18-056 Alvarnaz Construction, Portal Park Demolition ProjectCITY OF g PUBLIC WORKS CONTRACT
$45,000 OR LESS
CUPERTINO
1. PARTIES
This public works contract ("Contract") is made and entered into on March 6 2018
("Effective Date") by and between the City of Cupertino, a municipal corporation ("City"), and
Alvarnaz Construction , a Sole Proprietorship/Individ
("Contractor") for Portal Park Demolition Project
2. SCOPE OF WORK
Contractor will perform and provide all labor, materials, equipment, supplies, transportation and any
other items or work necessary to perform and complete the work required for the Project ("Work"), as
required in the Scope of Work, attached here and incorporated as Exhibit A, and in accordance with
the terms and conditions of this Contract.
3. TIME FOR COMPLETION
3.1 Term. This Contract begins on the Effective Date and ends on June 15, 2018
("Contract Time") unless terminated earlier as provided herein. Contractor's Work shall begin on the
date shown on a written Notice to Proceed ("NTP") and must be fully completed within the Contract
Time or on the date specifically provided in the Notice lo Proceed. The City Engineer will not issue a
NTP until the Contract is fully executed by both parties and City has received satisfactory proof of
insurance and any performance and payment bonds that may be required.
3.2 Time is of the essence for Contractor's performance and completion of the Work. Contractor
must have sufficient time, resources, and qualified staff to deliver the work on time.
3.3 Liquidated damages of$ 200.00 will be charged for each day of unexcused delay,
or City may deduct the amount from Contractor's payments. Liquidated damages are based on
reasonably foreseeable consequences of delay and may include intangible losses which the Parties
agree may be difficult to ascertain, such as loss of public confidence in City and its contractors,
interference or loss of use of public facilities, and extended disruption to the public.
4. COMPENSATION
4.1 Maximum Compensation. City will pay Contractor for satisfactory performance of the Work
an amount that will based on actual costs but that will be capped so as not to exceed $ 24 300.00
("Contract Price"), for all of Contractor's direct and indirect costs, including all labor, materials,
supplies, equipment, taxes, insurance, bonds and all overhead costs.
4.2 Invoices and Payments. Contractor must submit an invoice on the first day of each month,
describing the Work performed during the preceding month, itemizing labor, materials, equipment and
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Public Works Contract $45,000 /Rev. Nov 3, 2017
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any incidental costs incurred. Contractor will be paid 95% of the undisputed amounts billed within 30
days after City receives a properly submitted invoice. Any retained amounts will be included with
Contractor's final payment within 60 days of City's acceptance of the Work as complete.
5. INDEPENDENT CONTRACTOR
5.1 Status. Contractor is an independent contractor and not an employee of City. Contractor is
solely responsible for the means and methods of performing the Work and for the persons under this
employment. Contractor is not entitled to worker's compensation or any other City benefits.
5.2 Contractor's Qualifications. Contractor warrants on behalf of itself and its subcontractors that
they have the qualifications and skills to perform the Work in a competent and professional manner and
according to the highest standards and best practices in the industry.
5.3 Permits and Licenses. Contractor warrants on behalf of itself and its subcontractors that they
are properly licensed, registered, and/or certified to perform the Work as required by law, and have
procured a City Business License. Contractor shall possess a California Contractor's License in good
standing for the following classification(s): B , which
must remain valid for the entire Contract Time.
5.4 Subcontractors. Only Contractor's employees are authorized to work under this Contract.
Prior written approval from City is required for any subcontractor, and the terms and conditions of this
Contract will apply to any approved subcontractor.
5.5 Tools, Materials and Equipment. Contractor will supply all tools, materials and equipment
required to perform the Work under this Contract.
5.6 Payment of Taxes. Contractor must pay income taxes on the money earned under this
Contract. Upon City's request, Contractor will provide proof of payment and will indemnify City for
violations pursuant to the indemnification provision of this Contract.
6. CHANGE ORDERS
Amendments and change orders must be in writing and signed by City and Contractor. Contractor's
request for a change order must specify the proposed changes in the Work, Contract Price, and
Contract Time. Each request must include all the supporting documentation, including but not limited
to plans/drawings, detailed cost estimates, and impacts on schedule and completion date.
7. ASSIGNMENTS; SUCCESSORS
Contractor shall not assign, hyp'othecate, or transfer this Contract or any interest therein, directly or
indirectly, by operation oflaw or otherwise, without prior written consent of City. Any attempt to do
so will be null and void. Any changes related to the financial control or business nature of Contractor
as a legal entity is considered an assignment of the Contract and subject to City approval, which shall
not be unreasonably withheld. Control means fifty percent (50%) or more of the voting power of the
business entity. This Contract is binding on Contractor, its heirs, successors and permitted assigns
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8. PUBLICITY/ SIGNS
Any publicity generated by Contractor for the Project during the Contract Time, and for one year
thereafter must credit City contributions to the ProJect. The words "City of Cupertino" must be
displayed in all pieces of publicity, flyers, press releases, posters, brochures, interviews, public service
announcements and newspaper articles. No signs may be posted or displayed on or about City
property, except signage required by law or this Contract, without prior written approval from the City.
