Contract - GCI Construction - 2014-06-17#200 -A Force Main Replacement for Mendoza Pump Station
CONTRACT
(Public Works $30,000 - $125,000)
This AGREEMENT is made and entered into this J% day of June, 2014, by and
between the COSTA MESA SANITARY DISTRICT hereinafter referred to as "DISTRICT" and,
GCI CONSTRUCTION, INC., hereinafter referred to as "CONTRACTOR."
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and
exchanged, DISTRICT and CONTRACTOR mutually agree as follows:
Scope of the Work. CONTRACTOR shall use industry standard methods and
practices for constructing a new force main for the Mendoza Pump Station as
shown in the plans and specifications. CONTRACTOR shall include all items
necessary for a complete job whether or not any item is specifically identified in
the plans and specifications.
2. Labor and Materials. All of said work to be performed and materials to be
furnished shall be in strict accordance with the plans and specifications for Project #200 -A,
incorporated herein by this reference, and CONTRACTOR agrees to do everything required by
this AGREEMENT, the plans and specifications, and any general conditions, if applicable.
All labor, materials, tools, equipment and services shall be furnished and work
performed, and under the direction, administration and subject to the approval of DISTRICT or
its authorized representatives.
3. Term. The term of this AGREEMENT shall commence on an agreed start date
between DISTRICT and CONTRACTOR and shall be completed in 30 (thirty) working days.
4. Time of the Essence. This provision does not apply to this AGREEMENT.
5. Delay Damages. This provision does not apply to this AGREEMENT.
6. The Contract Sum. DISTRICT agrees to pay and CONTRACTOR agrees to
accept in full payment for the work above agreed to be done the sum of: Eighty Two Thousand
Five Hundred Forty Dollars ($82.540.00),
Progress Payments. This provision does not apply to this AGREEMENT.
8. Prompt Payments. DISTRICT agrees to promptly make progress payments on
undisputed and properly submitted payment requests within thirty (30) days and to comply with
the provisions of Public Contract Code Section 20104.50.
Contract - Public Works
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9. Retention Securities. This provision does not apply to this AGREEMENT.
Should progress payments be desired, DISTRICT may retain five percent (5 %) of the progress
payment unless CONTRACTOR establishes an escrow account.
10. Federal Participation. This provision does not apply to this AGREEMENT.
11. Compliance with the Davis -Bacon Act. This provision does not apply to this
AGREEMENT.
12. Prevailing Wage Rates. DISTRICT has ascertained the general prevailing rate
of per diem wages and the general prevailing rate for legal holidays and overtime work in the
locality in which the work is to be performed for each craft or type of work needed to execute
this AGREEMENT, and the same has been placed on file with the District Clerk. Said per diem
wages are deemed to include employer payments for health and welfare, pension, vacation, and
travel time and subsistence pay, all in accordance with sections 1773.1 and 1773.6 of the Labor
Code of the State of California.
13. Discrimination, Minorities, Aliens. The CONTRACTOR shall not discriminate
nor allow its employees, agents, principals, or subcontractors to discriminate against any
employee or applicant for employment on the basis of race, religious creed, national origin or
sex. CONTRACTOR shall take affirmative steps to hire qualified minority individuals when job
opportunities occur and utilize local business firms when possible and when consistent with
California Constitution Article 1, Section 31 (a) [Proposition 2091.
14. Equal Employment Opportunity. CONTRACTOR shall comply with all
provisions of Executive Order 11246, entitled "Equal Employment Opportunity ", and amended
by Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR
part 60).
15. Payroll Records. The provisions of section 1776 of the Labor Code of the State
of California regarding the preparation, maintenance and fling of payroll records are applicable
to this AGREEMENT. Specifically, each CONTRACTOR and subcontractor shall keep an
accurate payroll record, showing the name, address, social security number, work classification,
straight time and overtime hours worked each day and week, and the actual per diem wages
paid to each journeyman, apprentice or worker employed by him in connection with the public
work. THE CONTRACTOR'S AND SUBCONTRACTOR'S PAYROLL RECORDS SHALL BE
SUBMITTED ON A WEEKLY BASIS, THE CONTRACTOR SHALL BE RESPONSIBLE FOR
SUBMITTAL OF SUB - CONTRACTOR'S PAYROLL RECORDS.
