New Horizons Contracting Inc 0 •
CITY OF RANCHO PALOS VERDES
PUBLIC WORKS AGREEMENT
THIS AGREEMENT("Agreement") is made and entered this ��6 ofem &, 2014 and between
day by
the CITY OF RANCHO PALOS VERDES, a California municipal corporation ("City") and New Horizons Contracting,
Inc. ("Contractor"). Contractor's license number is 943743.
In consideration of the mutual covenants hereinafter set forth,the parties hereto agree as follows:
1. Scope of Services. Contractor shall perform the work and provide all labor, materials, equipment and
services in a good and workmanlike manner for the project identified as ABATEMENT/DEMOLITION
OF TWO CHERRY HILL LANE STRUCTURES # 40 AND #41 ("Project"), as described in this Agreement
and in the Bid Documents (including the Notice Inviting Sealed Bids, the Instructions to Bidders, the
Proposal,the General Provisions, the Special Provisions,appendices and all addenda as prepared prior
to the date of bid opening setting forth any alterations or interpretations of any said documents),
which are incorporated herein by this reference as Exhibit "A," including miscellaneous appurtenant
work. All work shall be performed in accordance with the latest edition of the Standard Specifications
for Public Works Construction (commonly known as the "Greenbook"), including supplements,
prepared and promulgated by the Southern California Chapter of the American Public Works
Association and the Associated General Contractors of California (collectively "Standard
Specifications"), which is incorporated herein by this reference. In the event of any conflict between
the terms of this Agreement and incorporated documents,the terms of this Agreement shall control.
2. Effective Date. This Agreement is effective as of the date listed above, and shall remain in full force
and effect until Contractor has rendered the services required by this Agreement.
3. Time. Time is of the essence in this Agreement. All of the work required by this Agreement shall be
completed by December 22, 2014.
4. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to
exceed amount of Forty Seven Thousand Eight Hundred Ninety dollars ($47,890) in accordance with
the prices as submitted in Contractor's Proposal, attached hereto as Exhibit "B" and incorporated
herein by this reference.
5. Payments. City shall make payments within thirty (30) days after receipt of an undisputed and
properly submitted payment request from Contractor. City shall return to Contractor any payment
request determined not to be a proper payment request as soon as practicable, but not later than
seven (7) days after receipt, and shall explain in writing the reasons why the payment request is not
proper.
A payment shall be made as the City Council of the City prescribes upon estimates approved by the
City Council. However, progress payments shall not be made in excess of ninety-five percent(959') of
the percentage of actual work completed plus a like percentage of the value of material delivered on
the ground or stored subject to, or under the control of, the City, and unused.The City shall withhold
not less than five percent (5%) of the Agreement price until final completion and acceptance of the
Project. However, at any time after fifty percent (50%) of the work has been completed, if the City
Council of the City finds that satisfactory progress is being made, it may, at its discretion, make any of
the remaining progress payments in full for actual work completed.
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6. Substitute Security.
a. At the written request and expense of Contractor, securities equivalent to any moneys withheld by
the City to ensure performance under this Agreement shall be deposited with the City, or with a
state or federally chartered bank in the State of California as the escrow agent, that shall then pay
those moneys to Contractor. Upon satisfactory completion of the Agreement, the securities shall be
returned to Contractor.
b. Alternatively,Contractor may request that the City shall make payment of retentions earned directly
to the escrow agent at the expense of Contractor. At the expense of Contractor, Contractor may
direct the investment of the payments into securities, and Contractor shall receive the interest
earned on the investments upon the same terms provided for securities deposited by Contractor.
Upon satisfactory completion of the Agreement, Contractor shall receive from the escrow agent all
securities, interest,and payments received by the escrow agent from the City, pursuant to the terms
of this Section.
c. Securities eligible for investment shall include those listed in California Government Code Section
16430, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts,
standby letters of credit, or any other security to which Contractor and the City mutually agree in
writing. Contractor shall be the beneficial owner of any securities substituted for moneys withheld
and shall receive any interest thereon.
d. If Contractor elects to receive interest on moneys withheld in retention by the City, it shall, at the
request of any subcontractor performing more than five percent(5%) of Contractor's total bid, make
that option available to the subcontractor regarding any moneys withheld in retention by Contractor
from the subcontractor. Further mandatory details are provided in Public Contract Code Section
22300(d),which is incorporated herein by this reference.
e. The escrow agreement for security deposits in lieu of retention shall be substantially similar to the
form provided in Public Contract Code Section 22300(f), which is incorporated herein by this
reference.
