HomeMy WebLinkAbout03 Demo Contract for Redevelopment PropertiesUel 4 0 WMA1:
JULY 19, 2010
TITLE:
EXECUTIVE DIRECTOR
•
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Authorize the Executive Director and Agency Secretary to execute the attached construction
contract with Vizion's West Inc. in the amount of $216,770, subject to non -substantive changes
approved by the Executive Director and Agency General Counsel.
DISCUSSION
The Community Redevelopment Agency (Agency) has acquired properties in the Santa Ana
Boulevard area for the purpose of enhancing the entryway from the freeway into the downtown, as
well as creating new affordable housing opportunities. At this time, the Agency is prepared to
enter into a contract to demolish the structures on the following parcels: 501 E. Fifth Street and
507 N. Mortimer Street, 505 E. Fifth Street, 505 and 507 N. Minter Street, 601-603 E. Fifth Street,
615 E. Fifth Street, 621 E. Fifth Street, 508-510 N. Porter Street, 610-612 E. Fifth Street, 620 E.
Fifth Street, 712 E. Fifth Street, 720 E. Sixth Street, 714 E. Sixth Street, 710 E. Sixth Street, 617
E. Sixth Street, 613 E. Sixth Street, 609 E. Sixth Street, 611 N. Minter Street, 623 N. Garfield
Street, 801 Santa Ana Boulevard and 707 N. Garfield Street (Exhibit 1).
A Request for Proposals (RFP) was prepared and made available on the City's website on June
10, 2010. Availability of the document was made known by means of a notice published in the
Orange County Register on June 11 and June 12, 2010. It was also made known by means of an
email message sent to the seventeen qualified demolition contractors known to be interested in
working with the Agency.
With the exception of the newly acquired properties at 609, 613, 615 and 617 E. Sixth Street, all of
the properties were tested for lead and asbestos prior to the issuance of the RFP, and some of the
structures tested positive for these environmental hazards. The RFP requires the contractor to
properly remove and dispose of these materials. It also requires the contractor to test for the
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Demolition Contract for Agency Owned Properties
July 19, 2010
Page 2
presence of these environmental hazards in the newly acquired structures, and to properly remove
and dispose of any materials found. With the exception of the newly acquired properties, the
Santa Ana Historic Preservation Society (SAHPS) surveyed these buildings and identified
materials to be removed and preserved. In the event that SAHPS is unable to carry out the
salvage in a timely manner, contractors were asked to bid on the salvage and the cost is included
in the bid amount. Once SAHPS has surveyed the new acquisitions, any additional salvage will be
incorporated into the contract by means of a change order.
Responsive proposals were received from five qualified firms. All proposals received are
summarized in the table below:
Company Name
Total BidAmount
Vizion's West
$180,270.00
R.B. Holt
$252,893.60
Interior
$265,656.00
AMPCO
$392,400.00
J & G
$394,511.00
The proposal received from Vizion's West was the lowest responsive bid, and the proposed
contract (Exhibit 2) incorporates that bid. A contingency of $36,500 for a total contract amount of
$216,770 will ensure adequate funding to demolish the buildings, provide for necessary site work
and fund any necessary change orders arising from hazardous materials testing, additional historic
salvage requests, or from other unforeseen contingencies.
CEQA COMPLIANCE
The above-described actions of the Community Redevelopment Agency of the City of Santa Ana
are being taken to implement a redevelopment project. In accordance with the California
Environmental Quality Act, Environmental Impact Report No. 2006-02 was prepared for the
proposed redevelopment, including the demolition of the existing structures on properties owned
by the Community Redevelopment Agency of the City of Santa Ana in the Station District that are
the subject of the implementing actions. On June 7, 2010, the City Council adopted a resolution
certifying the Final Environmental Impact Report, ("Final EIR"). Both the City Council and Agency
Board adopted CEQA Findings of Fact and Statement of Overriding Considerations, and adopted
the Mitigation Monitoring and Reporting Program for the redevelopment project. All potential
significant environmental effects of the implementing actions, together with feasible mitigation
measures and alternatives to the proposed redevelopment, were considered in the certified Final
EIR. There have been no changes to the project which will result in new significant environmental
effects or a substantial increase in the severity of any environmental effects of the implementing
actions beyond the environmental effects fully evaluated in the Final EIR. The Community
Redevelopment Agency of the City of Santa Ana also has not received any new information of
substantial importance concerning the project nor any evidence of substantial changes in
circumstances affecting the project that would show the existence of any new significant
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Demolition Contract for Agency Owned Properties
July 19, 2010
Page 3
environmental effects or any substantial increase in the severity of environmental effects caused
by the implementing actions beyond the environmental effects fully considered in the Final EIR.