9. SUBCONTRACTORS
9.1 Contractor must perform all the Work with its own forces, except that Contractor may hire
qualified subcontractors to perform up to 50 % of the Work, provided that each subcontractor
is required by contract to be bound by the provisions of this Contract. Contractor must provide City
with written proof of compliance with this provision upon request.
9.2 City may reject any subcontractor of any tier and bar a subcontractor from performing Work on
the Project, if City in its sole discretion determines that subcontractor's Work falls short of the
requirements of this Contract or constitutes grounds for rejection under Public Contract Code Section
4107. If City rejects a subcontractor, Contractor at its own expense must perform the subcontractor's
Work or hire a new subcontractor that is acceptable to City. A Notice of Completion must be recorded
within 15 days after City accepts the Work if the Contract involves work by subcontractors.
10. RECORDS AND DAILY REPORTS
10.1 Contractor must maintain daily reports of the Work and submit them to City upon request and
at completion of Project. The reports must describe the Work and specific tasks performed, the number
of workers, the hours, the equipment, the weather conditions, and any circumstances affecting
performance. City will have ownership of the reports, but Contractor will be permitted to retain copies.
10.2 If applicable, Contractor must keep a separate set of as-built drawings showing changes and
updates to the Scope of Work or the original drawings as changes occur. Actual locations to scale must
be identified for all major components of the Work, including mechanical, electrical and plumbing
work; HVAC systems; utilities and utility connections; and any other components City determines
should be included in the final drawings of the Project. Deviations from the original drawings must be
shown in detail, and the location of all main runs, piping, conduit, ductwork, and drain lines must be
shown by dimension and elevation.
10.3 Contractor must maintain complete and accurate accounting records of its Work, in accordance
with generally accepted accounting principles, which must be available for City review and audit, kept
separate from other records, and maintained for four years from the date of City's final payment.
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11. INDEMNIFICATION
11.1 To the fullest extent allowed by law, and except for losses caused by the sole and active
negligence or willful misconduct of City personnel, Contractor shall indemnify, defend, and hold
harmless City, its City Council, boards and commissions, officers, officials, employees, agents,
servants, volunteers and consultants ("Indemnitees"), through legal counsel acceptable to City, from
and against any and all liability, damages, claims, stop notices, actions, causes of action, demands,
charges, losses and expenses (including attorney fees, legal costs and expenses related to litigation and
dispute resolution proceedings), of every nature arising directly or indirectly from this Contract or in
any manner relating to any of the following:
(a) Breach of contract, obligations, representations or warranties;
(b) Performance or nonperformance of the Work or of any obligations under the Contract by
Contractor, its employees, agents, servants, subcontractors or subcontractors;
( c) Payment or nonpayment by Contractor or its subcontractors or sub-subcontractors for Work
performed on or off the Project Site; and
( d) Personal injury, property damage, or economic loss resulting from the work or performance of
Contractor or its subcontractors or sub-subcontractors.
11.2 Contractor must pay the costs City incurs in enforcing this provision. Contractor must accept a
tender of defense upon receiving notice from City of a third-party claim, in accordance with California
Public Contract Code Section 9201. At City's request, Contractor will assist City in the defense of a
claim, dispute or lawsuit arising out of this Contract.
11.3 Contractor's duties under this entire Section are not limited to Contract Price, Workers'
Compensation or other employee benefits, or the insurance and bond coverage required in this
Contract. Nothing in the Contract shall be construed to give rise to any implied right of indemnity in
favor of Contractor against City or any other Indemnitee.
11.4 Contractor's payments may be deducted or offset to cover any money the City lost due to a
claim or counterclaim arising out of this Contract, a purchase order or other transaction.
12. INSURANCE
Contractor shall comply with the Insurance Requirements, attached and incorporated here as Exhibit
B. Contractor must provide satisfactory proof of insurance and maintain it for the Contract Time or
longer as required by City. City will not execute the Contract until City has approved receipt of
satisfactory certificates of insurance and endorsements evidencing the type, amount, class of operations
covered, and the effective and expiration dates of coverage. Failure to comply with this provision may
result in City, at its sole discretion and without notice, purchasing insurance at Contractor's expense,
deducting the costs from Contractor's compensation, or terminating the Contract.
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Public Works Contract $45,000 /Rev. Nov 3, 2017
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13. COMPLIANCE WITH LAWS
13.1 General Laws. Contractor shall comply with all laws and regulations applicable to this
Contract. Contractor will promptly notify City of changes in the law or other conditions that may affect
the Project or Contractor's ability to perform. Contractor is responsible for verifying the employment
status of employees performing the Work, as required by the Immigration Reform and Control Act
13.2 Labor Laws.
(a) Contracts of$1,000 or more are subject to the requirements of the California Labor Code,
including but not limited to:
(i) Prevailing wage laws under Labor Code Section 1775, which require Contractor
to pay prevailing wages applicable in Santa Clara County for each craft,
classification, or type of worker needed to perform the Work, including health,
pension and vacation. The prevailing wage rates are on file with the City
Engineer's office and are available online at http://www.dir.ca.gov/DLSR;
(ii) Apprenticeship requirements under Labor Code Section 1777.5 for Contacts
$30,000 or more;
(iii) Maintain certified payroll records in accordance with Labor Code Sections 1776
and 1812, and electronically submit them to the Labor Commissioner as
required by the regulations of California, Department oflndustrial Relations
("DIR");
(iv) Comply with DIR Monitoring, Enforcement and Registration requirements of
Labor Code Section 1725.5.
