HomeMy WebLinkAbout1998-06-08 City Council (21)City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:JUNE 8, 1998 CMR:251:98
SUBJECT: AWARD OF CONTRACT TO POWER ENGINEERING
CONTRACTORS FOR THE RECYCLE LINE RELOCATION
PROJECT AT THE REGIONAL WATER QUALITY CONTROL
PLANT
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached contract with Power
Engineering Contractors in the amount of $72,000 for the recycle line relocation
project at the Regional Water Quality Control Plant (RWQCP).
Authorize the City Manager or her designee to negotiate and execute one or more
change orders to the contract with Power Engineering Contractors for related,
additional but unforeseen work which may develop during the project, the total value
of which shall not exceed $7,000.
DISCUSSION
Pro_iect Description
The work to be performed under this contract is for the relocation of the recycle line at the
RWQCP. The RWQCP uses reclaimed water (water that has been completely processed) for
cooling and scrubber water for the incinerators. The recycle line is an 18-inch pipe that
carries this recycled water back to the beginning of the RWQCP processes for treatment.
The existing recycle line discharges into a major sewer trunk line. before entering the
RWQCP. Obtaining samples of the incoming wastewater without it being contaminated by
this recycled water is impossible. The regulations and our National Pollution Discharge
Elimination System permit require an accurate accounting of the incoming wastewater. This
project will relocate the recycle line into the main pumping plant to eliminate the mixing of
the recycled water with the incoming sanitary sewage.
Bid Process
A notice inviting formal bids for the recycle line relocation were sent on March 23, 1998 to
six contractors. The bidding period was 49 days. A mandatory prebid meeting was held on
CMR:251:98 Page 1 of 2
April 17, 1998; five bidders attended the meeting. Bids were received from three qualified
contractors on May 12, 1998, as listed on the attached bid summary (Attachment A). Bids
ranged from a high bid of $98,000 to a low bid of $72,000. Contractors not responding
indicated that they did not submit a bid because they are very busy.
Staff has reviewed all bids submitted and recommends that the bid of $72,000 submitted by
Power Eng!neering Contractors be accepted; and that Power Engineering Contractors be
declared the lowest responsible bidder. The bid is 10 percent above staff’s estimate of
$65,000. The change order amount of $7,000, is less than 10 percent of the total contract.
Staff checked references supplied by the contractor for previous work performed and found
no significant complaints. Staff also checked with the Contractor’s State License Board and
found that the contractor has an active license on file.
RESOURCE IMPACT
Funds for the project have been appropriated in the FY 97-98 Wastewater Treatment Fund
Capital Improvement Project #59502.
POLICY IMPLICATIONS
Recommendations of this staff report are consistent with City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act.
ATTACHMENTS
Attachment A:
Attachment B:
Bid Summary
Contract
PREPARED BY:Bill Miks, Manager RWQCP
GLENN S. ROBERTS
Director of Public Works
S0N
Assistant City Manager
CMR:251:98 Page 2 of 2
ATTACHMENT A
FORMAL CONTRACT
CONTRACT
ATTACHMENT B
SECTION 50,0
(Public Work)
Public Works Department
This Contract, dated ......is entered into by and between the City of Palo Alto, a chartered
city and a municipal corporation of the State of California ("City"), and Power Engineering C0ntractor~, Inc. , a
California Corporation, ("Contractor").
For and in consideration of the covenants, terms, and conditions ("the provisions") of this Contract, City and
Contractor ("the parties") agree:
Term. This Contract shall commence and be binding on the parties on the Date of Execution of this
Contract, and shall expire on the date of recordation of the Notice of Substantial Completion, or, if no such
notice is required to be filed, on the date that final payment is made hereunder, subject to the earlier
termination of this Contract.
General Scooe of Pro!ect and Work. Contractor shall furnish labor, services, materials and equipment in
connection with the construction of the Project and complete the Work in accordance with the covenants,
terms and conditions of this Contract to the satisfaction of City. The Project and Work is generally
described as follows:
PROJECT TITLE: ¯Recycle Line Relocation
Invitation For Bids (IFB)’# 104823
Base Bid:$67,000,00
Alternate Bid:$5.000.00
Total Contract Price:$72,000.00
Contract Documents. This Contract shall consist of the documents set forth below, which are on file with
the City Clerk and are hereby incorporated by reference. For the purposes of construing, interpreting and
resolving inconsistencies between and among the provisions of this Contract, these documents and the
provisions thereof are set forth in the following descending order of precedence.
This Contract.
Notice Inviting Formal Bids.
Project Specifications.
Drawings.
Change Orders.
Bid.
Supplementary Conditions.
General Conditions.
Standard Drawings and Specifications (1992).
Certificate of Insurance, Performance Bond, Labor & Materials (Payment) Bond.
