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  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
  • Laser Industries, Inc. v. Town Of Oyster Bay, Town Of Oyster Bay Department Of Public Works, Town Board Of The Town Of Oyster Bay, Town Of Oyster Bay Department Of General Services, Richard Lenz As Commissioner Of Town Of Oyster Bay Department Of Public Works, Pratt Brothers, Inc.Special Proceedings - CPLR Article 78 document preview
						
                                

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FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 EXHIBIT C FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 225 Liberty Street 36th Floor New York, NY 10281 T: 212.483.9490 | F: 212.483.9129 MDMC-LAW.COM MICHAEL R. MORANO (973) 425-4174 MMORANO@MDMC-LAW.COM April 18, 2024 By E-Mail Town Of Oyster Bay, Department of Public Frank Scalera, Esq. Works Town Attorney ATTN: Commissioner Richard Lenz Town of Oyster Bay 150 Miller Place 54 Audrey Avenue Syosset, New York 11791 Oyster Bay, NY 11771 (516) 677-5124 fscalera@oysterbay-ny.gov rlenz@oysterbay-ny.gov Town of Oyster Bay, Department of General Services 74 Audrey Avenue Oyster Bay, NY 11771 ATTN: Purchasing Division (516) 624-6100 purchasing@oysterbay-ny.gov Re: Town of Oyster Bay – Department of Public Works Requirements Contract for General Reconstruction Throughout the Town of Oyster Bay (the “Project” or “Contract”) Contract No. HGR23-256R Bid No. PW022R-23 Bid Name: PW 22-23R-RE-BID-Req. Bidder: Laser Industries, Inc. (“Laser Industries”) Amount of Laser Industries’ Bid: $ 6,631,290.00 Bid Opening: February 14, 2024 Dear Mr. Lenz: We represent Laser Industries, Inc. (“Laser Industries”) in connection with the above project as put out for sealed bid by the Town of Oyster Bay Department of Public Works (“DPW”). Enclosed herewith is an Affidavit of John Gulino (“Gulino Aff.”), with exhibits thereto in connection with the referenced matter involving the Contract. We write pursuant to Section 9.3 of the Contract Documents, Specifications, Information for Bidders and Proposal, which states: McElroy, Deutsch, Mulvaney & Carpenter, LLP COLORADO · CONNECTICUT · DELAWARE · FLORIDA · MASSACHUSETTS · NEW JERSEY · NEW YORK · PENNSYLVANIA · RHODE ISLAND FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Privileged/Confidential April 18, 2024 Page 2 Prior to a final determination that the apparent lowest bidder is not responsible, the Town shall notify the party of the same, in writing, relaying the initial determination of non-responsibility. The apparent lowest bidder will have ten (10) calendar days to make an appeal, in writing, to the Commissioner. See Gulino Aff. at ¶ 7, Exh. A. As you may know, Laser Industries submitted its bid nearly two months ago to the Town of Oyster Bay and was the low bidder for the Project, submitting a bid for $6,631,290.00. See Gulino Aff. at ¶ 6. Since learning that it was the low bidder, Laser Industries did not receive any writing from or on behalf of the Town of Oyster Bay (the “Town”) concerning whether Laser Industries would be awarded the Contract. See Gulino Aff. at ¶ 8. On April 9, 2024, at the Town of Oyster Bay’ Town Board (the “Board”) Meeting (the “Town Hall Meeting”), the Board unanimously passed Resolution No. 297-2024: Resolution authorizing award of Construction Contract No. HGR23-256R, Requirements Contract for General Reconstruction throughout the Town of Oyster Bay. (M.D.3/26/24 #27 and 4/2/24 #24) See Gulino Aff. at ¶ 10-11, Exh. B. Although Laser Industries was the lowest bidder, the Contract was awarded to the second lowest bidder. Id. As you know, the Town is required to award the Project to the “lowest responsible bidder” or not award the Project to any of the bidders. Pursuant to Town Law § 122 and General Municipal Law § 103, all contracts for public work must be awarded to “the lowest responsible bidder.” The central purposes of New York’s competitive bidding statutes are the “(1) protection of the public fisc by obtaining the best work at the lowest possible price; and (2) prevention of favoritism, improvidence, fraud and corruption in the awarding of public contracts” (Matter of New York State Ch., Inc., Associated Gen. Contrs. of Am. v. New York State Thruway Auth., 88 N.Y.2d 56, 68, 643 N.Y.S.2d 480, 666 N.E.2d 185 [1996]). It is well settled that the bidding statutes are to be construed strictly in order to achieve those purposes (see Matter of Diamond Asphalt Corp. v. Sander, 92 N.Y.2d 244, 259, 678 N.Y.S.2d 567, 700 N.E.2d 1203 [1998]) and that rejection of the lowest bid carries with it the “inevitable implication of non-responsibility” for the rejected bidder (Matter of LaCorte Elec. Constr. & Maintenance v. County of 2 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Privileged/Confidential April 18, 2024 Page 3 Rensselaer, 80 N.Y.2d 232, 236, 590 N.Y.S.2d 26, 604 N.E.2d 88 [1992]). (AAA Carting and Rubbish Removal, Inc. v Town of