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ID2968-Approval-of-Contract-for-Channing-Lincoln-Storm-Drain-II-7-23-12
City of Palo Alto (ID # 2968) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 5 (ID # 2968) Summary Title: Approval of Contract for Channing/Lincoln Storm Drain -Phase II Title: Approval of a Contract with Valentine Corporation In The Amount of $1,947,368.50 for Channing Avenue/Lincoln Avenue Storm Drain Improvements -Phase II, Capital Improvement Program Project SD-11101 From:City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute the attached contract with Valentine Corporation (Attachment A) in the amount of $1,947,368.50 for the Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II, Capital Improvement Program Project SD-11101; and 2.Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Valentine Corporation for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $194,737. Background In 2005, the property owners of Palo Alto voted to increase their monthly storm drainage fee to fund a set of seven high-priority storm drain-related capital improvement projects, including improvements to the storm drain trunk pipelines along Channing and Lincoln Avenues. The existing storm drains along Channing and Lincoln Avenues are inadequate to convey the storm runoff from the surrounding neighborhoods. These pipelines convey storm runoff to the San Francisquito Creek Storm Water Pump Station, which was constructed in 2008 to July 23, 2012 Page 2 of 5 (ID # 2968) serve a 1250-acre watershed area in northeastern Palo Alto. Drainage system performance along Channing and Lincoln Avenues and throughout portions of the Duveneck-St Francis, Crescent Park, and Community Center neighborhoods will be greatly enhanced following completion of a series of storm drain upgrade projects. The work to be implemented under this contract comprises the second phase of this multi-phase project, which will provide drainage improvements 1) along Channing Avenue between Heather Lane and Newell Road, and 2) along Lincoln Avenue between Channing Avenue and Middlefield Road. Discussion Project Description The work to be performed under this contract is 1) the installation of a 48-inch diameter storm drain pipeline along the north side of Channing Avenue between Heather Lane and Newell Road, and 2) the installation of a 42-inch diameter storm drain pipeline along the east side of Lincoln Avenue between Channing Avenue and Middlefield Road. The project limits are depicted on the attached Location Map (Attachment B). The construction-related impacts of this project on neighborhood residents will be slightly less than the impacts of the first phase of the project because the streets are wider, the pipelines to be installed are smaller and easier to place, and the project will not include the extensive curb and gutter repairs undertaken in the first phase. Nevertheless, staff will keep the local residents and officials at Duveneck Elementary School up-to-date on the project status and strive to minimize the impacts of the project throughout the duration of construction. Bid Process On June 19, 2012, a notice inviting formal bids for the Channing Avenue Storm Drain Improvement Project –Phase II was posted at City Hall and sent to 12 builder’s exchanges and 21 contractors. The bidding period was twenty-one days. Bids were received from five qualified contractors on July 10, 2012, as listed on the attached Bid Summary (Attachment C). Summary of Bid Process July 23, 2012 Page 3 of 5 (ID # 2968) Bid Name/Number Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II, Capital Improvement Program Project SD-11101 /IFB #146670 Proposed Length of Project 150 calendar days Number of Bids Mailed to Contractors 21 Number of Bids Mailed to Builder’s Exchanges 12 Total Days to Respond to Bid 21 Pre-Bid Meeting?No Number of Company Attendees at Pre-Bid Meeting Not applicable Number of Bids Received:5 Bid Price Range $1,947,368.50 to $2,332,625 Staff has reviewed all bids submitted and recommends that the bid of $1,947,368.50 submitted by Valentine Corporation be accepted and that Valentine Corporation be declared the lowest responsible bidder. The low bid is five percent below the engineer's estimate of $2,049,188. The change order amount of $194,737 (which equals 10 percent of the total contract) is requested for related, additional but unforeseen work which may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also contacted the listed references for Valentine Corporation and found that they have performed satisfactorily on past construction projects for other clients. Project Coordination The Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II has been coordinated with other capital projects during the monthly Utilities/Public Works Department street work coordination meetings and by use of the Geographic Information System-based project coordination program. This project does not conflict with any upcoming Public Works or Utilities Department projects. Some of the existing sanitary sewer mains along Lincoln Avenue are in conflict with the proposed storm drain pipeline. Since these sewer mains were planned for rehabilitation in the near future by the Wastewater Utility, they will be replaced and relocated as part of this project. The cost of the sanitary sewer July 23, 2012 Page 4 of 5 (ID # 2968) replacement work will be funded by the Wastewater Collection Fund. The work has also been coordinated with other non-city utility agencies, whose underground facilities will need to be relocated as a result of the proposed pipeline installation. Due to the proximity of the work to Duveneck Elementary School, the construction was originally planned to take place during the school’s summer recess period. The project schedule was delayed due to complications during the design phase. As a result, the work will not start until school is back in session. In order to minimize the project’s impacts to children and parents traveling to and from school, the work along the school frontage and in the Channing Avenue/Alester Avenue intersection will be performed on weekends. Staff has also coordinated with the school principal to identify measures that will be implemented to ensure student safety during construction,as was done in Phase I of this project. Resource Impact Funding for the Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II is available in Capital Improvement Program Project SD-11101. Funding for the replacement of sanitary sewer