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-1 OF 8
FORMAL CONTRACT SECTION 500
Affirmative Action Guidelines and Compliance Report.
Other Specifications, or part thereof, not expressly incorporated in the Contract Specifications or
the Standard Drawings and Specifications (1992).
Any other document not expressly mentioned herein which is issued by City or entered into by the
parties.
ComDensation. In consideration of Contractor’s performance of its obligations hereunder, City shall pay
to Contractor the amount set forth in Contractor’s Bid in accordance with the provisions of this Contract
and upon the receipt of written invoices and ail necessary supporting documentation within the time set
forth in the Contract Specifications and the Standard Drawings and Specifications (1992), or, if no time
is stated, within thirty (30) Days of the date of receipt of Contractor’s invoices.
Insurance. On or before the Date of Execution, Contractor shall obtain and maintain the policies of
insurance coverage described in the Notice Inviting Formal Bids on terms and conditions and in amounts
as may be required by the Risk Manager. City shall not be obligated to take out insurance on Contractor’s
personal property or the personal property of any person performing labor or services or supplying materials
or equipment under the Project. Contractor shall furnish City with the certificates of insurance and with
original endorsements affecting coverage required under this Contract on or before the Date of Execution.
The certificates and endorsements for each insurance policy shall be signed by a person who is authorized
by that insurer to bind coverage in its behalf. Proof of insurance shall be mailed to the Project Manager
to the address set forth in Section 15 of this Contract.
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Indemnification. Contractor agrees to protect, defend, indemnify and hold City, its Council members,
officers, employees, agents and representatives harmless from and against any and all claims, demands,
liabilities, losses, damages, costs, expenses, liens, penalties, suits, or judgments, arising, in whole or in
part, directly or indirectly, at any time from any injury to or death of persons or damage tO property as a
result of the willful acts or the negligent acts or omissions of Contractor, or which results from Contractor’s
noncompliance with any Law respecting the condition, use, occupation or safety of the Project site, or any
part thereof, or which arises from Contractor’s failure to do anything required under this Contract or for
doing anything which Contractor is required not to do under this Contract, or which arises from conduct
for which any Law may impose strict liability on Contractor in the performance of or failure to perform the
provisions of this Contract, except as may arise from the sole willful acts or negligent acts or omissions
of City or any of its Council members, officers, employees, agents or representatives. This indemnification
shall extend to any and all claims, demands, or liens made or filed by reason of any work performed by
Contractor under this Contract at any time during the term of this Contract, or arisin.g thereafter.
To the extent Contractor will use hazardous materials in connection with the execution of its obligations
under this Contract, Contractor further expressly agrees to protect, indemnify, hold harmless and defend
City, its City Council members, officers and employees from and against any and all claims, demands,
liabilities, losses, damages, costs, expenses, liens, penalties, suits, or judgments City may incur, arising,
in whole or in part, in connection with or as a result of Contractor’s willful acts.or negligent acts or
omissions under this Contract, under the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. § §9601-6975, as amended); the Resource Conservation and Recovery Act (42
U.S.C. §§6901-6992k, as amended); the Toxic Substances Control Act (15 U.S.C. §§2601-2692, as
amended); the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health & Safety Code,
§ §25300-25395, as amended); the Hazardous Waste Control Law (Health & Safety Code, §§25100-
25250.25, as amended); the Safe Drinking Water and Toxic Enforcement Act (Health & Safety Code,
§ §25249.5-25249.13, as amended); the Underground Storage of Hazardous Substances Act (Health &
Safety Code, §§25280-25299.7, as amended); or under any other local, state or federal law, statute or
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-2 OF 8
FORMAL CONTRACT SECTION 500
ordinance, or at common law,
Assumpti.on of Risk. Contractor agrees to voluntarily assume any and all risk of loss, damage, or injury ~o
the property of Contractor which may occur in, on, or about the Project site at any time and in any manner,
excepting such loss, injury, or damage as may be caused by the sole willful act or negligent act or omission
of City or any of its Council members, officers, employees, agents or representatives.
Waiver. The acceptance of any payment or performance, or any. part thereof, shall not operate as a waiver
by City of its rights under this Contract. A waiver by City of any breach of any part or provision of this
Contract by Contractor shall not operate as a waiver or continuing waiver of any subsequent breach of the
same or any other provision, nor shall any custom or practice which may arise between the parties in the
administration of any part or provision of this Contract be construed to waive or to lessen the right of City
to insist upon the performance of Contractor in strict compliance with the covenants, terms and conditions
of this Contract.
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Compliance with Laws. Contractor shall comply with all Laws now in force or which may hereafter be in
force pertaining to the Project and Work and this Contract, with the requirement
of any bond or fire underwriters or other similar body now or hereafter constituted, with any discretionary
license or permit issued pursuant to any Law of any public agency or official as well as with any provision
of all recorded documents affecting the Project site, insofar as any are required by reason of the use or
occupancy of the Project site, and with all Laws pertaining to nondiscrimination and affirmative action in
employment and hazardous materials.
