AGR-7429 - COMMERCIAL INTERIOR RESOURCES INCRcvR-74aj
CONTRACT
[Carpet Replacement at City Hall and Police Department]
THIS CONTRACT (the "Contract") is made and entered into as of Qe" Ao 11 ,
2022-("Effective Date") by and between the CITY OF ORANGE, a municipal corporation
("City"), and COMMERCIAL INTERIOR RESOURCES, INC., a California corporation
("Contractor"), who agree as follows.
ARTICLE 1
Work Performed
a. For and in consideration of the payments and agreements hereinafter mentioned, to
be made and performed by City, and under the conditions expressed in the two (2) bonds presented
to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to
and shall do all the work and furnish all the labor, materials, tools and equipment, except such as
are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in
good workmanship and substantial manner the work (the "Work") described in:
(1) The latest edition of the "City of Orange Standard Plans and Specifications"
(the "Orange Book") with the term "Engineer," as used in the Orange Book and in this Contract,
to specifically include the City Engineer (or designee);
(2) The "Standard Specifications for Public Works Construction" (the
AGv19-74aj
CONTRACT
[Carpet Replacement at City Hall and Police Department]
THIS CONTRACT (the "Contract") is made and entered into as of Qe" Ao 11 ,
20211-("Effective Date") by and between the CITY OF ORANGE, a municipal corporation
("City"), and COMMERCIAL INTERIOR RESOURCES, INC., a California corporation
("Contractor"), who agree as follows.
Provisions and Standard Plans are on file with City's Public Works Director and are hereby
specifically referred to and by such reference made a part hereof. Contractor hereby acknowledges
that it has read, reviewed and understands the Plans, the Orange Book, the Greenbook, the Special
Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all of
which documents shall be referred to herein collectively as the "Plans and Specifications."
e. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal
Code which requires, among other things, that Contractor utilize City's exclusive solid waste
hauler for the rental of bins for trash and debris removal and imposes mandatory recycling
requirements for self -hauled construction and demolition waste. The terms and conditions set forth
in this Contract shall control over any terms and conditions in the Plans and Specifications to the
contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and
the Bid Proposal and all applicable laws, including any and all applicable federal and state labor
laws and standards and applicable prevailing wage requirements and any and all state, federal and
local statutes, regulations and ordinances relating to the protection of human health or the
environment.
e. Unless and until otherwise notified in writing by City's Public Works Director,
City's Assistant Field Services Manager, Matthew Lorenzen ("Authorized City Representative"),
shall be the person to whom Contractor will report for the performance of the Work hereunder. It
is understood that Contractor's performance hereunder shall be under the direction and
supervision of the Authorized City Representative or such other person as City's Public Works
Director may designate from time to time, that Contractor shall coordinate the Work hereunder
with the Authorized City Representative to the extent required by the Authorized City
Representative, and that all performances required hereunder by Contractor shall be performed to
the satisfaction of the Authorized City Representative or City's Public Works Director.
L It is expressly aareed by and between the parties hereto that should there be anv
e. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal
Code which requires, among other things, that Contractor utilize City's exclusive solid waste
hauler for the rental of bins for trash and debris removal and imposes mandatory recycling
requirements for self -hauled construction and demolition waste. The terms and conditions set forth
in this Contract shall control over any terms and conditions in the Plans and Specifications to the
contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and
the Bid Proposal and all applicable laws, including any and all applicable federal and state labor
a. Contractor agrees to receive and accept an amount not to exceed TWO HUNDRED
NINETEEN THOUSAND SIX HUNDRED FIFTY-ONE DOLLARS and 00/100 ($219,651.00)
as compensation for furnishing all materials and doing all the Work contemplated and embraced
in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the
Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may
arise or be encountered in the prosecution of the Work until its acceptance by City, other than as
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provided below; (3) all risks of every description connected with the Work; (4) all expenses
incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and
faithfully completing the Work, and for the whole thereof, in the manner and according to the
Plans and Specifications, and requirements of the Authorized City Representative under them.
Retention amounts shall be withheld from progress payments as required by law unless Contractor
provides securities in lieu of retention.
b. In addition to the scheduled Work to be performed by the Contractor, the parties
recognize that additional, unforeseen work and services may be required by the Authorized City
Representative. In anticipation of such contingencies, the sum of TWENTY-ONE THOUSAND
NINE HUNDRED SIXTY-FIVE DOLLARS and 00/100 ($21,965.00) has been added to the total
compensation of this Contract. The Authorized City Representative may approve the additional
work and the actual costs incurred by the Contractor in performance of additional work or services
in accordance with such amount as the Authorized City Representative and the Contractor may
agree upon in advance. Said additional work or services and the amount of compensation therefor,
up to the amount of the authorized contingency, shall be memorialized in the form of a Contract
Amendment approved by the City Manager on a form acceptable to the City Attorney. The
Contractor agrees to perform only that work or those services that are specifically requested by the
Authorized City Representative. Any and all additional work and services performed under this
Contract shall be completed in such sequence as to assure their completion as expeditiously as is
consistent with professional skill and care in accordance with a cost estimate or proposal submitted
to and approved by the Authorized City Representative prior to the commencement of such Work
or services.
provided below; (3) all risks of every description connected with the Work; (4) all expenses
incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and
faithfully completing the Work, and for the whole thereof, in the manner and according to the
Plans and Specifications, and requirements of the Authorized City Representative under them.