7. Taxes. Contractor shall calculate payment for all sales, unemployment, old age pension and other
taxes imposed by local, State of California and federal law. These payments are included in the total
amounts in Exhibit"B."
8. Audit.The City or its representative shall have the option of inspecting and/or auditing all records and
other written materials used by Contractor in preparing its billings to the City as a condition precedent
to any payment to Contractor. Contractor will promptly furnish documents requested by the City.
Additionally, Contractor shall be subject to State Auditor examination and audit at the request of the
City or as part of any audit of the City, for a period of three (3) years after final payment under this
Agreement.
9. Termination. This Agreement may be canceled by the City at any time with or without cause without
penalty upon thirty (30) days' written notice. In the event of termination without fault of Contractor,
City shall pay Contractor for all services satisfactorily rendered prior to date of termination as
determined by the City, and such payment shall be in full satisfaction of all services rendered
hereunder.
10. Indemnity.
a) Contractor's Duty. To the maximum extent permitted by law, Contractor shall defend,
indemnify, and hold harmless the City, its elected officials, officers, employees, volunteers,
agents, successors, assigns, and those City agents serving as independent contractors in the role
of City officials (collectively "Indemnitees") from and against any and all claims (including,
without limitation, claims for bodily injury, death or damage to property), demands,obligations,
damages, actions, causes of action, proceedings, suits, losses, bid protests, stop notices,
judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature
whatsoever, in any manner arising out of or incident to any act, failure to act, error or omission
of Contractor or any of its officers, agents, servants, employees, subcontractors, materialmen,
suppliers or their officers, agents, servants or employees, arising out of the Agreement,
including without limitation,the payment of all consequential damages,attorneys'fees, experts'
fees, and other related costs and expenses (individually, a "Claim," or collectively, "Claims").
Further, Contractor shall appoint competent defense counsel approved by the City Attorney at
Contractor's own cost, expense and risk, to defend any and all such Claims that may be brought
or instituted against Indemnitees. Contractor shall pay and satisfy any judgment, award or
decree that may be rendered against Indemnitees in any such Claim. Contractor shall reimburse
Indemnitees for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify
shall not be restricted to insurance proceeds, if any, received by Contractor or Indemnitees.
This indemnity shall apply to all Claims regardless of whether any insurance policies are
applicable.
b) Bid Protests. In addition to its obligations pursuant to Section 13(a), Contractor shall reimburse
the City for all attorneys' fees and costs incurred by City in connection with, arising out of or
incident to any bid protest.
c) Civil Code Exception. Nothing in Section 13(a) shall be construed to encompass Indemnitees'
sole negligence or willful misconduct to the limited extent that the underlying Agreement is
subject to Civil Code section 2782(a) or the City's active negligence to the limited extent that the
underlying Agreement is subject to Civil Code section 2782(b).
d) Non-waiver of Rights. Indemnitees do not and shall not waive any rights that they may possess
against Contractor because the acceptance by City, or the deposit with City, of any insurance
policy or certificate required pursuant to this Agreement. This indemnity provision is effective
regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees
and shall operate to fully indemnify Indemnitees against any such negligence.
e) Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or
through it, hereby waives all rights of subrogation and contribution against the Indemnitees,
while acting within the scope of their duties, from all Claims arising out of or incident to the
activities or operations performed by or on behalf of the Contractor regardless of any prior,
concurrent or subsequent active or passive negligence by Indemnitees.
f) Survival. The provisions of this Section 13 shall survive the termination of this Agreement and
are in addition to any other rights or remedies that Indemnitees may have under the law.
Payment is not required as a condition precedent to an Indemnitee's right to recover under this
indemnity provision, and an entry of judgment against a Contractor shall be conclusive in favor
of the Indemnitee's right to recover under this indemnity provision.
11. Incorporation by Reference. All of the following documents are attached hereto and incorporated
herein by this reference: City of Rancho Palos Verdes Instructions for Execution of Instruments;
Insurance Requirements for the City of Rancho Palos Verdes Public Works Contract; Workers'
Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General
Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement
(Excess Liability).
12. Antitrust Claims. In entering into this Agreement,Contractor offers and agrees to assign to the City all
rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act
(15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2
of Division 7 of the California Business and Professions Code) arising from purchases of goods,
services, or materials pursuant to the Agreement. This assignment shall be made and become
effective at the time the City tenders final payment to Contractor without further acknowledgment by
the parties.