10.Bonds. As a condition precedent to City’s obligation to pay compensation to Contractor, and on or before
the Date of Exec.ution, Contractor shall furnish to the Project Manager the Bonds as required under the
Notice Inviting Formal Bids.
11.Reoresentations and Warranties. In the supply of any materials and equipment and the rendering of labor
and services during the course and scope of the Project and Work, Contractor represents and warrants:
Any materials and equipment which shall be used during the course and scope of the Project and
Work shall be vested in Contractor;
bo Any materials and equipment which shall be used during the course and scope of the Project and
Work shall be merchantable and fit to be used for the particular purpose for which the materials
are required;
Any labor and services rendered and materials and equipment used or employed during the course
and scope of the Project and Work shall be free of defects in workmanship for a period of one (1)
year after the recordation of the Notice of Substantial Completion, or, if no such notice is required
to be filed, on the date that final payment is made hereunder;
Any manufacturer’s warranW obtained by Contractor shall be obtained or shall be deemed obtained
by Contractor for and in behalf of City.
Any information submitted by Contractor p~ior to the award of Contract, or thereafter, upon
request, whether or not submitted under a continuing obligation by the terms of the Contract to
do so, is true and correct at the time such information is submitted or made available to the City;
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-3 OF 8
FORMAL CONTRACT SECTION 500
Contractor has not colluded, conspired, or agreed, directly or indirectly, with any person in regard
to the terms and conditions of Contractor’s Bid, except as may be permitted by the Notice In.viting
Formal Bids;
g0 Contractor has the power and authority to enter into this Contract with City, that the individual
executing this COntract is duly authorized to do so by appropriate resolution, and that this Contract
shall be executed, delivered and performed pursuant to the power and authority conferred upon
the person or persons authorized to bind Contractor;
Contractor has not made an attempt to exert undue influence with the Purchasing Manager or
Project Manager or any other person who has directly contributed to City’s decision to award the
contract to Contractor;
There are no unresolved claims or disputes between Contractor and City which would materially
affect Contractor’s ability to perform under the Contract;
Contractor has furnished and will furnish true and accurate statements, records, reports,
resolutions, certifications, and other written information as may be requested of Contractor by City
from time to time during the term of this Contract;
ko Contractor and any person performing labor and services under this. Project are duly licensed by the
State of California as required by California Business & Professions Code Section 7028, as
amended; and
Contractor has fully examined and inspected the Project site and has full knowledge of the physical
conditions of the Project site.
12.Assianment. This Contract and the performance required hereunder is personal to Contractor, and it shall
not be assigned by Contractor. Any attempted assignment shall be null and void.
13.Claims of Contractor. All claims pertaining to extra work, additional charges, or delays within the Contract
Time or other disputes arising out of the Contract shall be submitted by Contractor to City in writing by
certified or registered mail within ten (10) Days after the claim arose or within such other time as may be
permitted or required by law, and shall be described in sufficient detail to give adequate notice of the
substance of the claim to City.
14.Audits by..City. During the term of this Contract and for a period of not less than three (3) years after the
expiration or earlier termination of this Contract, City shall have the right to audit Contractor’s
Project-related and Work-related writings and business records, as such terms are defined in California
Evidence Code Sections 250 and 1271, as amended, during the regula~ business hours of Contractor, or,
if Contractor has no such hours, during the regular business hours of City.
15.Notices. All agreements, appointments, approvals, authorizations, claims, demands, Change Orders,
consents, designations, notices, offers, requests and statements given by either party to the other shall
be in writing and shall be sufficiently given and served upon the other party if (1) personally served, (2)
sent by the United States mail, postage prepaid, (3) sent by private express delivery service, or (4) in the
case of a facsimile transmission, if sent to the telephone FAX number set forth below during regular
business hours of the receiving party and followed within two (2) Days by delivery of a hard copy of the
material sent by facsimile transmission, in accordance with (1), (2) or (3) above. Personal service shall
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-4 OF 8
FORMAL CONTRACT SECTION 500
16.
17.
include, without limitation, service by delivery and service by facsimile transmission.
TO City:City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Copy to:City of Palo Alto
ATI’.: James Allen, Project Manager
Public Works Department, Water Quality Control Division
250t Embarcadero Way
Palo Alto, CA 94303
To Contractor:Power Engineering Contractors, Inc.
