HomeMy WebLinkAboutContracts & Agreements_19-2014_CCv0001.pdf AGREEMENT FOR WATER DISTRIBUTION SYSTEM MAINTENANCE AND REPAIR
SERVICES
This agreement for water distribution system maintenance and repair services ("Agreement") is
made and entered into this 18'J' day of February, 2014 ("Effective Date"), by and between the City of
Redlands, a municipal corporation ("City"), and MCC Equipment Rentals Inc. ("Contractor"). City and
Contractor are sometimes individually referred to herein as a"Party" and,together., as the"Parties."
In consideration of the mutual promises contained herein, City and Contractor agree as follows:
ARTICLE I - ENGAGEMENT OF CONTRACTOR
1.1 City hereby retains Contractor for the performance of water distribution system maintenance and
repair services (the "Services") at locations to be determined throughout City's water service
area on a project-by-Project basis(each, a"Project").
1.2 Contractor and its subcontractors shall possess all appropriate State contractors' licenses required
for the work to be performed in connection with the performance of the well testing work, and
shall not be debarred pursuant to Labor Code sections 1777.1 and 1777.7.
ARTICLE 2 - RESPONSIBILITIES OF CONTRACTOR
2.1 The specific Services to be performed by Contractor will be more particularly described in the
written Notice to Proceed issued by City to Contractor for each individual Project.
2.2 Contractor shall comply with all applicable federal, state and local laws and regulations in the
performance of the Services including, but not limited, to all applicable Labor Code and
prevailing wage laws and non-discrimination laws, including the Americans with Disabilities
Act. Pursuant to Labor Code section 1773.2, copies of the prevailing rates of per them wages as
determined by the Director of the California Department of Industrial Relations for each craft,
classification or type of worker needed to undertake the Project are on file at City's Municipal
Utilities and Engineering Department, located at the Civic Center, 35 Cajon Street, Suite 15A
(Mailing: P.O. Box 3005), Redlands, California 92373.
2.3 Contractor acknowledges that if it violates the Labor Code provisions relating to prevailing
wages that City may enforce such provisions by withholding payments to Contractor or its
subcontractors pursuant to Labor Code section 1771.6.
2.4 If Contractor executes an agreement with a subcontractor to perform any portion of the Services,
Contractor shall comply with Labor Code sections 1775 and 1777.7, and shall provide the
subcontractor with copies of the provisions of Labor Code sections 1771, 1775, 1776, 1777.5,
1813 and 1815. Contractor acknowledges that the statutory provisions establishing penalties for
failure to comply with state wage and hour laws and to pay prevailing wages may be enforced by
City pursuant to Labor Code sections 1775 and 1813.
2.5 Contractor and its subcontractors shall comply with the provisions of Labor Code section 1776
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regarding payroll records maintenance, certifications, retention and inspection.
2.6 Contractor acknowledges that eight (8) hours constitutes a legal day's work pursuant to Labor
Code section 1810.
2.7 Contractor shall comply with the provisions of Labor Code section 1777.5 as to apprenticeships,
and Labor Code sections 1771, 1775, 1776, 1777.5. 1813 and 1815.
2.8 Contractor shall guarantee each Project against defective materials or workmanship for a period of
(1)year from the date of completion of the Project as specified in the Notice of Completion, except
where longer warranty periods are specifically stated.
All work which has been rejected by City shall be remedied, or removed and replaced by
Contractor, at Contractor's own expense, with such work conforming to the Notice to Proceed's
scope of services for each Project. Any defective material or -workmanship which may be
discovered before final acceptance or within (1) one year from the completion date specified in the
Notice of Completion shall be corrected immediately by Contractor at its own expense
notwithstanding that defective material or workmanship may have been overlooked by City in
previous inspections. Failure to inspect work at any stage shall not relieve Contractor from any
obligation to perform sound and reliable work as described in the Notice to Proceed. Any omission
or failure on the part of the City to discover or notify Contractor of defective work or material at the
time of construction shall not be deemed an acceptance, and Contractor will be required to correct
defective work or material prior to final acceptance.
During the(1)one year warranty period for each Project, should Contractor fail to remedy defective
material and/or workmanship, or to make replacements within five (5) days after written notice by
City, it is agreed that City may make such repairs and replacement and the actual cost of the
required labor and materials shall be chargeable to and payable by Contractor.
