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HomeMy WebLinkAboutMarathon Construction Corporation; 2006-03-03; 3338CONTRACT PUBLIC WORKS AGUA HEDIONDA AND CALAVERA CREEK EMERGENCY DREDGE PROJECT (PROJECT NO. CIP 3338) This agreement is made this 3 Jay of March . 2(X)6. hy and between the City of Carlsbad. California, a municipal corporation, (hereinafter called "City"), and Marathon Construction Corporation whose principal place of business is 10108 Riverford Road. Lakeside. CA. 92040. (hereinafter called "Contractor"). City and Contractor agree a,s follows: 1. Description of Work. Contractor shall perform all work as design and directed by the City Engineer on a cost plus materials basis as shown on Exhibit "A" (hereinafter called "work").. 2. Provisions of Labor and Materials. Contractor shall provide all labor, materials. t<x>ls. equipment, and personnel to perform the work specified hy the Contract Documents. 3. Contract Documents. The Contract Documents consist of this Contract and Exhibit "A", incorporated herein by this reference. Contractor, her/his subcontractors, and materials suppliers shall provide and install the work as indicated, specified, and implied by the Contract Documents. Any items of work not indicated or .specified, bui which are essential to the completion of the work, shall he provided at the Contractor's expense to fulfill the intern of said documents. In all instances through the life of the Contract, the City will be the interpreter of the intent of the Contract Documents, and the City's decision relative to said intent will be final and binding. Failure of the Contractor to apprise subcontractors and materials .suppliers of this condition of the Contract will not relieve responsibility of compliance. 4. Payment. For all compensation Tor Contractor's performance of work under this Contract, City shall make payment to the Contractor per section 9-1 PAYMENT of the Standard Specifications for Public Works Construction (SSPWC) 1997 Edition, and the 1998 and 1999 supplements thereto, hereinafter designated "SSPWC". as issued hy the Southern California Chapter of the American Public Works Association, and as amended by the Supplemental Provisions section of this contract. The Engineer will close the estimate of work completed for progress payments on ihe last working day of each month. The total fee to ihe Contractor shall not exceed $250,(KX) without approved amendments to the Contract. The Contractor will be compensated on a lime and materials basis as shown in Exhibit "A", and markup shall not exceed !()'#. 5. Independent Investigation. Contractor has made an independent investigation of Ihe jobsite. the .soil conditions at the jobsite. and all other conditions thai might affect the progress of the work, and is aware of those conditions. The Contract price includes payment for all work that may be done by Contractor, whether anticipated or not. in order to overcome underground conditions. Any information that may have been furnished to Contractor by City about underground conditions or other job conditions is for Contractor's convenience only, and City does mil warrant that the conditions are as thus indicated. Contractor is satisfied with all job conditions, including underground conditions and has mn relied on information furnished by C'ily. 6. Immigration Reform and Control Act. Contractor certifies it is aware of the requirements or the Immigration Reform and Control Act of 1986 (S USC sections 1101-1525) and has complied and will comply with these requirements, including, hut not limited to. verifying the eligibility for employment of all agents, employees, subcontractors, and consultants that are included in this Contract. 7. Prevailing Wage. Pursuant to the California Labor Code, the director of the Department of Industrial Relations has determined the general prevailing rale of per diem wages in accordance with California Labor Code, section 1773 and a copy of a schedule of said general prevailing wage rales is on file in the office of the Cily Engineer, and is incorporated by reference herein. Pursuant lo California Labor Code, section 1775, Contractor shall pay prevailing wages. Contractor shall post copies of all applicable prevailing wages on the job site. 8. Indemnification. Contractor shall assume the defense of. pay all expenses of defense, and indemnify and hold harmless the City, and its officers and employees, from ull claims, loss, damage, injury and liability of every kind, nature and description, directly or indirectly arising from or in connection with the performance of I he Contract or work: or from any failure or alleged failure of Contractor to comply with any applicable law. rules or regulations including those relating to safely and health: and from any and all claims, loss, damages, injury and liability, howsoever the same may be caused, resulting direclly or indirectly from the nature of the work covered by the Contract, except for loss or damage caused by the sole or active negligence or willful misconduct of the City. The expenses of defense include all costs and expenses including attorneys' fees for litigation, arbitration, or other dispute resolution method. Contractor shall also defend and indemnify the Cily against any challenges to the award of the contract to Contractor, and Contractor will pay all costs, including defense costs for the City. Defense costs include (he cos! of separate counsel for Cily. if City requests separate counsel. Contractor shall also defend and indemnify the Cily against any challenges to the award of the contract to Contractor, arising in whole or in part from alleged inaccuracies or misrepresentation by the Contractor, whether intentional or oiherwise. and Contractor will pay all cosis. including defense costs for the City. Defense costs include the cosi of separate counsel for City, if City requesis separate counsel. 9. Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries lo persons or damage to property which may arise from or in connection with the performance of the work hereunder by ihe Comracior, his or her agents, representatives, employees or subcontractors. Said insurance shall meet the City's policy for insurance as stated in Cily Resolution No. 91-403. (A) Coverages And Limits Contractor shall maintain the types of coverages and minimum limits indicted herein: a. Comprehensive General Liability Insurance: $1,(KX),(XX) combined single limit per occurrence for bodily injury and property damage. If Ihe policy has an aggregate limit, a separate aggregaie in ihe amounts specified shall he established for the risks for which Ihe Cily or iis agenis. officers or employees are additional insured. h. Business Automobile Liability Insurance: SI.(KK).(KX) combined single litnii per accident for bodily injury and properly damage. In addition, ihc auto policy inusl cover any vehicle used in Ihe performance of (he contract, used onsite or offsite. whether owned, non-owned or hired, and whether scheduled or non-scheduled. The auto insurance certificate must state Ihe coverage is for "any auto" and cannot be limited in any manner. c. Workers' Compensation and Employers' Liability Insurance: Workers' compensation limits as required by the Labor Code of the Stale of California and Employers' Liability limits of $1 .tKK).(KH) per incident. Workers' compensation offered by Ihe State Compensation Insurance Fund is acceptable to Ihe City. (B) Additional Provisions. Contractor shall ensure thut the policies of insurance required under this agreement with the exception of Workers' Compensation and Business Automobile Liability Insurance contain, or are endorsed to contain. Ihe following provisions. a. The City, its officials, employees and volunteers are lo be covered as additional insured as respects: liability arising out of activities performed by or on behalf of the Contractor: products and completed operations of the contractor; premises owned, leased, hired or borrowed by the contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, ils officials, employees or volunteers. All additional insured endorsements must be evidenced using separate documents attached to Ihe certificate of insurance: one for each company affording general liability, and employers' liability coverage. b. The Contractor's insurance coverage shall be primary insurance as respects the City, its officials, employees and volunteers. Any insurance or self-insurance maintained by the City, ils officials, employees or volunteers shall be in excess of the contractor's insurance and shall noi contribute with it. c. Any failure to comply with reporting provisions of Ihe policies shall not affect coverage provided to the City, ils officials, employees or volunteers. d. Coverage shall stale that the contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (C) Notice Of Cancellation. Each insurance policy required by this agreement shall he endorsed to state that coverage shall not he nonrenewed. suspended, voided, canceled, or reduced in coverage or limits except after thirty (30) days' prior written notice has been given lo the City by certified mail, return receipt requested. (D) Deductible* And Self-Insured Retention (S.I.K.I Levels. Any deductible^ or self-insured retention levels must he declared to and approved by Ihe City. At the option of (he City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention levels as respects the City, its officials and employees; or the contractor shall procure a bond guaranteeing payment of losses and related investigation, claim administration and defense expenses. (E) Waiver Of Subrogation. All policies of insurance required under this agreement shall contain a waiver of all rights of subrogation the insurer may have or may acquire against the City or any of ils officials or employees. (F) Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate cenificates and endorsements for each subcontractor. Coverages for subcontractors shall he subject to all of the requirements staled herein. (G) Acceptability Of Insurers. Insurance is lo be placed with insurers that have a rating in Best's Key Rating Guide of at least A-:V. Insurers must also be authorized lo transact Ihe business of insurance by the State of California Insurance Commissioner as admitted carriers as evidenced by a listing in Ihe official publication of the Department of Insurance of the Stale of California and/or under the standards specified by Ihe City Council in Resolution No. 91-403. (H) Verification Of Coverage. Contractor shall furnish the City with certificates of insurance and original endorsements affecting coverage required by this clause. The certificates and endorsements for each insurance policy arc to be signed by a person authori/.ed by that insurer lo bind coverage on its behalf. The certificates and endorsements are to be in forms approved by the City and are to be received and approved by the Cily before Ihe Contract is executed by the Cily. (I) Cost Of Insurance. The Cost of all insurance required under this agreement shall he included in the Contractor's bid. 10. Claims and Lawsuits. All claims by contractor for $375.(MX1 or less shall be resolved in accordance with the provisions in the Public Contract Code, Division 2. Part 3. Chapter I, Article 1.5 (commencing with section 20I04( which are incorporated by reference. A copy of Article 1.5 is included in Ihe Supplemental Provisions I section. The contractor shall initially submit all claims over $375.