13. Trenching and Excavations. If the project involves trenching more than four(4) feet deep, Contractor
shall promptly and before the following conditions are disturbed notify the City in writing of any:
material that Contractor believes may be material that is hazardous waste, as defined in California
Health and Safety Code Section 25117, that is required to be removed to a Class I, Class II, or Class III
disposal site in accordance with provisions of existing law; subsurface or latent physical conditions at
the site differing from those indicated; or unknown physical conditions at the site of any unusual
nature, different materially from those ordinarily encountered and generally recognized as inherent in
work of the character provided for in the Agreement. The City shall promptly investigate the
conditions, and if the City finds that the conditions do materially differ or do involve hazardous waste
and cause a decrease or increase in Contractor's cost of or the time required for performance of any
part of the work,the City shall issue a change order.
14. Utilities. The City acknowledges its responsibilities under Government Code section 4215 and
incorporates that section herein by this reference.
15. Location of Existing Elements. The methods used and costs involved to locate existing elements,
points of connection and all construction methods are Contractor's sole responsibility. Accuracy of
information furnished, as to existing conditions, is not guaranteed by the City. Contractor, at its sole
expense, must make all investigations necessary to determine locations of existing elements, which
may include, without limitation, contacting U.S.A. Alert and other private underground locating
firm(s), utilizing specialized locating equipment and/or hand trenching.
16. Independent Contractor. Contractor is and shall at all times remain, as to the City, a wholly
independent contractor. Neither the City nor any of its agents shall have control over the conduct of
Contractor or any of the Contractor's employees, except as herein set forth, and Contractor is free to
dispose of all portions of its time and activities which it is not obligated to devote to the City in such a
manner and to such persons, firms, or corporations at the Contractor wishes except as expressly
provided in this Agreement. Contractor shall have no power to incur any debt, obligation, or liability
on behalf of the City, bind the City in any manner, or otherwise act on behalf of the City as an agent.
Contractor shall not, at any time or in any manner, represent that it or any of its agents, servants or
employees, are in any manner agents, servants or employees of City. Contractor agrees to pay all
required taxes on amounts paid to Contractor under this Agreement, and to indemnify and hold the
City harmless from any and all taxes, assessments, penalties, and interest asserted against the City by
reason of the independent contractor relationship created by this Agreement. Contractor shall fully
comply with the workers' compensation law regarding Contractor and its employees. Contractor
further agrees to indemnify and hold the City harmless from any failure of Contractor to comply with
applicable workers' compensation laws. The City shall have the right to offset against the amount of
any compensation due to Contractor under this Agreement any amount due to the City from
Contractor as a result of its failure to promptly pay to the City any reimbursement or indemnification
arising under this Section.
17. Prevailing Wages. City and Contractor acknowledge that this project is a public work to which
prevailing wages apply. The Agreement to Comply with California Labor Law Requirements is attached
hereto and incorporated herein by this reference. Eight hours of labor constitutes a legal day's work.
18. Workers' Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor
will be required to secure the payment of compensation to its employees. In accordance with the
provisions of California Labor Code Section 1861,the 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 under, take 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."
19. Nondiscriminatory Employment. Contractor shall not unlawfully discriminate against any individual
based on race, color, religion, nationality, gender, sex, sexual orientation, age or condition of
disability. Contractor understands and agrees that it is bound by and will comply with the
nondiscrimination mandates of all statutes and local ordinances and regulations.
20. Compliance with Laws. Contractor shall comply with all applicable federal, state and local laws,
ordinances, codes and regulations in force at the time Contractor performs pursuant to this
Agreement. Contractor has been advised that the structures that are being demolished contain
hazardous materials. Contractor shall handle, remove, transport and dispose of all hazardous
materials in compliance with all applicable laws.
21. Bonds. Contractor shall obtain faithful performance and payment bonds, each in an amount that is
not less than the total compensation amount of this Agreement, and nothing in this Agreement shall
be read to excuse this requirement. Before acceptance of the Project, Contractor shall submit a
warranty bond that is valid for one (1) year from acceptance, in the amount of one hundred percent
(100%) of the contract price; in lieu of the warranty Bond, Contractor may submit proof from the
surety that the performance bond has been extended for the extra year. The required forms entitled
Payment Bond (Labor and Materials), Performance Bond, and Warranty Bond are attached hereto and
incorporated herein by this reference.