Nothing in this section shall be construed to limit the rights of City to immediately correct
conditions which may be unsafe or which may adversely affect the public health, safety and
welfare. Should said conditions later be found to be caused by defective material and/or
workmanship, Contractor shall reimburse the City for costs reasonably incurred by City.
ARTICLE 3 - PERIOD OF SERVICE
3.1 Contractor shall commence each Project upon City's delivery to Contractor of a written Notice to
Proceed for such Project.
12 Contractor shall complete the Services within the time allotted for each Project as described in the
Notice to Proceed.
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ARTICLE 4 -PAYMENT AND NOTICE
4.1 City shall pay Contractor based on a Project-by-project basis, based upon Contractor's hourly
rates and charges as set forth in Exhibit"A." which is attached hereto and incorporated herein by
reference. The total compensation to be paid to Contractor pursuant to this Agreement shall not
exceed the sum of Nine Hundred Thousand Dollars ($900,000.00).
4.2 Payments by City to Contractor shall be made within thirty (30) days after City's receipt and
approval of Contractors invoice for a Project, by warrant payable to Contractor.
4.3 All notices shall be made in writing and shall be given by personal delivery or by mail. Notices
sent by mail shall be addressed as follows:
City: Contractor:
Chris Diggs Ken Munoz
Municipal Utilities and Engineering Department MCC Equipment Rentals Inc.
City of Redlands Post Office Box 1730
Post Office Box 3005 Yucaipa, CA 92399
Redlands, CA 92373
When so addressed, such notices shall be deemed given upon deposit in the United States mail;
in all other instances, notices, bills and payments shall be deemed given at the time of actual
delivery. Changes may be made in the names and addresses of the person to whom notices are to
be given by giving notice pursuant to this section 4.3.
ARTICLE 5 —INSURANCE NDEMNIFICATION AND BONDS
5.1 All insurance required by this Agreement shall be maintained by Contractor throughout
Contractor's performance of the Services, and, except for Workers' Compensation and
Employer's Liability insurance, shall be primary with respect to City and non-contributing to any
insurance or self-insurance maintained by City.
5.2 Contractor shall secure and maintain Workers' Compensation and Employer's Liability
insurance for its employees throughout the performance of the Services pursuant to Labor Code
sections 3700 and 1860, in an amount which meets statutory requirements, with an insurance
carrier acceptable to City. The insurance policy shall include a provision prohibiting the policy's
modification of coverage limits or cancellation except upon thirty (30) days prior written notice
to City. Contractor shall execute and deliver to City a Worker's Compensation Insurance
Certification in the form attached hereto as Exhibit"B"prior to commencement of the Services.
5.3 Contractor shall indemnify, hold harmless and defend City and its elected officials, employees
and agents from and against any and all claims, losses and liability., including attorneys' fees,
arising from injury or death to persons or damage to property occasioned by any negligent or
intentionally wrongful its officers, employees and agents, in
I ful act or omission of Contractor, and
performing the Services.
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5.4 Contractor is expressly prohibited from assigning any of the work associated with the Services
without the prior written consent of City. In the event of agreement by the Parties to assign a
portion of the Services, Contractor shall add the assignee as an additional insured to its insurance
policies and provide City with the insurance endorsements prior to any work being performed by
the assignee. Assignment does not include printing or other customary reimbursable expenses
that may be provided for in this Agreement.
5.5 Contractor shall secure and maintain in force throughout its performance of the Services
comprehensive general liability insurance, with carriers acceptable to City, with minimum
coverage of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars
($2,000,000) aggregate for public liability, property damage and personal injury. City shall be
named as an additional insured and the insurance policy shall include a provision prohibiting
modification of coverage limits or cancellation of the policy except upon thirty (30) days prior
written notice to City. A certificate of insurance and endorsements shall be delivered to City
prior to commencement of the Services.
5.6 Contractor shall secure and maintain in force throughout its performance of the Services business
automobile liability coverage, with minimum limits of One Million Dollars ($1,000,000) per
occurrence, combined single limit for bodily injury liability and property damage liability. This
coverage shall include all Contractor owned vehicles used for the Services, hired and non-owned
vehicles, and employee non-ownership vehicles. City shall be named as an additional insured
and the insurance policy shall include a provision prohibiting modification of coverage limits or
cancellation of the policy except upon thirty (30) days prior written notice to City. A certificate
of insurance and endorsements shall be delivered to City prior to commencement of the Services.