<XX) to the Cily using the informal dispute resolution process described in Public Contract Ctxlc subsections 20l()4.2(a). Ic). id). Notwithstanding the provisions of this section of the contract, all claims shall comply with the Government Ton Claim Act (section 9<K) el seq., of the California Government Code) for any claim or cause of action for money or damages prior to filing any lawsuit for breach of this agreement. <A» Assertion of Claims. Contractor hereby agrees that any contract claim submitted to the Cily must be asserted as part of the contract process as set forth in this agreement and not in anticipation of litigation or in conjunction with litigation (B) False Claims. Contractor acknowledges that if a false claim is submitted lo the Cily. it may IK considered fraud and the Contractor may be subject lo criminal prosecution. (C) Government Code. Contractor acknowledges that California Government Code sections 12650 el seq.. the False Claims Act. provides for civil penalties where a person knowingly submits a false claim lo a public entity. These provisions include false claims made with deliberate ignorance of Ihe false information or in reckless disregard of the truth or falsity of the information. (Dl Penalty Recover)'. If the Cily of Carlsbad seeks to recover penalties pursuant to the False Claims Act. it is entitled to recover its litigation costs, including attorney's fees. (E) Debarment for False Claims. Contractor hereby acknowledges that Ihe filing of a false claim may subject Ihe Contractor to an administrative debarmeni proceeding wherein Ihe Contractor may be prevented from further bidding on public contracts for a period of up to five years (F) Carlsbad Municipal Code. The provisions of Carlsbad Municipal Code sections 3.32.025. 3.32.026. 3.32.027 ami 3.32.028 pertaining to false claims are incorporated herein hy reference. (G) Debarment froni Other Jurisdictions. Contractor hereby acknowledges that deharnient hy another jurisdiction is grounds for the City of Carlsbad to disqualify the Contractor or subcontractor from participating in future contract bidding, (H) Jurisdiction. Contractor agrees and hereby stipulates that the proper venue arid jurisdiction for resolution of any disputes between the panics arising out of this agreemem is San Diego County. California. I have read and understand all provisions of Section 11 above/ j./ff". Wt init* ; tl .- 11, Maintenance of Records. Contractor shall maintain and make available at no cost to the City, upon request, records in accordance with sections 1776 and I8l\2of Part 7, Chapter i. Article 2. of the Labor Code If the Contractor does not maintain the records at Contractor's principal place of business as specified above. Contractor shall so inform the City by certified letter accompanying the return of this Contract. Contractor shall notify the City by certified mail of any change of address of such records. 12. Labor Code Provisions. The provisions of Part 7. Chapter I, commencing with section 1720 of the Labor Code are incorporated ht*n?in by reference 14. Security. Securities in the form of cash, cashier's check, or certified check may he substituted for any monies withheld hy the City to secure performance of this contract for any obligation established by this contract. Any other security that is mutually agreed to by the Contractor and the City may be substituted for monies withheld to ensure performance under this Contract. 15. Provisions Required by Law Deemed Inserted. Each and every provision of law and clause required by law to he inserted in this Contract shall he deemed to he inserted herein and included herein, and it", through mistake or otherwise, any such provision is not inserted, or is not correctly inserted, then upon application ol either puny, (he Contract shall fonhwith he physically amended in make such insertion or correction. NOTARIAL ACKNOWLEDGMENT OF EXECUTION BY ALL SIGNATORIES MUST BE ATTACHED (CORPORATE SEAL) CONTRACTOR: Marathon Cpnstruction Byr: Michael V. Furby, tfegsldent CITY OF C iORRAINk M WOOD. Cilv Clerk fsign here) CharlesF. Cunningham, Vice President (print name and title) President or vice-president and secretary »r assistant secretary must sign for corporaliotjPt one officer signs, the corporation must attach a resolution certified hy the secretary or'^sfctaoT secretary under the corporate seal empowering that officer to hind the corporation. ''•- APPROVED AS TO FORM: RONALD R BALI. City Attorney Deputy City Attorney BOND NO. 10462021 9 LABOR AND MATERIALS BOND WHEREAS, the City Council of the City of Carlsbad, State of California, by Resolution No. dr~7 5'53% , adopted pprzch 3,2036 , has awarded to MARATHON CONSTRUCPION CORPQBBaON (hereinafter designated as the "Principal"), a Contract for: Emergency Dredge Project (Project No. CIP 3338) in the City of Carlsbad, in strict conformity with the description of work contained in the Contract, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute said Contract and the terms thereof require the furnishing of a bond, providing that if Principal or any of their subcontractors shall fail to pay for any materials, provisions, provender or other supplies or teams used in, upon or about the performance of the work agreed to be done, or for any work or labor done thereon of any kid, the Surety on this bond will pay the same to the extent hereinafter set forth. NOW, THEREFORE, WE, as Principal, (hereinafter designated as the "Contractor"), and TRAVELE!FS CASUALTY AND SURFPY COPPANY OF AC~ERTCA as Surety, are held firmly bound unto the City of Carlsbad in the sum of mi0 HUNDRED FIFTY THCWSAND AND 001100 RED^^^^ ....................................................... Dollars ($250,000.00 -- ), said sum being an amount equal to: One hundred percent (100%) of the total amount payable under the terms of the contract by the City of Carlsbad, and for which payment well and truiy;o be made we bind ourselves, ow heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if the Contractor or histher subcontractors fail to pay for any materials, provisions, provender, supplies, or teams used in, upon, for, or about the performance of the work contracted to be done, or for any other work or labor thereon of any kind, consistent with California Civil Code section 31 81, or for amounts due under the Unemployment Insurance Code with respect to the work or labor performed under this Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to section 13020 of the Unemployment Insurance Code with respect to the work and labor, that the Surety will pay for the same, and, also, in case suit is brought upon the bond, reasonable attorney's fees, to be fixed by the court consistent with California Civil Code section 3248. This bond shall inure to the benefit of any of the