Southeast, 17 NY3d 136 [2011]). In determining the responsibility of a bidder, an administrative agency or municipality should consider the bidder’s “skill, judgment and integrity” (Matter of DeFoe Corp. v. New York City Dept. of Transp., 87 N.Y.2d 754, 763, 642 N.Y.S.2d 588, 665 N.E.2d 158 [1996]) and “where good reason exists, the low bid may be disapproved” (Matter of Conduit & Found. Corp., 66 N.Y.2d at 148, 495 N.Y.S.2d 340, 485 N.E.2d 1005). (Id. at pp 61-62.) Additionally, it is well-settled that an administrative agency or municipality’s rejection of a lowest bid “carries with it the inevitable implication of nonresponsibility for the rejected bidder,” which has serious adverse effect on the bidder’s ability to bid and receive public works contracts in the future. Matter of AAA Carting and Rubbish Removal, Inc. v Town of Southeast, 17 NY3d 136, 143 (2011) (internal quotation marks omitted). After the Bid Opening, Laser Industries was never sent any formal written communications from the Town concerning the award of the contract, or Laser Industries’ responsibility as a bidder. See Gulino Aff. at ¶¶10, 15-16. In fact, the Town Hall Meeting, where the Board Passed Resolution No. 297-2024, was the first notice to Laser Industries relaying the determination that Laser Industries would not be awarded the Contract despite being the lowest bidder. See Gulino Aff. at ¶ 14. The Town did not, in writing explain to Laser industries why it is purportedly not a responsible low bidder (contrary to its obligations), and moreover, did not even provide Laser Industries any opportunity to be heard on the matter of its responsibility as a bidder. See Gulino Aff. at ¶ 16. The Town’s actions and inactions have denied Laser Industries a “ meaningful and timely opportunity to defend its name and reputation.” Matter of LaCorte Elec. Const. and Maintenance, Inc. v County of Rensselaer, 80 N.Y. 2d 232, 237-238 (1992); see also Matter of Horizon Roofing & Sheetmetal Inc. v City of Glens Falls, 205 AD2d 916, 916-17, (3d Dept 1994) (noting that “[w]hen a low bidder ... has its bid rejected with the inevitable implication of nonresponsibility ... safeguards of reasonable notice and timely opportunity to be heard become operative.’ Procedural safeguards are required because the low bidder’s commercial good name, reputation, honor or integrity is at stake.”). Laser Industries advises that it is willing to submit additional information regarding this matter, including a sworn statement. Laser Industries respectfully requests that the Town award the Project to Laser Industries. As discussed above, the only possible way that the Town can award the Project to the second lowest bidder and not Laser Industries is if the Town determines that Laser Industries is not the “lowest responsible bidder.” Such determination unfairly did not award Laser Industries the Project, and stated by the Court of Appeals in AAA Carting, supra, such a determination carries 3 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Privileged/Confidential April 18, 2024 Page 4 with it the “inevitable implication of non-responsibility” and would have devasting consequences to Laser Industries and its ability to bid and be awarded future public work. The determination to not award Laser Industries the Contract, and the foregoing explained circumstances have, among other things, deprived Laser Industries of its fundamental rights. The Town is in violation of its obligations and has failed to provide required notice. Further, there is no basis to find that Laser Industries is not the lowest responsible qualified bidder for the subject Project and Laser Industries is prepared, willing, and able to respond to any allegations that it is not responsible. This letter is sent subject to Laser Industries’ ongoing reservation of all rights and remedies. Please note that Laser Industries intends to initiate a lawsuit regarding this matter. We thank you for your attention to this matter and look forward to hearing from you. Sincerely, MCELROY, DEUTSCH, MULVANEY & CARPENTER, LLP /s/ Michael R. Morano Michael R. Morano 4 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Re: Town of Oyster - Department of Public Wor Ls Bay Requirements Contract for General Reconstructi1n Tl.roughout the Town of "Project" Oyster Bay (the or "Contract") Contract No. HGR23-256R Bid No. PW022R-23 Bid Name: PW 22-23R-RE-BID-Req. Industries' Bidder: Laser Industries, Inc. ("Laser ) Industries' Amount of Laser Bid: $ 6,631,290.00 Bid Opening: February 14, 2024 AFFIDAVIT OF JOHN GULINO I, JOHN GULINO, being duly sworn, hereby deposes and says: 1. I am the President and Officer of Laser Industries, Inc., ani am fully familiar with the facts of this matter. 2. I submit this Affidavit based upon my personal knowledge of the facts herein and the documents contained in my files. The documents annexed hereto are f rue and accurate copies of the original documents. 