22. Contractor's Representations. Contractor represents, covenants and agrees that: a) Contractor is
licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform
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the services in accordance with the terms and conditions set forth in this Agreement; b) there are no
obligations, commitments, or impediments of any kind that will limit or prevent its full performance
under this Agreement; c) there is no litigation pending against Contractor, and Contractor is not the
subject of any criminal investigation or proceeding; and d) to Contractor's actual knowledge, neither
Contractor nor its personnel have been convicted of a felony.
23. Conflicts of Interest. Contractor agrees not to accept any employment or representation during the
term of this Agreement or within twelve (12) months after completion of the work under this
Agreement which is or may likely make Contractor"financially interested," as provided in Government
Code Section 1090 and 87100, in any decisions made by City on any matter in connection with which
Contractor has been retained pursuant to this Agreement.
24. Third Party Claims. City shall have full authority to compromise or otherwise settle any claim relating
to the Agreement at any time. City shall timely notify Contractor of the receipt of any third-party claim
relating to the Agreement. City shall be entitled to recover its reasonable costs incurred in providing
this notice.
25. Non-Assignability; Subcontracting. Contractor shall not assign or transfer any interest in this
Agreement or any part thereof, whether by assignment or novation, without the City's prior written
consent. Any purported assignment without written consent shall be null, void, and of no effect, and
Contractor shall hold harmless, defend and indemnify the City and its officers, officials, employees,
agents and representatives with respect to any claim, demand or action arising from or relating to any
unauthorized assignment.
26. Applicable Law. The validity, interpretation,and performance of this Agreement shall be controlled by
and construed under the laws of the State of California, excluding California's choice of law rules.
Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior
Court.
27. Titles. The titles used in this Agreement are for convenience only and shall in no way define, limit or
describe the scope or intent of this Agreement or any part of it.
28. Authority,.The person executing this Agreement on behalf of Contractor warrants and represents that
he or she has the authority to execute this Agreement on behalf of Contractor and has the authority
to bind Contractor to the performance of its obligations hereunder.
29. Entire Agreement. This Agreement, including any other documents incorporated herein by specific
reference, represents the entire and integrated agreement between City and Contractor. This
Agreement supersedes all prior oral or written negotiations, representations or agreements. This
Agreement may not be modified or amended, nor any provision or breach waived, except in a writing
signed by both parties which expressly refers to this Agreement.
30. Construction. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any
matter herein, the interpretation of this Agreement shall not be resolved by any rules of
interpretation providing for interpretation against the party who causes the uncertainty to exist or
against the party who drafted the Agreement or who drafted that portion of the Agreement.
31. Non-waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the
conditions of performance under this Agreement shall not be a waiver of any other condition of
performance under this Agreement. In no event shall the making by the City of any payment to
Contractor constitute or be construed as a waiver by the City of any breach of covenant,or any default
which may then exist on the part of Contractor, and the making of any such payment by the City shall
in no way impair or prejudice any right or remedy available to the City with regard to such breach or
default.
32. Notice. Except as otherwise required by law, any notice or other communication authorized or
required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery
if delivered by hand or overnight courier service during Contractor's or City's regular business hours or
(b) on the third business day following deposit in the United States mail, postage prepaid, to the
addresses listed below,or at such other address as one party may notify the other:
To CITY:
Michael Throne, P.E., Director of Public Works
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes,CA 90275
To CONTRACTOR:
The address listed in Exhibit"B."
33. Counterparts. This Agreement may be executed in counterpart originals, duplicate originals, or both,
each of which is deemed to be an original for all purposes.
34. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall
continue in full force and effect.
[signatures on next page]
• •
IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above
written.
CITY OF 4\ CHO PALO"14 DES
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Dated: / New Horizons Contracting, Inc.
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("CONTRACTOR"
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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who proved to me on the basis of satisfactory evidence to
be the person(s) whose name(s)Ware subscribed to the
within instrument and acknowledged to me that
Ile/she/they executed the same in I41e/her/their authorized
MAOALY SALAZAR capacity(ies), and that by er/their signature(s) on the
.. r - Commission#f 1961547 instrument the person(s), or the entity upon behalf of
Notary Public•California ) which the person(s) acted, executed the instrument.
:-!•,) Los Angeles County
Conn. Nov24 2015 I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS ha • and offi :I seal.