5.7 The failure of Contractor to complete a Project within the time allowed will result in damages being
sustained by City. Such damages are, and will continue to be, impracticable and extremely difficult
to determine. Contractor shall pay to City, or have withheld from monies due it, the sum of Five
Hundred Dollars ($500) for each consecutive calendar day in excess of the specified time for
completion of the Project. Execution of this Agreement shall constitute agreement by City and
Contractor that Five Hundred Dollars ($500)per day is the estimated damage to City caused by the
failure of Contractor to complete a Project within the allowed time. Such stun represents liquidated
damages and shall not be construed as a penalty, and may be deducted from payments due
Contractor if such delay occurs.
5.8 Prior to and as a condition of Contractor's performance of each Project, Contractor shall execute and
deliver to City a Payment Bond as required by Civil Code section 5990, in a form as set forth in
Exhibit "C," and a Performance Bond, in a form as set forth in Exhibit "D," which are attached
hereto and incorporated herein by reference.
ARTICLE 6 - GENERAL CONSIDERATION'S
6,1 In the event any action is commenced to enforce or interpret any of the terms or conditions of
this Agreement the prevailing Party, shall, in addition to any costs and other relief, be entitled to
recover its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party.
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6.2 All documents, records, drawings, electronic data files and data base, photographic prints and
negatives, designs and specifications, cost estimates, and other documents developed by
Contractor for the Services shall become the property of City and shall be delivered to City upon
completion of the Services.
6.3 Contractor is, for all purposes under this Agreement, an independent contractor with respect to
the performance of the Services and not an employee of City. All personnel employed by
Contractor to perform the Services are for its account only, and in no event shall Contractor or
any personnel retained by it be deemed to have been employed by City or engaged by City for
the account of,or on behalf of, City. Nothing in this Agreement shall be considered to create the
relationship of employer and employee between the Parties.
6.4 Unless earlier terminated as provided for below, this Agreement shall terminate upon acceptance
by City of all Projects initiated prior to July 30, 2014.
6.5 City may terminate this Agreement for any reason, at any time at its sole discretion,upon two (2)
business days prior written notice to Contractor.
6.6 Upon receipt of a termination notice. Contractor shall (1) promptly discontinue all work
associated with the Services and (2) deliver or otherwise make available to City,, copies of any
data, design calculations, drawings, specifications, reports, estimates, summaries, and such other
information and materials as may have been accumulated by Contractor in performing the
Services. Contractor shall be compensated on a pro-rata basis for any work completed up until
notice of termination.
6.7 This Agreement, including the exhibits incorporated by reference, represents the entire
agreement and understanding between the Parties as to the matters contained herein and any
prior negotiations,proposals and agreements relating to the subject matter hereof are superseded
by this Agreement. Any amendment to this Agreement shall be in writing and approved by City
and Contractor.
6.8 This Agreement shall be governed by and construed in accordance with the laws of the State of
California.
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IN WITNESS WTWREOF, duly authorized representatives of the Parties have signed in confirmation of
this Agreement.
CITY OF REDLANDS MCC Equipment Rentals Inc.
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By
Pete Aguilar,Mayor lien � President
ATTEST
Sam Irwin, C4Y Clerk
6
EXHIBIT "All
SATE SHEET
Project: Mater distribution syst m maintenance and repair services in the City of
Re�lands* Water Service Area
See attached shcet(s
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EXHIBIT "B"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Project: Water distribution system maintenance and repair services in the City of Redlands'
Water Service Area
Every employer, except the State, shall secure the payment of compensation in one or more of the
following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly
authorized to write compensation insurance in this State.
(b) By securing from the Director of Industrial Relations, a certificate of consent to self-
insure, either as an individual employer or as one employer in a group of employers,
which may be given upon ftirnishing proof satisfactory to the Director of Industrial
Relations of ability to self-insure and to pay any compensation that may become due to
his or her employees.
I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be
insured against liability for Workers' Compensation or to undertake self-insurance in accordance with
the provisions of that Code, and I will comply with such provisions before commencing the performance
of the work of this Agreement. (Labor Code §1861).
MCC EQU IMENT RENTALS INC. Date: �211
B 4y:
0,
e oz Contractor's License No.
