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HomeMy WebLinkAbout2012/03/13 Item 12CITY COUNCIL AGENDA STATEMENT -- - - ~~. ~~t~i ~ '~'"` C ULA VISTA 3/13/12, Item (a"Z' ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A $195,673.00 DESIGN BUILD AGREEMENT WITH ALPHA MECHANICAL FOR THE "NORMAN PARK SENIOR CENTER VAC SYSTEM RETROFIT PROJECT" (GG219) SUBMITTED BY: DIRECTOR OF PUB I WORKS REVIEWED BY: CITY MANAGE ASSISTANT CITY ANAGER ~ j 4/STHS VOTE: YES ~ NO SUMMARY The Norman Park Senior Center encompasses approximately 17,000 square feet of conditioned heating and cooling space. The building's current HVAC system, which is comprised of (7) rooftop package units, (14) Variable Air Volume air-mixing boxes, and a Direct Digital Control System, have all been in operation since 1992 and have far surpassed their service life expectancies of approximately 15 years. As such, the "Norman Park Senior Center HVAC System Retrofit Project" will replace the outdated equipment with high efficiency components generating over $4,000 in annual energy cost savings. The $195,673 project will be fully funded through federal Energy Efficiency & Conservation Block Grants. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity qualifies for a Class 1 categorical exemption pursuant to Section 15301 [Existing Facilities] of the State CEQA Guidelines because the activity consists of repair and replacement of existing HVAC mechanical equipment involving negligible or no expansion of an existing use. Thus, no further CEQA environmental review is necessary. Additionally, because the proposed project will be utilizing federal Energy Efficiency & Conservation Block Grants, the Development Services Director has reviewed the project proposal for compliance with the National Environmental Policy Act (NEPA) as implemented by the U.S. Department of Energy (DOE) Procedures (lOCFR 1021). The Development Services Director concurs with the DOE determination that the project proposal qualifies for a Categorical Exclusion pursuant to Code of Federal Regulations (CFR) Title 10, Appendix B to Subpart D of Part 1021, B1.4 [Installation/modification of air conditioning systems for existing equipment]. Thus, no further NEPA environmental review or determination is necessary. 12-1 3/13/12, Item Page 2 of 3 RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION City staff has strived over the years to pursue an aggressive preventative maintenance program for municipal facilities, including the Norman Park Senior Center's heating, ventilation, and air conditioning (HVAC) system. However, the Senior Center's HVAC system, which was installed in March 1992, is no longer functioning effectively and has far surpassed its expected 15-year useful life. The City has had to perform expensive system repairs over the last few years totaling over $20,000 to ensure its continued operation. As part of the Council-approved FY12 Capital Improvement Program, staff has proposed to replace the existing HVAC system, comprised of (7) rooftop package units, (14) Variable Air Volume air-mixing boxes, and the Direct Digital Control System, with new, more efficient equipment. In addition to saving approximately 32,000 kWh of energy annually, the new system will allow the building's temperatures to be better regulated helping to ensure a healthier and more comfortable environment for seniors and other occupants. This facilities improvement project is part of the City's broader efforts to promote energy efficiency at municipal sites and to lower citywide greenhouse gas or "carbon" emissions. The San Diego Gas & Electric (SDG&E)/California Public Utilities Commission Local Government Partnership Program has provided financial support for City staff to evaluate, identify, and coordinate the installation of these energy retrofit projects. Because Partnership funds are not able to be used for capital costs associated with the improvements, staff has worked to secure other funding to support the installation of energy efficiency and renewable energy equipment. As such, the Norman Park Senior Center HVAC System Retrofit Project will be fully funded through federal Energy Efficiency & Conservation Block Grants. To perform the HVAC upgrade, the following companies were contacted: Emcor Service/Mesa Energy Systems, Alpha Mechanical, Lake Mechanical, and Advantage Air. Only two proposals were received from Emcor/Mesa Energy Systems and Alpha Mechanical. Following interviews of the two respondents, Alpha Mechanical was selected as the best respondent based on design, monetary, and time criteria for the project. As part of Alpha Mechanical's Design Builder (D/B) proposal, a preliminary cost estimate was submitted in the amount of $195,673.00 (includes City contingency). Following the City's approval of 90% Construction Documents, Alpha Mechanical will submit a "Not to exceed the Gross Maximum Price" for which the project shall be designed and constructed. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. 12-2 3/13/12, Item Page 3 of 3 CURRENT YEAR FISCAL IMPACT There is no net, negative impact to the General Fund. The contract amount and costs for implementing the energy efficiency upgrade project will be funded through federal Energy Efficiency & Conservation Block Grants. City staff time managing the project will be supported through the SDG&E Local Government Partnership, which is funded by California utility ratepayers under the auspices of the California Public Utilities Commission. FUNDS REQUIRED FOR PROJECT A. Contractor Amount -Alpha Mechanical B. City Contingencies $186,355.00 $9,318.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $195,673.00 FUNDS AVAILABLE FOR PROJECT A. Energy Efficiency & Conservation Block Grants $195,673.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $195,673.00 ONGOING FISCAL IMPACT The Ciry's General Fund would realize approximately $4,000 in future energy cost savings annually. These cost savings will increase as utility rates increase every few years and as maintenance costs are avoided. ATTACHMENTS Exhibit A -Design Build Agreement with Alpha Mechanical Prepared by: Gordon Day, Building Project Manager, Public Works -Engineering Brendan Reed, Environmental Resource Manager, Public Works -Conservation Section H:IPUBLICWORKSIAGENDAICAS20I2103-13-121NormanParkHVAC CAS FINAL.docx 12-3 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY Dated: 8 ~ Z- DESIGN BUILD AGREEMENT FOR NORMAN PARK CENTER HVAC SYSTEM RETROFIT BETWEEN THE CITY OF CHULA VISTA, AND ALPHA MECHANICAL, INC. 12-4 DESIGN BUILD AGREEMENT FOR Norman Park Center HVAC System Retrofit THIS Agreement shall be for the design and construction the Norman Park Ceuter HVAC System Retrofit apd the O payment of permitted costs therefore ("Agreement"). This Agreement is made and entered into this ~arLh tiJ,.~~px by and between THE CITY OF CHULA VISTA, a municipal corporation ("City"), and Alpha Mechanical Inc, a California Corporation ("Design Builder or D/B"). City and D/B, when referenced herein, may be referred ro individually as "Party" and collectively as "Parties.° This Agreement is entered into with reference [o the following facts: RECITALS 1. The Chula Vista Norman Park Senior Center located at 270F Street is an important location for seniors to gather and obtain information and services. The second story of the facility is leased by vendors who provide goods and services to the elderly in our community. The existing HVAC system far the leased office space is interconnected with the HVAC system for the entire building, therefore the main system cools or heats the entire building as required for the leased offices. 2. By installing a completely new variable frequency drive chiller urrit, new control systern upgrade and rerouting of [he supply and return air ducting system for the leased office spaces the City will save 42.3529 KWH per year, a cost savings of $ 4,133.00 annually. 3. .As paR of that effort, on May 9, 2011 ,the Departtnent of Public Works, Engineering Division, issued a Request for Proposal (RFP), pursuant to § 2.57 of the City's Municipal Cade, to design and consnvct replacement stmctures ("Project") to qualified Design-Build firms off the Priority List. 4. The following companies were contacted: Encore /Mesa Mechanical, Alpha Mechanical Inc, Lake Mechanical and Advantage Air. 5. Following interviews of four (4) respondents, Alpha Mechanical was selected as the respondent who best met the design, monetary, and time criteria of the project with whom City could negotiate an agreement. 6. As part of D/B's proposal, D/B submitted a "Not to exceed Grass Maximum Price" of the Project in the amount of $ 195,673.00 ("Estimated Cost"/"EC"). 7. Following City's approval of 90% Construction Documents ("CD"), D/B shall subtni[ a guaranteed maximum price ("GMP'~, not to exceed the Gross Maximum Price, for which the Project shall be designed and constructed. 8. D/B shall complete the Project, as a public improvetnent, according to plans and specifications approved by City, for an amount not to exceed the GMP. NOW THEREFORE, in consideration of the recitals, mutual obligations of the Parties, the covenants and conditions herein, and for other good and valuable, the sufficiency of which is hereby acknowledge, [he Parties agree as follows: 12-5 ARTICLE I. DEFINITIONS ADA: The Americans with Disabilities Act of 1990 and any amendments thereto. Acceptance: Final approval by the City Inspection Team following the Final Inspection that Project Improvements are complete and work required on the Punch List ]tas beets finished. As-Builts: Project Record Documents [hat are the Contract plans modified from the original concept of the design to reflect the actual product built. CEQA: California Environmental Quality Act. Calendar Day(s): All days of the week, holidays and weekends included. Change Order: A written order, approved by City, authorizing a change in the work to be performed. City: The City of Chula Vista. Unless specifically provided otherwise, whenever this Agreement requires an action or approval by City, that action or approval shall be performed by the City representative designated by the Agreement. City Council: The City Council of the City of Chula Vista. City's Project Administration Costs: Charges that City incurs to: (i) administer the acquisitimt of the Property, (ii) review and approve the plans and specifications for the project improvements, and (iii) inspect She project improvements during constmction, until completion and Acceptance of the Project. Contract Documents: Including, but not limited to: Contract Addenda, Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying Bid and any post-bid documentation submitted prior to Notice of Award), the Bonds, the general conditions, permits from other agencies, the Special Provisions, the Plans, Standard Plans, Standard Specifications, Reference Specifications, and all modifications issued after the execution of this Agreement. Contract Time: The number of Calendar Days permitted under this Agreement for DB to achieve Substantial Completion. Defective Work: All work, material, or equipment that is unsatisfactory, faulty, incomplete, or does not conform to the Contract documents is defective. Design Build Team (DBT): Those individuals designated as being a part of the Design Build Team. Estimated Cost: The total cost of the Project as estimated in preliminary cost estimates as shown iu Exhibit 5\. Extra Work: Any City additions, modifications, or deletions to work or D/B obligations under this Agreement not within the original Scope of Work comemplated by this Agreement. Final Completion: The point at which the last of [he following has occurred: (1) recordation of a Notice of Completion for the Project; (2) acceptance of the Project by the City; (3) submission of all documents required to be supplied by D/B to City under this Agreement, including but not limited to As-Built Drawings, warranties, and operating manuals; and (4) and delivery to City of a Certificate of Completion duly verified by D/B. Greenbook: The most recent edition of the Standard Specifications for Public Works Construction (including any City of Chula Vista standard special provisions). Guaranteed Maximum Price ("GMP"): The maximum compensation to which D/B may be entitled for the performance of all Services, Work, and obligations and the satisfaction of al] conditions under dtis Agreement, which amount shall include all authorized costs for labor, equipment, and material [o design and build a fully functional Project in accordance with all applicable Hiles, regulations, and laws. Hard Construction Costs: Direct construction costs incurred in performing the work, including taxes, delivery and installation. Hard constmction costs shall no[ include D/B markup, handling fees, overhead, or other charges, except as otherwise set Forth in this Agreement. 12-6 Hazardous Materials: Hazardous waste or hazardous substance as defined in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code sections 9601-9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901- 6992k), the Carpenter Presley-Tanner Hazardous Substance Account Act (Health and Safety Code sections 25300- 25395.15), and the Hazazdous Waste Control Law (Health and Safety Code sections 25100-25250.25). "Hazardous Materials" shat] also include asbestos or asbestos containing materials, radon gas, and petrolewn or petroleum fractions, whether or not defined as hazardous waste or hazardous substance in auy such statute, ordinance, rule, or regulation. Holiday: The City-observed holidays. Law: All Federal, State, or local laws, regulations, ordinances, and/or policies. Milestones: Dates shown on the Project Schedule by which D/B shall complete major tasks either during design or construction of the Project. NEPA: National Environmental Policy Act. Notice to Proceed: City's written notice authorizing D/B to commence Work and/or Services on the Project. Notice of Termination: A written notice from City to D/B terminating the Agreement in accordance with Article XXVII. Project Site: The property located at 270 F Street and funkier described in Exhibit "A", attached. Reimbursable Costs: Building permits and Fees. Services: Professional services, including design and construction management of the Project that are required to design and construct the Project in accordance with the Contract Documents. Services does not include Work. Substantial Completion: That stage in the progress of the construction when alt Work on the Project is sufficiently complete in accordance widr the Construction Documents, so that City can fully utilize entire Project; Substantial Completion shall further mean that all goods, services and systems to be provided under the terms and conditions of the Construction Documents are in place, have been inidally tested, and are operationally functional, subject only to final testing, balancing and adjustments and normal Final Completion punch list work. Title 24: California Building Standards Code, California Code of Regulations, Title 24. Work: All labor, materials, supplies, and equipment that are necessary to construct the Project in accordance with the Contract Documents. Work does not include Services. Working Day(s): Monday through Friday, excluding City holidays. ARTICLE II. SCOPE OF THE AGREEMENT 2.l General. Except as expressly provided in [his Agreement, D/B shall design and cons[nw[ [he Project in accordance with all the terms and conditions of this Agreement, approved Plans and Specifications, and the timeframes established by the Project Schedule, attached as Exhibit "A", delivering a complete and tunctional Project within the Contract Tirne for an amount no[ to exceed the GMP. ARTICLE [II. TERM 3.1 Term of Agreement. This Agreement shall be effective on the date it is executed by the last Party to sign the Agreement following City Council approval by Resolution. The term of this Agreement will extend from the date of execution until satisfaction of all [eons and conditions herein, unless this Agreement is earlier terminated. ~2-~ ARTICLE IV. GENERAL PROJECT PERFORMANCE OBLIGATIONS 4.1 Standard of Care. Throughout the perfotmance this Agreement, performed under this Agreement, D(B agrees that al] Services and Work provided as part of this Agreement shall be performed in accordance with the standards customarily adhered to by experienced and competent professional architectural, engineering, landscape azchitecture, and construction firms using the degree of care and skill ordinarily exercised by reputable professionals practicing in the same field of service in the State of Califomia. 4.2 Compliance with all Laws. In the performance of this Agreement, D/B shall comply with all laws, including but not limited to: 4.2.1 All City, County, State, and Federal laws, codes and regulations, ordinances, and policies, including, but not limited to, the following: 4.2.1.1 Environmental Regulations (i.e. CEQA/ NEPA). 