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HomeMy WebLinkAboutPR 18951: TIME AND MATERIAL CONTRACT WITH ALLCO, INC. P.R. 18951 04/07/15 sp PUBLIC WORKS DEPARTMENT COUNCIL ACTION MEMO TO: Brian McDougal, City Manager FROM: Sue Polka, P. E., Public Works Director/City Engineer DATE: April 7, 2015 SUBJECT: P.R. 18951 COMMENTS RECOMMENDATION: It is recommended that the City Council approve Proposed Resolution No. 18951 that would authorize the City Manager to enter into a contract with ALLCO, Inc. of Beaumont, Texas for emergency repairs to the levee at DeQueen Boulevard and Lakeshore Drive, including abandonment of a 36" sanitary sewer main, repairs to adjacent storm sewers, embankment replacement and appurtenant work. STAFF ANALYSIS: Staff has been working with Drainage District 7 since October 2014 to determine the cause of a void in the levee at DeQueen Boulevard and Lakeshore Drive. The cause was traced to an abandoned 36" sanitary sewer main that was cross-connected to a storm sewer at 3rd Avenue near the seawall. Due to time constraints based on the impending storm season and the severity of the void, Drainage District 7 is requesting that the repairs take place prior to June 1st. Staff has received an estimate of approximately $475,000 from ALLCO, Inc. to complete the repairs. Staff feels that this is a reasonable estimate and is proposing that the work be completed under a time and materials contract. The completed contract will be provided at or before the Council meeting. BACKGROUND: By Resolution 15-048 dated February 9, 2015, the City Council awarded a contract to Bob Shaw Engineers to complete design and construction phase engineering services for the repair of the levee and adjacent sanitary and storm sewers in the amount of $73,000. To date, Bob Shaw Engineers has completed design drawings and specifications for the work required to complete the repairs. In the past month, ALLCO, Inc. completed emergency repairs at DeQueen Boulevard and 4th Street where a large void had occurred under the intersection due to a leak in the 6-foot by 6-foot storm drain that runs under DeQueen Boulevard to the Drainage District 7 pump station at the seawall. The work was completed in a short time frame for the cost of $16,500. ALLCO has reviewed the plans for the levee repairs and provided staff with a preliminary estimate of $475,000. Due to the short time constraint, staff recommends hiring ALLCO on a time and materials basis to complete the work. BUDGETARY/FISCAL EFFECT: Staff recommends utilizing a 50/50 utilization of funds in Sewer Reconstruction Account No. 428-1625-532.83-00 and Drainage Capital Improvement Account No. 301-1601-591.84-00, Project No. GO-805. P.R. 18951 04/07/15 sp RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A TIME AND MATERIALS CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND ALLCO, INC., OF BEAUMONT, TEXAS FOR THE EMERGENCY LEVEE REPAIRS AT DEQUEEN BOULEVARD AND LAKESHORE DRIVE IN THE AMOUNT NOT TO EXCEED $475,000 PLUS CONTINGENCY, FUNDS ARE AVAILABLE IN SEWER RECONSTRUCTION ACCOUNT NO. 428-1625-532.83-00, PROJECT NO. 428000 AND DRAINAGE CAPITAL IMPROVEMENT ACCOUNT NO. 301-1601-591.84-00, PROJECT NO. GO-805. WHEREAS, on February 9, 2015 per Resolution No. 15-048, the City Council awarded a contract for the design and construction phase services for emergency work at 3rd Avenue and seawall storm sewer and adjacent 36" sanitary sewer to Bob Shaw Engineers, in the amount of $73,000.00; and, WHEREAS, Bob Shaw Engineers has completed plans and specifications for said emergency repairs; and, WHEREAS, ALLCO, Inc. has recently constructed emergency repairs in the area at DeQueen Boulevard and 4th Street in a timely and cost effective manner and provided a cost estimate of$475,000 for the emergency repairs at the levee; and WHEREAS, this emergency expenditure is authorized pursuant to 252.022, A(2) and A(3) of the Texas Local Government Code; and WHEREAS, the Public Works Director/City Engineer and Bob Shaw Engineers recommend proceeding with a time and materials contract with ALLCO, Inc. to complete the emergency repairs at the levee; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: P.R. 18951 04/07/15 sp THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to execute, on behalf of the City of Port Arthur, the time and materials contract between the City of Port Arthur and ALLCO, Inc. in substantially the same form as Exhibit "A", to construct the repairs at the levee; and THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ,ADOPTED,AND APPROVED this the day of , A.D. 2015 at a meeting of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: Noes: Mayor P.R. 18951 04/07/15 sp ATTEST: APPROVED S TO FORM: Sherri Bellard Valecia Tizeno City Secretary City Attorney APPROVED FOR ADMINISTRATION: Brian McDougal Susan J. Polka, P. E. City Manager Public Works Director/City Engineer Shawna Tubbs, CPPO Dr. Jimmie Johnson Purchasing Manager Director of Utilities APPROVED AS TO AVAILABILITY OF FUNDS: DAL 1:),L) Deborah Echols Director of Finance P.R. 18951 04/07/15 sp Exhibit "A" P. R. 18952 CONSTRUCTION CONTRACT AGREEMENT [Non-Federally Funded Projects] THIS AGREEMENT, entered into as of this day of , 2015, by and between the CITY OF PORT ARTHUR, Port Arthur, Texas (hereinafter called the "CITY") acting herein by its CITY MANAGER, hereunto duly authorized, and ALLCO, Inc., hereinafter called "CONTRACTOR". WITNESSETH: That for and in consideration of the payments, terms, conditions and agreements set forth herein, OWNER and CONTRACTOR agree as follows: 1. The CONTRACTOR will commence and complete the emergency repairs to the levee at DeQueen Boulevard and Lakeshore Drive, including abandonment of a 36" sanitary sewer main, repairs to adjacent storm sewers, embankment replacement and appurtenant work, as described in the design drawings and specifications prepared by Bob Shaw Engineers, attached hereto. 