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HomeMy WebLinkAboutPR 21135: CONTRACT WITH AAR, INC., DEMOLITION OF 3 DILAPIDATED PROPERTIES INTEROFFICE MEMORANDUM HOUSING ASSISTANCE PROGRAMS To: Ronald "Ron" Burton, Interim City Manager From: Beverly Freeman, Housing and Neighborhood Revitalization Manager Date: October 21, 2019 Re: P.R. No. 21135 Nature of Request: The Housing Division recommends the City Council adopt Proposed Resolution No. 21135 authorizing the City Manager to execute a contract between AAR, Inc. of Houston Texas, and the City for the demolition and site clearance of three (3) properties in the amount of $29,300.00. Staff Analysis/Considerations: Three (3) dilapidated structures were identified as needing to be demolished. The Housing Division received four (4) quotes, Monday, October 15, 2019, as follows: Name Address Length of Time AAR, Inc. *** Houston, Texas $29,300.00 8 working days C & C Works, Inc. Orange, Texas $31,810.00 15 working days Lark Group Warren, Texas $42,100.00 14 working days Inland Environmental, Ltd Beaumont, Texas $42,380.00 16 working days Budget Consideration: Account #001-1053-517.59-00 and Account #105-1431-552.59-00 Project #C44119 will be used to provide funding for these projects. STAFFING/EMPLOYEE EFFECT: Housing Administration staff will be responsible for administering contract. RECOMMENDATION: The Housing Division recommends the City Council adopt Proposed Resolution No. 21135 authorizing the City Manager to execute a contract between AAR, Inc. of Houston Texas, and the City of Port Arthur for the demolition and site clearance of three (3) properties in the total amount of $29,300.00. PR No. 21135 P. R. No. 21135 10/21/19 BF/DF RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND AAR, INC. OF HOUSTON, TEXAS FOR THE DEMOLITION AND SITE CLEARANCE OF THREE (3) DILAPIDATED PROPERTIES IN THE TOTAL AMOUNT OF $29,300.00; FUNDS ARE AVAILABLE IN ACCOUNT NO. 001-1053-517.59-00 AND NO. 105-1431-552.59-00 PROJECT NO. C44119. WHEREAS, three (3) properties in the City were identified as dilapidated and needed to be demolished and cleared; and WHEREAS, on October 15, 2019, the Housing Division received four (4) quotes for the demolition and site clearance of the three (3) dilapidated properties as delineated in the quote tabulation attached hereto as Exhibit "A"; and WHEREAS, AAR, Inc. of Houston, Texas was deemed the lowest and most responsible bidder; and WHEREAS, it is deemed in the best interest of the City to authorize the City Manager to execute a contract between AAR, Inc. and the City of Port Arthur for the demolition and site clearance of three (3) dilapidated properties. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council of the City of Port Arthur hereby authorizes the City Manager to execute a contract with MR, Inc. of Houston, Texas for the demolition and site PR No. 21135 clearance of three (3) dilapidated properties, in substantially the same form, attached hereto as Exhibit "B". Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this day of November, A.D., 2019 at a regular meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR: COUNCILMEMBERS: NOES: THURMAN "BILL" BARTIE, MAYOR ATTEST: SHERRI BELLARD, CITY SECRETARY APPROVED AS TO FORM: / / I Q� 4 44(f 0-f VAL r/r N0, CI I Y A OR Y APPROVED FOR ADMINISTRATION: RONALD "RON" BURTON, INTERIM CITY MANAGER PR No. 21135 11 4-6-1.A.,4-- BEVERLY FREE, N, HOUSING & NEIGHBORHO•D REVITALIZATON MANAGER APPROVED AS TO THE AVAILABILITY OF FUNDS: Com` 10 KANDY DANIEL INTERIM FINANCE DIRECTOR PR 21135 EXHIBIT " PR No. 21135 Quote Tabulation for the Demolition and Site Clearance of three (3) Dilapidated Properties 1109 Herget Avenue, 4020 Procter Street, & 1405 Trinity Avenue Contractor Description Days to Complete Cost ** A.A.R., Inc. Houston, Texas 8 days $29,300.00 C & C Works, Inc. Orange, Texas 15 days $31,810.00 Lark Group Warren, Texas 14 days $42,100.00 Inland Environments, Beaumont, Texas 16 days $42,300.00 Ltd. PR No. 21135 EXHIBIT " PR No. 21135 CONTRACT FOR DEMOLITION & SITE CLEARANCE OF 3 RESIDENTIAL PROPERTIES 1109 HERGET AVENUE,4020 PROCTER STREET, & 1405 TRINITY AVENUE THIS AGREEMENT, made this day of , 2019, by and between the City of Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called "OWNER" or "CITY" and AAR, Inc. hereinafter called "CONTRACTOR". WITNESSETH: That for and in consideration of the payment terms,conditions and agreements set forth herein, OWNER and CONTRACTOR agree as follows: 1. The term of this Contract shall be 8 days from the start date on Notice to Proceed. 2. The Contractor shall demo and clear the site of three residential properties. 