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HomeMy WebLinkAbout2009/06/23 Item 9 CITY COUNCfL &1 REDEVELOP~/\ENT AGENCYI AGENDA STATEMENTI : , \If, , ~~ f:. CITY OF I =~ (HULA VISTA I .',<0 ~',ii1. ITEM TITLE: SUBMITTED BY: REVIEWED BY: 6/23/09, Item~ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRlATING $400,000 FROM THE 2008 TAX ALLOCATION REFUNDING BONDS AS A REPAYMENT TO THE GENERAL FUND Ai'lD APPLYING THOSE FUNDS TOWARDS IMPROVEMENTS OF THE ANIMAL CARE FACILITY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT (CIP) ENTITLED "CONSTRUCTION OF SITE IMPROVEMENTS AND RELOCATABLE TRAILERS AT THE ANIMAL CARE FACILITY (GG-207)"; APPROPRlATING $400,000 FROM THE GENERAL FUND; k\1ENDING THE FY09 CAPITAL IMPROVEMENT PROGRA1\;f; AND APPROVING A DESIGN BUILD AGREEMENT WITH MJC CONSTRUCTION CO. FOR THE DESIGN AND CONSTRUCTION OF SITE IMPROVEMENTS AND RELOCATABLE TRAILERS AT THE ANIMAL CARE FACILITY (GG-207) IN THE CITY OF CHULA anA, CA DIRECTOR OF PUBLI WORKS ~ CITY MANAGE " ASSISTANT CITY AGER 4/5THS VOTE: YES [;gJ NO 0 SUMMARY On June 16,2009, Council approved an agreement for the Pima Medical Institute (PM!) to partner with the City of Chula Vista to expand and improve the Animal Care Facility (ACF). Approval of this item will amend the Fiscal Year 2009 Capital Improvement Program, establish a new Capital Improvement Project, appropriate funds, and approve the design build agreement with MJC Construction Co. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 3 categorical exemption pursuant to Section 15303 (c) & (d), New Construction or Conversion of Small Structures, of the State CEQA Guidelines because the proposed structures do not exceed 10,000 square feet in floor area and are proposed in a non-environmentally 9-1 6/23/09, Iteml Page 2 of3 sensitive urbanized area where utilities are readily available to service the needs of the structures and occupants. Thus, no further environmental review is necessary. RECOMMENDATION Council and Redevelopment Agency adopt the resolutions. BOARDS/COiVLVIISSION RECOMMENDATION The Chula Vista Redevelopment Corporation at their meeting of June 11, 2009, approved a resolution recommending an appropriation of$400,000 from the 2008 Tax Allocation Refunding Bonds for repayment to theCity of Chula Vista General Fund and applying those funds towards improvemnets of the Animal Care Facility. DISCUSSION The City of Chula Vista has been involved in animal control since 1923. The current ACF, located at 130 Beyer Way, opened in fall of 2001. The Animal Care Services team provides animal control and sheltering services for the cities of Chula Vista, Imperial Beach, and Lemon Grove, as well as animal sheltering services for National City. Approximately 8,300 homeless animals came to the ACF in calendar year 2008. ACF medical personnel performed over 6,500 examinations and over 56,000 medical treatments visits (any one visit can involve administering more than one medication) in addition to 61 in-house surgenes. In an effort to address concerns about providing adequate care for animals and need for additional medical resources, the City contacted PMI. PMI has agreed to partner with the City of Chula Vista to expand and improve the ACF. PMI is a private educational organization dedicated to providing medical training at a reasonable cost to its students. PMI approached the City to enter into a partnership modeled after their arrangements in Clark County, Nevada and in King County, Washington. PMI will co-locate their veterinary school at the ACF and in return provide animal care including spay and neuter surgeries, x-ray services and general veterinary care at the ACF at no cost. On May 28, 2009, in accordance with Section 2.57 of the Chula Vista Municipal Code, the City requested proposals from three (3) pre-qualified Design Build firms to provide design, construction and installation of site improvements and city owned re-locatable trailers at the vacant site located next to the ACF. The project consists of site grading, installing utilities, a 17- space parking lot, relocation of two trailers, landscaping, security fencing and walkways. PMI will utilize one of the two City-owned relocated trailers and ACF staff and students will utilize the other. Request for Proposals were sent to Heffler Company, Inc.; HTA & Construction Inc.; and MJC Construction Co. All three Design Build firms submitted proposals. Based on the proposals, MJC Construction Co. was selected as the most responsive Design Builder. MJC Construction 9-2 6/23/09, Item~ Page 3 of 3 Co. has the extensive construction experience required to meet the City's development schedule, the project cost estimates and the project's proposed completion date on August 22,2009. MJC Construction Co. submitted a design and build proposal for $265,000. Staff will return to Council to approve a Guaranteed Maximum Price at 100% Construction Documents. It is expected that all the available funds will be utilized for the purpose of maximizing the site improvements during the design phase of this project. 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 that is the subject of this action. CURRENT FISCAL IMPACT Currently, the Redevelopment Agency has approximately S 1.4 million available for the issuance of the 2008 Tax Allocation Refunding Bonds. $400,000 is recommended for appropriation towards the payment of the Agency's outstanding City loan which will then be applied towards improvements to the Animal Care Facility. Although this proposal will enable the City to provide more animal care services, there is no net impact to the General Fund reserves due to the loan repayment from the Agency: The site improvements are estimated to be $400,000. The proposal is for PMI to split this cost with the City. The City will invest an initial $400,000 which will be slightly offset by a $25,000 investment from PMI in the first year. PMI will begin making annual payments to the City over a 10 year period for a total of $175,000 beginning in fiscal year 2010-11. In addition, PMI will provide the interior furnishings and equipment for the surgery and x-ray areas at their cost. The breakdown of project cost is as follows: Description Amount Contract $265,000 Utilities $75,000 Staff $75,000 Contingency S35,000 Pro iect Total $400,000 ONGOING FISCAL The annual payments from PMI to the City will result in a positive impact of $175,000 over a 10 year period. ATTACHMENTS 1. Design Build Agreement with MJC Construction Prepared by: Gordon Day, Building Project lVfanager, Public Works-Engineering M: \EngineerlA GEN DA ICAS2 009 \06-2 3-09l4CF design buildFINAL3 mk. doc 9-3 RDA RESOLUTION NO. 2009- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRlA TING $400,000 FROM THE 2008 TAX ALLOCATION REFUNDING BONDS AS A REPAYMENT TO THE GENERAL FUND AND APPLYING THOSE FUNDS TOWARDS IMPROVEMENTS ON THE ANIMAL CARE FACILITY WHEREAS, on June 11, 2009, Chula Vista Redevelopment Corporation approved a resolution recommending an appropriation of$400,000 from the 2008 Tax Allocation Refunding for repayment to the City of Chula Vista General Fund and applying those funds towards improvements of the Animal Care Facility (ACF); and WHEREAS, on June 16, 2009, City Council approved an agreement for the Pima Medical Institute (PMI) to partner with the City of Chula Vista to expand and improve the ACF; and WHEREAS, PM] is a private educational organization dedicated to providing medical training at a reasonable cost to its students; and WHEREAS, PMI will co-locate their veterinary school at the ACF and in return provide animal care including spay and neuter surgeries, x-ray services and general veterinary care at the ACF at no cost. NOW, THEREFORE, BE IT RESOLVED that the City Council and the Redevelopment Agency of the City of Chula Vista does hereby appropriate $400,000 from the 2008 Tax Allocation Refunding Bonds as a repayment to the General Fund and apply those funds towards improvements of the Animal Care Facility. Presented by Approved as to form by Richard A. Hopkins Director of Public Works c-2~_ Bart Meisfeld- Agency Counsel 9-4 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT (CIP) ENTITLED "CONSTRUCTION OF SITE IMPROVEMENTS AND RELOCATABLE TRAILERS AT THE ANIMAL CARE FACILITY (GG-207)"; APPROPRIATING $400,000 FROM THE GENERAL FUND; AMENDING THE FY09 CAPITAL IMPROVEMENT PROGRAM; AND APPROVING A DESIGN BUILD AGREEMENT WITH MJC CONSTRUCTION CO. FOR THE DESIGN AND CONSTRUCTION OF SITE IMPROVEMENTS AND RELOCA TABLE TRAILERS AT THE ANIMAL CARE FACILITY (GG-207) IN THE CITY OF CHULA VISTA, CA WHEREAS, on June 16, 2009, Council approved an agreement for the Pima Medical Institute (PMI) to partner with the City of Chula Vista to expand and improve the Animal Care Facility (ACF); and WHEREAS, on May 28, 2009, in accordance with Section 2.57 of the Chula Vista Municipal Code, the City requested proposals from three (3) pre-qualified Design Build firms to provide design, construction and installation of site improvements and City-owned relocatable trailers at the vacant site located next to the ACF; and WHEREAS, the project consists of site grading, installing utilities, a 17-space parking lot, relocation of two trailers, landscaping, security fencing and walkways; and WHEREAS, proposals were received from three firms: Heffler Company, Inc.; HTA & Construction Inc.; and MJC Construction Co.; and WHEREAS, based on the proposals, MJC Construction Co. was selected as the most responsi ve Design Builder. WHEREAS, MJC Construction Co. submitted a design and build proposal for $265,000.00. WHEREAS, MJC Construction Co. has the extensive construction experience required to meet the City's development schedule, the project cost estimates and the project's proposed completion date on August 22,2009. WHEREAS, the breakdown ofproject cost is as follows: 9-5 Description Amount Contract $265,000 Utilities $25,000 Staff $75,000 Contingency $35,000 Proiect Total $400,000 NOW, THEREFORE BE IT RESOLVED that the City Council of the City ofChulaVista does hereby establish a new Capital Improvement Project (CIP) entitled "Construction of Site Improvements and Relocatable Trailers at the Animal Care Facility (00-207)"; Appropriating $400,000 from the Oeneral Fund; amending the FY09 Capital Improvement Program; and approving a Design Build agreement with MJC Construction Co. for the design and Construction of site improvements and relocatable trailers at the Animal Care Facility (00-207) in the City of Chula Vista, CA. Presented by Approved by Richard A. Hopkins Director ofPub(ic Works ~c;.~/ Bart Meisfeld t? City Attorney 9-6 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE Ai"ID WILL BE FORMALL Y SIGNED UPON APPROVAL BY CITy] CO C Dated: 9-7 DESIGN/BUILD AGREEMENT This Agreement is made and entered into this June 23, 2009, for the purposes of reference only and executed on the date on which the last party signs, and is by and between THE CITY OF CHULA VISTA (herein "City"), a municipal corporation, and MJC. Construction, Co. ("Design Builder or D/B"). City and D/B may be referred to individually as "Party" and collectively as "Parties." RECITALS WHEREAS, the Animal Shelter is an existing facility to the City, and WHEREAS, the City of Chula Vista, in an on-going effort to expand the services to the community, has planned for Site Improvements and Relocatable Trailers at the Animal Shelter located at 1771 Fourth Avenue in the City ("Project"); and WHEREAS, Pursuant to ~ 2.57 of the City's Municipal Code, on May 28,2009 the City invited 3 Design-Build firms to present proposals for review, and WHEREAS, all 3 respondents submitted proposal packages and based upon the proposals, Design Builder was selected as the respondent who best met the design, monetary and time criteria of the project with whom City could negotiate an agreement; and NOW THEREFORE, in consideration of the mutual promises and covenants contained herein: THE PARTIES AGREE: Section 1: General Scope of Work to Be Performed bv D/B 1.1 In accordance with the terms set forth in this Agreement and the RFP, D/B shall design, construct, and install site improvements and city owned relocatable trailers as outlined in the Site Improvements and Relocatable Trailers at the Animal Shelter Project, attached as Exhibit 1, ("Project"). The Project is located on the 1771 Fourth Avenue in Chula Vista. 1.2 The services to be provided by D/B are generally to be performed in four "Phases"; the services to be provided in each Phase are specified elsewhere in this Agreement. The services provided by the D/B shall include, but not be limited to, all services outlined and described in Exhibit 1, titled "Design/Build Services". 