2. The CONTRACTOR will furnish at his own expense all of the materials, supplies, tools, equipment, labor and other services necessary for the construction and completion of the Project described herein. 3. The CONTRACTOR will commence the work required by the Contract Documents on a date to be specified in the Notice to Proceed and will complete the portion of the work that includes the levee at DeQueen Boulevard by June 1, 2015 and all work within 60 consecutive calendar days as specified in the Notice to Proceed, including, but not limited to, all Saturdays, Sundays and Federal, State, and City holidays unless the period for completion is extended otherwise by the Contract Documents. 4. The CONTRACTOR agrees to perform all of the Work described in the Contract Documents and comply with the terms therein for the not-to-exceed amount of $475,000.00 plus contingency, or as shown in the Bid Schedule. 5. The term "CONTRACT DOCUMENTS" means and includes the following: (A) Agreement (B) Proposal (C) Owner's Contract Requirements (D) General Conditions (E) Payment Bond (F) Performance Bond (G) Notice of Award (H) Notice to Proceed (I) Drawings prepared by Bob Shaw Engineers numbered 1 through 13 dated March 2015 . (J) Specifications prepared by Bob Shaw Engineers dated March 2015 . 6. The OWNER will pay to the CONTRACTOR in the manner and at such times as set forth in the General Conditions such amounts as required by the Contract Documents. 7. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. IN WITNESS WHEREOF, the Parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in two (2) copies, each of which shall be deemed an original on the date first above written. APPROVED AS TO FORM: OWNER: CITY OF PORT ARTHUR CITY ATTORNEY BRIAN MCDOUGAL, CITY ATTORNEY ATTEST: CITY SECRETARY CONTRACTOR: ALLCO, INC. BY: NAME: TITLE: [CORPORATE SEAL] ATTEST: NAME: AlICODESIGN BUILD CONSTRUCTION MANAGEMENT GENERAL CONTRACTOR P. 0. Box 3684, Beaumont, Texas 77704 Phone: 409-860-4459 Fax: 409-860-3857 Email: allco@allco.com April 10, 2015 Attn: Mr. Brian McDougal, City Manager City of Port Arthur P.O. Box 1089 Port Arthur,Texas 77640 Re: DeQueen and Vicinity Emergency Repair Dear Mr. McDougal: Please find attached, rate schedules for labor and equipment, to be used on the above referenced project. This project will be performed on a "time and material" basis, due to numerous variables which could affect final cost. Invoices for materials, subcontractors and other miscellaneous items, shall be provided and attached to all billings to the city. All labor, equipment, material, subcontracts and other items will be marked up 15% for overhead and profit. On a daily basis, the project superintendent will complete a Field Work Order, which will be signed by your authorized representative at the end of the day. A copy of the Field Work Order is attached to this letter. These completed and signed forms shall accompany all billings to the city. As per my email of March 31, 2015 our estimated budget is $475,000.00 for the emergency repair. I understand that the city would like to add a 10% contingency ($47,500.00) to this amount, for a budgetary estimate of$522,500.00. I also have been told that the city will require a performance and payment bond for this work. The cost of the bonds will be approximately $10,000.00. Bond costs are calculated on the contract value and are roughly 2% of said value. This item is not included in my original estimated budget. Once a contract is received, we will send it to our bonding company for the bonds. April 10, 2015 Mr. Brian McDougal, City Manager Page 2 It is understood that time is of the essence and that the section of the project located at the intersection of DeQueen and Lakeshore Drive is the most critical, and one of the key objectives is to complete the repairs of this section by June 1, 2015 (start of the hurricane season). Allco will endeavor to complete this portion of the project first, in a timely and diligent manner, in an effort to meet this objective. While we cannot guarantee completion of this portion by June 1, we will work hard to meet that goal. If you have any questions or need further information, please feel free to contact me. Sincerely, ALLCO LLC Keith Burrell LABOR CLASSIFICATIONS - RATES Hourly Rate Classifications includes PRT Superintendent $69.75 Foreman $46.50 Operator $38.75 Journeyman $34.88 Pipe layer $31.00 Helper $29.45 Laborer $27.90 Truck driver $35.65 Carpenter $34.88 Cement Mason $38.75 Notes: 1) Rates include all applicable payroll taxes and insurance. 