3. During the term of this Contract, the Contractor will furnish at his own expense all of the materials, supplies,tools,equipment,labor and other services necessary to connection therewith,excepting those supplies specifically not required of Contractor in the Specifications. 4. The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms in the total amount of$29,300.00 5. The term "Contract Documents" means and includes the following: 1) Agreement 2) General Information 3) Specification 4) Addendum 5) Quote 6) Notice of Award 7) Notice to Proceed 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. 7. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials,this Agreement in(2 copies)each of which shall be deemed an original on the date first written above. PR No. 21135 Signed on the day of 2019 ATTEST CITY OF PORT ARTHUR BY CITY SECRETARY Signed on the day of , 2019 ATTEST AAR, INC. BY CITY SECRETARY PRINT NAME: TITLE: PR No. 21135 Gore :.. CITY OF PORT ARTHUR,TEXAS 14) tilort rthur'�"- ADDENDUM NO. ONE (1) Tr 4. October 8, 2019 Bid For: Demo/Site Clearance of 1109 Herget Ave&4040 Proctor St The following clarifications, amendments, deletions, additions, revision and/or modifications are made a part of the contract documents and change the original documents only in the manner and to the extent hereinafter stated and shall be incorporated in the contract documents. Provisions of this addendum shall take precedence over requirements of the original contract documents and all BIDDERS ARE REQUESTED TO ACKNOWLEDGE SAID PROVISIONS IN THE SUBMISSION OF THEIR BID. Addendum as follows 1. Quotes are due by Monday, October 15, 2019 at 10:00 am. 2. 4020 Procter does not have Asbestos or Lead. 3. Attached is the Spec for 1405 Trinity Avenue. 4. Attached is the Revised Page 1 adding 1405 Trinity address. If you have any questions, please contact the Purchasing Division at 409-983-8160. NOTE: ALL PAGES OF ADDENDA MUST BE SIGNED AND SUBMITTED WITH YOUR BID DOCUMENTS. Clifton illiams, CPPB Purchasing Manager C � �.. /9 - /'`l 020 i Signature of Proposer Date " CITY OF PORT ARTHUR a QUOTE SHEET Cin of - 0.7 > , �I)�� (Specifications are attached) orf rfhu��r 'r_ Trxus Date of Request: October 1, 2019 Department Requesting Quote: Housing Bid Number: P19-109 Services Needed: Demo/Site Clearance of 1109 Herget Ave &4040 Proctor St Quote Due Date & Time: Monday, October 15, 2019 by 10:00 A.M. Pre-Bid: Thursday, October 2, 2019 at 2:00 P.M. starting at 1109 Herget Delivery: Quotes are to be faxed to (409) 983-8291, E-mailed to Clifton.williams@portarthurtx.gov Delivered to the Purchasing Div., 2nd floor, City Hall. Questions, Please contact: Clifton Williams, Purchasing Manager. Clifton.wi l l i ams(2Uportarthurtx.gov DAYS TO ITEM # DESCRIPTION COMPLETE COST 1109 Herget Avenue �( 1 With (Asbestos/Lead) `T $ 13, 7 7D. 2 4020 Procter Street a $ f, gas. --- 1 1 3 1405 Trinity Avenue o7 $ B, L,25. ( ;2_.a..., Company NameC-1 Signature (-2 a 1ZC-N1-1221Sua.( 711-- ggL(d- („ Soo Printed Name Phone h91.yo 514,WI '713- Lab- Li.Z 3L1 Address Fax !70 usi oW,, 77o 4 f r,.nd ISL aari nc..nel City,State,Zip E-mail 10- /y-J /q' Clifton\'illiams,CPPB,Purchasing Manager Date / SPECIFICATIONS FOR DEMO&SITE WORK 1109 Hemet(ASBESTOS/LEAD) Demolish/Remove House, Garage, and Carport Remove all concrete porches/steps, sidewalks and concrete slabs. Remove all concrete driveway strips. Remove 3'x 3' A/C concrete slab on east side of the rear of the home Remove cement blocks Remove concrete steps on the rear of the home. Remove all trees & shrubbery surrounding the house Cut back big tree on the left side of the house and shrubbery on the left side of the house Remove all fences and fence poles on the property except the fence on the left back yard connected to neighboring fence. Remove"ALL"trees and underbrush that is around the perimeter of the house. LEVEL AND CLEAR LOT FROM THE ALLEY TO THE STREET Remove"All"debris from property(trees, T clothes lines, concrete steps, loose cement,tires, brick, trash, and etc.) PROPERTY MUST BE INSPECTED BY HOUSING BEFORE THE DIRT IS SPREAD Property will need at least four(4) loads of 60/40 dirt back tilled and spread 4020 Procter Street(ASBESTOS ONLY) Demolish/Remove House,detached garage all porches/steps concrete pillars,and sidewalks. Remove and grind all trees in the front yard and leave the two big trees in the back yard. Remove"ALL"trees and underbrush that is around the perimeter of the house Remove fence and shrubbery on the right side of house and two big trees in the front close to the street and grind down. Remove all concrete sidewalks,driveways,and rocks. Remove the fence gate on the left side of house. Level and clear lot from the alley to the street. Remove"All"debris from property (trees,T clothes