3. This Affidavit is in support of Laser Industries, Inc. s ("L iser Industries") appeal of the Town of Oyster Bay's (the "Town") award of the Requirements Contract for General Reconstruction Throughout the Town of Oyster Bay, Contract No. 3GR23-256R Bid No. "Project" PW022R-23 (the or "Contract"). 4. Prior to February 14, 2024, the Town solicited sealed bids m the Contract. 5. The Town set the bid opening date for February 14, 2024. 6. In advance of the bid opening, Laser Industries Inc subnitted its sealed bid for $6,631,290.00, which was the lowest bid. 7. Pursuant to Section 9.3 of the Contract Documents, S3ecifi:ations, Information for Bidders and Proposal (the "Contract Documents"), which states: Prior to a final determination that the apparent lowest bidcer is not responsible, the Town shall notify the party of the same, in writing, 1 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 relaying the initial determination of non-responsibility. The apparent lowest bidder will have ten (10) calendar dnys to make an appeal, in writing, to the Commissioner. A true and correct copy of the Contract Documents is attached hereto as Exhibit A. 8. Indeed, after learning it was the low bidder, Laser Indust ies did not receive any formal communications from the Town concerning whether it woukl be a warded the contract. 9. Contrary to the Contract Documents, the Town, p ior t3 a final determination regarding the lowest bidder, Laser Industries, failed to notify Laser Industries, in writing regarding its initial determination of no responsibility. Bay' 10. On April 9, 2024, at the Town of Oyster Town 30arc (the "Board") Meeting (the "Town Hall Meeting"), the Board unanimously passed Resolution No . 297-2024: Resolution authorizing award of Construction Contr act No. HGR23-256R, Requirements Contract for General Reconstruction throughout the Town of Oyster Bay. (M.D.3/26/24 f27 at d 4/2/24 #24) 11. A true and Correct copy of Resolution 297-2024 is attache-1 hereto as Exhibit B. 12. Resolution 297-2024 implies that the Town performe 1 a re iew of Laser Industries responsibleness in accordance with the Town's Procurement Policy and purportedly determined that Laser Industries, Inc. is not exhibiting responsible behavior. 13. Further, Resolution 237-2024 states that the Town disqual fled Laser Industries as the lowest bidder. 14. The Town Hall Meeting, where the Board passed R:solution No. 297-2024, was the first official written notice to Laser Industries relaying the determinati-m of non-responsibility as a bidder. 2 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 15. The Town has not given Laser Industries any official explanation of its Industries' determination as to Laser responsibility. 16. Importantly, the Town has not inquired of Laser Indt stries about its responsibility. Further, the Town has not given Laser Industries any opportunity to be heard regarding its responsibility as a bidder. 3 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 I, John Gulino, swear that the foregoing statements made by me a e true to the best of my knowledge and understanding. I am aware that if any of the foregoing statements are willfully false, I may be subject to punishment under the fullest extent of the aw. lino Sw rn to before me this _/_____ day of April, 2024 Notary Pu c TRACY A PAULSON of New York Notary Public, State No. 01PA6282342 Qualified in Suffolk County Commission Expires May 20, 20 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 EXHIBIT A FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW Contract No. HGR23-256R INFORMATION FOR BIDDERS 1. TIME AND PLACE FOR RECEIPT OF BIDS Sealed bids are received by the Superintendent of Purchasing of the Town of Oyster Bay in accordance with the notice to bidders. 2. CONTRACT DOCUMENTS The contract consists of the documents listed in Article I of the agreement. 3. CONTRACT INTERPRETATION In the event that clarification of contract provisions is needed by prospective bidder, said bidder shall, before bidding, make a written request for an interpretation thereon to the Engineer. This request must be received at least two (2) working days prior to the opening of the bids established in the Notice to Bidders. The interpretation will be issued in writing as an addendum to the contract and sent by registered mail or delivered to each prospective bidder recorded as having received a copy of the Contract Documents. The Addendum becomes a part of the contract upon such mailing or delivery and is binding on all prospective bidders. 4. CONDITIONS OF WORK Bidders are cautioned not to submit proposals until they have made themselves familiar with the proposed work and obtained all other appropriate information from appropriate sources as required under the circumstances. Bidders are presumed to have full knowledge of any and all conditions affecting the work and its performances. 