(b) Contractor must compensate _;,,orkers who are paid less than prevailing wages or required to
work more than a legal day's work. Contractor will also be required to pay City a penalty of
$ 200.00 per worker for each day of violation.
( c) As required by Labor Code Section 1861, by signing this Contract Contractor certifies as
follows: "I am aware of Labor Code Section 3700 which requires 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
Work on this Contract."
13.3 Discrimination Laws. Contractor shall not discriminate on the basis of race, religious creed,
color, ancestry, national origin, ethnicity, handicap, disability, marital status, pregnancy, age, sex,
gender, sexual orientation, gender identity, Acquired-Immune Deficiency Syndrome (AIDS) or any
other protected classification. Contractor shall comply with all anti-discrimination laws, including
Government Code Sections 12900 and 11135, and Labor Code Sections 1735, 1777 and 3077.5.
Consistent with City policy prohibiting harassment and discrimination, Contractor understands that
harassment and discrimination directed toward a job applicant, an employee, a City employee, or any
other person, by Contractor or Contractor's employees or sub-contractors will not be tolerated.
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13.4 Conflicts of Interest. Contractor, its employees, subcontractors, servants and agents, may not
have, maintain or acquire a conflict of interest in relation to this Contract in violation of law, including
Government Code section I 090 and Government Code section 8 I 000 and tbeir accompanying
regulations. No officer, official, employee, consultant, or other agent of the City ("City
Representative") may have, maintain, or acquire a "financial interest" in the Contract, as tbat term is
defined by state law, or in violation of a City ordinance or policy while serving as a City
Representative or for one year thereafter. Contractor, its employees, subcontractors, servants and
agents warrant they are not employees of City or have any relationship with City officials, officers or
employees that creates a conflict of interest. Contractor may be required to file a conflict of interest
form if it makes certain governmental decisions or serves in a staff capacity, as defined in section
18700 of the California Code of Regulations. Contractor agrees to abide by City rules governing gifts
to public officials and employees.
13.5 Remedies. Any violation of Section 13 constitutes a material breach and may result in City
suspending payments, requiring reimbursement, or terminating the Contract. City reserves all rights
and remedies under tbe law and tbis Contract, including seeking indemnification.
14. BONDS
For contracts of $25,000 or more, Contractor must obtain a payment bond and a performance bond,
each in tbe penal sum of I 00% of the Contract Price, using the Bond Forms attached and incorporated
here as Exhibit C. Each bond must be issued by a surety admitted in California, witb a financial rating
from A.M. Best Company of Class A-or higher, or as otherwise acceptable to City. If an issuing surety
cancels a bond or becomes insolvent, Contractor must provide a substitute bond from a surety
acceptable to City within seven calendar days after written notice from City. If Contractor fails to do
so, City may in its sole discretion and witbout prior notice, purchase bonds at Contractor's expense,
deduct the cost from payments due Contractor, or terminate the Contract. City will not execute the
Contract nor issue the NTP until the required bonds are submitted.
15. UTILITIES, TRENCHING AND EXCAVATION
15.1 Contractor must call tbe Underground Service Alert ("USA") 81 I hotline and request marking
of utility locations before digging or commencing Work. For underground service alerts for street
lighting and traffic signal conduits, City's Service Center must be called at (408) 777-3269.
Government Code Section 4215 requires Contractor to notify City and Utility in writing if it discovers
utilities or utility facilities not identified in tbe Contract.
15.2 Pursuant to Government Code Section 7104, Contractor must stop work, notify City in writing,
and wait for instructions if one of the conditions below is found at the worksite. City will work with
Contractor to amend the Contract or issue a change order if the discovered conditions materially
change the Work/Performance, Contract Time or Contract Price.
(a) Material believed to be hazardous waste under Healtb and Safety Code Section 251 I 7, and
which requires removal to a Class I, Class II, or Class III disposal site pursuant to law;
(b) Subsurface or latent physical conditions at tbe Project worksite differing from those
indicated by information about the worksite made available to Contractor; and
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(c) Unknown physical conditions at the Project worksite of any unusual nature, materially
different from those ordinarily encountered and from those generally recognized as inherent
in the character of the Work.
15.3 For contracts $25,000 or higher that require excavation or involve trenches five feet or more in
depth, Contractor must submit a detailed plan for City approval, per Labor Code Section 6705 prior to
commencing work. The plan must show the design of shoring, bracing, sloping and other provisions
for worker protection from caving ground and other hazards. The protective system must comply with
all Construction Safety Orders. If the plan varies from shoring system standards, it must be prepared
by a registered civil or structural engineer.