The Community Redevelopment Agency of the City of Santa Ana therefore finds that all potential
significant environmental effects of the described implementing actions, as well as all feasible
mitigation measures and alternatives to the implementing actions, have been fully analyzed in the
Final EIR and that no additional CEQA review is required for this project."
Funds for the demolition are available in the Low and Moderate Housing Set -Aside account (no.
50718830-66220).
Shelly 1-4j dry -Bayle
Housing Manager
Community Development Agency
CJN/SLB/TG/mlr
Exhibits: 1. Site Map
2. Proposed Contract
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
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ID
11TH ST.
I OT
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Exhibit 1 3-4
501
E. Fifth St. & 507 N. Mortimer St.
505
E. Fifth St.
®
505 & 507 N. Minter St. & 601-603 E. Fifth St.
0
615
E. Fifth St.
E. Sixth St.
621
E. Fifth St. & 508-510 N. Porter St.
N. Minter St.
610-612
E. Fifth St,
0
620
E. Fifth St.
A
712
E. Fifth St.
Q
720
E. Sixth St.
714
E. Sixth St.
Exhibit 1 3-4
710
E. Sixth St.
617
E. Sixth St.
®
613
E. Sixth St.
609
E. Sixth St.
®
611
N. Minter St.
ID
623
N. Garfield St.
®
801
E. Santa Ana Blvd. & 707 N. Garfield St.
Exhibit 1 3-4
DEMOLITION CONTRACT
THIS CONTRACT, made and entered into this 19th day of July, 2010, by and between Vizion's West,
Inc., a California Corporation, hereinafter referred to as "Contractor", and the Community Redevelopment
Agency of the City of Santa Ana, a public body, corporate and politic ("Agency").
RECITALS:
A. Agency desires to employ a general licensed building Contractor as defined in California
Business and Professions Code § 7057 to perform demolition work on property located at: 501 E. Fifth
Street, 507 N. Mortimer Street, 505 E. Fifth Street, 505-507 N. Minter Street, 601-603 E. Fifth Street,
615 E. Fifth Street, 621 E. Fifth Street, 508-510 N. Porter, 610-612 E. Fifth Street, 620 E. Fifth Street,
712 E. Fifth Street, 720 E. Sixth Street, 714 E. Sixth Street, 710 E. Sixth Street, 617 E. Sixth Street, 613
E. Sixth Street, 609 E. Sixth Street, 611 N. Minter Street, 623 N. Garfield, 801 E. Santa Ana Blvd., and
707 N. Garfield, in the City of Santa Ana (the "Property").
B. Contractor represents that it is qualified to perform such work as desired by Agency.
C. The Agency is entering this Agreement to assist a lower income housing project pursuant to
the Community Redevelopment Law of the State of California (the "Redevelopment Law"). The Executive
Director of the Agency is the representative of the Agency.
WHEREFORE, for and in consideration of the respective and mutual covenants and promises
hereinafter contained and made, and subject to all the terms and conditions hereof, the parties hereto agree
as follows:
1. SCOPE OF WORK
A. Project Specifications. Contractor agrees, at its sole cost and expense, to provide all supervision,
technical personnel, labor, materials, machinery, tools, equipment, fixtures and services for the work
required for demolition of the Property, in accordance with the attached bid and proposal, general
conditions, work write-ups, specifications, and drawings, which documents are incorporated herein by
reference as though fully set forth. (See Exhibit A "Project Specifications" attached hereto and incorporated
herein by reference).