2) Normal work days are 8 hours. Any hours over this amount will be billed at time and a half. EQUIPMENT - RATES Daily Weekly Monthly Equipment Rate Rate Rate Backhoe - Case, Komatsu, Cat(All) $397.46 $1,192.38 $3,577.15 Trackhoe - Komatsu PC60 (or equal) $356.86 $1,070.58 $3,211.75 Trackhoe - Komatsu PC128 (or equal) $928.32 $2,784.97 $8,354.90 Trackhoe - Komatsu PC220 (or equal) $1,442.91 $4,328.73 $12,986.20 Trackhoe -Komatsu PC300 (or equal) $1,733.39 $5,200.18 $15,600.55 Trackhoe - Komatsu PC400 (or equal) $2,316.46 $6,949.37 $20,848.10 Skid Steer Loader- Bobcat 250 (or equal) $393.11 $1,179.33 $3,538.00 Loader- Komatsu WA180 (or equal) $381.03 $1,143.08 $3,429.25 Loader- Komatsu WA250 (or equal) $609.48 $1,828.45 $5,485.35 Dozer - Komatsu D37 (or equal) $665.23 $1,995.68 $5,987.05 Motor Grader $950.39 $2,851.18 $8,553.55 Roller- Steel Wheel $638.81 $1,916.42 $5,749.25 Roller - Sheeps Foot $658.94 $1,976.83 $5,930.50 Roller -Asphalt Pneumatic $677.63 $2,032.90 $6,098.70 Pick-up Truck - 1/2 ton $119.22 $357.67 $1,073.00 Pick-up Truck - 314 ton $139.04 $417.12 $1,251.35 Truck - 1 ton $162.56 $487.68 $1,463.05 Crash Attenuator Truck $284.68 $854.05 $2,562.15 Water Truck $774.62 $2,323.87 $6,971.60 Soil Mixer- CMI RS-425 (or equal) $1,972.97 $5,918.90 $17,756.70 Soil Mixer -Cat RM-250 (or equal) $1,814.11 $5,442.33 $16,327.00 Welding Machine $241.67 $725.00 $2,175.00 Air Compressor- 185 CFM $107.14 $321.42 $964.25 Asphalt Paver $3,646.75 $10,940.25 $32,820.75 Arrow Board Sign $168.36 $505.08 $1,515.25 EQUIPMENT - RATES Daily Weekly Monthly Equipment Rate Rate Rate Truck -Tractor $499.12 $1,497.37 $4,492.10 Dump Truck $870.00 $2,610.00 $7,830.00 Vibratory Plate Compactor $208.80 $626.40 $1,879.20 Self Priming Trash Pump $102.14 $306.43 $919.30 Chain Saw $38.83 $116.48 $349.45 Cut-off Saw $38.83 $116.48 $349.45 Self Propelled Paving Breaker $536.66 $1,609.98 $4,829.95 Concrete Saw $190.76 $572.27 $1,716.80 Small Generator $36.25 $108.75 $326.25 Rotary Hammer Drill $38.83 $116.48 $349.45 Notes: 1) Rates include fuel and maintenance. 2) Any equipment required and not on the above list, shall be billed at the 2014 Blue Book Rental Rates plus applicable fuel and maintenance. 3) There is a 2 hour minimum charge. FIELD WORK ORDER ALLCO DATE JOB NO. SRI SERIAL CONTRACTORS ENGINEERS AO,BOX 3884 QQ j BEAUMONT,TEXAS 77704 F Q J J (409)850-4469 �� ,CLIENT QTY, DESCAtPT10Ml +�^ ; PRosECT Baa` i . D. x CLIENT REFERENCE T g ' ITOt ^'�+— HOURS WORKED PAYROLL RATE INCL.t� NAME CLASS 8T ha HAS BURDENS AMOUNT { T SUPERVISION — 6a" 1 ii-;" i f f.. ' I9 }''s`iff! THE WORK DESCRIBED HEREIN I8 TO BE Ir Nu et tFl .:woaY : �'TOTA $ t• i,,. PERFORMED ON THE BASIS OF: (CHECK)(G J ROY wit!!o1 M AGC• '" t ° © UNIT PRICES ntak 10 A COSMIC!. •' (IRM R;T`( kr. $ it iNF p*OVI/tON3 Or D IxDI • Ij ri 96 $ 1.,.': Q TIME AND MATERIAL !HAT COMM!,Ir AM .yy!,,;. yy1�,,'. . .._._i i:,;}; © LUMP SUM N IIA.14Ai• ; -; kti$ fQUtPME�tT;. I ATE •I1Ps,' " :. EQUIPMENT • • .• RATE' . `PAYMENT BA8IB ' PICK•UP TRUCK OR OTHER VEHICLE UNIT PRICE TOTAL Q $ LABOR $ TOOL r___�� ALLOWANCE % .. MATERIAL 4 . BAR ' EQUIPMENT • MANNED. I EQUIPMENT FUEL USE TAX `TOTAL : FUEL USE TAX 'TOTAL SUB .1.6, 1 • CTONTftAOT ' SUB TOTAL g; FEE TIME AND MATERIAL TOTAL 0 $ LUSUM. MP. • SALES TAX TOTALTOTAL TOTAL �3 $ ALLCO CLIENT BY BY DATE Contract Requirements BONDS The following bonds, each in the amount of one hundred percent (100%) of the Contract price, will be required in accordance with State law as follows: (1) PAYMENT BOND for any contract in excess of Fifty Thousand Dollars ($50,000.00); and, (2) PERFORMANCE BOND for any contract in excess of One Hundred Thousand Dollars ($100,000.00). NOTICE TO PROCEED A Notice to Proceed shall be issued within ten (10) days of the execution of the Contract by OWNER. Should there be any reason(s) why Notice to Proceed cannot be issued within such period, the time may be extended by mutual agreement between OWNER and CONTRACTOR. If a Notice to Proceed has not been issued within the ten (10) day period or a period mutually agreed upon, CONTRACTOR may terminate the Contract without liability on the part of either party. INSURANCE All insurance must be written by an insurer licensed to conduct business in the State of Texas, unless otherwise permitted by OWNER. The CONTRACTOR 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 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 (No insurance policy or Certificate of Insurance required below shall contain any aggregate policy year limit unless a specific dollar amount[or specific formula for determining a specific dollar amount] aggregate policy year limit is expressly provided in the specification below which covers the particular insurance policy or Certificate of Insurance). Standard Worker's Compensation Insurance (with waiver of subrogation in favor of the City of Port Arthur, its officers, Agents & Employees). (City and Contractor and all persons providing services shall comply with the workers compensation insurance requirements of Section 406.096 of the Texas Labor Code and 28 TAC Section 110.110, a copy of which is attached hereto and is hereby incorporated by reference.) Commercial General Liability occurrence type insurance. No. "XCU" RESTRICTIONS SHALL BE APPLICABLE. Products/completed operations coverage must be included, and City of Port Arthur, its Officers, Agents, and Employees must be named as an additional Insured. a. Bodily Injury $500,000 single limit per occurrence, or $500,000 each person/$500,000 per occurrence for contracts of $100,000 or less; or, b. Bodily Injury $1,000,000 single limit per occurrence or $1,000,000 each person/$1,000,000 per occurrence for contracts in excess of $100,000; and, c. Property Damage $100,000 per occurrence regardless of Contract amount; and, d. Minimum aggregate policy year limit of $1,000,000 for contracts of $100,000 or less; or, e. Minimum aggregate policy year limit of $2,000,000 for contracts in excess of $100,000. Comprehensive Automobile Liability (including owned, non-owned and hired vehicles coverage). a. Minimum combined single limit of $500,000 per occurrence for bodily injury and property damage. b. If individual limits are provided, minimum limits are $300,000 per person, $500,000 per occurrence for bodily injury, and $100,000 per occurrence for property damage. PREAMBLE TO RULE 110.110 The Texas Worker's Compensation Commission adopts new § 110.10, concerning requirements for governmental entities awarding a