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HomeMy WebLinkAboutR36-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Maggie Pacheco Executive Director SUBJECT: Award of Demolition Contract to AON, Inc., for Agency Properties (North Arden Guthrie - IVDA Redevelopment Project Area) DATE: November I, 2007 Svnopsis of Previous Commission/CounciVCommittee Action(s): See Background. Recommended Motion(s): (Communitv Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute a Demolition Contract by and between the Agency and AON, Inc., for the demolition of Agency Properties in the North Arden Guthrie Area of San Bernardino (IVDA Redevelopment Project Area) Contact Person(s): Maggie Pacheco IVDA Redevelopment Project Area Phone: (909) 663-1044 7 Project Area(s): Ward(s): Supporting Data Attached: o Staff Report 0 Resolution( s) 0 Agreement( s )/Contract( s) 0 Map( s) 0 Letter( s) FUNDING REQUIREMENTS: Amount: $ 472,355 Source: Low and Moderate-Income Housing Fund Budget Authority: 2007-2008 EDA Budget ,_'Jh ~ Maggie Pacheco, Executive Director . . trative Services Director Commission/Council Notes: P:\Agendas\Comm Dev Commission\COC 2007\11-05-07 AON, Inc. - Arden Guthrie Delmlition Final SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/0512007 Agenda Item Number: ~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT AWARD OF DEMOLITION CONTRACT TO AON, INC. FOR AGENCY PROPERTIES (NORTH ARDEN GUTHRIE - IVDA REDEVELOPMENT PROJECT AREA) BACKGROUND: Arden Guthrie has long been a social problem for the City of San Bernardino ("City"). Built in the 60's, the project was hailed as a leader in new urban development but unfortunately, over the decades, the development has deteriorated into slum conditions with absentee landlords, poor maintenance and high crime. Several attempts have been made by the City and the Agency to rectifY the problem from rehabilitation programs to acquisition and demolition projects. In January 2005, the Department of Housing and Urban Development ("HUD") advised the City that HUD had approved a $7.5 million Section 108 Loan for the Arden Guthrie Project and on March 29, 2005, former Mayor Valles executed the funding/approval agreement by and between the City and HUD. On May 16, 2006, the City received the final HUD loan documents and on July 24,2006, the Mayor and Common Council of the City of San Bernardino ("Council") approved the $7.5 million HUD Contract. On September 15, 2006, the funds were deposited into the Agency's bank account pursuant to the Loan Agreement between the City and the Agency. This $7.5 million has been used by the Agency primarily for property acquisition and related costs. On November 20, 2006, the Community Development Commission of the City of San Bernardino ("Commission") approved a Professional Services Agreement with California Property Specialists, Inc., for the preparation of a relocation plan and to assist with the acquisition of the remaining privately owned 4- plexes and relocation of the tenants after the 4-plexes are acquired by the Agency (See Attached Map). On March 5, 2007, the Commission approved a further loan for the Arden Guthrie Project from the Low- and Moderate-Income Housing Fund in the amount of $7.5 million to complete the property acquisition, relocation of tenants and demolition of the properties to be acquired by the Agency. CURRENT ISSUE: Since June 2006, of the 23 remaining 4-plex structures, the Agency has acquired ownership of 17 4-plexes ("Agency Properties") and 6 privately owned 4-plex structures are presently under negotiation ("Properties"). The majority of the 17 Agency Properties are completely vacated and ready for demolition. Accordingly, on September 21, 2007, the Agency mailed out a copy of the Notice of Inviting Bids ("Notice") to 7 demolition contractors to ensure that the contractors, which have previously been used by the City and the Agency, were in receipt of the Notice as quickly as possible for the immediate demolition of all the Agency Properties, as well as the Private Properties for when they are acquired by the Agency in the near future. On August 30, 2007, and again on September 10,2007, a notice was published in The Sun Newspaper. The notice stated that this was an asbestos/Iead based paint abatement and demolition/clearance project. Additionally, the notice stated that there would be a mandatory job walk and the date and place was --------------- - - - P:\Agendas\Comm DcvCommission\CDC 2007\11-05-07 AON, Inc. - Arden Guthrie Dennlition Final SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: ~ Economic Development Agency Staff Report Arden Guthrie - IVDA Page 2 provided. On October 18, 2007, Agency Staff conducted a mandatory job walk for the Properties and the contractors in attendance were Total Environmental; Warren Duncan Contracting; Dakeno, Inc.; Woody's Demolition; C.R. Gann Demolition; AON, Inc. and Brickley Environmental. On October 31,2007, at 4:30 p.m., the bid proposals in response to the Notice were due and the results are listed below: The gross amount reflects the entire price to demolish all 23 Properties ("Gross"), the net amount reflects the amount to demolish only the Agency Properties at this time ("Net"). Bid Amount for the Properties Gross $472,355.00 $548,981.00 $551,193.00 Net $337,055.00 $384,981.00 $393,993.00 Contractor AON, Inc Warren Duncan Contracting C.R. Gann Demolition AON, Inc. ("AON"), is the recommended contractor for the asbestos/1ead based paint abatement and demolition/site clearance ("Scope of Work") contract because they were the lowest responsible bidder, has many years of experience in this type of work and has completed a number of demolition projects for cities, including the City of San Bernardino Code Enforcement. The commencement of the Scope of Work for the initial 17 Agency Properties will be 10 days following a Notice to Proceed with an estimated completion date of within 120 days. ENVIRONMENTAL IMPACT: The project was reviewed under the California Environmental Quality Act ("CEQA") and the project is exempt from CEQA under Section 15268, Ministerial Projects. FISCAL IMPACT: The maximum fiscal impact is approximately $472,355.00 for the total Gross bid. However, the initial Net bid of$337,055.00 will be awarded to AON following approval by the Commission. As the other 6 private Properties are acquired, the Agency Executive Director will issue a change order to AON in the amount of the AON bid for that particular property(ies) not to exceed the maximum. The amount will be paid from the Low/Mod Tax Allocation Bond Issue Proceeds. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. //.- " / / Maggie Pacheco,; Executive Director P:\AgendlIlI\Comm Dev Commission\CDC 2007\1 I_Os.o7 AON, Inc. - Arden Guthrie Demolition Final SR.doe - COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: ~ anuaA\f UapJ\f . . . I!l"'! . . . . ~ N ~ N:::l~ N '" .. .... N '" --' .... ~ N '" - - - '" '" '" '" ~~~M N ~~ N k~ @ ~ :~ (~1: ~T 1\0~ :~ iW i@ :\3) ~ .... '" - ... ~ ~ ... - '" ~ .... ~ .... 