Contractor shall perform all work in conformance with applicable laws and local requirements
whether or not covered by the specifications and drawings for the work.
Contractor shall pay all sales, consumer, use and other similar taxes required by law, and shall
procure and pay for all permits and licenses necessary for the execution and completion of the work and
labor to be performed hereunder.
B. Prevailing wage. All laborers and mechanics employed by the Contractor and any
subcontractor in the performance of the work under this Agreement shall be paid wages at rates not less
than the prevailing wage as provided in the statutes applicable to public works including without
limitation Sections 1770-1780 of the California Labor Code. This paragraph does not apply to contracts
which do not exceed $2,000.
EXHIBIT 2
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2. NOTICE TO PROCEED/NOTICES
The work shall begin no later than one (1) business day from and after Contractor receives written
Notice to Proceed from the Agency. Failure by Contractor without lawful excuse to substantially begin
work within one (1) day of the date of receipt of said written Notice to Proceed shall postpone the next
succeeding payment to the Contractor for that period of time equivalent to the time between when work was
to begin and when it did begin. Agency shall give said Notice to Proceed within one (1) business day from
and after the date of the signing of this Contract and receipt of performance bond and insurance. If the
written Notice to Proceed is not received by Contractor within said period, Contractor reserves the right to
withdraw his bid and proposal.
Notices shall be addressed to the Contractor at: Vizion's West, Inc
29226 Avenida Gaviota
Quail Valley, CA 92587
(951) 244-3050
Attn: Lloyd Earleywine, CEO/President
3. TIME FOR COMPLETION/ CONTRACT TERM
The term of this contract is from the date set forth above through October 4, 2010. All work shall be
satisfactorily completed within sixty eight (68) days from the date when said work is commenced.
4. CLEANUP
Contractor shall keep the premises clean and orderly during the course of the work and remove all
debris upon completion of the work. Materials and equipment that have been removed and replaced as part
of the work shall belong to Contractor.
5. CHARGES AND LIENS/ PERFORMANCE BOND
Contractor shall pay when due all valid charges for labor and material incurred by Contractor and
used in the construction pursuant to this Contract and shall also be responsible for keeping the job free of
mechanic's liens recorded by any of the persons enumerated in California Civil Code § 3110. If Contractor
fails to make any payments required pursuant to this paragraph, or if Contractor fails to keep said real
property free of mechanic's liens incurred by or under Contractor or its subcontractors, Agency may settle
said claims and Contractor shall notify the Agency in writing when a legitimate dispute arises between
Contractor and any and all persons enumerated in California Civil Code § 3110.
Contractor shall provide the Agency with a Payment Bond and Bond of Faithful Performance in the
standard amount based on the cost of the project. Such bonds shall be executed by both the Contractor and
the Surety Company to the satisfaction of Agency Legal Counsel. If Contractor fails or is unable to obtain
said bond, Agency may obtain and record said bond and deduct the costs from any payment due Contractor.
6. CORRECTION AND DEFECTS
Contractor shall correct any work that fails to conform to the requirements of this Contract or any
documents pursuant thereto, where said failure to conform appears during the progress of the work.
Contractor shall remedy any defects due to faulty materials, equipment or workmanship which appear
within a period of one (1) year from the date of substantial completion of the work or within such longer
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period of time as may be prescribed by law or by the terms of any applicable special guarantee required by
this Contract or any document pursuant thereto.
7. GUARANTEE
Contractor guarantees the work performed for a period of one (1) year from the date of final
acceptance of all the work required by this Contract, unless the work required repair or construction of a
roof, in which case Contractor guarantees the work for a period of five (5) years. Further, Contractor shall
fumish the Agency, all manufacturer's and supplier's written guarantees and warranties covering materials
and equipment furnished under this Contract. Contractor guarantees all materials to be as specified and all
work to be completed in a professional manner according to standard practice. Unless otherwise specified,
all materials shall be new. Contractor shall leave the work in a finished condition as determined by
acceptable building standards and to the satisfaction of the Agency.