1.3 The D/B shall: Page 1 9-8 1.3.1 Perform all services, work and obligations as described herein for the Guaranteed Maximum Price (GMP), which shall include Design Services and General Conditions necessary to provide a fully completed and functional Project. D/B shall perform all Design Services and General Conditions for the not to exceed amount of nine thousand eight hundred sixty six dollars and sixty cents ($ 9,866.60). At 90% complete construction documents a GMP will be established pursuant to Section 13 of this agreement, which will . include, but not be limited to, the cost for all labor, equipment, and material to design and build a fully functional Project in accordance with all applicable rules, regulations, and laws. The D/B fee shall be 8% of hard construction costs and the bond cost shall be 1.2 % of hard construction costs. Any costs incurred by D/B 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 Sections 9 and 14 of this agreement. All funds remaining in the GMP at the completion of the project shall belong to the City. 1.3.2 Substantial Completion: Substantial Completion shall be achieved by August 22, 2009. Substantial Completion shall be that stage in the progress of the construction when all Work on the Project is sufficiently complete in accordance with 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 and have been initially tested, and are operationally functional, subject only to final testing, balancing and adjustments and normal Final Completion punch list Work. 1.3.3 Achieve "Final Completion" (as defined in S16.2) as established in the Project Schedule (Exhibit 2). Section 2: General Obliqations of City 2.1 City shall be obligated as follows: 2.1.1 Designate a representative (or representatives) who is authorized to act on behalf of City with respect to the Project, except as to those decisions specified herein or by law that require authorization by the Chula Vista City Council; 2.1.2 Make decisions with reasonable promptness to avoid delay in the orderly progress of D/B's services per the Project Schedule Page 2 9-9 ~ 2.1.3 Pay for and cause to be completed all necessary environmental studies and obtain environmental approvals andlor permits with reasonable promptness to avoid delay to the orderly progress of D/B's performance per the Project Schedule; 2.1.4 At the request of D/B, City will use its best efforts to provide D/B with any available information about the Project Site geotechnical soil conditions; it will, however, be the responsibility of D/B to take all reasonable steps to verify all such information as it deems necessary to perform its services under this Agreement. City does not warranty to D/B the accuracy or completeness of any such information. 2.1.5 Cooperate with D/B in identifying, processing and securing required permits, licenses and inspections in a timely fashion; however, this duty to cooperate does not relieve D/B of its primary obligations to identify, apply for and secure all necessary permits (except as provided in 2.1.3), licenses and inspections in a timely manner. 2.1.6 Make payments to D/B in the amounts and in accordance with the terms set forth below. 2.1.7 Issue Certificate of Substantial Completion when City reasonably determines the Project has achieved Substantial Completion as defined below in Section 16.1. 2.1.8 Issue a Notice of Acceptance when City reasonably determines the Project has achieved Final Completion as defined in Section 16.2. 2.2 Citv Review Process. City shall review Design Development Drawings (ODD's), 50% Construction Drawings (CD's), 70% CD's and 90% CD's which shall allow construction of Project in conformity with the Approved Master Plan for the Project. For each D/B submission, City shall have twenty (20) working days to review, approve, conditionally approve or deny. Section 3: General Obliqations of D/B 3.1 D/B shall be obligated as follows: 3.1.1 At all times in performing its services under this Agreement to design and deliver the best possible Project consistent with standard of care in Section 3.3 that satisfies the time, monetary, quality and design parameters set forth in this Agreement; Page 3 9-10 3.1.2 Design and construct the Project on time, consistent with time frames set forth in the Project Schedule and in such a manner that the GMP or Contract Time of the Project shall not be exceeded, but 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 (5) 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 ordirection. D/B shall provide complete and accurate pricing within ten (10) calendar days of said discovery. 3.1.3 Design Consultants. D/B shall only use those individuals, firms, or entities identified in the submitted and approved RFP to perform the design services under this Agreement. Such Design Consultants shall be qualified, licensed and sufficiently experienced architects, engineers, and other professionals. 3.1.3.1 Substitution. D/B shall not substitute any Design Consultant absent the prior written consent of the City. 3.1.3.2 D/B Continue Obligation. Regardless of which entity performs the design services, D/B shall remain responsible and liable for all Services and the Performance of all Services under this Agreement 3.1.4 Perform all construction on the Project utilizing subcontractors appropriately licensed by the California Contractors State License Board or other required agency; 3.1.5 Perform all services as expeditiously as is consistent with reasonable skill and care and shall complete the services within each and all of the time periods set forth in this Agreement; 3.1.6 Comply with the California 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; 3.1.7 Study all applicable laws, codes, ordinances, rules, orders, regulations, and statutes affecting the Project, including but not limited to, zoning, environmental, building, fire and safety codes and coverage, density and density ratios and lien laws, and comply with them in performance of its services. D/B shall ensure that within the established GMP that the Project conforms to all applicable federal, Page 4 9-11 state and local laws, statutes, ordinances, rules, regulations, orders or other legal requirements, (collectively "Governmental Requirements") existing as of the date ofthis Agreement. However, the City recognizes that Governmental Requirements and their interpretations by governmental officials ("Code Authority") are often subject to change at any time, even after issuance of a building permit. If, after the date of this Agreement, modifications to the Project are required because of a change in Governmental Requirements or their interpretation by a Code Authority which had not previously been given, or which if given, was different than a prior interpretation of a Code Authority, D/B shall make the required modifications to comply with the same. However, in the event of such an occurrence, the GMP and Contract Time may be subject to an adjustment in accordance with Section 14. Nothing contained in this paragraph shall relieve D/B of its obligations to modify the Project at its own expense where D/B has failed to construct the Project in compliance with Governmental Requirements applicable as of the date of this Agreement. 3.1.8 Control dust and noise in accordance with the provisions in Section 7.1.18 of the 2000 Edition of the Standard Specifications for Public Works Construction, City Ordinances and this Agreement; 3.1.9 Use reasonable care to avoid damaging existing buildings, equipment and vegetation adjacent to the Project Site. If 0/8 causes damage to any of this property, 0/8 shall replace or repair said property at no expense to City and shall not be a basis for seeking an adjustment to the GMP or Contract Time. 0/8 agrees to indemnify City for any and all fines, penalties, liabilities, cost imposed upon City, its officers, employees and agents as a result of this Project. 3.1.10 To obtain all permits necessary to complete the Project. City shall pay cost of permits. D/B shall be responsible for obtaining and paying for all permits normally obtained . by the trades or subcontractors. 3.1.11 Conform its design to the requirements of the Americans With Disabilities Act Accessibility Guidelines ("ADAAG") and the Americans With Disabilities Act ("ADA"). 3.1.12 Seek and obtain written approval from the City of the drawings for each of the following phases: (1) ODD (2) 50% CD's (3) 70% CD's and (4) 90% CD's. Said approval shall be evidenced by written notice to proceed with the subsequent phase. Page 5 9-12 3.1.13 Provide cost estimating and value engineering services, which take into consideration long-range maintenance costs, energy efficiency, and impact operation of the Project. Provide cost estimates to the City at ODD's, 50% CD's, 70% CD's and 90% CD's. Provide final cost estimate, in four copies, to the City with Final Construction Documents. 3.1.14 Review soils and geotechnical reports relating to the Project Site; and detenmine and advise City if any further subsurface investigations are warranted. If such further investigations are authorized by City, D/B shall perform said investigations. The costs of said investigations are Reimbursable Costs to be paid by the City without markup, pursuant to Section 13. 3.1.15 Be fully responsible for all additive costs, damages, and liabilities resulting from errors or omissions beyond the standard of care defined in Section 3.3 by D/B or D/B's agents, employees, design consultants and contractors; such costs, damages and liabilities shall not be chargeable to the City nor shall they be a basis for seeking an adjustment in the GMP. 3.1.16 Seek and obtain written approval from the City of the drawings for each of the following phases: (1) schematic; (2) design development and (3) construction drawings. Said approval shall be evidenced by written notice to proceed with the subsequent phase. 3.2 D/B agrees to fully assume all risks, and costs associated with such risks, in performing the services and meeting the obligations under this Agreement. 3.2.1 Unanticipated subsurface site conditions 3.2.1.1 City assumes risks for unanticipated subsurface site conditions provided D/B notifies City in writing within five (5) calendar days of discovery if D/B believes it has uncovered or revealed a condition which: 3.2.1.1.1 differs materially from that indicated in the soils and geotechnical reports furnished by City, or 3.2.1.1.2 is of an unusual nature and differs materially from conditions ordinarily encountered and generally recognized as inherent in the work required by Agreement. Page 6 9-13 3:2.1.2 Upon receipt of written notice, City shall promptly investigate and if it determines the conditions do materially differ, requiring a change in the Work, City shall commence the processing of a change order pursuant to Section 14. If City determines there is no bona fide Work scope change or is a minor change, which does not impact GMP or Contract Time, City shall notify D/B within ten (10) calendar days. 3.2.1.3 D/B shall not be entitled to an adjustment in the GMP or Contract Time if D/B knew or should have known of the existence of such conditions at the time D/B submitted and agreed to GMP or Contract Time; or the existence of such condition could reasonably have been discovered' as a result of D/B's obligations pursuant to Section 3.1.14. 3.3 D/B shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. Compliance with this section by D/B shall not in any way excuse or limit D/B's obligations to fully comply with all other terms in this Agreement. 3.3.1 D/B warrants that at least one member of the D/B team shall be licensed by the California Contractor's State License Board 'as a General Building Contractor. D/B is to provide a list of the responsible people within their orgariizations performing services, which shall include their qualifications and their function, for approval by the City prior to start of construction. City and D/B shall establish "key personnel" who shall remain on the Project until Final Completion. If any such "key personnel" leave the employment of D/B, City shall have the right to approve the replacement personnel. D/B shall comply with all licensing requirements of the State of California, County of San Diego, and City of Chula Vista. 3.3.2 D/B shall not replace Project Manager, Landscape Architect, and Project Architect at any phase of the Project. The individual Project Manager, Landscape architect and Project Architect are identified in Exhibit 1. Such persons shall not be changed or substituted from the Project, or cease to be fully committed to the Project as deemed necessary by the City in its reasonable discretion, without the prior written consent or instruction of the City. Any violation of the terms and provisions of this Section shall constitute a Material Default. 3.3.3 City Right to Remove Project Manager, Landscape Architect and Project Architect. Notwithstanding the foregoing provisions of Section Page 7 9-14 3.3, if the Individual Project Manager, Landscape Architect or Project Architect, for good cause, proves not to be satisfactory to the City, upon written notice from the City to the General Contractor, such person or person shall be promptly replaced by a person who is acceptable to the City in accordance with the procedures set forth below. 