4.2.1.2 The Americans with Disabilities Act ("ADA") and Title 24 of the Califomia Building Code. It is the sole responsibility of D/B to comply with all ADA and Title 24 regulations. 4.2.1.3 The Califomia Fair Employment and Housing Act and all other State, Federal and local laws including, but not limited to, those prohibiting discrimination on account of race, color, national origin, religion, age, sex or handicap. 4.2.1.4 The Clean Ait Act of 1970, the Clean Water Act (33 USC 1368)-Executive Order 11738, and the Stormwater Managetnent and Discharge Control-Ordinance No. 0-17988. 4.2.1.5 D/B shall comply with the Essential Services Building Seismic Safety Act, SB 239 & 132. 4.2.1.6 DB shall comply immediately with all directives issued by City or its authorized representatives under authority of any laws, statutes, ordinances, rules, or regulations. 4.2.1.7 D/B shall obtain and cmnply with all permits necessary top complete the Project, including, but not limited to Development Services Department permits and hazardous material permits. 4.2.1.8 Zoning environmental, building, fire and safety codes and coverage, density and density ratios and lien laws. 4.2.2 Implied Knowledge o~Laws. D/B shall be responsible for all amendments or updates to standards and of all amendments or updates to standards, whether local, state, or federal, and such knowledge will be imputed to D/B to the extent allowed by law. 4.3 Desien and Construction Standards. In the performance of the Services and Work covered by this Agreement, D/B shall comply the most current versions of design and constmc[ion specifications, all of which shall be incorporated herein by this reference. 4.3.1 Standard Specifications. 4.3.1.1 Greenbook. The 2003 Edition of the Standard Specifications for Public Works Constrction. 4.3.1.2 California Department of Transportation Manual of Traffic Controls for Construction and Maintenance Work Zones. 4.3.2 City Specifications. 4.3.2.1 The 2000 Edition of the Chula Vista Standard Special Provisions. 4.3.2.2 The 2000 Edition of the Regional Standards. 4.3.2.3 The 2002 Edition of the Chula Vista Construction Standards. 4.3.2.4 The City's facility program, performance and design criteria, concept drawings, and reports. 4.3.3 Energy Conservation Standards. 4.3.4 Materials Standards. DB shall use industrial grade, not residential grade, equipment and accessories for all facets of design and construction. i2-a 4.4 Obtain City Approval. For any and all actions under this Agreement that require City approval, including, but not limited to, changes or additions to Agreement, D/B shall obtain approval in writing from the designated City Representative, or when required by Law, from the City Council. D/B acknowledges that approval from any individual other than the designated City Representative or City Council, where required, shall not be valid. 4.4.1 Failure to Obtain Approval. Any costs or delays resulting from or associated with additious or modifications implemented without the written authorization of [he City Representative shall be borne exclusively by D/B and not be grounds for an increase in GMP or Contract Time. 4.4.1.1 Emergency. In the event of an emergency, D/B shall take all reasonable actions necessary to protect public health, safety or property. Such action shall not require advance City approval; however, D/B shall notify the City immediately of the emergency and as soon as reasonably possible provide a written statement to the CiTy explaining the emergency and the reasonable actions taken. Provided the emergency was not caused by or its creation contributed to by the D/B, its employees, agents, or subcontractors, D/B maybe entitled to reasonable compensation for such actions. 4.4.2 No Release From Obligations. City approval shall be a general approval only, and such approval shall in no way release or relieve D/B of responsibility for complying with all applicable laws, codes, and good consulting design, or construction practices. 4.5 Decision Making. D/B shall make decisions with reasonable promptness to avoid delay in the orderly progress of D/B's obligations under this Agreement and pursuant to the Project Schedule, attached as Exhibit .~A „ 4.6 Perform Services and Work in Phases. The Services and Work under this Agreement shall be performed three (3) "Phases" in the manner and order described herein. ARTICLE V. PHASE I -DESIGN DEVELOPMENT 5.1 Desi¢n Team. City has awarded this Agreement based on the specific qualifications of D/B to perform the design services required under this Agreement. Atl such services shall be provided by D/B unless the City has approved of the use of Subconsultants in the manner identified in Article VIII. 5.2 Services. In Phase I, D/B shall perform Services including, but not limited to, the following: 5.2.1 Project Development. Develop and refine Project requirements. 5.2.2 DDD. Prepare complete DDDs, such that the DDDs include, without limitation, the following 5.2.2.2 Floor Plans. Floor plans including graphically demonstrating interior and exterior walls and fenestration with notes, room names, supply and return air registers, ductwork and calculations. 5.2.2.3 Roof Plans. Roof places including detailed notes, dimensions, and mechanical equipment locations. 5.2.2. , ..1..«e«... .. «.1 .1 :............ ~.. ... Ti/A ~o ~ , 5.2.2.5 b , , iiac[i~on~-~iu'S+rv-rtn 5.2.2.6 ..I .A:.... ..Il .. ~ .I: «.e«e:n«n }....: x....1..101.,-~..• 12-9 5.2.2.7 Outline specifications, written description of equipment and components including rooftop work. 5.2.2.8 _ o..r.~ ia...,,i,,.~..a~,.~.ea.,. .r,~~....,,.o ~r.,....r,..,t,t ~~n 5.2.3 Cade Compliance. Verify all code compliance, including building construction type, occupancy sprinkler requirements, existing, zoning and other agency conformance and ADA. 5.2.4 Submittals. Prior to proceeding with Phase II, D/B shall prepare and submit the foflowitrg to the City for review and written approval. 5.2.4.1 DDDs. Completed DDD. 5.2.4.1.1 Conditional Approval. In the event that City grants conditional approval, DB shall address all City comments or issues and make associated revisions in the next set of drawings developed and submitted. 5.2.4.1.2 Delay/Costs. Any delay or additional costs resulting from the re-submittal shall be borne exclusively by D/B and not be grounds for an increase in the GMP or Contract Time. 5.2.4.2 Other Deliverables. 3D rendered images, color and material boards, reflected ceiling plans, and special system or equipment plans. ARTICLE VI. PEiASE II 6.1 Phase II Services. hr Phase II of the Project, D/B's shall perform Services including, but are not limited to, the following: 6.1.1 Project Development. D/B shall diligently prosecute the development and refinement of Project requirements and review such requirements with City; 6.1.2 Dagital Documentation. D/B shall prepare CD's which shall include, without limitation, the following: 6.1.2.1 Architectural plans and details, including: 6.1.2.1.1 ' 6.1.2.].2 Floor plans, including roof, showing space assignments, sizes, and location of installed or fixed and movable equipment that affects the design of the spaces. 6.1.2.1.3 Building elevations indicating exterior design elements and features, including fenestration arrangements, materials, mechanical and electrical features appearing on the walls, roofs, and adjacent areas. 6.1.2.1.4 Interior elevations to establish functional requirements, equipment, and all systems locations. 6.1.2.1.5 Typical building sections showing primary structural members, dimensions, and accommodation of functional systems. 6.1.2.1.6 o nilA 6.1.22 Structural drawings including plans and sections of sufficient clarity and detail to show the extent and type of stmctural system and dimensions, final structural design criteria, foundation design criteria, preliminary sizing of major structural components, critical coordination clearances and applicable material lists. 6.1.2.3 Mechanical plans and details. 12-10 6.1.2.4 r ., __ , __....,, ae«.._ ~ „„n 6.1.2.5 Electrical plans and details. 6.1.2.6 Plumbing plans and details. 6.1.2.7 Plans showing installation of major systems, equipment, fixed furnishings and graphics. 6.1.2.8 Technical specifications. 6.1.2.9 All other technical drawings, schedules, diagrams and specifications, to set forth in detail the requirements for construction of the Project which, at a minimum, include: 6.1.2.9.1 Infortna[ion customarily necessary for the use of those in the building trades. 6.1.2.9.2 Documents customarily necessary m obtain regulatory agency approvals. 6.1.2.10 Mechanical design documentation consisting of continued development and expansion of schematic mechanical design consisting of: 6.1.2.10.1 Single line layouts and the approximate sizing of all equipment and capacities, preliminary equipment layouts. 6.1.2.10.2 Required space requirements for the equipment, required chases and clearances, acoustical and vibrations control, visual impacts and energy conservation measures. 6.1.2.11 Electrical design documentation consisting of continued expansion of the schematic electrical design consisting of: 6.1.2.1 1.1 ~ , A 6.1.2.11.2 Preliminary equipment layouts, required space for equipment, required chases and clearances. 6.1.2.12 Sections through critical areas showing coordination of architectural, stnmmral, mechanical and electrical elements. 6.1.2.13 Final specifications, including but not limited to, the following: 6.1.2.13.1 _,.o«~.e ,..._..«_._.~,... ~..,. a'_~'.,.e. ,.. r., ~..t,~ ., rr. n 6. L2.13.2 Mechanical. Description of air conditioning, heating and ventilation systems and controls, ducts, and piping system. 6.1.2.13.3 Electrical. Description of electrical services, including voltage; type and number of feeders; lighting systems, including lighting levels and audiovisual; security-fire alazms; and cable antenna television systems. 6.1.2.13.4 ~_ ...._..._ ,.«:... ~_,. a~_.. _ ,... ... :..~.... 6.1.2.L3.5 6.1.2.13.6 12-11 6.1.2.13.7 0 ---- ---- ------ ~---_----- `.. a a . '' .. '~ '' '-- -'-- -- N/ 4 6.1.2.14 .....t.'__ a__ . ~_.... ~_ , a~..,, i___«.._ ....a ... .....:.. ..c s-..., .ems e e 6.1.3 Project Sequencing. D/B shall determine and establish the sequence of construction, and if appropriate, identify separate bid packages to accomplish phased construction of the Project. 6.1.4 Critical Path. D/B shall prepaze a detailed Critical Path Method schedule for al] construction components of the Project ("Detailed Constmction Schedule") utilizing Microsoft Project software, showing all major milestones, bid dates for the major bid packages, commencement of construction, sequence of construction, completion of structural elements, and completion of the Norman Park Center HVAC System, all of which shall conform with the dates of Substantial Completion and Final Completion of Project. 6.1.5 Governmental Review. D/B shall review, as needed, [he CD's with the govemmental authorities havingjurisdiction over the Project. 6.1.6 Accounting System. D/B shall provide a master accounting system and matrix on Microsoft Excel that will be updated, expanded, and provided to the City monthly as the Project develops. 6.1.7 Project Management Plan. D/B shall develop and implement a Project Management Plan and Procedures including: 6.L7.1 Project status reports. 6.1.7.2 Coordination/interface with the City and its other consultants/contractors 6.1.7.3 Initial Design kickoff meeting to be held no later than five (5) working days from [he Effective Date of Agreement. 6.1.7.4 Biweekly Design and Constmction meetings 6.1.7.5 Interface and communications with other agencies 6.L7.6 Vendors, subcontractors management and daily reports. 6.1.7.7 Document control 6.1.7.8 Schedule and budget control 6.1.7.9 Quality assurance and quality control. D/B shall establish and maintain a quality control program with appropriate reviews and independent testing procedures to ensure compliance with the Construction Documents during the constmction phase. 6.6.10 Scheduling and cost control reports, which shall be provided monthly throughout the design phase. 6.1.8 Construction Drawings and Specifications. D/B shall prepare construction drawings and specifications suitable for obtaining City-approved permits and [o allow constmction. 6.1.9 City Approval. D/B shall submit Construction Documents and obtain City approval in writing of the Construction Documents at 5fty percent (50%), seventy percent (70%), and ninety percent (90%) completion. 6.1.9.1 Condition Precedent City approval of the Construction Documents is a condition precedent to authorization to proceed with subsequent work on the Project. 6.1.9.2 Notification, Modification, and Resubmittal. At 70% and 90% Completion, City will notify D/B in writing within the timeframes established in the Project Schedule following receipt of Construction Drawings of City approval, or of request for modifications. If modifications are requested, D/B shall modify and resubmit Construction Drawings for City approval. 12-12 6.1.9.3 D/B Support. D/B shall provide support to a City Constructability Review Team for the review of the Construction Documents at all stages of required submission. 6.1.10 Materials and Equipment Specifications. DB shall prepare technical materials and equipment specifications for pre-purchase. 6.1.11 Surveying and Testing. ° :L°' ^-,,__°'° "°-F°-m °-a ° °" ° _ _ ec..~nn 'i~$ 6.1.11.1 Greenbook 2003 Section 2-9 titled "Surveying" and City of Chula Vista's Horizontal and Vertical Control found on the Survey Control Network Map located on [he City's Internet via the following link: httn~//www chulavistaca aov/City Services/Development Services/Engineering/index.asp N/A 6.1.11.2 a.. m L "a ^ "a.' 6.1.1 1.3 6.1.]1.4 rl..r ... ..Lr .. FC....r .. s_A,~ vrtrortammcartc 6.1.11.5 .. ~L... .. C.... C ...1 .1....' ... T` '1 _L..t _ _ .... /~:r. .. _ '.. C..........ti ,..~T • °..l e.V to {.°...°I:«:«..... 6.1. ] L6 ,~ s..,..,.. .. ............... 6.1.12 SWPPP. 6.1.12 Alternatives. DB shall evaluate alternative structural and constmction approaches to ensure economical designs, which optimize constmctability, yet meet all codes, architectural concepts, schematic designs, and standazd specifications of the Project. 6.1.13 Permits. D/B shall obtain general building permit and all ancillary permits and licenses, including but not limited to, demolition permits, improvement permits and grading permits at 90°/ CD's. City is responsible for all permit costs, which will be reimbursed to the DB. 6.1.14 Updated Costs. DB shall provide updated construction cost estimates in conjunction with the submittals required in Section 6. L9 to support Value Engineering ("VE") and constructabilityrgviews. 6.1.15 Fina[Review and Approval ofP(ans and Specifications. D/B shall deliver to City complete Construction Documents, including Construction Drawings, Plans and Specifications for the design and construction of the Project. City agrees to review the Construction Documents and provide City's written comments to D/B within Thirty 30 Business Days of the date such Construction Documents are delivered to City in accordance with the notice provisions in Article XXIX. Approval shall not be unreasonabty withheld. If requested by City, D/B shall make changes to the Construction Documents. 12-13 ARTICLE VII. PHASE III.-CONSTRUCTION PHASE WORK AND SERVICES 7.1 Phase III. Work and Services. The D/B shall construct the Project in accordance with City-approved plans and specifications prepared by the D/B to meet or exceed all requirements of the City provided program, schematic design and the performance criteria. The D/B shall: 7.1.1 Bidding. DB shall prepare and submit to the City for review separate bid packages, such bid packages shall be organized in the manner that DB determines is appropriate ensure the efficient and cost effective construction of the Project. 7.1.1.1 Competitive Bidding. D/B shall competitively bid the respective bid packages for the construction of the Project. 7.1.1.2 7.1.1.3 Scheduling. D/B shall coordinate scheduling of bid packages, submittals. 7.1.1.4 Bid Results. D/B shall submit to the City a summary of bid results for each bid package. 7.1.1.5 Bid Protests. DB shall heaz and decide bid protests and shall develop and maintain bid protest procedures for that purpose. City shall be timely informed of all bid protests (prior to resolution) and the outcome of said protests. 7.1.1.6 Equal Opportunity Contracting/Nondiscrimination. D/B shall no[ discriminate on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age, or disability in the solicitation, selection, hiring or treatment of subcontractors, vendors, or suppliers. D/B shall provide equal opportunity for subconhactors to participate in suUcontracting opportunities. D/B understands and agrees that violation of this Subsection shall be considered a material breach of this Agreement and may result in contract termination, debarment, or other sanctions. The language of this Subsection shall be inserted in contracts between DB and any subcontractors, vendors, or suppliers. 