lines,concrete steps,concrete patio,loose cement,rocks,tires,brick and etc. PROPERTY MUST BE INSPECTED BY HOUSING BEFORE THE DIRT IS SPREAD" I. TITLE The provisions embraced within these sections and subsections shall constitute; b e known as; and will be referred to herein and in any relevant AGREEMENT and CONTRACT as "DEMOLITION SPECIFICATIONS". II. SCOPE The scope and purpose of these specifications is to establish certain regulations, general requirements, and particular requirements necessary for the demolition, removal and cleanup of the unsafe and/or unsanitary structure(s)as required by the Code Enforcement Department of the City of Port Arthur. III. CONTRACTOR BIDS Contracts for the demolition of structures will be awarded in accordance with the terms and conditions. The completion of the demolition package will be of vital importance to the City. The number of calendar days given on the proposal form will be used to establish the completion date as used in the Contract. In case the work is not completed within the time specified in the Contract, there shall be liquidated damages of one hundred fifty dollars ($150)per day for each day exceeding the completion date. IV. PERMITS The Contractor/Successful Bidder must obtain from the City of Port Arthur and all other governmental entities, at his own expense, all necessary general and special permits and pay any and all fees for said permits and any other fees, public or private. All Contractors are required to have a Landfill Permit, which includes a minimum escrow account of five hundred dollars ($500). If you opt not to set up an escrow account, you must pay cash or by cashier's check as you dispose. V. GENERAL CONDITIONS AND REQUIREMENTS The following list of conditions and requirements are to be understood as being a general guide in the demolition of structures. It must be noted, however, that there are special requirements listed below in Section VII of these specifications, which are in addition to these general requirements for demolition, and that it is the responsibility of the Contractor/Successful Bidder to comply with all particular requirements. A. It is understood and agreed that the Contractor/Successful Bidder will function and operate as an independent contractor. Any liability incurred by the Contractor/Successful Bidder will accrue only to that party as an independent contractor and not to the City of Port Arthur. B. No work under a City DEMOLITION CONTRACT shall be subcontracted by the Contractor/Successful Bidder without prior, written approval of the Code Enforcement Department. No subcontractor will be approved unless that subcontractor meets the same insurance requirements specified for and required of the Contractor. C. The demolition work specified herein shall be performed in a safe, satisfactory condition, starting with the roof and working down, with the safety and welfare of all people and property being of the highest priority. D. All materials, debris, and rubble from the demolition of the structure(s) specified herein will become the property of the Contractor/Successful Bidder. Salvage can only begin immediately prior to the beginning of demolition. E. The Contractor/Successful Bidder will be held responsible for repair of broken or damaged water, gas, or any other type of lines,which occur during the course of the demolition work. The Contractor shall repair or replace, if necessary, to the City's satisfaction, any damage to the work site, the adjacent areas, the access areas to the work site and to any elements within these areas that may have suffered damage as a result of the Contractor's or any of the subcontractor's operations. The Contractor shall leave these areas in a satisfactory condition. F. The Contractor/Successful Bidder shall haul off all debris and unsalvageable materials; and no debris or rubble which may pose a threat to public safety will be left on the site overnight. No such debris or material will be placed on a sidewalk or public right-of-way so that it poses a danger to any person. G. All demolition work must be carried out to the satisfaction of the City's Inspections Official. H. The City (without prejudice to any other right or remedy it may have) has the right to terminate the contract in the event of any default by the Contractor after giving the Contractor fifteen (15) days written notice. Such notice of termination shall be subsequent to default by the Contractor and after receiving written notice from the City certifying cause for such action. In addition to other events of default or grounds for termination identified in the contract, it shall be considered default by the Contractor whenever he/she shall: 1. Declare bankruptcy, become insolvent, or assign his/her assets for the benefit of his/her creditors. 