16. Penalty. CONTRACTOR shall, as a penalty to the DISTRICT, forfeit up to Fifty
Dollars ($50.00) for each calendar day or portion thereof for each workman paid (either by him
or any subcontractor under him) less than the prevailing rate set forth herein on the work
provided for in this AGREEMENT, all in accordance with section 1775 of the Labor Code of the
State of California.
17. Apprentices. If applicable, the provisions of Labor Code Section 1777.5
requiring the use of apprentices in certain ratios to journeymen on the project are hereby
imposed upon CONTRACTOR.
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18. Legal Day's Work. In the performance of this AGREEMENT, not more than
eight (8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than
eight (8) hours of labor in a day from any person employed by him hereunder except as
provided in Section 11 above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7
(section 1810, et seq.) of the Labor Code of the State of California, and it is agreed that the
CONTRACTOR shall forfeit to the DISTRICT as a penalty the sum of $25.00 for each workman
employed in the execution of this AGREEMENT by the CONTRACTOR or any subcontractor for
each calendar day during which any workman is required or permitted to labor more than eight
(8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of
said article.
19. Subcontracting. CONTRACTOR acknowledges that he is aware of the
provisions of the "Subletting and Subcontracting Fair Practices Act" (Public Contract Code
Section 4100 et seq.) and that he agrees to comply with all applicable provisions thereof. If any
part of the work to be done under this AGREEMENT is subcontracted, the subcontract shall be
in writing and shall provide that all work to be performed thereunder shall be performed in
accordance with this AGREEMENT, Upon request, certified copies of any or all subcontracts
shall be furnished the DISTRICT. The subcontracting of any or all of the work to be done will in
no way relieve the CONTRACTOR of any part of his responsibility under the AGREEMENT.
Breach of any of the above provisions will be considered a violation of the AGREEMENT, and
the DISTRICT may: cancel the AGREEMENT, assess the CONTRACTOR a penalty of not more
than ten percent (10 %) of the subcontract involved, or cancel the AGREEMENT and assess the
penalty.
All persons engaged in the work, including subcontractors, will be considered as
employees of the CONTRACTOR. He will be held responsible for their work. The DISTRICT
will deal directly with and make all payments to the CONTRACTOR.
20. Workers' Compensation. CONTRACTOR shall carry Workers' Compensation
Insurance and require all subcontractors to carry Workers' Compensation Insurance as required
by the Labor Code of the State of California. CONTRACTOR, by executing this AGREEMENT,
hereby certifies:
"I am aware of the provisions of Section 3700 of the Labor Code
which require every employer to be insured against liability for
Workers' Compensation or to undertake self - insurance in
accordance with the provisions of that code, and I will comply with
such provisions before commencing the performance of the work
of this AGREEMENT."
21. Drug -Free Work. CONTRACTOR agrees to provide a drug -free workplace in
accordance with 24 CFR part 24, sub -part F. Under 24 CFR part 24 sub -part F„ the
CONTRACTOR will provide certification in writing that it will provide a drug -free workplace by:
(a) Publicizing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession or use of a controlled substance is prohibited in the
workplace and specifying the action it will take against employees for violation of such
prohibition;
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(b) Establish an ongoing drug -free awareness program to inform employees about:
1. Degrees of drug abuse in the workplace;
2. The policy of maintaining a drug -free workplace;
3. Any available drug counseling, rehabilitation and employee assistance
programs;
4. The penalties which may be imposed on employees for drug abuse violations
occurring in the workplace;
(c) Making it a requirement that every employee to be engaged in the performance
of the AGREEMENT be given a copy of the statement required by paragraph (a);
(d) Notifying employees in the statement required by paragraph (a) that as a
condition of employment under the AGREEMENT the employee will:
1. Abide by the term of the statement; and
2. Notify the employer in writing of any conviction for a violation of a criminal
drug statute occurring in the workplace no later than five (5) calendar days
after such conviction;
(e) Notify the DISTRICT in writing, within ten (10) calendar days after receiving
notice under subparagraph (d) (2) from an employee or otherwise receiving actual notice
of such conviction. Employer of said convicted employee must provide notice, including
conviction title, to the DISTRICT;
(f) Taking one of the following actions, within thirty (30) calendar days of receiving
notice under subparagraph (d) (2), with respect to any employee who is so convicted:
1. Taking appropriate action against such an employee, up to and including
termination, consistent with the requirements of the Rehabilitation Act of
1973, as amended; or
2. Requiring such employee to participate satisfactorily in a drug abuse
assistance or rehabilitation program approved for such purposes by a
Federal, State or local health, law enforcement, or other appropriate agency;
(g) Making a good faith effort to continue to maintain a drug -free workplace through
implementation of paragraphs (a), (b), (c), (d), (e) and (f).