3.3.4 Replacement Selection of Project Manager, Landscape Architect, and/or Project Architect. Within five (5) working days after receipt of a notice from the City requesting the replacement of any Individual Project Manager or Project Architect, or promptly following the discovery by the Design Build Team that any Individual Project Manager, Landscape Architect or Project Architect is leaving the employ of the General Contractor or Architect, as the case may be, the replacement/substitution (together with such person's resume and other information regarding such person's experience and qualifications) shall be submitted to the City for its approval The replacement/substitution shall commence work on the Project no later than five (5) calendar days following the City's approval of such replacement, which approval shall not be unreasonably withheld. In the event that the City and Design Build Team cannot agree as to the substitution of replacement of the Individual, the City shall be entitled to terminate this Agreement for cause. 3.4 DfB shall cooperate with City in obtaining Environmental approvals and/or permits. 3.5 DfB agrees and acknowledges thatthe City Representative is the only person with authority to approve additions or modifications to Project. Any costs or delays resulting from or associated with additions or modifications implemented without the written authorization of City Representative shall be borne exclusively by DfB and not be grounds for an increase in GMP or Contract Time unless necessary to protect public health, safety or property. 3.6 DfB team is to provide progress photographs taken at regular intervals throughout the Project. Photographic documentation shall depict an overview of Project site showing work in progress. Dates and times to be documented. Copies of documentation shall be transmitted to the City monthly. The costs are Reimbursable Costs to be paid by the City without markup, pursuant to Section 13.3. 3.7 D/B shall fully cooperate with City Representative and any of its agents assigned to this project. Section 4: Work Restriction and Biddinq Requirement Page 8 9-15 4.1 D/B shall determine how best to package portions of the work for purposes of bidding. D/B shall be responsible for selectively bidding all construction work to others and for entering into subcontracts, in D/B's own name, with the bidder who in D/B's discretion best meets the monetary, time, and performance requirement of the Project. D/B is required to submit a summary of bid results for each bid package. D/B shall be responsible for ensuring that these contracts fully comply with all applicable local, state and federal laws, some but not all dfwhich are listed below. 4.2 D/B shall hear 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 resoluticin) and the outcome of said protests Section 5: D/B's Phase I Services and Obliqations - Desiqn Development 5.1 D/B's services in Phase I shall include, but are not limited to the following: 5.1.1 Continue to develop and refine project requirements and review such requirements with the City. 5.1.2 Prepare complete ODD's such that the ODD include, without limitation, the following: 5.1.2.1 Site plan with pertinent notes and dimensions indicating property line; existing public streets, sidewalks, curb cuts, other public improvements; required setbacks; service, trash, fire lane and truck access, adjacent buildings, building outline; basketball courts, multi-use sports field, softball field, informal skate area, play areas, shelters, landscape and site elements. 5.1.2.2 Floor plans including graphically demonstrating interior and exterior walls and fenestration with notes, dimensions and. grid lines; room names, structural bay spacing with grids, critical dimensions and area calculations; 5.1.2.3 Roof plans including detailed notes, dimensions, mechanical equipment locations, define material for mechanical screens, skylights and roof access, roof . materials, roof drainage and establish window washing concept; 5.1.2.4 Building sections including vertical dimensions, floor assembly thickness showing known structural elements, notes and dimensions. Page 9 9-16 5.1.2.5 Exterior elevations including material references and extent; visible roof top elements; existing and new line of grade; indicate of floors with leader lines; and vertical dimensions; notes, dimensions and grid lines. 5.1.2.6 Wall sections including all wall sections, dimensions, horizontal element offsets, and guide to exterior face of wall; dimensions, vertical floor to floor, floor to window head and sill and floor to ceiling; structural elements and assemblies; interior and exterior wall finishes; and wall and roof assembly; 5.1.2.7 Outline specifications, written description of Animal Care Facility Site Improvements and Relocatable Trailers and components including site work. 5.1.2.8 Verify all code compliance including building 'construction type, occupancy sprinkler requirements, existing, zoning and other agency conformance and ADA. 5.1.2.9 Delivery of 3D rendered images, color and material boards, reflected ceiling plans, and special system or equipment plans. 5.2 Prepare and submit to City detailed cost estimates with ODD. 5.3 Submit completed ODD to City. Obtain comments from City and make revisions to ODD as required. Obtain written approval or conditional approval from City to proceed to Phase II Services. If conditional approval granted, D/B shall address all City comments or issues in the next set of drawings developed. City retains the right to withhold approval and require resubmittal of the ODD. 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. Section 6: Desion Phase Services and Oblioations - Construction Documents- Phase II 6.1 D/B's services in Phase II shall include but are not limited to the following: 6.1.1 D/B shall continue to develop and refine project requirements and review such requirements with City; Page 10 9-17 6.1.2 DIB 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 Site plan indicating general location and nature of on-site and the necessary off-site improvements. 6.1.2.1.2 Floor plans, including roof, showing space assignments, sizes, and location of installed or fixed and movable equipment which 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 structural members, dimensions, accommodation of functional systems. primary and 6.1.2.1.6 Typical wall sections sufficient to indicate materials, openings, and major features. 6.1.2.2 Structural drawings including plans and sections of sufficient clarity and detail to show the extent and type of structural system and dimensions, final structural design criteria, fouhdation design criteria, preliminary sizing of major structural components, critical coordination clearances and applicable material lists. 6.1.2.3 Mechanical plans and details; 6.1.2.4 Landscape and Irrigation plan and details; 6.1.2.5 Electrical plans and details; Page 11 9-18 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 Provide information customarily necessary for the use of those in the building trades; 6.1.2.9.2 Include documents customarily required to obtain regulatory agency approvals; 6.1.2.9.3 Provide color board and architectural rendering for required presentations. 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: 6.1.2.11.1 Criteria for lighting, electrical, communications audio visual, close circuit T.V., lighting controls and other electrical systems typical to civic facilities, the approximate sizes and capacities of major components transformers-panels-switch gears; 6.1.2.11.2 Preliminary equipment layouts, required space for equipment, required chases and clearances. Page 12 9-19 6.1.2.12 Sections through critical areas showing architectural, structural, mechanical elements. coordination of and electrical 6.1.2.13 Final specifications, including but not limited to the following: 6.1.2.13.1 Architectural: general description of the construction, including interior finishes, types and locations of acoustical. treatment, typical and special floor coverings and final exterior and interior material selection; 6.1.2.13.2 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 alarms and cable antenna television systems; 6.1.2.13.4 Landscape: General description ofthe construction, including plan materials, plant locations, maintenance period and irrigation systems. 6.1.2.13.5 Play Areas: Description of play equipment including installation procedures, type, color, finishes and locations. 6.1.2.13.6 Site Work: General description of the construction, including finishes, types of materials and locations. 6.1.2.13.7 Other: Such other documents to fix and describe the size, quality and character of the entire Project, its materials, and such other elements as shall be appropriate. 6.1.2.14 Plumbing drawings including location and quantity of fixtures, equipment sizes, room sizes for plumbing equipment, and final specifications as appropriate. Page 13 9-20 6.2 D/B shall determine and establish the sequence of construction, and if appropriate, identify separate bid packages to accomplish phased construction of the Project. 6.3 D/B shall prepare a detailed Critical Path Method schedule for all construction components of the Project (" Detailed Construction 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, completion of the of Site Improvements and Relocatable Trailers, all of which shall conform with the dates of Substantial Completion and Final Completion of Project. 6.4 Review as needed the CD's with the governmental authorities having jurisdiction over the Project. 6.5 Notify City within seven (7) days in writing whenever D/B reasonably believes that the cost ofthe Project is likely to exceed the GMP or Contract Time and include in said notice: 6.5.1 An itemized cost breakdown estimate; 6.5.2 A list of recommended revisions which D/B believes will bring Project within the GMP; 6.5.3 ,Assist City in reviewing the itemized cost breakdown and recommend revisions so that City can revise the scope of the Project so that the GMP is not exceeded. 6.5.4 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. 6.6 D/B shall develop and implement Project Management Plan and Procedures including: 6.6.1 Project status reports 6.6.2 Coordination/interface with the City and its other co nsu Itantslcontractors 6.6.3 Initial Design kickoff meeting to be held no later than five (5) working days from the Effective Date of Agreement. 6.6.4 Biweekly Design and Construction meetings Page 14 9-21 6.6.5 Interface and communications with other agencies 6.6.6 Vendors and subcontractors management 6.6.7 Document control 6.6.8 Schedule and budget control 6.6.9 Quality assurance and quality control 6.6.10 Throughout the design phase, the Consultant shall provide scheduling and cost control reports monthly. 6.7 Utilizing the 2000 Edition of the Standard Specifications for Public Works Construction, 2000 Edition of the Chula Vista Standard Special Provisions, 2000 Edition of the Regional Standards, 2002 Edition of the Chula Vista Construction Standards, the City's facility program, performance and design criteria, concept drawings, and reports incorporated herein by reference, DB shall: 6.7.1 Prepare construction drawings and specifications suitable for obtaining City-approved permits and to allow construction. Preparation of technical materials and equipment specifications for pre-purchase will be the responsibility of the DB. 6.7.2 Submit Construction Documents to the City for plan check, and make any changes therein as may be lawfully required. Obtain . general building permit and all ancillary permits and licenses, including but not limited to, demolition permits, improvement permits and grading permits. 6.7.3 Complete the design for all elements of the Project, including, but not limited to: civil, structural, architectural, mechanical, electrical, landscape, and specialty consulting areas. 6.7.4 Evaluate alternative structural and construction approaches to ensure economical designs, which optimize constructability yet meet all codes, architectural concepts, schematic designs, and standard specifications of the Project. Design and construction shall also meet all ADA requirements. 6.7.5 Provide additional site surveys and geotechnical investigations to the extent the DB determines they are necessary for final design. The survey information provided by the City is preliminary in nature and may not have sufficient accuracy or scope to support final design. Page 15 9-22 6.7.6 Furnish support to a City constructability review team at the 50%, 70% and 90% percent design completion stage. Incorporate the results of this review into the design. 