7.1.1.7 Executing Contracts. DB shall be responsible for entering into subcontracts, in D/B's. own name, with the bidder who in DB's discretion and professional opinion best meets the monetary, time, and performance requirement of the Project. D/B shall be responsible for ensuring that these contracts fully comply with all applicable local, state and federal laws, same but not all of which are listed below. Zl.l.B Additive Alternatives. D/B shall require additive alternates for extended warranties in bid packages for roofing and HVAC systems. 7.1.2 Meerings. D/B shall conduct meetings identified below: 7.1.2. ] Preconstruction Meeting. D/B shall conduct a preconstmction meeting with its officers, agents and employees and City. The purpose of this meeting is to discuss: (i) the Agreement conditions, (ii) Scope of Work clarifications, and (iii) City policies, inspection requirements, and procedures. 7.1.2.1.1 Attendance. D/B shall ensure [hat the preconsVUCtion meeting is attended by D/B's construction contractor, project manager, all D/B's major subconhactors, the City's Project Manager, and all other persons necessary as determined by D/B or City. 7.1.2.2 Progess Meetings. D/B shall conduct weekly progress meetings with the City and appropriate design and construction members. 7.1.2.3 Contractor Meetings. D/B shall conduct cotractor meetings, as necessary, to provide technical input. 7.1.2.3.1 D/B shall provide interpretation of technical specifications and drawings. 10 12-14 7.1.2.4 Rescheduling. Progress Meetings may be rescheduled if rescheduled meeting times are convenient for all necessary parties, and D/B has given no less than five (5) Calendar Days prior written notice of the rescheduled meeting. 7. L.2.5 Minutes. D/B shall take cortesponding meeting minutes and distribute copies to all attendees. 7.1.2.6 Reporting. D/B shall monitor and report to the City on actual performance compared to the Project Schedule, provide updated As-Builts, and verify that the latest changes to the Project, if any, have been made. 7.1.3 Construction Management. During construction of the Project, D/B shall perform and be responsible for construction management, supervision, and administration services, including, but not limited to, tracking and reporting all expenses and all aspects of the construction and coordinating all constmction means, methods, techniques, sequences and procedures to ensure the efficient and orderly sequence of the construction of the Project 7.1.3.1 Resident Management. D/B shall provide resident management and contract administration, including specialists necessary for the functional, safe, on-budget and on-schedule completion of the Project, starting with the issuance of a Notice to Proceed, upon receipt of final construction drawings, from the City and extending through issuance of Notice of Completion and Acceptance. City staff will perform inspections to verify compliance with the plans, specifications and contract documents. The D/B resident staff shall ensure construction compliance with applicable local, state, and federal codes, building and environmental pertni[ requirements, construction mitigation documents and enforcement of the Contract Documents. 7.1.3.2 Records Management. D/B shall implement and maintain an internal records management and document control system as required to support project operations. The D/B shall provide records management and document control information in a manner consistent with the City's reporting system. 7.1.3.3 Cash Flow. D/B shall develop aproject-specific Plan for defining, tracking and reporting cash flow activity requirements and submit such plan to the City for review and approval prior to implementation. 7.1.3.4 Reporting. D/B shall keep City infom~ed of the progress and quality of the design and construction of the Project. 7.1.3.5 Docmnents On-Site. D/B shall maintain a complete and up-to-date se[ of Construction Documents including daily reports in [he Projects field office ai all times during construction that reflect all changes and modifications. 7.1.3 Site Safety, Security, and Compliance. D/B shall be responsible for site safety, security, and compliance with all related laws and regulations. 7.1.3.1 Persons. D/B shall be fully responsible for the safety and security of its officers, agents, and employees, City's officers, agents, and employees, and third parties authorized by D/B to access the Project site. 7.1.3.2 Environmental. D/B shall administer and enforce the Environmental Mitigation Monitoring and Reporting Plan for the Project, if any. In addition, D/B shall report environmental issues to the City in a manner consistent with the City's reporting system. DB shall be responsible for the environmental consequences of the Project construction and shall comply with a!I related laws and regulations, including the Clean Air Act of 1970, the Clean Water Act, Executive Order number 11738, and the Stormwater Management and Dischazge Control Ordinance No. 0-17988 and any and all Best Management Practice guidelines and pollution elimination requirements as maybe established by the Enforcement Ofticial. 7.1.3.3 Risk of Loss. DB is responsible for the Project, project site, materials, equipment, and all other incidentals until the Project has been Accepted by the City and shall bear any costs or expenses associated with the loss thereof or damage thereto, including by theft, fire, or other casualties. 11 12-15 7.1.4 Public Right-of-Wny. All work, including, materials testing, special testing, and surveying to be conducted in the Public right-of-way shall be coordinated with the City. 7.1.4.1 ..~~~.. .. T.... a:_.. T/D ..L.. .-... 1--.._A ....,.-.1'-...,,. ..:~1. 1.: ~. ~.. I.... e.. ..... ~...:.. •....~.. :r.:-. L.. A Ll'....:..L~ ..C .. ... ..._._d ..... ...._L.. a .....le~ed 6., ("'~. i~ TRnin: nl Te..~'.... ....:........ .......~ ..p..- .,- .. ~ ..~ _-i..._ . r .o -t _ ~ y _ _. .o i .A: /~A~ 7.1.4.2 Surveying. DB shall pay for and coordinate with City's Engineering Department all surveying required within the Public right-of-way. 7.1.4.3 Follow all Laws, Rules, and Regulations. D/B agrees to follow all City standards and regulations while working in the Public right of way, including but not limited to, utilizing proper traffic control and obtaining necessary permits. 7.L5 , 7.1.6 , d-resideHEes- PiFA 7.1.7 Inspections. DB shall coordinate any and all required inspections, including special inspections, in such a manner that the progress of constmction is not affected or impacted. The D/B shall provide surveying, and other contracted services as required to complete project construction inspection and testing tasks. The City will provide inspection, special inspection, re-inspection services, and periodic building inspections. 7.1.8 Permits. The Parties acknowledge that the constmction work to be performed on the Project by D/B in compliance with this Agreement is subject [o the prior issuance of building, land development, and/or public improvement perrnits paid for and obtained by D/B. In the event that City, or any other governmental agency, unreasonably refuses to issue [he permit(s) necessary to authorize the work to be performed or if the permit(s) are unreasonably canceled or suspended, then D/B is relieved from its obligation to construct those improvements covered by the denial of said permit(s). City shall, under such circumstances, pay D/B the reasonable costs, not to exceed [he amounts identified in this Agreement, for all work completed up to the date of denial of said permit(s). All plans, specifications and improvements completed to the date of the denial, suspension or cancellation of said permit(s) shall become the property of City upon DB's receipt of payment in full as described above. 7.1.9 Maintenance. D/B shall ensure Project is maintained in a clean, neat, sanitary and safe condition free from accumulation of waste materials or rubbish. Until Acceptance of the Project, D/B shall be responsible for on-going site maintenance, including any erosion prevention measures. Prior to Final Completion, DB shalt cause to be removed from and about the Project all tools, conshuction equipment, machinery, surplus materials, waste materials and rubbish and deliver time site to the City in a clean, neat, sanitazy and safe condition. 7.1.8.1 Waste Removal. Please be advised that Chula Vista Municipal Code 8.24.070 provides for an exclusive franchise for the removal and conveyance of all solid waste for Imire (including recyclables) within City limits. The exclusive franchise agreement covers any hauling activity that requires the generator or their agent to pay a fee for any service connected with removing or conveying waste. The City's franchise hauler is Allied (formerly Pacific) Waste Services and may be reached at (619) 421-9400. 7.1.10 Reguest for Information ("RFI'). Parties acknowledge that the RFI process is solely for correspondence between D/B and its agents; however, DB shall submit copies of each RFI to City a[ the within twenty-four (24) hours of receipt. D/B shall issue responses to RFIs. Unless D/B specifically requests a City response, City will not respond to RFIs. 7.1.11 Review and Approval. D/B shall provide timely review and approve shop drawirmgs, samples of construction materials, product data, schedule submittals, and other submittals for compliance with the constmction Documents. DB shall keep the City advised of all such matters being reviewed and approved by DB and forward copies of such documents [o City for review. 12 12-16 7.1.12 Royalties and Other Fees. DB shall pay royalties and license fees, if applicable. D/B shall defend suits or claims for infringement of patent rights and shall defend and hold City and City's agents harmless from loss on account thereof 7.1.13 Provide City with a Detailed Construction Schedule (DCS) on an disc (CD) within fourteen (14) working days after receiving Notice to Proceed with Phase IV, provide updated versions of DCS on a monthly basis, and provide immediate notice of any impact on critical path items. ARTICLE VIII. SUBCONTRACTING 8.1 Subcontractine. 8.1.1 Design Services. D/B shall perform or obtain the prior written consent of the City to subcontract all design services for the Project utilizing qualified, licensed and sufficiently experienced architects, engineers and other professionals (hereinjoinfly "Design Consultants") as identified in Exhibit A. D/B shall no[ be permitted [o substitute any Design Consultant unless authorized by City. 8.1.2 Construction Services. D/B shall perform all constmction on the Project utilizing subcontractors appropriately licensed by the California Contractors State License Boazd or other required agency. ARTICLE IX. PROJECT SCHEDULE 9.1 Project Schedule. D/B shall perform and complete the Services and Work under this Agreement according to the timeframes set forth in Che Project Schedule, attached hereto as Exhibit "A" of a subsequently revised Project Schedule in such a manner that the GMP or Contract Time of the Project shall not be exceeded and that is consistent with the Standard of Care identified in Section 4.1. 9.1.1 Project Schedule. D/B has submitted, as part of its proposal, a Project Schedule based on its estimate of the time necessary [o complete the Project. 9.1.2 D/B's Obligation. Subsequent to the effective date of this Agreement, D/B shall provide, coordinate, revise, and maintain the Project Schedule for all phases of the Project. 9.1.2.1 During the Project initiation and design phases, the D/B shall submit an updated Project Schedule monthly to the City far approval. 9.1.2.2 During Construction, D/B shall submit an updated Project Schedule mmtthly to the City and shall include: 9.1.2.2.1 Forecast Data with the intended plan for [he remainder of the contract duration. 9.1.2.2.2 Actual Data with indications of when and howmuch Work and/or Services was performed (% complete). 9.1.2.2.3 Logic changes or other changes required to maintain the Project Schedule. 9.1.3 Detai[ and Format. The Project Schedule shall be substantially similar in detail and form to Exhibit [INSERT], or it shall be in the form subsequently agreed to by the Parties. 9.1.4 Submittal. Projeot Schedule shall be submitted to City on a computer disk in a version of Microsoft Project. 9.2 Project Completion. D/B acknowledges that all work on the Project under this Agreement will be complete and ready for its intended use by the Project Comple[imr Date, August 1, 2012. 9.3 Chanties in Project Schedule. Changes in Project Schedule, whether to logic, definition, or relationship must be approved by the City in writing as a Change Order pursuant to the manner identified in Article XIII. ARTICLE X. DELAY IN PERFORMANCE 10.1 Time of Essence. Time is of the essence for [his Agreement and each provision of this Agreemem, including the Project Schedule, Start Date, and Project Completion Date contained herein, unless oiherwisespecified in 13 12-17 this Agreement. D/B shall perform all Services and Work as expeditiously as is consistent with standzrd of care identified in Section 4.1. 10.2 Notification of Delav. If the D/B anticipates or has reason to believe that the performance of Services and/or Work under this Agreement will be delayed, the D/B shall immediately notify the City. A written notice of the delay must be delivered to the City within five (5) Calendar Days of [he initial notification, unless the City allows an additional period of time to ascertain more accurate data in support of the request. The written notice shall include an explanation of the cause of the delay, a reasonable estimate of the length of the delay, and all supporting data. The DB shall include a written statement that the time adjustment requested is the entire time adjustment to which DB has reason to believe i[ is entitled as a result of the cause of the delay. An increase in time for completion does not necessarily mean that D/B is entitled to an increase in GMP. If in the opinion of the City, the delay affects a material pazt of the Project, the City may exercise its rights under Article XXVII of [his Agreement or any other remedy available in law or equity. 10.3 De1av If delays in the performance of Services or Work required under this Agreement are caused by unforeseen events beyond the control of the Parties, such delay may entitle the D/B to a reasonable extension of time or to additional compensation. Any such extension of time must be approved in writing by the City. The following conditions mayjustify such a delay: war; changes in law or government regulation; labor disputes; strikes; fires, floods, adverse weather or other similaz condition of [he elements necessitating cessation of the DB's work; inability to obtain materials, equipment, or labor; required additional Professional Services; or other specific reasons agreed to between the City and the D/B; provided, however, that (i) this provision shall not apply to, and the DB shall not be entitled to an extension of time, additional costs, or expenses for, a delay caused by the acts or omissions of the D/B, its consultants, contractors, employees, or other agents; and (ii) a delay caused by the inability to obtain materials, equipment, or labor shall not entitle the D/B to an extension of time unless the D/B furnishes the City, in a timely manner, documentary proof satisfactory to City of the D/B's inability to obtain materials, equipment, or labor. 10.3.1 Caused by Cil)~. If D/B reasonably believes that any action, inaction, decision or direction by City or agent for the City will likely result in the GMP or Contract Time being exceeded or the Project being completed late, D/B will notify City at Project Team meeting and in writing within five (S) calendar days of discovering such action, inaction, decision, or direction. Included in such notice will be an estimate of the cost and time impact resulting from such action, inaction, decision or direction. D/B shall provide complete and accurate pricing within ten (10) calendar days of said discovery. 