mains along Lincoln Avenue will be funded by the Wastewater Collection Fund Capital Improvement Program Project WC-11000. Policy Implications The recommendation does not represent any changes to existing City policies. Environmental Review This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as repair, maintenance and/or minor alteration of existing facilities and no further environmental review is necessary. Courtesy Copies Storm Drain Oversight Committee Chris Grierson, Duveneck Elementary School Principal July 23, 2012 Page 5 of 5 (ID # 2968) Karen White, Duveneck-St Francis Neighborhood Association Rick Ferguson, Community Center Neighbors’ Association Norm Beamer, Crescent Park Neighborhood Association Attachments: ·A-Contract C13146670 with Valentine Corporation (PDF) ·B -Location Map (PDF) ·C -Bid Summary (PDF) Prepared By:Joe Teresi, Senior Engineer Department Head:J. Michael Sartor, Director City Manager Approval: ____________________________________ James Keene, City Manager Invitation for Bid (IFB) Package 1 Rev. May 1, 2012 PART 3 –CONSTRUCTION CONTRACT C13146670 CONSTRUCTION CONTRACT Contract No. C13146670 City of Palo Alto and Valentine Corporation PROJECT Storm Drain Improvement Project ‐ Phase II Channing Avenue: Newell Road to Heather Lane Lincoln Avenue: Channing Avenue to Middlefield Road Invitation for Bid (IFB) Package 2 Rev. May 1, 2012 PART 3 –CONSTRUCTION CONTRACT C13146670 CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. ....................5 1.1 Recitals ................................................................................................................ 5 1.2 Definitions ........................................................................................................... 5 SECTION 2. THE PROJECT………………………………………………………………………………..............................5 SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. .........................5 3.1 List of Documents …………………………………………………………………………………………. .....5 3.2 Order of Precedence ……………………………………………………………………………................6 SECTION 4. THE WORK …………………………………………………………………………………..............................6 SECTION 5. PROJECT TEAM ………………………………………………………………………….. .............................7 SECTION 6. TIME OF COMPLETION …………………………………………………………………............................7 6.1 Time Is of Essence ........................................................................................ ……… 7 6.2 Commencement of Work ..................................................................................... 7 6.3 Contract Time....................................................................................................... 7 6.4 Liquidated Damages............................................................................................. 7 6.4.1 Entitlement……………………………………………………………………………………………. 7 6.4.2 Daily Amount…………………………………………………………………………………………. 8 6.4.3 Exclusive Remedy………………………………………………………………………………….. 8 6.4.4 Other Remedies…………………………………………………………………………………... 8 6.5 Adjustments to Contract Time........................................................................... … 8 SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………... 8 7.1 Contract Sum ………………………………………………………………………………………………………Error! Bookmark not defined. 7.2 Full Compensation …………………………………………………………………………………………….. 9 7.3 Compensation for Extra or Deleted Work …………………………………………………………….9 7.3.1 Self Performed Work…………………………………………………………………………………9 7.3.2 Subcontractors………………………………………………………………………………………….9 SECTION 8. STANDARD OF CARE ...................................................................................................9 SECTION 9. INDEMNIFICATION......................................................................................................10 9.1 Hold Harmless ……………………………………………………………………………………………………..10 9.2 Survival ……………………………………………………………………………………………………………….10 SECTION 10. NONDISCRIMINATION ..............................................................................................10 Invitation for Bid (IFB) Package 3 Rev. May 1, 2012 PART 3 –CONSTRUCTION CONTRACT C13146670 SECTION 11. INSURANCE AND BONDS ..........................................................................................10 SECTION 12. PROHIBITION AGAINST TRANSFERS ..........................................................................11 SECTION 13. NOTICES....................................................................................................................11 13.1 Method of Notice ………………………………………………………………………………………………..11 13.2 Notice Recipients ................................................................................................. 11 13.3 Change of Address ............................................................................................... 12 14.1 Resolution of Contract Disputes........................................................................... 12 14.2 Resolution of Other Disputes ............................................................................... 12 14.2.1 Non‐Contract Disputes …………………………………………………………………………………….12 14.2.2 Litigation, City Election …………………………………………………………...........................13 14.3 Submission of Contract Dispute …………………………………………………………………………..13 14.3.1 By Contractor …………………………………………………………………………………………. 13 14.3.2 By City ……………………………………………………………………………………………………. 13 14.4 Contract Dispute Resolution Process...............................................................…… 13 14.4.1 Direct Negotiation…………………………………………………………………………………….13 14.4.2 Deferral of Contract Disputes ………………………………………………………………… 14 14.4.3 Mediation …………………………………………………………………………..14 14.4.4 Binding Arbitration ………………………………………………………………..15 14.5 Non‐Waiver …………………………………………………………………………………………………………16 SECTION 15. DEFAULT...................................................................................................................16 15.1 Notice of Default.................................................................................................. 16 15.2 Opportunity to Cure Default ................................................................................ 16 SECTION 16. CITY'S RIGHTS AND REMEDIES ..................................................................................16 16.1 Remedies Upon Default ....................................................................................... 16 16.1.1 Delete Certain Services …………………………………………………………...........................16 16.1.2 Perform and Withhold ……………………………………………………………………………. 