6.7.7 Provide updated construction cost estimates at durations specified in this agreement to support Value Engineering (VE) and constructability reviews. Section?: Construction Phase Services - Phase III: 7.1 The D/B shall construct the Project in accordance with City-approved plans and specifications prepared by the DB to meet or exceed all requirements ofthe City provided program, schematic design and the performance criteria. The DB shall: 7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.1.8 Prepare and submit to City for review separate bid packages as D/B determines appropriate to enable the construction of the Project to proceed in an efficient and cost effective manner; Conduct competitive bidding for the respective bid packages. D/B shall require additive alternates for extended warranties in bid packages for roofing and HVAC systems. Schedule and conduct pre-bid conferences to answer questions posed by bidders. Said answers and any other information required to provide clarification to the Construction Documents during the bidding process shall be issued as written addenda and provided to all prospective bidders; Execute subcontracts, in D/B's own name, with the bidder best meeting the monetary, time, and performance requirements of the Project in the professional opinion of the O/B. Perform construction management and administration services during the construction of the Project; Be responsible for and coordinate all construction means, methods, techniques, sequences and procedures; Coordinate scheduling of bid packages, submittals, and all design and construction of the Project to ensure the efficient and orderly sequence of the construction of the Project. Monitor and report to the City on actual performance compared to schedule; 16 Page 9-23 7.1.9 . Give all notices and comply with laws, ordinances, rules, regulations, and lawful orders of public authorities relating to the Project; 7.1.10 Provide timely review and approval of shop drawings, samples of construction materials, product data, schedule submittals, and other submittal for compliance with the Construction Documents; keep City advised of all such matters being reviewed and approved by D/B; 7.1.11 Issue responses to Requests for Infonmation, substitution requests, and Change Order requests. Provide City with copy of all correspondence within twenty-four (24) hours of receipt. Conduct weekly review meetings with City to discuss these items. All change orders, including zero dollar change orders which require the use of D/B Contingency Fund, irrespective of impact on GMP and Contract Time shall require City approval; 7.1.12 Establish and maintain a quality control program with appropriate reviews and independent testing procedures to ensure compliance with the Construction Documents; 7.1.13 Coordinate all required inspections in such a manner that the progress of construction is not affected or impacted; 7.1.14 Correct any work which does not conform to the Construction Documents; 7.1.15 Keep City informed of the progress and quality of the design and construction of the Project; 7.1.16 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 7.1.17 Ensure Project is maintained in a clean, neat, sanitary and safe condition free from accumulation of waste materials or rubbish. Prior to Final Completion, D/B shall cause to be removed from and about the Project all tools, construction equipment, machinery, surplus materials, waste materials and rubbish; Page 17 9-24 7.1.17.1 !~J~~~~~~1'l~~)~~~~~1i~~~~~*~\l~1~li'i{~.i r c .c a5Ths)''':Wit' c u 'lIf~""",,;rnT., ..t.li,r!a.'.i~.I.':~.~.i.:,~.i.:[~.'i.l,9.~,I~~,~:.<.:",!y...ll,n,g.:r.~~.'i?"~~~,",":: ~,,!~,.l.g frafi'cn.is? n'aUi~~is'X\Hiecr (formerl"" 8acifrc):VVas e.SeNtc'es ~b:~:rQ\'~y1[~tJi~'gfi~~:1~1(~~t~ji1~t~4'6gE' -.- ..-->. ~. . -,,- ... 7.1.18 Develop a mutually agreed upon program to abate and minimize noise, dust, and disruption to access for parking and services at all times for adjacent business entities and residences; 7.1.19 Provide City with a Detailed Construction Schedule (DCS) on an approved software 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; 7.1.20 Conduct and prepare minutes for weekly Project team meetings with City and appropriate design and construction members; 7.1.21 Maintain a complete and up-to-date set of Construction Documents in the Projects field office at a[1 times during construction which reflect all changes and modifications, and at the end of construction prepare for City a complete set of Project documents, along with four reproducible, and one electronic set of drawings depicting As-Built conditions for Project; 7.1.22 Notify City in writing when D/B believes that the Project has achieved Final Completion; 7.1.23 Assemble and deliver to City upon Final Completion all records, documents, warranties, bonds, guarantees, maintenance/ service contracts, and maintenance and operating manuals; 7.1.24 Inspect the Project during the one-year general building warranty period, identify items requiring repair, and oversee those repairs. Inspect the each component at 180 and 360 days after Final Completion of Project and prepare reports to City, develop budgets and direct all repairs. Page 18 9-25 7.1.25 Conduct contractor meetings, as necessary, to provide technical input. 7.1.26 Provide interpretation of technical specifications and drawings. 7.1.27 When appropriate, witness testing and review materials and equipment testing results and provide comments regarding conformance with specification requirements. 7.1.28 Provide list of required shop drawing submittals. Review shop- drawing submittals for technical compliance and forward copy to City for review. 7.1.29 Assist during final acceptance process by furnishing final walk- through(s) and comments. 7.1.30 The DB shall be responsible for complete management, supervision, and reporting of all aspects of the construction of this Project. 7.1.31 The DB 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. 7.1.32 The DB resident staff shall ensure construction compliance with applicable local, state, and federal codes, building and environmental permit requirements, construction mitigation documents and enforcement of the Contract Documents. 7.1.33 The DB is responsible for the design, construction and all contract administration services during the construction of the Project in accordance with all applicable laws, regulations, and codes, including, but not limited to, the 1990 Americans with Disabilities Act [ADA] and Title 24 California Code of Regulations [Building Code] as defined in Section 18910 of California Health and Safety Code [Title 24]. The DB is responsible as a designer, employer, and City representative to comply with all portions of Title 24 and the ADA. , 7.1.34 The DB shall provide surveying, and other contracted services as required to complete project construction inspection and testing tasks. The City will provide special inspection services and periodic building inspections. DB is responsible for scheduling and coordinating all inspections and paying for all re-inspections. Page 19 9-26 7.1.35 The DB shall develop a project-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. 7.1.36 The DB shall implement and maintain an internal records management and document control system as required to support project operations. The DB shall provide records management and document control information in a manner consistent with the City's reporting system. 7.1.37 The DB shall administer and coordinate the project contract closeout process and shall resolve any warranty provision issues. The DB shall report progress of project contract closeout to the City in a manner consistent with the City's reporting system. 7.1.38 The DB shall administer and enforce the Environmental Mitigation Monitoring and Reporting Plan for the Project, if any. The DB shall report a record of environmental issues to the City in a manner consistent with the City's reporting system. 7.1.39 Prepare Operations Manual. 7.2 Unless the D/B receives the City's prior approval to substitute equal or better quality materials, the D/B warrants to City that materials and equipment incorporated in the Project will be new, unless otherwise specified, and that the Project will be of good quality, free from faults and defects, and in strict conformance with the Construction Documents and in accordance with Section 22. Section 8: Operation/Startup Phase Services - Phase IV 8.1.1 The DB shall prepare, submit for City review and written approval, and implement a Project Startup and Testing Plan for the Project. 8.1.2 The DB shall conduct Operator Training Sessions for facilities. 8.1.3 The DB shall supervise, manage, and coordinate all project startup and testing activities for mechanical systems within the provisions of the project Contract Documents. 8.1.4 The DB shall report progress of project startup and testing to the City in a manner consistent with the City's reporting system. 8.1.15 The DB shall report to the City all guarantee/warranty disputes. The DB shall proceed to resolve such disputes after having submitted to Page 20 9-27 Section 9: the City for review and approval the DB's approach for obtaining resolution for the dispute. Additional Services 9.1 City will have the right to direct D/B to perform Additional Services beyond those specified in this Agreement. D/B may provide Additional Services only if authorized in writing, in advance, by City and after complying with Section 9.4. The City may propose changes to the Work of a subcontractor after the bid has been awarded. In the event of a change of this nature, D/B will estimate the cost of the Change Order, assist City in developing drawings and specifications as necessary, solicit a revised bid, negotiate with the subcontractor, present a recommendation for a Change Order to City, and implement construction as approved by City. 9.2 For Additional Services which increase the Hard Construction Costs, design costs, or other reasonably necessary costs of the Project, D/B shall be paid the D/B fee of 8%of hard construction costs, 1.2% of hard construction cost for bonding and actual costs for liability insurance for the additional services. 9.3 For additional services, which result in an extension of the Substantial Completion date, D/B shall be paid a fee equal to the number of working days the Substantial Completion date is extended multiplied by the daily prorated amount of the general conditions fee included within the GMP. 9.4 If at any time D/B contends that it is being asked to perform Additional Services, it shall give City written notice 5 days prior to performing said services indicatin'g that D/B intends to seek additional compensation beyond the DIB Fixed Fee. Furnishing advance written notice shall be a condition precedent to being able to seek additional compensation from City. . Section 10: Bonds 10.1 Bonds. D/B shall furnish performance and payment bonds with the names of the obligees designated as the City in the amount set forth below, as security for the faithful performance and payment of all D/B's obligations under the Agreement. D/B shall also furnish such other bonds as are required by this Agreement. 10.1.1 Payment Bond. DIB shall provide City with a Payment (material and labor) Bond in favor of City for one hundred percent (100%) of the Hard Construction Costs. 10.1.2 Performance Bond. DIB shall provide City with a Faithful Performance Bond in favor of the City for one hundred percent (100%) of the GMP. Page 21 9-28 10.2 Term. The Payment Bond shall remain in full force and effect at least until the Project is accepted by the City and all claims for materials and labor are paid, for a minimum of thirty (30) calendar days after the filing date of Notice of Completion, except as otherwise provided by law or regulation or by this Agreement. 10.3 Certificate of Agency. All bonds shall be signed by an agent and accompanied by a certified copy of such agent's authority to act. 10.4 Licensing and Rating. All bonds shall be in the form prescribed by City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, and whose underwriting limitation is sufficient to issue bonds in the 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. All bonds signed by an agent must be accompanied bya certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. 10.5 Insolvency or Bankruptcy. If the surety on any bond furnished by the O/B 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 another bond and surety, acceptable to the City. Section 11: Insurance 11.1 The insurance provisions herein shall not be construed to limit O/B's indemnity obligations contained in this Agreement. 11.2 D/B shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the O/B, his agents, representatives, employees or subconsultants. All subconsultants shall be required to comply with the applicable insurance provisions. The maintenance of proper coverage is a material element of the contract and that failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract. 11.3 Minimum Scope of Insurance 11.3.1 Coverage shall be at least as broad as: 11.3.1.1 Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) including Page 22 9-29 Insurance Services Office Form (G0009 11 88 Owners and Contractors Protective Liability Coverage Form - Coverage for Operations of Designated Contractor). 11.3.1.2 Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). 11.3.1.3 Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 11.3.1.3.1 Prior to the execution of the Contract by the City, 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" 11.3.1.4 Errors and Omissions Insurance. For all 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 architect/engineer(s) of record keep in full force and effect errors and omissions insurance providing coverage for professional liability with a combined single limit of one million d,ollars ($1,000,000) per claim and two million dollars ($2,000,000) annual aggregate. DIB shall ensure both that (i) this policy retroactive is on or before the date of commencement of the Project, and (ii) this policy has a reporting period of three (3) years after the date of completion or termination of this Agreement. DIB 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. 