contract for a building or construction project, and for persons providing services on a building or construction project for a governmental entity. The new rule is adopted with changes to the proposed text published in the April 26, 1994 issue of the Texas Register (19 TexReg 3131). Subsection (a)(7) and (c)(7) were amended by adding language to further clarify who is covered by the rule. Subsections (c)(7)(F) and (c)(3) were added to clarify that a contractor or subcontractor is representing to the governmental entity that workers' compensation coverage is provided. Subsections (d)(8)(C) and (c)(8)(C) were added to require specific language regarding representations of coverage to be added to contracts to provide services on the project. Subsections (c)(7)(F), and (c)(7)(I)(5), (d)(5), (d)(8)(F), (c)(6), and (c)(8)(F) were amended to reduce the retention period for contractors and other persons providing services on the project from three years to one year. Subsection (g) was changed to state that this rule applies to contract advertised for bid after September 1, 1994, rather than awarded after September 1, 1994. The Texas Labor Code, §406.096, requires workers' compensation insurance coverage for all persons providing services on a building or construction project for a governmental entity. The commission is aware that this statutory requirement is not being met, and this rule is designed to achieve compliance and to implement a record keeping process which will enable oversight of compliance. The rule does this by placing requirements on the governmental entity and on contractors and other persons providing services on a project. These requirements include coverage, certificates of coverage, posted notices of coverage, and notification of changes in coverage status. The rule does not create any duty or burden on anyone which the law does not establish. The rules defines terms which apply to governmental entity building or construction projects and sets up a clear procedure for governmental entities and contractors that bid for building land construction projects to follow in complying with the requirements of the Texas Labor Code, §406.096. It also defines persons who provide services on a project who are subject to the statutory requirement of coverage, and sets forth their requirements to comply with the statute and the rule. It specifically excludes persons such as food/beverage vendors whose deliveries and labor are not permanently incorporated into the project. The rule puts persons on notice that providing false or misleading certificates of coverage, or failing to provide or maintain required coverage, or failing to report any change that materially affects the provision of coverage may subject the contractor or other persons providing services on the project to administrative penalties, civil penalties, or other civil actions. The rule requires a governmental entity to timely obtain certificates of coverage, retain them for the duration of the project plus three years, and provide them to the commission upon request and to others entitled to them by law. It also requires the governmental entity as a prerequisite to awarding a contract, and as part of the contract, to require that the contractor provide coverage and certificates of coverage for the contractor's employees; timely obtain and provide the governmental entity all required certificates of coverage for all persons providing services on the project; retain certificates of coverage on file for the duration of the project and for one year thereafter; notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of C-3b coverage of any person providing services on the project; post notices on each project site; and contractually require persons with whom it contracts to do the same, with the certificates of coverage to be provided to the person for whom they are providing services. The rule also sets out the language to be included in bid specifications and in contracts awarded by a governmental entity and the information required to be in the posted notice to employees. It further establishes a method for obtaining the certificates from persons providing services on the project and providing them to the governmental entity. It requires a contractor awarded a building or construction contract to provide workers' compensation coverage to the contractor's employees for the duration of the project; file a certificate of coverage of the contractor's employees with the governmental entity prior to being awarded a contract; obtain and provide to the governmental entity, certificates of coverage from each other person with whom it has contract to provide services on the project, prior to that person beginning work on the project; obtain and provide new certificates of coverage shown on the current certificate ends during the duration of the project; retain all certificates of coverage for the duration of the project and for one year thereafter, notify the governmental entity of material changes in coverage; contractually require each other person with whom it contracts to provide a certificate of coverage; and post notices on each project site. All other persons providing services on a project have the same requirements as a contractor, with the exception of posting notices and with the exception that the certificate of coverage is given to the person for whom they contracted to provide services on the project. The rule uses the term "persons providing services on the project; in (lieu of the statutory term "subcontractor because the term "subcontractor" as used in the statue (§406.096) and in this rule is broader than standard