16 16.1.3 Suspend The Construction Contract ………………………………………………………….16 16.1.4 Terminate the Construction Contract for Default ……………………………………..17 16.1.5 Invoke the Performance Bond ………………………………………………………………….17 16.1.6 Additional Provisions ……………………………………………………………………………….17 16.2 Delays by Sureties................................................................................................ 17 16.3 Damages to City ................................................................................................... 17 16.3.1 For Contractor's Default …………………………………………………………………………..17 16.3.2 Compensation for Losses ………………………………………………………………………….17 16.5 Suspension by City for Convenience..................................................................... 18 16.6 Termination Without Cause ................................................................................. 18 16.6.1 Compensation ………………………………………………………………………………………….18 16.6.2 Subcontractors …………………………………………………………………………………………18 Invitation for Bid (IFB) Package 4 Rev. May 1, 2012 PART 3 –CONSTRUCTION CONTRACT C13146670 16.7 Contractor’s Duties Upon Termination................................................................. 19 SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES ...................................................................19 17.1 Contractor’s Remedies ......................................................................................... 19 17.1.1 For Work Stoppage …………………………………………………………………………………..19 17.1.2 For City's Non‐Payment …………………………………………………………………………… 19 17.2 Damages to Contractor ........................................................................................ 19 SECTION 18. ACCOUNTING RECORDS............................................................................................19 18.1 Financial Management and City Access..........................................................……. 19 18.2 Compliance with City Requests ........................................................................ …. 20 SECTION 19. INDEPENDENT PARTIES.............................................................................................20 SECTION 20. NUISANCE.................................................................................................................20 SECTION 21. PERMITS AND LICENSES............................................................................................20 SECTION 22. WAIVER ....................................................................................................................20 SECTION 23. GOVERNING LAW .....................................................................................................20 SECTION 24. COMPLETE AGREEMENT ...........................................................................................21 SECTION 25. SURVIVAL OF CONTRACT ..........................................................................................21 SECTION 26. PREVAILING WAGES..................................................................................................21 SECTION 27. NON APPROPRIATION ..............................................................................................21 SECTION 28. GOVERNMENTAL POWERS........................................................................................21 SECTION 29. ATTORNEY FEES ........................................................................................................21 SECTION 30. COUNTERPARTS........................................................................................................22 SECTION 31. SEVERABILITY ...........................................................................................................22 Invitation for Bid (IFB) Package 5 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on July 23, 2012 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and VALENTINE CORPORATION ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Corporation duly organized and in good standing in the State of California, Contractor’s License Number 229225. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On June 19, 2012, City issued an Invitation for Bids (IFB) to contractors for the Storm Drain Improvement Project‐Phase Ii (Channing Avenue: Newell Road To Heather Lane & Lincoln Avenue: Channing Avenue To Middlefield Road) (“Project”). In response to the IFB, Contractor submitted a bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Bid Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the construction of the Storm Drain Improvement Project‐Phase II (Channing Avenue: Newell Road To Heather Lane & Lincoln Avenue: Channing Avenue To Middlefield Road) ("Project"). SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders Invitation for Bid (IFB) Package 6 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 2) Field Change Orders 3) Contract 4) Project Plans and Drawings 5) Technical Specifications 6) Special Provisions 7) Notice Inviting Bids 8) Instructions to Bidders 9) General Conditions 10) Bidding Addenda 11) Invitation for Bids 12) Contractor's Bid/Non‐Collusion Affidavit 13) Reports listed in the Bidding Documents 14) Public Works Department’s Standard Drawings and Specifications dated 2007 and updated from time to time 15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005 and updated from time to time 16) City of Palo Alto Traffic Control Requirements 17) City of Palo Alto Truck Route Map and Regulations 18) Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐ Qualification Checklist (if applicable) 19) Performance and Payment Bonds 20) Insurance Forms 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. SECTION 4 THE WORK. The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other things necessary for Contractor to perform its obligations and complete the Project, including, without Invitation for Bid (IFB) Package 7 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable Code Requirements. SECTION 5 PROJECT TEAM. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Project requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within One Hundred Fifty calendar days (150) after the commencement date specified in City’s Notice to Proceed. 6.4 Liquidated Damages. 6.4.