11.3.1.5 Builder's Risk Propertv Insurance: The City of Chula Vista will provide coverage for "all risk" Builder's Risk Insurance, excluding the peril of earthquake and flood, and subject to other policy terms, conditions and exclusions, Coverage will be provided for the Replacement Cost of Materials, Equipment and fixtures destined to become a permanent part of the Page 23 9-30 structure, Property in Transit and Property in Offsite Storage for construction in an amount not to exceed $265,000.10. Contractors and Subcontractors will be added to policy as Loss Payees as their interest may appear. 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 Contractor or Subcontractor. The $10,000 policy deductible amount will be the responsibility of Contractor and/or Subcontractor 11.4. Minimum Limits of Insurance 11.4.1 Contractor or appropriate subconsultant shall maintain limits no less than: 11.4.1.1 General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. (Including operations, products and completed operations.) 11.4.1.5 Builder's Risk $255,133.5 o Hard Construction Cost of Structure 11.5 Deductibles and Self-Insured Retentions 11.5.1 Any deductible or self-insured retentions must be declared to and approved by the City. 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 D/B shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. 11.6 Other Insurance Provisions 11.6.1 The general liability policy shall contain, or be endorsed to contain, the following provisions: 11.6.1.1 The City, its officers, officials, employees, and volunteers are to be covered as additional insureds using ISO Form CG 2010 or its equivalent, with respect to liability arising out of work or operations performed by or on behalf of the D/B including materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products / Completed Operations coverage. 11.6.1.2 For any claims related to this project the D/B's insurance coverage shall be the primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the D/B's insurance and shall not contribute with it. 11.6.1.3 Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Sections 2782 of the Civil Code. Page 25 9-32 11.6.1.4 Contractor's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract 11.7 Verification of Coverage 11.7.1 Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirernents. All certificates and endorsements are to be received and approved by the City before work cornmences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. 11.8 Subcontractors 11.8.1 All coverages for subcontractors or subconsultants shall be subject to all of the requirements stated herein. Subcontractors and Subconsultants shall be protected against risk of loss by rnaintaining insurance in the categories and at the lirnits required herein. Subcontractors and Subconsultants shall name City and DfB as additional insureds under its policies. 11.9 Cooperation. The DfB 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 rnay result in delays in progress payments to the DfB. 11.10 Prior to beginning Work under the Agreement, each and every Contractor of any tier shall furnish Certificates of Insurance satisfactory to the City. All such Certificates shall contain at least the following provisions: 11.10.1 Thirty (30) days written notice to the City prior to any cancellation, non-renewal or material reduction in coverage. 11.10.2 The words "will endeavor" and "but failure to rnail such notice shall impose no such obligation or liability of any kind upon the company, its agents or representatives" will be deleted from the Certificates. Page 26 9-33 11.10.3 Throughout the life of the Agreement, each and every Contractor of any tier shall pay for and maintain in full force and effect, with Insurers authorized by the California Insurance Commissioner to do business in the State of California, any policies required by this Agreement. 11.10.4 Any insurance provided for this project is to be placed with licensed insurers admitted to transaction business in the State of California with a current A.M. Best Rating of not less than A-:V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than AX. Any exceptions are at the sole discretion of the City and subject to written approval of the City. 11.11 Questions concerning the insurance requirements of this Agreement shall be directed to the City Representative. Section 12: Inspection 12.1 City shall be responsible for City inspection and material testing and' inspections, with reimbursement to be required by DIB for any re-inspections. The City shall either perform said inspection services with its own forces or contract with third parties. It shall be the responsibility ofD/B, however, to call for, coordinate and schedule all inspections. 12.2 City, its consultants, subcontractors, independent testing laboratories as well as other governmental agencies with jurisdictional interests will have access at reasonable times for this observation, inspecting and testing. DIB shall provide them proper and safe conditions for such access and advise them of DIB's safety procedures and programs so that they may comply. 12.3 City will make, or have made, such inspections and tests, as the City deems necessary to see that the Work is being accomplished in accordance with the requirements of the Construction Documents or shall in any way limit or modify DIB's indemnity obligations as provided for within this agreement. Unless otherwise specified, the cost of such inspection and testing will be borne by the City. In the event such inspections or tests reveal non-compliance with the requirements of the ' Construction Documents, DIB shall bear the cO,st of corrective measures deemed necessary by City, as well as the cost of subsequent re-inspection and re-testing, Neither observations by the City nor inspections, tests, or approvals by others shall relieve DIB from DIB's obligations to perform the Work in accordance with the Construction Documents. DIB shall give City timely notice of readiness of the Work Page 27 9-34 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. D/B shall give at least 24 hours notice for on-site inspection and five (5) days notice for off-site inspection. 12.4 City has the right to stop or suspend Work activities which will conceal or cover up D/B Work product which is to be inspected or tested, or which will interfere with the 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. Section 13: D/B GMP for Services and Reimbursements 13.1 D/B shall submit to City 90% Construction Documents ("CD's") for approval. Upon the approval of the 90% CD's, D/B shall, within ten (10) working days, submit a GMP for approval by City. The GMP shall include all Hard Construction Costs, . D/B Contingency Fund, Reimbursable Costs, and D/B Fixed Fee for the complete design and construction of the entire Project as specified in the 90% CD's; provided that: 13.1.1 The GMP shall not exceed $265,000.10 and included within said GMP shall be no more than 9,866.60 for Design Services and General Conditions as previously identified in Section 1.3.1 of this agreement. 13.1.2 Said GMP shall be supported by a detailed itemized breakdown that shows: the D/B Fixed Fees and the expected Hard Construction Costs for each of the major trades working on the Project including labor, material expenses, equipment costs, and a reasonable D/B Contingency Fund. Said D/B contingency fund shall not exceed 5% of the Hard Construction Costs. 13.1.3 All Hard Construction Costs included in the GMP are for direct Construction costs incurred in performing the work, including taxes, delivery and installation. City shall reimburse D/B for the exact amount of subcontract, self- performed "'Iork or invoice amount. No additional D/B markup, handling fees, overhead, or other charges are to be added or paid except as otherwise set forth in this agreement. Upon Final Completion of the Project, any amount of Hard Construction Costs or D/B Contingency Fund monies not utilized shall result in a deductive Change Order. 13.1.4 The GMP shall include a D/B Contingency Fund which can be used by the D/B with City approval. If the Parties mutually agree that there is a sufficient surplus, the D/B Contingency Fund will be Page 28 9-35 available to provide additional funds for Change Orders as provided for in Sections 7 and 14 of this Agreement. This Contingency Fund will not be available for: (1) Work required due to D/B's and/or Contractors/subcontractors failure to perform according to the terms of this Agreement and/or in compliance with the Construction Documents, or (2) uninsured losses resulting from the negligence of D/B or its Contractors/subcontractors. All change orders, including zero dollar change orders, which require the use of the D/B Contingency Fund, shall require City approval. The City reserves the right to seek reimbursements for any funds used due to errors or omissions of the Design Consultants. 13.1.5 D/B shall prepare, with the cooperation of the City, alternate bid items to assist in meeting the GMP; 13.2 Except as otherwise expressly provided in this Agreement, as full and complete compensation for performance of all services and obligations under this Agreement, D/B shall be compensated ("D/B GMP") by a sum to be determined at 90% construction documents. GMP shall include the not to exceed amount of $ 9,866.60 for General Conditions and Design Services. Said $ 9,866.60 for General Conditions and Design Services shall not be exceeded unless additional services are requested pursuant to S 7 above or a change order issued pursuant to S 14. Unless otherwise expressly provided in this Agreement, D/B GMP shall include full compensation for all costs of any type incurred by D/B in performing all services and obligations under this Agreement, including but not limited to the following: 13.2.1 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. 13.2.2 Estimating, value engineering and construction management; 13.2.3 Construction supervision and project management personnel,' including but not limited to superintendents, Project managers, Project secretaries, Project engineers, Project accountants, and all other D/B personnel wherever located; 13.2.4 All 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; Page 29 9-36 13.2.4.1 In no case shall the cumulative monthly rental charges to the Project for equipment and Small Tools used by the O/B exceed 90% of the fair market value of anyone piece of equipment or Small Tools. At City's option, the full price for equipment or Small Tools may be paid, and City may take possession upon completion of the Work. 13.2.5 All home-office and field overhead costs of any type including document control and retention; 13.2.6 All business license costs; 13.2.7 All profit D/B intends to earn under this Agreement. 13.2.8 All direct and incidental costs incurred by O/B, except for those specifically identified in Section 9. 13.3 O/B shall be reimbursed, without markup and only as specified in this Agreement for the following "Reimbursable Costs." 13.3.1 Any reimbursable cost expressly provided for elsewhere in this Agreement. 13.4 O/B agrees and acknowledges the City retains its full and complete discretion for all legislative actions, including any future appropriations necessary to complete this Project or fund this Agreement. As more fully provided in Section 26, the City may terminate this Agreement for any reason, including but not limited to, if City Council fails to appropriate sufficient funds or is unsuccessful at obtaining long term financing. Section 14: Chance in GMP and Contract Time 14.1 The GMP and Contract Time rnay only be changed by written Change Order. Change Orders shall be issued only under the following circumstances: . 14.1.1 The City directs O/B to perform Additional Services or City Changes as provided in Section 9. 14.1.2 For reasons expressly provided elsewhere in this Agreement. 14.2 The following procedure shall be followed for the issuance of Change Orders: 14.2.1 Upon the occurrence of any event that gives rise to a Change Order, OrB shall give the City notice of the same with 5 days. O/B shall not Page 30 9-37 proceed with any such services or work until such notice has been given to the City except if such services or work are necessary to protect public health, safety or property. 14.2.2 Unless otherwise directed by the City Representative in writing, before proceeding with any Change Order work D/B shall promptly provide the City with 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 D/B Fixed Fee, Reimbursable Costs or Hard Construction Costs. D/B shall also provide City with a realistic estimate of the impact, if any, the Change Order will have on the Contract Time. 14.2.3 Upon submission of the detailed estimates by the D/B, the Parties will attempt to negotiate an appropriate adjustment in GMP and Contract Time. If an agreement is reached, a Change Order reflecting the agreement will be executed by the Parties. If an agreement is not reached, the City shall have the option to direct the D/B to proceed with the subject services andlor work, during which time the D/B shall contemporaneously maintain accurate and complete records of all labor, material and equipment utilized in performing the subject services and/orwork. These records shall be submitted to the City and shall become the basis for continued negotiations between the Parties for an equitable adjustment to the GMP andlor Contract Time. 14.2.4 In the event there is any disagreement or dispute between the Parties as to whether the D/B is entitled to a Change Order or the amount of the Change Order, the matter shall be resolved in accordance with Section 33. 