Retention amounts shall be withheld from progress payments as required by law unless Contractor
provides securities in lieu of retention.
b. In addition to the scheduled Work to be performed by the Contractor, the parties
recognize that additional, unforeseen work and services may be required by the Authorized City
a. Contractor guarantees the construction and installation of all Work included in the
Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove
defective or should the Work as a whole prove defective, due to faulty equipment, workmanship,
materials furnished or methods of installations, or should said Work or any part thereof fail to
function properly, as designed, due to any of the above causes within twelve (12) months after the
date on which said Work is accepted by City, Contractor shall make repairs and furnish such
materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar
days after the receipt of a demand from City.
C. Said Work will be deemed defective within the meaning of this guarantee in the
event that it fails to function as originally intended either by the Plans and Specifications of this
Contract or by the manufacturer(s) of the equipment incorporated into the Work.
d. In the event repairs are not made within fifteen (15) calendar days after Contractor's
receipt of a demand from City, City shall have the unqualified option to make any needed repairs
or replacements itself or by any other contractor. Contractor shall reimburse City, upon demand,
for all expenses incurred in restoring said Work to the condition contemplated in this Contract,
including the cost of any equipment or materials replaced.
e. It is understood that emergency repairs may, by necessity, be made by City.
Therefore, when defective equipment, materials or workmanship result in emergency repairs by
City, Contractor shall reimburse City, upon demand, for all expenses incurred. Emergency repairs
will be deemed as those repairs determined by City's Director of Public Works to be necessary
due to an immediate detriment to the health, safety, welfare or convenience of the residents of
City.
ARTICLE 6
Water Quality
date on which said Work is accepted by City, Contractor shall make repairs and furnish such
materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar
days after the receipt of a demand from City.
C. Said Work will be deemed defective within the meaning of this guarantee in the
event that it fails to function as originally intended either by the Plans and Specifications of this
Contract or by the manufacturer(s) of the equipment incorporated into the Work.
d. In the event repairs are not made within fifteen (15) calendar days after Contractor's
relate to the Work and hereby shall perform the Work in conformance therewith. r
ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent
contractor and not an employee of City. City shall have the right to control Contractor only insofar
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as the result of Contractor's services rendered pursuant to this Contract. City shall not have the
right to control the means by which Contractor accomplishes services rendered pursuant to this
Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and
equipment which may be required for furnishing services pursuant to this Contract. Contractor
shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters
relating to the payment of its subcontractors, agents and employees, including compliance with
social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations
of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors,
agents or employees employed by Contractor shall not, under any circumstances, be considered
employees of City, and that they shall not be entitled to any of the benefits or rights afforded
employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public
Employees Retirement System benefits, or health, life, dental, long-term disability or workers'
compensation insurance benefits.
b. Except as City may specify in writing, Contractor shall have no authority, express
or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have
no authority, express or implied, to bind City to any obligation whatsoever.
ARTICLE 8
Public Work; Prevailing Wage
a. The Work which is the subject of this Contract is a "public work," as that term is
defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.
To the extent Contractor's employees will perform any work that falls within any of the
as the result of Contractor's services rendered pursuant to this Contract. City shall not have the
right to control the means by which Contractor accomplishes services rendered pursuant to this
Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and
equipment which may be required for furnishing services pursuant to this Contract. Contractor
shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters
relating to the payment of its subcontractors, agents and employees, including compliance with
social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations
of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors,
agents or employees employed by Contractor shall not, under any circumstances, be considered
as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:
"I am aware of the provisions of Section 3700 of the Labor Code which require
every employer to be insured against liability for workers' compensation or to
undertake self-insurance in accordance with the provisions of that code, and I
will comply with such provisions before commencing the performance of the
work of this contract."
d. Contractor shall indemnify, protect, defend and hold harmless City and its officers,
employees, contractors and agents, with counsel reasonably acceptable to City, from and against
any and all loss, liability, damage, claim, cost, expense, and/or "increased costs" (including
reasonable attorney's fees, court and litigation costs, and fees of expert witnesses) which result or
arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal
law, including, without limitation, any applicable federal and/or state labor laws (including,
without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that,
in connection with the construction of the Work which is the subject of this Contract, Contractor
shall bear all risks of payment or non-payment of state prevailing wages. "Increased costs" as
used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the
same may be enacted, adopted or amended from time to time. The foregoing indemnity shall
survive termination of this Contract.
ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract, Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, mental or physical disability, or
any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed
and that employees are treated during employment, without regard to their race, color, religion,
sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include, but not be limited to the following: employment, upgrading, demotion
d. Contractor shall indemnify, protect, defend and hold harmless City and its officers,
employees, contractors and agents, with counsel reasonably acceptable to City, from and against
any and all loss, liability, damage, claim, cost, expense, and/or "increased costs" (including
reasonable attorney's fees, court and litigation costs, and fees of expert witnesses) which result or
arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal
law, including, without limitation, any applicable federal and/or state labor laws (including,
without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that,
in connection with the construction of the Work which is the subject of this Contract, Contractor
shall bear all risks of payment or non-payment of state prevailing wages. "Increased costs" as
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt
to use its position as a contractor to influence any decision of City in which Contractor knows or
has reason to know that Contractor, its officers, partners, or employees have a financial interest as
defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be
eligible to work as the builder for any project for which the design work is part of this Contract.
ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials,
agents, and employees from and against:
a.. Any and all claims, liabilities, losses, damages, penalties, costs or expenses
(including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain
or suffer arising from or as a result of the death of any person or any accident, injury, loss or
damage whatsoever caused to any person or the property of any person which shall occur on or
adjacent to the real property which is the subject of this Contract, or in connection with
performance of this Contract which may be directly or indirectly caused by the acts or omissions
of Contractor or its officers, employees, contractors or agents, or as a consequence of any use,
generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or
substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any
willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents,
and employees. The foregoing indemnity shall survive termination of this Contract.
b. Any and all claims under workers' compensation acts and other employee benefit
acts with respect to Contractor's employees or Contractor's subcontractor's employees arising out
of Contractor's Work under this Contract, including any and all claims under any law pertaining
to Contractor's status as an independent contractor.
ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials,
agents, and employees from and against:
a.. Any and all claims, liabilities, losses, damages, penalties, costs or expenses
(including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain
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.
(2) Automobile Liability $1,000,000 per accident for bodily injury and
property damage.
(3) Workers' Compensation as required by the State of California.
(4) Employer's Liability $1,000,000 per accident for bodily injury or disease.
C. Any insurance proceeds in excess of or broader than the minimum required
coverage and/or minimum required limits which are applicable to a given loss shall be available
to City. No representation is made that the minimum insurance requirements of this Contract are
sufficient to cover the obligations of Contractor under this Contract.
d. Any deductibles or self -insured retentions must be declared to and approved by
City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self -
insured retentions with respect to City, its officers, officials, agents and employees; or Contractor
shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related
investigations, claim administration, and defense expenses.
e. Each policy of general liability and automotive liability insurance shall contain, or
be endorsed to contain, the following provisions:
(1) City, its officers, officials, agents, and employees are declared to be
additional insureds under the terms of the policy, with respect to liability arising out of automobiles
owned, leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to
(2) Automobile Liability $1,000,000 per accident for bodily injury and
property damage.
(3) Workers' Compensation as required by the State of California.
(4) Employer's Liability $1,000,000 per accident for bodily injury or disease.
C. Any insurance proceeds in excess of or broader than the minimum required
coverage and/or minimum required limits which are applicable to a given loss shall be available
L Contractor shall furnish City with original certificates of insurance and
endorsements effecting coverage required by this Article 12. The endorsements shall be on forms
acceptable to City. All certificates and endorsements are to be received and approved by City
before the Work commences. However, failure to do so shall not operate as a waiver of these
insurance requirements. 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.
g. All insurance procured and maintained by Contractor shall be issued by insurers
admitted to: conduct the pertinent line of insurance business in California and having a rating of
Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.
h. Contractor shall immediately notify City if any required insurance lapses or is
otherwise modified and cease performance of this Contract unless otherwise directed by City. In
such a case, City may procure insurance or self -insure the risk and charge Contractor for such costs
and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.
i. Contractor agrees that in the event of loss due to any of the perils for which it has
agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor
hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City
with respect to the services of Contractor herein, a waiver of any right to subrogation which any
such insurer may acquire against City by virtue of the payment of any loss under such insurance.
The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of
City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor
shall obtain any other endorsement that may be necessary to effect this waiver of subrogation.
j. Contractor shall require and verify that all subcontractors maintain insurance
meeting all of the requirements stated herein.