5. PREPARATION OF BIDS 5.1 Submit each bid in accordance with and on the forms furnished without detaching the forms from the contract book. The bid must include complete costs and expenses of furnishing all materials, labor, and equipment necessary to complete the work in accordance with the plans of business of the bidder. The bidder shall complete the PROPOSAL and the PROPOSAL AFFIDAVIT. 5.2 In the event of: a. unit bid contract - complete all required blank spaces for bid prices using numerical values and written words. b. lump sum contract - complete all required blank spaces as indicated; filling in both written and numerical amounts. 5.3 Bids containing any omissions, erasures, alterations, additions, or irregularities may be subject to rejection. The bid must be signed, verified, and signature notarized. 6. PRESENTATION OF BIDS Deliver each bid in a sealed envelope addressed to "The Superintendent of Purchasing, Town of Oyster Bay, New York" and clearly designated the title and contract number or 5 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW Contract No. HGR23-256R numbers shown in the Notice to Bidders; include also the name and address of the bidder on the envelope. If the bid is forwarded by registered mail, enclose the sealed envelope in a second envelope addressed and sealed as specified above. 7. BID SECURITY 7.1 The certified check or bid bond for this Contract shall be in an amount of not less than 5% of the yearly limit of this contract. 7.2 The bid security of all but the three (3) lowest bidders will be returned or released within ten (10) calendar days after the opening of the bids. The bid security of the remaining two unsuccessful bidders will be returned or released within five (5) working days after execution of the contract. The bid security of the successful bidder will be retained until execution of the contract. Contractor shall execute all required documents and submit all required instruments within twenty (20) calendar days after notification of the award by the Town Clerk. 8. WITHDRAWAL OF BID After opening of bids, no bid can be withdrawn thereafter until the expiration of forty-five (45) calendar days. Any withdrawal must be made in writing to the Town and received prior to the actual award of the bid by the Town. 9. QUALIFICATION AND RESPONSIBILTY OF BIDDERS 9.1 A form entitled “Qualification Statement” for the qualification of bidders, giving evidence of sufficient facilities, equipment and experience to insure completion of the work is provided with the proposal and must be properly filled in, sworn to and submitted as part of the proposal. Additional information may be requested. 9.2 In determining the responsibility of the apparent lowest bidder, the Town may require, and the apparent lowest responsible bidder shall provide, such information as the Town deems necessary to make a proper determination. If the contractor fails to furnish the requested information he will be disqualified and/or if otherwise determined to be not responsible, the next lowest bidder shall become the apparent lowest responsible bidder. 9.3 Prior to a final determination that the apparent lowest bidder is not responsible, the Town shall notify the party of the same, in writing, relaying the initial determination of non-responsibility. The apparent lowest bidder will have ten (10) calendar days to make an appeal, in writing, to the Commissioner. 9.4 In the event the amount of the lowest bid appears disproportionately low when compared with the estimates undertaken by or on behalf of the Town and/or compared to other bids submitted, the Town reserves the right to inquire further of the apparent lowest bidder to determine whether the bid contains mathematical errors, omissions and/or erroneous assumptions, and whether the apparent lowest bidder has the capability to perform and complete the contract for the bid amount. 6 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW Contract No. HGR23-256R 10. REJECTION OF BIDS 10.1 The Town Board, Town of Oyster Bay, may reject a bid if: (a) The bidder fails to satisfy the Town Board that said bidder is responsible and properly qualified to carry out the contract; (b) The bidder fails to furnish any information required; (c) The bidder misstates or conceals any material fact in the bid, in written statements, or during any inquiry undertaken hereunder; (d) The bid does not strictly conform to law or to the requirement of the contract; (e) The bid is conditional; (f) The bid contains unbalanced bid prices; (g) The Town Board deems it necessary in the public interest; (h) The bidder does not have an approved apprenticeship agreement; 10.2 The Town Board reserves the right to waive any informality in a bid. 11. BID EVALUATION 11.1 Unit Price Contracts. Bids are evaluated and compared on and by their total prices arrived at by taking the sum of the unit prices for each item provided in the Proposal. 11.2 Discrepancies. In the event of any discrepancy between numerical values and written words contained in the bid, the written words will prevail. 