2. Violate or disregard provisions of the Contract or instruction from the Owner. 3. Fail to prosecute the work according to the agreed Schedule of Completion, including amendments and/or modifications thereof. 4. Fail to provide a qualified superintendent, competent workmen or subcontractors, or proper materials, or failure to make prompt payment therefore. If the Contract is terminated as provided above or as provided in the Contract, the City will engage another contractor to complete the work. Payment for the completion of such work will come from funds obligated by the City under its contract with the original Contractor. J. METHOD OF PAYMENT Payment shall be made as provided in Section II of the contract. K. PAYMENT WITHHELD Any part or the whole of any payment may be withheld by the City to the extent deemed necessary and reasonable should evidence of the following be discovered: 1. Defective work not corrected. 2. Claims filed against the Contractor. 3. Reasonable evidence indicating the probability of filing claims against the Contractor. 4. Failure of the Contractor to make proper payments to subcontractors or for materials or for labor. 5. The contract cannot be completed for the then unpaid balance. 6. Unsatisfactory progress of the work by the Contractor. When the above grounds are removed, the amount withheld because of them shall be paid to the Contractor subject to and within the other terms of this contract. L. CONTRACT PAYMENT RETAINAGE Contract payment retainage of shall be as provided in the Contract. VI. PARTICULAR WORK REQUIREMENTS A. Before any building or structure is demolished, its utilities shall be safely disconnected. The Contractor shall serve notice to all suppliers of utilities to the building to be demolished and have them disconnect the services and remove all meters and equipment belonging to them. Forty-eight (48) hours written notice must be given the City for termination of their utilities. All piping and wiring shall be properly terminated. Any costs incurred in the termination of utilities and services shall be borne by the Contractor. B. Demolition and clean-up includes, but is not limited to, the removal of all lumber, doors, windows, wire, sheet metal, appliances, furniture, loose rock, brick, mortar, concrete, and the cleaning and removal of all rubbish, trash or other debris that would inhibit or prevent the mechanical mowing of said lot and premises. C. Fill, grade and level with clean fill dirt all depressions in the earth which exist beneath demolished building(s) or structure(s) and all ruts or other depressions created during the demolition work when the average depth of such depressions exceeds three (3) inches. D. Any trees and shrubs designated by the Community Services Department will be cut down and removed from the premises. E. The grass at the demolition site shall be mowed to a height not exceeding two (2) inches. F. All sewer lines exposed through demolition work must be cut off within two (2) inches of the surface to the ground or concrete slab and must be plugged with concrete in such a manner as to prevent ground water incursion into the City's sanitary sewer system. G. REMOVAL OF STEPS AND CONCRETE PORCHES UNLESS OTHERWISE NOTED. H. REMOVE ALL CONCRETE EXCEPT CITY SIDEWALKS!!! I. HAZARDOUS MATERIALS Materials defined by the Environmental Protection Agency to be hazardous to the environment or persons, shall be disposed of in accordance with all local, state and federal government regulations and governing laws. This shall be the responsibility of the Contractor. The Contractor shall furnish written proof of such disposal. J. PERFORMANCE AND PAYMENT BOND REQUIREMENTS: If the contract exceeds fifty thousand dollars ($50,000) a payment bond is required. If the contract exceeds one hundred thousand dollars ($100,000) a performance bond is required. Performance and Payment Bonds shall be furnished on prescribed forms in the amount of one hundred percent (100%) of the contract price with corporate surety duly authorized to do business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a certified and effective date copy of their Power of Attorney K. LIQUIDATED DAMAGES: Contractor will have to pay liquated damages of$150 per day for each day exceeding the number of days on the contract. GENERAL INFORMATION: Proposers are cautioned to read the information contained in this RFP carefully and to submit a complete response to all requirements and questions as directed. TERMINOLOGY: "Bid" vs. "Proposal"--For the purpose of this RFP, the terms "Bid" and Proposal" shall be equivalent. AWARD: The City of Port Arthur will review all