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HomeMy WebLinkAboutAgreement - 17 Mile Construction Services, Inc. - Signed: 2026-04-21City of Gilroy Agreement/Contract Tracking Today’s Date: April 21, 2026 Your Name: Yeni Martinez Contract Type: Services over $5k - Contractor - NO ENG OR DESIGN Phone Number: 408-846-0221 Contract Effective Date: (Date contract goes into effect) 5/1/2026 Contract Expiration Date: 6/30/2026 Contractor / Consultant Name: (if an individual’s name, format as last name, first name) 17 Mile Construction Services, Inc. Contract Subject: (no more than 100 characters) Tenant improvements at 641 Old Gilroy St Contract Amount: (Total Amount of contract. If no amount, leave blank) $198,900.00 By submitting this form, I confirm this information is complete: ➢ Date of Contract ➢ Contractor/Consultant name and complete address ➢ Terms of the agreement (start date, completion date or “until project completion”, cap of compensation to be paid) ➢ Scope of Services, Terms of Payment, Milestone Schedule and exhibit(s) attached ➢ Taxpayer ID or Social Security # and Contractors License # if applicable ➢ Contractor/Consultant signer’s name and title ➢ City Administrator or Department Head Name, City Clerk (Attest), City Attorney (Approved as to Form) Routing Steps for Electronic Signature Department Head – Karl Bjarke Risk Manager – LeeAnn McPhillips City Attorney Approval As to Form – Andy Faber City Administrator (if needed) – Matt Morley City Clerk Attestation – Kim Mancera Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 TYPE OF PROCURMENT DOLLAR THRESHOLD / SIGNING AUTHORITY STAFF LEVEL DEPARTMENT HEAD CITY ADMINISTRATOR COUNCIL APPROVAL $0-$999.99 $1,000-$49,999.99 $50,000-$99,999.99 $100,000-Above EQUIPMENT /SUPPLIES/ MATERIALS Furniture, hoses, parts, pipe manholes, office supplies, fuel, tools, PPE items, etc… • Vendor selection at discretion of staff Payment Method Purchase Card or Payment Request (if vendor does not accept credit cards) • Informal bid/quotation – 3 quotes (verbal or written) • Purchasing Summary form w/ Purchasing Approval • Purchase Requisition Payment Method Purchase Order* • Informal bid/quotation – 3 written quotes • Purchasing Summary form w/ City Administrator Approval • Purchase Requisition Payment Method Purchase Order • Formal Bid • Advertisement • Council Approval • Purchase Requisition signed by City Administrator Payment Method Purchase Order GENERAL SERVICES Janitorial, landscape maintenance, equipment repair, installation, graffiti abatement, service inspections, uniform cleaning, etc… • Vendor selection at discretion of staff • May require insurance documents depending on scope/ nature of work Payment Method Purchase Card (if incorporated) Signed Payment Request (if sole proprietor or partner) • Informal bid/quotation – 3 quotes (verbal or written) • Purchasing Summary form w/ Department Head Approval • Standard Agreement • Purchase Requisition Payment Method Purchase Order* • Informal Bid/RFP quotation – 3 written quotes • Purchasing Summary form w/ City Administrator Approval • Standard Agreement • Purchase Requisition Payment Method Purchase Order • Formal Bid/RFP/RFQ • Advertisement • Council Approval • Standard Agreement • Purchase Requisition Payment Method Purchase Order PROFESSIONAL SERVICES Consultants, architects, designers, auditors, etc... • Vendor selection at the discretion of staff • Purchase Summary Form w/ Purchasing Approval • Standard Agreement signed by Department Head • Purchase Requisition Payment Method Purchase Order • RFP/RFQ to at least 3 consultants • Purchase Summary Form w/ Department Head Approval • Standard Agreement • Purchase Requisition Payment Method Purchase Order • RFP/RFQ to a list of consultants • Evaluation Spreadsheet w/ City Administrator Approval • Standard Agreement • Purchase Requisition Payment Method Purchase Order • Formal RFP/RFQ • Advertisement • Council Approval • Standard Agreement signed by City Administrator • Purchase Requisition Payment Method Purchase Order Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -1- 4835-2267-0361v1 LAC\04706083 AGREEMENT FOR SERVICES (For contracts over $5,000 – NON-DESIGN, NON-ENGINEERING TYPE CONTRACTOR) This AGREEMENT made this day of April, 2026, between: CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California and CONTRACTOR: 17 Mile Construction Services, Inc., having a principal place of business at 26600 Pancho Way, Carmel CA 93923. ARTICLE 1. TERM OF AGREEMENT This Agreement will become effective on May 1, 2026 and will continue in effect through July 31, 2026 unless terminated in accordance with the provisions of Article 7 of this Agreement. Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial ARTICLE 2. INDEPENDENT CONTRACTOR STATUS It is the express intention of the parties that CONTRACTOR is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties acknowledge that CONTRACTOR is not an employee for state or federal tax purposes. CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONTRACTOR shall retain the right to perform services for others during the term of this Agreement. ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR A. Specific Services CONTRACTOR agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”). B. Method of Performing Services CONTRACTOR shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONTRACTOR’S services. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -2- 4835-2267-0361v1 LAC\04706083 C. Employment of Assistants CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the performance of those services. CONTRACTOR assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding. D. Place of Work CONTRACTOR shall perform the services required by this Agreement at 641 Old Gilroy St Gilroy California and at such times as CONTRACTOR shall determine is necessary to properly and timely perform CONTRACTOR’S services. ARTICLE 4. COMPENSATION A.Consideration Exhibit “D” (“Payment Schedule”). In no event B.Invoices C.Payment Exhibit “D” Exhibit “A” Section IV D.Expenses ’S costs of doing business. CITY shall not be Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -3- 4835-2267-0361v1 LAC\04706083 responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” ARTICLE 5. OBLIGATIONS OF CONTRACTOR A. Tools and Instrumentalities CONTRACTOR shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY. B. Workers’ Compensation CONTRACTOR agrees to provide workers’ compensation insurance for CONTRACTOR’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONTRACTOR’S employees. C. Indemnification of Liability, Duty to Defend As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONTRACTOR or CONTRACTOR’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. D. Insurance In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof. As a condition precedent to CITY’S obligations under this Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -4- 4835-2267-0361v1 LAC\04706083 E.Assignment Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion. F.State and Federal Taxes As CONTRACTOR is not CITY’S employee, CONTRACTOR shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that: •CITY will not withhold FICA (Social Security) from CONTRACTOR’S payments; •CITY will not make state or federal unemployment insurance contributions on CONTRACTOR’S behalf; •CITY will not withhold state or federal income tax from payment to CONTRACTOR; •CITY will not make disability insurance contributions on behalf of CONTRACTOR; •CITY will not obtain workers’ compensation insurance on behalf of CONTRACTOR. ARTICLE 6. OBLIGATIONS OF CITY A.Cooperation of City CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR’S duties under this Agreement. B.Assignment CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment shall not release CONTRACTOR from any of CONTRACTOR’S duties or obligations under this Agreement. ARTICLE 7. TERMINATION OF AGREEMENT A.Sale of CONTRACTOR’s Business/ Death of CONTRACTOR. CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -5- 4835-2267-0361v1 LAC\04706083 If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR. B.Termination by City for Default of CONTRACTOR Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONTRACTOR. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following: 1.CONTRACTOR’S failure to professionally and/or timely perform any of the services contemplated by this Agreement. 2.CONTRACTOR’S breach of any of its representations, warranties or covenants contained in this Agreement. CONTRACTOR shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONTRACTOR’S default in the performance of this Agreement or materi al breach by CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONTRACTOR for the performance of that task pursuant to this Agreement. C.Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONTRACTOR, at the CONTRACTOR’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONTRACTOR to CITY. D.Transition after Termination Upon termination, CONTRACTOR shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONTRACTOR shall cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONTRACTOR’s duties by any new CONTRACTOR hired by the CITY to complete such services. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -6- 4835-2267-0361v1 LAC\04706083 ARTICLE 8. GENERAL PROVISIONS A. Amendment & Modification No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto. B. Americans with Disabilities Act of 1990 Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONTRACTOR shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or representatives of either. C. Attorneys’ Fees If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled. D. Captions The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation. E. Compliance with Laws The CONTRACTOR shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -7- 4835-2267-0361v1 LAC\04706083 F.Conflict of Interest CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement. G.Entire Agreement This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONTRACTOR for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY. H.Governing Law and Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California. I.Notices Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph. Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing. J.Partial Invalidity If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. K.Time of the Essence All dates and times referred to in this Agreement are of the essence. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -8- 4835-2267-0361v1 LAC\04706083 L.Waiver CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Executed at Gilroy, California, on the date and year first above written. CONTRACTOR: CITY: 17 Mile Construction Services Inc. CITY OF GILROY By: By: Name: Matt Carley Name: Matt Morley Title: Managing Partner Title: City Administrator Social Security or Taxpayer Identification Number 85-1012823 Approved as to Form ATTEST: City Attorney City Clerk Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02 , Vice President Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 Andy Faber Kim Mancera -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “A” SPECIFIC PROVISIONS I. PROJECT MANAGER CONTRACTOR shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONTRACTOR agrees to assign Matt Carley, who will act in the capacity of Project Manager, and who will personally direct such Services. Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement. II. NOTICE TO PROCEED/COMPLETION OF SERVICE A. NOTICE TO PROCEED CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Izabela Cirloganu shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”. B. COMPLETION OF SERVICES When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY shall so inform CONTRACTOR within this two (2) week period. III. PROGRESS SCHEDULE The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”. IV. PAYMENT OF FEES AND DIRECT EXPENSES Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -2- 4835-2267-0361v1 LAC\04706083 Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY. CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct expenses. Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses. V. OTHER PROVISIONS A. STANDARD OF WORKMANSHIP CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes. B. RESPONSIBILITY OF CONTRACTOR CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent performance of any of the services furnished under this Agreement. C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three (3) years (from the date of final payment to CONTRACTOR), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -3- 4835-2267-0361v1 LAC\04706083 D. CONFIDENTIALITY OF MATERIAL All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY. E. NO PLEDGING OF CITY’S CREDIT. Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY. F. OWNERSHIP OF MATERIAL. All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain and use copies thereof subject to Section V.D of this Exhibit “A”. CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT. G. NO THIRD PARTY BENEFICIARY. This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 -4- 4835-2267-0361v1 LAC\04706083 H. NOTICES. Notices are to be sent as follows: CITY: Izabela Cirloganu City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 CONTRACTOR: Matt Carley 17 Mile Construction Services, Inc. 26600 Pancho Way Carmel, CA 93923 I. FEDERAL FUNDING REQUIREMENTS. If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply. If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply. 1. DBE Program CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs. 2. Cost Principles Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items. 3. Covenant against Contingent Fees The CONTRACTOR warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 4835-2267-0361v1 LAC\04706083 -5- J.PREVAILING WAGE CONTRACTOR agrees and acknowledges that it is its obligation to determine whether, and to what extent, any work performed is or any workers employed relative to any construction to be performed under this Agreement are subject to any Codes, Ordinances, Resolutions, Rules and other Regulations and established policies of CITY and the laws of the State of California and the United States, including, without limitation, the California Labor Code and Public Contract Code relating to public contracting and prevailing wage requirements ("Prevailing Wage Laws ). To the extent Prevailing Wage Laws apply to work performed or workers employed for the purpose of performing work under this Agreement, CONTRACTOR shall fully comply with and ensure that all workers and/or subcontractors are informed of and comply with all Prevailing Wage Laws and specifically any applicable requirement of California Labor Code Sections 1720 et seq. and 1770 et seq. and the regulations thereunder, which require the payment of prevailing wage rates based on labor classification, as determined by the State of California, and the performance of other requirements on certain "public works" or "maintenance" projects. It is the duty of CONTRACTOR to post a copy of applicable prevailing wages at the job site. Prevailing wage information may be obtained at www.dir.ca.gov. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 4835-2267-0361v1 LAC\04706083 -1- EXHIBIT “B” Scope of Work for Tenant Improvement at 641 Old Gilroy St. The City of Gilroy Utilities Department is undertaking a tenant improvement project at the property located at 641 Old Gilroy Street to renovate and prepare two adjacent buildings for office use. The project will not structurally alter any of the existing buildings; instead, it will repair and enhance the current layout to better accommodate the daily administrative and operational activities for Utilities staff. The property consists of two adjacent buildings. The front building, which faces Old Gilroy Street, will be renovated and configured to serve as office space for the City’s Water Section team. The building is approximately 1,664 sf. The second building, adjacent to the front one, is a 7,000 sf metal warehouse that includes approximately 2,000 sf of office space. This area will be improved to accommodate the City’s Wastewater Section team. A. Water Section Office Area The Water Section office area will include the following improvements: framing and drywall repair to the exposed areas, updated flooring, patching and painting of the entire space, recessed light installation. The following are specific scope items: 1)Provide wall and floor framing where the drywall and flooring are currently exposed (area next to the entrance, area next to the second door) 2)Remove one door and its frame, then patch and finish the drywall so it matches the existing interior wall texture. 3)Provide drywall repair where needed. 4)Create the same finish texture for the ceiling and walls. 5)Prime all surfaces. Paint should be two coats with the color and sheen provided by the Contract Manager. Walls and Ceiling will be painted one color. a)The paint brand should be Dunne Edwards or Sherwin Williams, as approved by the Contract Manager. 6)Prime and paint all interior doors and windows sills. Color and sheen choices will be provided by the Contract Manager. 7)Furnish and install 60 4” LED Downlight with Selectable CCT Can Lights. Install dimmers; one per room. a)If the number of lights need to be reduced, details on the lighting plan should be discussed with the Contract Manager. 8)Furnish and install emergency ballasts (for night lighting). 9)Install commercial vinyl flooring per the specs provided by the City. a)Commercial sheet vinyl Visionary Collection by Mohawk or commercial grade vinyl plank. Colors choices will be selected by the Contract Manager. b)Finish with 4” baseboard in all rooms. Color choice will be selected by the Contract Manager. 10)Install a new sink, all appurtenant plumbing, laminate kitchen counter, kitchen fronts, and backsplash. Items will be provided by the City. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 4835-2267-0361v1 LAC\04706083 -2- B.Wastewater Section Office Area The Wastewater Section office area will include improvements such as framing and drywall repair, install flooring, patching, painting, minor plumbing area and recess cans installation. The following are specific scope items: 1)Provide and install sheetrock 8 ft in height in the locker room. Tape and finish at the top to transition to the existing wall area. Leave the beams of the ceiling exposed. Beams and the plywood ceiling will be primed and painted. 2)Polish and provide a concrete stain floor coating with rubber base only for the locker room. 3)Frame and infill two door openings and match the existing drywall texture. 4)Frame and install a new door and install one new building standard door, install frame and hardware. Hardware will be provided by the City. 5)Install commercial vinyl flooring per the specs provided by the City in 3 rooms (two offices and a conference room). Hallway, kitchen and bathroom are not included. a.Commercial sheet vinyl Visionary Collection by Mohawk or commercial plank vinyl. If the brand is changed, the decision must be approved by the Contract Manager. b.Install 4” baseboard in all rooms. 6)Provide water and sewer connections for the breakroom and sink. 7)Install the kitchen cabinets, counter, sink and backsplash. Remove the existing sink in the hangar area, by the entrance and install a new one. Items will be provided by the City. 8)Furnish and install 6 4-foot LED light fixtures and 1 standard switch for the locker area 9)Furnish and install 55 4-inch LED Downlights with selectable CCT Can Lights recessed light fixtures and dimmable switches. a.If the number of lights needs to be reduced, details on the lighting plan should be discussed with the Contract Manager. 10)Prime all surfaces (minus the two-bathrooms existing plastic baseboards which are in good condition). Paint should be two coats with the color and sheen provided by the Contract Manager. Walls and Ceiling will be painted one color. Missing ceiling tiles will be provided by the Contract Manager. a.The paint brand should be Dunne Edwards or Sherwin Williams, as approved by the Contract Manager. 11)Prime and paint all interior doors and windows sills. Color and sheen choices will be provided by the Contract Manager. C. Front Office ADA Ramp (ramp specs are attached to the Scope of Work) 1)Demolish the existing ramp and remove the concrete from the site. 2)Provide plan for new ramp and landing showing dimensions and slopes for City’s review and approval. 3) Construct new ramp and landing expansions, including handrails per approved plan. 4)Landing shall be 5’X5’ and the ramp shall be 4’ wide with a 6” curb 5)Remove and reconstruct the current step at the kitchen entry to ensure compliance with state requirements. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 4835-2267-0361v1 LAC\04706083 -3- Additional: 1)Provide all required progressive clean up and dump fees (this includes mopping all hard surface flooring, haul off all remaining waste and construction debris) 2)A permit with the City is required for the ADA ramp. Utilities Department will pay for the permit application fees; however, the drawings and the permit submittal are the contractor’s responsibility. 3)Some landscaping adjacent to the new concrete ramp will need to be removed. No repairs or re-planting is included. 4)A City inspector will visit the site and provide the notice to proceed before pouring the concrete for the ramp. Any additional fees for the inspection will be supported by the Utilities Department. Supplemental Conditions: A.The Contractor must provide an experienced, competent Superintendent who is responsible for effectively supervising all work in progress. In addition to supervision or work in progress, the Superintendent must be capable of instructing his subordinates in correct and proper installation techniques. B.The Contractor shall be solely and completely responsible for conditions of the jobsite, including safety of all persons and property during performance of the work. This requirement shall apply continuously and not be limited to normal working hours. Safety provisions shall conform to U.S. Department of Labor, the California Occupational Safety and Health Act (OSHA), and all other applicable Federal, State, County, and local laws, ordinances, codes, the requirements set forth below, and any regulations that may be detailed in other parts of these Contract Documents. Where any of these are in conflict, the more stringent requirement shall be followed. C.The Contractor is responsible for its and its subcontractor’s compliance with the provisions of Section 1776 of the Labor Code. D.Work Hours: Normal working hours shall be limited to eight (8) hours per day, typically between 7:00 a.m. or 8:00 a.m. and 4:00 p.m. or 5:00 p.m., depending on the start time, and forty (40) hours per week. No overtime is allowed. E.Upon contract award and prior to issuance of the Notice to Proceed, the Contractor shall furnish a Payment Bond in the amount of 100% of the total contract value. F.Contractor must be registered with the Department of Industrial Relationships (DIR). The City Facilities Manager will register the Project once the City Council approves the contract. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 4835-2267-0361v1 LAC\04706083 -1- EXHIBIT “C” MILESTONE SCHEDULE The project is scheduled to begin mobilization on May 1, 2026, with the City providing site access. The anticipated project completion date is July 31, 2026; however, this timeline is dependent on the issuance of the permit for the ADA ramp. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157 4835-2267-0361v1 LAC\04706083 -1- EXHIBIT “D” PAYMENT SCHEDULE The total contract amount is $198,900 (one hundred ninety-eight thousand nine hundred dollars). The Contractor shall submit invoices bi-weekly for work completed. The City will review and process each invoice and issue payment within two weeks of receipt, or sooner when feasible. Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02Docusign Envelope ID: 70B91AFA-7051-4758-AD49-63F397142157