industry usage. The use of the different terminology will prevent confusion. The rule does not create any duty or burden on anyone which the law does not establish. The new rule is adopted under the Texas Labor Code, §402.061, which authorizes the commission to adopt rules necessary to administer the Act, and Texas Labor Code, §406.096, which establishes requirements for governmental entities, contractors, and subcontractors ("persons providing services on the project") regarding workers' compensation coverage for workers on public building or construction projects. Rule 110.110 Reporting Requirements for Building or Construction Projects for Governmental Entities. (a) The following words and terms, when used in this rule, shall have the following meanings, unless the context clearly indicates otherwise. Terms not defined in this rule shall have the meaning defined the Texas Labor Code, if so defined. (1) Certificate of coverage ("certificate"). A copy of a certificate of insurance, a Certificate of authority to self-insure statutory workers' compensation insurance coverage for the person's or entity's employees (including those subject to a coverage agreement) providing services on a project, for the duration of the project. (2) Building or construction - has the meaning defined in the Texas Labor Code, §406.096(e)(I). (3) Contractor - A person bidding for or awarded a building or construction project by a governmental entity. (4) Coverage - Worker's compensation insurance meeting the statutory requirements of the Texas Labor Code, §401.011(44). (5) Coverage agreement - A written agreement on form TWCC-81, form TWCC- 82, form TWCC083, or form TWCC-84, filed with the Texas Workers' Compensation Commission with establishes a relationship between the parties for purposes of the Workers' Compensation Act, pursuant to the Texas Labor Code, Chapter 406, Subchapters F and G as one of employer/employee and establishes who will be responsible for providing workers' compensation coverage for persons providing services on the project. (6) Duration of the project - Includes the time from the beginning of work on the project until the work on the project has been completed and accepted by the governmental entity. (7) Persons providing services on the project ("subcontractor" In §406.096 of the Act) - Includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes but is not limited to independent contractors, subcontractors, leasing companies, motor carriers, owner-operators, employees of any such entity, or employees of any entity furnishing persons to perform services on the project. "Services" includes but is not to providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. (8) Project - Includes the provision of all services related to a building or construction contract for a governmental entity. (b) Providing or causing to be provided a certificate of coverage pursuant to this rule is a representation by the insured that all employees of the Insured who are providing services on the project are covered by workers' compensation coverage, that the coverage if based on proper reporting of classification codes and payroll amounts, and that all coverage agreements have been filed with the appropriate insurance carrier or, in the case of a self-insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading certificates of coverage, or failing to provide or maintain required coverage, or failing to report any change that materially affects the provision of coverage may subject the contractor or other person providing services on the project to administrative penalties, criminal penalties, civil penalties, or other civil actions. (c) A governmental entity that enters into a building or construction contract on a project shall: (1) Include in the bid specifications, all the provisions of subsection (d) of this rule, using the language required by paragraph (7) of this subsection; (2) As part of the contracts, using the language required by paragraph (7) of this subsection, require the contractor to perform as required in subsection (d) of this rule; (3) Obtain from the contractor a certificate of coverage for each person providing services of the project, prior to that person beginning work on the project; (4) Obtain from the contractor a new certificate of coverage showing extension of coverage; (A) Before the end of the current coverage period, if the contractor's current certificate of coverage shows that the coverage period ends during the duration of the project, and (B) No later than seven days after the expiration of the coverage for each other person providing services on the project whose current certificate shows that the coverage period ends during the duration of the project; (5) Retain certificates of coverage on file for the duration of the project and for three years thereafter; (6) Provide a copy of the certificates of coverage to the commission upon request and to any person entitle to them by law; and, (7) Use the following language for bid specifications and contracts, without any additional works or changes, except those required to accommodate the specific document in which they are contained or to impose stricter standards of documentation in Figure 1: (Figures 1) Article . Worker's Compensation Insurance Coverage. A. Definitions: Certificate of coverage ("certificate"). A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the project. Duration of the project - includes the time from the beginning of the work on the project until the contractor's/person's work on the project has been completed and accepted by the governmental entity. Persons providing services on the