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 the subject of the Change Order, pending this resolution process. Instead, D/B shall continue diligently prosecuting all such services and work. 14.2.5 City may, in its sole discretion, adjust the GMP or Contract Time for any undisputed amount or time associated with the Change Order or Additional Services. Section 15: Pavment Terms 15.1 D/B shall submit certificate and application for payment to the City for Phase I, II, III and IV services as follows: Page 31 9-38 _ 15.1.1 $12,000.00 upon completion of Phase I Services as determined by the City. 15.1.2 $17,000.00 upon completion of all Phase II Services as detenmined by the City. 15.1.3 $ 236,000.00 upon completion of all Phase III Services as detenmined by the City. Retention for Phase I to be released 60 days after receipt of Building Permit. 15.1.4 $0 for Phase III Services for contract administration. Cost to be paid on a per month schedule by dividing cost by construction duration. 15.1.5 In the event City solicits andlor approves Design Documents that materially differ from the Designs called for in the RFP, compensation shall be set pursuant to provision for additional services set forth in Sections 9 and 14. 15.2 DIB shall provide all services for the GMP. DIB shall submit certificate and application for payment to City on or before the 5th day of each calendar month for Phase III and IV services. The monthly payment application shall be based upon the percentage of completion of the Schedule of Values plus any Reimbursable Costs, less any payments previously made by the City and subject to the receipt of unconditional lien releases for all prior payments and if the invoiced amount is not disputed by City, it shall pay DIB ninety percent (90%) of payment application based upon the percentage complete of the Schedule of Values and 100% of the reimbursable costs within thirty (30) days after receipt of the fully documented invoice. City will withhold the remaining 10% as security for DIB's full perfonmance. 15.3 DIB shall develop and maintain an accurate system for tracking all Reimbursable Costs. Utilizing this system, DIB shall include with each month payment application an itemization of all such Reimbursable Costs actually incurred by DIB, during the previous month. If requested by the City, DIB shall provide all backup documentation supporting such Reimbursable Costs. 15.4 DIB shall develop and maintain an accurate system for tracking all Hard Construction Costs it incurs on the Project. Utilizing this system, DIB shall include with each monthly application for payment an itemization of all Hard Construction Costs actually incurred by DIB during the previous month. 15.5 DIB shall separately submit to City certificate and application for payment on a monthly basis for any authorized Additional Services perfonmed by D/B. Subject to the receipt of unconditional lien releases for all prior payments and if Additional Page 32 9-39 Services are not disputed by City, City shall pay ninety percent (90%) of the invoiced amount within thirty (30) days of receipt of fully complete invoice. City will withhold the remaining 10% as security for D/B's full performance. 15.6 Subject to Sections 15.8, City shall pay D/B the ten percent (10%) retention being withheld pursuant to Sections 15.2, and 15.5 as part of the "Final Payment" to D/B. Final Payment will be made thirty-five (35) days after Final Completion. 15.7 The City Manager will consider the release of the entire retention for subcontractors upon completion of the subcontractors' work and execution of a disclaimer and unconditional final lien release by the subcontractor. 15.8 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. Section 16: Proiect Completion 16.1 Substantial Completion shall be that stage in the progress of the construction when all Work on the Project is sufficiently complete in accordance with 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 and have been initially tested, and are operationally functional, subject only to final testing, balancing and adjustments and normal Final Completion punch[ist Work. 16.2 Final Completion shall be deemed to occur on the last of the following events: (1) recordation of a Notice of Completion for the Project; (2) acceptance of the Project by the City; (3) issuance of a final Certificate of Occupancy for the Project; (4) 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; (5) and delivery to City of a Certificate of Completion duly verified by D/B. 16.3 D/B shall provide City with a Certificate of Completion, certifying to City under penalty of perjury that the Project has been completed in accordance with the Construction Documents, all applicable building codes and regulations, a[1 permits, licenses, and certificates of inspection, use and occupancy, and ordinances relating to the Project. 16.4 D/B shall provide five sets of City final record drawing documents at the end of construction and one copy in electronic fonmat ("As-Built Drawings") and one copy of reproducible drawings. As-Built Drawings are to be accurate and legib[e records showing exact location by dimensions, and the exact depth by elevation of underground lines, valves, plugged tees, wiring and utilities. Page 33 9-40 16.5 D/B shall provide a copy of, or make available before destruction, all records (which includes all writings as defined in Evidence Code Section 250) to the City upon receipt or generation, which shall include' a copy of D/B's filing protocol. Section 17: Contract Time 17.1 The "Contract Time" shall be the number of calendar days stated in Section 1 for D/B to achieve Substantial Completion. 17.2 "Time is of the essence" with regard to Contract Time and all milestones listed in the Project Schedule (Exhibit 2). 17.3 The Contract Time may only be changed by a Change Order as set forth in Section 14. 17.4 Further, an extension in Contract Time will not be granted unless D/B can demonstrate through an analysis of the Project Schedule that the increases in the time to perform or complete the Project, or specified part of the Project, beyond the corresponding Contract Time arise from unforeseeable causes beyond the control and without the fault or negligence of D/B, its Design Consultants, and subcontractors or suppliers, and that such causes in fact lead to performance or completion of the Project, or specified part in question, beyond the corresponding Contract Time, despite D/B's reasonable and diligent actions to guard against those effects. 17.5 D/B carries the burden of proving an entitlement to an increase in the Contract Time. Delays attributable to and within the control of Design Consultants, or subcontractor or supplier shall be deemed to be delays within the control of D/B. No time extension will be allowed for such delays. An increase in Contract Time does not necessarily mean that D/B is due an increase in the GMP. Section 18: Late Completion 18.1 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 within the Contract Time, plus any extensions thereof allowed in accordance with Section 17.3. They also recognize the delays, expense, and difficulties involved in proving in a legal proceeding the actual loss suffered by City if the Project is not completed on time. Accordingly, instead of requiring any such proof, City and D/B agree that D/B shall pay as liquidated damages (but not as a penalty) for each calendar day of delay beyond the 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 91671 (b): $100 for each calendar Page 34 9-41 day. Liquidated Damages shall not be assessed after the date on which Substantial Completion is achieved pursuant to Section 16. Section 19: Richt to Modifv Work 19.1 . Without invalidating the Agreement and without notice to any surety, City may at any time or from time to time, order additions, deletions, or revisions in the Project: these additions, deletions, or revisions will be authorized by a written Change Order prepared and issued by City. Upon receipt of any such document, DIB shall promptly proceed with the Work involved which will be performed under the applicable conditions of the Construction Documents (except as otherwise specifically provided). 19.2 When City desires a change in the Project, City may issue a Request for Proposal to D/B. DIB will be required to respond within the time indicated by City. Section 20: Intentionally Omitted Section 21: Work Bv Others 21.1 City may perform otherwork related to the Project atthe Project Site by City's own forces, or let other direct contracts ("City Contractor"). The City will give DIB reasonable notice of its' intent to do such other work. DIB's work shall take priority over the City Contractors; but the Parties will use their best efforts to coordinate their work so as to minimize the disruption to each other's work and to allow City Contractor to proceed expeditiously. 21.2 If the proper execution or results of any part of DIB's work depends upon the work by the City or City Contractor, DIB shall promptly inspect and report to City in writing any apparent delays, defects, or deficiencies in the City's work that render it unavailable or unsuitable for such proper execution and results. DIB's failure to promptly report such delays, defects, or deficiencies in writing before commencement of the affected work, will constitute an acceptance of the City's work as fit and timely for integration with DIB's Work except for latent defects and deficiencies in the City's work for which DIB will not be responsible. 21.3 If DIB or any person or entity 'working for DIB causes damage to the City's or City Contractor's work, property, or person, or if any claim arising out of DIB's performance of the Project by any other contractor is made against DIB, by City, any other contractor, or any other person, DIB shall promptly repair andlor resolve said claim at no cost to City. Section 22: Warranties and Guarantees Page 35 9-42 22.1 D/B warrants and guarantees to City that materials and equipment incorporated into the Project will be new unless otherwise specified and that all work will be in strict accordance with the Construction Documents and will not be defective. Prompt notice of defects known to City shall be given to D/B. All Defective Work, whether or not in place, may be rejected, corrected, or accepted as reasonably directed by City, provided D/B shall not be entitled to an extension in Contract Time or increase in GMP because of any delay or increase in cost attributable to the rejection, correction or acceptance of said work. Defective work may be rejected even if approved by prior inspection. 22.2 The warranty period shall commence when the Certificate of Final Completion is issued (irrespective of beneficial use by City prior to Final Completion) and extend one (1) year after that date or whatever longer period may be prescribed by laws or regulations or by the terms of any applicable special guarantee or specific provision of the Construction Documents. 22.3 D/B is to provide any extra material for maintenance at the completion of the Project, including items such as carpeting, base, floor tile, ceiling tile, paint, and filters. 22.3.1 D/B is'to provide City one (1) set of operating and maintenance data manuals, fully bound and indexed, warranties, guarantees, and bonds. 22.4 Correction of Defective Work - If within the designated warranty period, or such longer period as may be required by laws or regulations, the Project or any part of the Project, is discovered to contain defective work, D/B shall promptly, without any reimbursement or adjustment in the GMP, and in accordance with City's written instructions, either correct that defective work, or if it has been rejected by City remove it from the Project and replace it with work which is not defective. If circumstances warrant it, including but not limited to, in an emergency, City or D/B may have the defective work corrected or the defective work removed and replaced. In that event, D/B shall not be allowed to recover any associated costs, and D/B shall reimburse City for all direct,'and indirect costs of City, and City shall be entitled to an appropriate decrease in the GMP, to withhold a setoff against amount recommended for payment, or make a claim on D/B's bond if D/B has been paid in full. 22.5 With respect to all warranties, express or implied, from subcontractors, manufacturers, or suppliers for Work performed and materials furnished under this Agreement, the D/B shall: Page 36 9-43 22.5.1 Obtain all warranties that would be given in normal commercial practice and as required by the City; 22.5.2 Require all warranties to be executed, in writing, for the benefit of City; 22.5.3 Enforce all warranties for the benefit of City, if directed by City; 22.5.4 In the event D/B's warranty under section 22.2 has expired, City may bring suit at its expense to enforce a subcontractor's, manufacturer's, or supplier's warranty; 22.5.5 D/B shall assign all subcontractor, supplier and manufacturer warranties including maintenance contracts from the installer for specialized equipment, such as elevators, escalators, movable partitions, equipment etc., to cover the limited warranty period to City at the expiration of the one year warranty; and Section 23: Use and Possession Prior to Completion 23.1 City shall have the right to take possession of or use any completed or partially completed part of the Work if mutually agreed upon by the parties. Before taking possession of or using any Work, City shall furnish D/B a list of items of Work remaining to be performed or corrected on those portions of the Work that City intends to take possession of or use. However, failure of City to list any item of Work shall not relieve D/B of responsibility for complying with the terms of this Agreement. City's possession or use shall not be deemed an acceptance of any Work under this Agreement, nor relieve the D/B of any of its obligations under this Agreement. 