16. URBAN RUNOFF MANAGEMENT
16.1 All Work must fully comply with federal, state and local laws and regulations concerning storm
water management. Contractor must avoid creating excess dust when breaking asphalt or concrete and
during excavation and grading. If water is used for dust control, Contractor will use only the amount of
water necessary to dampen the dust. Contractor will take all steps necessary to keep wash water out of
the streets, gutters and storm drains. Prior to the start of the Work, Contractor will implement erosion
and sediment controls to prevent pollution of storm drains, and must upgrade and maintain these
controls based on weather conditions or as otherwise required by City. These controls must be in place
during the entire Contract Time and must be removed at the end of construction and completion of the
Work. Such controls must include, but will not be limited to, the following requirements:
(a) Install storm drain inlet protection devices such as sand bag barriers, filter fabric fences, and
block and gravel filters at all drain inlets impacted by construction. During the annual rainy
season, October 15 through June 15, storm drain inlets impacted by construction work must be
filter-protected from onsite de-watering activities and saw-cutting activities. Shovel or vacuum
saw-cut slurry and remove from the Work site;
(b) Cover exposed piles of soil or construction material with plastic sheeting. Store all construction
materials in containers;
( c) Sweep and remove all materials from paved surfaces that drain to streets, gutters and storm
drains prior to rain and at the end of each work day. When the Work is completed, wash the
streets, collect and dispose of the wash water offsite in lawful manner;
( d) After breaking old pavement, remove debris to avoid contact with rainfall/runoff;
( e) Maintain a clean work area by removing trash, litter, and debris at the end of each work day
and when Work is completed. Clean up any leaks, drips, and other spills as they occur.
16.2 These requirements must be used in conjunction with the California Stormwater Quality
Association and California Best Management Practices Municipal and Construction Handbooks, local
program guidance materials from municipalities, and any other applicable documents on stormwater
quality controls for construction. Contractor's failure to comply with this Section will result in the
issuance of noncompliance notices, citations, Work stop orders and regulatory fines.
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17. PROJECT COORDINATION
City Project Manager. City assigns Brian Gathers, Public Works supervisor as
the City representative for all purposes under this Contract, with authority to require compliance with
the Scope of Work. City may substitute Project Managers at any time and without prior notice to
Contractor.
Contractor Project Manager. Subject to City approval, Contractor assigns Michael Alvernaz, Owne
-------------------as its single representative for all purposes under
this Contract, with the responsibility to ensure progress with the Work. Contractor's Project Manager
is responsible for coordinating and scheduling the Work and must regularly update the City Project
Manager about the status and any delays with the Work, consistent with the Scope of Work. Any
substitutions must be approved in writing by City.
18. ABANDONMENT AND TERMINATION
18.1 City may abandon or postpone the Project or parts therefor at any time. Contractor will be
compensated for satisfactory Work performed through the date of abandonment and will be given
reasonable time to close out the Work. With City's pre-approval in writing, the time spent in closing
out the Work will be compensated up to 10% of the total time expended in performing the Work.
18.2 City may terminate the Contract for cause or without cause at any time. Contractor will be paid
for satisfactory Work rendered through the termination date and will be given reasonable time to close
out the Work.
18.3 Final payment will not be made until Contractor delivers the Work and provides records
documenting the Work, products and deliverables completed. Nothing in the Section below is intended
to delay, abridge or bar City's right under this Section.
19. GOVERNING LAW, VENUE AND DISPUTE RESOLUTION
This Contract is governed by the laws of State of California. Venue for any legal action shall be the
Superior Court of the County of Santa Clara, California. The dispute resolution procedures of Public
Contract Code Section 20104, incorporated here by reference, apply to this Contract and Contractor is
required to continue the Work pending resolution of any dispute. Prior to filing a lawsuit, Contractor
must comply with the claim filing requirements of the California Government Code. If the Parties elect
arbitration, the arbitrator's award must be supported by law and substantial evidence and include
detailed written findings oflaw and fact.
20. ATTORNEY FEES
If City initiates legal action, files a complaint or cross-complaint, or pursues arbitration, appeal, or
other proceedings to enforce its rights or a judgment in connection with this Contract, the prevailing
party will be entitled to reasonable attorney fees and costs.
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21. SIGNS/ADVERTISEMENT
No signs may be displayed on or about City's property, except signage which is required by law or by
the Contract, without City's prior written approval as to size, design and location.
22. THIRD PARTY BENEFICIARIES
There are no intended third party beneficiaries of this Contract.
23. WAIVER
Neither acceptance of the Work nor payment thereof shall constitute a waiver of any contract
provision. City waiver of any breach shall not constitute waiver of another provision or breach.
26. WARRANTY
Contractor warrants that materials and equipment used will be new, of good quality, and free from
defective workmanship and materials, and that the Work will be free from material defects not intrinsic
in the design or materials. All Work, materials and equipment should pass to City free of claims, liens
or encumbrances. Contractor warrants the Work and materials for one year from the date of City's
acceptance of the Work as complete ("Warranty Period"), except when a longer guarantee is provided
by a supplier, manufacturer or is required by this Contract. During the Warranty Period, Contractor
will repair or replace any Work defects or materials, including damage that arises from Contractor's
Warranty Work, except any wear and tear or damage resulting from improper use or maintenance.
27. ENTIRE CONTRACT
This Contract and the attachments, documents, and statutes attached, referenced, or expressly
incorporated herein, including authorized amendments or change orders constitute the final and
complete contract between City and Contractor with respect to the Work and the Project. No oral
contract or implied covenant will be enforceable against City. If any attachment or incorporated
provisions conflict or are inconsistent with the terms of this Contract, the Contract terms will control.