project ("subcontractor" in §406.095) includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner-operators employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filling of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401,011(44) for all employees of the contractor providing services on the project, for the duration of the project. C. The Contractor must provide a certificate of coverage to the governmental entity prior to being awarded the contract. D. If the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project, the contractor must, prior to the end of the coverage period, file a new certificate of coverage with the governmental entity showing that coverage has been extended. E. The contractor shall obtain from each person providing services on a project, and provide to the governmental entity: (1) a certificate of coverage, prior to that person beginning work on the project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and, (2) no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage (if the coverage period shown on the current certificate of coverage ends during the duration of the project. F. The contractor shall retain all required certificates of coverage for the duration of the project and for one year thereafter. G. The contractor shall notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. H. The contractor shall post on each project site a notice, in the text form and manner prescribed by the Texas Worker's Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. I. The contractor shall contractually require each person with whom it contracts to provide services on a project, to: (1) Provide coverage, based on proper reporting of classification codes and payroll amounts and filling of any coverage agreements, which means the statutory requirements of Texas Labor Code, Section 401.011 (44) for all of its employees providing services on the project, for the duration of the project; (2) Provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project; (3) Provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, (if the coverage period shown on the current certificate of coverage and during the duration of the project: (4) Obtain from each other person with whom it contracts, and provide to the contractor: (a) a certificate of coverage, prior to the other person beginning work on the project; and (b) a new certificate of coverage showing extension of coverage, prior to the end of the coverage period. If the coverage period shown on the current certificate of coverage ends during the duration of the project; (5) Retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (6) Notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and (7) Contractually require each person with whom it contracts, to perform as required by paragraphs (1) — (7), with the certificates of coverage to be provided to the person for whom they are providing services. J. By signing this contract or providing or causing to be provided a certificate of coverage, the contractor is representing to the governmental entity that all employees of the contractor who will provide services on the project will be covered by worker's compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self- insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The contractor's failure to comply with any of these provisions is a breach of contract by the contractor which entitles the governmental entity to declare the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmental (d) A contractor shall: (1) Provide coverage for its employees providing services on a project, for the duration of the project based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements; (2) Provide a certificate of coverage showing workers' compensation coverage to the governmental entity prior to beginning work on the project; (3) Provide the governmental entity, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project; (4) Obtain from each person providing services on a project, and provide to the governmental entity: (A) a certificate of coverage, prior to that person beginning work on the project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and, (B) no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage code during the duration of the project; (5) Retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (6) Notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; (7) Post a notice on each project site informing all persons providing services on the project that they are required to be covered, and stating how a person may verify current coverage and report failure to provide coverage. This notice does not satisfy other posting requirements imposed by the Act or other commission rules. This notice must be printed with a title in at least 30 point bold type and text in at least 19 point normal type, and shall be in both English and Spanish and any other language common to the worker population. The text for the notices shall be the following text in Figure 2 provided by the commission on the sample notice, without any additional works or changes: (Figure 2) REQUIRED WORKER'S COMPENSATION COVERAGE 'The law requires that each person working on this site or providing services related to this construction project must be covered by worker's compensation insurance. This includes persons providing, hauling, or delivering equipment or materials, or providing labor or transportation or other service related to the project, regardless of the identify of their employer or status as an employee." "Call the Texas Worker's Compensation Commission at 512-440-3789 to received information on the legal requirement for