8. INSPECTIONS
Contractor shall permit the City of Santa Ana, the Agency, or its designee(s), to examine and
inspect the rehabilitation work. In addition, Agency shall have the right to inspect any work performed
hereunder to ensure that the work is being and has been performed in accordance with the applicable
federal, state and/or local requirements and this Contract. Contractor agrees that all work found by such
inspections not to conform to the applicable requirements shall be corrected, and Agency shall have the
right to withhold payment to Contractor until it is so corrected.
9. UTILITIES AND COOPERATION
While this Agreement is in full force and effect, Agency shall permit Contractor to use existing
utilities such as light, heat, power and water to carry out and complete the work and shall cooperate with
Contractor to facilitate the performance of coverings and furniture, if and to the extent necessary.
10. OCCUPATION OF PREMISES
The premises are to be VACANT during the course of the work.
11. CHANGE ORDERS
Any changes or deviations from specifications or terms of this Contract shall be effective only upon
the prior written consent of the Contractor and the Agency. All change orders will specifically describe the
work and/or changes, the additional contract price and time for completion.
12. NOTICE OF COMPLETION
The Agency shall execute, acknowledge, and record in the manner provided by law, a notice of
completion of work required by this Contract within fifteen (15) calendar days after final inspection and
approval of said rehabilitation work as fully completed by the City.
13. CONTRACTOR'S FEE/ COMPENSATION
Owner agrees to pay Contractor for the full and complete performance of all of Contractor's
covenants and responsibilities hereunder in accordance with Exhibit A in the amount of $180,270.00.
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Payment due Contractor shall be paid within thirty (30) calendar days after the Agency receives
Contractor's invoice and satisfactory releases of liens or claims for liens by Contractor, subcontractors,
laborers, and material suppliers for completed work or installed materials. Ten percent (10%) of such
payment to Contractor shall be retained by Agency. The retention funds shall be released thirty-five (35)
calendar days after final inspection and acceptance of all work performed by Contractor and Contractor has
furnished the Agency, satisfactory releases of liens or claims for liens by Contractor, subcontractors,
laborers, and material suppliers (Notice of Completion filed and recorded with the County Recorder).
Payments may be withheld on account of defective work not remedied, claims filed, failure of
Contractor to make payments properly to subcontractors or for labor, materials, or equipment, damages by
another Contractor, or unsatisfactory performance of the work by Contractor, as determined by the Agency.
The project budget allows for additional funds, supported by adequately documented approved change
orders, in the amount of $36,500.00, to ensure project completion, with an overall total budget of
$216,770.00.
14. INDEMNIFICATION
Contractor shall indemnify and save harmless the City of Santa Ana, the Community
Redevelopment Agency, their officers and employees, against any and all damages to property and injuries
to or death of any person or persons, including employees or agents of the City of Santa Ana, or the
Redevelopment Agency of the City of Santa Ana, and shall defend, indemnify and save harmless Owner
and the City of Santa Ana and the Redevelopment Agency of the City of Santa Ana, their officers and
employees, from any and all claims, demands, suits, actions or proceedings of any kind or nature, including,
but not by way of limitation, worker's compensation claims of or by anyone whomsoever in any way
resulting from or arising out of the operations in connection herewith, including operations of
subcontractors and acts or omissions of employees or agents of Contractor or its subcontractors.
15. INSURANCE
With respect to performance of work under this Contract, Contractor shall maintain and shall
require its subcontractors, if any, to maintain insurance as described below:
(a) Workers' compensation insurance with statutory limits, and employer's liability insurance with
limits of not less than $1,000,000 per incident; and
(b) Contractor shall maintain commercial general liability insurance naming the Agency, its
officers, agents, volunteers, and employees as additional insured(s) and shall include, but not be limited
to protection against claims arising from bodily and personal injury, including death resulting therefrom
and damage to property, resulting from any act or occurrence arising out of Contractor's operations in
the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts
of insurance shall be not less than the following: single limit coverage applying to bodily and personal
injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per
occurrence. Contractor shall supply the Agency with a fully executed additional insured endorsement in
substantially the form attached hereto as Exhibit B upon execution of this Agreement and shall be
approved in form by the Agency Legal Counsel.