persons named in California Civil Code section 3181, so as to give a right of action to those persons or their assigns in any suit brought upon the bond. Surety stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract, or to the work to be performed thereunder or the specifications accompanying the same shall affect its obligations on this bond, and it does hereby waive notice of any change, extension of time, alterations or addition to the terms of the contract or to the work or to the specifications. In the event that Contractor is an individual, it is agreed that the death of any such Contractor shall not exonerate the Surety from its obligations under this bond. Executed by CONTRACTOR this 3r2z Executed by SURETY this 3rd day day of MAC L +I .20 - C>1;1 CONTRACTOR: MARATHON CCNSTRUCl'ION CfWORATION M\K€ Fdc*'y (print name here) rav - gn here) of MARCH ,202. SURETY: TRAVELERS CASUALTY AND SURETY CCMPANY OF AMERTCA (name of Surety) 9325 SKY PARK Cl'. STE. 220 SAN DIEGO, CA 92123 ROBERT P. COLE, ATII)RNEY-IN-FACT 1 (printed name of Attorney-in-Fact) ,I &>(.'L. L-J bJ 13 \ d 6- k-I kbA (attach corporate resolution showing curreci power of (print name here) attorney) Lp \ C. c~ F'\2kc ,, <><I\ rj- <;<-(- (:<: --iab:: -y' (title and organization of signatory) (Proper notarial acknowledgment of execution by CONTRACTOR and SURETY must be attached.) (President or vice-president and secretary or assistant secretary must sign for corporations. If only one officer signs, the corporation must attach a resolution certified by the secrelary or assistant secretary under corporate seal empowering that officer to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL Deputy City Attorney \ TRAVELER 'ASUALTY AND SURETY COMPANY OF A' PICA TR.4.-LERSCASUALTYANDSURETYCOMPANI . . FARMINGTON CASUALTY COMPANY I* Hartford, Connecticut 06183-9062 POWER CP ATTORNEY AND CERTIFICATE OF AUTHORITY OF ATTORNEY@)-IN-FACT KNOW ALL PERSONS BY THESE PRESENTS, THAT TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, corporations duly organized under the laws of the State of Connecticut, and having their principal off~ces in the City of Hartford, County of Hartford, State of Connecticut, (hereinafter the "Companies") hath made, constituted and appointed, and do by these presents make, constitute and appoint: Daniel P. Dole, James F. Teghtmeyer, John T. Dole, Nicki Edwards, Robert P. Dole, of Bonita, California, their true and lawful Attorney(s)-in-Fact, with full power and authority hereby conferred to sign, execute and acknowledge, at any place within the United States, the following instrument(s): by hidher sole signature and act, any and all bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking and any and all consents incident thereto and to bind the Companies, thereby as fully and to the same extent as if the same were signed by the duly authorized offtcers of the Companies, and all the acts of said Attomey(s)-in-Fact, pursuant to the authority herein given, are hereby ratified and confirmed. This appointment is made under and by authority of the following Standing Resolutions of said Companies, which Resolutions are now in full force and effect: VOTED: That the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys-in-Fact and Agents to act for and on behalf of the company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given lum or her. VOTED: That the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is filed in the office of the Secretary. VOTED: That any hond, recognizance, contract of indemnity, or writing obligatory in the nature of a hond, recognizance, or conditional undertaking shall he valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary, or (b) duly executed (under seal, if required) by one or more Attorneys-in-Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority. This Power of Attorney and Certificate of Authority is signed and sealed by facsimile (mechanical or printed) under and by authority of the following Standing Resolution voted by the Boards of Directors of TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, which Resolution is now in full force and effect: VOTED: That the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertalangs and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall he valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company in the future with respect to any hond or undertaking to which it is attached. (02-05) Unlimited IN WITNESS WHEREOF, TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY have caused this instrument to be signed by their Senior Vice President and their corporate seals to be hereto &xed this 8th day of March, 2005. STATE OF CONNECTICUT )SS. Hartford COUNTY OF HARTFORD TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA TRAVELERS CASUALTY AND SURETY COMPANY FARMINGTON CASUALTY COMPANY CONN. BY George W. Thompson Senior Vice President On this 8th day of March, 2005 before me personally came GEORGE W. THOMPSON to me known, who, being by me duly sworn, did depose and say: that helshe is Senior Vice President of TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, the corporations described in and which executed the above instrument; that helshe knows the seals of said corporations; that the seals axed to the said instrument are such corporate seals; and that helshe executed the said instrument on behalf of the corporations by authority of hisiher office under the Standing Resolutions thereof. My commission expires June 30, 2006 Notary Public Marie C. Tetreault CERTIFICATE I, the undersigned, Senior Vice President of TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, stock corporations of the State of Connecticut, DO HEREBY CERTIFY that the foregoing and attached Power of Attorney and Certificate of Authority remains in full force and has not been revoked; and furthermore, that the Standing Resolutions of the Boards of Directors, as set forth in the Certificate of Authority, are now in force. Signed and Sealed at the Home Office of the Company, in the City of Hartford, State of Connecticut. Dated this 3RD day of MARM ,20 06 