12. AWARD OF CONTRACT 12.1 Prior to the award of Contract, the Town reserves the right to make any investigation that they deem necessary to determine the ability of the Contractor to perform the work. The Contractor will furnish the Town with all information and data that it may request and reserves the right to inspect the Contractor’s physical facilities. 12.2 The contract becomes effective upon award by the Town Board. 13. COMMENCEMENT OF WORK The successful bidder shall commence work not later than ten (10) calendar days after written directive to proceed is issued by the Commissioner. Completion of all work under the contract shall be as expressly stipulated in the proposal. 14. DAMAGES FOR FAILURE TO ENTER INTO CONTRACT The approved bidder upon failure or refusal to execute the Contract and provide required undertakings, forfeits its bid deposit. 15. INSURANCE REQUIREMENTS In accordance with the Agreement, the successful bidder shall procure, maintain, and pay for the following types of insurance for the duration of the contract: 7 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW Contract No. HGR23-256R (a) Workers' Compensation; (b) Public Liability and Property Damage; (c) Owners' Public Liability and Owners' Property Damage; (d) Fire Insurance if required in proposal. (e) Automobile Liability. 16. SECURITY FOR FAITHFUL PERFORMANCE The Contractor shall furnish a Performance Bond and Payment Bond, each equal to fifty percent (50%) of the initial estimated value of the Contract as surety for the faithful performance of the Contract, and for payment of all persons performing labor or furnishing materials for this Contract. It is the intent of the Town that said Bonds cover all work orders issued under this Contract, and any extensions thereof, and not yet completed. In the event that any individual work order issued under this Contract exceed two hundred percent (200%) of the amount of the Bonds, then the Bonds shall be increased to an amount equal to fifty percent (50%) of said work order. All bonds delivered pursuant to this section shall be issued by a bonding company authorized to transact business in the State of New York and listed as approved for the issuance of such bonds by the United States Treasury. 17. GUARANTEE Contract obligations shall commence upon award of the Contract by the Town Board, and shall be pursued faithfully with diligence in accordance with its provisions thereunder until completed in accordance with the Contract. The term of Contract will be one (1) year from the date of award with the option of TWO (2) separate one-year extensions thereafter. The right to extend or terminate this Contract will be vested solely in the Town. 18. TERM OF CONTRACT Contract obligations shall commence upon award of the contract by the Town Board, and shall be pursued faithfully with diligence in accordance with its provisions thereunder until completed in accordance with the contract. The term of contract will be one (1) year from the date of award with the option of four (4) one year extensions thereafter. The right to extend or terminate this Contract will be vested solely in the Town. 19. POLITICAL SUBDIVISIONS The Bidder agrees in submitting a bid that political subdivisions of New York State, either whole or partly within the Town of Oyster Bay, where applicable by law, will be permitted to participate in this contract per the same terms and conditions stated within. These subdivisions will be wholly responsible for any and all debts incurred by them as participants in this contract. Political subdivisions are defined as incorporated villages, school districts, fire districts and library districts. 8 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW Contract No. HGR23-256R 20. LIQUIDATED DAMAGES Time is of the essence in the completion of the contract, and any delay thereof will result in damages to the Town. It is thereby mutually agreed between the Town and Contractor that damages as stipulated in Article 23 of the Agreement shall be assessed against the Contractor for his failure to complete the contract as stipulated. 21. FOREIGN CONTRACTORS Foreign contractors must comply with the provisions of Article 9A and 16 of the Tax Law, as amended, prior to submission of their bid. A Certificate of the New York State Tax Commission to the effect that all taxes have been paid by the foreign contractor is conclusive proof of the payment of taxes. The term "foreign contractor" as used herein means, in the case of an individual, a person who is a legal resident of another state or foreign country; in the case of a firm or co-partnership, one having one or more partners who is a legal resident of another state or foreign country; and in the case of a foreign corporation, one organized under the laws of a state, other than the State of New York. 22. LIEN LAW Each bidder shall note that the lien laws of the State of New York provide that funds received by a Contractor for a public improvement constitute trust funds in the hands of the Contractor to be applied first to the payment of certain claims in accordance with Article 3-A of the Lien Law of the State of New York, as amended. 