Rhibit A
PAYMENT BOND
Whereas,t e City Councd of We City of Redhnd&State of Qhhmnk, and
-----------(1-wreinafter designated as "Principal") have ertered into
an as as.errTnt. ( ire ": green`i'n ) whereby Rl scig ' aa}v ree to install ll tan complete certain designated p iblic
"
a,�:(ra`CayI�T*_iiis €' "Work"),which said 'utateTt;ka,t, diated .._ 20i4, and identified as
A he-16%, ru-I"ffred to and made a part hereof: and
WereaL under be ti rm s of the Agreement, PrOcipal is required bel"o-ire a°omane:Clift`the perforniance of'
t w Work, to €le ai good and sufficient Labor and NUM!i.a! bE}tint wit the City of Redlands to secure the i .hirn s to
tvhi h reference its made in Title 3 ( :n-ir en iia.: with Section, " i50) of Part 6 tas i=i iop = of the Civil Code
If
i : Skate of California.
Non therefore, said Principal and the undetwigned as dart rate surety, me hdd ift`Wy L3maF d utet_t the
by and all [:onmat ors,subcontractors, Haab firers, nnaterial ineis and other persons 4 ntplo e in the ps rfo t>.rt:c o
the ,`$ ,s :'ttw and +.t w in be aInnarid Code of s_s,ti Procedure in the sE3sia C;4.,
Dollars
) s t s <s she F,- mbar t6.°,:recra5 £.it an :inn, ..,< Cir zanoounis due ita"der the
L},35�<<aas P� 3 asi iirE.;�,<. �� isEn.ai�.ca,� 4e �"�
Ue=t~m l a meet. insurance Act 1vidi aS.s€a1eQ,.-°t tag such work to .a4t Y4 to sad sway will pay the sa ntee in an a#`i"iiouki",i,.
" at exceeding the amount hereinabove set foc nhk and aiko in c fie it 4 it brought upon this bond, will pais', in
addition ition to the face clins7u t t eret3i, costa: .,and §£:ix,ona ale expenses and fste,, including ing reasona ale a.tECtr- m ' ' Mees,
mcured by be Cly iiia succ ssifully w,iRuchatg Sigh ss-bl€ aitstin, to be a-warded andfixes by the court, and, to b
taxed as costs and to he included, in the 9 dgnient therein refitly.t`ed.
it is hereby tkgyrussy a1mai anti <y€e. d twsi ,s bond shall insure to the benefit of
any <>is c,
e �_ r�=companies z2Pes ardAl�oi3_ 4::; v. a,sLcr to s .e Claims under Title _ scosF{tom at. tewith Section 3 9550, :f Pain
€, o 4 O the CAW! Me, so t. to €we ai right ..£ action at to ths,,rit or ta.a,.r aassigns in any suit ,oug.11a upon
tr is Cif:[i x1.
Should the condition of this i otel be fEtat" pert tai"in a, then this obligation shall becorne null and v=. d,
olawhe A shall be and remain in fUll `ONCC 111d Cff t.
The srimty It.I`etC'sy stful res and agrees Mt no „`,hz:.ig , a„xwn it.s,a of time, €!l€$"t`a ion or addition ,o ..n.e
terms of the Agreement or the specifications sa,corn n y€ng t.fe sante shall in anynisx.,K if.r affect its obligationsc"v
t:.,. b t< , and 1t does hereby waive nasi,..m o t:,,J s t f 1t i , ext n.?Csii a ?ta s< , .al ra Li€?n{tI E.iddi!ion.
Sal witness whereof, this i a 6g_<,xEeria has bwn My ,,„�,s..C,.uzs_',at by the % irwii al and surety above aZc..i3^ud, n
(Contractor) (Surety)
Y,
(Signature', ..�.. �...._,_. (Wt
(Seal Se a and Notarial Kknowledgment o
Surety)
EXHIBIT"D"
PERFORMANCE BOND
Whereas, the City of Redlands ("City"), State of California, and, (hereinafter
designated as "Principal") have entered into and agreement dated ,201 ("Agreement") whereby
Principal agrees t install and complete certain public impr ven ents the "Work"), which said
Agreement is identified as and is l=ereby referred to and trade a part hereof; and
Whereas, said Principal is required under the terms s of the oreen,ent to furnish a bored for the
f aiffif al performance of the Agreement, now, there fdre, we, the Principal and
ars Surety, are held and firmly bOUnd unto the City in the penal sung of
Dollars t _ _ fay=,ta t o }f t tl� f r xred
States, for the payrnent of which sum we bind oulselves, and our heirs, successors, executors and
adrrainistraators, Drolly and sevearaally, firmly by these presents,
The condition -,,if this obli,mfion is such that if the above bounded Princi , leis or its heirs,
e ecu rs, administrators, successors or <assi-res, shall in all things stand to and abide by, avid well and
truly keep and perform the covenants, conditions and provisions in the Agreement and any alteration
dhereof made as therein provided, on !-its or its part, to be kept and erfort-eel at the time and in the
wanner therein specified, and in all respects aaccoreli g to their true, intent and meaning, and shall
faithfully ftalfill the one-year guarantee of all materials and workmanship, and shall defend, indaemraify
;arta save l armless the ~City and its elected officials, officers, agents and employees, as therein
stipulated= then this obligation shall becorne null and void- otherwise n shall be and remain in full force
and effect,
s a< past f the obligation s�ci red hereby and in addition to the faace amount specified flner`efor,
there shall be included casts -,read reasonable expenses and fees, illClaadirag reasonable attorneys' fres,
incuro� d by the City in successfully enforcing such obligations, all to be taxed as costs and included in
11he.rrdarnent rendered.