10.4 Costs of Delav/Liauida[ed Damages. City and D/B recognize that time is of the essence in this Agreement and that City will suffer financial loss if the Project is not completed by the Substantial Completion Date identified in the Project Schedule or any extensions subsequently approved. As the exact amount of financial loss cannot be accurately forecasted, the Parties have used their best efforts to establish an estimate of such loss. In doing so, the Parties have examined all of the circumstances and factors associated with a delay and have determined an amount that is fair and reasonable as liquidated damages. City and D/B agree [hat D/B shall pay as liquidated damages (but not as a penalty) for each calendaz day of delay beyond [he time specified for Substantial Completion of the Project, the following amounts which D/B expressly agrees are "not unreasonable under the circumstances" as defined in California Civil Code § 1671(6): $100 for each calendar day. Liquidated Damages shall not be assessed afrer the date on which Substantial Completion is achieved. In lieu of paying damages to the City, [he Parties agree dta[ City may choose to reduce the GMP by [he amount of the liquidated damages. ARTICLE XI. PROJECT COSTS ] 1.1 Estimated Cost. The Estimated Cost of Project, according to the RFP is $ 195,673.00 . The City's obligation under this Agreement shall not exceed the Estimated Cost; however, once a GMP is determined and approved, the GMP shall become the not to exceed amount of the City's obligation. GMP is subject to change pursuant to methods established is this Agreement. l ].l.l Cast Schedule. The EMP has been allocated among each activity or portion of the Project ("itemized Cost(s)"). The Itemized Costs aze included in Exhibit "A" attached. The cos[ incurred by the D/B for a specific activity or portion of the Project shall not exceed the associated Itemized Cost. 14 12-18 11.2 GMP. At 90"/o complete construction documents, D/B shall establish a GMP and submit such GMP to the City for approval. 10.2.1 Not to Exceed Amount. The GMP shall not exceed $ 195,673.00. Any costs incurred by DB in excess of said GMP shall be the sole responsibility of the D/B, unless a Change Order is approved by the City pursuant to Article XIII of this Agreement. 11.2.1. ] Included Costs. In calculating the GMP, DB shall include costs of the following: 11.2.1.1.1 All Design Consultants, including but not limited to architectural, structural, civil, mechanical, electrical, communications, graphics and art consultants, landscape architects, and acoustical, audio visual, lighting, and security consultants. 11.2.1.1.2 Estimating, value engineering and construction management. 11.2.1.1.3 Construction supervision and project management personnel, including but not limited [o superintendents, Project managers, Proj ec[ secretaries, Project engineers, Project accountants, and all other D/B personnel wherever located. 11.2.1.1.4 Al] on-site and off-site equipment, supplies and facilities, including but not limited to, computers, estimating, dictating, communication and accounting equipment, office space, trailers, field equipment and storage facilities. 11.2.1.1.4.1 Option to Purchase. In no case shall the cumulative monthly rental chazges to the Project for equipment and Small Tools used by the D/B exceed 90% of the fair market value of any one piece of equipment or Small Tools. At City's option, the full price for equipment or Small Tools maybe paid, and City may take possession upon completion of the Work. 11.2.1.1.5 All Hard Construction Costs. 17.2.1.1.6 City held Contingency Fund, which shall not exceed $ 9,318.00. l 1.2.1.1.7 Reimbursable Costs. Example: Utility fees. 11.2.1.1.8 D/B Fixed Fee for the complete design and construction of the entire Project as specified in the 90% CD's. 11.2.1.1.9 No more than $50,000.00 for Design Services and General Conditions. l 1.2.1.1.10 All home-office and field overhead costs of any type including document control and retention; (1.2.1.1.11 All business license costs; 11.2.1.1.12 All profit D/B intends to earn under this Agreement. 11.2.1.1.13 All direct and incidental costs incurred by DB, except for those specifically identi5ed under the General Conditions section. 11.2.1.1.14 n.~..~~zwru 11.2.1.2 Full Compensation. Unless otherwise expressly provided in this Agreement, GMP shall be the maximum amount of compensation to due to DB for all permitted costs of any type incurred by D/B in performing all services and obligations under this Agreement. 11.2.2 Itemization. D/B shall provide City with au itemization of the GMP that reconciles the GMP with the itemized costs. The itemization shall include the following: 11.2.1.1 D/B Fixed Fees. $ 5,000.00 for the term of the project. 11.2.1.2 Hard Construction Costs. Hard Construction Costs broken down into categories for each of the major trades for the Project, which will include Labor, material expenses, equipment costs, and a reasonable D/B Contingency Fund. 15 12-19 11.2.1.3 AFFA 11.2.3 Alternate Bid Items. D/B shall prepare, with the cooperation of the City, alternate bid items to assure that the cost of the Project will not exceed the GMP. 11.2.4 Adjustments [o GMP Based on Approved Change Orders. GMP may be changed, increased or decreased, based on Change Orders approved pursuant to Article XIII. 11.2.5 Adjustments Based on Other Cost Increases. GMP maybe increased due to: (i) acts of God, acts of any governmental authority, the elements, war, litigation, shortages of material, labor strikes, inflation, later commonly accepted or adopted higher standards and specifications of construction, emtcealed or unknown conditions encountered in the completion of the Project, or other cause beyond D/B's control, (ii) actual bids received being greater than estimated, or (iii) other factors not the result of unreasonable conduct by DB. The GMP may be increased by the amount of such increases; however, if GMP as proposed to be increased shall exceed the Estimated Costs, such change to GMP shall be subject to approval by City Council. 11.3 Dutv [o Advance Costs. D/B shall advance all costs for Project subject to Reimbursement in the manner described in Article XVI. 11.4 Use of ProlecY Contingencv. Project Contingency shall not be used without prior, written City approval and shall not be used for: (i) work required due to D/B's, its officers', agents' or employees' failure to perform Work or Services according to the terms of this Agreement, in compliance with the Construction Documents, and/or Law; or (ii) uninsured losses resulting from [he negligence of D/B, its officers, agents, or employees. 11.5 Notification of Iucreased Costs. If, aC any time, the D/B anticipates [hat the amount expended on the Project will exceed the Estimated Cost or the GMP, when established, the D/B shall immediately, not more than ten (10) Working Days from becoming aware of the potential increase, notify flte City in writing. This written notification shall include an itemized cost estimate and a list of recommended revisions that the D/B believes will bring the Project cost to within the Estimated Cost or GMP. Following the delivery of the Notice, D/B shall assist the City in reviewing the itemized cos[ breakdown and adjusting the Scope of W ork and establishing a revised Project, the cost of which will not exceed the Estimated Cos[ or GMP, once establish. 1 L5.1 City Action. Following consultation with the D/B, the City may choose to: (i) approve an increase in the amount authorized for the Project; (ii) delineate a project, which may be constructed for the budget amount; (iii) any combination of (i) and (ii); or [emtinate the Project subject [o the termination provisions in Article XXViI. ARTICLE XII. PRODUCTS 12.1 Submittals. Prior to the bidding process, DB shall submit for City approval a list of products intended for use in the Project. Upon D/B's completion of plans and specifications, City will review and approve products specified therein. D/B shall provide City a copy of each submittal for City approval throughout the duration of construction within twenty (20) Calendar Days of DB's receipt of submittal. Approval is general approval only and in no way relieves DB of its sole responsibilities under [his Agreement or any and all laws, codes, permits or regulations. 12.2 Substitutions. D/B shall submit all requests for product subs[imtions to City in writing within thirty (30) Calendar Days after the date of award of the construction contract. After expiration of the thirty (30) Calendar Days, City will allow substitution only when a product becomes unavailable due to no fault of D/B's contractor. City shall review substitution requests within thirty (30) Calendar Days of submission of such requests. D/B agrees that City requires ConsultanPs input and as such D/B shall coordinate a five (5) Working Day review by its Consultant. 12.2.1 Substantiate Request. D/B shall include with each substitution request complete data substantiating that the proposed substitution conforms to requirements of the Contract Documents. 12.2.2 D/B Representations. By submitting a substitution request, DB is representing to City all of the following: (i) D/B has investigated proposed product and determined that in all respect the proposed product meets or exceeds the specified product; (ii) D/B is providing the same warranty for the proposed product as was available for the specified product; (iii) DB shall coordinate installation and 16 12-20 make any other necessary modifications which maybe required for work to be complete in all respects; and (iv) D/B shall waive any claims for additional costs related to dre substituted product, utrless the specified product is not commercially available. 12.2.3 Separate Written Reguest. Ciry will no[ consider either substimtions that are implied in the product data submittal without a separate written request or substitutions that will require substantial revision of construction contract documents. 12.3 Samples• 12.3.1 Postage. Samples shall be sent to D/B's office, carriage prepaid. 12.3.2 Review. D/B shall furnish to City for review, prior to purchasing, fabricating, applying or installing, (2) two samples (other than field samples) of each required material with the required finish. 123.2.1 Where applicable, all samples shall be 8" x 10" in size and shall be limited in thickness to a minimum consistent with sample analysis. In lieu thereof, the actual full-size item shall be submitted. ]2.3.2.2 D/B shalt assign a submittal number. D/B shall include with each submission a list of all samples sent, a statement as to the usage of each sample and its location in the Project, the name of the manufacturer, trade name, style, model, and any other necessary identifying information. 12.3.2.3 All materials, finishes, and workmanship in [he complete building shall be equal in every respect to that of the reviewed sample. 12.3.2.4 City will return one submitted sample upon completion of City review. 12.3.2.5 D/B's, or D/B's agent's, field samples shall be prepared at the site. Affected finish work shall no[ commence until D/B or its agents have been given a written review of [he field samples. 12.3.3 Not a Release ojLiabi[ity. City's review of samples in no way relieves D/B of D/B's responsibility for construction of Project in full compliance with al] Contract Documents. 12.4 Observe Testing. When appropriate, D/B shall witness testing and review materials and equipment testing results and provide comments regarding conformance with specification requirements. ARTICLE XIII. CHANGE ORDERS 13.1 When Renuired. Change Orders shall be required in the following instances: 13.1.1 GMP. Any adjustment in GMP. 13.1.2 Contract Zime. Any adjustment in Contract Time of Completion Date. 13.1.3 Use of Contingency Fund. At any time DB seeks to use the Contingency Fund, irrespective of impact on the GMP or Contract Time. 13.1.4 City Requests. The City directs D/B [o perform Additional Services. 13.1.5 Other. Any other instance for which this Agreement expresses that a Change Order shall be used. 13.2 Process for Approval of Change Orders. Within five (5) Calendar Days of any event that gives rise to the need for a Change Order, the D/B shall provide the City with written notice of the need for the same. The Change Order must indicate whether the change will affect, in any way, by increasing or decreasing, the GMP, Project Schedule, or project quality established during the design and submittal review process. In addition, it shall be accompanied by a detailed and complete estimate of cost impact associated with the Change Order, including all appropriate direct and indirect costs and credits. All such costs and credits shall be accurately categorized into DB Fixed Fee, Reimbursable Costs or Hazd Construction Costs. DB shall also provide Ci[y with a realistic estimate of the impact, if any, the Change Order will have on the Contract Time. 13.2.1 Project Manager Approval. If the Change Order request does not result in an increase in the Estimated Cost, [he City's Project Manager shall either approve or reject the Change Order in writing within ten 17 12-21 (10) Working Days of receiving D/B's written notice, provided D/B has submitted complete docutnentation substantiating the need for such Change Order. If City fails to respond to D/B's written notice within the ten (]0) Working Days, [he Change Order request shall be deemed denied. 13.2.2 City Counci[Approval. For Change Orders not subject to section 12.2.1, City Council approval is required. The City Council may either approve, reject, or approve in part such Change Orders. Council Approval shall not be subject to the ten (10) Working Day response time provided for in section 12.3.1. 13.3 Written Aanroval of Change Orders. D/B shall not proceed on work requested under a Change Order, absent written approval from the appropriate authority. Any Services or Work, which require t he approval of a Change Order, perform by D/B prior to approval shall not be reimbursed. 13.4 Failure to Acree on Cost of Chance Order or Time. In the event there is any disagreement or dispute between [he. Parties as to whether the D/B is entitled [o a Change Order, the amount of the Change Order or any increase in ConVact Time requested through the Chu~ge Order, the dispute shall be resolved by the Director of Public Services. If the determination of the Director of Public Works is challenged, such challenge shall be address in the manner ideutified in Section 29.17. D/B shall not have the right to stop or delay in the prosecution of any services or work, including services or work that is [he subject of the Change Order (if directed by the City), pending the determination of the Director of Public Services or, if applicable, final resolution. Instead, D/B shall continue diligently prosecuting all such services and work. 13.4 Full Compensation. Payment to D/B for Change Orders shall provide full compensation for all equipment, materials, labor, field and home office overhead, mark-ups, and profit necessary to complete the work. By executing a Change Order, [he D/B or D/B's representative acknowledges that ^o additimtal compensation or claims fot items of work listed in dte Change Order will be allowed. 13.5 Errors and Omissions. DB shall no[ be reimbursed for any costs or expenses of a Change Order resulting from a design error or omission, D/B's negligence, or dte negligence of any of D/B's agents or subagents. D/B shall be reimbursed for any costs or expenses of a Change Order resulting from a design error or omission that is [he direct result of a CiTy request for such design or omission. The City reserves the right to seek reimbursements for any funds used due [o errors or omissions of the Design Consultants, D/B's negligence, or the negligence of any of D/B's agents, or subcontractors. 13.6 Ciri Refusal to Aoarove Change Order. D/B shall not have the right to terminate this Agreement for the City's refusal to approve a Change Order pursuant to Sections 12.2.1 or and 12.2.3 ARTICLE XIV. EXTRA WORK 14.1 Ciri Authority to Order Extra Work. City may at any time prior to Project Completion order Extra Work on the Project. The smn of all Extra Work ordered shall not exceed 5ve percent (5%) of the Estimated Cost at the time of the Bid Award, without invalidating this Agreement and without notice [o any surety. 14.1.1 fteguests in Writing. All requests for Extra Work shall be in writing, shall be treated as, and are subject to the same requirements as Change Orders. D/B shall no[ be responsible for failure [o perform Extra Work, which was requested in a manner inconsistent with this section. 14.2 Bonds Required for Extra Work. D/B's and its agents' bonds, required under Article XXN, shall cover any Extra Work provided that the Extra Work is paid for by the Project Budget t 4.3 Reimbursement for Extra Work. Work performed by D/B as Extra Work is reimbursable in the same manner described in Article XVL The Project contingency as described in Article X, will be used first to cover the costs of Extra Work. 14.4 Markup. D/B will be paid a reasonable allowance for overhead and profit for Extra Work. The allowance shall not exceed five percent (5%) of the approved costs for the Extra Work. ARTICLE XV. CHANGED CONDITIONS 15.1 Chanced Conditions. Changed Conditions shall be addressed under the Greenbook section 3-4; however, Parties acknowledge that even if Changed Conditions are found to be present, the Project shall not exceed the GMP without express City Council approval of an increase to the Project Budget. Absent such express 18 12-22 approval of additional funds, D/B shall provide City with value engineering and Parties will return Project to within the total Project cost. ARTICLE XVI. PAYMENT TERMS 16.1 Pavment 16. L I Funds.jor Payment. D/B shall only be entitled to payment for Services and Work perfornred under this Agreement from the funds appropriated for the Project. 