(c) Business automobile liability insurance, or equivalent form, with a combined single limit of
not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and
non -owned automobiles.
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(d) Contractor shall (a) furnish properly executed certificates of insurance to the Agency prior to
commencement of work under this Contract, which certificates shall clearly evidence all coverage required
above and provide that such insurance shall not be materially changed or terminated except on 30 days'
prior written notice to the Agency; and (b) maintain such insurance from the time work first commences
until completion of the work under this Contract; and (c) replace such certificate for policies expiring prior
to completion of work under this Contract.
16. AGENCY'S POWER TO TERMINATE
Should Contractor commit any of the acts specified in this paragraph, Agency may, by giving ten
(10) calendar days notice in writing thereof to Contractor, without prejudice to any other rights or remedies
given Agency by law or by this Contract, terminate the services of Contractor under this Contract, take
possession of all materials and appliances located on said real property, and complete the work required by
this Contract. Contractor shall be deemed to have committed an act specified in this paragraph if it shall:
(a) Be adjudged a bankrupt;
(b) Make a general assignment for the benefit of its creditors;
(c) Refuse or fail to supply enough properly skilled workers or proper materials to complete the
work required by this Contract within the time specified in this Contract;
(d) Fail to make prompt payment to subcontractors, laborers, or material men for labor
performed or materials furnished to the work required by this Contract;
(e) Persistently disregard any law or ordinance relating to the work required by this Contract
or the completion thereof; or
(f) Otherwise commit a substantial violation of any provision of this Contract.
17. RIGHTS ON TERMINATION BY AGENCY
Should Agency terminate the services of Contractor under this Contract and complete the work
pursuant without Contractor, Contractor shall not be entitled to receive any further payment under this
Contract until the work is fully completed. On completion of said work by Agency, if the unpaid balance of
the contract price exceeds the expenses incurred by Agency in completing the work, including any
compensation paid by Agency for managerial, administrative, or supervisorial services in completing the
work, such excess shall be promptly paid by Agency to Contractor to the extent required to compensate
Contractor for the work performed. If, however, on completion of the work by Agency, the expenses
incurred by Agency in completing said work, including any compensation by Agency for managerial,
administrative, or supervisorial services in completing said work, exceed the unpaid balance of the contract
price, such excess shall be promptly paid by Contractor to Agency.
18. CONTRACTOR'S POWER TO TERMINATE CONTRACT
Should Agency fail to pay to Contractor within thirty (30) calendar days after such receipt of proper
invoice, without just cause, any amount payable by Agency to Contractor, Contractor may, by giving fifteen
(15) calendar days written notice thereof to Agency, terminate its services under this Contract and stop
work on said Property.
19. LIQUIDATED DAMAGES
Contractor and Agency agree that it would either be impractical or extremely difficult to fix actual
damages in the event Contractor fails to complete the described work within the timeresc9 ed by this
p
Contract. hi connection therewith, Contractor agrees to pay Agency liquidated damages for each calendar
day beyond the date when completion is required hereinabove, excluding extensions as stated, below in the
following amount: One Hundred Dollars ($100.00) per calendar day. The amount of liquidated damages
shall be deducted from the Contractor's Retention Payment at project completion. If at any time the amount
of liquidated damages exceed the amount of Retention Payment, there shall not be any payment to the
Contractor until such time that the amount of payment due the Contractor exceeds the amount of liquidated
damages.
20. ASSIGNMENT
Contractor shall not assign any rights under this Contract except upon prior written authorization of
Agency. Any request for assignment must be addressed to the Agency and written consent of the Agency
must be obtained prior to Contractor assigning any rights under this Contract. Contractor shall not delegate
any authority or responsibility that would in any way purport to relieve him of any obligation imposed by
this Contract.