22. Bonds. CONTRACTOR shall be required to post a faithful performance bond
and labor and material bond, each in the sum of Eighty Two Thousand Five Hundred Forty
Dollars ($82,540).
23. CONTRACTOR'S Affidavit. This provision does not apply to this AGREEMENT.
24. CONTRACTOR'S Waiver. This provision does not apply to this AGREEMENT.
25. Notice to Proceed. No work shall begin until all bonds and insurance is on file
and the AGREEMENT executed, at which time a Notice to Proceed will be given.
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26. Termination.
A. If CONTRACTOR should fail to comply with any of the provisions hereof, or in
the event CONTRACTOR should become the subject of a proceeding under state or federal law
for relief of debtors, or if CONTRACTOR makes an assignment for the benefit of creditors,
DISTRICT shall have the right to hold CONTRACTOR in default and cancel this AGREEMENT
in whole or in part.
B. Should CONTRACTOR, at any time during the progress of the work, refuse or
neglect to supply sufficient material or labor, or fail in compliance with any provision of this
AGREEMENT, DISTRICT shall have the right, without prejudice to any other right or remedy it
may have, to provide such materials and labor, or make good such deficiencies as DISTRICT
may deem expedient after three (3) days notice in writing, delivered or mailed to
CONTRACTOR at his last address on file with DISTRICT, and CONTRACTOR shall be liable
for the cost and expense thereof which may be deducted by DISTRICT from any money that
may be due CONTRACTOR.
C. Without limiting any rights which DISTRICT may have by reason of any default
by CONTRACTOR hereunder, DISTRICT reserves the right to terminate this AGREEMENT in
whole or in part at its convenience. In such event DISTRICT shall compensate CONTRACTOR,
subject to deduction for previous payments (i) by reimbursing CONTRACTOR for all actual
expenditures and costs incurred in performing under this AGREEMENT (ii) by reimbursing
CONTRACTOR for all expenditures made and costs incurred with DISTRICT'S prior written
approval in settling or discharging outstanding commitments entered into by CONTRACTOR in
performing under this AGREEMENT and (iii) by paying CONTRACTOR as a profit, insofar as a
profit is realized hereunder, an amount equal to the profit on the entire AGREEMENT estimated
at the time of termination, multiplied by the percentage of completion of the work. In no event,
however, will the compensation to CONTRACTOR exceed the total AGREEMENT price less
payments previously made and less the AGREEMENT price of work not terminated. Upon
receipt of any notice of termination, CONTRACTOR shall, unless the notice otherwise directs, (i)
immediately discontinue the work and the placing of all orders and subcontracts in connection
with this AGREEMENT, (ii) immediately cancel all existing orders and subcontracts made
hereunder and (iii) immediately transfer to DISTRICT all materials, supplies, work -in- process,
appliances, facilities, equipment, machinery and tools acquired by CONTRACTOR in
connection with the performance of this AGREEMENT.
27. CONTRACTOR'S Independent Investigation. No plea of ignorance of
conditions that exist or that may hereafter exist, or of conditions or difficulties that may be
encountered in the execution of the work under this AGREEMENT, as a result of failure to make
the necessary independent examinations and investigations, and no plea of reliance on initial
investigations or reports prepared by DISTRICT for purposes of letting this AGREEMENT out to
bid, will be accepted as an excuse for any failure or omission on the part of the CONTRACTOR
to fulfill in every detail all requirements of said AGREEMENT, specifications, and plans. Nor will
such reasons be accepted as a basis for any claims whatsoever for extra compensation or for
an extension of time except as provided in Paragraph 28 of this AGREEMENT.
28. Damages /Extra Work Compensation. No claim for extra work or expense shall
be payable unless brought to the DISTRICT's attention as soon as possible so the situation can
be observed or documented.
29. Other Documents Included. This provision does not apply to this
AGREEMENT.
30. Interpretation. In the event of any conflict, inconsistency or incongruity between
the provisions of this AGREEMENT and the provisions of any other document or amendments
thereto, the provisions of this AGREEMENT shall control in all respects.