BY Nicholas Serninara Senior Vice President . . . t' CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT County of San Diego On 03/03/2006 before me, Nicki Edwards, Notary Public, personally appeared Robert P. Dole, personally known to me -C@fl to be the person@f whose name(fi islaw subscribed to the within instrument and acknowledged to me that hels~executed the same in hismeFCtkeir authorized capacity(i+and that by hishdtk+signature@+ on the instrument the personw, or the entity upon behalf of which the person! acted, executed the instrument. NICK1 EDWARDS WITNESS my hand and official seal. Signature of Notary CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER GUARDIANICONSERVATOR IGNER IS REPRESENTING: AME OF PERSON(S) OR ENTITY(1ES) Travelers Casualty and Surety Company of America CITY OF CARLSBAD I FINANCE DEPARTMENT <:lose LVa.i:cxS, Congratulat~ons. You have successfully completed our online buslness llcense process At this tlrne your license has been placed In a pending status untll we can revlew your flle Please prlnt this page w~th your conf~rmat~on number Should you need to follow up wlth the City on the status of your account you will need to have your conf~rmatlon number 21 a9c387bcc66147 If you have additional business licenses to apply for or renew. please DO NOT use the browser BACK button and reuse the data. Instead, please iC!!:stJ b'Jl';!f~.~iStaR over with a new session. On a period~c bas~s, we select businesses lo provide verification to the City to support their gross recelpt calculat~ons If your busmess has been selected this year, you will recelve a ver~flcation request from our offlces w~th~n the next couple of weeks Once your ver~flcation has been rece~ved and reviewed by the Clty your busmess llcense will be processed . . .. , ..\ , : : . ;. ....,. ,. . o~:~~A.~~~J.Y;.~N~~~&~~~~~:~;~~~~;..;.~~:~ . . . ... . , &,.;,. ii;".;:':: ::. D*T1;;g~ .. . ..,\, ,:.:... . ~" ..*. .., . , . .. ~~ '...~ .. . .. . PRODUCE'I 61 9-238-1828 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Dr~ver Aiiiant Insurance ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THlS CERTIFICATE DOES NOT AMEND, EXTEND OR Dennis V. Schraeder ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. 1620 Fifth Avenue AFFORDING COVERAGE San Diego. CA 92101 LexinOlon Insurance Company . ~ pp-p.pp. lNSUHED ( COIIPII*." Mararhon Construction Corp. iB .~~~ ~~~- p~ ~ 10108 Riverford Road COUPANY Lakeside CA 92040 C . ~ COMPAN" / TIPS OFIXSUR- 1 POLEI NUMBER POUCI EfPfCTlYl POLICY EXIIRATIOR LTR OATS IUMmOIIYI / Dl(= lM,DDNll "MlTS C5N-U LI&BtCIIY 1549513 10101/05 1 10,01,!06 BrNrnu AGGREGATE 3 200010: b COVMERCIAL GTNTRII I lRll17Y PRODUCTS. COMPOP A" 1 i00000: [-:a CLI(LI5 WDE @ OCCU. PERSONU 6. *DV INJURY IOOOOOL 4 ' 0Y.hTR.S 6 COhTRACTO'ISPitOT eACn DCCYRNMCC .- 1 ,"0L1"0'- - <#RE DU.IIGE i~n) -a P,~~, I srtgn ! MET) BXP I&" om~-rnl $ i D&CRIP~~W Of ORRIITIONl~OCITIOHSV€MCLES,SEC1AL !WEUS PROJECT # 3338 1 JOB AGUA HEDIONDA CHANNEL EMERGENCY DREDGING PROJECT. CARLSBAO CA AUIOMOB(LE ummi k Ah" Ail70 *U OWNEL; AUTOS I 1 I ! 1 UjGWGIIIE 8 ~ ..-. CERTIFICATE HOLDER IS AD CITY OF CARLSBAD EXPIRATIOH DATE THfREOF. THE ISSUING COMIIiNI WILL - MmL 1635 FARADAY AVENUE CARLSBAD, CA 92008 EXCESS UlDlUTl I ! fACH OCCURRENCE OOOlLY ,N,URY COMSINro SNat LiMiT -- I+- rcldrntl ! 1 'ROPERTI OAMAGI I I AUTO ONLY EA ACCI2-S.iT I - :: "UMSRELLP FDRIi, I 1 OTilEfl T.14Y YMBRCU FJRhi ' .~. * I.CN OVINL? AUICS I AGGlEtPTt -- ! ' 80011Y .NJURY ,PO, mr,on, I -- I I OLIRAQE ~IIRlllW a *m AUTO WORKERS COMTVIIATION AN0 ! EMslDIEmS' Ulslm EL EACH ACCIDWT ZL 246 (11-85) FOLICY NUMBER: 2519513 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY CG 20 10 11 85 ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modlfies insurance provided under the following: COMNEP.CIAL GENERAL LIABILITY COC'EKAGE PART SCHEDULE THE CITY OF CARLSSAD, ITS OFFICIALS EMPLOYEES AND VOLUNTEERS (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement. ) WHa IS INSURED (Section 11: is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you. Insured: VARATHON CONSTRUCTION CORP. Producer: Lrlver Alllant Insurance Services, Inc Copy:igt.~. Insurance Services Offtce Inc.. 1984 ENDORSEMENT # 008 This endorsement, effectlve 12:01 AM 10/0 1 /ZOO5 Forms a part of pollcy no.: 15495 13 Issued to: MARATHON CONSTRUCT1 ON CORPORATION By: LEXINGTON INSURANCE COMPANY WAIVER OF SUBROGATION (BLANKET) It is agreed that we, in the event of a payment under this policy, waive our right of subrogatlon against any person or organization where the insured has waived liability of such person or organization as part of a written contractual agreement between the insured and such person or organization entered into pflor to tho "occurrence" or offense. All olhcr terms an3 conditions remain unchanged Authorized Representative OR Countersignature (In states where applicable) ENDORSEMENT # 0 1 1 Thls endorsement, effectlve 12:Ol AM 10/0 1 /20~5 Forms a pan of pollcy no.: 15495 13 lssuedto:MARATHON CONSTRUCTION CORPORATION By: LEXINGTON INSURANCE COMPANY AGGREGATE LIMITS OF INSURANCE - PER PROJECT AMENDMENT AND OVERALL GENERAL AGGREOATE LIMIT This endorsement mod~f~es insurance provided under the policy: Subject to the Overall General Aggregate Limit stated in ltem 3 of the Declarations, the General Aggregate Limit under LIMITS OF INSURANCE (Section Ill) applies separately to each of your "projects" away from premises owned by or rented to you. it is further understood and agreed that the following changes are made to the policy: (1) ltem 3. Lim~ts of lnsurance in the Declarations is amended by the addition thereto of the following Limit: Overall General Aggregate Limit - S 5,000.000 (2) SECTION Ill- LIMITS OF INSURANCE is amended by the addition thereto of the following paragraph under paragraph 6. 