HomeMy WebLinkAbout1997-07-14 City Council (7)City of Palo Alto
City Manager’s Report
4
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
AGENDA DATE: July 14, 1997 CMR:329:97
SUBJECT:AWARD OF CONTRACT TO WEST VALLEY CONSTRUCTION
COMPANY IN THE AMOUNT OF $1,126,897 FOR PHASE 7 GAS
MAIN REPLACEMENT PROJECT
REQUEST
This is a request for approval of a contract with West Valley Construction Corn_pany in the
amount of $1,126,897 for Phase 7 of the Gas Main Replacement Project.
RECOMMENDATIONS
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached contract with West Valley
Construction Company in the amount of $1,126,897 for Phase 7 of the Gas Main
Replacement Project.
Authorize the City Manager or her designee to negotiate and execute one or more
change orders to the contract to cover additional but unforeseen work which may
develop during the project. The value of the change orders shall not exceed
$112,690.
POLICY IMPLICATIONS
The award of this contract is consistent with existing policies.
CMR:329:97 Page 1 of 3
EXECUTIVE SUMMARY
The work to be performed under the contract is for,Phase 7 of the Gas Main Replacement
Project, which includes the installation of approximately 22,014 linear feet of new
polyethylene pipe and 260 customer services. Upgrading the system to polyethylene pipe
will eliminate leaks in the area, as well as reduce loads on the existing cathodic protection
system, thereby extending its useful life. Additionally, larger size mains will increase gas
distribution system reliability.
Bid Process
Requests for bids for Phase 7 of the Gas Main Replacement Project were sent on May 13,
1997 to eighteen (18) builders exchanges and seven (7) contractors. The bidding period was
29 days. A pre-bid meeting was held on May 27, 1997. Six (6) contractors attended the
meeting. Bids were received from five (5) qualified contractors on June 10, 1997, as listed
on the attached bid summary (Attachment A). Bids ranged from a high of $1,534,947 to a
low bid of $1,126.897. Those contractors not responding indicated that they are too busy to
bid. Staff has reviewed all bids submitted and recommends that the low bid of $1,126,897
submitted by West Valley Construction Company be accepted, and West Valley Construction
Company should be determined by Council to be the lowest responsible bidder and the
contract must be awarded accordingly. The low bid is $135,291 below the engineer’s
estimate of $1,262,188. The change order amount of$112,690, which equals 10 percent of
the total contract, is requested to cover additional related but unforeseen work which may
develop dur’mg the project.
Staff checked references supplied by the contractor for previous work performed by West
Valley Construction Company and found no complaints. Staff also checked the contractor’s
license with the State of California, and it is active with no complaints on file.
FISCAL IMPACT
Funds for this project are included in the FY 1997-1998 budget.
ENVIRONMENTAL ASSESSMENT
This project was considered to be categorically exempt as part of Council approval of the
CMR:329:97 Page 2 of 3
Phase 7 Gas Main Replacement CIP, and no further environmental review is necessary.
ATTACHMENTS
Attachment A:
Attachment B:
Bid Summary
Contract
PREPARED BY: Phung Hoang, Greg Scoby, Roger Cwiak, Larry Start
DEPARTMENT HEAD REVIEW:2’.
J.
Director of Utilities
CITY MANAGER APPROVAL :~~. ~a_~
E1Q[ILY HARRISON
Assistant City Manager
CMR:329:97 Page 3 of 3
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FORMAL CONTRACT SECTION 005O0
CONTRACT Attachment "B"
This Contract, dated _, is entered into by and between the City of Palo Alto, a municipal corporation of the
State of California ("City"), and.., a General, ("Contractor"), whose Taxpayer Identification Number is..
For and in consideration of the following covenants, terms and conditions, City and Contractor ("the parties") agree:
Term. This Contract shall commence on, 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 Scope of Proiect 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:
Title: GAS MAIN REPLACEMENT PHASE 7 NO.:
Base Bid: $ .1,126,897.00
Add Alternates (if any): $
Grand Total Bid $1,126,897.00
#36772
o 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 the provisions of this Contract, these documents and the provisions thereof are set forth
in the following descending order of precedence.