31. Additional Costs. CONTRACTOR shall be responsible to reimburse the
DISTRICT a sum equal to the expenses of administration and legal services required to be
expended by the DISTRICT in processing Notices to Withhold, Stop Notices, or similar legal
documents arising out of a failure of the CONTRACTOR to pay for labor or materials. Said
obligation shall be provided for in the payment bond required by the CONTRACTOR. The
DISTRICT shall further have the right to offset any such costs and expenses incurred by
DISTRICT against any sums owing to CONTRACTOR under this AGREEMENT.
32. Insurance. CONTRACTOR shall provide proof of commercial general liability
and workers' compensation insurance before starting the job as required by DISTRICT.
33. Indemnification. CONTRACTOR and DISTRICT agree that DISTRICT should,
to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit,
cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost
arising out of or in any way related to the performance of this AGREEMENT. Accordingly, the
provisions of this indemnity provision are intended by the parties to be interpreted and
construed to provide the fullest protection possible under the law to the DISTRICT, except for
liability attributable to the DISTRICT's active negligence. CONTRACTOR acknowledges that
DISTRICT would not enter into this AGREEMENT in the absence of this commitment from
CONTRACTOR to indemnify and protect DISTRICT as set forth here.
To the full extent permitted by law and excepting only the active negligence of
DISTRICT, established by a court of competent jurisdiction or written agreement between the
parties, CONTRACTOR shall defend, indemnify and hold harmless DISTRICT, its employees,
agents and officials, from any liability, claims, suits, actions, arbitration proceedings,
administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind,
whether actual, alleged or threatened, actual attorney fees incurred by DISTRICT, court costs,
interest, defense costs including expert witness fees and any other costs or expenses of any
kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or
arising out of or in any way attributable actually, allegedly or impliedly, in whole or in part to the
performance of this AGREEMENT. All obligations under this provision are to be paid by
CONTRACTOR as incurred by DISTRICT.
Without affecting the rights of DISTRICT under any provision of this AGREEMENT or
this Section, CONTRACTOR shall not be required to indemnify and hold harmless DISTRICT as
set forth above for liability attributable to the active negligence of DISTRICT, provided such
active negligence is determined by agreement between the parties or the findings of a court of
competent jurisdiction. This exception will apply only in instances where the DISTRICT is
shown to have been actively negligent and not in instances where CONTRACTOR is solely or
partially at fault or in instances where DISTRICT's active negligence accounts for only a
percentage of the liability involved. In those instances, the obligation of CONTRACTOR will be
for that portion or percentage of liability not attributable to the active negligence of DISTRICT as
determined by written agreement between the parties or the findings of a court of competent
jurisdiction.
The obligations of CONTRACTOR under this or any other provision of this
AGREEMENT will not be limited by the provisions of any workers' compensation act or similar
act. CONTRACTOR expressly waives its statutory immunity under such statutes or laws as to
DISTRICT, its employees and officials.
CONTRACTOR agrees to obtain executed indemnity agreements with provisions
identical to those set forth here in this section from each and every subcontractor, sub -tier
contractor or any other person or entity involved by, for, with or on behalf of CONTRACTOR in
the performance of subject matter of this AGREEMENT. In the event CONTRACTOR fails to
obtain such indemnity obligations from others as required here, CONTRACTOR agrees to be
fully responsible according to the terms of this section.
Failure of DISTRICT to monitor compliance with these requirements imposes no
additional obligations on DISTRICT and will in no way act as a waiver of any rights hereunder.
This obligation to indemnify and defend DISTRICT as set forth herein is binding on the
successors, assigns, or heirs of CONTRACTOR and shall survive the termination of this
AGREEMENT or this Section.
34. Permits. The CONTRACTOR shall obtain from the DISTRICT, County, State, or
other responsible public agencies all licenses and permits, and pay all fees related thereto,
necessary to complete the job.
35. Assignment. No assignment by the CONTRACTOR of this AGREEMENT or
any part hereof, or of funds to be received hereunder, will be recognized by the DISTRICT
unless such assignment has had prior written approval and consent of the DISTRICT and the
Surety.
36. Safety and Site Condition. CONTRACTOR shall perform all operations with
due regard for safety and in strict compliance with all applicable laws relating thereto. It shall be
CONTRACTOR'S responsibility to keep the site in a clean, neat and orderly condition. It shall
also be CONTRACTOR'S duty to dust - palliate all working areas and access routes, if
applicable. All operations shall be conducted by CONTRACTOR so that no fire hazards are
created.
37. Utility Location. DISTRICT acknowledges its responsibilities with respect to
locating facilities pursuant to California Government Code Section 4215.