/ApSignature
Place Notary Seal Above / Signature of -:ry Public
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:eik-Vt r O 4S 4bV
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Date: \ o\1e,(r'De( 2LZO`Lk. Number of Pages: e__44
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O Corporate Officer—Title(s): 0 Corporate Officer—Title(s):
O Partner—0 Limited 0 General RIGHTTHl11L1f3PRINT 0 Partner—0 Limited 0 General RIGHT THUMBPRINT
❑ Attorney in Fact OF SIGNER ❑Attorney in Fact OF SIGNER
0 Trustee Top of thumb here LI Trustee Top of thumb here
❑ Guardian or Conservator ❑Guardian or Conservator
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02007 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402•www.NationalNotary.org Item#5907 Reorder.Call Toll-Free 1-800-876-6827
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Bond No. CDGP101063
Executed in Two(2)Originals
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Rancho Palos Verdes("Public Agency"), has awarded to New Horizons Contracting,Inc.
204 South 5th Avenue,City of Industry,CA 91746
(Name and address of Contractor)
("Principal"),a contract(the"Contract"),which is incorporated herein by this reference,for the work described as follows:
ABATEMENT/DEMOLITION OF CHERRY HILL LANE STRUCTURES#40 AND#42. WHEREAS, Principal is required
under the terms of the Contract to file a good and sufficient performance bond with the Public Agency for the faithful
performance of the Contract.
NOW,THEREFORE,we,the undersigned Principal,and State National Insurance Company,Inc.administered by:Contractor Managing
General Insurance Agency,Inc.20335 Ventura Blvd.,Suite 426,Woodland Hills,CA 91364
(Name and address of Surety)
("Surety")a duly admitted surety insurer under the laws of the State of California,as Surety,are held and firmly bound unto
the Public Agency in the penal sum of Forty seven thousand eight hundred ninety and 00/100ths dollars
Dollars($ 47,890.00 ) (the "Penal Sum"), this amount being not less than one hundred percent
(100%) of the total Contract price, in lawful money of the United States of America,for the payment of which sum well and
truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally,
firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors,
administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform all the
undertakings, terms, covenants, conditions and provisions in the Contract and any alteration thereof made as therein
provided, on the Principal's part to be kept and performed, all within the time and in the manner therein specified, and in
all respects according to their true intent and meaning, and shall indemnify and hold harmless the Public Agency, its
officers, agents, employees, and others as therein provided, then this obligation shall become null and void; otherwise, it
shall be and remain in full force and effect.
In case suit is brought upon this bond, Surety further agrees to pay, in addition to the Penal Sum, all costs and reasonable
expenses and fees, including reasonable attorneys' fees, incurred by the Public Agency in successfully enforcing such
obligation,all to be taxed as costs and included in any judgment rendered.
FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration,
addition or modification to the terms of the Contract, or of the work to be performed thereunder, or the specifications for
the same, shall in any way affect its obligations under this bond, and it does hereby waive notice of any such change,
extension of time, alteration, addition or modification to the terms of the Contract or to the work or to the specifications
thereunder. Surety hereby waives the provisions of California Civil Code sections 2845 and 2849. The City is the principal
beneficiary of this bond and has all rights of a party hereto.
IN WITNESS WHEREOF,two(2) identical counterparts of this instrument, each of which shall for all purposes be deemed an
original hereof, have been duly executed by Principal and Surety, on the date set forth below,the name of each corporate
party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its
governing body.
Dated: November 14th,2014
"Principal" "Surety"
State National Insurance Company,Inc.administered by:
New Horizons Contracting,Inc. Contractor Managing General Insurance Agency,Inc.
By: By:
Itsj1ts Stephanie Hope Shear/Attorney-In-Fact
By: By:
Its Its
(Seal) (Seal)
APPROVED AS TO SURETY AND PRINCIPAL APPROVED AS TO FORM:
AMOUNT
RICHARDS,WATSON &GERSHON
A Professional Corporation
By: By: ��i►`►:�
Insurance Administrator Public Agency Attor►-y
Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the
authority of any person signing as attorney-in-fact must be attached
Bond No.:$CDGP1010630 II Premium: $1,437.00
Taxes&Fees: N/A
State National Insurance Company,Inc.Administered by:
CONTRACTOR MANAGING GENERAL INSURANCE AGENCY,INC.