23.2 While City has such possession or use, D/B shall be relieved of the responsibility for the loss of or damage to the Work resulting from City's possession or use. If prior possession or use by City delays the progress of the Work or causes additional expense to D/B, an equitable adjustment shall be made in the GMP or the Contract Time, and the Agreement shall be modified in writing accordingly. Section 24: Personal Services and Non-Assiqnabilitv 24.1 This is a personal services Agreement and, therefore, D/B shall not alter the key employees or Design Consultants nor assign or transfer, voluntarily or involuntarily, any of its rights, duties or obligations under this Agreement except upon the prior written consent of City. Any such change, assignment or transfer without the prior written consent of the City shall be deemed null and void and constitute a material breach under this Agreement. Page 37 9-44 Section 25: Indemnification 25.1 To the fullest extent permitted by the law, D/B shall indemnify, defend, protect and hold harmless City, its elected and appointed officers, agents, employees, consultants, (collectively herein the "Indemnitees"), from and against all claims, demands, causes of action, damages, injuries, liabilities, losses and expenses (including, without limitation, reasonable attorneys' and consultants' fees and expenses) of any kind whatsoever, arising in whole or in part out of or resulting from D/B's performance of this Agreement, D/B's breach of this Agreement, or the alleged negligent acts or omissions of 0/8, its architects, engineers, other professionals and consultants, Contractors, suppliers or anyone directly or indirectly employed by any of them or anyone for whose acts they may be liable. The obligations ofthe D/Bunder this paragraph for errors or omissions, including those of the design professional subcontractors, which includes the Design Subcontractors, consultants, agents and employees thereof ("Design Subcontractors"), which arise from (1) the preparation or approval of maps, drawings, opinions, reports, surveys, designs or specifications, or (2) the giving of or the failure to give directions or instructions shall not be limited to the amount of coverage provided for in the professional liability insurance policy. If City is fully reimbursed by DB's insurance for any loss covered by this paragraph, D/B shall have no further obligation for such loss. 25.2 D/B's obligation to indemnify under section 25.1 shall not extend to such claims, demands, causes of action, damages, injuries, liabilities, losses and expenses, to the extent that such is the result of the active negligence or the willful misconduct of an Indemnitee. D/B's obligation to defend under section 25.1, if not covered by the insurance to be provided on the Project, shall.not extend to such claims, demands, causes of action, damages, injuries, liabilities, losses and expenses, or causes of actions, to the extent that such are caused by the active negligence or the willful misconduct of the Indemnitee, and from no other cause. 25.3 The D/B agrees, notwithstanding the above to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its elected and appointed officers, employees, agents and consultants from and against any and all claims, suits, demands, liabilities, losses, or costs, including reasonable attorney's fees and defense costs, resulting or accruing to any and all persons, firms, and any other legal entity, caused by, arising out of or in any way connected with the handling, removal, abatement, capping, migration (after handling, removal, abatement or capping) of, or disposal of any asbestos or hazardous or toxic substances, products or materials that exist on, about or adjacent to the jobsite, whether liability arises under breach of contract or warranty, tort, including negligence, strict liability or statutory liability or any other cause of action. D/B's obligation regarding asbestos or hazardous or toxic substances, products or Page 38 9-45 materials shall be limited to the proper removal within the Project boundaries and the proper disposal of such materials. 25.4 Indemnity under this Section 25 shall survive the termination of this Agreement Section 26: Riqht to Terminate and Suspend Work 26.1 Archaeoloqical and Paleontoloqical Discoveries. If a discovery is made of an archaeological or paleontological interest, D/B 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. 26.1.1 Discoveries which may be 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. 26.1.2 D/B shall be entitled to an extension of time and compensation in accordance with the provisions of this Agreement. 26.2 Termination of Aqreement bv 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 D/B shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to D/B of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. 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 property of the City, and D/B shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed amounts payable hereunder, and less any damages caused by D/B's breach. 26.2.1 In the event the Agreement is terminated in accordance with this Section, City may take possession of the Project and may complete the Project by whatever method or means City may select. 26.2.2 If the cost to complete the Project exceeds the balance, which would have been due, D/B shall pay the excess amount to City. Page 39 9-46 26.2.3 Riqhts of City Preserved. Where DIB's services have been so terminated by City, the termination will not affect any rights or remedies of City against DIB then existing or which may thereafter accrue. Any retention or payment of moneys due DIB by City will not release DIB from liability. It is agreed that termination hereafter will not in any way release, waiver, or abridge any rights the City has against DIB's performance bond surety. 26.2.4 Any dispute as to the amount due or owed to DIB upon termination under this section shall be resolved in accordance with Section 33. 26.3 Termination for Convenience bv City. City may terminate this Agreement at any time and for any reason, by giving specific written notice to DIB of such termination and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, DIB shall be entitled to receive just and equitable compensation, in the amount not to exceed that payable under this agreement for any satisfactory Work completed, including reasonable demobilization costs, to the effective date of such termination. DIB hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 26.3.1 Records and Documents Relatinq to Termination. Unless otherwise provided in the Agreement or by statute, DIB shall maintain all records and documents relating to the terminated portion of this Agreement for three (3) years after final settlement. This includes all books and other evidence bearing on DIB's costs and expenses under this Agreement. DIB shall make these records and documents available to City, at DIB's office, at all reasonable times, without any direct charge. If approved by the City Manager, photographs, electronic files, microphotographs, or other authentic reproductions may be maintained instead of original records and documents. 26.4 Upon receipt of the Notice ofTermination, DIB shall take any action that may be necessary, or that the City Manager may direct, for the protection and preservation of the property related to this Agreement that is in the possession of DIB and in which City has or may acquire an interest. 26.5 Payment to DIB Due to Termination - DIB and the City Manager may agree upon the whole or any part of the amount to be paid because of the termination. Page 40 9-47 The amount may include a fee proportional to the percentage of work satisfactorily completed. However, the agreed amount, exclusive of costs shown in section 26.9 below, may not exceed the total dollar amount authorized by City as reduced by the amount of payments previously made. If termination occurs during Phase I, II, or III, D/B shall only be entitled to the Fees for Phases I, II, or III, or a portion thereof, and no amount for Phase IV D/B Fixed Fee, except for Phase IV 0/8 fixed fee proportional to the percentage of work satisfactorily completed and authorized pursuant to Section 6. 26.6 Failure to Aqree on Pavment - If D/B and City fail to agree on the whole amount to be paid because of the termination of Project, City shall pay D/B the fair and reasonable amounts determined in good faith by City as follows, but without duplication of any amounts agreed to above: 26.6.1 The price for co'mpleted services accepted, including any retention, by City not previously paid; 26.6.2 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 on an audit of all Contractors' bills of materials and the timecards for Work actually performed; 26.6.3 A portion of the D/B Fixed Fee (overhead and profit) based on the percentage of Work completed on the Project; however, if D/B 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 settlement to reflect the indicated rate of loss; 26.6.4 D/B and Design Subcontractor services through the date of termination shall be paid based on actual time spent as documented on timecards. Expenses shall be paid based on invoice and receipts provided by 0/8; 26.6.5 Under no circumstances will D/B be entitled to any consideration for lost profit or lost opportunity costs. 26.7 If D/B does not agree that the amount determined by the City Manager is fair and reasonable and if D/B gives notice of such disagreement to City within thirty (30) days of receipt of payment, then the amount due shall be as later determined pursuant to the Dispute Resolution procedures in Section 33. 26.8 Payment for Property Destroved. Lost. Stolen or Damaqed - Except to the extent that City expressly assumed the risk of loss, the City Manager shall exclude Page 41 9-48 from the amounts payable to D/B under this Section, 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. 26.9 Deductions -In arriving at the amount due D/B under this section, there shall be deducted: 26.9.1 Any claim which City has against D/B under this Agreement; and 26.9.2 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 Termination of Aqreement bv D/B 26.10.1 D/B may terminate the Agreement upon ten (10) days written notice to City, whenever: 26.10.1.1 The Project has been suspended under the provisions of Section 26.1 or 26.2, for more than ninety (90) consecutive days through no fault or negligence of D/B, and notice to resume Work or to terminate the Agreement has not been received from City within this time period; or, 26.10.1.1 City should fail to pay D/B any monies due it in accordance with the terms of this Agreement and within ninety (90) days after presentation to City by D/B of a request therefore, unless within said 1 O-day period City shall have remedied the condition upon which the payment delay was based. 