16.1.3 Maximum Payment. D/B shall be entitled [o payment in an amount not to exceed the GMP or subsequently approved increase in GMP. D/B is not entitled to payment for unapproved expenses, unapproved increases in costs, or other increases caused by D/B negligence, omissions, or failure to seek approval for additional or increased costs. 16.1.5 Application jnr Payment . D/B shall submit to City a certificate and application for payment on or before the 5`~ day of each calendar month ("Payment Application"). The Payment Application shall be based upon the percentage of completion of the Schedule of Values plus any Reimburseable Costs, less any payments previously made by the City, incurred or advanced for the Project for which D/B was has not previously received payment. The Payment Application must include all relevant documents in accordance with Section 15.1.6. If the City determines that al] relevant documents have not been submitted, City shall request that D/B provide additional documentation. D/B shall provide additional documentation within ten (] 0) Working Days of request. City is not obligated to make payment to D/B until City has received all relevant documentation to support Reimbursement Request. After all appropriate cost documentation has been received and City approves the Payment Application, Ci[y shall make payment to D/B of al] uncontested charges within sixty (60) Calendar Days of receipt of a complete Payment Application. 16.1.5.1 Withholding. From each payment, ten percent (10"/0) will be deducted and retained by the City, and the remainder will be paid in accordance with the terms and conditions of this Agreement. No payment made [o D/B or its sureties will constitute a waiver of any rights the City has under this Agreement This section is not intended to limit any rights the City may have under the Performance or Payment Bond. In lieu of withholding retention under this Agreement, at the election of D/B, City will deposit retention amounts into escrow and/or the substitution of securities for money as provided in California Public Contract Code Section 22300. 16.1.5.2 Payment of W ithholding. The City will pay the D/B for the amounts withheld forty-five (45) Calendar Days from recordation of the Notice of Completion, providing [hat no Stop Notices or Mechanic's Liens have been Sled since the recordation of the Notice of Cotnple[ion. 16. L5.2.1 Where a Stop Notice or Mechanic's Lien has been filed following the recordation of the Notice of Completion, the amount in controversy shall continue to be withheld until a fully executed release of Stop Notice or Mechanic's Lien has been filed and a conformed copy delivered to the City. 16.1.5.3 Contested Charges. In the event City contests any charges contained in the Payment Application, the dispute shall be resolved in the manner identified in Section 21.6. D/B shad not have the right to stop or delay in the prosecution or any Services of Work, pending the determination of the Director of Public Works or, if applicable, final resolution. Instead D/B shall continue to diligently prosecute all Work and Services. During the time of the dispute, the City shall withhold the amount of the charge in question. 16.1.5.3 Cutoff for Submission of Reimbursement Requests. D/B shalt submit all Reimbursement Requests within six (6) months of the date on which Final Completion occurs and City accepts the Project. Any Reimbursement Request submitted after the Cutoff Date shall not be reviewed or included in Reimbursable Cost. 16.1.6 Perification of Reimbursement Request. D/B shall supply documentation to support the Reimbursement Request including, but not limited to, proof that all mechanic liens have been released, copies of invoices received and copies of cancelled checks, substihrte checks, or image replacement 19 12-23 documents showing that payment has been made in connection with the Reimbursement Request in the following manner: 16.7.6.1 D/B shall submit two (2) copies of a Reimbursement Request (cover letter, invoice, and documentation) to the City. 16.1.6.2 After review and approval, the City shall prepare a memorandum to the Financing Department that the invoice is appropriate to pay. The memorandum shall indicate any costs to be disallowed and the reason for the disallowance. 16.1.6.4 Prior to the approval of the Reimbursement Request, City has the right to verify whether or not the materials and work for which reimbursement is being requested have been installed and performed as represented in the Reimbursement Request. 16.1.8 Non-reimbursable Costs. Except to the extent that City expressly assumes the risk of loss under this Agreement, City shall exclude from the amounts payable to DB the fait value, as determined by City, of property that is destroyed, lost, sioleq or damaged rendering it undeliverable or unusable for City. In addition, D/B is not entitled to reimbursement for any cost or expenditure that has not been approved by the City in the manner required by this Agreement or the City Charter and rules, regulations, or laws promulgated there-under. ARTICLE XV It. INSPECTION 17.1 Inspection Team. The Project shall be inspected by a team cmnposed of, at a minimum, the following: i.) representatives of the City, ii.) representative from D/B's Design Team, iii.) the Construction Manager, attd iv.Representative, (iii) D/B's Consultant(s), and (e) the D/B's construction superintendent [Inspection Team) 17.2 Inspection States. The Project shall be inspected by the Inspection Team at minimum during the following stages: (i) when required by code, (ii J as directed by the "Special Inspections" provision, (iii) bi-weekly. 17.3 Access. City, its consultants, subcontractors, independent testing laboratories as well as other govemnren[al agencies with jurisdictional interests will have access at reasonable times with the project managers approval for this observation, inspecting and testing. D/B shall provide thetn proper and safe conditions for such access and advise them of D/B's safety procedures and programs so that they may comply. 17.4 Additional Inspections. City will make, or have made, such inspections and tests, as the City deems necessary [o see that [he Work is being accomplished in accordance with the requirements of the Construction. 17.5 Notice. D/B shall give City timely notice of readiness of the Work for all required on and off-site inspections, tests, or approvals and shall cooperate with inspection and testing personnel to facilitate required inspections or tests. DB shall give at least 24 hours notice for on-site inspection and five (5) days notice for off-site inspection. 17.6 Costs of Inspection. Unless otherwise specified, the cost of inspection and testing will be borne by the City. Any expenses associated with re-inspection shall be borne by DB. I7.7 Concealint Work. Prior to concealing work, D/B shall obtain approval of work from the City and as required by all State Building Codes. City has the right to stop or suspend Work activities which will conceal or cover up DB Work product which is to be inspected or tested, or which will interfere with [he inspection or testing activities, for a reasonable time and D/B will have no right to additional cost or time it may incur as a result of the Work stoppage. 17.8 Defective Work. In the event such inspections or tests reveal non-compliance with the requirements of the Construction Documents or defective work, the provisions and process of Article XXII shall apply. 17.9 Not a Waiver of Oblitations. Neithez observations by the City nor inspections, tests, or approvals by City or others shall relieve D/B from D/B's obligations to perform the Work in accordance with the Construction Documents. This approval is general approval only and in no way relieves D/B of its sole responsibilities under this Agreement or any and all laws, codes, permits or regulations. 20 12-24 ARTICLE XVIII. PROJECT COMPLETION. 18.1 Notice to City. When D/B determines that the Project is complete, D/B shall notify the City in writing of the Projects status within seven (7) Calendar Days of the D/B's determination. The notice shall certify to City that the Project has been completed in accordance with [he Construction Documents, all applicable building codes and regulations, all permits, licenses, and certificates of inspection, use and occupancy, and ordinances relating to the Project 18.2 Walk-Through Inspection. A preliminary Walk-Through Inspection shall be conducted by City within ten (10) Working Days following DB's notice to City of completion ("Walk-Through Inspection"). The Walk- Through Inspection will be conducted by the Inspection Team identified in P.rticle XVII, Section 16.1. 18.2.1 Punch List. A Punch List, if necessary, shall be prepared by City during [he Walk-Through Inspection. The Punch List shall be presented to D/B by dle RE within three (3) Working Days of [he Walk- Shrough Inspection. D/B shall correct the items listed on the Punch List within thirty (30) Calendar Days of receipt of the punch list and prior to the Final Inspection. 18.2.2 Fnilure to Identifi~ Items. As to any items not included on the Punch Gist or later discovered, nothing in this section is intended to limit D/B's obligations under this Agreement and City will maintain all remedies available under this Agreement and the law. 18.3 Equipment Demonstration. Prior to final inspection, D/B shall demonstrate to City the operation of each system in the Project, and instruct City personnel in operation, adjustment and maintenance of equipment and systems, using the operation and maintenance data. 18.3.1 Startup. The DB sbal] supervise, manage, and coordinate all project startup and testing activities for mechanical systems within the provisions of the project Contract Documents. 18.3.2 Reporting. The D/B shall report progress of project staztup and testing to the City in a manner consistent with the City's reporting system. 18.4 Final Inspection. Provided D/B has corrected the Punch List items and notified the City of the correction ("Notice of Correction"), the Final Inspection for the Project shall be scheduled and conducted within ninety (90) Calendaz Days of the Notice of Correction. ARTICLE XIX. PROJECT ACCEPTANCE AND FINAL COMPLETION 19.1 Acceptance. Upon approval by the Inspection Team during the Final Inspection that Project improvements are complete and that work required on the Punch List has been finished, City shall accept the Project ("Acceptance"). Upon Acceptance, D/B shall do all of the following: 19.1.1 Notice o(Completion. D/B shall execute and file a Notice of Completion with the County Recorder of San Diego County and shall provide the RE with a conformed copy of the recorded Notice of Completion. 19.1.2 Lien and Material Releases. D/B shall cause all contractors and subcontractors to provide lien and material releases as to the Project and provide copies of such lien and material releases to the City or, upon approval of City which shall not be unreasonably withheld, provide bonds in lieu of lien and material releases in a form reasonably acceptable to City for all such work. ] 9.2 Final Completion. Final Completion of [he Project shall be deemed to occur on the last date of the following events: (i) recordation of the Notice of Completion with a conformed copy to City, (ii) submission of all documents required to be supplied by DB to City pursuant to this Agreement, including As-Built Drawings, warranties, and operating and maintenance manuals; or issuance of a final certificate of occupancy. 19.2.1 As-Builts. City will evaluate the submitted As-Builts for accuracy and completeness and may return comments. DB shall meet with City until all issues are resolved. Upon issue resolution, in accordance with disputed work procedures in Section 21.6, DB shall submit a mylar set and three (3) final blueline sets of As-Builts stamped by the architect/engineer of record as required by law. 19.2 No Waiver. D/B's obligation to perform and complete the work in accordance with the Contract Documents shall be absolute. Neither recommendation of any progress payment or acceptance of work, nor any payment 21 12-25 by City to D/B under the Contract Documents, nor any use or occupancy of the Project or any part thereof by City, nor any act of acceptance by City, nor any failure to do act, nor any review of a shop drawing or sample submittal, will constitute an acceptance of work, which is not in accordance with the Contract Documents. ARTICLE XX. PROJECT DELIVERABLES 20.1 Proiect Deliverables. Prior to Acceptance, DB shall deliver all of the following to the City in the format required: 20.1.1 As-Builts. D/B shall provide As-Builts in 3 sets of paper and electronic format (pdf) or CAD files on CD disks. 20.1.1.1 As-Builts shall show by dimension accurate [o within one (1) inch, the centerline of each run of conduits and circuits, piping, ducts, and other similar items as determined by City, both concealed and visible. D/B shall clearly identify the item by accurate note such as "cast iron drain," galvanized water, etc. D/B shall clearly show, by symbol or note, the vertical locabou of the item ("under slab", "in ceiling", "exposed", etc.), and make all identihcation sufficiently descriptive that it may be related reliably to the specification. D/B shall thoroughly coordinate all changes on the As-Builts making adequate and proper entries on each page of specifications and each sheet of drawings and other documents where entry is required to properly show the change. 20.1.1.2 D/B shall include all of the following on the As-Builts: 20.1.10.2.1Depth of foundation in relation to finished first floor. 20.1.10.2.2Horizontal and vertical locations of underground utilities and appurtenances, with references to permanent surface improvements. 20.1.10.2.3Locations of internal utilities and appurtenances, with references to visible and accessible features of [he s[ructm~e. 20.1.10.2.4Field changes of dimensions and details. 20.1.10.2.SChanges authorized by approved proposal requests, construction Change Orders, discussion with City that resulted in any change/deviation from City's program, specifications, approved plans, equipment or materials. 20.1.10.2.6Details not issued with original Construction Drawings, design build plans deferred approvals, etc. 20.1.10.2.7Upon completion of work, obtain signature of licensed surveyor or civil engineer on the Project record set verifying layout infonnatimt. 20.1.10.2.8Show locations of all utilities on-site with size, and type of pipe, if different than specified, and invert elevations of pipe at major grade and alignment changes. 20.1.10.2.9The title "PROJECT RECORD" in 3/8" letters. 20.1.10.3 D/B shall maintain a set of As-Builts at the Project site for reference. D/B shall ensure that changes to the As-Builts are made within twenty-four (24) hours after obtaining information. Changes shall be made with erasable colored pencil (not ink or indelible pencil), shall clearly describe the change by note (note in ink, colored pencil or rubber stamp) and by graphic line, shall indicate the date of entry, shall circle the area or areas affected and, in the event of overlapping changes, use different colors for each change. 20.1.11 Operation and Maintenance Manuals. D/B shall submit all Operation and Maintenance manuals prepazed in the following manner 20. L 11.1 In triplicate, bound in 8'/~ x 11 inch (2l6 x 279 mm) three-ring size binders with durable plastic covers prior ro City's Final Inspection. 22 12-26 20.1.11.2 A separate volume for each system, inefuding but not limited to, mechanical, electrical, plumbing, roofing, irrigation, and any other system as detemtitted by City, with a table of contents and index tabs in each volume as follows: 20.1.11.2.1Part 1: Directory, listing names, addresses, and telephone numbers of D/B's subcontractors, agents, suppliers, manufacturers, and installers. 20.1.11.2.2Part 2: Operation and Maintenance Instmetions, arranged by specification division or system. For each specification division or system, provide names, addresses and telephone numbers of D/B's agents, suppliers, manufacturers, and installers. In addition, list the following: (i) appropriate design criteria; (ii) list of equipment; (iii) parts Gst; (iv) operating instmctions;(v) maintenance inshuctions, equipment; (vi) maintenance instmctions, finishes; (vii) shop drawings and product data; and (viii) warranties. 