28. SEVERABILITY/P ARTIAL INVALIDITY
If a court finds any term or provision of this Contract to be illegal, invalid or unenforceable, the legal
portion of said provision and all other contract provisions will remain in full force and effect.
28. SURVIVAL
The contract provisions which by their nature should survive the Contract or Completion of Project,
including without limitation all warranties, indemnities, payment obligations, insurance and bonds,
shall remain in full force and effect after the Work is completed or Contract ends.
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29. INSERTED PROVISIONS
Each provision and clause required by law to be inserted in this Contract will be deemed to be included
and will be inferred herein. Either party may request an amendment to cure mistaken insertions or
omissions of required provisions.
30. CAPTIONS
The captions, titles, and headings in this Contract are for convenience only and may not be used in the
construction or interpretation of the Contract or for any other purpose.
31. COUNTERPARTS
This Contract may be executed in counterparts, each of which is an original and all of which taken
together shall form one single document.
20. NOTICES
All notices, requests, and approvals must be sent in writing to the persons below and will be
considered effective on the date of personal delivery, the date confirmed by a reputable overnight
delivery service, on the fifth calendar day after deposit in the United States Mail, postage prepaid,
registered or certified, or the next business day following electronic submission:
To City of Cupertino:
10300 Torre Avenue, Cupertino CA 95014
Attention: Brian Gathers, Public Works Supervisor
Copy to: Carl Valdez, Superintendent
Email: briang@cupertino.org
30. VALIDITY OF CONTRACT
To Contractor:
Alvernaz Construction PO Box 366 San Martin, CA. 95046
Attention: Michael Alvernaz
Copy to: ____________ _
Email: michaelalvernaz@alvernazconstruction.c
This Contract is valid and enforceable only if (a) it complies with the purchasing and contract
provisions of Cupertino Municipal Code Chapters 3.22 and 3.23, (b) is signed by the City Manager or
an authorized designee, and ( c) is approved for form by the City Attorney's Office.
32. EXECUTION
The persons signing below warrant they have the authority to enter into this Contract and to legally
bind their respective Parties. If Contractor is a corporation, signatures from two officers of the
corporation are required pursuant to California Corporations Code Section 313.
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Public Works Contract $45,000 /Rev. Nov 3, 2017
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IN WITNESS WHEREOF, the parties have caused this Contract to be executed as of the Execution
Date first above written.
CONTRACTOR Alvernaz Construction
Michael Alvernaz
SolePr;;~
By:--'-'~'-"----~c__ _____ .,4-____ _
Title: Owner
Signature Date: _ _.J_,_-_0=-_-c__/_~_· ___ _
Cupertino City Attorney
ATTEST:
By: l)J
CITY OF CUPERTINO,
a Municipal Corporation
By:···~
T" 0 ...
Title: Director of Public Works
Signature Date: __ l(.l..J/'-";J'--'/-'--1 i"------------
GRACE SCHMIDT, City Clerk Lj "J L -( f
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Public Works Contract $45,000 /Rev. Nov 3, 2017
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NEW WORK ORDER
To; Brian Gathers
City of Cupertino
10300 Torre Avenue
r, /' /.,...... ·-
r.-. .
Alvernaz Construction
Po Box 366
San Martin CA 95046
License # 711435
408-595-2817
February 8, 2018
JOB LOCATION
PORTAL PARK
1-Excavate existing concrete slab and sidewalks -approximately 2,200 sq. ft.
2-Remove existing concrete bricks approximately 300-LF.
3-Remove nine concrete with steel columns
4-Remove approximately 40' of existing wire fence
5-All dump fees included.
6-Clean all unnecessary materials.
Thank you,
Michael Alvernaz
Total Cost Materials and Labor S 24,300.00
PUBLIC fVORKS CONSTRUCTION CONTRACTS
Small Projects -$45,000
Insurance Requirements: Exhibit B
Contractor shall procure and maintain for the duration of the contract, and for five years following the completion of
the Project, 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 Contractor, its agents, representatives, employees or
subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 0 I covering CGL on an
"occurrence" basis, written on a comprehensive general liability form, and must include coverage for liability
arising from Contractor's or Subcontractor's acts or omissions, including Contractor's protected coverage,
blanket contractual, products and completed operations, vehicle coverage and employer's non-ownership liability
coverage, with limits of at least $2,000,000 per occurrence. The CGL policy must protect against any and all
liability for personal injury, death, property damage or destruction, and personal and advertising injury. If a general
aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG
25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
a. It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess
of the specified minimum insurance coverage requirements and/or limits shall be made available to the
Additional Insured and shall be (I) the minimum coverage/limits specified in this agreement; or (2) the broader
coverage and maximum limits of coverage of any insurance policy, whichever is greater.
b. Additional Insured coverage under Contractor's policy shall be "primary and non-contributory," will not seek
contribution from City's insurance/self-insurance, and shall be at least as broad as ISO CG 20 01 04 13
c. The limits of insurance required may be satisfied by a combination of primary and umbrella or excess
insurance, provided each policy complies with the requirements set forth in this Contract. Any umbrella or
excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a
primary and non-contributory basis for the benefit of City before the City's own insurance or self-insurance
shall be called upon to protect City as a named insured.
2. Automobile Liability: ISO Form CA 00 01 coveling any auto (Code!), or if Contractor has no owned autos, then
hired autos (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily
injury and property damage.