23. APPROVAL OF SUBCONTRACTORS AND SUPPLIERS Not later than five (5) calendar days from the date of written notice to proceed by the Commissioner, the Contractor shall furnish for approval to the Commissioner or his authorized representative, written notice of the names of all subcontractors to be employed on the job and the general items of work to be done by them; and to the extent indicated in the notice to proceed, the Contractor shall furnish written notice of the names of suppliers to be used on the job. In the event a subcontractor or supplier is disapproved, written notice of said disapproval shall be given to the Contractor within ten (10) calendar days after receiving said names. The Contractor shall then promptly notify the Commissioner or his authorized representative of the name of the subcontractor or material supplier selected in replacement, which selection shall again be subject to the approval of the Commissioner. If the Contractor voluntarily undertakes to commence performance of the contract on the project site, he must proceed in accordance with the terms and provisions of Article 16 of the Agreement as well as with the provisions of this and other related paragraphs. 24. APPRENTICESHIP PROGRAM When a Contract has a value of $500,000 or greater for the prime Contractor or $250,000 or greater for a Sub-Contractor, the Contractor and/or Sub-Contractor declares that it has an apprenticeship program in effect, approved by the New York State Commissioner of Labor, as evidenced by the certificate attached hereto. The Contractor and/or Sub- Contractor shall maintain said program for the duration of this Contract. 9 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW Contract No. HGR23-256R 25. OTHER LAWS 25.1 Bidders and contractors must comply with and abide by all laws, rules, regulations, and authorized directives pertaining to their functions, activities and duties in the initiation and pursuit of their obligations under this contract. 25.2 Special attention is directed to Article 36 of the General Business Law of the State of New York and Chapter 9 of the Code of Ordinances of the Town of Oyster Bay, as amended, relative to construction or blasting near underground facilities of public utilities. 25.3 Bidders and contractors are further directed to the controlling provisions of the labor law of the State of New York and especially Article 8, as amended, which, among other responsibilities, provides that "no laborer, workman, or mechanic in the employ of the contractor, subcontractor, or other person doing or contracting to do the whole or a part of the work contemplated by the contract shall be permitted or required to work more than eight (8) hours in anyone calendar day or more than five (5) days in anyone week, except in cases of extraordinary emergency including fire, flood or danger to life or property." Furthermore, employees shall be paid wages and provided the supplements in accordance with the provisions of Article 8 of the Labor Law, as amended. 25.4 The Contractor may be required to perform work on construction projects that are assisted by the Department of Housing and Urban Development and therefore will be subject to the laws and regulations associated with Federal labor standards administration and enforcement and that require Davis-Bacon compliance, including compliance with Section 3, which involves the promotion of economic opportunities for the low and very low income persons. The Contractor will be responsible for the full compliance of all subcontractors and any other lower-tier subcontractors with the labor standards provisions applicable to the project. 26. PREVAILING WAGE RATES Prevailing wage rates pertain to all construction under this contract and are part of the contract herein. 27. EQUIVALENCY Reference to specific apparatus, articles, materials and equipment by manufacturers or trade name or by description thereon is intended to convey the degree of efficiency and excellence required and may be substituted so long as there is substantial conformance to the excellence, efficiency, strength, durability, quality and appearance to perform the required functions. 28. OTHER LEGAL PROVISIONS 28.1. The Contractor, his Subcontractors and Suppliers shall not employ any labor or means, or purchase any materials or supplies, which employment, utilization or result in or in any way cause strikes, work stoppages, delays, suspension of work or similar troubles by workmen employed by the Contractor or Subcontractor, or by any of the trades working in or about the job site where work is being performed 10 FILED: NASSAU COUNTY CLERK 04/30/2024 06:31 PM INDEX NO. 607594/2024 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/30/2024 Town of Oyster Bay DPW