26.10.2 In the event of such termination, D/B shall have no claims against City except for those claims specifically enumerated in Section 26.9, herein, and as determined in accordance with the requirements of said Section. Section 27: Independent Contractor 27.1 D/B and any Design Consultant, Contractor, Subcontractor, agent or employee of D/B, shall act as an independent contractor and not as an agent, officer or employee of City. Except as expressly provided in this Agreement, City assumes no liability for D/B's actions and performance; in particular, but without limitation, City assumes no responsibility for paying any taxes, bonds, payments or other Page 42 9-49 commitments, implied or explicit, by or for D/B. D/B acknowledges that it is aware that because it is an independent contractor, City is making no deductions from the fees for services being paid to D/B and that City is not contributing to any fund on the behalf of D/B. D/B disclaims the right to any type of additional fee or benefits. Section 28: Independent Judqment 28.1 Unless otherwise directed in writing by City, D/B shall, in providing the professional services required by this Agreement, arrive at conclusions with respect to the rendition of information, advice and recommendations, independent of the control and direction of City, other than normal contract monitoring; D/B, however, shall possess no authority with respect to any City decision beyond rendition of such information, advice and recommendations. D/B shall not have the authority to act as an agent on behalf of City unless specifically authorized to do so by City in writing. Section 29: Maintenance of Records and Accountinq 29.1 D/B shall maintain, during the Project and for a period of three (3) years after completion of the Project, accurate and organized records of all costs of any type and all services performed under this Agreement. City will have the right at any time, including during the performance of all Phases of the Project to audit and copy all such records. Section 30: Ownership of Documents 30.1 All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. Section 31: Force Maieure 31.1 Any party to this Agreement may be excused for any delay or failure to perform its duties and obligations under this Agreement, except for obligations to pay money, but only to the extent that such failure or delay is caused by an Event of Force Majeure as set forth in section 31.2. If an Event of Force Majeure set forth in section 31.2 causes a delay or failure in performance of only a portion of the obligations of a Party under this Agreement, then only that portion of performance Page 43 9-50 which was delayed or prevented by such cause shall be deemed excused, and the performance of all other obligations of a Party not so delayed shall not be excused by an Event of Force Majeure. Delay or failure in performance of all other obligations of a Party not so delayed shall not be excused by such Event of Force Majeure. Delay or failure in performance by a Party which is the result of an Event of Force Majeure set forth in section 31.2 shall be deemed excused for a period no longer than the delay or failure in performance caused by such Event. 31.2 An Event of Force Majeure means an occurrence beyond the control and without the fault or negligence of a Party, including but not limited to unusually severe weather, flood, earthquake, fire, lightning, and other natural catastrophes, acts of God or the public enemy, war, terrorist act, riot, insurrection, civil disturbance or disobedience, strike or labor dispute for which D/B is not responsible, expropriation or confiscation of facilities, changes of applicable law, or sabotage of facilities, so long as such Party makes good faith and reasonable efforts to remedy the delays orfailures in performance caused thereby. However, D/B, in developing the GMP and Project Schedule, has incorporated three (3) days for anticipated adverse weather days that may disrupt work on the Project; D/B shall be entitled to relief under this Section for adverse weather only to the extent adverse weather days exceed this amount of days. 31.3 A Party shall give written notice to the other Party as soon after becoming aware of the delay or failure in performance caused by an Event of Force Majeure as is reasonably possible, but in any event within five (5) working days after Party becomes aware of such delay or failure. 31.4 No Event of Force Majeure shall be a basis for monetary adjustment to the GMP. Costs incurred by the D/B as a result of a Force Majeure Event will be r,eimbursed according to the terms of this Agreement from the Contingency Fund. Section 32: Hazardous Materials 32.1 In the event the D/B or any other party encounters asbestos or hazardous or toxic materials at the Project Site, or should it become known in any way that such materials may be present at the Project Site or any adjacent areas that may affect the performance of the D/B's services, the D/B may, at his or her option and without liability for consequential or any other damages, suspend performance of services on the Project until the City retains appropriate specialist consultant(s) or contractor(s) to identify, abate andlor remove the hazardous or toxic materials, and warrant that the Project Site is in full compliance with applicable laws and regulations. Section 33: Disputes Page 44 9-51 33.1 All claims, counterclaims, disputes, and other matters in question arising under, or relating to, the Agreement or the breach thereof shall be processed in accordance with the provisions of this Section, unless specifically addressed by another provision of this Agreement. 33.2 D/B shall submit its written request for a Change Order to City pursuant to Section 14. City shall make a determination on D/B's request in writing within 7 days of receipt of request and all supporting data. Said Change Order shall be made in good faith and accurately reflect the adjustment in GMP or Contract Time for which D/B believes City is liable, and covers all costs and delays to which D/B believes it is entitled as a result of the occurrence of the claimed event. All requests for adjustment in Contract Time shall include an analysis of the Master Construction Schedule and the impact of the claimed work on specific activities on the Master Construction Schedule. 33.3 If D/B disagrees with City's determination, not suit shall be filed against the City unless a claim has been presented in writing and filed with the City in accordance with the procedures and subject to the requirements, including time for presentation of claims set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of the same. 33.4 Pending final resolution of any claim, including litigation, D/B shall proceed diligently with performance of the Project, and comply with any direction of City. Section 34: Notices 34.1 All notices, demands or other communications hereunder shall be given or made in writing and shall be delivered personally or sent by courier or registered or certified mail, return receipt requested, postage prepaid, addressed to the Party to whom they are directed at the following addresses, or at such other addresses as may be designated by notice from such Party: (i) To CITY: City Attorney 276 Fourth Avenue Chula Vista, CA 91910 Tel: (619) 691-5037 Fax: (619) 409-5823 Department of Public Works and Engineering 276 Fourth Avenue Page 45 9-52 Chula Vista, CA 91910 Tel: (619) 476-5368 Fax: 619) 691-5171 (ii) To D/B: MJC Construction, Co. 3015 Sylvia Street Bonita, CA 91902 Tel: 619-472-5619 Fax: 619-996-2116 Any notice, demand or other communication given or made solely by mail in the manner prescribed in this Section shall be deemed to have been given and to be effective three (3) days after the date of such mailing; provided, however, that any notice, demand or other communication which would otherwise be deemed to have been given on a day which is not a working day shall be deemed to have been given on the next subsequent working day. Section 35: Miscellaneous Terms 35.1 Representations: Each Party hereto declares and represents that in entering into this Agreement it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each Party further declares and represents that this Agreement is being made without reliance upon any statement or representation of any other Party not contained herein, or any representative, agent or attorney of any other Party. 35.2 Severabilitv: If any term or condition of this Agreement is held to any extent to be invalid or unenforceable, all the remaining terms and conditions shall be enforceable to the fullest extent permitted by law. 35.3 Entire Aoreement: This Agreement contains the entire agreement, between the Parties and supersedes all prior negotiations, discussions, obligations and rights of the Parties in respect of each other regarding the subject matter of this Agreement. There is no other written or oral"understanding between the Parties. No modification, amendment or alteration of this Agreement shall be valid unless it is in writing and signed by the Parties hereto. 35.4 Draftino Ambiouities: The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and that the decision of whether or not to seek the Page 46 9-53 advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each of the Parties hereto. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement. 35.5 Applicable Law: The formation, interpretation and performance of this Agreement shall be governed by the laws of the State of California. Venue for mediation, arbitration and/or actions arising out of this Agreement shall be in the City of Chula Vista, California. 35.6 Waiver: Unless otherwise expressly provided herein, no delay or omission by the Parties hereto in exercising any right or remedy provided for herein shall constitute a waiver of such right or remedy, nor shall it be construed as a bar to or a waiver of any such right or remedy on any future occasion. 35.7 Effect of Headinqs: Headings appearing in this Agreement are inserted for convenience of reference only, and shall in no way be construed to be interpretations of the provisions hereof. 35.8 Amendments: This Agreement may be modified, amended or supplemented only by the mutual written agreement of the Parties hereto. 35.9 Authorization and Compliance: Each Party represents that it IS duly authorized to execute and carry out the provisions of this Agreement. 35.10 Further Assurances: The Parties agree to do such further acts an,d things and execute and deliver such additional agreements and instruments as the other may reasonably require to consummate, evidence or confirm the agreements contained herein in the manner contemplated hereby. 35.11 Counterparts: This Agreement may be executed by the Parties in one or more counterparts, all of which takeri together shall constitute one and the same instrument. The facsimile signatures of the Parties shall be deemed to constitute original signatures, and facsimile copies hereof shall be deemed to constitute duplicate original counterparts. 35.12 Recitals Exhibits and Glossarv of Terms: All Recitals, Exhibits, and Glossary of Terms are incorporated herein by reference into this Agreement. 35.13 Third Partv Beneficiarv: Nothing within this Agreement shall create a contractual relationship between the City and any third party. [NEXT PAGE IS SIGNATURE PAGE] Page 47 9-54 SIGNATURE PAGE TO DESIGN/BUILD AGREEMENT CITY OF CHULA VISTA MJC Construction, Co. By: By: " Cheryl Cox, Mayor Javier Jimenez, President ATTEST: Donna Norris, City Clerk Approved as to form by: Bart Miesfeld, City Attorney Page 48 9-55 I" ill "1 'II ! ili IJ! :11 !: CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT ,t Iii ii, ", III I' ,il III' II II, III " I' :I State of California County of S<"rr' 1> 1E-4 a On '-'\\\.;o[D'1 before me, \:"V.'" '-/~/'-' \ , N"s-;-A-f'.-,[' (Here insert mime and title afthe officer) personally appeared \kJl~ "3'"LM..E;>-J E L- who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person( s) acted, executed the instrument I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seaL Sig~~~'- ------.~ (Notary Seal) @"TOMYAOTANI ,..-.... Commi"lon # 17339110 . :; : Of?, NotC"ll'ubllC . California ~ i RlvDl1lde County l__.~~~~ . !) ADDITIONAL OPTIONAL INFORlVIATION INSTRUCTIONS FOR COlVlPLETING THIS FORlY! (Title Of description of attached document continued) Any aclmowledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer). Please check the document carefully for proper notarial wording and attach this form if required. I' II 11 I I I II I I I DESCRIPTION OF THE ATTACHED DOCUMENT D \?S I G, r-J I f:yJ I L-j) Prt.n f1-.SBv\. OV (Title or description of attached document) (Additional information) State and County information must be the State and County where the document signer(s} personally appeared before the notary public for acknowledgment. Date ofrrotarization must be the date that the signer(s} personally appeared which must also be the same date the acknowledgment is completed. The notary public must print his or her name as it appears within his or her cormnission followed by a comma and then your title (notary public). Print the name(s) of document signer(s) who personally appear at the time of notarization. Indicate the correct singular or plural fOnTIS by crossing off incorrect fonns {i.e. he/she/tfteT,- is /ttfB } or circling the correct forms. Failure to correctly indicate this infonnation may lead to rejection of document recording. . The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal irnpr::ssion smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form. Signature of the notary public must match the signature on file with the office of the county clerk. .:. Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. .:. Indicate title or type of attached document, number of pages and date. .:. Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, ~FO, Secretary). Securely attach this document to the signed document ' 9-56 Number of Pages _ Document Date II I I .l CAPACITY CLAIMED BY THE SIGNER o Individual (s) o Corporate Officer (Title) o Partner(s) o Attorney-in-Fact o Trustee(s) o Other GLOSSARY OF TERlYIS 49 Page 9-57 EXHIBIT LIST Exhibit I RFP Document 9-58