7. The Ovorall General Aggregate Limit is the most we will pay under Coverages A and B for the sum of all L~mits of Insurance as provided in this SECTION Ill regardless of Me number of your "projects"; except for damages because of "bodily injury" and "prop* damage' included in the "products-completed operations hazard". For the purpose of this endorsement. "project" means the work for which the Named Insured is responsible according to a contram between the Named Insured as the contractor or sub-contractor. and an owner, developer or general or subcontractor. All other terms and conditions remain unchanged. Authorized Repreoentatlve OR Countersignature (In states where applicable) ENDORSEMENT # 01 2 This endorsement, effeotive 12:Ol AM 10i01/2005 Forms a pan of policy no.: 154951 3 Issued to: MARATHON CONSTRUCTION CORPORATION By: LEXINGTON INSURANCE COMPANY PRIMARY WORDINGINON-CONTRIBUTORY This endorsement modifies insurance under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART *BLANKET 'AS REQUIRED BY WRITTEN CONTRACT" It is further agreed that such Insurance as is afforded by the policy for the benefit of the Additional Insureds shall be primary insurance, but only as respects any Claims, Loss or liability arising of the Named insureds operatioris and any Insurance rnainIalned by the Additional Insured shall be non- contributing. All other terms remain unchanged Authorized Representative OR Countersignature (In atetes where eppliiablel 1~~ CA License #0E28830 1 INSURERS AFFORDING COVERAGE I N~C I 4 ACORD' CERTIFICATE OF LIABILITY INSURANCE DATE lwwno-1 u 0310212006 PRODUCER GIs Insurance Servtces 123 Queen Anne Avenue N8r:h. Suite 101 Seattle. WA 98109 I I I I COVERAGES ML OWNEDAYTOS SCHLWLEOAU~OS "two AL'IOS NONOYINEOAUT09 THS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE OMS NOT AMEND. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. I ~ ~ I~SVRED Marathon Conslruction Corporation 10108 Riverford Road % NDUCTIBIL 1 RETENTlOLl I I A WO~'OM~OMC~~SA~KIN EMPLOYER ' ur~nim WD 661050440 1011 105 1011106 -3 ~%Vb;?d& nu$ ANyPROmIETOWP~RTHEIMxEtUTVE Includes USL&H MEL EL WHICCIDENT t 1.000 000 OIFICEWMEMBER EXCLUDED? I S QOWMUMel IIW%LY ~LrmOY~ I I.OO0.OM) S~~CUL PROVISIONS bdw F I ~~~CBSF. on8 rr I ~vlr s 1.000 000 INSURER* SeaBrl~hl Insurance Company I INSURER B: ..,- I OAIUOE LIABU.1.I I ANY AUTO I 1 I UCElDlUllBRELU LIABIYTr 7 OCCUR CLAIMS MADE I P'ajecl Titie Ague Hrd~onCa Cnanla! Emergency Oledginp Project. Carlsbad. Csllfornla Pqec! No. 3338.1 I lrctuder Waiver ol Subrogallori ill faro~ uf the Certlllsate Holbrr. Ihe Clty of Carlsbao I AUTO ONLY. UICCIDENT OmERiH** AUTO ONLY. AVG FAX OCCURRENCE AGGRtWTE a a I a I SCPRESEHTAnYEs I ACORD 25 {2001108) L CERTIFICATE HOWER I CANCELIATION r SI~OULDLHIOP THLAUOVE DESCRIOED POL~C~ES UE CLNCELLED REFO~ETHE UPIUT!ON City of Carlsbad 1635 Faraday Avenue Carlsbad. CA 97008.7314 OAlb 1)lEREOF. THEISSUN0 INSURER WtLLEHDUIVOR 10 WL 30 DAIS WmEN NOllCE 10 THE CERTIFICATE HOLDER WED10 THE LEFT. OW FAtLURE TO DO SO SHALL lMPOSE NOO~LlOAllONOI UABlUlY OF ANY KIND UPON THE IHIURER. ITS AGELilS OR IMPORTANT If the certificate holder is an ADDITIONAL INSURED. the policy(ies) must be endorsed. A statement on this certificale does not confer rights to the certificate holder in lieu of such endorsement@). If SUBROGATION IS WAIVED, subject to the lerms and conditions of Ule policy, certain policies may require an endorsemenl. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not conslitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. Cllentlf 8591 - - MARATHCON -- 1 , ACORD, CER~IFICATE OF LIABILITY INSURANCE ~n>~nc DATE ,MKIDDmwUI ",--."" PHODUCEII John Burnham SD 1610 750 B Street. Suite 2400 / San Diego. CA 92101 / 800 421 -6744 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE I HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. ,- ~ ALL L8irNCbi:CS *OU,L" IN,"*' ,Pg. DCIEOO I LiOOLI IN.VR> X 8 ,,2:: o>..:,cr# Ad;c,s Pel >:nrc11\ I - - "?D,PSRrY D4tdN<l I .Par a'clitanl, I - , AIITOCNLI -EAALCi?ilil I i .- ,,I," id,%, I I I -1 DIBCRIPTKIN 05 OPERATIONS ; LOCATION$ IVSYICLEI IEXCIUIIOWS ADDED BI CNDORSGULNTI IPCCIAI PROVISIOHI I Certificale is subject lo all policy limits, conditions and exclusions. City of Carlsbad, its officials, employees, and volunteers as Additional Insured for Auto Liability per form GECA 701 (09104) attached. lnSURED I tLisur~?a Netherlands Insurance Co. / 24171 i Marathon Construction Corporation I--- I -~ INSURERS AFFORDING COVERAGE - DEDLiCTlOLL *EIELIION I WORKERS COUPENEAnON 1-0 EUPLD"ET(S. LlASslli~ ANY PROPRIETORPAR-NEfiEXiii,'l'!F O6I1CEIIMEMBCR il(iiiutil'- lli" d".Crl". u..ari SZECIAJ PUVi,lSli.I:Cli..$I,* OiME9 NAlC (r I 1635 Faraday Avcnue Carlsbad. CA 92008-7314 6XEEISlUUBRELU L~A~ILITI ! I CERTIFICATE HOLDER CANCELLATION T- IMPOE~ uo OBLICITIOH OR LIABIL,~ OF ANY lrno uroN T*E tnsinrR. n3 AOEITI OW REPPEPEWl*,l"ES .- .IUT*ORITED REPRESENTATIVE City of Carlsbad. Public Works Engineering ACORD25 (2001'08) 1 Of 2 lfS3147361M290316 HEDAL B ACORD CORPORATION 19HX 5QC SihiJ. "7-. TOWS EL EACII 4CCCIOENI EL O1SLASC EAEIIP.OVFF E I CISEASE POL<CI LIMIT SHOULO 1HIOrTHt ABOVE OEIlCRlBED POLICIES BE CANCELLEDBEFORE TeE tXPiR&.lOV U.lif TH~EOI. THE ISSLING INSURIII WLL ENDEAVOR TO KA~L 2 OI'ITWR~~~EN MOTICE TO THE CFRTI~ICATE HOLDER NAMED TO THE LEFT, BUT FAILURE 10 L'O SO SH~.L 5 I I I - -- I O~UEMM"~ EAACC I I % 1 I - I ~ ~~ ---- AUTO Orill ~ ~ -- - AiG EACH OCCtJRHEtllE - AGGi)EGLTS IMPORTANT If the ce-Oftcaic holder ,s an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on :.his cerlifiwle does not confer rights to the certificate holder in lieu of such endorsement(a) If SLIBROGATION IS WAIVED, subject to the terms and conditions of the polcy. cerlaln polices may requtre an endorsement. A statement on thls celificate does not confer rights to tho cerliflcate holder in lieu of such endorscment(s) DISCLAIMER The Certificate of Insurance or? the reverse side of this furr~, does not constitute a contract between tho issutng insurer;s). authorized representative or producer. and the certificate holder. nor does it aHlrmat8vely or negattvely amend, extend or alter the coverage afforded by the policies listed there on^ ACORD 25.5 (20011081 2 of 2 PS3id7361M290316 COMMERCIAL AUTO GOLD ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM SECTION II - LIABILITY COVERAGE A. COVERAGE 1 WHO IS AN INSURED The following is added d Any organizatlon. other than a partnership or joint venture over wh~ch you maintain ownership or a niajorlty interest on the effective date of this Coverage Form, if there is no similar insurance available to that organization e Any organ!zation you newly acqulre or form other than a partnership orjoint venture. and overwhich you ma~nlain ownership of a majority interest However, coverage under this provision does not apply (1) If there is sirnllar insurance or a self-insured retention plan available to that organization: or (2) To "bodily injury" or 'properly damage" that occurred before you acquired or formea the organization. f Any volunteer or employee of yours while using a covered'auto' you do not own, hire or borrow in your business or your personal affairs Insurance provided by this endorsement is excess over any other Insurance avatlable to any volunteer or employee. g. Any person, organization, trustee, estate or governmental entlty with respect to the operation. rnalntenance or use of a covered 'auto" by an insured, if (1) YOU are obligated to add that person, organization, trustee, estate or governmental entity as an additional insured to this policy by, (a) an expressed provision of an "insured contract', or written agreement: or (ti) an expressed condition of a written permit issued to you by a governmental or public author~ty. (2) The "bodtly injury" or 'property damage" is caused by an 'accidenr which takes place after. (a) Yo11 executed the 'insured contract" or written agreement; or (b) the permlt has been Issued to you 2. COVERAGE EXTENSIONS a. Supplementary Payments Subparagraphs (2) and (4) are amended as follows' (2) Up to $2500 for cost of bail bonds (including bonds for related traRc law violat~ons) requ~red because of an -accident' we cover We do not have to furnish these bonds. (4) Ail reasonable expenses incurred by the 'Insured. at our request. including actual loss of earning up to $500 a day because of tinie off from work lnciiides cop)ii~l~irJ nlaierlal of lilsurance Sewtces Ollices. loc wlin Is perT!ss#on GECA 701 (09104) Page 1 of 3 SECTION 111 -PHYSICAL DAMAGE COVERAGE A. COVERAGE The foliowing is added. 5. Hired Auto Physical Damage a Any 'auto. you lease, hire, rent or borrow from someone other than your employees or parlners or members of their household is a covered 'auto" for each of your physical damage coverages b The mosl we will pay for "loss" in any one "accident' is the smallest of (1) 550.000 12) The actual cash value of the damaged or stolen properly as of the time of the 'loss", or (3) The cost of repairing or replaclng the damaged or stolen propeny with other propem/ of like klnd and quality If you are liable for the "accideny, we will also pay up to $500 per "accident' for the actual loss of use to the owner of the covered "auto'. c Our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by an amount that is equal to the amount of the largest deductible shown for any owned "auto' for that coverage. However, any Comprehensive Coverage deductible shown in the Declarations does not apply to "loss" caused by fire or lightning. d. For th~s coverage, the insurance provided is primary for any covered "auto" you hire without a driver and excess over any other collectible insurance for any covered "auto' that you hire with a driver. 5. Rental Reimbursement Coverage We will pay up to 575 per day for up to 30 days, for rental reimbursement expenses Incurred by you for the rental of an "auto" because of "loss" to a covered "auto' Rental Reimbursement will be based on the rental of a comparable vehicle, which in many cases may be substantially less than $75 per day, and will only be allowed for a period of time it should take to repair or replace the vehicle with reasonable speed and similar quallty. up to a maxlmum of 30 days. We will also pay up to $500 for reasonable and necessary expenses incurred by you to remove and replace your materials and equipment from the covered "auto". If 'loss" results from the total theft of a c0vered"auto" of the private passenger type, we will pay under ths coverase onlv that amount of your rental reimbursement expenses which is not already provided under - paragraph 4. Coverage Extension 8. Lease Gap Coverage If a long-term leased "auto' IS a covered 'auto" and the lessor 1s named as an Add~tlonal Insured - Lessor In the event of a total loss, we will pay your additional legal obligation to the lessor for any difference between the actual cash value of the 'auto" at the tlme of the loss and the outstanding balance" of the lease "Outstanding balance" means the amount you owe on the lease at the time of loss less any amounts representing taxes: overdue payments: penalties, interest or charges resulting from overdue payments. additional mileage charges: excess wear and tear charges: and lease termlnatlon fees. 8. EXCLUSIONS The following is added to Paragraph 3: The exclusion for "loss" caused by or resulting from mechanical or electr~cal breakdown does not apply to the acc~dental d~scharge of an a~rbag Paragraph 4 1s replaced wlth the followng 4 vVe w~ll not pay fur 'loss' to any of the following a. Tapes records, disks or other similar audic, vlsua! cr 'data e:ect:onic devices deslgned for use with acd!o, v!sual or data electronic equipmert. lnciudrs coiyrgb!cd riolerzvl of insurance Sew ces Officer. ljlc nlll? 513 peinllsaio;~ GECA 701 (09104) Page 2 of 3 i: Equipment designed or used for the detection or location of radar. c Any electronic equipment that receives or transmits audio, visual or data signals Exclusion 4.c. does not apply to. !I) Electronic equipment that receives or transmits audlo, visual or data signals, whether or not designed solely for the reproduction of sound, if the equipment IS permanently installed in the covered "auto" at the time Of the .loss" and such equipment is designed to be solely operated by use of the power from the ''auto's" electrical system. in or upon the covered "auto"; or (2) Any other electronic equipment that is: (ai Necessary for the normal operation of the covered "auto" or