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorily complete the Work within the Contract Time, City will suffer, as a result of Contractor’s failure, substantial damages which are both extremely difficult and impracticable to ascertain. Such damages may include, but are not limited to: (i) Loss of public confidence in City and its contractors and consultants. (ii) Loss of public use of public facilities. (iii) Extended disruption to public. Invitation for Bid (IFB) Package 8 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 6.4.2 Daily Amount. City and Contractor have reasonably endeavored, but failed, to ascertain the actual damage that City will incur if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time. Therefore, the parties agree that in addition to all other damages to which City may be entitled other than delay damages, in the event Contractor shall fail to achieve Substantial Completion of the entire Work within the Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per day for each Day occurring after the expiration of the Contract Time until Contractor achieves Substantial Completion of the entire Work. The liquidated damages amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. 6.4.3 Exclusive Remedy. City and Contractor acknowledge and agree that this liquidated damages provision shall be City’s only remedy for delay damages caused by Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.4.4 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and agreed to by Change Order executed by City and Contractor in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Nine Hundred Forty‐Seven Thousand Three Hundred Sixty‐Eight Dollars And Fifty Cents ($1,947,368.50). [This amount includes the Base Bid and Add Alternates .] // // // Invitation for Bid (IFB) Package 9 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change Orders issued, executed and satisfactorily performed in accordance with the requirements of the Contract Documents. 7.3 Compensation for Extra or Deleted Work. The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving Extra Work or Deleted Work based on one or more of the following methods to be selected by City: 1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor, which unit prices shall be deemed to include Contractor Markup and Subcontractor/Sub‐subcontractor Markups permitted by this Section. 2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable Costs and Contractor Markup and Subcontractor Markup computed in accordance with this Section. 3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups applicable to such Extra Work computed in accordance with this Section. Contractor Markup and Subcontractor/Sub‐subcontractor Markups set forth herein are the full amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors and Sub‐subcontractors, of every Tier. When using this payment methodology, Contractor Markup and Subcontractor/Sub‐subcontractor Markups, which shall not be compounded, shall be computed as follows: 7.3.1 Markup Self‐Performed Work. 10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by Contractor with its own forces. 7.3.2 Markup for Work Performed by Subcontractors. 15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by a first Tier Subcontractor. SECTION 8 STANDARD OF CARE. Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and all Losses arising directly or indirectly from, or in any manner relating to any of, the following: (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub‐ subcontractors, of any tier; (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub‐ subcontractors of any tier, of any of the obligations under the Contract Documents; (iii) The construction activities of Contractor or its Subcontractors or Sub‐subcontractors, of any tier, either on the Site or on other properties; (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or Sub‐subcontractors of any tier, for Work performed on or off the Site for the Project; and (v) Any personal injury, property damage or economic loss to third persons associated with the performance or nonperformance by Contractor or its Subcontractors or Sub‐ subcontractors of any tier, of the Work. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Failure to do so shall be deemed a material breach of this Construction Contract. Invitation for Bid (IFB) Package 11 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 SECTION 12 PROHIBITION AGAINST TRANSFERS. City is entering into this Construction Contract based upon the stated experience and qualifications of the Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co‐tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice Recipients. All notices, demands or requests (including, without limitation, Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Joe Teresi Or City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Invitation for Bid (IFB) Package 12 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Valentine Corporation 111 Pelican Way San Rafael, Ca 94901 Attn: Jack Miller 13.3 Change of Address. In the event of any change of address, the moving party shall notify the other party of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DISPUTE RESOLUTION. 14.1 Resolution of Contract Disputes. Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section 14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such Contract Disputes. 14.2 Resolution of Other Disputes. 14.2.1 Non‐Contract Disputes. Contract Disputes shall not include any of the following: (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmental agency; (ii) Third party tort claims for personal injury, property damage or death relating to any Work performed by Contractor or its Subcontractors or Sub‐subcontractors of any tier; (iii) False claims liability under California Government Code Section 12650, et. seq.; (iv) Defects in the Work first discovered by City after Final Payment by City to Contractor; (v) Stop notices; or (vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents. Invitation for Bid (IFB) Package 13 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 14.2.2 Litigation, City Election. Matters that do not constitute Contract Disputes shall be resolved by way of an action filed in the Superior Court of the State of California, County of Santa Clara, and shall not be subject to the Contract Dispute Resolution Process. However, the City reserves the right, in its sole and absolute discretion, to treat such disputes as Contract Disputes. Upon written notice by City of its election as provided in the preceding sentence, such dispute shall be submitted by the parties and finally decided pursuant to the Contract Dispute Resolution Process in the manner as required for Contract Disputes, including, without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final determination until after Final Completion of the Work. 14.3 Submission of Contract Dispute. 