ARTICLE 13
Termination
g. All insurance procured and maintained by Contractor shall be issued by insurers
admitted to: conduct the pertinent line of insurance business in California and having a rating of
Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.
h. Contractor shall immediately notify City if any required insurance lapses or is
otherwise modified and cease performance of this Contract unless otherwise directed by City. In
such a case, City may procure insurance or self -insure the risk and charge Contractor for such costs
and any and all damages resulting therefrom by way of set-off from _any _ gums owed Contractor._
completion of services performed under this Contract. During the term of this Contract and for a
period of three (3) years after termination or completion of this Contract, City shall have the right
to inspect and/or audit Contractor's records pertaining to the performance of this Contract at
Contractor's office. Contractor shall make available all such records for inspection or audit at its
offices during normal business hours and upon three (3) days' notice from City, and copies thereof
shall be furnished if requested.
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ARTICLE 15
Compliance with Laws
a. Contractor shall be knowledgeable of and comply with all local, state and federal
laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by
Contractor or any subcontractor hereunder.
b. Contractor represents and warrants that it:
(1) Has complied and shall at all times during the term of this Contract comply,
in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including,
without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and
(2) Has not and will not knowingly employ any individual to perform services
under this Contract who is ineligible to work in the United States or under the terms of this
Contract; and
(3) Has properly maintained, and shall at all times during the term of this
Contract properly maintain, all related employment documentation records including, without
limitation, the completion and maintenance of the Form I-9 for each of Contractor's employees;
and
(4) Has responded, and shall at all times during the term of this Contract
respond, in a timely fashion to any government inspection requests relating to immigration law
compliance and/or Form I-9 compliance and/or worksite enforcement by the Department of
Homeland Security, the Department of Labor, or the Social Security Administration.
C. Contractor shall require all subcontractors and/or subconsultants to make the same
representations and warranties required by this Article 15 when hired to perform services under
this Contract.
d. Contractor shall, upon request of City, provide a list of all employees working under
this Contract and shall provide, to the reasonable satisfaction of City, verification that all such
employees are eligible to work in the United States. All costs associated with such verification
shall be borne by Contractor. Once such request has been made, Contractor may not change
employees working under this Contract without written notice to City, accompanied by the
verification required herein for such employees. Contractor shall require all subcontractors and/or
sub -consultants to make the same verification when hired to perform services under this Contract.
e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee
providing Work under this Contract who is not authorized to work in the United States, and/or
fails to follow federal laws to determine the status of such employee, such shall constitute a
material breach of this Contract and may be cause for immediate termination of this Contract by
City.
f. Contractor shall indemnify and hold City, its officials and employees harmless for,
of and from any loss, including but not limited to fines, penalties and corrective measures, City
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may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in
connection with the performance of this Contract.
ARTICLE 16
Governing Law and Venue
This Contract shall be construed in accordance with and governed by the laws of the State
of California and Contractor shall submit to the jurisdiction of California courts. Venue for any
dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
a. This Contract constitutes the entire agreement of the parties. No other agreement,
oral or written, pertaining to the Work to be performed under this Contract shall be of any force or
effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent
with or in violation of the provisions of this Contract shall not be compensated.
b. Amendments to this Contract must be in writing and signed by both parties. The
City Manager is authorized to execute amendments to this Contract up to the amounts specified in
Chapter 3.08 of the Orange Municipal Code.
ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in
writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party
at the address listed below. Either parry may change the notice address by notifying the other party
in writing. Notices shall be deemed received upon receipt of same or within three (3) days of
deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on
the date of the e-mail transmission.
"CONTRACTOR"
Commercial Interior Resources, Inc.
1761 Reynolds Avenue, #A
Irvine, CA 92614
Attn: Matthew Bean
Telephone: (949) 359-1374
E-Mail: mbean@cir-resource.com
"CITY"
City of Orange
300 E. Chapman Avenue
Orange, CA 92866-1591
Attn: Matthew Lorenzen
Telephone: (714) 532-6488
E-Mail: mlorenzen@cityoforange.org
ARTICLE 19
Claim Resolution
City and Contractor agree that the claim resolution process applicable to any claim by
Contractor in connection with the Work provided herein shall be subject to the procedures set forth
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in California Public Contract Code Section 9204, attached hereto as Attachment No. 2, and
incorporated herein by this reference.
ARTICLE 20
Counterparts
This Contract may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. Signatures
transmitted via facsimile and electronic mail shall have the same effect as original signatures.
CONTRACT, BONDS AND INSURANCE
APPROVED BY:
I M1, , o WIMM" IMMORK AV
"CITY"
CITY OF ORANGE, a municipal corporation
By:
-/;V/ �— *—I�h
Mari A. Murphy
Mayor of the City of Orange
ATTEST:
in California Public Contract Code Section 9204, attached hereto as Attachment No. 2, and
incorporated herein by this reference.
ARTICLE 20
Counterparts
This Contract may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. Signatures
transmitted via facsimile and electronic mail shall have the same effect as original signatures.
Secretary, Chief Financial Officer or, Printe Nam . fflnQ,
Assistant Treasurer is also required] . Title: lia Qr
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