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HomeMy WebLinkAbout1998-06-29 City Council (7)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:JUNE 29, 1998 CMR:272:98 SUBJECT:AWARD OF CONTRACT TO THERMAL MECHANICAL FOR THE MUNICIPAL SERVICE CENTER BUILDINGS "A" AND "C" HEATING VENTILATING AND AIR CONDITIONING INSTALLATION PROJECT RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute the attached contract with Thermal Mechanical, in the amount of $64,177 for the Municipal Service Center (MSC) Buildings °’A" and "C" HVAC Installation Project. o Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract with Thermal Mechanical, for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $6,400. DISCUSSION Project Description The work to be performed under the contract is for installation of heating, ventilating and air conditioning (HVAC) for the area of Building "A" presently occupied by the Parks and Open Space Division, and a new office area for Utilities in Building "C." There is no ventilation unit or air conditioning in Building "A," only baseboard heaters for heat, and small windows that open for ventilation. Due to the direct westerly building exposure, excessive temperatures are often experienced in this area during the spring and summer months. If doors or windows are opened on the westerly side, exhaust fumes and noise from Highway 101 traffic penetrate the building. Installation of the HVAC unit for the Building "C" area is the second phase of two office remodeling projects that have been completed. These CMR:272:98 Page 1 of 3 offices are occupied by seven members of the Utilities Department, and are in an area that had been an equipment storage room for the Light and Power Division. This area currently has limited ventilation from the existing unit and cannot supply the necessary air flow for the new occupancy level. Bid Process A notice inviting formal bids for the MSC Buildings "A" and "C" HVAC Installation Project was sent on May 7, 1998 to six builders’ exchanges and seven contractors. The bidding period was 20 days. A pre-bid meeting was held on May 14, 1998; six bidders attended the meeting. Bids were received from three qualified contractors on May 26, 1998, as listed on the attached bid summary (Attachment A). Bids ranged from a high of $106,600 to a low bid of $64,177. A total of twelve contractors were contacted to bid the project. Due to the growing number of building projects in the surrounding communities, five of the contractors did not request bid documents because of their existing work load. Of the six contractors that attended the walk through, letters were received from two stating that they were unable to bid as their work load had increased since receiving the bid package. The high level of construction in the area has led to increased competition and higher bid prices. Staff has reviewed all bids submitted and recommends that the bid of $64,177 submitted by Thermal Mechanical, be accepted, and that Thermal Mechanical be declared the lowest responsible bidder. The bid is 22 percent above the engineer’s estimate of $49,625. 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 this project are included in Municipal Service Center Building "A" Improvements, CIP 19604 and the Public Works Structures and Grounds operating budget. POLICY IMPLICATIONS This, award does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This project is categorically exempt from California Environmental Quality Act and no further environmental review is necessary. CMR:272:98 Page 2 of 3 ATTACHMENTS Attachment A: Attachment B: Bid Summary Contract PREPARED BY: Karen Smith, Facilities Manager DEPARTMENT HEAD: GLENN S. Director of Public Works CITY MANAGER APPROVAL:~(~. ~ ~ EMIL~THARR~SON Assistant City Manager CMR:272:98 Page 3 of 3 ATTACHMENT A g g g g °o oOg .o o o g g o°g g g g ~g g g o° g g g ~ g 5 ~o°g g o°g g ~o, ~o°g g g g oo ~g FORMAL CONTRACT ATTACHMENT B SECTION 500 CONTRACT (Public Work) Public Works Department This Contract, dated x__L., is entered into by and between the City of Palo Alto, a chartered city and a municipal corporatio n of the State o~ California ("City"), and Therma Mechanical, 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: 1.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 tobe filed, on the date that final payment is made hereunder, subject to the earlier termination of this Contract. 2.General Scope of Project. 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 fol lows: PROJECT TITLE:MSC Buildings A & C HVAC Installation Invitation For Bids (IFB) # 106147 Base Bid:$ 64,177.00 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. 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. 4..Compe.nsation 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 CITY OF PALO ALTO: FORMAL CONTRACT (106147)PAGE 1 OF 8 FORMAL CONTRACT SECTION 500 the receipt of written invoices and all 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) Day s 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 be half. Proof of insurance shall be mailed to the Project Manager to the address set forth in Section 15 of this Contract. 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 arising 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 ~aw, statute or ordinance, or at common law. Assumption of Risk. Contractor agrees to voluntarily assume any and all risk of loss, damage, or injury to 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 CITY OF PALO ALTO: FORMAL CONTRACT (106147}PAGE 2 OF 8 FORMAL CONTRACT SECTION 500 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. Complianc~..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 Execution, Contractor shall furnish to the Project Manager the Bonds as required under the Notice Inviting Formal Bids. 11.Representations 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; 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 file d, on the date that final payment is made hereunder; Any manufacturer’s warranty obtained by Contractor shall be obtained or shall be deemed obtained by Contractor for and in behalf of City. eo AnY information submitted by Contractor prior 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; 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 Inviting Formal Bids; 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, deliveredand 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; CITY OF PALO ALTO: FORMAL CONTRACT (106147)PAGE 3 OF 8 FORMAL CONTRACT SECTION 500 12. 13. 14. 15. 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; 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. Assignment. 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. 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. 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 regular business hours of Contractor, or, if Contractor has no such hours, during the regular business hours of City. Notices_. All invoices, 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 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 CITY OF PALO ALTO: FORMAL CONTRACT (106147)PAGE 4 OF 8 FORMAL CONTRACT SECTION 500 Copy to:City of Palo Alto ATT.: Bill Shaddle, Project Manager Public Works Department, Facilities Management Division 3201 East Bayshore Road Palo Alto, CA 94301 To Contractor:Thermal Mechanical 425 Aldo Avenue. Santa Clara, CA 95054-2322 PHONE:(408) .988-8744 FAX: (408) 988-0233 AT3".: RICHARD ROOD 16.Appropriation of City Funds. This Contract is subject to the fiscal provisions of Article III, Section 12 of the Charter of the City of Palo Alto. 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 year 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. 17.Miscellaneous. a.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. Co 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. 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. 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. CITY OF PALO ALTO: FORMAL CONTRACT (106147)PAGE 5 OF 8 FORMAL CONTRACT SECTION 500 Incorporation of Documents. All documents constituting the Contract documents described in Section 3 hereof and all documents 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 unenforceable, the provisions of this Contract not so affected shall remain in full force and effect. Status of Contractor. In the exemise 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. q.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. 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. CITY OF PALO ALTO: FORMAL CONTRACT (106147)PAGE 6 OF 8 FORMAL CONTRACT SECTION 500 A’FrEST: 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 Assistant City Attorney CITY OF PALO ALTO: FORMAL CONTRACT (106147)PAGE 7 OF 8 FORMAL CONTRACT SECTION 500 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ) COUNTY OF ) On , before me, for said County, personally appeared , a notary public in and 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 (1061471 PAGE 8 OF 8