14.3.1 By Contractor. Contractors may commence the Contract Dispute Resolution Process upon City's written response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the General Conditions. Contractor shall submit a written Statement of Contract Dispute (as set forth below) to City within seven (7) Days after City rejects all or a portion of Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a timely manner shall result in City’s decision by City on the Claim becoming final and binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of perjury and shall state with specificity the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the asserted effect on the Contract Sum and the Contract Time. The Statement of Contract Dispute shall include adequate supporting data to substantiate the disputed Claim. Adequate supporting data for a Contract Dispute relating to an adjustment of the Contract Time shall include both of the following: (i) All of the scheduling data required to be submitted by Contractor under the Contract Documents to obtain extensions of time and adjustments to the Contract Time and (ii) A detailed, event‐by‐event description of the impact of each event on completion of Work. Adequate data to support a Statement of Contract Dispute involving an adjustment of the Contract Sum must include both of the following: (a) A detailed cost breakdown and (b) Supporting cost data in such form and including such information and other supporting data as required under the Contract Documents for submission of Change Order Requests and Claims. 14.3.2 By City. City's right to commence the Contract Dispute Resolution Process shall arise at any time following City's actual discovery of the circumstances giving rise to the Contract Dispute. City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor. A Statement of Contract Dispute submitted by City shall state the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the damages or other relief claimed by City as a result of such events. 14.4 Contract Dispute Resolution Process. The parties shall utilize each of the following steps in the Contract Dispute Resolution Process in the sequence they appear below. Each party shall participate fully and in good faith in each step in the Contract Dispute Resolution Process, and good faith effort shall be a condition precedent to the right of each party to proceed to the next step in the process. 14.4.1 Direct Negotiations. Designated representatives of City and Contractor shall meet as soon as possible (but not later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good Invitation for Bid (IFB) Package 14 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 faith effort to negotiate a resolution to the Contract Dispute. Each party shall be represented in such negotiations by an authorized representative with full knowledge of the details of the Claims or defenses being asserted by such party in the negotiations, and with full authority to resolve such Contract Dispute then and there, subject only to City’s obligation to obtain administrative and/or City Council approval of any agreed settlement or resolution. If the Contract Dispute involves the assertion of a right or claim by a Subcontractor or Sub‐subcontractor, of any tier, against Contractor that is in turn being asserted by Contractor against City (“Pass‐Through Claim”), then the Subcontractor or Sub‐Subcontractor shall also have a representative attend the negotiations, with the same authority and knowledge as described above. Upon completion of the meeting, if the Contract Dispute is not resolved, the parties may either continue the negotiations or any party may declare negotiations ended. All discussions that occur during such negotiations and all documents prepared solely for the purpose of such negotiations shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.2 Deferral of Contract Disputes. Following the completion of the negotiations required by Paragraph 14.4.1, all unresolved Contract Disputes shall be deferred pending Final Completion of the Project, subject to City’s right, in its sole and absolute discretion, to require that the Contract Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that have been deferred until Final Completion shall be consolidated within a reasonable time after Final Completion and thereafter pursued to resolution pursuant to this Contract Dispute Resolution Process. The parties can continue informal negotiations of Contract Disputes; provided, however, that such informal negotiations shall not be alter the provisions of the Agreement deferring final determination and resolution of unresolved Contract Disputes until after Final Completion. 14.4.3 Mediation. If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 14.4.1, the parties shall submit the Contract Dispute to non‐binding mediation before a mutually acceptable third party mediator. .1 Qualifications of Mediator. The parties shall endeavor to select a mediator who is a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in mediating public works construction disputes. In addition, the mediator shall have at least twenty (20) hours of formal training in mediation skills. .2 Submission to Mediation and Selection of Mediator. The party initiating mediation of a Contract Dispute shall provide written notice to the other party of its decision to mediate. In the event the parties are unable to agree upon a mediator within fifteen (15) Days after the receipt of such written notice, then the parties shall submit the matter to the American Arbitration Association (AAA) at its San Francisco Regional Office for selection of a mediator in accordance with the AAA Construction Industry Mediation Rules. .3 Mediation Process. The location of the mediation shall be at the offices of City. The costs of mediation shall be shared equally by both parties. The mediator shall provide an independent assessment on the merits of the Contract Dispute and recommendations for resolution. All discussions that occur during the mediation and all documents prepared solely for the purpose of the mediation shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. Invitation for Bid (IFB) Package 15 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 14.4.4 Binding Arbitration. If the Contract Dispute is not resolved by mediation, then any party may submit