistent with that role. Contractor shall not at
any time or in any manner represent that it or any of its agents or employees are agents or employees of thc
City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its
business or otherwise or a joint venturer or a mcmbcr of any joint enterprise with Contractor.
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I Indemnification. The ContractorNendor agrees to indemnify the City,its officers,agents and employees
against, and will hold and save them and each of them harmless from, any and all actions, suits, claims,
damages to persons or property,losses,costs,penalties,obligations,errors,omissions or liabilities,(herein
"claims or liabilities) that may be asserted or claimed by any person, firm or entity arising out of or in
connection with the negligent performance of the Work,operations or activities of the ContractorNendor,
its agents,employees,subconlractors,or invitees,provided for herein,or arising from the negligent acts or
omissions of the Contractor/Vendor hereunder, or arising from the Contractor'sNendor's negligent
performance of or failure to perform any tern,provision,covenant or this Contract whether or not there is
concurrent passive or active negligence on the part of the City, its officers, agents or employees but
excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its
officers,agents or employees,who are directly responsible to the City,and in connection therewith:
(a) The Contmctor/Vcndor will defend any action or actions filed in Connection with any of said
claims or liabilities and will pay all costs and expenses,including legal costs and attomcy's fees incurred in
connection therewith;
(b) The ContraetorNondor will promptly pay any judgment rendered against the City, its officers,
agents or employees for any such claims or liabilities arising out of or in connection with the negligent
performance of or failure to perform such Work, operations or activities of the ContractorNendor
hereunder;and the Contractor/Vendor agrees to save and hold the City,its officers,agents and employees
harmless therefrom;
(c) In the event the City, its officers, agents or employees ate made a party to any action or
proceeding filed or prosecuted against the Contractor/Vendor for such damages or other claims arising out
of or in connection with the negligent performance of or failure to perform the Work,operation or activities
of the ContractorNendor hereunder,the ContractorNendor agrees to pay to the City,its officers,agents or
employees, any and all costs and expenses inured by the City, its officers, agents or employees in such
action or proceeding,including but not limited to,legal costs and attorneys'fees.
General Standards for Insurance Policies.
All insurance policies shall meet the following general standards:
(a) Insurance carrier is to be placed with duly licensed or approved non-admitted insurers in the State
of California.
(b) Insurers must have a Best's rating of 13-1-,Class VII or higher(this rating includes those insurers
with a minimum policyholder's surplus of S50 to S100 million).Exceptions to the Best's rating may be
considered when an insurance carrier meets all other standards and cart satisfy surplus amounts equivalent
to a 13-r,Class VII rating.
(c) Certificate must include evidence of the amount of any deductible or self-insured retention under
i the policy.
Verification of Xosaramee Coverage.
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All individuals, coati•actors, agencies, and digahizatfops conducting business City �for the City shall provide
proof of insurance by submitting one of the following: (1) an approved General and/or Aida Liah!ily-
Fndorrement hrn•m far the C.iiv n Palm ' rw .v or(2) an acceptable Certificate of Liability Insurance
Coverage with an approved Additional Insured Endorsement (see allached) with the following
endorsements stated on the certificate:
j (a) "The City of Palm Springs, its officials, employees and agents are named as an additional
insured" ("as it relatas to a specific contract" or "for any and all work performed with the City" maybe
included in this statement).
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(b) "This insurance is primary mid non-contributory m+er aro, insurance or self-Insurance the City
may have"("as it relates to a specific contract"or"for any and all work performed with the City"may be
included in this statement).See Example A below. As an alternative w the non-contributory endorsement,
the Contractor's insurer may provide a waiver of subrogation endorsement for the General Liability policy-
This endorsement shall include the following language:
"This insurance company agrees to waive all rights ofsubrogation against the City ofpatm Springs, its
• officers, officials and employee for losses paid under the terms of this pollcy which orise from the work
performed by the named insured for the City."
(c) "The insurance afforded by this policy shall not be cancelled except after thirty days prior written
notice by certyied mail return receipt requested has been given to the City."Language such as,"endeavor
to"mail mid "but failure to mail such notice shall impose no obligation or liability of any kind upon the
company,its agents or representative"is not acceptable and must be crossed out.See Cxample B below.
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The Workers' Compensation and Employers'Liability policies shall contain waiver of subrogation clause
- in favor of City,its elected officials,officers,employees,agents and volunteers.See Example C below.
In addition to the endorsements listed above,the City of Palm Springs shall be named the certificate bolder
on the policy.