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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A DEMOLITION CONTRACT BY AND BETWEEN THE AGENCY AND AON, INC., FOR THE DEMOLITION OF AGENCY PROPERTIES IN THE NORTH ARDEN GUTHRIE AREA OF SAN BERNARDINO (IVDA REDEVELOPMENT PROJECT AREA) WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 9 community redevelopment agency duly created, established and authorized to transact business and 10 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 11 "CRL"), codified under Division 24, Part I of the California Health and Safety Code commencing at 12 Section 33000 and is authorized to acquire and demolish blighted properties for redevelopment 13 purposes located within approved redevelopment project areas in the City of San Bernardino (the 14 "City") in accordance with the CRL; and 15 WHEREAS, the Inland Valley Development Agency ("IVDA") was established pursuant to 16 a joint exercise of powers agreement in January 1990, as amended, for the purpose of conversion, 17 redevelopment and civilian reuse of the former Norton Air Force Base located within the City; and 18 WHEREAS, the Community Development Commission of the City of San Bernardino (the 19 "Commission"), as the governing board of the Agency, has authorized the Agency to assemble, 20 acquire real property and demolish blighted infrastructures for community redevelopment purposes 22 21 in the IVDA Redevelopment Project Area ("Project Area"); and WHEREAS, the Project Area displays substantial and pervasive symptoms of blight that 23 cannot be remedied by private parties acting alone without community redevelopment assistance; 24 and 25 WHEREAS, since August 2006, the Agency has acquired seventeen (17) 4-plexes (the 26 "Agency Properties") from a total of twenty-three (23) blighted 4-plex structures in the Project 27 Area known as the North Arden Guthrie Area and successfully relocated the tenants to clean, safe 28 1 P:\Agendas\Resolutions\Resolutions\2007l1I-05-07 AON, Inc_ . Arden Guthrie Detmlition CDC Rcso_OOc 1 and sanitary housing and is in the process of negotiating the purchase of six (6) additional 4-plexes 2 in the North Arden Guthrie Area (the "Private Properties"); and 3 WHEREAS, on September 21, 2007, the Agency mailed copies of the Notice of Inviting 4 Bids ("Notice") to seven (7) qualified demolition contractors to ensure that the contractors, in 5 addition to the publication of said Notice, which demolition contractors have previously been used 6 by the City and the Agency, were in receipt of the Notice as quickly as possible; and 7 WHEREAS, in order to accomplish the demolition and clearance of the Agency Properties, 8 on August 30, 2007, and again on September 10, 2007, bids were solicited for the demolition and 9 clearance of the Agency Properties and the Private Properties in accordance with the Public 10 Contracts Code and the Agency received three (3) competitive sealed bids in response to the Notice 11 on October 31, 2007; and 12 WHEREAS, AON, Inc., (the "Contractor"), was determined to be the lowest responsible 13 bidder and the Agency desires to award a public works contract to the Contractor to perform said 14 demolition and clearance of the Agency Properties in accordance with the Contract as herein 15 defmed and thereafter with respect to the Private Properties, if, as and when such are acquired by 16 the Agency, in accordance with the terms and conditions of the Demolition Contract (the 17 "Contract") attached hereto and incorporated herein by said reference; and 18 WHEREAS, the project consisting of the demolition of the Agency Properties and the 19 Private Properties was reviewed under the California Environmental Quality Act ("CEQA"), and the 20 Agency determined that the project is exempt from CEQA under Section 15268, Ministerial 21 Projects. 22 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 23 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 24 FOLLOWS: 25 Section 1. The information set forth in the above recitals of this Resolution is true and 26 correct. The Commission hereby approves the award of the Contract between the 27 Section 2. 28 Agency and the Contractor attached hereto, incorporated herein by reference, and waives any 2 P:\Agendas\Resolutions\Rcsolutions\2007\11-0S..Q7 AON, Inc. - Arden Guthrie Demolition CDC Rcso.OOc 1 irregularities in the bid as submitted by the Contractor as permitted by the bid documents. Such 2 award of the Contract is for an award amount equal to $337,055 for the demolition of the seventeen 3 (17) 4-plexes comprising the Agency Properties, with the written commitment of the Contractor to 4 undertake the demolition of the additional six (6) 4-plexes if and when such 4-plexes are acquired 5 by the Agency and for the demolition costs per 4-plex and within the time frames as set forth in the 6 bid documents subject to change orders to the Contract as may be issued by the Executive Director 7 of the Agency as authorized herein. The Executive Director of the Agency is hereby authorized to 8 issue change orders to the Contract for the demolition of the additional six (6) 4-plexes comprising 9 the Private Properties for an amount not to exceed the total bid amount of the Contractor of 10 $472,355. 11 Section 3. The Executive Director of the Agency is hereby authorized to execute the 12 Contract on behalf of the Agency in substantially the form attached hereto, together with such 13 changes therein as may be approved by the Executive Director of the Agency and Agency Counsel. 14 The Executive Director of the Agency or such other designated representative of the Agency is 15 further authorized to do any and all things and take any and all actions as may be deemed necessary 16 or advisable to effectuate the purposes of the Contract, including making non-substantive 17 modifications to the Contract. 18 Section 4. The Commission finds that the demolition and clearance of the Agency 19 Properties and the Private Properties under the scope of the Contract is exempt from CEQA under 20 Section 15268, Ministerial Projects. This Resolution shall take effect from and after its date of adoption by this 21 Section 5. 22 Commission. 23 /II 24 /II 25 /II 26 /II 27 /II 28 1/1 3 P:\Agendas\Rcsolutions\Resolutions\2007\ll-OS-07 AON, Inc. - Arden Guthrie Demolition CDC Reso.cbe 1 2 3 4 5 6 7 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A DEMOLITION CONTRACT BY AND BETWEEN THE AGENCY AND AON, INC., FOR THE DEMOLITION OF AGENCY PROPERTIES IN THE NORTH ARDEN GUTHRIE AREA OF SAN BERNARDINO (IVDA REDEVELOPMENT PROJECT AREA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting 8 thereof, held on the day of 9 Commission Members: Aves 10 ESTRADA 11 BAXTER 12 BRINKER 13 DERRY 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 ,2007, by the following vote to wit: Abstain Absent Navs Secretary 19 20 The foregoing Resolution is hereby approved this day of ,2007. 21 22 23 Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino 24 Approved as to Form: 25 .u1 L 26 BY:_C~~' 27 28 4 P,\Agendas\Rcsofutions\Resolutions\2007\l 1-05-07 AON, Inc. - Arden Gutlnic: Demolition CDC Reso_OOc REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DEMOLITION CONTRACT (ASBESTOSILEAD BASED PAINT ABATEMENT AND DEMOLITION/SITE CLEARANCE PROJECT) TillS PUBLIC WORKS PROJECT CONTRACT for the demolition of not to exceed twenty-three (23) four-plex apartment buildings in the Arden Guthrie area of the City of San Bernardino, California, collectively referred to herein as the AsbestoslLead Based Paint Abatement and Demolition/Site Clearance Project (the "Contract"), is made and entered into this Sth day of November 2007, by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (referred to herein as the "Owner" or the "Agency") and AON, Inc. (the "Contractor"). IN WITNESS HEREOF, THE UNDERSIGNED PARTIES HAVE MUTUALLY COVENANTED AND AGREED TO THE FOLLOWING: 1. THE CONTRACT DOCUMENTS. The complete contract is comprised of and includes the following if and to the extent such are a part of the bid documents and addendum as issued by the Agency to obtain this Contract: 1) The Instructions to Bidders (including asbestos/lead based paint survey); 2) Bidder's Proposal; 3) Equal Employment Opportunity Certification; 4) Minority Business EnterprisesIWomen's Business Enterprises ("MBElWBE") Information; S) Good Faith Efforts Statement of MBEIWBE Participation; 6) Certification regarding no Suspension or Ineligibility for Public Works Contracts under the Public Contracts Code and the California Prevailing Wage Law (California Labor Code Section 1720, et seq. and regulations promulgated