3. Workers' Compensation: As required by the State of California, with Statutory Limits, and
Employer's Liability Insurance ofno less than $1,000,000 per accident for bodily injury or disease, or as otherwise
required by statute. If Contractor is self-insured, Contractor must provide a Certificate of Permission to Self-Insure,
duly authorized by the DIR.
0 NIA if box checked (Contractor provides written verification it has no employees).
4. Profes~ional Liability with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 aggregate. ~ NIA if box checked (Contract is not design/build).
5. Builder's Risk. Course of Construction insurance utilizing an "All Risk" (Special Perils) coverage form, with
lim~ts t;qual to the completed value of the project and no coinsurance penalty provisions.
~ NI A if box checked (Project does not involve construction or improvements/installations to property).
Insurance Requirements/or Construction Contracts -$45,000 Version: Nov 2017
---.. ··----·---------------·
6. Contractors' Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions with limits
no jess than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate .
.,.,18( NI A if box checked (Project does not involve environmental hazards).
If Contractor maintains broader coverage and/or higher limits than the minimums shown above, City requires and
shall be entitled to the broader coverage and/or higher limits maintained by the contractor. Any available insurance
proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Self-Insured Retentions. Self-insured retentions must be declared to and approved by City. At City's option, either:
(I) Contractor shall cause the insurer to reduce or eliminate self-insured retentions as respects City, its officers,
officials, employees, and volunteers; or (2) Contractor shall provide a financial guarantee satisfactory to City
guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy
language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named
insured or the City.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers are to be covered
as additional insmeds on the COL policy with respect to liability arising out of the Services performed by or on behalf
of Contractor including materials, parts, or equipment furnished. Endorsement of COL coverage shall be at least as
broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33,
or CG 20 38; and CG 20 37 if a later edition is used.
Primary Coverage
For any claims related to this Project, Contractor's insurance coverage shall be "primary and non-contributory" and
at least as broad as ISO CG 20 01 04 13 with respect to City, its officers, officials, employees and volunteers, and shall
not seek contribution from City's insurance. If the limits of insurance are satisfied in part by Umbrella/Excess
Insurance, the Umbrella/Excess Insurance shall contain or be endorsed to contain a provision that such coverage shall
also apply on a "primary and non-contributory" basis for the benefit of City.
Notice of Cancellation
Each insurance policy required shall provide that coverage shall not be canceled, except with notice to the City. Each
certificate of insurance must state that the coverage afforded by the policy is in force and will not be reduced, cancelled
or allowed to expire without at least 30 days advance written notice to City, unless due to non-payment of premiums,
in which case ten days advance written notice must be provided to City. Such notice must be sent to City via certified
mail and addressed to the attention of the City Manager.
Builder's Risk
Contractor may submit Builder's Risk insurance in the form of Course of Construction coverage, which shall name
the City as a loss payee, as its interest may appear. The Builder's Risk policy must be issued on an occurrence basis,
for all-risk coverage on a 100% completed value basis on the insurable portion of the Project, with no coinsurance
penalties, and for the benefit of City. If the Project does not involve new or major reconstruction, City may elect, acting
in its sole discretion, to accept an Installation Floater policy instead of Builder's Risk. For such projects, the Property
Installation Floater shall include improvement, remodel, modification, alteration, conversion or adjustment to existing
buildings, structures, processes, machinery and equipment, and shall provide property damage coverage for any
building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the
Work, including during transit, installation, and testing at the City's site.
Insurance Requirements for Construction Contracts -$45,000 Version: Nov 2017
2
Waiver of Subrogation
Each required policy must include an endorsement providing that the carrier agrees to waive any right of subrogation
it may have against City. Contractor agrees to waive rights of subrogation which any insurer of Contractor may acquire
from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be
necessary to affect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of
subrogation in favor of the City for all work perfom1ed by the Contractor, its employees, agents and subcontractors.
Acceptability of Insurers
Insurance must be issued by insurers acceptable to City and licensed to do business in the State of California, and each
insurer must have an A.M. Best's financial strength rating of"A" or better and a fmancial size rating of"VII" or better.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements, or copies of the applicable
insurance langnage, effecting coverage required by this contract. All certificates and endorsements are to be received
and approved by the City before work commences. The City reserves the right to require complete, certified copies
of all required insurance policies, including endorsements, required by these specifications, at any time.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated
herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For
CGL coverage subcontractors shall provide coverage with a fon11 at least as broad as CG 20 38 04 13.
Surety Bonds
As required by Contract and described in the Contract Documents. The Payment and Perfon11ance Bonds shall be in a
sum equal to the Contract Price. If the Perfon11ance Bond provides for a one-year warranty a separate Maintenance
Bond is not necessary. If the warranty period specified in the Contract is for longer than one year a Maintenance Bond
equal to 10% of the Contract Price is required. Bonds shall be duly executed by a responsible corporate surety,
authorized to issue such bonds in the State of California and secured through an authorized agent with an office in
California.
Special Risks or Circumstances
City reserves the right to modify these requirements, based on the nature of the risk, prior experience, insurer, coverage,
or other circumstances.