20.2 Ownershia of Project Deliverables. Upon Final Completion or Termination, Project Deliverables shall become [he property of [he City. D/B and City mutually agree that [he Contract documents for the Project shah not be used on any other work without the consent of each Party. Assemble and deliver to City upon Final Completion all records, documents, warranties, bonds, guarantees, maintenance/ service contracts, and maintenance and operating manuals ARTICLE XXf. WARRANTIES 21.1 Warranties Required. D/B shall provide and require its agents to provide the warranties listed below. This wananty requirement is not intended to exclude, and shell not exclude, other implicit or explicit warranties or guarantees required or implied by law. 21.1.1 Materials and Workmanship. D/B shall guarantee, and shall require its agents [o guarantee, all work on [he Project against defective workmanship and materials furnished by D/B for a period of two (2) years on the roof top unit, (1) one year on Controls and other materials from the date of Project's Final Completion. D/B shall replace or repair any such defective work in a manner satisfactory to City, after notice to do so from City, and within the time specified in the notice. 21.1.2 New Materials and Equipment. D/B shall warrant and guarantee, and shall require its agents [o warrant and guarantee, to City that all materials and equipment incorporated into [he Proj ec[ are new unless otherwise specified. 21.1.3 Design, Consiructton, and Other Defects. D/B shall warrant and guarantee, and shall require its agents to warrant and guarantee to City that all work is in accordance with the Plans and Specifications and is no[ defective in any way in design, construction or otherwise. 21.2 Form and Content. Except manufacturer's standard pt'inted warranties, all warranties shall be on D/B's and D/B's agent's, material supplier's, installer's or manufacturer's own letterhead, addressed to City. All wananties shall be submitted in the format specified in this section, modified as approved by City to suit the conditions pertaining to the warranty. 21.2.1 Durable Binder. Obtain warranties, executed in triplicate by D/B, DB's agents, installers, and manufacturers. Provide Table of Contents and assemble in binder with durable plastic cover. 21.2.2 Tahle or Contents. All warranties shall be listed and typewritten in the sequence of the Table of Contents of the Project manual, with each item identified with the number and title of the specification section in which specified, and the name of product or work item. 21.2.3 Index Tabs. Separate each warranty with index tab sheets keyed [o the Table of Contents listing. 21.2.4 Detail. Provide full information, using separate typewritten sheets, as necessary. List D/B's agents, installer, and manufacturer, with name, address and telephone number of responsible principal. 21.2.5 Warranty Start Date. Except for items put into use with D/B's permission with date mutually agreed upon in writing, leave date of beginning of time of warranty open until the date of Final Completion. 21.2.6 Signature and Notarization. Al] warranties shall be signed and notarized. Signatures shall be required from D/B's constmction contractor and where appropriate, the responsible subcontractor. 23 12-27 21.3 Term of Warranties. Unless otherwise specified or provided by law, warranties shall extend for a term of two (2) year(s) from the date of Final Completion as outlined in the proposal from Alpha Mechanical. 20.3.1 21.4 Meetines. During the two (2) year warranty period described in Section 20.3, D/B shall meet, and shall require its design Consultant, construction contractor, and key subcontractors to meet, with the City representatives, on a monthly basis, if requested by City. This meeting shall be held to discuss and resolve any problems that City discovers in design, construction, or famishing, fixtures, and equipment of the Project during the two (2) year warranty period. 21.5 Warranty Ineoection. At 180 and 360 days following Final Completion, during the one-year general building wartauty period, D/B shall inspect each component of the Project, identify items requiring repair, and oversee and complete such repairs. Findings of such inspections shall be reported to the City. ARTICLE XXII. DEFECTIVE WORK 22.1 Correction, Removal, or Replacement. If within the designated warranty period, orsuch additional period as may be required by law or regulation, the Project is discovered to contain Defective Work, the D/B shall promptly and in accordance with the City's written instructions and within the reasonable time limits stated therein, either correct the Defective Work, or if it has been rejected by City, remove it from the site and replace it with non-defective and conforming work. 22.2 City's RiEht to Correct. If circumstances warrant, including but not limited to an emergency or D/B's failure to adhere [o section 21.1, City may correct, remove, or replace the Defective Work. ]n such circumstances, DB shall not recover costs associated with the Defective Work and shall reimburse the City for all City's costs, whether direct or indirect, associated with the correction or removal and replacement. 22.3 Non-Reimbursable Costs. All costs incurred by D/B or D/B's agents to remedy defects are non-reimbursable costs. If the City has already reimbursed the D/B for the defective work, City is entitled to an appropriate decrease in Reimbursable Costs, to withhold a setoff against the amount, or to make a claim against D/B's bond if D/B has been paid in full. 22.4 Extension of Warranty. When Defective Work, or damage therefrom, has been corrected, removed,br replaced during the warranty period, the two (2) year, or relevant warranty period, will not be extended for an additional two (2) years from the date of the satisfactory completion of [he correction, removal, or replacement. 22.5 No Limitation on other Remedies. Exercise of the remedies for defects pursuant to [his Article shall not limit the remedies City may pursue under this Agreement or law. 22.6 Dieou[es. If D/B and City are unable to reach agreement on disputed work, City may direct D/B to proceed with the work and compensate D/B for undisputed amounts. Payment of disputed amounts shall be as later determined by the Director of Public Works. If this decision is contested, the claims procedure in 29.17 shall be followed. D/B shall maintain and keep all records relating to disputed work for a period of three (3) years in accordance with Article XXVIII. ARTICLE XXIII. -.~I-c-Er. nrwrv a mnrr~x~rrnw*rxrnnv 23.1 Maintenance Period. -rt -----~-«- -'--a---^~^^ ^^a~- ~-_:,....~,._ r, rn ..., t ...,...:.,e i~ 23.2 Maintenance Area. D/B or D/B's Contractor shall maintain all involved areas of the Project. 23.3 Maintenance Reuuired ....+..^«_ __o...r^^.,,.,:^.o a~ 24 12-28 23.6.1 ~ ....a .. ..~cea r,... ..v.. ~ _e.. .r ARTICLE XXIV. BONDS 24.1 Pavment Bond. D/B shall provide or require its Construction ConVactor to provide City with a Payment (material and labor) Bond in favor of City for one hundred percent (100%) of the Hard Construction Costs. 24.2 Performance Bond. D/B shall provide or require its Construction Contractor to provide City with a Faithful Performance Bond in favor of the City for one Imndred percent (100°/) of the GMP. 24.3 Term. The Payment Bond shall remain in full force and effect at least until the Project is accepted by the City and al] claims for materials and labor aze paid, for a minimum of forty-five (45) Calendar Days after the filing of the Notice of Completion, except as otherwise provided by law or regulation The Performance Bond shall remain in full force for thirty (30) Calendaz Days following the filing date of the Notice of Completion and Acceptance, at which time it will convert to a ten percent (10%) warranty bond, which shall remain in place until the end of all warranty periods set forth in this Agreement. 24.4 Certificate of Aeencv. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. 24.5 Licensine and Rating. The bonds shall be duly executed by responsible surety companies admitted to do business in the State of California, licensed or authorized in the jurisdiction in which the project is located to issue bonds for the limits required by this agreement, listed as approved by the United States Department of Treasury Circular 570, and whose underwriting limitation is sufficient to issue bonds in flee amount required by this agreement and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations, secured through an authorized agent with an office in California, and have a minimum AM Best rating of "A--". 25 12-29 ~,~g- 24.6 Form. All bonds shall be in the form prescribed by City Attorney. 24.6 Insolvency or Bankruptcy. If the surety on any bond famished by the Construction Contractor is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Project is located, D/B shall within seven (7) Calendar Days thereafter substitute or require the substitution of another bond and surety, acceptable to the City. ARTICLE XXV. INDEMNITY & DUTY TO DEFEND 25.1 Indemnity Defense and Hold Harmless -General Requirement. Except for liability for Professional Services covered under Section 24.2, D/B shall defend, indemnify, protect and hold harmless [Ite City, its elected and appointed officers and employees, from and against any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in ]aw or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of D/B, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Defined Services or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of [he City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the D/B, its employees, agents or officers, or any third party. 25.2 Professional Services. For those professionals who are required to be licensed by the state (e.g. architects, landscape architects, surveyors and engineers) ("Design Professionals"), Design Professionals shall defend, indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or relating to any negligence, errors or omissions, recklessness, or willful misconduct of Design Professional, its officials, officers, employees, agents, D/Bs, and contractors arising out of or in connection with the performance of the Design Professional's Services. Also covered is liability arising from, connected with, caused by, or chimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Design Professional, its employees, agents or officers, or any third party. The Design Professional's duty to indenmify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Design Professional's obligation and duties under this Agreement. 25.3 Indemnification for Liens and Stoo Notices. The D/B shalt keep die Project and Property free of any mechanic's liens and immediately secure the release of any stop notices.: The D/B shall defend, indemnify, protect, and hold harmless, the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited tq attorney fees, arising from or attributable to a failure to pay claimants. D/B shall be responsible for payment of al] persons entitled to assert liens and stop notices. 25.4 Indemnification for Hazardous Materials. D/B agrees to defend, indemnify, and hold harmless, the City, its agents, officers and employees from and against any and all costs, damages, claims, and liabilities, including reasonable attorney fees, foreseeable or unforeseeable, directly or indirectly, arising from or related to the Hazardous Materials identified in the Phase I or Phase II Reports, if any, conducted pursuant to Article V. D/B's indemnity shall survive the close of escrow. Seller expressly preserves its rights against other parties and does not release, or waive its rights to contribution against, any other party. 25.5 Costs of Defense and Award. included in the obligations in Sections 24.1 dtrough 24.4, above, is the D/B's obligation [o defend, at D/B's awn cost, expense and risk, any and all aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its directors, officials, officers, employees, agents and/or volunteers. D/B shall pay and satisfy any judgment, award or decree that maybe rendered against City or its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expense and cost uncured by each of them in connection therewith. 25.6 Insurance Proceeds. D/B's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, and/or volunteers. 26 12-30 25.7 Enforcement Costs. D/B agrees to pay any and all costs City incurs enforcing the indenmity and defense provisions set forth in this Article XXV. 25.8 Survival. Consultant's obligations under this Article XXV shall survive the termination of this Agreement. ARTICLE XXVI. INSURANCE 26.1 General. D/B shall not begin work under this Agreement until it has: (i) obtained, and upon the City's request provided to the City, insurance certificates reflecting evidence of all insurance required in section 25.2; (ii) obtained City approval of each company or companies; and (iii) confirmed that all policies contain the specific provisions required by section 25.4. 26.2 Tvoes of Insurance. At all times during the term of this Agreement, D/B shall maintain insurance coverage as follows: 26.2.1 Commercial Genera! Liability. Contractor shall provide at its expense a policy or policies of Commercial General Liability [CGL] Insurance written on an ISO Occurence form CG 00 OI 07 98 or an equivalent form providing coverage at least as broad and which shall cover liability arising from premises and operations, XCU (explosions, underground, and collapse) independent contractors, products/completed operations, personal injury and advertising injury, bodily injury, property damage, and liability assumed under an insured's contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the CGL hrswance limiting the scope of coverage for either "insured vs. insured" claims or contractual liability. Contractor shall maintain the same or equivalent CGL Insurance as described herein for at least ten (10) years following substantial completion of the work. All costs of defense shall be outside the policy limits. The Policy shall provide for coverage in amounts not less than two million dollars ($2,000,000) per occurrence for Bodily Injury, Personal Injury, or Property Damage. If Commercial General Liability Insurance or other form with a general aggregate limit shall apply separately to this project/location, the general aggregate limit shall be twice the required occurrence limit. 26.2.2 Commercial Automobile Liability. For all of D/B's automobiles used in conjunction with the Project including owned, hired and non-owned automobiles, D/B shall keep in full force and effect, a policy or policies of Commercial Automobile Liability Insurance written on an ISO form CA 00 Ol 12 90 or a later version of this form or equivalent fornr providing coverage at least as broad in the amount of one million dollars ($1,000,000) combined single limit per occurrence, covering bodily injury and property damage for owned, non-owned and hired automobiles ["Any Auto"]. All costs of defense shalt be outside the policy. 26.2.3 Architects and Engineers Professional Liability. For all of D/B's employees who are subject to this Agreement, D/B shall keep in full force and effect, or D/B shall 'require that its amhitect/engineer(s) of record keep in full force and effect errors and omissions insurance providing coverage far professional liability with a cmnbined single limit of oue million dollars ($1,000,000) per claim and two million dollars ($2,000,000) annual aggregate. D/B shall ensure both that (i) this policy retroactive date is on or before the date of commencement of the Project; and (ii) this policy has a reporting period of three (3) yeazs after the date of completion or termination of this Agreement D/B agrees that for the time period defined above, there will be no changes or endorsements to the policy that increases the City's exposure to loss. 26.2.4 Excess Liability. D/B shall provide Excess Liability Insurance affording three million dollars ($3,000,000) in excess of General Liability and Employer's Liability limits afforded on primary policies. The coverage will be subject to the same terms, conditions, and exclusions found in the primary policies. 26.2.5 Contractors Pollution Liability. If the DB or its Contractors' Work includes cleamtp, removal, storage, or otherwise handling of hazardous or toxic chemicals, materials, substances, or any other pollutants, Contractor shall provide at their expense Contractors Pollution Liability Insurance appropriate to cover such activities in an amount not less than $3,000,000 Combined Single Limit per occurence/aggegate for bodily injury, property damage and remediation. 27 12-31 26.2.5.1 Claims [Wade policies will include a five (5) year Extended Claims Discovery Period applicable to this Agreement, if reasonably available. 