thereunder) (the "PWL"); 7) Clean Air and Water Pollution Control Certification; 8) Designation of Subcontractors; 9) Non-Collusion Affidavit; 10) Contractor's Certification Relating to Campaign Contributions to Mayor and/or Member of the Common Council; 11) This Contract, including the Supplemental Annex; 12) Technical Specifications; 13) Form of Performance Bond; 14) Form of Labor and Material Bond; IS) Certification of Insurance coverage; 16) Copies of the State of California Contractor's Licenses; 17) Copy of the City of San Bernardino ("City") Business License; 18) Copy of the Worker's Compensation Insurance; 19) Copy of the Comprehensive General Liability Insurance per the Contract; 20) Copy of the Automobile Insurance per the Contract; 21) General Conditions (including, without limitation, Part 1, Sections 1-9 of Standard Specifications for Public Works Construction, 2000 Edition (the "Greenbook") as supplemented by the "2002 Cumulative Supplement to Greenbook"; 22) Any Addenda issued under the Instructions to Bidders; 23) Any Regulations, Ordinances, Codes, and Laws incorporated within the General Specifications; 24) Any Agency approved Change Order(s) submitted during construction; and 2S) Copy of Public Contract Code Section 20104 through 20104.6. All of the above documents are intended to coordinate as one contract so that any work called for in one (1) document and not mentioned in another, or vice versa, is to be executed the same as if mentioned in all said documents. The documents comprising the complete contract are hereinafter referred to collectively as the "Contract Documents." 4842-9647-4625.1 Page 1 of 16 P:\Agcndas\Agcnda Anaclnnents\AgnTts.AmImd 2007\11-05-07 AON, Inc. - Arden Guthrie Detoolition Contract.doc 2. THE WORK. The Contractor agrees to furnish all tools, apparatuses, facilities, equipment, labor and materials (except that specifically mentioned as being furnished by others) necessary to perform and complete the work in a good and worker like manner as called for, and in the manner designated in, and in strict conformity with the Contract Documents which are identified by the signatures of the parties to this Contract and are, collectively, entitled: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ASBESTOSILEAD BASED PAINT ABATEMENT AND DEMOLITION/SITE CLEARANCE PROJECT 3. CONTRACT PRICE. The Agency agrees to pay and the Contractor agrees to accept, in full payment for the work above agreed to be done, the following compensation, to-wit: Amounts as determined by applying the information contained in the Contractor's bid proposal for the asbestosllead based paint abatement and demolition/site clearance of the twenty-three four-plex apartment buildings (the "Project"). The amount of the Contract for the Project is for $337,055 for the demolition of seventeen (17) Agency owned 4-plexes at the addresses as set forth in the Agency bid documents. The Executive Director of the Agency shall have the authority to issue one (1) or more change orders to this Contract within the time period authorized by the Agency bid documents and for the price per unit as bid by the Contractor, or thereafter as the parties may otherwise agree. The total amount of this Contract, in the event the Executive Director of the Agency does in fact so issue one (1) or more such change orders shall not exceed the total bid amount of the Contractor equal to $472,355 for the demolition of the total of twenty-three (23) 4-plexes. 4. INCORPORATION BY REFERENCE OF PART 1. SECTIONS 1-9 OF THE GREENBOOK. 2000 EDITION. AS SUPPLEMENTED. The Greenbook, as supplemented by the publication entitled, "2002 Cumulative Supplement to Greenbook," is hereby incorporated by this reference into this Contract. The word "Project" means and refers to the "Project," as this term is defined in the Instructions to Bidders. To the extent that any provision of the printed text which appears in this Contract is in conflict with the printed text of the provisions of the Greenbook as incorporated into this Contract by this reference, then in such event, the printed text of this Contract shall take precedence over such printed text in the Greenbook. 5. PAYMENT. After the completion of the asbestosllead based paint abatement and demolition/clearance for each site, and after acceptance of the work for such site by the Agency, the Contractor shall make a partial payment request to the Agency for the amount of the Contract price relating to that site. Within thirty (30) calendar days of the Agency's receipt of an undisputed and properly executed partial payment request from the Contractor, the Agency shall make a partial payment in the amount of the Contractor's site payment request, less the ten percent (10%) of the amount to be retained by the Agency until completion of the Project and recordation of a Notice of Completion of all work covered by this Contract. 4842-9647-4625.1 Page 2 of 16 P:\Agendas\Agenda AItal;Iunentli\AgrrlU-Amend 2007\11-0.5-07 AON. 1111;. - Arden Guthrie Demolition ContnIl;l:.doc The Agency shall pay the Contractor interest on the amount of any portion of a payment request, excluding retention amounts, not made to the Contractor within thirty (30) calendar days of the Agency's receipt of an undisputed and properly executed payment request from the Contractor at the legal rate set forth in California Code of Civil Procedure Section 685.010. Upon receipt of a payment request from the Contractor, the Agency shall review the payment request for the purpose of detennining whether or not the payment request is a proper payment request for any site of the Contractor's bid. If the payment request is determined by the Agency not to be a proper payment request suitable for payment it shall be returned to the Contractor by the Agency within ten (10) working days of the Agency's receipt of the payment request. A payment request returned to the Contractor by the Agency under the provisions of this section shall be accompanied by a written document setting forth the reason(s) why the payment request is not proper. The number of days for the Agency to make a certain payment provided for in this Contract, without incurring interest pursuant to this section, shall be reduced by the number of days by which the Agency exceeds the ten (10) working days return period for such payment request, if determined to be improper, as set forth in this section. For the purposes of this section, a "request for payment" means all payments due to the Contractor under this Contract, exclusive of that portion of the final payment designated as retention earnings. Also, for the purposes of this section, a payment request shall be considered properly executed by the Agency if funds are available to pay the payment request and payment is not delayed due to an audit inquiry by the Agency's financial officer. The Agency will release the Contractor's retention earnings within forty-five (45) calendar days after recordation of a Notice of Completion, as defined in California Civil Code Section 3093. Recordation of a Notice of Completion for the Project by the Agency shall constitute the Agency's acceptance of the completed Project. 6. STOP NOTICE. The Contractor shall promptly pay all valid bills and charges for material, labor, equipment or otherwise in connection with or arising out of the performance of this Contract, and will hold the Agency free and harmless against all liens and/or claims of lien for material, labor or equipment filed against the Agency, and from and against all expenses and liability in connection therewith, including, but not limited to, court costs and attorney's fees resulting or arising there from. In the event any liens and/or claims of lien are filed for recording against the Agency or any property owned by the Agency, or the Agency receives notice of any unpaid bill or charge in connection with the performance of this Contract, the Contractor shall forthwith either pay and discharge the liens and/or claims of lien and cause same to be released of record or the Contractor shall furnish the Agency with proper indemnity, either by satisfactory corporate surety bond or satisfactory title policy. Said indemnity shall also be subject to approval oflien holder. 