POWER OF ATTORNEY
KNOW BY ALL THESE PRESENTS That STATE NATIONAL INSURANCE COMPANY, INC. a corporation organized and existing under
the laws of the State of Texas,having its principal office in Bedford,Texas does hereby constitute and appoint
Stephanie Hope Shear
its true and lawful attorney(s)-in-fact to execute,seal and deliver for and on its behalf as surety,the following bond described as:
Abatement/Demolition of Cherry Hill Lane Structures#40 and#42
for: Three Million and 00/100 Dollars($3,000,000)
and undertakings, contracts of indemnity and other writings obligatory in the nature thereof,which are or may be allowed,required or permitted by
law,statute,rule,regulation,contract or otherwise.
The execution of such instrument(s)in pursuance of these present,shall be as binding upon STATE NATIONAL INSURANCE COMPANY,INC.
as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at the
principal office.
RESOLVED that the signature of any authorized officer and the seal of the Company may be affixed by facsimile to any Power of Attorney or
certification thereof authorizing the execution and delivery of any bond, undertaking, contracts of indemnity and other writings obligatory in the
nature thereof,and such signature and seal when so used shall have the same force and effect as though manually affixed.
IN WITNESS WHEREOF,STATE NATIONAL INSURANCE COMPANY,INC.has
caused this instrument to be signed and its corporate seal to be affixed by its authorized
officer,this 24th day of March,2014.
STATE NATIONAL INSURANCE COMPANY,INC.
.).",.., .. 1.,.\
I "eit It..i et 3 r„.
Terry L.Ledbetter,President Trace Ledbetter,Secretary
STATE OF TEXAS
County of Tarrant
On this24th day of March,2014 before me came the individuals who executed the preceding instrument,to me personally known, and being by me
duly sworn, said that each of the herein described and authorized officer of STATE NATIONAL INSURANCE COMPANY, INC.; that the seal
affixed to said instrument is the Corporate Seal of said Company;that the Corporate Seal and each signature were duly affixed by order of the Board
of Directors of said Company.
IN WITNESS WHEREOF,I have hereunto set my hand at Bedford,Texas the day and year above written.
X01. +4,! Mindy s
_a Notary Public. • .
yr .�. State of Texas
Comm.Exp.04-21-15
[Notary Stamp] Signature of Notary
I, Trace Ledbetter, Secretary of STATE NATIONAL INSURANCE COMPANY, INC., do hereby certify that the above and foregoing is a true
and correct copy of a Power of Attorney executed by STATE NATIONAL INSURANCE COMPANY,INC.,which is still in full force and effect.
IN WITNESS WHEREOF,I have thereunto set my hand and attested the seal of said Company this 14th day of November ,2014
'te.,t,eircle.,./...ae2t-- ii
Trace Ledbetter,Secretary
C M G IA-S N I C-S U R-014-03/14
, ,. ! . 0 0
CALIFORNIA ALL — PURPOSE ACKNOWLEDGEMENT
State of California
County of Los Angeles
On NOV 1 4 2014 before me, JAN MICHELLE RIVERA, NOTARY PUBLIC
DATE NAME,TITLE OF OFFICER
Personally appeared STEPHANIE HOPE SHEAR . ,
NAME(S)OF SIGNER(S)
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 his/her/their authorized capacity(ies), and that by
his/her/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 m hand and official seal. ;V`� JAN MICHELLE RIVERA
-� Commission#�1939902
z t4,..7,
� Notary Public•California �
� `�'��'' los Angeles County
M Comm. Ex fres Jul 3,2015
I
SIG r- a F NOTARY NOTARY SEAL
Bond No. CDGP101063
Executed in Two(2)Originals
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Rancho Palos Verdes ("Public Agency"), State of California, has awarded to
New Horizons Contracting,Inc.
204 S.5th Avenue,City of Industry,CA 91746 ("Principal")
(Name and address of Contractor)
a contract(the "Contract")for the Work described as follows:ABATEMENT/DEMOLITION OF CHERRY HILL LANE
STRUCTURES # 40 AND #42. WHEREAS, under the terms of the Contract, the Principal is required before
entering upon the performance of the work, to file a good and sufficient payment bond with the Public Agency
to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4
of the Civil Code.
NOW,THEREFORE, we,the undersigned Principal,and
State National Insurance Company,Inc.administered by:Contractor Managing General Insurance Agency,Inc.