coverage, to verify whether your employer has provided the required coverage, or to report an employer's failure to provide coverage." And (8) Contractually require each person with whom it contracts to provide services on a project, to: (A) Provide coverage based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements for all of its employees providing services on the project, for the duration of the project; (B) Provide a certificate of coverage to the contractor prior to that person beginning work on the project; (C) Include in all contracts to provide services on the project the language in subsection (o) (3) of this rule; (D) Provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project; (E) Obtain from each other person with whom it contracts, and provide to the contractor; (I) a certificate of coverage, prior to the other person beginning work on the project; and (II) prior to the end of the coverage period, a new certificate of coverage showing extension of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project: (F) Retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (G) Notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and, (H) Contractually require each person with whom it contracts, to perform as required by paragraphs (A) - (H), with the certificate of coverage to be provided to the person for whom they are providing services. (e) A person providing services on a project, other than a contractor, shall: (1) Provide coverage for its employees providing services on a project, for the duration of the project based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements; (2) Provide a certificate of coverage as required by its contract to provide services on the project, prior to beginning work on the project; (3) Have the following language in its contract to provide services on the project: "By signing this contract or providing or causing to be provided a certificate of coverage, the person signing this contract is representing to the governmental entity that all employees of the person signing this contract who will provide services on the project will be covered by workers' compensation coverage for the duration of the project that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. (4) Provide the person for whom it is providing services on the project, prior to the end of the coverage period shown on its current certificate of coverage, a new certificate showing extension of coverage, if the coverage period shown on the certificate of coverage ends during the duration of the project: (5) Obtain from each person providing services on a project under contract to it, and provide as required by its contract: (A) A certificate of coverage, prior to the other person beginning work on the project; and (B) Prior to the end of the coverage period, a new certificate of coverage showing extension of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project; (6) Retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (7) Notify the governmental entity in writing by certified mail or personal delivery, of any change that materially affects the provisions of coverage of any person providing services on the project and sent the notice within 10 days after the person knew or should have known of the change; and (8) Contractually require each other person with whom it contracts to: (A) Provide coverage based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements for all of its employees providing services on the project, for the duration of the project; (B) Provide a certificate of coverage to it prior to that other person beginning work on the project; (C) Include in all contracts to provide services on the project the language in subsection (e)(3) of this rule; (D) Provide, prior to the end of coverage period, a new certificate of coverage showing extension of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project (E) Obtain from each other person under contract to it to provide services on the project, and provide as required by its contract: (i) a certificate of coverage, prior to the other person beginning work on the project; and (ii) prior to the end of the coverage period, a new certificate of coverage showing extension of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the contract; (F) Retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (G) Notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and (H) Contractually require each person with whom it contracts, to perform as required by paragraphs (A) - (H), with the certificate of coverage to the provided to the person for whom they are providing services. (f) If any provision of this rule or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this rule that can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be sever able. (g) This rule is applicable for building or construction contracts advertised for bid by a governmental entity on or after September 1, 1994. Effective Date: September 1, 1994 4. Contractual Liability Insurance covering the indemnity provision of this Contract in the same amount and coverage as provided for Commercial General Liability Policy, specifically referring to this Contract by date, job number and location; 5. All-Risk Builder's Risk of the non-reporting type (NOT REQUIRED for paving projects, water and sewer line projects or projects involving lump sum payments). 