7. TIME FOR COMPLETION. All work under this Contract shall be completed no later than January 31,2008, unless otherwise extended by change order of the Executive Director of the Agency at his or her sole discretion. 8. EXTENSION OF TIME~ If the Contractor is delayed by acts of negligence of the Agency, or its employees or those under it by the Contract or otherwise, or by changes ordered in the work, or by strikes, lockouts, fire, unavoidable casualties, or any causes beyond the Contractor's control, or by delay authorized by the Agency, or by any justifiable cause which the Agency shall authorize, then the Contractor shall make out a written claim addressed to the 4842-9647-4625.1 Page 3 of 16 P:\Agcndas\Agenda Auac:hments\Ag:-Amend 2007\11-05-07 AON, Inc. . Arden Guthrie Demolition ContnId:.doc Agency setting forth the reason for the delay and the extension of the time requested and forward a copy of the claim to the Agency for approval. The Agency will evaluate the claim and if the claim is justifiable, will request the Agency's approval. No such extension will be allowed unless written claim therefore has been made within three (3) days after the delay became apparent. 9. LIOUIDATED DAMAGES FOR DELAY. The provisions of Section 6.9 of the Greenbook are hereby modified to provide for liquidated damages in the amount of Two Hundred Dollars ($200) per working day. 10. CHANGE ORDERS. No change in work, as described in the Contract Documents, shall be made except upon the approval of the Agency or as otherwise authorized herein for the undertaking of the demolition of the six (6) additional 4-plexes. The Contractor shall not be entitled to any compensation for any additional work unless such Project Change Order is written and entered into by the Contractor and the Agency. The Project Change Order shall describe the nature of the additional work in detail, the location of the work, the estimated time for completion thereof, and terms of compensation to be paid to the Contractor for its performance in accordance with this Contract, as modified by the Project Change Order. Such procedures for the issuance of Project Change Orders shall be applicable to the undertaking of the demolition of the additional six (6) 4-plexes as set forth herein and in the bid documents of the Contractor. 11. REAL PROPERTY LIENS. The Contractor shall promptly pay all valid bills and charges for material, labor or otherwise in connection with or arising out of the performance of this Contract, and will hold the Agency free and harmless against all liens and/or claims of lien for material and labor filed against the real property or any part thereof, and from and against all expense and liability in connection therewith, including, but not limited to, court costs and attorney's fees resulting or arising there from. In the event any liens and/or claims of lien are filed for record against the real property, or the Agency receives notices of any unpaid bill or charge in connection with the performance of this Contract, the Contractor shall forthwith either pay and discharge the liens and/or claims of lien and cause same to be released of record, or the Contractor shall furnish the Agency with proper indemnity, either by satisfactory corporate surety bond or satisfactory title policy. Said indemnity shall also be subject to approval of the lien holder. 12. lNDEMNIFlCATIONS AND HOLD HARMLESS. The Contractor shall defend, indemnifY, protect and hold free and harmless the Agency, its officers, employees, and agents from and against any and all actions, suits, proceedings, claims, demands, losses, costs, injuries to or death of any person or persons and expenses, including attorney's fees, for injury or damage of any type claimed which is brought by any individual or entity, whether public or private, as a result of the acts, errors or omissions of the Contractor, its officers, employees, agents, and its Subcontractors arising from or related to performance of the work required hereunder to complete the Project. 13. INSURANCE. The provisions of Section 7-3 and Section 7-4 of the Greenbook are hereby amended to read as follows for the purposes of this Contract: 4842-9647-4625.1 Page 4 of 16 P:\Agenda\Agenda Attaehmcms\AgmU-Amend 2007\11-OS-07 AON, Inc. - Ardc:n Guthrie Dem:tlition Contrm..doc The Contractor shall procure and maintain insurance policies meeting the minimum requirements set forth below. Insurance shall be provided by insurers satisfactory to the Agency. Certificates evidencing insurance coverage shall be delivered to the Agency for each policy required herein prior to commencement of any work. Ail insurance certificates shall name the Agency as an additional insured and provide for thirty (30) days prior written notice of cancellation to the Agency. a. Comprehensive General Liabilitv Insurance. The Contractor shall maintain comprehensive general liability insurance of not less than One Million Dollars ($1,000,000) combined single limit, per occurrence. The Contractor mnst provide Comprehensive General Liability Insurance Policy with appropriate endorsement for builder's course of construction and fire casualty loss. b. Automobile Insurance. The Contractor shall maintain comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence. c. Worker's Compensation. The Contractor shall maintain worker's compensation coverage in accordance with the Laws of the State of California for all workers under its employ and Subcontractors performing the work required herein. 14. LABOR PROVISIONS. a. Prevailing Wages. The Project is a "public work" as this term is defined under applicable State Law (See California Labor Code Section 1720, et seq. and California Administrative Code, Title 8, Section 16000, et seq.). (I) All laborers and mechanics employed or working upon the site of the Project will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Director of the Department of Industrial Relations (the "Director") regardless of any contractual relationship which may be alleged to exist between the Contractor and such laborers and mechanics. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work: actu31ly performed, without regard to skill, except as provided in paragraph d. of this Section 14. Laborers or mechanics performing work in more than one (1) classification may be compensated at the rate specified for each classification for the time actually worked therein, provided that the employer's payroll records accurately set forth the time spent in each classification in which work: is performed. The wage determination shall be posted at all times by the Contractor and its Subcontractors at the site of the Project in a prominent and accessible place where it can easily be seen by the workers. (2) Whenever the minimum wage rate prescribed in the Contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the Contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. 