the Contract Dispute for final and binding arbitration pursuant to the provisions of California Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be final and may be entered as a judgment by any court of competent jurisdiction. Such arbitration shall be conducted in accordance with the following: .1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in arbitration in accordance with the regulations promulgated pursuant to California Public Contract Code Section 10240.5. .2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties. The arbitrator shall be a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in arbitrating public works construction disputes. In addition, the arbitrator shall have at least twenty (20) hours of formal training in arbitration skills. In the event the parties cannot agree upon an arbitrator, the provisions of California Public Contract Code Section 10240.3 shall be followed in selecting an arbitrator possessing the qualifications required herein. .3 Hearing Days and Location. Arbitration hearings shall be held at the offices of City and shall, except for good cause shown to and determined by the arbitrator, be conducted on consecutive business days, without interruption or continuance. .4 Hearing Delays. Arbitration hearings shall not be delayed except upon good cause shown. .5 Recording Hearings. All hearings to receive evidence shall be recorded by a certified stenographic reporter, with the costs thereof borne equally by City and Contractor and allocated by the arbitrator in the final award. .6 Limitation of Depositions. The parties may conduct discovery in accordance with the provisions of section 10240.11 of the Public Contract Code; provided, however, that depositions shall be limited to both of the following: (i) Ten (10) percipient witnesses for each party and 5 expert witnesses per party. Upon a showing of good cause, the arbitrator may increase the number of permitted depositions. An individual who is both percipient and expert shall, for purposes of applying the foregoing numerical limitation only, be deemed an expert. Expert reports shall be exchanged prior to receipt of evidence, in accordance with the direction of the arbitrator, and expert reports (including initial and rebuttal reports) not so submitted shall not be admissible as evidence. .7 Authority of the Arbitrator. The arbitrator shall have the authority to hear dispositive motions and issue interim orders and interim or executory awards. Invitation for Bid (IFB) Package 16 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 .8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a jury trial with respect to any Contract Dispute that is subject to binding arbitration in accordance with the provisions of this Paragraph 14.4.4. Contractor shall include this provision in its contracts with its Subcontractors who provide any portion of the Work. 14.5 Non‐Waiver. Participation in the Contract Dispute Resolution Process shall not waive, release or compromise any defense of City, including, without limitation, any defense based on the assertion that the rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by Contractor due to Contractor’s failure to comply with the Contract Documents, including, without limitation, Contractor’s failure to comply with any time periods for providing notice of requests for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting documentation of Claims. SECTION 15 DEFAULT. 15.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract. 15.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. SECTION 16 CITY'S RIGHTS AND REMEDIES. 16.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 15, then City may pursue any remedies available under law or equity, including, without limitation, the following: 16.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 16.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 16.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as Invitation for Bid (IFB) Package 17 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 16.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 15. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 16.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 16.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 16.2 Delays by Sureties. Without limiting to any of City’s other rights or remedies, City has the right to suspend the performance of the Work by Contractor’s sureties in the event of any of the following: (i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure full compliance with the Construction Contract within the Contract Time; (ii) The sureties’ abandonment of the Work; (iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably delaying the Work; (iv) The sureties’ violation of any terms of the Construction Contract; (v) The sureties’ failure to perform according to the Contract Documents; or (vi) The sureties’ failure to follow City’s instructions for completion of the Work within the Contract Time. 16.3 Damages to City. 16.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 16.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or Invitation for Bid (IFB) Package 18 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 its designee upon Final Completion of the Project. If the Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City. 16.4 Suspension by City for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 16.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. 16.5.1 Compensation. Following such termination and within forty‐five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close‐out Costs. Reasonable costs of Contractor and its Subcontractors and Sub‐subcontractors for: (i) Demobilizing and (ii) Administering the close‐out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. 16.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. Invitation for Bid (IFB) Package 19 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 16.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (iii) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES. 17.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 17.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 17.1.2 For City's Non‐Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 17.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 18 ACCOUNTING RECORDS. 18.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally Invitation for Bid (IFB) Package 20 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. 18.