proposals for responsiveness and compliance with these specifications. The City reserves the right to award on the basis of the Lowest and Best Offer in accordance with the laws of Texas,to waive any formality or irregularity, and/or to reject any or all proposals. ALTERING BIDS: Bids cannot be altered or amended after submission deadline. Any interlineations, alteration, or erasure made before opening time must be initialed by the signer of the bid, guaranteeing authenticity. WITHDRAWAL OF PROPOSAL: The proposer may withdraw its proposal by submitting written request, over the signature of an authorized individual, to the Purchasing Division any time prior to the submission deadline. The proposer may thereafter submit a new proposal prior to the deadline. Modification or withdrawal of the proposal in any manner, oral or written, will not be considered if submitted after the deadline. CONFLICT OF INTEREST: No public official shall have interest in this contract, in accordance with Vernon's Texas Code Annotated, Local Government Code Title 5, Subtitle C, Chapter 171. ETHICS: The bidder shall not offer or accept gifts or anything of value nor enter into any business arrangement with any employee, official or agent of the City of Port Arthur. MINIMUM STANDARDS FOR RESPONSIBLE PROSPECTIVE BIDDERS: A prospective bidder must affirmatively demonstrate bidder's responsibility. A prospective bidder must meet the following requirements: 1. Be able to comply with the required or proposed delivery schedule. 2. Have a satisfactory record of performance. 3. Have a satisfactory record of integrity and ethics. 4. Be otherwise qualified and eligible to receive an award. 5. Be engaged in a full time business and can assume liabilities for any performance or warranty service required. 6. The City Council shall not award a contract to a company that is in arrears in its obligations to the City. 7. No payments shall be made to any person of public monies under any contract by the City with such person until such person has paid all obligations and debts owed to the City, or has made satisfactory arrangements to pay the same. ADDENDA: Any interpretations, corrections or changes to the RFP will be made by addenda no later than 48 hours prior to the date and time fixed for submission of proposals. Sole issuing authority of addenda shall be vested in the City of Port Arthur Purchasing Manager. The City assumes no responsibility for the proposer's failure to obtain and/or properly submit any addendum. Failure to acknowledge and submit any addendum may be cause for the proposal to be rejected. It is the vendor's responsibility to check for any addendums that might have been issued before bid closing date and time. All addenda will be numbered consecutively, beginning with 1. PORT ARTHUR PRINCIPAL PLACE OF BUSINESS: Any bona fide business that claims the City of Port Arthur as its principal place of business must have an official business address (office location and office personnel) in Port Arthur, the principal storage place or facility for the equipment shall be in Port Arthur and/or the place of domicile for the principal business owner(s) shall be in Port Arthur or such other definition or interpretation as is provided by state law. Contractors outside the City of Port Arthur are allowed to bid. PRICES: The bidder should show in the proposal both the unit price and total amount, where required, of each item listed. In the event of error or discrepancy in the mathematics,the unit price shall prevail. PURCHASE ORDER: A purchase order(s) shall be generated by the City of Port Arthur to the successful bidder. The purchase order number must appear on all itemized invoices. INVOICES: All invoices shall be mailed directly to the City of Port Arthur, Attn.: Housing,P.O. Box 1089, Port Arthur, Texas 77641. PAYMENT: Payment will be made upon receipt of the original invoice and the acceptance of the goods or services by the City of Port Arthur, in accordance with the State of Texas Prompt Payment Act, Article 601 f V.T.C.S. The City's standard payment terms are net 30, i.e. payment is due 30 days from the date of the invoice. SALES TAX: The City of Port Arthur is exempt by law from payment of Texas Sales Tax and Federal Excise Tax;therefore the proposal shall not include Sales Tax. VENUE: This agreement will be governed and construed according to the laws of the State of Texas. This agreement is performable in Port Arthur, Texas, Jefferson County. The City of Port Arthur may request and rely on advice, decisions, and opinions of the Attorney General of Texas and the City Attorney concerning any portion of these requirements. COMPLIANCE WITH LAWS: The Contractor shall comply with all