Insurance Req11irementsfor Construction Contracts -$45,000 Version: Nov 2017
3
―
COVERAGES CERT:F:CATE NUMBER:REVIS10N NUMBER:
ハCORが CERT:F:CATE OF LIABILITY INSURANCE DATE(MM′DD―)04ノ 16ノ 18
THIS CERT!FiCATE IS iSSUED AS A MATTER OF INFORMAT:ON ONLY AND CONFERS NO R:GHTS UPON THE CERT!F!CATE HOLDER.TH:S
CERT!FiCATE DOES NOT AFF:RMAT!VELY OR NEGAT!VELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POL!CiES
BELOW. THiS CERTIFiCATE OF!NSURANCE DOES NOT CONST!TUTE A CONTRACT BETWEEN THE iSSuiNG:NSURER(S),AUTHOR!ZED
REPRESENTAT:VE OR PRODuCER,AND THE CERTlFiCATE HOLDER.
lMPORTANT: if the certificate ho!deris an ADD:T:ONAL INSU RED,the policy(ies)must have ADDIT:ONAL:NSURED provisions or be endorsed.
lf SUBROGATiON IS WA:VED,subieCt tO the terms and conditions of the po!icy,certain policies may require an endorsement, A statement on
this certricate does not confer面 ghts to the certricate hO:derin lieu of such endorsem9116)・
PRODuCER
BELL PLAZA INSURANCE
991 W Hedding St Ste 108
San」ose,CA 95126
0891409
CONTACTNAME:
閣Ptt Fn:“0助 288‐8400 1離 .蹴
“
08124←7205
:メ H彗 卜ss insurance@bel:plaza.com
INSuRER(S)AFFORDINC COVERAGE NAIC#
lNsuRER A. Prefered cohtractoE lhaurance company 12497
:NSuRED
Alvernaz Construction
Michael Alvernaz
12120 Central Ave
San Martin, CA 95046
TNSURER B , PCIA
tNsuRER c : PCIA
INSURERO: StAtEFUNd
INSURER E:
THlS IS TO CERTIFY THAT THE POLIC!ES OFINS∪RANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POL:CY PER10D
INDICATED NOTυ VITHSTANDlNG ANY REQUlREMENT,TERM OR COND:T10N OF ANY CONTRACT OR OTHER DOCUMENT W TH RESPECT TO llVHICH THIS
CERTIFICATE MAY BE:SSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLiCIES DESCRIBED HEREIN IS SUB」ECT TO ALL THE TERMS,
EXCLUS10NS AND COND!T10NS OF SUCH POLICIES LIMITS SHOVVN MAY HAVE BEEN REDUCED BY PAID CLAIMS
lNSR TYPE OFINSuRANCE POLICY NuMBER POLICY EFF
`MM′
DD―lPOL:CY EXP
(MM′DDハ～γ｀イ)L:M:TSAX
ヨ c□MttMADE図 OCCUR
B:Ded Sl,000YY
PCA5026‐PC259524 01′25′18 01725′19
EACH OCCURRENCE 2,000,000
DAMAGE TO RENTED
PREMISES(Ea occurence)$× MEO EXP (Anv one Derson)$5,000
×PD Ded Sl1000 PERSONAL&ADVIN」URY $ 1,000,000
1'L ACGREGATE LIMIT APPLIES PER:
PttCY□鵬□ЮC GENERAL AGGREGATE$4,000,000
PRODUCTS―COMP′OP AGG$2,000,000
Hired Auto PD ACVSB
OM08:LE LIAB:Liマ γ
ANY AUTO
螂叩i鼈YY PCA5026‐PC259524 01′25′18 01′25′19
COMBINED SINGLE LIMI
`Ea accident)
S l,000,000
BOOILY INJURY (Per person)$80DlLY IN」URY(Per aCCidOnt)$PROPERTY DAMAGE$Hired Auto PDSC
×UMBRELLA L:AB
EXCESS L:AB 刊:li∥:_MADE PCA5026‐PC259524 01′25′18 01′25′19
EACH OCCURRENCE$AGGREGATE $ 5,000,000
o=o lXl ^.t.*r,o*s 1o,ooo$DWORKERS COMPENSAT10N
AND EMPLOYERS'L!AB!LITY Y′NANY PROPRIETORIPARTNERIEXECUTIVE l __ |N′A1721281 12′01717 12′01′18
× :早 肝UTEI I頷 H‐
E L EACH ACCIDENT $ 1,000,000
∬鼎:辮 編YttEXCLUDED? Ш
じと詭 貫肝 鵬
『
るPERAT10NS bdow
E L DISEASE―EA EMPLOYE[$1,000,000
E L DiSEASE‐POL CY LIMIT s l,000,000
DESCRTPTTONOFOPERATIONS/LOCATIONS/VEHICLES (ACORD'l0l,AdditionalRemarksSchedule,maybeattachedlfmorespaceisrequired)
City of Cupertino, boards and commissions, officers, officials, agents, employees, consultants and volunteers.
Commercial Umbrella Policy extends coverage on CSL Automobile Liability underlying Policy.