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 19 INDEPENDENT PARTIES. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 20 NUISANCE. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 21 PERMITS AND LICENSES. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non‐City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 22 WAIVER. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. SECTION 23 GOVERNING LAW. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California. Invitation for Bid (IFB) Package 21 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 SECTION 24 COMPLETE AGREEMENT. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 25 SURVIVAL OF CONTRACT. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 26 PREVAILING WAGES. This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in the performance and implementation of the Project, because the City, pursuant to its authority as a chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City invokes the exemption from the state prevailing wage requirement for this Project and declares that the Project is funded one hundred percent (100%) by the City of Palo Alto. Or The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations. Copies of these rates may be obtained at cost at the Purchasing office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor Code. SECTION 27 NON APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 28 AUTHORITY. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 29 ATTORNEY FEES. Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, the prevailing party in any action brought to enforce the provision of this Agreement may recover its reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be Invitation for Bid (IFB) Package 22 Rev. May 1, 2012 PART 3 – CONSTRUCTION CONTRACT C13146670 entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorney’s’ fees paid to third parties. SECTION 30 COUNTERPARTS This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 31 SEVERABILITY. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ___________________________ Senior Asst. 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003-30-002 003-14-003 003-14-002 003-23-104 003-24-035 ARCADIA PLACE NEWELL ROAD NUE NEWELL RO AD NEWELL ROAD LOUISA COURT NEWELL PLACE WALTER HAYS DRIVE WALTER HAYS DRIVE WALNUT DRIVE OPKINS AVENUE NEWELL ROAD EMBARCADERO ROAD WALTER HAYS DRIVE WALTER HAYS DRIVE LOIS LANE LOIS LANE IRIS W PRIMROSE WAY LOIS LANE STANLEY WAY JORDAN PLACE ERSTWILD COURT RCADERO ROAD L HEATHER LANE IRIS WWALTER HAYS DRIVE CHANNING AVENUE ALESTER AVENUE DANA AVENUE STANLEY WAY CHANNING AVENUE DE SOTO DRIVE DE SOTO DRIVE DE SOTO DRIVE KINGS LANE AN AVENUE NEWELL ROAD DANA AVENUE MADISON W ALESTER AVENUE PRIMROSE WAYMMUNITY LANE AVENUE HAMILTON AVENUE J PATR I JACKSON DRIVE RHODES DRIVE WALNUT DRIVE WALNUT DR 1210 1210 12499 1430 1430 1420 1420 1410 1410 1259 1435 1435 1425 1425 1417 1417 1409 1409 1120 1120 14421442 1436 1436 1430 1430 1424 1424 1509 1509 1511 1511 11501150 1551 1551 15901590 1584 1584 1580 1580 1570 1570 1574 1574 1564 1564 1560 1560 1554 15541550 15501544 1544 15401540 15301530 1524 1524 15201520 1514 1514 1510 1510 1534 153411851185 29229211251125 298 298 1174 1174 1160 1160 1543 1543 291291 1533 15331525 1525 1539 1539 98 98 1213 1213 1313 916 30 869869 873873 877 877 102 102 104 104 1585 1585 881 881 885 885 889889 108 108 110 110 112 112 114 114 116 116 893893 897897 118 118 901901 907907 911911 120 120 122 122 107 107 105 105 103103 108 108 101101 885 8 0 1900 106 106 15951595 147 147 144144 145 145 140140 143 143 141 141 132 132 117 117 119 119 139 139 129 129 136 136 128 128 115 115 113 113 111 111 120 120 124 124 109 109 112 112 116 116 15631563 149 149 145 145 125 125 121 121 117 117 113 113 1167 1167 109 109 1555 1555 1175 1175 10 10 70 70 50 50 30 30 148148 135 135 921 921 135 135 125 125 121 121 115 115 111 111 142142 131 131140140 130130 134134 138138 126 126 917 917 61 61134134 13013051 51 12412441 41 12012031 31 11 11 20 20 947 947 953 953 9 110 40 40 940 940 944 944 948 948 10 10 26 26 22 22 18 18 1985 1985 101 101140140 144144 111 111150150 112112 108108 102102144144 146146 141 141 145 145 151 151 107 107 1431 1431 1451 1451 960 960 1471 1471 1425 1425 1445 1445 1449 1449 10601060 1050 1050 1040 1040 1470 1470 1450 1450 1430 1430 893 85 877 869 861 1470 1470 1430 1430 1450 1450 930 930 1470 1470 910 910 896 896 890 890 1475 1475 1465 1465 1435 1435 860 860 880 880 1475 1475 1469 1469 1450 1450 1431 1431 1471 1471 1451 1451 1476 1476 1470 147014641464 8 1463 1463 1457 1457 15421542 15501550 1560 1560 15681568 1491 1491 10101010 901901 15141514 15241524 15321532 921921 941941 246 246981981 961961 10031003 250 250 256 25610171017 10311031 262 262 268 26810451045 274 274 280 280 28628610871087 10731073 10591059 1146 1146 1132 1132 11041104 111811187373 6161 4949 1082 1082 1058 10583737 2525 1034 1034 205 205 201 201 976976 930930 15861586 204 204 15781578 210 210 216 216 228 228 222 222 234 234 240 240 235235 249249 255255 38 38 26 26 14 14 50 50261261 62 62267267 74 74273273 279279 86 86 285285 85 85 97 97 709 709 1507 1507 1526 152615161516 809 809 825 825 841 841 849 849 861 861 897897 707 707 705 705 1535 1535 1525 1525 1515 1515 867 867 873 873 879 879 14821482 1488 1488 1494 1494 1491 1491 1490 1490 1487 1487 1481 1481 14821482 14861486 1491 1491 780 780 14901490 14941494 14981498 777 777 723 723 1537 1537 765765 761761 763 763 1601 16011595 15951585 1585 730730 722722 718718 773 773 785 785 781 7811517 1517 1527 1527 15361536 855855 721 721 719 719 717 717 715 715 713 713 711 711 762 762 759759 1536 1536 1530 1530 1524 1524 735 735 745 745 755755 725 725 1516 1516 727 727 729 729 725 725 167167 197 197 195 195 193 193 189 189 188 188 184 184 180 18010611061 10211021 187 187 176 176 172 172 168 168 181 181 179 179 161 161 159 159 169 169 157 157 155 155 153 153 160160 156156 152152 151 151 164 164 11111111 11311131 189189 185185 181181 177 177 157 157 153 153 31 31 51 51 71 71 9090 149 149 191 191 185 185 183 183 925925 753 753 975975 1610 1610 1630 1630 1624 1624 1616 1616 196 196 194 194 192 192 190 190 1629 1629 1621 1621 751 751 755 755 757 757 1613 1613 1607 1607 726726 758 758 754 754 750 750 746 746742 742738 738734734 1590 1590 1600 1600 798 798 1636 1636 1644 1644 1650 1650 1656 1656 1664 1664 188 188 186 186 184 184 182 182 1670 1670 1676 1676 180 180 1684 1684 174 174 749 749 747 747 745745 728 728 742 742 756 756 770 770 784 784 700700 741 741 743743 1610 1610 714 714 115 115154154 121 