20335 Ventura Blvd.,Suite 426,Woodland Hills,CA 91364
(Name and address of Surety)
("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly
bound unto the Public Agency and all contractors, subcontractors, laborers, material suppliers, and other
persons employed in the performance of the agreement and referred to in Title 3 (commencing with Section
9000) of Part 6 of Division 4 of the Civil Code in the penal sum of
Forty seven thousand eight hundred ninety and 00/100ths dollars
Dollars ($ 47,890.00 ), for materials furnished or labor thereon of any kind, or for
amounts due under the Unemployment Insurance Act with respect to this work or labor,that the surety will pay
the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon
this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including
reasonable attorneys' fees, incurred by Public Agency in successfully enforcing this obligation, to be awarded
and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons,
companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of
Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this
Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty
assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant
to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee
may commence an action against the principal, any of its subcontractors, or both the principal and its
subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed,then this
obligation shall become null and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms
of the Contract or the specifications accompanying the same shall in any manner affect its obligations on this
l..
410 4110
, .
Bond, and it does hereby waive notice of any such change, extension, alteration,or addition.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be
deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the
name of each corporate party being hereto affixed and these presents duly signed by its undersigned
representative(s) pursuant to authority of its governing body.
Dated: November 14th,2014
"Principal" "Surety"
State National Insurance Company,Inc.administered by:
New Horizons Contracting,Inc. Contractor Managing General Insurance Agency,Inc.
111°
By: y:
Its Stephanie Hope Shear/Attorney-In-Fact
By: By:
Its Its
(Seal) (Seal)
APPROVED AS TO FORM:
•
RICHARDS, WATSON & GERSHON
A Professional Corporation
By: - •���.�
Public Age cy Attorney
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the
authority of any person signing as attorney-in-fact must be attached. IF CONTRACTOR IS A PARTNERSHIP,
ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF
CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list
(Circular 570 as amended) and be authorized to transact business in the State where the project is located.
Bond CDGP101063 1111 Premium: $1,437.00
Taxes &Fees: N/A
State National Insurance Company,Inc.Administered by:
CONTRACTOR MANAGING GENERAL INSURANCE AGENCY,INC.
POWER OF ATTORNEY
KNOW BY ALL THESE PRESENTS That STATE NATIONAL INSURANCE COMPANY, INC. a corporation organized and existing under
the laws of the State of Texas,having its principal office in Bedford,Texas does hereby constitute and appoint
Stephanie Hope Shear
its true and lawful attorney(s)-in-fact to execute,seal and deliver for and on its behalf as surety,the following bond described as:
Abatement/Demolition of Cherry Hill Lane Structures#40 and#42
for: Three Million and 00/100 Dollars($3,000,000)
and undertakings, contracts of indemnity and other writings obligatory in the nature thereof,which are or may be allowed,required or permitted by
law,statute,rule,regulation,contract or otherwise.
The execution of such instrument(s)in pursuance of these present,shall be as binding upon STATE NATIONAL INSURANCE COMPANY,INC.
as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at the
principal office.
RESOLVED that the signature of any authorized officer and the seal of the Company may be affixed by facsimile to any Power of Attorney or
certification thereof authorizing the execution and delivery of any bond, undertaking, contracts of indemnity and other writings obligatory in the
nature thereof,and such signature and seal when so used shall have the same force and effect as though manually affixed.
IN WITNESS WHEREOF,STATE NATIONAL INSURANCE COMPANY,INC.has
caused this instrument to be signed and its corporate seal to be affixed by its authorized
officer,this 24th day of March,2014.
STATE NATIONAL INSURANCE COMPANY,INC.
Terry L.Ledbetter,President Trace Ledbetter,Secretary
STATE OF TEXAS
County of Tarrant
On this24th day of March,2014 before me came the individuals who executed the preceding instrument,to me personally known, and being by me
duly sworn, said that each of the herein described and authorized officer of STATE NATIONAL INSURANCE COMPANY, INC.; that the seal
affixed to said instrument is the Corporate Seal of said Company;that the Corporate Seal and each signature were duly affixed by order of the Board
of Directors of said Company.
IN WITNESS WHEREOF,I have hereunto set my hand at Bedford,Texas the day and year above written.
��R� Mindy v1S
et. Notary Public. • .
State of'Texas
cf Comm.Exp.04-21-15 s
•
[Notary Stamp] Signature of Notary
I, Trace Ledbetter, Secretary of STATE NATIONAL INSURANCE COMPANY, INC., do hereby certify that the above and foregoing is a true
and correct copy of a Power of Attorney executed by STATE NATIONAL INSURANCE COMPANY,INC.,which is still in full force and effect.