4842-9647-4625.1 Page 5 of 16 P:\Agcndas\Agenda Altachments\Agnm-Amend 2007111-05-07 AON, Inc. - ArdelI Gudtrie Demolition Contraa.doc (3) If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as part of the wages of any laborer or mechanic, the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, provided that the Director has found, upon the written request of the Contractor, that the applicable standards ofthe Prevailing Wage Law have been met. The Director may require the Contractor to set aside, in a separate account, assets for the meeting of obligations under the plan or program. b. Withholding. The Agency shall, upon its own action or upon written request of an authorized representative of the Department of Industrial Relations, withhold or cause to be withheld from the Contractor under this Contract or any other contract with the same Contractor, or any other contract subject to prevailing wage requirements, which is held by the same Contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the Project, all or part of the wages required by the Contract, the Agency may after written notice to the Contractor, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. c. Payrolls and Basic Records. (I) Payrolls and basic records relating thereto shall be maintained by the Contractor during the course of the work and preserved for a period of three (3) years thereafter for all laborers and mechanics working at the site of the Project. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid, daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Director has found under paragraph (3) of this clause that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under such plan or program, the Contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual costs incurred in providing such benefits. If the Contractor employs apprentices or trainees under approved programs, the Contractor shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (2) (i) The Contractor shall prepare weekly payrolls for each week in which any Contract work is performed. The payrolls shall set out accurately and completely all of the information required to be maintained under paragraph c.(l) above. This information may be prepared in any form desired. The Contractor is responsible for obtaining copies of the payrolls by all Subcontractors. (ii) Each payroll prepared shall be accompanied by a "Statement of Compliance," signed by the Contractor or Subcontractor or his or her agent who pays or supervises the payment of the persons employed under the Contract and shall certify the following: 4842-9647-4625.1 Page 6 of 16 P:\Agendas\Agenda Attadlments\Agmu-Amend 2007\11-05-07 AON, Inc. - Arden Guthrie Demolition Contraa.doc (A) That the payroll for the payroll period contains the information required to be maintained under paragraph c.(l) above and that such information is correct and complete; (B) That each laborer and mechanic (including each helper, apprentice and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions; (C) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the Contract. (iii) Whenever a Contractor or Subcontractor is found by the Labor Commissioner to be in violation of the Prevailing Wage Law with intent to defraud, the Contractor or Subcontractor shall be ineligible for a period of not less than one (1) year or more than three (3) years to bid or perform work on a public works contract. (3) The Contractor or Subcontractor shall make the records required under paragraph c.(l) of this section available for inspection, copying or transcription by authorized representatives of the Agency, any office of the Division of Labor Standards Enforcement or the Division of Apprenticeship Standards, and shall permit such representatives to interview employees during working hours on the job. If the Contractor or Subcontractor fails to submit the required records or to make them available, the Labor Commissioner may, after written notice to the Contractor or the Agency, take such action as may be necessary to cause the withholding of any further payment, advance, or guarantee of funds by the Agency, and determination of a penalty as set forth in Labor Code Section 1775, et seq. d. Apprentices and Trainees. (1) ApPrentices. Apprentices, as defined in Labor Code Section 3077, will be permitted to work at less than the predetermined rate for the work they perform when they are in training under apprenticeship standards \ that have been approved by the Chief of the Apprenticeship Standards and who are parties to written apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code. The allowable ratio of apprentices to journeymen on the Project site in any craft classification shall not be greater than the ratio permitted to the Contractor as to the entire work force under the rules and regulations of the California Apprenticeship Council. Any worker listed on a payroll at an apprentice wage rate, who is not employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the apprenticeship standards and agreements shall be paid not less than the applicable wage rate on the wage determination of the work actually performed. Every apprentice must be paid at not less than the rate specified in the apprenticeship agreement for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the 4842.9647-4625.1 Page 7 of 16 P:\Apldas\Agenda Attac:hrncnts\Agrnu-Amend 2007\11-05-07 AON. Jnc. - Arden Guthrie Demolition ContnK;t,doc apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator of Apprentices determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination (2) Trainees. Trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered an "on-the-job training" program established pursuant to Labor Code Section 3093. The ratio of trainees to journeymen on the Project site shall not be greater than permitted under the program pursuant to Section 3093 by the California Apprenticeship Council in cooperation with the Department of Education, the Employment Development Department, and the Board of Govemors of the California Community Colleges. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of Apprentices so determines. Any employee listed on the payroll at a trainee rate who is not registered and participating in an "on- the-job training" program established pursuant to Section 3093 shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the Project site in excess of the ratio permitted under the "on-the-job training" program as established shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Administrator of Apprentices withdraws approval of an "on-the-job training" program, the Contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (3) Equal Emplovment Opportunitv. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the prohibitory discrimination provisions of California law as set forth in the California Constitution, Article I, Section 8, Government Code Section 12900, et seq. and Labor Code Sections 1735, 1777.6 and 3093. e. Subcontracts. The Contractor and each Subcontractor shall insert in any subcontracts the clanses contained in paragraphs a. through i. of Section 12. of this Contract and such other clauses as maybe reqnired, and also a clause reqniring the Subcontractors to include these clauses in any lower tier subcontracts. The Contractor shall be responsible for the compliance by any Subcontractor or lower tier Subcontractor with all the Contract clauses and all requirements of the Prevailing Wage Law. f. Contract Termination. A breach of the Contract clauses in paragraphs a through i. of this Section 14 and a. through e. of Section IS below are grounds for termination of this Contract, and for the withholding of payment by the Agency and notification to the Division of Labor Standards Enforcement or the Division of Apprenticeship Standards, as applicable. g. Compliance With Prevailing Wage Law and Related Regulatory Reauirements. All rulings and interpretations of the Prevailing Wage Law, and the related regulations promulgated thereunder contained in 8 CCR Section 16000, et seq., are herein incorporated by reference in this Contract. 