P. O. Box 545
Alameda, CA 94501
PHONE: (510)) 337-3800
FAX: (510) 337-3808
ATT.! Ken Lindberg, President
ADDroDriation of City_ Funds. This Contract is subject to the fiscal provisions of Article IIi, Section 12 of the Charter
of the City of Palo Ait0. Any charges hereunder for labor, services, materials and equipment may accrue only
after such expenditures have been approved in advance in writing in accordance with applicable Laws. This
Contract shall terminate without penalty (I) at the end of any fiscal year in the event that funds are not appropriated
for the following fiscal year, or (ii) at any time within a fiscal y ear in the event that funds are only appropriated for
a portion of the fiscal year and funds for this Contract are no longer available. This.Section 16 s hall control in the
event of a conflict with any other provision of this Contract.
Miscellaneous.
Bailee Disclaimer. The parties understand and agree that City does not purport to be Contractor’s bailee,
and City is, therefore, not responsible for any damage to the personal property of Contractor.
Consent. Whenever in this Contract the approval or consent of a party is required, such approval or
consent shall be in writing and shall be executed by a person having the express authority to grant such
approval or consent.
Controlling Law. The parties agree that this Contract shall be governed and construed by and in
accordance with the Laws of the State of California.
Definitions. The definitions and terms set forth in Section 1 of the Standard Drawings and Specifications
(1992) of this Contract are incorporated herein by reference.
e.Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to
perform its obligations under this Contract which directly results from an Act of God or an act of a superior
governmental authority.
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-5 OF 8
FORMAL CONTRACT SECTION 500
Headings. The paragraph headings are not a part of this Contract and shall have no effect upon the
construction or interpretation of any part of this Contract.
Incorporation of Documents. All documents constituting the Contract documents described in Section
3 hereof and all document~ which may, from time to time, be referred to in any duly executed amendment
hereto are by such reference incorporated in this Contract and shall be deemed to be part of this Contract.
Integration. This Contract and any amendments hereto between the parties constitute the entire
agreement between the parties concerning the Project and Work, and there are no other prior oral or
written agreements between the parties that are not incorporated in this Contract.
Modification of Agreement. This Contract shall not be modified or be binding upon the parties, unless
such modification is agreed to in writing and signed by the parties.
Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term or
other stipulation in the Contract shall define or otherwise control, establish, or limit the performance
required or permitted or to be required of or permitted by either party. All provisions, whether covenants
or conditions, shall be deemed to be both covenants and conditions.
Resolution. Contractor shall submit with its Bid a copy of any corporate or partnership resolution or other
writing, which authorizes any director, officer or other employee or partner to act for or in behalf of
Contractor or which authorizes Contractor to enter into this Contract.
Severability. If a court of competent jurisdiction finds or rules that any provision of this Contract is void
or unenforceablel the provisions of this Contract not so affected shall remain in full force and effect.
Status of Contractor. In the exercise of rights and obligations under this Contract, Contractor acts as an
independent contractor and not as an agent or employee of City. Contractor shall not be entitled to any
rights and benefits accorded or accruing to the City Council members, officers or employees of City, and
Contractor expressly waives any and all claims to such rights and benefits.
Successors and Assigns. The provisions of this Contract Shall inure to the benefit of, and shall apply to
and bind, the successors and assigns of the parties.
Time of the Essence. Time is of the essence of this Contract and each of its provisions. In the calculation
of time hereunder, the time in which an act is to be ,performed shall be computed by excluding the first
Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday, or
any Day observed as a legal holiday by City, the time for performance shall be extended to the following
Business Day.
Venue. In the event that suit is brought by either party hereunder, the parties agree that trial of .such
action shall be vested exclusively in the state courts of California in the County of Santa Clara in the City
of San Jose or in the United States District Court for the Northern District of California in the City of San
Jose.
qo Recovery of costs. The prevailing party in any action brought to enforce the terms of this Contract or
arising out of this Contract may recover its reasonable costs, including reasonable attorney’s fees,
incurred or expended in connection with such action against the non-prevailing party.
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-6 OF I~
FORMAL CONTRACT SECTION 500
IN WITNESS WHEREOF, the parties have by their duly appointed representatives executed this Contract
in the city of Palo Alto, County of Santa Clara, State of California on the date first stated above.
ATTEST:
City Clerk
CITY OF PALO ALTO
By:
Its Mayor
CONTRACTOR:
By:
Name:
Title:
Taxpayer.I.D. No.
APPROVED:
Assistant City Manager
Director of Public Works
Director of Administrative Services
Insurance Review
APPROVED AS TO FORM:
Senior Asst.. City Attorney
CITY OF PALO ALTO: FORMAL CONTRACT (104823)SECTION 00500-7 OF 8
FORMAL CONTRACT
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
SECTION 500
STATE OF
COUNTY OF
On , before me,
personally appeared.
, a notary public in and for said County,
, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature (Seal)
END OF SECTION
CITY OF PALO ALTO: FORMAL CONTRACT 1104823)SECTION 00500-8 OF 8