IN WITNESS WHEREOF,I have thereunto set my hand and attested the seal of said Company this 14th day of November ,2014
P*e;fte,e_ pcb,./.4aet ;
Trace Ledbetter,Secretary
CMGIA-SNIC-SUR-014-03/14
", IP•1 t 1
CALIFORNIA ALL - PURPOSE ACKNOWLEDGEMENT
State of California
County of Los Angeles
NOV1 4 2014
On before me, JAN MICHELLE RIVERA, NOTARY PUBLIC
DATE NAME,TITLE OF OFFICER
Personally appeared STEPHANIE HOPE SHEAR .
NAME(S)OF SIGNER(S)
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 his/her/their authorized ca acl les and that
. P tY( )� by
his/her/their signature(s) on the instrument the person(s), or the entityupon behalf
. p
of which the person(s) acted, executed the instrument.
1 certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
JAN MICHELLE RIVERA
WITNESS my hand and official seal. Commission#1939902
4 ,=•'
--r,;!a! Notary Public-California
Los Angeles County
"'• My Comm. Expires Jul 3,2015
1111
SIGNA %i R OF NOTARY NOTARY SEAL
• e
AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS
1. Contractor acknowledges that the project as defined in this Agreement between Contractor and
the City, to which this Agreement to Comply with California Labor Law Requirements is attached and
incorporated by reference, is a "public work" as defined in Division 2, Part 7, Chapter 1 (commencing with
Section 1720) of the California Labor Code ("Chapter 1"), and that this Agreement is subject to (a) Chapter 1,
including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the
Director of Industrial Relations ("DIR") implementing such statutes. Contractor shall perform all work on the
project as a public work. Contractor shall comply with and be bound by all the terms, rules and regulations
described in 1(a) and 1(b) as though set forth in full herein.
2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The
inclusion of such specific provisions below, whether or not required by California law, does not alter the
meaning or scope of Section 1 above.
3. Pursuant to Labor Code Section 1771.4, Contractor shall post job site notices, as prescribed by
regulation.
4. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each
craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made
available to any interested party on request. Contractor acknowledges receipt of a copy of the DIR
determination of such prevailing rate of per diem wages, and Contractor shall post such rates at each job site
covered by this Agreement.
5. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and
1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay
prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each
calendar day,or portion thereof,for each worker paid less than the prevailing rates as determined by the DIR for
the work or craft in which the worker is employed for any public work done pursuant to this Agreement by
Contractor or by any subcontractor.
6. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776,which
requires Contractor and each subcontractor to (1) keep accurate payroll records and verify such records in
writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available
for inspection as provided by Section 1776,and (3) inform the City of the location of the records.
7. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5,
1777.6 and 1777.7 and California Administrative Code title 8, section 200 et seq. concerning the employment of
apprentices on public works projects. Contractor shall be responsible for compliance with these
aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement,
Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship
program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its
subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed
under this Agreement.
8. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor
shall comply with and be bound by Labor Code Section 1810. Contractor shall comply with and be bound by the
provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor
shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of
this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is
required or permitted to work more than eight (8) hours in any one (1) calendar day and forty (40) hours in any
one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code.
Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of 8 hours per day,
and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked
in excess of 8 hours per day at not less than 11/2 times the basic rate of pay.
•
9. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to
secure the payment of compensation to its employees. In accordance with the provisions of California Labor
Code Section 1861,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."
10. For every subcontractor who will perform work on the project, Contractor shall be responsible
for such subcontractor's compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Contractor
shall include in the written contract between it and each subcontractor a copy of those statutory provisions and
a requirement that each subcontractor shall comply with those statutory provisions. Contractor shall be
required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's
compliance, including without limitation, conducting a periodic review of the certified payroll records of the
subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the
specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any failure.
11. To the maximum extent permitted by law,Contractor shall indemnify, hold harmless and defend
(at Contractor's expense with counsel reasonably acceptable to the City) the City, its officials, officers,
employees, agents and independent contractors serving in the role of City officials, and volunteers from and
against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or
incidental to any acts or omissions listed above by any person or entity(including Contractor, its subcontractors,
and each of their officials, officers, employees and agents) in connection with any work undertaken or in
connection with the Agreement, including without limitation the payment of all consequential damages,
attorneys' fees, and other related costs and expenses. All duties of Contractor under this Section shall survive
termination of the Agreement.
Date: (
Signature 1:
Signature 2: