Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_07-cv-00483/USCOURTS-caed-1_07-cv-00483-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

---

ROCKARD J. DELGADILLO, City 

Attorney RICHARD M. BROWN, 

General Counsel Water and Power

MARCIA HABER KAMINE, Assistant City 

Attorney (State Bar No. 084390) 111 North 

Hope Street, Suite 340 Los Angeles, 

California 90012-2607 (213) 367-4555; 

Fax: (213) 241-1400

Attorneys for Defendant, CITY OF LOS ANGELES

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA, FRESNO 

DIVISION

CASE NO. 1:07-CV-00483-OWW-SMS 

AMERICAN ASPHALT & GRADING COMPANY, 

a Nevada Corporation,

Plaintiff, STIPULATION TO TRANSFER VENUE

[28 USC §1406(a)l; and 

ORDER – Case Transferred to the 

vs. Central District of California

CITY OF LOS ANGELES, ACTING BY 

AND THROUGH THE LOS ANGELES 

DEPARTMENT OF WATER AND POWER; 

and DOES 1 through 100, inclusive,

Defendant.

PLAINTIFF, AMERICAN ASPHALT & GRADING COMPANY, a Nevada 

Corporation and DEFENDANT : CITY OF LOS ANGELES, ACTING BY AND 

THROUGH THE LOS ANGELES DEPARTMENT OF WATER AND POWER, 

hereby stipulate as follows:

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 1 of 24
1. That attached hereto is a true and correct copy of Part E, Division E1, General Conditions of the contract between Plaintiff, American Asphalt & 

Grading Company, a Nevada Corporation and Defendant, City of Los Angeles, 

acting by and through the Los Angeles Department of Water and Power, 

Paragraph 29 [page E-1-16] of which specifies venue in Los Angeles County; and

2. That, pursuant to the said venue selection clause in the contract between 

Plaintiff, American Asphalt & Grading Company, a Nevada Corporation and Defendant, 

City of Los Angeles, acting by and through the Los Angeles Department of Water and 

Power, the parties hereby stipulate that the proper venue is the United States District 

Court for the Central District of California located in Los Angeles County; and 

3. That the Defendant, City of Los Angeles, acting by and through the Los 

Angeles Department of Water and Power shall have 20 days from the lodging of the 

complaint with the United States District Court for the Central District of California within 

which to file its responsive pleadings. 

Dated: May 24, 2007 Plaintiff, American Asphalt & Grading Company

a Nevada Corporation

by /s/M. G. Blackston

Snell&Wilmer Leon F. 

Mead, II, Esq. Stephen T. 

Graham, Esq. Mathieu G. 

Blackston, Esq. 

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 2 of 24
Dated: May 25, 2007 Defendant, City of Los Angeles,

acting by and through the Los Angeles 

Department of Water and Power

by /s/ Marcia Haber Kamine

Rockard J. DelGadillo, City Attorney Richard M. 

Brown, General Counsel Water and Power 

Marcia Haber Kamine, Assistant City Attorney

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 3 of 24
Spec. 9910

PART _g_ - DIVTSIOH El 

GENERAL COHPITIOHS

1. Definitions: The following words shall have the 

following meanings:

a. Board: The Board of Water and Power 

Commissioners of the City of Los Angeles.

b. Department: The Department of Water and Power 

of the City of Los Angeles.

c. Chief Engineer: The General Manager, the Chief 

Engineer, or the Assistant General Managers.

d. Engineer: The General Manager of the

Department, or the General Manager's authorized representatives 

acting within the limits of the duties entrusted to them.

e. Directory of Supply Chain Management: The 

Director of Supply Chain Management, Director of Corporate 

Purchasing Services, or the Assistant Directors of Corporate 

Purchasing Services, of the Department.

t. Bidder: A person, firm, or corporation adopting 

and submitting a proposal in accordance with these 

specifications.

g. cpntragtor; The person, firm, or corporation to 

whom the contract is awarded.

h. Subcontractor; A person, firm, or corporation, 

other than the Contractor and employees thereof, who supplies 

labor or materials on a portion of the work, except- such 

materials or processes subject to the provisions specified in 

Article 6 of Division Bl. -_-

i. Material Supplier: An individual or company who 

manufactures-the material consumed on the work for improvement. 

The material shall be subject to the "or equal" provision of 

California law, as specified in Article 6 of Division Bl_.

j. Reference Spegifigatlgns; Those bulletins, 

standards, rules, methods of analysis or test, codes, and 

specifications of other agencies, engineering societies, or 

industrial associations referred to in these specifications. 

These refer to the latest edition, including amendments, 

published and in effect at the date of advertising these 

specifications, unless specifically referred to by edition, 

volume, or dateATTACHMENT

-

3'

Stipulation to Transfer Matter to the

United States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 4 of 24
DIVISION El

Spec. 9910 

GENERAL, CONDITIOHS

Required^ Approved, Etc, s The words

"directed" , "required" , "approved" , 'permitted" , "ordered" , 

"designated" , "prescribed" , "instructed" , 'acceptable" , 

•accepted", "satisfactory", or similar words shall refer to 

actions, expressions, and prerogatives o£ the Engineer, unless 

otherwise expressly stated.

2. Rights of Way: The site or right of way for the 

structure to be constructed will be provided by the Department. 

The Contractor shall make arrangements, pay for, and assume all 

responsibility for acquiring, using, and disposing of additional 

work areas and facilities required. The Contractor shall 

indemnify and hold the Department harmless from all claims for 

damages caused by such actions .

3. WqrX^t o^ bg Done : The Contractor shall perform all 

work necessary to complete the contract in a satisfactory manner. 

The Contractor shall at all times schedule and employ sufficient 

forces, plant, materials, equipment, tools, labor, and 

incidentals to assure compliance with these specifications and 

shall progress and properly inspect the work to assure completion 

within the time specified. The obligation to deliver finished 

work in accordance with the contract shall be absolute and shall 

not be affected by the Engineer's approval of, or failure to 

prohibit, actions, means, or methods of the Contractor prior to 

final acceptance of the complete work.

4. Ordinances and Codes: The Contractor and the work 

shall comply with all laws, ordinances, rules, regulations, 

permits, and codes relating to the work, use of premises and 

highways, and safety of persons and property.

5. Scope < of : Drawings : The drawings, including

drawings furnished by the Contractor and reviewed and returned 

with no exceptions noted by the Engineer, shall determine the 

general character and details of the work. Such Review of 

drawings by the Engineer shall not relieve the Contractor of the 

obligation to deliver finished work in strict accordance with the 

contract. Parts of the wo'rk not detailed shall be constructed in 

accordance with best standard practice. Dimensions shown shall 

be followed in every case in preference to scale. Detail 

drawings shall take precedence over drawings to smaller scale. 

The Contractor shall acknowledge receipt of revised drawings and 

shall be responsible for all errors made due to the use of 

superseded drawings. Additional information required by the 

Contractor regarding details not shown on drawings furnished by 

the Department will be supplied in the form of additional 

sketches by the Engineer upon request by the Contractor. Such 

additional information shall be considered an interpretation of 

drawings and not extra work.

D. paugj. j,g j.t^tajMJL 

nyj,jii All materials and work shall 

imply with these specifications. All

El-2

ATTACHMENT

-4-

Stipulation to Transfer Matter to the United 

States District Court for the Central District

k.

6. Haj:erijilg_ Work :

co

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Spec. 9910 

DIVISIOlMEl _________________________________________GEMERAI, CONDITIONS

furnished shall be new and unused, but this requirement shall not 

preclude the use of recycled materials in the manufacturing 

processes- All work shall be done by qualified workers in a 

thorough manner. Materials or quality of work not definitely 

specified, but incidental to and necessary for the work, shall 

conform to the best commercial practice for the type of work in 

question.

1, Supervision and Workers; The Contractor, or an 

experienced superintendent authorized to act for the Contractor, 

shall be continually in charge of the work. The Contractor shall 

have a qualified and experienced supervisor in charge of each 

branch of the work. Only competent workers shall be employed. No 

worker, supervisor, or superintendent shall be continued on the 

work who, in the judgment of the Engineer, is negligent, 

incompetent, who acts with willful misconduct, or who fails or 

refuses to perform work properly and acceptably.

8. Contractor's Presence at Site: Before commencing

work, the Contractor shall designate, in writing, a 

representative who shall have complete authority to act for the 

Contractor. An alternate may also be designated- The 

representative or the alternate shall be present at the site 

whenever work is in progress or when weather conditions or other 

circumstances require measures to protect materials, work, 

persons, or property- Information given by the Engineer to the 

Contractor's superintendent, representative, or alternate shall 

be as binding as though given to the Contractor in person.

9. Work Schedules and Progress Reports; Before 

commencing work, the Contractor shall submit to the Engineer a 

written schedule for the entire contract work. If the Contractor 

intends to change the method or operations, or if the schedule 

fails to reflect the actual progress, the Contractor shall 

promptly submit a revised schedule before beginning revised 

operations. Each schedule shall show the dates for commencing 

and completing each phase of work. Each schedule shall include 

supporting data respecting.procurement and utilization of labor, 

equipment, material, and inspections, sufficient to show a 

comprehensive and detailed plan of operation for timely 

completion of_ each phase and of the entire contract work. The 

Contractor shall submit additional scheduling data or reports of 

progress as requested in writing by the Engineer.

10. Quality Assurance: The Contractor shall

thoroughly test and inspect materials, equipment, and work in 

order to assure that the requirements of the specifications have 

been met. The Contractor shall eliminate all materials, 

equipment, and work which are defective or which do not meet the 

requirements of the specifications before inspection, testing, or 

acceptance by the Engineer. Materials and equipment not so 

inspected and tested by the Contractor shall not be incorporated 

in the work. The Contractor shall submit materials, equipment,

ATTACHMENT

-5- 

El-3 Stipulation to Transfer Matter to the

United States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 6 of 24
Spec. 9910 

DIVISIOM El _________________________ gTOERMi CONDITIONS

or work for the Engineer's approval, acceptance, or inspection ••

only after such testing and inspection by the Contractor. PP

The Contractor shall keep the Engineer informed of the |»

progress of the work and of the times and places of manufacture ||

of materials and equipment. The Contractor shall give ample :

advance notice of inspections and tests. The Contractor shall ^^

furnish the Engineer with reasonable facilities and samples, with ••

such information as the Engineer may desire, and with proper _TM

authority for access to observe inspections and tests. If these j

specifications require specific inspections or tests to be made Mj

or observed by the Engineer or designated agent of the 1^

Department, the Contractor shall not proceed beyond the point of i

any such inspection or test until the same has been made and so ••

observed or until this requirement is waived by the Engineer in || 

writing with respect to such inspection or test.

All test procedures shall be subject to review and 

acceptance by the Engineer. All materials, equipment, and work

shall be subject to rigorous inspection by the Engineer, j

Inspection, testing, approval, or acceptance by the Engineer tt

shall not relieve the Contractor of the responsibility of IP

furnishing the best labor, materials, and equipment in accordance '!

with these specifications or of the responsibility for later gL

discovered flaws or defects. If any material, equipment, or |

portion of work does not meet the requirements of these s

specifications, the material, the equipment, or the portion of J

work, or any faulty portion, may be rejected. I

The provisions of this Article shall take precedence j 

over any conflicting inspection, testing, and quality assurance " •

provisions contained in Reference Specifications. IJ

11. Protection of Materials and Work: The Contractor gj 

shall provide and maintain storage facilities and employ such I 

measures as shall preserve the specified quality and fitness of . : 

materials to be used in the work- Stored materials shall be J 

accessible for inspection-. I

The Contractor shall be under an absolute obligation to

protect the finished and unfinished work against damage, loss, or •

injury until- final acceptance of the entire contract work. In R 

the event of damage, loss, or injury, the Contractor shall

promptly replace or repair such work or materials as determined •

by the Engineer. . I

12. Protection of Persona aod Property; The

Contractor shall take all reasonable precautions to protect I

persons and property of others from damage, loss, and injury I 

until final acceptance of the entire contract work. Such 

precautions shall include sufficient guards, lights, barricades, 

and enclosures at and about the site,

ATTACHMENT -6-

Stipulation to Transfer Matter to the States 

District Court for the Central District

i

|

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 7 of 24
Spec. 9910 

DIVISIONLEI _________________________________________ GENERA!. CONDITIONS

Within 3 working days after the occurrence of any such 

damage, loss, or injury, the Contractor shall make a full and 

complete report thereof in writing to the Engineer,

The provisions of this Article shall not be deemed to 

create any right of action 'in favor of third parties against the 

Contractor, any subcontractor. The City of Los Angeles, the 

Board, the Department, or any officer or any employee thereof.

13. Indemnification; The Contractor undertakes and 

agrees to indemnify and hold harmless the City of Los Angeles, 

the Department of Water and Power, the Board of Water and Power 

Commissioners of the City of Los Angeles, and all their officers 

and employees, and, at the option of the Department, to defend 

the Department and any and all of their Boards, officers, agents, 

representatives, employees, assigns, and successors in interest 

from and against all suits and causes of action, claims, charges, 

damages, demands, judgements, civil fines and penalties, or 

losses of any kind or nature whatsoever, for death, bodily 

injury, or personal injury to any person, including the 

Contractor's employees and agents, or damage or destruction to 

any property, including loss of use, of either party hereto, or 

third persons in any manner arising by .reason of the negligent 

acts, errors, omissions, or willful misconduct incident to the 

performance of this contract on the part of the Contractor or the 

Contractor's officers, agents, employees, or subcontractors, 

except for the active negligence or willful misconduct of the 

Department, its Board, officers, agents, representatives, or 

employees - 

14. Time is of the Essence jug EjgteBsiQnaof. "Tjjtae:

Time is of the essence of the contract. All work shall be 

completed within the times and by the dates specified. Time 

shall not be extended except as provided in this Article.

If the Contractor makes a timely written -request in 

accordance with this Article, the time for performance will be 

extended by the Engineer for a period of time equivalent to any 

delay of the whole work which is (1) authorized in writing by the 

Board or the Director of Supply Chain Management acting through the 

Chief Engineer, or (2) caused solely by the Department, or (3) due 

to unforeseeable causes (such as war, strikes, natural disasters, or 

abnormal amounts of adverse weather), and-which delay is beyond the 

control and without the fault or negligence of the Contractor and 

subcontractors.

The Contractor shall promptly notify the Engineer in 

writing at both the beginning and ending of any delay, of its 

cause, its effect on the whole work, and the extension of time 

claimed. Failure of the Contractor to provide such written 

notices and to show such facts shall constitute conclusive 

evidence that no excusable delay has occurred and that no 

extension of time is required.

ATTACHMENT

-7- 

El- 5 Stipulation to Transfer Matter to the

United States District Court for the Central District 

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 8 of 24
DIVISION Kl

9910 

GENERAL COHDITIOHS

The Engineer will ascertain the facts and the extent of 

the delay and will extend the time for performance when the 

Engineer's findings of fact justify such extension. The 

Engineer's determination shall be final and conclusive.

If, as a result of delay caused solely by the

Department, the Contractor sustains a loss which could not have 

been reasonably avoided, the Contractor will be paid such amount 

as the Chief Engineer finds to be fair and reasonable 

compensation for such part of the Contractor's actual loss as the 

Chief Engineer finds to have been unavoidable and caused solely 

by the Department. Claims for any such loss shall be made and 

determined in accordance with Article 19 of this Division- The 

Contractor shall provide the Chief Engineer with all records 

regarding the handling of forces, equipment, and plant and 

regarding the costs incurred. The findings of the Chief Engineer 

shall be final and conclusive.

The requirements of this Article shall be in addition 

to, and shall not 'be construed as waiving, claims provisions o£ 

the Los Angeles City Charter and of the Government Code of the 

State of California- The Department will be responsible for 

extensions of time as herein provided, but will not otherwise be 

'responsible in any manner or to any extent for compensation in 

addition to the contract price or for damages directly or 

indirectly suffered by the Contractor because of delay.

15, Changes at Request of Contractor: Changes which 

are legally permissible may be made to facilitate the work of the 

Contractor. Such changes may only be made without additional 

cost to the Department and without extension of time. Permission 

for such changes shall be requested in writing by the Contractor 

to the Engineer, whose decision will be in writing and will be 

final.

16. Requests for Substitution of Equivalent Materials

or Equipment; If any material or equipment is offered as the 

equivalent to that specified, the Contractor shall submit to the 

Engineer for approval or acceptance a written request for 

substitution not more than 35 calendar days after date of award 

of contract.- The request shall contain name of the manufacturer, 

brand, catalog number, catalog or relevant portions thereof, and 

other information sufficient to show that such material or 

equipment is equivalent to that specified. If requested by the 

Engineer, the Contractor shall, at no cost to the Department, 

provide test reports of such equivalent material or equipment as 

to its quality, strength, durability, design, efficiency, finish, 

service, or chemical and physical characteristics- Only 

equivalent materials or equipment, approved in writing by the 

Engineer, may be substituted for specified materials or 

equipment.

El-6

ATTACHMENT

-8-

Stipulation to Transfer Matter to the United 

States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 9 of 24
>ec. 9910 

DIVTSIOMEl__________________________________________GENERAL^ -OHDITIONS

Substitutions for material or equipment having a Los 

Angeles Research Report will require that the substitute material 

or equipment have an active Los Angeles Research Report and that 

the Contractor shall obtain approval from the Los Angeles City 

Department of Building and Safety. Evidence of the City's approval 

shall be furnished to the Engineer prior to the Department's 

approval or acceptance of the substituted material or equipment.

All costs incurred by the Department arising from the 

Contractor's requests for substituted or equivalent materials or 

equipment, including, but not limited to, those arising from 

additional engineering or adaptation of other parts of the design, 

shall be borne by the Contractor.

17. Authority of the Engineer; The Engineer will give 

the orders and directions as provided in the specifications and 

will determine, within the limitations of these specifications, the 

amount, quality, acceptability, and fitness of the various kinds of 

work and materials to be paid for.

Should any discrepancy appear or any misunderstanding 

arise as to the import of anything contained in these 

specifications or drawings, the matter shall be immediately 

referred to the Engineer, who will decide the matter in accordance 

with the true intent and meaning.

If the Contractor at any time fails to maintain adequate 

progress, or to schedule or employ sufficient and adequate work 

forces, plant, materials, tools, and methods, the Engineer may 

notify the Contractor of the deficiency, and the Contractor shall 

increase the progress of the work and modify procedures and 

activities to meet the approval of the Engineer. Such approval shall 

not relieve the Contractor of the obligation to comply with these 

specifications and to complete the work within the time specified 

and at the contract price.

If the Contractor, at any time fails to comply, with these 

specifications in any"way, the Engineer shall have the right to 

order all work or a portion of the work stopped at a time specified 

by the order. Such Stop Work Order shall be in writing and shall 

allow the Contractor 3 working days in which to comply with the 

demands of the order. The work to which, a Stop Work Order is 

directed shall be corrected to the entire satisfaction of the 

Engineer. Any such order shall not relieve the Contractor of the 

obligation to complete the entire work within the time specified and 

at the contract price.

ATTACHMENT 

El-7 _g_

Stipulation to Transfer Matter to the United 

States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 10 of 24
I

18. Extra Work, Changes by the Department, or Changed I

Conditions:

r

a. General: The Department reserves the right at |

anytime before final acceptance of the entire work to order the I

Contractor to perform extra work, furnish extra material or 

equipment, or to make changes altering, adding to, or deducting -

from the work, without invalidating the contract or bonds,. I

Changes shall not be binding upon either the Department or the *

Contractor unless made in writing in accordance with this -i

Article. I

Changes shall originate with the Engineer who will

transmit to the Contractor a written request for proposal,

I

covering the requested change, setting forth the work in detail, ( 

and including any required supplemental plans or specifications.

Upon receipt of such request, the Contractor shall 

promptly and in no case later than 30 calendar days after receipt, 

submit a proposal in writing to the Engineer offering to perform 

such extra work or change- The proposal shall be firm for a period 

of not less than 60 'calendar days from the date of receipt by the 

Engineer. The proposal,shall include a fully itemized statement of 

all costs and/or credits, a schedule analysis indicating all 

schedule activities affected by the change, and a request for any 

required extension of time caused by impacts to critical path 

activities. Failure of the Contractor to include a request for 

extension of time in the proposal shall constitute conclusive 

evidence that such extra work or revisions will entail no delay 

and that no extension of time will be required.

If the Contractor's proposal is accepted and 

authorized by the Board or by the Director of Supply Chain 

Management, a written Change Order will be issued by the Chief 

Engineer or by the Director of Supply Chain Management, stating 

that the extra work or change is authorized and granting any 

required adjustments of contract price and of time of completion.

The performance of extra work or changes pursuant to 

Change Order, shall be in accordance with the terms and conditions 

of these specifications and the performance and labor and material 

payment bonds. No extra work shall be performed, and no change 

shall be made, unless pursuant to such written Change Order, and no 

claim for an addition to the contract price shall be valid, unless 

so ordered.

b. Lump Sum Change Orders; Payment of all costs, 

including markups for all overheads and profit, for all lump sum 

Change Orders shall be in accordance with the following:

(1) Labor; The costs of labor shall be the 

Spec. 991Q

PIVTSIOK _E1 ________________________________________________ T_GfeJjERAI,_ CONDITIONS

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 11 of 24
actual costs for wages of workers performing the extra work at

ATTACHMENT 

El-8 „ ... -10-

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Spec. 9910 •

DIVISION El________________________________ GEcjERAIj CONDITIONS

the time the extra work is done, plus employer payments of payroll 

taxes, workers' compensation insurance, liability insurance, 

health and welfare, pension, vacation, apprenticeship funds, and 

other direct costs resulting from federal, state, or local laws, 

as well as assessments or benefits required by lawful collective 

bargaining agreements. Labor costs shall be in compliance with 

the Labor Laws article of Division Bl and the labor categories and 

costs submitted to the Engineer. Each labor classification shall 

be appropriate for the task to be performed. The use of a labor 

classification which would increase the extra work cost will not 

be permitted, unless the Contractor establishes the necessity for 

such additional costs. Labor costs for equipment operators and 

helpers shall be reported only when such costs are not included in 

the invoice for equipment rental. The labor costs for supervisors 

shall be apportioned to all of their assigned work, and only that 

applicable to extra work shall be paid. Nondirect labor costs, 

including superintendence, shall be considered part of the markup 

for overheads and profit.

(2) Material: The cost of materials reported

shall be' at the invoiced costs or lowest current wholesale prices 

at which such materials are locally available and delivered to the 

jobsite in the quantities involved, plus sales tax, freight and 

delivery. The Engineer reserves the right to approve materials 

and sources of supply, or to supply materials to the Contractor, 

if necessary, for the progress of the work. No markup shall be 

applied to any material provided by the Engineer.

(3) Equipment Rental: Regardless of ownership,

the rates to be used in determining equipment rental costs shall 

not exceed the rates published by the State of California, 

Department of Transportation, Division of Construction, at the 

time the work is performed. When machinery and equipment not so 

listed is required, an average rental rate, based on listed rates 

prevailing locally at equipment rental agencies, will be allowed. 

All equipment rental costs shall include the cost.of fuel, oil, 

lubrication, supplies, small tools, necessary attachments, repairs 

and maintenance of _any kind, depreciation,- storage, insurance, and 

all incidentals. Necessary loading and transportation costs for 

equipment used on the extra work shall be included. , All equipment 

shall be acceptable to the Engineer, shall be in good working 

condition, and shall be suitable for the purpose for which it is to 

be used. Manufacturer's ratings and manufacturer's approved 

modifications shall be used to classify equipment, and it shall be 

powered by a unit of not less than the minimum rating recommended 

in the manufacturer's printed instructions.

The reported rental time for equipment already at 

the jobsite shall be the duration of its use on the extra work, 

commencing at the time it is first put into actual operation on the 

extra work, plus the time required to move it from its previous 

site and back or to a closer site. If equipment is used

ATTACHMENT

El-9 -11-

Stipulation to Transfer Matter to the United 

States District Court for the Central District

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Spec. 9910 

DIVISION El ______ _ ^.ugRAL COBDITIOHS 1

intermittently and, when not in use, could be returned to its •

rental source at less expense than holding it at the jobsite, it | 

shall be returned, unless the Contractor elects to keep it at the

jobsite at no cost to the Department- •

(4) Small Tools; No payment will be made for ,

the use of equipment and tools which have a replacement value of I

$200.00 or less. Such costs shall be included in the markups I

Q*.|-=X1 i c*Ha^I i n Qiil-ia-r-t-i ^1 f> 1 PK ( f*\ nf t-h-i *3 Hi vi =H fin . B

established in Subarticle 18b(6) of this Division.

(5) Other Items: The Engineer may authorize

other items which may be required on the extra work. Such items 

shall include labor, services, material, and equipment which are 

different in nature from those required for the work and which 

• 

are of a type not ordinarily available from the Contractor or any I 

of the subcontractors. Detailed invoices covering all such items ; 

shall be submitted with the request for payment. '

(6) Iterkups for^ Additive X.UTO* Sum Change Orders; *

(a) Work by Contractor i The following I

percentages shall be added to the net amount of the Contractor's I 

costs and shall constitute the markup for all other expenses,

overheads, and profit: i

Labor 2 0

Materials 15

Equipment Rental 15 I

Other Items and Expenditures 15 '

(b) Wor-fc by Subcontractor: When all or any I

part of the extra work is performed by a subcontractor, the I

markup established in Subarticle 18b(6)(a) of this Division shall

be applied to the net amount of the subcontractor's actual cost

of each additive Change Order, to which a markup of 10 percent on

the first $2,000.00 of the subcontracted portion; erf the extra .

work and a markup of 5 percent on work added in excess of

$2,000.00 of the subcontracted portion of the extra work may be .

added by the Contractor. "Regardless of the number of

hierarchical tiers of subcontractors, the markup on

subcontractor's costs may only be applied once for each Change

Order. The subcontractor may also charge a markup for additional

bond and insurance costs in accordance with Subarticle -18b(8) of

this Division.

(7) Markups £or Credit Lump Sum Change Orders:

Markups for all other expenses, overheads, and profit on net 

deductive Change Orders shall be credited to the Department at 

the rate allowed for additive lump sum Change Orders in 

Subarticle 18b(6) of this Division.

1

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Spec. 9910 

DIVISION JS1 ______________________________GEMERAL COMDITIONS

through 18b(7) of this Division, the Contractor and all 

subcontractors will be compensated for the verifiable additional 

expenses of bonds and insurance due to additive Change Orders. No 

profit or overhead shall be allowed on this compensation for bond 

and insurance costs. The Contractor and all subcontractors shall 

credit the Department for the reduced expenses of bonds and 

insurance due to net deductive Change Orders,

c. Cost-Plug Change Orders; When a lump sum price 

for extra work cannot be established or agreed upon because of 

the nature of the work, or for any other reason, the-Engineer may 

issue a cost-plus Change Order. Such Change Order shall specify 

the maximum limit for the payment to be made and the time 

extension to be allowed for such work or changes. The Contractor 

shall perform such work and shall furnish the Department daily 

invoices and itemized bills only for the actual cost of labor, 

materials, equipment use, transportation, supplies, and other 

items in accordance with Subarticles 18b(l) through 18b(5), plus 

a charge not exceeding 15 percent of the actual cost of the 

foregoing items to cover all other expenses, overheads, and 

profit of the Contractor for such work or changes. An'additional 

5 percent markup will be allowed for work performed by 

subcontractors- Regardless of the, number of hierarchical tiers 

of subcontractors, the additional 5 percent markup on 

subcontractor costs may only be applied once for each Change 

Order. An additional markup for bonds and insurance will be 

allowed in accordance with Subarticle 18b(8). The total of such 

bills shall not exceed the specified maximum cost limit and time 

allowance of the Change Order.

d. Excluded Costs: Costs which shall be considered 

as part of the markups for all other expenses, overheads, and 

profit as allowed for in Subarticles 18b(6), 18b(7>, and 18c of 

this Division, and which shall not be paid separately in the 

Change Orders under this Contract include, but are not limited 

to, safety program expenses, cleanup expenses, home.office 

expenses, superintendence and other field office costs, interest 

costs of any type; claim preparation or filing costs; legal 

expenses; costs of preparing or reviewing proposed Change 

Orders; lost revenue; lost profits; lost income or earnings; 

rescheduling costs; costs of idled equipment when such equipment 

is not at the site or has not yet been employed on the work; lost 

earnings or interest on unpaid retainage; claims consulting 

costs; costs of corporate officers or staff visiting the site; 

any compensation due to the fluctuation of foreign currency 

conversion or exchange rates; or loss of other business.

e. Contractor's or Vendor'3 Invoices: Before

approving payments for extra work, the Engineer may request the 

Contractor's or vendor's invoices for material, equipment rental, 

and other expenditures. If the request for payment is not 

substantiated by invoices or other documentation, the Engineer

ATTACHMENT 

El-11 -13-

Stipulation to Transfer Matter to the 

United States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 15 of 24
I

may establish the cost of the item involved at the lowest

I

wholesale price which was current at the time of the report.

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!

f. Differing or Pnusual Site Conditions, or •

Hazardous waste? The Contractor shall promptly notify the

|

Engineer, in writing, upon the discovery and before disturbing

..

the following site conditions:

jj

(1) Subsurface or latent physical conditions 

differing materially from those represented in the contract.

H 

(2) Unknown physical conditions of an unusual

TM 

nature differing materially from those ordinarily encountered and 

generally recognized as inherent in the work required by the

• 

contract.

(3) Material that the Contractor reasonably

believes may be hazardous waste, as defined in Section 25117 of 

I

the Health and Safety Code, that is required to be removed to a

Class I, Class II, or Class III disposal site as required by law. r'

The Contractor's failure to give notice of the •

changed conditions promptly upon their discovery and before they '

are disturbed shall constitute a waiver of all claims in I

connection therewith. Upon receipt of such notice, the Engineer | 

will promptly investigate the conditions. If the Engineer

determines that the conditions materially differ, or involve •

hazardous waste, and cause a decrease or increase in the I 

Contractor's cost or in the time required for performance of any

part of the work, a Change Order will be issued- •

19. Protests, Disputes, and Claims; If the Contractor ' 

considers any demand of the Engineer to be outside of the ;

requirements'of the contract, or considers the amount of any j

payment, or any record, ruling, or other act or omission by the | 

Engineer to be unreasonable, or should any dispute; arise ,

respecting the true value of any work done or omitted, the 

Contractor shall promptly -deliver to the Chief Engineer a 

written statement of the protest arid of the amount of 

compensation claimed.

Spec. 9910

DIVISION El _________________________________ GEHERAI. ^ONDITIOMS

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 16 of 24
If'the Contractor submits a claim to the Engineer for 

additional compensation, the Engineer shall have the right, as 

a condition to considering the claim and as a basis for 

evaluation of the claim, and until the claim has been settled, 

to audit the Contractor's books to the extent they are relevant, 

as determined by the Engineer. This right shall include the 

right to examine the books, the records, the documents, and the 

other evidence and accounting procedures and practices, 

sufficient to discover and verify all direct and indirect costs 

of whatever nature claimed to have been incurred or anticipated 

to be incurred and for which the claim has been submitted. The 

right to audit shall include the right to inspect the 

Contractor's plants, or such thereof, as

ATTACHM

ENT El-12 „ -

14-

,, -. ., ""P"'3*

1011 to Transfer Matter to the 

.... .„ ________ 

United States DteWct Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 17 of 24
Spec. 9910 ,

DIVISION El ___________________________________ GENERAL CONDITIONS

may be or have been engaged in the performance of this contract. 

The Contractor further agrees that the right to audit encompasses 

all subcontracts and is binding upon subcontractors- The right 

to examine and inspect, as herein provided for, shall be 

exercisable through such representatives as the Engineer deems 

desirable during the Contractor's normal business hours at the 

office of the Contractor. The Contractor shall make available to 

the Engineer for auditing all relevant accounting records and 

documents and other financial data and upon request shall submit 

true copies of requested records to the Engineer.

On all claims, the Contractor shall certify that the 

Contractor believes the damages requested actually and accurately 

reflect the liability of the Department.

Upon review of the protest, claim, and evidence, the 

Chief Engineer Will promptly advise the Contractor in writing of 

the Chief Engineer's final decision which will be binding on all 

parties.

The requirements of this Article shall be in addition 

to, and shall not be construed as waiving, claims provisions of 

the Los Angeles City Charter and of the Government Code of the 

State of California. The Contractor is deemed to have waived and 

does waive all claims for extensions of time and for compensation 

in addition to the contract price except for protests and claims 

made and determined in accordance with this Article.

20. Suspension of Work: The Chief Engineer may at any 

time suspend the entire work by written notice to the Contractor, 

who shall thereupon discontinue all work except as necessary to 

prevent damage to property or to work already accomplished and 

except as ordered by the Engineer in writing. Work shall be 

resumed by the Contractor upon written notice from the Chief 

Engineer. The Engineer may, at any time, by notice in writing to 

the Contractor, suspend any part or portion of the "work for such 

period as may be required.

Extensions of time, compensation for delays, and

payment for work performed in accordance with such written orders 

of the Engineer will be made and determined in accordance with 

Articles 14 and 18 of this Division.

21. Termination of Contract; If through no fault of 

the Contractor or any subcontractor, the entire work shall be 

suspended by written order of the Chief Engineer for

90 consecutive days, the Contractor may, by written notice to the s 

Board, terminate the contract. The Department will have no claim for 

damages because of such termination.

The Board or the Director of Supply Chain Management 

may, by written notice to the Contractor, terminate the contract 

at its own discretion, or when conditions encountered during the

ATTACHMENT 

El-13 -15-

Stipulation to Transfer Hatter to the United 

States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 18 of 24
S&ec. 9910 

DIVISION El _____________________________ GEHERAL COHDITIOMS

work make it impracticable to proceed, or when the Department is

prevented from proceeding with the contract by unforeseeable

natural causes, by law, or by official action of a public

authority. Upon service of notice of such termination, the

Contractor shall discontinue all work except such work as the

Engineer may order in writing. The Contractor shall have no

claim for compensation or damages except for work actually ^^

performed prior to the time of the notice and for work performed Hi

as ordered in writing by the Engineer thereafter. Payment for """"

work performed in accordance with such written orders of the

Engineer shall be made and determined in accordance with

Article 18 of this Division. The Department may, and at the

request of the Contractor will, purchase the consumable supplies

that the Contractor has purchased for the work and which the

Engineer deems suitable to completion of the work. The

Contractor shall submit an itemized cost inventory and shall, on

request of the Engineer, provide access to the books and records ^

showing the true costs thereof. ' IB

22- Termination for Breach; If the Contractor i

violates any condition of the Contract, unreasonably delays >H

performance, fails to perform any covenant, or becomes insolvent, TM

the Chief Engineer may notify the Contractor of such breach and |

instruct the Contractor to discontinue all or any part of the M

work, or may notify the Contractor and surety that unless the PP 

failures are remedied forthwith the contract will terminate }

within 10 calendar days or at the time specified by such notice. ^

If such notice to discontinue is given to the TM 

Contractor, the Department may take charge of and complete the '

discontinued work by contract or otherwise. If requested by the ••

Engineer, the Contractor shall assign to the Department all Iff 

rights under subcontracts for completion of discontinued work. !

The Department may take possession of and use any of the ^

materials, plant, tools, equipment, supplies, and property

P| 

provided by the Contractor for the discontinued'work. Claims of 

the Contractor for payment of compensation shall be made and 

determined in accordance with Article 19 of this Division.

If notice is given to the surety, the surety may, I

during such 10 calendar days, give written notice to the •

Department of its election to assume control of the work and H 

perform under the contract. Upon giving such notice, the surety

shall succeed to all rights and obligations of the Contractor. •

Within 5 calendar days after the surety gives such notice, the II

surety shall substantially commence the performance of the work- A

The Department shall have no liability and the I

Contractor shall have no claim for damages for such TM 

discontinuance or termination. The provisions of this Article

shall be in addition to all other rights and remedies available •

to the Department under law. m

ATTACHMENT 

El- 14 -16-

Stipulation to Transfer Matter to the United 

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 19 of 24
tes District Court for the Central District '

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 20 of 24
Spec. 9910 

DIVISIOM El ________________________________ GEHfcKAI. COHDITIOHS

23. Right o£ Property in Materials: Nothing in this 

contract shall be considered as vesting in the Contractor any 

right of property in materials attached or affixed to the work or 

Che soil but all such materials shall, upon being so attached or 

affixed, be the property of the Department. This Article shall 

not relieve the Contractor of the obligation to protect materials 

and work or the obligation to protect persons and property of 

others.

24. Assignment of Contract Prohibited; The Contractor 

shall not assign or otherwise attempt to dispose of this 

contract, or of any of the moneys due or to become due 

thereunder, unless authorized by the prior written consent of the 

Chief Engineer. No right shall be asserted against the 

Department, in law or equity, by reason of any assignment or 

disposition unless so authorized.

If the Contractor, without such prior written consent, 

purports to assign or dispose of the contract or of any interest 

therein, the Department, at the Department's option, may terminate 

the contract, and the Department will be relieved and discharged 

from any and all liability and obligations to the Contractor, and 

to any assignee or transferee thereof.

25. Police and ganitary Regulationst All police, 

sanitary, and site regulations shall be fully and promptly 

carried out. An ample supply of water of appropriate quality 

shall be provided and maintained at all times. Suitable 

facilities shall be provided for the sanitary necessities of all 

persons employed on the work, unless such facilities are 

otherwise available. All persons connected with the work shall 

use the sanitary conveniences provided. The committing of 

nuisances shall be rigorously prohibited.

26. Pjitentg: The Contractor shall fully indemnify the 

Department against any and all liability whatsoever.by reason of 

any alleged infringement of any patent on any article, process, 

method, or application used in the construction of the work, or 

by reason of use by the Department of any article or material 

furnished under this contract.

27. ' Contractor's Address and Legal Service: The 

address given in the proposal shall be considered the legal 

address of the Contractor and shall be changed only by written 

notice to the Department- The Contractor shall supply an address 

to which certified mail can be delivered. The delivery of any 

communication to the Contractor's designated representative or 

alternate, to the Contractor personally, or to such address, or 

the depositing in the United States Mail, registered or certified 

with postage prepaid, addressed to the Contractor at such 

address, shall; constitute legal service thereof.

ATTACHMENT 

El-15 -17-

Stipulation to Transfer Matter to the United 

States District Court for the Central District

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 21 of 24
Spec. 9910

El ____________________________________jEMERAL CONDITIONS

28. Additional Surety: Should any surety be deemed 

unsatisfactory at any time by the Board, notice will be given to 

the Contractor and the Contractor shall forthwith furnish 

sureties satisfactory to the Board. No payment will be made to 

the Contractor after said notice until such sureties have been 

accepted by the Board. 

29. Governing I*aw; All matters relating to the 

validity, construction, interpretation, and enforcement of the 

bid, contract, and bonds shall be determined in accordance with 

the laws of the State of California with venue in Los Angeles 

County. 

30. Attorney Fees and Costs: If any dispute arises 

under this contract, the Department and Contractor agree that in 

any action to enforce the terms of this contract that the 

Department and Contractor shall be responsible for their 

respective attorney fees and costs.

ATTACHMENT 

El-16 -18-

Stipulation to Transfer Matter to the United 

States District Court for the Central District 

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Case 1:07-cv-00483-OWW -SMS Document 8 Filed 06/04/07 Page 22 of 24
ORDER

THE FOLLOWING ORDER IS ENTERED WITH RESPECT TO THE STIPULATION TO 

TRANSFER FOR IMPROPER VENUE

1. Stipulation to transfer for improper venue is approved. 

2. The instant matter is transferred forthwith to the United States District Court for the 

Central District [28 USC §1406(a)]. 

3. Defendant City of Los Angeles, acting by and through the Los Angeles Department 

of Water and Power shall have 20 days from the lodging of the complaint with the 

United States District Court for the Central District within which to file its responsive 

pleading. 

IT IS SO ORDERED.

Dated: May 31, 2007 /s/ Sandra M. Snyder 

Sandra M. Snyder, U.S. Magistrate 

Judge, United States District Court 

For the Eastern District, Fresno19

Stipulation to Transfer Matter to the United Stales District Court for the Central District

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