21. NONDISCRIMINATION, EQUAL OPPORTUNITY AND FAIR HOUSING
During the performance of this Contract, Contractor agrees to comply with all applicable
nondiscrimination, equal opportunity and fair housing and employment laws, and shall not discriminate in
hiring on the basis of race, color, creed, religion, sex, marital status, national origin or ancestry.
22. CONFLICT OF INTEREST
No person who is an employee, agent, consultant, officer or elected official or appointed official of
the Redevelopment Agency of the City of Santa Ana, or the City of Santa Ana, who exercises or has
exercised any functions or responsibilities with respect to the City's residential rehabilitation program, or
who is in a position to participate in a decision-making process or to gain inside information with regard to
these activities, may obtain a financial interest or benefit from this Contract, or have an interest in any
subcontract or agreement with respect hereto, either for themselves or those with whom they have family or
business ties, during their tenure or for one year thereafter.
23. PROFESSIONAL LICENSES
Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits,
approvals, waivers, and exemptions necessary for the provision of the services hereunder and required
by the laws and regulations of the United States, the State of California, the City of Santa Ana and all
other governmental agencies. Contractor shall notify the City immediately and in writing of its inability
to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be
cause for termination of this Agreement.
24. UNAVOIDABLE DELAYS AND DEFAULTS
The time of completion of this Contract shall be extended by the number of calendar days which
Contractor is prevented from performing work as a result of. inclement weather, acts of Agency or the City
not contemplated by this Contract, the unavailability of workers or materials due to strikes, accident, acts of
God, fire, unusual delays in transportation, unavoidable casualties, causes beyond Contractor's control, or
any cause which the Agency may determine justifies the delay. The Contractor shall not be entitled to an
extension in the number of calendar days for completion, unless, within five (5) days from the beginning of
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such delay, he notifies the Agency in writing of the causes of the delay, which causes must be acceptable to
the Agency.
25. JURISDICTION/VENUE
This Agreement and all questions relating to its validity, interpretation, performance, and
enforcement shall be government and construed in accordance with the laws of the State of California.
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties further agree that Orange
County, California, shall be the venue for any action or proceeding that may be brought or arise out of,
in connection with or by reason of this Agreement.
26. ATTORNEY'S FEES
Should any litigation be commenced between the parties to this Contract concerning the work which
is the subject of this Contract, any provision of this Contract, or the rights and obligations of either in
relation thereto, the party prevailing in the litigation shall be entitled, in addition to such other relief as may
be granted, to a reasonable sum as and for the party's attorney's fees in the litigation.
27. TIME OF ESSENCE
Time is of the essence in performance of this Contract.
28. GENDER AND NUMBER
As used herein, the masculine shall include the feminine and masculine, and the singular shall
include the plural.
29. EXCLUSIVITY OF CONTRACT
This Contract supersedes any and all other agreements, either oral or in writing, between the parties
hereto with respect to hiring of Contractor by Agency, and contains all the covenants and conditions
between the parties with respect to employment of Contractor by Agency, and contains all the covenants
and conditions between the parties with respect to such employment in any manner whatsoever. Each party
to this Contract, acknowledges that no representations, inducements, promises, or agreement, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied
herein, and that any other agreement or amendment to this Contract shall be effective only if executed in
writing and signed by Agency and Contractor.
30. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature hereinbelow has the power, authority
and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify Agency
fully, including reasonable costs and attorney's fees, for any injuries or damages to Agency in the event that
such authority or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the
body of this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Contract on the date and year
first above written.
ATTEST:
Maria D. Huizar
Secretary
APPROVED AS TO FORM:
JOSEPH W.FLETCHER
Agency General Counsel
By: Lisa E. Storck
Assistant Counsel
COMMUNITY
REDEVELOPMENT AGENCY
CITY OF SANTA ANA
Cynthia J. Nelson
Executive Director
CONTRACTOR
Vizion's West, Inc.
By: Lloyd Earleywine
Title: CEO/President
Tax ID# 34-1990894
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