applicable laws, ordinances, rules, orders, regulations and codes of the federal, state and local governments relating to performance of work herein. INTEREST OF MEMBERS OF CITY: No member of the governing body of the City, and no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Contract; and,the Contractor shall take appropriate steps to assure compliance. DELINQUENT PAYMENTS DUE CITY: The City of Port Arthur Code of Ordinances prohibits the City from granting any license, privilege or paying money to any-one owing delinquent taxes, paving assessments or any money to the City until such debts are paid or until satisfactory arrangements for payment has been made. Bidders must complete and sign the AFFIDAVIT included as part of this RFP. QUANTITIES: Quantities shown are estimated, based on projected use. It is specifically understood and agreed that these quantities are approximate and any additional quantities will be paid for at the quoted price. It is further understood that the contractor shall not have any claim against the City of Port Arthur for quantities less than the estimated amount. SHIPPING INFORMATION: All bids are to be F.O.B., City of Port Arthur, Port Arthur,TX 77640 INCORPORATION OF PROVISIONS REQUIRED BY LAW: Each provision and clause required by law to be inserted into the Contract shall be deemed to be enacted herein and the Contract shall be read and enforced as though each were included herein. If, through mistake or otherwise, any such provision is not inserted or is not correctly inserted the Contract shall be amended to make such insertion on application by either party. CONTRACTOR'S OBLIGATIONS: The Contractor shall and will, in good workmanlike manner, perform all work and furnish all supplies and materials, machinery, equipment, facilities and means, except as herein otherwise expressly specified, necessary or proper to perform and complete all the work required by this Contract, in accordance with the provisions of this Contract and said specifications. The apparent silence of these specifications as to any detail or to the apparent omission from it of a detailed description concerning any point shall be regarded as meaning that only the best commercial practices are to prevail. While the purpose of the specifications is to indicate minimum requirements in the way of capability, performance, construction, and other details, its use is not intended to deprive the City of Port Arthur the option of selecting goods which may be considered more suitable for the purpose involved. Under the Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. TERMINATION FOR CAUSE: If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his obligations under this contract, or if the Contractor shall violate any of the covenants, agreements or stipulations of this contract, the City shall thereupon have the right to terminate this contract by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the contract by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined. TERMINATION FOR CONVENIENCE: The City may terminate this contract at any time giving at least thirty (30) days notice in writing to the Contractor. If the Contract is terminated by the City as provided herein, the Contractor will be paid for the service that it has performed up to the termination date. If this contract is terminated due to fault of the Contractor, the previous paragraph hereof relative to termination shall apply. RELEASES AND RECEIPTS: The City of Port Arthur before making payments may require the Contractor to furnish releases or receipts for any or all persons performing work and supplying material or service to the Contractor, or any sub-contractors for work under this contract, if this is deemed necessary to protect its interests. CARE OF WORK: The Contractor shall be responsible for all damages to person or property that occurs as a result of his fault or negligence in connection with the work performed until completion and final acceptance by the City. SUB-CONTRACTS: The Contractor shall not execute an agreement with any sub-contractor or permit any sub-contractor to perform any work included in this Contract until he has received from the City of Port Arthur written approval of such agreement. INSURANCE: All insurance must be written by an insurer licensed to conduct business in the State of Texas, unless otherwise permitted by Owner. The Contract shall, at his own expense, purchase, maintain and keep in force insurance that will protect against injury and/or damages which may arise out of or result from operations under this contract, whether the operations be by himself or by any subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable, of the following