121160160 125 125164164 170170129 129 174174 180180 184184 190190 194194 365 365 359 359 355 355 349 349 345 345 12128 12124 12120 116116 137 137 141 141 145 145 148148 150150 152152 154154 156156 158158 160160 166166 133 133 155 155 161 161 165 165 171 171 175 175 181 181 185 185 191 191 195 195 162162 17961796 680 680 660 660 640 640 1772 1772 1748 17481724 17241700 17001698 16981682 16821668 1668 1733 1733 1765 1765 586 586 591 591 1701 1701 1717 1717 1736 1736 1712 1712 1724 1724212212 368 368 366 366 360 360 356 356170 170 1690 1690 1696 1696 199 199 203 203 207 207 211 211 215 215 705 705 65 6681 1795 1795 580 5 1748 1748 1760 1760 346 346 350 350 1595 1595 1533 1533 1537 1537 1539 1539 1543 1543 1547 1547 1551 1551 1555 1555 1561 1561 1565 1565 1571 1571 1581 1581 1591 1591 1601 1601 690690 1610 16101602 1602 1596 1596 1586 1586 1576 1576 1566 1566 1558 1558 1550 1550 1580 1580 1570 1570 1560 1560 1550 1550 1544 1544 1540 1540 739 739 737 737 735 735 733 733 731 731 1625 1625 1607 1607 582 582 579 579 572 572 588 588 576 576 570 570 564 564 558 558 569 569 559 559 552 552 1689 1689 1661 1661 567 573 574 579 579 585 585 601 601 1646 1646 583 583 577 577 14661466 14701470 14741474 14781478 1479 1479147 1496 1496 1486 1 148014 1495 1495 1491 1491 1487 1487 1483 1483 1499 1499 15 80 5801525 1525 1529 1529 1542 1542 1530 1530 1526 1526 1518 15101515 705705 566 566 578 578 570 575 575 1575 1575 550 550558 558 563 563 571 571 553553 547 547 546 546 540 540 541 541 53 1547 1547 101 101 1280 1280 895 895 930 930 This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0' 331' CHANNING AVE:Newell Road toHeather LaneLocation MapN.T.S. CITY OF PALO ALTOINCORPORATED CALI FORNIA P a l o A l t oT h e C i t y o f APRIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2012 City of Palo Alto scarlet, 2012-07-12 11:48:14 (\\cc-maps\gis$\gis\admin\meta\view.mdb) 003-43-043 003-43-042 003-43-044 003-43-049 003-43-048 003-43-047 003-43-046 120-07-013 120-07-014 120-07-012 120-06-041 120-06-042 120-06-043 120-06-082 120-06-081 120-06-046 120-06-047 120-06-048 120-06-049 120-06-034 120-06-033 120-06-050 120-06-051 120-06-052 120-06-053 120-06-032 120-06-065 120-06-039 120-06-076 120-06-077 003-43-041 003-43-038 003-43-039 003-43-040 003-43-033 003-43-009 003-43-010 003-43-011 003-43-012 003-43-013 003-43-014 003-43-015 003-43-016 003-43-008 003-43-007 003-43-006 003-43-005 003-43-004 003-43-003 003-43-002 003-43-001 003-43-029 003-43-028 003-43-027 003-43-050 003-43-051 003-43-024 003-43-023 003-43-022 003-43-021 003-43-030 003-43-031 003-43-032 003-43-020 003-43-019 003-43-018 003-43-017 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003-35-085 003-35-097 003-35-089 003-27-052 003-27-048 003-27-050 003-27-051 003-27-049 MIDDLEFIE NUE PARKINSON AVENUEFULTON STREET KINGSLEY AVENUE KINGSLEY AVENUE MELVILLE AVENUE MELVILLE AVENUEGUINDA STREET GREENWOOD AVEN MELVILLE AVENUE CHANNING AVENUE LINCOLN AVENUE CHANNING AVENUE REGENT PLACE BYRON STREET LINCOLN AVENUE LINCOLN AVENUE FULTON STREET FULTON STREET MIDDLEFIELD ROAD MIDDLEFIELD ROAD ADDISON AVENUE GUINDA STREET ADDISON AVENUE CHANNING AVENUE GUINDA STREET HARKER AVENUE LINCOLN AVENUE 660 1150 1150 663 663 671 671 646 646 1147 1147 1139 1139 655 655 659 659 1142 124 1124 11191120 1120 1111 1111 630 630 1112 1112 1101 1101 728 728 720 720 1111 1111 1119 1119 1127 1127 1145 1145 1149 1149 1151 703 703 1136 1136 1128 1128 1120 1120 1112 1112 1085 1085 705 705 1101 1101 1120 1120 1110 1110690 690 660 660 1119 1119 1125 1125 650 1023 1023- 1027 1025 1027 1051 1051 1065 1065 1077 1077 1053 1053 1144 1144 1152 1152 1160 1160 711 711 1135 1135 1143 1143 1151 1151 1160 1160 1202 1202 1212 1212 787 787 750 750 1211 1211 1219 1219 1227 1227 769 7691202 1202 1212 1212 1222 1222 1230 12301211 1211 1221 1221 700 700 1231 1231 1295 1295 1005 1005 1029 1029 1035 1035 1043 1043 1038 1038 778778 1030 1030 750750 1200 1216 1232 12 1248 1248 12041204 1212 1212 18 1015 10151013 1013 1021 1021 742 742 734734 1030 1030 1032 1032 1034 1034 10361036 727 717 709 1030 1030 1038 1038 1027 1027 1035 1035 1045 1045 1050 1050 1090 1090 1057 1057 1061 1061 1007 1007 1015 1015 1012 1012 1018 1018 1040 1040 1032 1032 1026 1026 1003 1003 708 708 740 740 1100 1100 750 750 1101 1101 1111 1111 1119 1119 725 725 731 731 717 717 927 927 950 950 737 737 733 750 758 764 774 786 786 920 920 825 825 811 811 804 804 808808 812812 777 777 767 767 833 833 835 835 1057 1057 809 809 1033 1033 1023 1023 1017 1017 1011 1011 1003 1003 844 844 912 912 931 931 833 833 825 825 937 937 943 943 803 803 1017 1017 1011 1011 1001 1001 1020 1020 1010 1010 1000 1000 909 909 869 869 843 843 915 915 930 930 918918 916916 826 826 828 828 834 834 836 836 919 919 853 853 855 855 857 857 861 861 920920925925816816838 812 812 804 804 1125 1125 1135 1135 1143 1143 1151 1151 1163 1163 805 805 813 813 831 831 852 852 839 839 849 849 860 860 863 863 868 868 869 869 880 880 875 875 890890 833 833 827 827817 817 839 839 849 849 970 970 859 859 867 867 877 877 891 891 1150 1150 1142 11421127 1127 1134 1134 1126 1126 1118 1118 1110 1110 950 950 817 817 840 840 815 815 826826820 820 895895 1090 840 840 1010 1030 1050 1070 876 876 1023 1023 1037 1037 1051 1051 1065 1065 95 896 896 1020 1020 1026 1026 1032 1032 1040 1040 9 98 786786 794794 818 818 830830 1025 1025 1070 1070 1031 1031 1019 1019 1037 1037 1030 1030 1050 1050 957 957 959 959 961 961 921 921 915 915 911 911 951 951 919 919 991 991 985 985 975 975 955 955 953 4 4 10 10 900 900 1011 1011 1021 1021 1031 1031 1041 1041 1051 1051 40 40 1093 30 30 20 20 906 906 1159 1159 930 930 960 960 1130 1130 1142 1142 1146 1146 922922 1018 1018 1061 1061 1069 1069 1000 1000 1057 1057 1073 1073 821 821821A 708 708 828 828 This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0' 204' LINCOLN AVE:Channing Avenue toMiddlefield RoadLocation MapN.T.S. CITY OF PALO ALTOINCORPORATED CALI FORNIA P a l o A l t oT h e C i t y o f APRIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2012 City of Palo Alto scarlet, 2012-07-12 11:26:48 (\\cc-maps\gis$\gis\admin\meta\view.mdb) Attachment C Ranking (Lowest Bidder to Highest Bidder)COMPANY BASE BID Engineer's Estimate City of Palo Alto $2,069,987.50 1 Valentine Corporation $1,947,368.50 2 Ranger Pipeline Inc.$2,121,518.00 3 Stoloski & Gonzalez Non-Responsive Bidder 4 Casey Construction $2,299,965.00 5 Con-Quest Contractors Inc. $2,332,625.00 Channing Avenue/Lincoln Avenue Storm Drain Improvement Project - Phase II Bid Summary - July 10, 2012 Project No.: SD-11101