26.2.5.2 The policy for this insurance shall include Contractual Liability coverage. Such policy shall be endorsed [o specifically provide for Work performed under the Agreement. 26.2.5.3 The D/B or its Contractors of any tier shall furnish to the City a policy or Certificate of Contractors Pollution Liability Insurance in which the City, its elected and appointed officers, employees, and agents, and the D/B are named as additional insureds. The policy or Certificate must plainly designate the none of the Project, name of the Disposal -Site, and the permits secured for its disposal This Certificate must be furnished to the City, evidencing compliance with the outlined requirements, prior to the D/B or Coutractor beginning their Work on [he Project. Any failure to famish this policy or Certificate of Insurance shall no[ relieve [he D/B or Contractor from their obligatimts under this Section. 26.2.6 Hazardous Transporters Pollution Liability. If the D/B's or its contracta's' Work includes transportation of hazardous or toxic chemicals, materials, substances or any other pollutants the D/B or its Contractor of any tier shall provide, at their expense, Transporters Pollution Liability Insurance in an amount not less than $3,000,000 Combined Single Limit per occurrence/Aggregate for bodily injury, property damage and remediation. 26.2.6.1 Claims Made policies will include a five (5) year Extended Claims Discovery Period applicable to this Agreement, if reasonably available. 26.2.6.2 Such policy shall be endorsed to specifically provide coverage for Work performed under this Agreement. The D/B or its contractors of any tier shall famish the City with a policy or Certificate of Hazardous Transporters Pollution Liability Insurance in which [he City, its elected and appointed officers and employees, and agents, the D/B, and any upper tiered contractor aze named additional insureds. 26.2.6.3 The policy or Certificate must plainly designate the name of the Project, name of the Disposal Si[e, and [he permits secured for its disposal. This Certificate must be furnished [o the City, evidencing compliance with the outlined requirements, prior to the D/B or Contractor beginning their Work on the Project. Any failure to famish this policy or Certificate of Insurance shall not relieve [he D/B or Contractor from their obligations under this Section. 26.2.7 Worker's Compensatou. For all of D/B's employees who are subject [o this Agreement and to the extent required by the State of California, D/B shall keep in full force and effect, a Workers' Compensation Insurance and Employers' Liability Insurance to protect D/B against all claims under applicable state workers' compensation laws. The City, its elected officials, and employees will no[ be responsible for any claims in law or equity occasioned by the failure of the D/B to comply with [he requirements of this section. That policy shall provide at least the statutory minimums of one million ($1,000,000) for Bodily Injury by Accident for each accident, one million dollars ($1,000,000) for Bodily Injury by Disease each employee, and a one million dollars ($1,000,000) for Bodily Injury by Disease policy limit. 26.2.7.1 Prior to the execution of the Agreement by the City, the D/B shall file the following signed certification: "I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for worker's 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 the Contract." 26.2.8 Builder's Risk. To the extent commercially available, the City shall provide a policy of "all risk" Builders Risk Insurance. D/B shall add City and its respective elected officials, officers, employees, agents, and representatives to the policy as loss payees, to the extent such insurance is conunercially available. Coverage will be provided for the Replacement Cost of Materials, Equipment and Fixtures destined to become a permanent part of the structure, and coverage will include Property in Transit and Property in Offsite Storage. D/B shall also add its constmction contractor, and the construction 28 12-32 contractor's subcontractors to the policy as additional named insureds or loss payees, to [he extent their interest may appear. The limit for this policy shall be a ininhnum of $195,673.00 (GMP dollar amount to reflect project soft and hard costs). It shall be D/B's responsibility to bear the expense of any deductible. The Builders Risk coverage shall expire at the time such insured property is occupied by City, or a Notice of Completion is filed, whichever occurs firs[. Contractor and its Subcontractors will be solely responsible for any loss or damage to their personal property, including contractor's tools and equipment owned, used, leased or rented by the Conractor or Subcontractor. 26.3 Ratine Requirements. Except for State Compensation Insurance Fund, all insurance required by express provision of this Agreement shalt be carried only by responsible insurance companies that have been given at least an "A" or "A--" and "V" rating by AM BEST, that are authorized by ttie California Insurance Commissioner to do business in the State of Califomia, and that have been approved by the City. 26.3.1 Non-Admired Carriers. The City will accept insurance provided by non-admitted, "surplus lines" carriers only if the carrier is authorized to do business in the State of Califomia and is included on the List of Eligible Surplus Lines Insurers [LESLI list] with a current AM BEST ra[iug of no less than A:X. 26.4 Endorsements Required. Each policy required under Article XXVi, section 25.2 of this Agreement shall expressly provide, and an endorsement shall be submitted to the City, that: 26.4.1 Additional Insureds. Except as to Architects and/or Engineers professional liability insurance and Workers Compensation, the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives shall be named as additional insureds. 26.4.1.1 Commercial General Liability. The policy or policies must be endorsed to include as an Additional Insured the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives. Liability Additional Insured Endorsement must be provided on ISO form CG 2010 (11/85) or equivalent, specifically, coverage afforded City must be Primary and must no[ exclude Completed Operations. The coverage for Projects for which the Engineer's Estimate is one million dollars ($1,000,000) or more shall include liability arising out of: (i) Ongoing operations performed D/B or on D/B's behalf, (ii) D/B's products, (iii) D/B's work, including but rat limited to completed operations perfotmed by D/B or on D/B's behalf, or (iv) premises owned, leased, controlled, or used by D/B; the coverage. for Projects for which the Engineer's Estimate is less than one million dollars ($1,000,000) shall include liability arising out of. (i) Ongoing operations performed by D/B or on D/B's behalf, (ii) D/B's products, work, including but not limited to completed operations performed by DB or on D/B's behalf, or (iii) premises owned, leased, controlled, or used by you; Except that in connection with, collateral to, or affecting any construction contract to which the provisions of subdivision (b) of Section 2782 of the California Civil Code apply, these endorsements shall not provide any duty of indemnity coverage for the active negligence of the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives in any case where an agreement to indemnify the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives would be invalid under subdivision (b) of Section 2782 of the Califomia Civil Code. In any case where a claim or loss encompasses the negligence of the Insured and the active negligence of the City of City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives that is not covered because of Califomia Insurance Code Section 11580.04, the insurer's obligation to the City of San Chula Vista and its respective elected officials, officers, employees, agents, and representatives shall be limited to obligations permitted by Califomia Insurance Code Section 11580.04. 26.4.1.1 Commercial Automobile Liability Insurance. Unless the policy or policies of Commercial Auto Liability Insurance are written on an ISO form CA 00 O1 t 2 90 or a later version of this form or equivalent form providing coverage at feast as broad, the policy or policies must be endorsed to include as an Additional Insured the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives, with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; Except that in connection with, collateral to, or affecting any construction contract to which the 29 12-33 provisions of subdivision (b) of Section 2782 ofthe California Civil Code apply, this endorsement shall not provide any duty of indemnity coverage for the active negligence of the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives in any case where an agreement to indemnify the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives would be invalid under subdivision (b) of Section 2782 of the Califomia Civil Code. In any case where a claim or loss encompasses the negligence of dre Insured and the active negligence of [he City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives that is not covered because of Califomia Insurance Code Section 11580.04, the insurei s obligation to the City of Chula Vista and its respective elected officials, officers, employees, agents, and representatives shall be limited to obligations permitted by Califomia Insurance Code Section 11580.04. 26.4.2 Primary and Nan-Contributory. The policies are primary and non-contributing to any insurance or self-insurance that may be carried by the City of Chula Vista, its elected officials, officeis, employees, agents, and representatives with respect to operations, including the completed operations if appropriate, of the Named Insured. Any insurance maintained by the City of Chula Vista and its elected officials, officers, employees, agents, and representatives shall be in excess of D/B's insurance and shall not contribute to it. 26.4.3 Waiver of Subrogation. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. 26.4.4 Project General Aggregate Limit. The CGL policy or policies must be endorsed to provide a Designated Construction Project General Aggregate Limit that will apply only to the Work performed under this Agreement. Claims payments not arising from the Work shall not reduce the Desigtated Construction Project General Aggregate Limit. The Designated Construction Project General Aggregate Limit shall be in addition to the aggregate limit provided for the products-completed operations hazard. 26.45 Written Notice. Except as provided for under California law, the policies cannot be canceled, non- renewed or materially changed except after thirty (30) Calendar Days prior written notice by D/B to the City by certified mail, as reflected in an endorsement which shall be submitted [o the City, except for non-payment of premium, in which case ten (]0) Calendaz Days notice shall be provided. 26.4.3.1 The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives" shall be deleted from all cenificates. 26.4.6 Additionallnsurance. D/B may obtain additional insurance not required by [his Agreement. 26.4.7 Prior to Starting Worh. Before performing any work, D/B shall provide [he City with all Certificates of Insurance accompanied by all endorsements. 26.5 Subcontractors. Al] coverages for subcontractors or subconsultants shall be subject to all of the requirements stated herein. Subcontractors and Subconsultauts shall be protected against risk of loss by maintaining insurance in the categories and at the limits required herein. Subcontractors and Subconsuttants shall name City and D/B as additional insureds under its policies. 26.6 Obligation to Provide Documents. The D/B shall provide copies of documents including but not limited to certificates of insurance and endorsements, and shall famish renewal documentation prior to expiration of insurance. Each required document shall be signed by the insurer or a person authorized by the insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all insurance policies required herein. 26.6.1 Cooperation. The D/B and its Contractors shall cooperate fully with and provide any information or records requested by the City or regarding all aspects of the insurance and project, including but not limited to claims, audit, payroll, insurance records and safety. Delays in reporting information to the City may result in delays in progress payments to the D/B. 30 12-34 26.7 Deductibles/Self Insured Retentions. All deductibles and self-insurance retentions on any policy shall be the responsibility of D/B. Deductibles and self-insurance retentions shall be disclosed to and approved by the City at the time the evidence of insurance is provided. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the DB shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. 26.8 Policy Chances. D/B shall not modify any policy or endorsement thereto which increases the City's exposure to loss for the duration of this Agreement. 26.9 Reservation of Richts. The City reserves the right, from time to time, to review the Contractor's insurance coverage, limits, deductible and self-insured retentions to determine if they are acceptable to the City. The City will reimburse the Contractor for the cost of the additional premium for any coverage requested by the City in excess of that required by this Agreement without overhead, profit, or any other markup. 26.10 Not a Limitation of Other Obligations. Insm~ance provisions under this section shall no[ be construed [o limit the D/B's obligations under this Agreement, including Indemnity. 26.1 l Material Breach. Failure to maintain, renew, or provide evidence of renewal during the term of this Agreement maybe treated by the City as a material breach of contract. ARTICLE XXVII. TERMINATION/SUSPENSION OF WORK 27.1 Suspension of Work for Archaeological and/or Paleontological Discoveries. If a discovery is made of an azchaeological or paleontological interest, DB shall immediately cease operations in the area of the discovery and shall not continue until ordered by City. When resumed, operations within the area of the discovery shall be as directed by City. 27.1.1 Discoveries which maybe encountered may include, but are not be limited to, dwelling sites, stone implements or other artifacts, animal bones, human bones, fossils or any item with cultural significance. 27.1.2 D/B shall be entitled to an extension of time and compensation in accordance with the provisions of this Agreement. 27.2 Termination of Agreement by City for Cause. If, through any cause, D/B shall fail to fulfill in a timely and proper manner D/B's obligations under this Agreement, or if DB shall violate any of the covenants, conditions, agreements or stipulations of [his Agreement, City shall have the right [o terminate this Agreement by giving written notice to DB of such termination and specifying the effective date thereof at least five (5) Calendar Days before the effective date of such tennination. 27.3 Termination or Suspension for Convenience by City. City may terminate or suspend this Agreement at any time and for any reason, by giving specific written notice to DB of such termination or suspensionand specifying the effective date thereof, at least seven (7) Calendar Days before the effective date of such suspension or termination. In the event of an emergency, advance notice shall not be required under [Iris provision. 27.4 Terminafion of Agreement by D/B. D/B may terminate the Agreement upon ten (10) days written notice to City, whenever either of the following occur: 27.4.1 Project Suspension. If the Project has been suspended under the provisions of Section 26.1 or 26.3, for more than ninety (90) consecutive days through no fault or negligence of DB, and notice to resume Work or to terrrrinate the Agreement has not been received from City within this time period; or, 27.4.2 Failure to Pay Amounts Due and Not in Dispute. If City fails to pay D/B any monies due and not in dispute in accordance with the terms of [his Agreement within ninety (90) Calendar Days, plus the ten (I O) Calendaz Days afforded the City to remedy the failure, after presentation to City by D/B of a request therefore. 27.5 D/B Action Required. Upon receipt of the Notice of Termination, D/B shall take any and all action that may be necessary, or that the City Manager may direct, for the protection and preservation of the property related [o this Agreement that is in the possession of D/B and in which City has or may acquire an interest. 31 12-35 27.6 Possession Ownership, and Control of Documents. In the event that this Agreement is terminated in accordance with Sections 26.2 ttaough 26.4, all finished or unfinished documents, data, studies, drawings, maps, plans, specifications, reports and other materials prepared by D/B, or any of its agents, Design Consultants or Subcontractors, shall, at the option of the City, become the sole and exclusive property of the City. 27.7 City Rieht to Complete Proiect. In the event that the Agreement is terminated pursuant to this Article XXVII, City may take possession of the Project and may complete the Project by whatevermethod or means City may select. 