the nionitorlng of the covered "auto's" 0pera:ing system, or (b) An Integral pad of the same unit housing any sound reproducing equipment described in (1) above and permanently ~nstalled in the opening ofthe dash or console of the covered "autc" normally used by the nlanufacturer for installation of a radlo. D. DEDUCTIBLE The following is added- No deductible applies to glass damage if the glass is repaired rather than replaced SECTION IV. - BUSINESS AUTO CONDITIONS A. LOSS CONDITIONS Item 2.a. and b. are replaced wlth: 2. Duties In The Event of Accident, Claim, Suit, or Loss a You must promptly notify us. Your duty to promptly notify us 1s effective when any of your executive officers. partners, members, or legal representatives IS aware of the accident, claim. "suit". or loss. Knowledge of an accident. claim. "suit", or loss. by other employee(s) does not imply you also have such knowledge. b TO the extent possible, notice to us should include (1) How, when and where the accident or loss took place. (2) The names and addresses of any lnjured persons and witnesses, and (3) The nature and location of any injury or damage arising out of the accident or loss The following is added to 5 'We waive any right of recovery we may have against any additional Insured under Coverage A. 1. Who Is An Insured g., but only as respects loss arislng out of the operation, maintenance or use of a covered "auto' pursuant to the provisions of the "insured contract", written agreement, or permit. B. GENERAL CONDITIONS 9. is added. 9. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS Your unintentional failure to disclose any hazards existing at the eflective date of your policy will not prejudice the coverage afforded. However, we have the right to collect additional premium for any such hazard COMMON POLICY CONDITIONS 2.b. is replaced by the following b 63 days before the effective dare of cancellation 11 we cancel for any other reason rclbder :>pyrlg?led rnater a1 of lnsuraqce Services Offlces lnc wlfh its prmissaon GECA 701 (09104) Page 3 of 3 MARATHON CONSTRUCTION CORPORATION CONTRACTORS AND ENGINEERS STATE LICENSE NO. 411338 10108 RIVERFORD ROAD, LAKESIDE, CA 92040-2740 TEL (619) 276-4401 FAX (619) 276-0717 www.marathonconstruction.biz March 3, 2006 City of Carlsbad Public Works - Engineering 1635 Faraday Avenue Carlsbad, CA 92038-7314 Attention: David Hauser, Deputy City Engineer Project: Agua Hedionda Channel Emergency Dredging Project Project No. CIP 3338 Subject: Exhibit "A"- Description of Work Via US Mail and Facsimile (760-602-8562) Gentlemen: Marathon Construction Corporation is pleased to propose on the above referenced project. Please use this scoping letter as the Exhibit "A" referenced in your attached contract. Marathon proposes to perform this dredging project on a time and materials basis with the following equipment and labor at the following rates: Description Cat 325 Excavator Volvo A35 Truck ASV Track Loader Cat 140H Motorgrader Cat D6 LGP Swampdozer Chipper Full Time Superintendent Laborer Carpenter Group 8 Operator Straight Time Rate SI25.00/Hour $I25.00/Hour $125.00/Hour $125.00/Hour S125.00/Hour $50.00/Hour $125.00/Hour S45.00/Hour S50.00/Hour S65.00/Hour Overtime Rate SI50.00/Hour $I50.00/Hour $150.00/Hour 5150.00/Hour $150.00/Hour S 50.00/Hour $!25.00/Hour $ 65.00/Hour S 70.00/Hour S 85.00/Hour Double Time Rate $175.00/Hour $I75.00/Hour S175.00/Hour S175.00/Hour $!75.00/Hour $50.00/Hour $!25.00/Hour $ 85.00/Hour $ 90.00/Hour $105.00/Hour Equipment mobilization and demobilization will be at a rate of $400.00 per each piece of equipment (round trip). These rates are applicable only if Marathon Construction Corporation is permitted to take ownership of the dredge spoils and allowed to screen these spoils at the agreed screening/disposal site east of lhe entry drive to the project which Mr. Van Peski and Marathon discussed at our site meeting on 13 City of Carlsbad Exhibit "A"-Agua Hedionda Channel Emergency Dredging Project Page 2 of 2 March 1. 2006. Marathon also reserves the discretion of determining which material will be removed from the site and what will be left in the disposal/screening area. Listed rales and time and material work are limited to the excavation, trucking and disposal of the material at the agreed upon screening/disposal site and include equipment, labor and fuel, oil and grease. No costs for the screening, processing, and removal of the material from the screening/disposal area will be charged to the City ol Carlsbad. We anticipate having the screening and removal of the dredged material completed within one week after the completion of the excavation. Our proposal excludes bond costs, damages to pavement, curbs, drives due to equipment use, inspection and testing, permits, surveys, liquidated damages and engineering costs. There is no stipulated contract price or contract duration for the project. Marathon anticipates with the current scope of not exceeding $250,000.00 costs for the project. All work will be done on a time and material basis with a daily force account approved and signed by a City of Carlsbad inspector or person qualified and signatory to represent the City of Carlsbad daily. Marathon anticipates the current scope of work to be completed within three weeks, although there are no time constraints in the contract. Marathon will provide a full time superintendent on the project during all hours of work. All costs at the rates referenced above will be marked up 10% per your contract. Any additional subcontract work and time and material work not referenced in the original scope of work will additionally be marked up 10%. Clearing and grubbing downstream of the El Camino Real bridge is currently not included in our scope. We anticipate commencing work on Monday, March 6, 2006 and working from 7AM to 3:30PM unless directed otherwise. Should you have any questions regarding this proposal, please feel free to contact me at 619-276-4401. Best regards, MARATHON CONSTRUCTION Michael V. FufbYTPresident CC: Joe Ellis and Jim Furby. Marathon Construction Glen Van Peski. P.E.