All certificates and endorsements we to be received mid approved by the City before work commences. All
cartiEcates of insurance must be authorized by a person with authority to bind coverage,whether that is the
authorized agenUbrokor or insurance underwriter. Failure to obtain the required documents prior to the
commencement of work shall not waive the contractor's obligation to provide them.
Acceptable Alternatives to Insurance Industry Certificates of Insurance.
The City will accept either a CG 20 10 10 01 or a CG 20 33 10 01 (or some form specific to a particular
insurance company that has similar warding)as long as the form is accompanied by a CO 20 37 10 01. In
addition,the City will accept the following:
i (a) A copy of the full insurance policy which contains a Thirty (30) days' cancellation notice
provision (ten (10) days for non-payment of premium) and additional insured and/or loss-payea status,
when appropriate,for the City.
(b) Binders and Cover Notes are also acceptable as interim evidence for up to 90 days from date of
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approval
Endorsement Language for Insurance Certificates,
Examples:
(a) TI-IE INSURANCE SHALL BE PRIMARY WITH RESPECT TO THE INSURED SHOWN IN
T14F SCHEDULE ABOVE, OR IF EXCESS, SHALL STAND IN AN UNBROKEN CHAIN OF
COVERAGE EXCESS OF THE NAMED INSURED'S SCHEDULED UNDERLYING PRIMARY
COWKkM IN ITHER E'VBNT,..ANY OTI-IL3It INSURANCE MKINTA=D-EY•TFIE"INSURE
SCHEDULED AB D. .. ... . . .. .. .. . ...
ABOVE SHALL BE IN EXCESS OF THIS INSURANCE AND SHALL NOT BE
CALLED UPON TO CONTRIBUTE WITH IT.
(b) SHOULD ANY OF THE ABOVE-REFERENCED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL END& rrnR—T$MAIL 30 DAYS'
WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREINT-1i.4I.1 -T9-A4,4I•b
.�]1�H^iiTMv-TrxaTr-rri-o��i,^.•L•1rI��B!�l�"vrmvrr"� vR-Lr"n-izroi-oa' �i��1z "'-+'+rn-a=zax*��pvl'1�1�•
TMxxrv°vS:� r-ei-r� 'rrivc•1k1�'
'"The broker/agent shall include a qualifier staring"10 days notice for nonpayment ofpremium."
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(c) IT IS UNDERSTOOD AND AGREED THAT THE COMPANY WAIVES THE RIGHT OF
SUBROGATION AGAINST THE ABOVE ADDITIONAL INSURED(S).BUT ONLY WITH RESPECT
TO THE JOB OR PREMISES DESCRIBED IN THE CERTIFICATE ATTACHED HERETO.
Alternative Programs/Self-Insurance. Under certain circumstances,the City may accept risk financing
mechanisms such as Risk Retention Groups,Risk Purchasing Groups,off-shore carriers, captive insumncc
programs and self-insurance programs as verification of insurance coverage. These programs are subject to
separate approval once the City has reviewed the relevant audited financial statements and made a
determination that the program provides sul}icient coverage to meet the City's requirements,
The City has recently joined SPARTA (Service Providers & Artisans Trade Activities Program) to
accommodate smaller contractors and service providers who have difficulty in meeting the City's insurance
requirements. The SPARTA Program offers a general liability program that provides the$1 million limit
and, upon request,will also provide auto insurance with the$1 million limit(only in conjunction with the
purchase of general liability insurance).SPARTA is only available during the time your company is under
contract with the City-
Insurance is provided on a per project basis and is overseen by the Municipality Insurance Services,Inc.
Essex Insurance Company provides coverage and is an A++rated company.There is a 24-hour response
time and coverage is immediate.
A quote may be obtained by calling 1-800-420-0555 or entire at www.25rarta-corn.
Type of work covered:
(a) Personal services contracts;
(b) General contractors and their subcontractors(certain specialty trades excluded);
(c) Consultants;and
(d) Providers of goods.
waiver or Modification of the Insurance Requirements.
Any waiver or modification of the insurance requirements can only be made by the City's Risk Manager or
designee at City's discretion. If you do not believe that the insurance requirements apply to you(e-g.,you
do not have employees and therefore are not subject to the State's workers' compensation insurance
requirements; you do not drive an automobile in connection with the services you provide to the City;
professional liability or errors and omissions liability insurance is not available for the type of services you
are performing etc.), please submit a written request for waiver or modification of the insurance
j requirements and the reasons underlying your request.
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