269.1 Excess Costs. In the event that the costs to complete the Project exceed the balance of funds, which had the Project been completed in accordance with this Agreement would have been due, [he D/B shall be liable for and pay such excess costs to the City. 27.8 Payment to DB Due to Termination. Upon terrnitta[ion, D/B shall be entitled to receive just and equitable compensation for satisfactory Work completed. In no event shall such amount exceed the total dollar amount authorized by City, reduced by the amount of payments previously made and any deductions pemtitted herein. The fair and reasonable amount shall be determined in good faith by City considering the following: 27.8.1 The price for completed services accepted, including any retention, by City not previously paid. 27.8.2 The costs incurred in the performance of the Project terminated, including initial costs and preparatory expense allocable thereto. These costs are only for Work completed and accepted by the City based ott an audit of all Contractors' bills of materials and the timecards for Work actually performed. 27.8.3 A portion of the DB Fixed Fee (overhead and profit) based on the percentage of Work completed on the Project; however, if DB would have sustained a loss on the entire Agreement had it been completed, City shall allow no profit under this section and shall reduce the amount payable to reflect the indicated rate of loss. 27.8.4 D/B and Design Subcontractor services through the date of termination based on actual time spent as documented on timecards. Expenses shall be paid based on invoice and receipts provided by D/B. 27.8.5 Any amounts for Work or Services agreed to by the City Manager and D/B, but without duplication of any amounts agreed to above. 27.8.6 Reasonable demobilization costs, to the effective date of such termination. 27.8.7 If termination occurs during Phase I, II, or III, D/B shall only be entitled to the Fees for Phases I, II, or III, associated therewith, or the respective portion thereof. 27.9 Lost Profits. Under no circumstances will D/B be entitled to any consideration for lost profit or last opportunity costs. 27. ] ODeductlons. The amount due D/B shall be reduced by amounts including [he following: 26.10.1 Any claim that City has against D/B under this Agreement. 26.10.2 The agreed price for, or the proceeds of sale of, materials, supplies, or other things acquired by D/B or sold under the provisions of this clause and not recovered by or credited to City. 26.10.3 Damages caused by D/B's breach, including Excess Costs pursuant [o Section 26.7.1. 26.10.4 Property Destroyed, Lost, Stolen or Damaged. Except to the extent that City expressly assumed the risk of loss, the City Manager shall exclude from the amounts payable to D/B, the fair value, as determined by the City Manager, of property that is destroyed, lost, stolen, or damaged so as to become undeliverable to City. 27.1 (Disputes. If DB does not agree that [he amount determined by the City Manager is fair and reasonable. D/B shall within thirty (30) Calendar Days of receipt of payment, shall gives notice of such disagreement to City. The dispute shall be resolved in the manner provide for in Section 21.6. 27.12 W giver of Claims. In the event of termination under this Article XXVII, failure of DB to dispute amounts paid in the manner and within the timeframe provided in Section 26.1 I shall act as a waiver of any and all 32 12-36 claims for damages or compensation arising under this Agreement for any and all Work and Services performed under this Agreement up to the effective date of Notice of Termination. D/B hereby expressly acknowledges and agrees that such claims shall be waived as herein provided. 27.13Ri¢hts of Ciri Preserved. In the event that the Agreement has been terminated, the termination shall not affect any rights or remedies of City against D/B then existing or which may thereafter accrue. Any retention or payment of moneys due D/B by City will not release D/B from liability. It is agreed that termination hereafter will not in any way release, waiver, or abridge any rights the City has against DB's performance bond surety. ARTICLE XXVIII. RECORDS AND AUDITS 28.1 Record System - Reimburseable Costs. D/B shall develop and maintain an accurate system for tracking all Reimbursable Costs. Utilizing this system, D/B shall include with each month payment application an itemization of all such Reimbursable Costs actually incurred by D/B, during the previous month. If requested by [he City, D/B shall provide all backup documentation supporting such Reimbursable Costs. 28.2 Record Sys[em -Hard Construction Costs. D/B shall develop and maintain an accurate system for tracking all Hard Constmction Costs it incurs on the Project. Utilizing this system, D/B shall include with each monthly application for payment an itemization of all Hard Constmction Costs actually incurred by DB during the previous month. 28.3 Retention of Records. D/B, contractors, and subcontractors shall maintain data and records related to this Agreement for a period of not less than three (3) years following receipt of final payment under this Agreement or three (3) yeazs following final settlement associated with the termination of this Agreement pursuant to Article XXVII, above. 28.2 Audit of Records. At any time during normal business hours, during the temr of the contract plus and record retention period and as often as the City deems necessary, D/B and any or all Conractors or subcontractors shall make available to the City for examination at reasonable locations within the City/County of San Diego all of the data and records with respect to all matters covered by this Agreement. D/B and all contractors or subconvactors will permit the City to make audits of all invoices, materials, payrolls, records of persotmel, and other data and media relating to all matters covered by this Agreement. If records are not made available within the City/County of San Diego, then D/B shall pay all the City's travel related costs to audit the records associated with this Agreement at the location where the records are maintained. Such costs will not be Reimbursable Costs. 28.2.1 Costs. D/B and DB's agents shall allow City [o audit and examine books, records, documents, and any and all evidence and accounting procedures and practices that City determines are necessary to discover and verify all costs of whatever nature, which are claimed to have been incurred, anticipated to be incurred, or for which a claim for additional compensation or for Extra Work have been submitted under this Agreement. ARTICLE XXIX. NOTICES 29.1 WrN i/ tine, Any demand upon or notice required or permitted to be given by one Party to [he other Patty shall be in writing. 29.2 Effective Date. Except in relation to Change Orders as provided for in section 28.4 or as otherwise provided bylaw, any demand upon or notice required or permitted to be given by one Party to the other Party shall be effective: (i) on personal delivery, (ii) on the second business day after mailing by certified or registered U.S. Mail, return receipt requested, (iii) on the succeeding business day after mailing by Express Mail or after deposit with a private delivery service of general use (e.g., Federal Express) postage or fee prepaid as appropriate, or (iv) upon successful transmission of facsimile. 29.3 Recipients. Except in relation to Change Orders, all demands or notices required or permitted to be given shall be sent to all of the following: 29.3.1 Lauce Penza, Alpha Mechanical Inc. 29.3.2 Gordon Day, Project Manager City of Chula Vista 33 12-37 29.3.3 29.4 Recipients of Chance Orders. 28 4.1 Lance Penza, Alpha Mechanical Inc. 29.4.2 29.4.3 29.5 Chance of Address(es). Notice of change of address shall be given in the manner set forth in this Article. ARTICLE XXX. MISCELLANEOUS PROVISIONS 30.1 Headincs. All article headings are for convenience only and shall not affect the interpretation of this Agreement. 302 Gender & Number. Whenever the context requires, the use herein of (i) the neuter gender includes [he masculine and the feminine genders and (ii) the singular number includes the plural number. 30.3 Reference to Paracraphs. Each reference in this Agreement to a section refers, unless otherwise stated, to a section in this Agreement. 30.4 Incorporation of Recitals. All recitals herein are incorporated into [his Agreement and are made a part hereof. 30.5 Covenants and Conditions. Al] provisions of this Agreement expressed as either covenants or conditions on [he part of the City or the Consultant, shall be deemed to be both covenants and conditions. 30.6 Intecration. This Agreement and the Exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement. No change, alteration, or modification of the tetras or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both Parties or an amendment to this Agreement agreed to by both Parties. All prior negotiations and agreements are merged into this Agreement. 30.7 Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall no[ render any any other provision of this Agreement unenforceable, invalid, or illegal. 30.8 Draftinc Ambicuities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, tenus and conditions of this Agreement; and the decision of whether or not to seek advice of counsel with respect to [his Agreement is a decision which is [he sole responsibility of each Party. This Agreement shall not be constmed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement. 30.9 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits, the main body of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, tole, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement 30.10 Prompt Performance. Time is of the essence of each covenant and condition set forth in this Agreement. 30.11 Good Faith Performance. The parties shall cooperate with each other in good faith, and assist each other in the performance of [he provisions of [his Agreement. 30.12 Further Assurances. City and D/B each agree to execute and deliver such additional documents as may be required to effectuate the purposes of this Agreement. 30.13 Exhibits. Each of the following Exhibits is attached hereto and incorporated herein by this reference: 34 ~2-sa Exhibit A - Alplta Mechanical Inc, Proposal including Project Schedule Exhibit B - RFP -HVAC System for the Norman Park Center 30.14 Compliance with Controlling Law. The Consultant shall comply with all laws, ordinances, regulations, and policies of the federal, state, and local governments applicable to dtis Agreement, including California Labor Code section 1720 as amended in 2000 relating to the payment of prevailing wages, if stated in the RFP, during the design and preconstmctiott phases of a project, including inspection and land surveying work. In addition, the Consultant shall comply immediately with all directives issued by the City or its authorized representatives under authority of any laws, statutes, ordinances, rules, or regulations. The laws of the State of California shall govern and control the terms and conditions of this Agreement. 30.15 Jurisdiction, Venue, and Attorney Fees. The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. The prevailing Pany in any such suit or proceeding shall be entitled to a reasonable award of attorney fees in addition to any other award made in such suit or proceeding. 30.16 Municipal Powers. Nothing contained in this Agreement shall be construed as a limitation upon the powers of the City as a chartered city of [he State of California. 30.17 Administrafive Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time [o time be amended, the provisions of which are incorporated by [his reference as if fully set forth herein, and such policies and procedures used by [he City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the pwpose of resolving any dispute over the terms of this Agreement. 30.18 Third Party Relationships. Nothing in this Agreement shall create a contractual relationship between City and any third party; however, the Parties understand and agree that City, to the extent permitted by law, is an intended third party beneficiary of all D/B's contracts, purchase orders and other contracts between D/B and third party services. D/B shall incorporate [his provision into its contracts, supply agreements and purchase orders. 30.19 Non-Assignment. The D/B shall not assign the obligations ender this Agreement, whether by express assignment or by sale of the company, nor any monies due or to become due, without the City's prior written approval. Any assignment in violation of this paragraph shall constitute a Default and is grounds for immediate termination of this Agreement, at the sole discretion of the City. In no event shall any putative assignment create a contractual relationship between the City and any putative assignee. 30.20 Successors in Interest. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or mot any Parties to [he Agreement have been succeeded by another entity, and all rights and obligations created by this Agreememt shall be vested and binding on any Party's successor in interest. 30.21 Independent Contractors. The D/B, any consultants, contractors, subcontractors, and any other individuals employed by the D/B shall be independent contractors and not agents of the City. Any provisions of this Agreememt that may appear to give the City any right to direct the D/B concerning the details of performing the Services under this Agreement, or to exercise any control over such performance, shall mean only that the D/B shall follow the direction of the City concerning the end results of the performance. 30.22 Approval. Where [he consent or approval of a party is required or necessary under this Agreement, the consent or approval shall not be unreasonably withheld. 30.23 No Waiver. No failure of either the City or the Consultant to insist upon the strict perfomance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, temt, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreememt, and each and every covenant, comdition, and term hereof shall continue in full force and effect to any existing or subsequent breach. 35 12-39 30.24 Si¢nine Authority. The representative for each Party signing on behalf of a corporation, partnership, joint venture or governmental entity hereby declares that authority has been obtained to sigu on behalf of the corporation, partnership, joint venture, or entity and agrees to hold the other Party or Patties hereto harmless if it is later determined that such authority does not exist. IN WITNESS WHEREOF, this Agreement Che City of Chula Vista and Alpha Mechanical Inc have executed this Agreement thereby indicating that they have read and understood same, and indicate [heir full and complete consent to its terms. This Agreement is dated !mot((,( C~ ` (~, 201t!(and this date shall cons[ihrte the effective date of this Agreement. CITY OF CHULA VISTA, A Municipal Corporation By: CHERYL COX, Mayor Mft{'k INPA~fi1`.PQB~ Gb-b• Approved as to form and legality: Glen Googins, City Attorney Dated , 2012 36 12-40 RESOLUTION NO. 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A $195,673.00 DESIGN BUILD AGREEMENT WITH ALPHA MECHANICAL FOR THE "NORMAN PARK SENIOR CENTER HVAC SYSTEM RETROFIT PROJECT" (GG219) WHEREAS, the Norman Park Senior Center encompasses approximately 17,000 square feet of conditioned heating and cooling space; and WHEREAS, the Center's heating, ventilation, and air conditioning (HVAC) system is no longer functioning effectively and has surpassed its expected 15-year useful life; and WHEREAS, staff proposed replacing the outdated HVAC system with a new energy efficient model as part of the Council-approved FY12 Capital Improvement Program; and WHEREAS, a competitive bid process was initiated to select aDesign-Build contractor for the project; and WHEREAS, following interviews of the two bid respondents, Alpha Mechanical was selected as the best respondent based on design, monetary, and time criteria for the project; and WHEREAS, the new system will allow the building's temperatures to be better regulated helping to ensure a healthier and more comfortable environment for seniors and other occupants; and WHEREAS, the retrofit project will be funded through federal Energy Efficiency & Conservation Block Grants. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a $195,673.00 Design-Build Agreement with Alpha Mechanical for the "Norman Park Senior Center HVAC System Retrofit Project" (GG219). Presented by Richard A. Hopkins Director of Public Works 12-41