As a condition precedent to Ilic satisfactory completion of the Agreement, the above obligation
shall hold orad for as period of one (i) year or longer if required by the Agreement after the acceptance
f- the `vork bV the City, durins, which, thrie if he Principal shalt f£if to make frail, complete:, and
s atisfaactr 17V repair and replacements and totally protcct theity f-rorn lost; or damage evade; evident
?, urin this period frorp the date cif cornplet.ion Cif the Work, andres ltin- from or caused by defective
rnuiterlals or faulty workmanship, the above obligation in penal sun, thereof shall remain in Rall force
and =effect, The obligations of Surety hereunder shall continue so long as any oblilgation of the Principal
remains.
Whenever the Principal shall be, and is declared y t e itY e, � un L €e
a € to l? (it default Y'r
r ti=rerrt, the its ha�ar.k� performed the Gtv oblioations obligations ;aeretinder; the Surety shall pron—€ t =
remedy the default, or shall promptly,Lit the� City's s otire:
i, Complete the Atlreerneni in accordance with its terns .a art conditions;o
Obtain a bid or bids € r corn tetiilta the , r`<ennent in aaccofC,ance -with its terms an
conditions, and upon determination by Surety of` the lowest responsive and responsible
bidder, arrange for a contract betw en such bidden and the pity, and make available as
work prooresses sufficient funds to Pay the cost of cc inpletion of the Work less the
balance of the A2reernent price, but not exceedin , inclUding othercosts and damages for
which Surety may be fiaab le hereunder, the ainount set forth above. The term "balance nc}e of
the Agreement price," as used in this para ra¥i , shaft mean n the total amount payable to
the Principal by the City under the Agre inert and any modifications thereto, fess the
amount previously properly paid by the City to the Principal.
Surety expressly agrees that the City may reject any contractor or subcontractor which mab
ropos d b 1 Surety in fulfillment ofits obii,�ati i s is the �°ertt f def atiit y the Principal.
tirety shall not utilize dric P;`incip,11 in cs'nipleting the Agreement nor shall Surety accept as bid
from the Principal for coo ledon of the Work if the City, when dec aurin the r'-ICi ! i �f�EU1,ft;
notifies Surety of the City's of tion to the Principals further participation in tfie completion of` life
Work,
No ri t of action shelf aCCr€e o the build to r for €ile LIS Of a<I person r corpC}raition other
than the City na reed herein or the sUCUss rs or assigns of the City. Any snit tinder this bond must be
M lstilUted within the ai iica ale sta ut of limit:tions gn¢crio .
The ;aid Surety, for value received, hereby stipulates and acyleE that n ch:.irige. extension of
tittle, alteration or addition to the ta'i'mi`s of` the Agreernent or to the work to be performed the.ieundil r or
the Specifications accom aanyiv- the same shall in any way affect its obli aliens on this bond, ani(f it
does herebv waive notice of any such ct't;;noe, extension of time, alteration or addition to the terms of the
Agreement or to the work r to the specifications,
No final settlement h t =era the t_ nv and the Principal shall abridge the right of any berrefficiary
her—eund r whose claim may be unsatisfied,
The Principal l and Surety agree that if the City is reClUrred to engaa#e the services of any cath=sil3CV
in connection with the enforce inen( 4Ffm this bond, each shall fray the City's reasonable attorneys' fess
in U[Ted, with or without suit, in addition to the above sura,
In. witness whereof, this inste'uni €it has been dilly €x a uted b- t'e I Ins` :pail and ''Liretv above