types and limits 1. Standard Worker's Compensation Insurance: 2. Commercial General Liability occurrence type insurance City of Port Arthur, its officers, agents, and employees must be named as an additional insured): a. Bodily injury $1,000,000 single limit per occurrence or$1,000,000 each person/$1,000,000 per occurrence; and, b. Property Damage$1,000,000 per occurrence regardless of contract amount; and, c. Professional Liability: $1,000,000. Contractor shall cause Contractor's insurance company or insurance agent to fill in all information required (including names of insurance agency, contractor and insurance companies, and policy numbers, effective dates and expiration dates) and to date and sign and do all other things necessary to complete and make into valid certificates of insurance and pertaining to the above listed items, and before commencing any of the work and within the time otherwise specified, Contractor shall file completed certificates of insurance with the Owner. None of the provisions in said certificate of insurance should be altered or modified in any respect except as herein expressly authorized. Said CERTIFICATE OF INSURANCE Form should contain a provision that coverage afforded under the policies will not be altered, modified or canceled unless at least fifteen (15)days prior written notice has been given to the City of Port Arthur. Contractor shall also file with the City of Port Arthur valid CERTIFICATE OF INSURANCE on like form from or for all Subcontractors and showing the Subcontractor (s) as the Insured. Said completed CERTIFICATE OF INSURANCE Form (s) shall in any event be filed with the City of Port Arthur not more than ten(10) days after execution of this Contract. NOTICE TO PROCEED: Notice to Proceed shall be issued within ten (10) days of the execution of the Contract by OWNER. Should there be any reasons why Notice to Proceed cannot be issued within such period,the time may be extended by mutual agreement between OWNER and CONTRACTOR. PERFORMANCE AND PAYMENT BOND REQUIREMENTS: Per Government Code Chapter 2253. Bonds. If the contract exceeds fifty thousand dollars ($50,000) a payment bond is required. If the contract exceeds one hundred thousand dollars ($100,000) a performance bond is required. Performance and Payment Bonds shall be furnished on prescribed forms in the amount of one hundred percent (100%) of the contract price with corporate surety duly authorized to do business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a certified and effective date copy of their Power of Attorney. WAGES & SALARIES: Attention is particularly called to the requirement of not paying less than the prevailing Davis Bacon Related Acts (DBRA) wage rates specified in the Contract Documents. These rates are minimums to be paid during the life of the contract. It is therefore the responsibility of the Bidder to inform themselves as to local labor conditions. Attention is called to the requirement that employees and applicants for employment are not discriminated against because of race, color, religion, sex, age or national origin. SECTION 3 CLAUSE: 1. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons,particularly persons who are recipients of HUD assistance for housing. 2. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract,the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. 3. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s)taking applications for each of the positions; and the anticipated date the work shall begin. 4. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. 5. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. 6.Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. 7. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b)requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). MINORITY BUSINESSES The contractor is acknowledging that if a subcontractor is required the following will be done to make a good faith effort to hire a minority business (HUB or DBE) using these six steps. 1. Solicitation Lists. Must place small and minority businesses and women's business enterprises on solicitation lists. 2 C.F.R. § 200.321(b)(1). 2. Solicitations. Must assure that it solicits small and minority businesses and women's business enterprises whenever they are potential sources. 2 C.F.R. § 200.321(b)(2). 3. Dividing Requirements. Must divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women's business enterprises. 2 C.F.R. § 200.321(b)(3). 4. Delivery Schedules. Must establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women's business enterprises. 2 C.F.R. § 200.321(b)(4). 5. Obtaining Assistance. Must use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce. 2 C.F.R. § 200.321(b)(5).