4842-9647-4625.1 Page 8 of 16 P:\ApKIas\Agenda Attachments\AgmU-Amc:nd 2007\11-05-07 AON, Inc. - Arden Guthrie Oe!n.llition Contract.doc h. Disputes Concerning Labor Standards. Disputes arising out of the labor standards provisions of this Contract shall not be subject to the general disputes provision of this Contract. Such disputes shall be resolved in accordance with the procedures of the Department of Industrial Relations as set forth in 8 CCR section 16000, et seq. Disputes within the meaning of this clause include disputes between the Contractor (or any of its Subcontractors) and the Agency, the Department of Industrial Relations, or the employees or their representatives. 1. Certification of Eligibilitv. (1) By entering into this Contract, the Contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the Contractor's firm is a person or firm ineligible to be awarded a public works contract by virtue of Labor Code Section 1775,et seq. (2) No part of this contract shall be subcontracted to any person or firm ineligible for award of a public works contract by virtue of Labor Code Section 1775, et seq. 15. CONTRACT WORK HOURS AND SAFETY STANDARDS REOUIREMENTS. As used in the following provision, the term "laborers" and "mechanics" include watchers and guards. a. Overtime Reauirements. Neither the Contractor nor any Subcontractor contracting for any part of the Project which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workday in which he or she is employed on such work to work in excess of eight (8) hours per day, or in any workweek in which he or she is employed on such work to work in excess of forty (40) hours in such workweek, unless such laborer or mechanic receives compensation at a rate not less than one and one-half (1 Yz) times the basic rate of pay for all hours worked in excess of eight (8) hours in such workday or forty (40) hours in such workweek. b. Violation; Liabilitv for Unpaid Wages: LiQuidated Damages. In the event of any violation of the clause set forth in paragraph a. above, the Contractor and any Subcontractor responsible therefore, shall be liable for the unpaid wages. In addition, the Contractor and Subcontractor shall be liable to the Agency for liquidated damages. Such liquidated damages shall be computed with respect to.each individual laborer or mechanic, including watchers and guards, employed in violation of the clause set forth in paragraph a above, in the sum of Ten Dollars ($10) for each calendar day on which such individual was required or permitted to work in excess of the standard workday of eight (8) hours or workweek of forty (40) hours without payment of the overtime wages required by the clause set forth in paragraph a. above. c. Withholding for Unpaid Wages and LiQuidated Damages. The Agency shall, upon its own action or upon written request of an authorized representative of the Department of Industrial Relations, withhold or cause to be withheld, from any mouies payable on account of work performed by the Contractor or Subcontractor under any such contract or any other contract with the same Contractor, or any other contract subject to the Califoruia work hours and safety standards requirements which is held by the same Contractor, such sums as may be determined to be necessary to satisfy any liabilities of such Contractor or Subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph b. above. 4842-9647-4625.1 Page 9 of 16 P:\Agendas\Agenda Attachments\Agnrts-Amend 2007\11-0:5-07 AON.Inc. ~ Arden Guthrie Demolition Contnact.OOc d. Working conditions. Neither the Contractor nor any Subcontractor may require any laborer or mechanic employed in the performance of any contract to work in surroundings or under working conditions that are unsanitary, hazardous or dangerous to his or her health or safety as determined under construction safety and health standards issued by the Department of Indnstrial Relations. e. Subcontracts. The Contractor and any Subcontractor shall insert in any subcontracts the clauses set forth in paragraphs a. through d. and also a clause requiring the Subcontractor to include these clauses in any lower tier subcontracts. The Contractor shall be responsible for compliance by any Subcontractor or lower tier Subcontractor with the clauses set forth in paragraphs a. through d. 16. NONDISCRIMINATION. The Contractor, with regard to the work performed by it during the Contract, shall not discriminate on the grounds of race, color, or national origin in the selection and retention of Subcontractors, including procurements of materials and leases of equipment. The Contractor shall not participate either directly or indirectly in the discrimination prohibited by the California Constitution and statutory provisions, including the Prevailing Wage Law. 17. CITY OF SAN BERNARDINO MINORITY BUSINESS ENTERPRISES (MBE) AND WOMEN'S BUSINESS ENTERPRISES (WBE) PROGRAM PROVISIONS. A policy for establishing goals for participation of the MBElWBE was adopted on November 20, 1995, by Resolution No. 95-409 of the Mayor and Common Council of the City of San Bernardino. This outreach program superseded Resolution No. 93-411 and the Standard Operation Procedures dated January 1995. Bidder's outreach efforts (good faith efforts) must reach out to MBElWBE and all other business enterprises. Prime bidder's could reasonably be expected to produce a level of participation by interested subcontractors of fifteen percent (15%) MBE and five percent (5%) WBE on this project. Bidder's shall make every reasonable effort to solicit bids from MBElWBE. A certified justification shall be provided to support the rejection of any bid from a minority business enterprise or women's business enterprise. It is the policy of the City to provide MBElWBE and all other enterprises an equal opportunity to participate in the performance of all City contracts. Bidders shall assist the City in implementing this policy by taking all reasonable steps to ensure that all available business enterprises, including the local MBElWBE, have an equal opportunity to compete for and participate in City contracts. If the City has established expected levels of participation for the MBElWBE Subcontractors, failure to meet those levels shall not be a basis for disqualification of the bidder. A determination of the adequacy of a bidder's good faith effort must be based on information provided on the Good Faith Effort Statement ofMBElWBE Participation form. The Contractor, sub-recipient or Subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this Contract. Failure by the Contractor to carry out these requirements is a material breach of this Contract, which may result in the termination of this Contract or such other remedy as recipient deems appropriate. The Contractor agrees to pay each Subcontractor under this Contract for satisfactory performance of its Contract no later than ten (10) calendar days from the receipt of each payment the Contractor receives from the 4842.9647-4625.1 Page 10 of 16 P:I.Agendas\Agenda Attachmmu\Agnrfs--Amend 200'7\II.oS.{J7 AON,1ne. - Arden Guthrie Demolition ContnICl_OOe Agency. The Contractor agrees further to return retained payments to each Subcontractor within seven (7) calendar days after the Subcontractor's work is satisfactorily completed. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of the Agency. This clause applies to both the MBEfWBE. 18. CIVIL RIGHTS. The Contractor assures that it will comply with the California Constitution, Article I, Section 8, pertinent statutes, and such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, age or handicap, be excluded from participating in any activity conducted with or benefiting from the Project. This Provision binds the Contractor from the bid solicitation period through the completion of the Contract. This provision shall be inserted in all subcontracts, sul:1leases and other agreements at all tiers. 