38. Notices. The parties hereto agree that all formal notices required by this
Agreement may be provided to the following persons at the following addresses by sending the
same by certified or registered mail as follows:
DISTRICT: Costa Mesa Sanitary District
628 E. 29th Street
Costa Mesa, CA 92627
CONTRACTOR: GCI Construction, Inc.
1031 Calle Recodo, Suite D
San Clemente, CA 92673
LOCAL CONTACT: Terry Gillespie
(714) 957 -0233
39. Effect of Invalidity. The invalidity in whole or in part of any provisions hereof
shall not affect the validity of any other provision.
40. Gratuities. CONTRACTOR warrants that neither it nor any of its employees,
agents or representatives has offered or given any gratuities to DISTRICT'S employees, agents
or representatives with a view toward securing this AGREEMENT or securing favorable
treatment with respect thereto.
41. Conflict of Interest. CONTRACTOR warrants that he has no blood or marriage
relationship, and that he is not in any way associated with any architect, engineer or other
preparer of the plans and specifications for this project.
42. Copeland "Anti- Kickback" Act. If applicable to this AGREEMENT,
CONTRACTOR and its subcontractors shall comply with the provisions of the Copeland "Anti -
Kickback" Act (18 USC Section 874), as supplemented in Department of Labor regulations,
which Act provides that each contractor shall be prohibited from including, by any means, any
person employed in the construction, completion or repair of any public work, to give up any part
of the compensation to which he is otherwise entitled.
43. Final Closeout Agreement and Release of All Claims. Prior to filing the Notice
of Completion the CONTRACTOR and DISTRICT shall execute and record a Final Closeout
Agreement and Release of All Claims if so desired by DISTRICT.
44, Guarantees.
A. Work. CONTRACTOR shall and hereby does guarantee all Work for a period of
one (1) year after the date of acceptance of the Work by the DISTRICT and shall repair and
replace any and all such Work, together with any other work which may be displaced in so doing
that may prove defective in workmanship and /or materials within the one (1) year period from
date of acceptance, without expense whatsoever to the DISTRICT, ordinary wear and tear and
usual abuse or neglect excepted.
B. Materials. CONTRACTOR shall and hereby does guarantee all materials for a
lifetime after the date of acceptance of the materials by the DISTRICT and shall repair and
replace any and all such materials, together with any other materials which may be displaced in
so doing that may prove defective during the lifetime of the materials, without expense
whatsoever to the DISTRICT, ordinary wear and tear and usual abuse or neglect excepted.
In the event of failure to comply with the aforementioned conditions within five (5) days
after being notified in writing, the DISTRICT is hereby authorized to proceed to have the defects
repaired and made good at the expense of the CONTRACTOR, who shall pay the cost and
charges therefore immediately on demand.
46. Job Proaress. CONTRACTOR shall provide DISTRICT with a critical path
progress report at least monthly.
46. Resolution of Claims. For all claims that are less than Three Hundred and
Seventy Five Thousand Dollars ($375,000.00), the provisions of Public Contracts Code Section
20104 at seq. (Article 1.5 – Resolution of Construction Claims) shall be followed.
47. Notice to Contractor of Claims. DISTRICT shall provide notice to
CONTRACTOR upon receipt of any third -party claim related to this AGREEMENT.
IN WITNESS WHEREOF, the parties hereto have entered into this AGREEMENT the
date and year first above written.
ATTEST: COSTA MESA SANITARY DISTRICT
Di trill Irk General Manager °—
APPROVED AS TO FORM:
District Counsel
GCI Construction, Inc.
Address: 1031 Calle Recodo, Ste. D
San ¢lemente, CA 92673
By
Te ry Giyespie
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of
Orange
On June 16, 2014 before me, Janet Gillespie - Notary Public
new Hue moan Name and 711a el the cheer
personally appeared Terry D. Gillespie
JANET GILLESPIE
Commission M 204 99 68
Notary Public - California i
Orange County '
My Comm. Ea Tres Doc 21, 2017
who proved to me on the basis of satisfactory evidence to
be the personrs) whose named) a4li?b subscribed to the
within instrument and acknowledged to me that
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capacitypfbb), and that by hisAWWQ{& signature(9) on the
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which the person(g) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS m hand and o ici I seal.
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Description of Attached Document
Title or Type of Document:
Document Date:
Signerts) Other Than Named Above:
Capacity(tes) Claimed by Signer(s)
Number of Pages:
Signers Name:
Signer's Name:
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