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 a valid Certificate of Insurance the CERTIFICATE OF INSURANCE form attached to and made a part of the Information To Bidders, and pertaining to the above listed Items 1, 2, 3 and 4; and before commencing any of the work and within the time otherwise specified. CONTRACTOR shall file said completed form with the OWNER. None of the provisions in said Form shall be altered or modified in any respect except as herein expressly authorized. Said CERTIFICATE OF INSURANCE Form contains a provision that coverages afforded under the policies will not be altered, modified or cancelled unless at least fifteen (15) days prior written notice has been given to the OWNER. CONTRACTOR shall also file with the OWNER valid CERTIFICATE(s) 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 OWNER not more than ten (10) days after execution of this Contract. The original Builder's Risk policy (if required) shall provide for fifteen (15) days written notice of alteration, modification or cancellation and shall be furnished to OWNER. Provided, however, until the Original Policy is issued and furnished to the OWNER a Certified Insurance Binder with the identical notice will be acceptable in place of the original policy, which original policy must be received by the OWNER not later than thirty (30) days after issuance of the Notice to Proceed for the project. Notwithstanding any other provision in the Contract Documents, it is further mutually understood and agreed that no payment will be due and owing or made to the CONTRACTOR for any work performed under the Contract until all of the required insurance documentation, including the original policy specified above, are received by the OWNER. SALES TAX This Contract is issued by an organization which qualifies for exemption pursuant to the provisions of Section 151.209 of the Texas Limited Sales, Excise and Use Tax Act as The CONTRACTOR'S attention is directed to the State of Texas Comptroller of Public Repairmen and Contractors - Reference: Section 151.056 Texas Tax Code which, upon compliance with certain conditions, provides for exemption from this tax of nonconsumable materials and equipment permanently incorporated into work done for an exempt organization, and to House Bill 11 amendments to Section 151.311 of the Tax Code (Vernon Supp. 1992) as they relate to separated contracts/bids in order for nonconsumable materials and equipment to qualify for resale to the City of Port Arthur, and be exempt from sales tax. Any Bidder may elect to exclude this sales tax from his bid. The bid and contract, however, must separately identify the charges for: (1) non- consumable materials and equipment that are permanently incorporated into the project; and, (2) charges for skill, labor and consumable materials, tools and equipment which are not permanently incorporated into the project. This statement shall be included in and made part of the Contract. CONTRACTORS are required to have a sales tax permit issued by the Comptroller of the State of Texas in order to qualify under the exemption provisions and the separated Contract procedure. The City will issue a specific exemption certificate for a separated Contract to the CONTRACTOR in order that he does not have to pay taxes on qualifying materials and equipment purchased for and permanently incorporated into the City of Port Arthur, project. The CONTRACTOR performing this Contract must issue to his suppliers an exemption certificate in lieu of the tax, said exemption certificate complying with all applicable State Comptroller's rulings, along with a copy of the certificate issued to him by the City of Port Arthur. The OWNER will make no further allowance for and will make no price adjustment above or below the originally bid unit prices on account of this tax. It shall be the CONTRACTOR'S sole responsibility, if CONTRACTOR has elected to exclude the sales tax from the bid, to comply with the aforementioned Rulings and with any other applicable rules, regulations or laws pertaining to the Texas Limited Sales, Excise and Use Tax which may now or at any time during the performance of this Contract be in effect, and the OWNER shall have no responsibility for any sales or use tax which the CONTRACTOR may be required to pay as a result of CONTRACTOR'S failure or the OWNER'S failure to comply with said rules, regulations or laws, or as the result of the performance of the Contract or any part hereof by the CONTRACTOR. Bidders are cautioned that materials which are not permanently incorporated into the work (Example: Fuel, lubricants, tools, forming materials, etc.) are not eligible for exemption and are not to be included in the statement as "Non-Consumable Materials and Equipment". SUBSTITUTIONS Where materials or equipment are specified by a trade or brand name, it is not the intention of the OWNER to discriminate against an equal product of another manufacturer, but rather to set a definite standard of quality or performance, and to establish an equal basis for the evaluation of bids. LAWS All applicable laws, ordinances and the rules and regulations of all authorities having jurisdiction over construction of the project shall apply to the Contract throughout. EQUAL OPPORTUNITY Contractor agrees to abide by the requirement under Executive Order No. 11246, as amended, including specifically the provisions of the equal opportunity clause set forth in the General Conditions. RETAINAGE A retainage of five percent (5%) of the amount of each periodic progress payment shall be retained by OWNER until final completion and acceptance of all work under the CONTRACT. CONTINGENCY The City Council expressly authorizes the City Manger a 10% contingency for Change Orders. The total of all Change Orders issued under this section may not increase the Original Agreement amount by more than 10%. A Change Order greater than 10%, must be approved by the City Council.