19. SOLICITATIONS FOR SUBCONTRACTS. INCLUDING PROCUREMENTS OF MATERIALS AND EOUIPMENT. In all solicitations either by competitive bidding or negotiation made by the Contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential Subcontractor or supplier shall be notified by the Contractor of the Contractor's obligations under this Contract and the Regulations relative to nondiscrimination on the grounds of race, color or national origin. 20. INFORMATION AND REPORTS. The Contractor shall provide all information and reports required by the Regulations or directives issued pursuant thereto and shall permit access to its books, records, accounts, other sources of information and its facilities as may be determined by the Agency to be pertinent to ascertain compliance with such Regulations, orders, and instructions. Where any information required of a Contractor is in the exclusive possession of another who fails or refuses to furnish this information, the Contractor shall so certify to the Agency, as appropriate, and shall set forth what efforts it has made to obtain the information. 21. SANCTIONS FOR NONCOMPLIANCE. In the event of the Contractor's noncompliance with the nondiscrimination provisions of this Contract, the Agency shall impose such contract sanctions as determined to be appropriate, including, but not limited to: a. Withholding of payments to the Contractor under the Contract until the Contractor complies and/or; b. Cancellation, termination or suspension of the Contract, in whole or in part. 22. INSPECTION OF RECORDS. The Contractor shall maintain an acceptable cost accounting system. The Agency, the Division of Labor Standards Enforcement or the Division of Apprenticeship Standards shall have access to any books, documents, paper, and records of the Contractor which are directly pertinent to this Contract or the Project for the purposes of making an audit, examination, excerpts, and transcriptions. The Contractor shall maintain all required records for three (3) years after the Agency makes final payment and all.other pending matters are closed. 4842-9647-4625.1 Page II of 16 P:\Agmdas\Agenda Attach.ments\AgmU-Amend 2001\11..05-07 AON, Inc. . Arden Guthrie Demolition Contract_doc 23. RIGHTS IN INVENTIONS. All rights to inventions and materials generated under this Contract are subject to regulations issued by the Agency. Information regarding these rights is available from the Agency. 24. BREACH OF CONTRACT TERMS. Any violation or breach of terms of this Contract on the part of the Contractor or its Subcontractors may result in the suspension or termination of this Contract or such other action that may be necessary to enforce the rights of the Agency under this Contract. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights.and remedies otherwise imposed or available by law. This Contract shall be interpreted under the laws of the State of California. The venue for any legal proceeding to enforce or interpret any provisions of this Contract shall be in the Superior Court of the County of San Bernardino. In the event that legal proceedings may be initiated by one (1) party to enforce its rights under this Contract, then the prevailing party in such legal proceedings shall be entitled to recover from the other party, its reasonable attorneys' fees either in such legal proceedings or in a separate action to recover such reasonable attorneys' fees. In the case of the Agency, the words ''reasonable attorneys' fees" include the cost and expenses calculated on an hourly basis, of all lawyers retained by the Agency in connection with the legal representation of the Agency in any matter arising from the Contract, including, without limitation, attorneys in the Office of the City Attorney and the Agency General Counsel. 25. TERMINATION OF CONTRACT BY AGENCY. a. The Agency may, by written notice, terminate this Contract in whole or in part at any time, either for the Agency's convenience or because of the Contractor's failure to fulfill its Contract obligations. Upon receipt of such notice, services shall be immediately discontinued (unless the notice directs otherwise) and all materials as may have been accumulated in performing this Contract, whether completed or in process, delivered to the Agency. b. If the termination is for the convenience of the Agency, an equitable adjustment in the Contract price shall be made, but no amount shall be allowed for anticipated profit on unperformed services. c. If the termination is due to failure to fulfill the Contractor's obligations, the Agency may take over the work and prosecute the same to completion by the Contract or otherwise. In such case, the Contractor shall be liable to the Agency for any additional cost occasioned to the Agency thereby. d. If, after notice of termination for failure to fulfill the Contract obligations, it is determined that the Contractor had not so failed, the termination shall be deemed to have been effected for the convenience of the Agency. In such event, adjustment in the Contract price shall be made as provided in paragraph b. of this clause. e. The rights and remedies of the Agency provided in this Section 25 are in addition to any other rights and remedies provided by law or under this Contract. 4842-9647-4625.1 Page 12 of 16 P:\Agenda!I\Agenda Atta<:hrnmts\AgrrrU-Ammd 2007\11-05-07 AON.1ne. - Arden Guthrie Demolition ContJ'aQ..dGc 26. INCORPORATION OF PROVISIONS. The Contractor shall include the provisions of this Contract in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The Contractor shall take such action with respect to any subcontract or procurement as the Agency may direct as a means of enforcing such provisions, including sanctions for noncompliance. Provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a Subcontractor or supplier as a result of such direction, the Contractor may request the Agency to enter into such litigation to protect the interests of the Agency and, in addition, the Contractor may request the Department of Industrial Relations to enter into such litigation to protect the interests of the State of California. 27. CONTRACTOR CLAIMS OF 5375.000 OR LESS. Claims by the Contractor relating to the Project for (a) a time extension; (b) money or damages arising from work done by, or on behalf of, the Contractor on the Project for which payment is not expressly provided for or to which the Contractor is not otherwise entitled, or (c) an amount that is disputed by the Agency, with a value of Three Hundred Seventy-Five Thousand Dollars ($375,000) or less, are subject to the claims procedures set forth in California Public Contract Code Sections 20104, et seq., except as otherwise provided in this Contract and the incorporated documents, conditions and specifications. A copy of California Public Contract Code Sections 20104 through 20104.6 has been provided to the Contractor and is on file with the Agency and made a part of this Contract. 28. LOBBYING AND INFLUENCING EMPLOYEES. (1) No public works funding shall be paid by, or on behalf of the Contractor or its Subcontractors, to any person for influencing or attempting to influence an officer or employee of the Agency, in connection with the Project. (2) The terms of the Conflict of Interest Code and any amendments thereto which have been incorporated by reference into the Prevailing Wage Law and constitute the Conflict of Interest Code of the Department of Industrial Relations are hereby made a part of this Contract. 29. ASSIGNMENT OF CERTAIN RIGHTS TO THE AGENCY. In entering into this Contract or a subcontract to supply goods, services, or materials pursuant to this Contract, the Contractor and/or Subcontractor offers and agrees to assign to the Agency, all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commenciI}.g with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to this Contract or the subcontract. This assignment shall be made and become effective at the time the Agency tenders final payment to the Contractor, without further acknowledgment by the parties. 