ERTIFiCATE HOLDER CANCELLATION
City of Cupertino - Public Works
10300 Torre Avenue
Cupertino, CA 950'14
Attn: Brian Gathers
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXP!RAT!ON DATE THEREOF, NOT!CE WILL BE DELiVERED IN
ACCORDANCE WITH THE POLICY PROV:S10NS
AU;|:;;']|;i;l]]]キ
|:llE 午―■も・イ
◎1988‐2015 ACORD A∥reserved
ACORD 25(2016ノ 03)The ACORD name and logo are registered marks of ACORD
rights
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PREFERRED CONTRACTORS INSURANCE COMPANY
RISK RETENTION GROUP, LLC
COMMERCIAL GENERAL LIABILITY POLICY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED-
STATE OR POLITICAL SUBDIVISIONS· PERMIT
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
State or Political Subdivision:
City of Cupertino, boards and commissions, officers, officials, agents, employees, consultants
and volunteers
Section II. Who Is An Insured is amended to include as an additional insured any state or
political subdivision shown in the schedule, subject to the following provisions:
I. This insurance applies only with respect to operations performed by you or on your behalf
for which the state or political subdivision has issued a permit.
2. This insurance does not apply to:
a. "Bodily Injury," "property damage" or "personal and advertising injury"
arising out of operations performed for the state or municipality; or
b. "Bodily Injury" or "property damage" included within the "products-completed
operations hazard".
Except as set forth above, all of the terms, conditions and exclusions of this policy apply and remain in effect.
Policy No.: PCJ\502ErPC2S9524
Date: 0?/27i?.01H
Time: 12:01 a.m.
Preferred Contractors Insurance Company
Risk Retention Group, LLC
27 North 27th Street, Suite 1900
Billings, Montana 59101
By:
12),.,:u.~~
AuthorizeRepresentative
END PCIC 24 10 07
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PREFERRED CONTRACTORS INSURANCE COMPANY
RISK RETENTION GROUP. LLC
COMMERCIAL GENERAL LIABILITY POLICY
ADDITIONAL INSURED-OWNERS, LESSEES OR CONTRACTORS (FORM B)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name of Pcl'son(s) OI' 01'ganization(s); Location(s) of covel'cd operations; Additional Insurcd(s) Addl'css:
City of Cupertino, boards and commissions, officers, officials, agents, employees, consultants
and volunteers
(If no entry appears above, the information required to complete this endorsement will be shown in the Declarations as
applicable to this endorsement.)
A. Section II -Who Is An Insured is amended to include as an additional insured the
person(s) or organization(s) shown in the Schedule, but only with respect to
liability for "bodily injury," 11 prope1ty damage" or 11 personal and advertising injury1'
caused, in whole or in part, by:
l. Your acts or omissions; or
2. The acts or omissions of those acting on your behalf
In the performance of your ongoing operations for the additional insured(s) at tl1e
location(s) designated above.
Except as set forth above, all of the terms, conditions and exclusions of this policy apply and remain in effect.
Policy No.: PCA',026·PC2S9'i24
Time: 12:01 a.m.
Preferred Contractors Insurance Company
Risk Retention Group, LLC
27 North 27th Street, Suite 1900
Billings, Montana 59101
By:
11,
END PCIC 24 10 07
STATE
COMPENSATION
INSURANCE
P.O. BOX 8192, PLEASANTON, CA 94588
FUND
ISSUE DATE: 12-01-2017
CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
GROUP:
CONTRACTORS STATE LICENSE BOARD
WORKERS COMPENSATION UNIT
PO BOX 26000
SACRAMENTO CA 95826-0026
NA
POLICY NUMBER: 1721281-2017
CERTIFICATE ID: 3
CERTIFICATE EXPIRES: 12-01-2018
12-01-2017/12-01-2018
LIC PERMIT#: 711435
INCEPTION DATE:12-01-2017
00:NA
Tliis iS to ·-cerfify·· th-at We have Issu9cl a Vii"iid \1\/0ikers' Compens.ition insurance policy in a form approved by the
California Insurance Commissioner to the employer named below for the policy period indicated.
This policy is not subject to cancellation by the Fund except upon 1 o days advance written notice to the employer,
We will also give you 10 days advance notice should this policy be cancelled prior to its normal expiration.
This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded
by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document
with respect to which this certificate of insurance may be issued or to which it may pertain, the insurance
afforded by the poficy described herein is subject to all the terms, exclusions, and conditions, of such policy.
~dq
Authorized Representative President and CEO
UNLESS INDICATED OTHERWISE BY ENDORSEMENT, COVERAGE UNDER THIS POLICY EXCLUDES THE FOLLOWING:
THOSE NAMED IN THE POLICY DECLARATIONS AS AN INDIVIDUAL EMPLOYER OR A HUSBAND AND WIFE EMPLOYER;
EMPLOYEES COVERED ON A COMPREHENSIVE PERSONAL LIABILITY INSURANCE POLICY ALSO AFFORDING
CALIFORNIA WORKERS' COMPENSATION BENEFITS; EMPLOYEES EXCLUDED UNDER CALIFORNIA WORKERS'
COMPENSATION LAW.
EMPLOYER'S LZABZLlTY LIMIT INCLUDING DEFENSE COSTS: $1,000,000 PER OCCURRENCE,
EMPLOYER
ALVERNAZ, MICHAEL A OBA: ALVERNAZ CONSTRUCTION
PO BOX 366
SAN MARTIN CA 95046
{REV.7·2014)
PRINTED 11-17-2017
M0409