30. ENERGY CONSERVATION REQUIREMENTS. The Contractor agrees to comply with mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Public Law 94-163). 31. PROTECTION. The Contractor shall, at all times, provide protection against weather, rain, wind, storm and heat so as to maintain all work, materials, apparatuses and fixtures free from 4842.9647-4625.1 Page 13 of 16 P:~\Agcnda Attachmmts\Agnnls-Ammd 2007\11-05-07 AON,Ine. - Arden Guthrie Demolition ContnICI.doc injury and damage. At the end of a day's work, all new work and the premises likely to be damaged by failure to provide protection as required above shall be protected. In the event that weather, rain, wind, storm and heat damage or injure the work, materials, apparatuses and fixtures due to Contractor's failure to provide protection as required, such work, materials, apparatuses and fixtures shall be replaced or repaired at the Contractor's expense. 32. CONTRACTOR'S BEST SKILL. The Contractor shall supervise and direct the work using its best efforts, skill and attention to ensure the workership and materials are of good quality and that the work is completed in accordance with the Contract. The Contractor shall be solely responsible for all construction means, methods, teclmiques, sequences and procedures; safety on the work site; and coordination of all portions of the Project to be performed by the Contractor's Laborers, Employees, Vendors and Subcontractors, if any. 33. LEAD-BASED PAINT. The Contractor agrees to subrnit to the Agency an Abatement Plan pursuant to the State of California Department of Health Services Regulations, and pursuant to the South Coast Air Quality Management District, prior to the commencement of work on the Project, if applicable. The Agency assumes no liability for damages for personal injury, illness, disability, or death to the Contractors, or employees, agents, or invitees of the Contractor, or to any other person, including members of the general public, arising from or incident to any activity causing or leading to contact of any kind whatsoever with lead-based paint on the demolition sites, whether the Agency has properly warned, or failed to properly warn, any persons injured. The Contractor agrees to cause all removal, transportation and disposal of the lead-based paint removed pursuant to this Contract and the Contract Documents without any cost or liability to the Agency whatsoever. The Contractor shall execute all required documents and pay such fees, taxes and other charges and assessments as may be charged, levied or assessed as to the removal, transportation and disposal of the lead-based paint pursuant to this Contract. The Contractor represents and warrants that all such additional fees, taxes and other charges and assessments are included within the Contract price set forth in Section 3 hereof. 34. ASBESTOS CONTAINING MATERIALS. The Contractor shall subrnit to the Agency an Abatement Plan pursuant to the State of California Department of Health.. Services Regulations, and pursuant to the South Coast Air Quality Management District, prior to the commencement of work on the Project, if applicable. The Agency assumes no liability for damages for personal injury, illness, disability, or death to the Contractors, or employees, agents, or invitees of the Contractor, or to any other person, including members of the general public, arising from or incident to any other activity causing or leading to contact of any kind whatsoever with Asbestos on the demolition sites, whether the Agency has properly warned, or failed to properly warn, any persons injured. The Contractor agrees to cause all removal, transportation and disposal of the asbestos so removed pursuant to this Contract and the Contract Documents without any cost or liability to the Agency whatsoever. The Contractor shall execute all required documents and pay such fees, 4842-9647-4625.\ Page 14 of 16 P:\Agendas\Agenda Attaclnnents\Agrnu-~ 2007\11-0.5-07 AON, Inc. - Arden Q\nhrie Demolition Coottacl.doI: taxes and other charges and assessments as may be charged, levied or assessed as to the removal, transportation and disposal of the asbestos pursuant to this Contract. The Contractor represents and warrants that all such additional fees, taxes and other charges and assessments are included within the Contract price set forth in Section 3 hereof. 35. HAZARDOUS WASTE NOTIFICATION. The Contractor shall promptly, and before the following conditions are disturbed, notify the Agency, in writing, of any of the following: (I) Material that the Contractor believes may be hazardous waste, as defined in Section 25117 of the California Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law. (2) Subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to bidders prior to the deadline for subrnitting bids. (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. After promptly investigating the conditions of such material, if the Agency finds that the conditions do materially differ from that indicated in the information about the site in the bid packet made available to bidders prior to the deadline for accepting bids, or if the Agency finds that the conditions do involve hazardous waste, the Agency shall cause a decrease or increase in the Contractor's costs of the Project, or time required for performance of any part of the work for the Project, and shall issue a written Project Change Order under the procedures described in Section 10. of this Contract. In the event that a dispute arises between the Contractor and the Agency regarding whether the conditions materially differ, or whether the conditions involve hazardous waste, or whether such conditions cause a decrease or increase in the Contractor's cost of, or time required for, performance of any part of the work for the Project, the Contractor shall not be excused from any scheduled completion date provided for by the Contract, but shall proceed with all work to be performed under the Contract, retaining any and all rights provided by this Contract or law which pertain to the resolution of disputes under this Contract. 36. BUSINESS REGISTRATION CERTIFICATION. The Contractor warrants that it possesses, or shall obtain immediately after the execution and delivery of this Contract, and maintain during the period of time that this Contract is in effect, a business registration certification pursuant to Title 5 of the City Municipal Code, together with any and all other licenses, contractor license, permits, qualification, insurance and approvals of whatever nature that are legally required to be maintained by the Contractor to conduct its business activities within the City. 37. STATE OF CALIFORNIA PREVAILING WAGE DETERMINATIONS. The appropriate prevailing wage determinations may be obtained from the California Department of Industrial Relations Internet Web Site at www.dir.ca.gov/dirdatabases. [II 1/1 4842-9647-4625.1 Page 15 of 16 P:\Agmdas\Agenda Attaduncnts\Agnm-Amend 2007\II-Os.tl7 AON. Inc. - Arden Guthrie Dem:ilition Contrad.doc IN WITNESS WHEREOF, two (2) identical counterparts of this Contract, each of which shall for all purposes be deemed an original thereof, have been duly executed by the parties hereinabove named, on the day and year first herein written. AGENCY: Redevelopment Agency of the City of San Bernardino a public body, corporate and politic By: Maggie Pacheco, Executive Director Approved as to Form and Legal Content: v~~ Agency Couns By: CONTRACTOR: AON, Inc. By: Type or Print Contractor'slBidder's Business Address (City, State and Zip Code) Contractor's License Contractor License Classification Contractor's License Expiration Date Bond Number 4842-9647-4625.\ Page 16 of 16 P:\Aaendas\Agcnda Attacbments\Agnnts-Amend 2007\11-05-07 AON, Inc. - Arden Guthrie Demolition Contract_doc