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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.
CITY of PALO ALTO: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-1 of 8
FORMAL CONTRACT SECTION 00500
Compensation. 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 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) 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.
Indemnification. Contractor agrees to protect, defend, indemnify and hold City, its City Council members, officers,
and employees 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 or negligent act or omission 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 imposes strict liability on Contractor in the performance of or failure
to perform the terms and conditions of this Contract, except as may arise from the sole willful or negligent act or
omission of City or any of its City Council members, officers, or employees. 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.
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 acts or omissions under this Contract, under the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C., §§9601-75, as amended); the Resource Conservation and Recovery
Act (42 U.S.C., §§6901-82, as amended); the Carpenter-Presley-Tanner Hazardous Substance Account Act
(Health & Saf. Code, §§25300-25395, as amended) the Hazardous Waste Control Act (Health & Saf. Code,
§§25100-25250.24, as amended); the Safe Drinking Water and Toxics Enforcement Act (Health & Saf. Code,
§§25249.5-25249.13, as amended); the Underground Storage of Hazardous Substances Act (Health & Saf. Code,
’§§25280-99.6, as amended); the Hazardous Substance Account Act (Health & Saf. Code, §§25300-95, as
amended); the Toxic Substances Control Act (15 U.S.C., §§2601-71, as amended); or under any other local, state
or federal ordinance or statute, 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 or negligent act or omission of City or any of its
City Council members, officers, or employees.
CITY of PALO ALTO: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-2 of 8
FORMAL CONTRACT SECTION 00500
o Waive[. 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.
o 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 hereat~er cons~uted, 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:
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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 ot defects in workmanship for a period of one (1) year after
the recordal~on 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 warranty obtained by Contractor shall be obtained or shall be deemed obtained by
Contractor for and in behalf of City.
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,
delivered and performed pursuant to the power and authority conferred upon the person or persons
authorized to bind Contractor;
h°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: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-3 of 8
FORMAL CONTRACT SECTION 0O50O
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 m.ay 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 is duly licensed as a contractor
with the State of California as required by California Business & Professions Code Section 7028, as
amended; and
12.
13.
14.
15.
Contractor has fully examined and inspected the Project site and has full knowledge of the physical
conditions of the Project site.
Assi.qnment. 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 alter 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 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
Copy to:City of Palo Alto
Department of UTILITIES
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
CITY of PALO ALTO: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-4 of 8
FORMAL CONTRACT SECTION 00500
TEL: (415) 329-237____._~9,
FAX: (415) 329-2608.
ATTN: Project Manager, Greg Scoby
To Contractor:West Valley Construction Co.
809 Burlingame Avenue
Redwood City, CA 94063
(415) 364-9464
FAX: (451) 364-8290
ATTN: Michael J. Kelly
16.
17.
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 (i~) 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 shall 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.
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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
CITY of PALO ALTO: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-5 of 8
FORIMIAL CONTRACT SECTION 00500
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.
go 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.
ho 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.
jo 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.
mo 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.
no 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.
p°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: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-6 of 8
FORMAL CONTRACT SECTION 00500
IN WITNESS WHEREOF, the parties have executed this Contract on the date first above
stated in Palo Alto, California.
ATTEST:CITY OF PALO ALTO, CALIFORNIA
By:
City Clerk Mayor
APPROVED:CONTRACTOR:
City Manager
By:
Name:
Director of Utilities
Director of Finance
Title:
Taxpayer I.D. No.
Risk Manager/
Manager, Purchasing & Contract Administration
APPROVED AS TO FORM:
Senior Assistant City Attorney
CITY of PALO ALTO: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-7 of 8
FORMAL CONTRACT SECTION 00500
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § "~189)
STATE OF
COUNTY OF
On , before me, ,
a notary public in and for said County, personally appeared
, 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.
END OF SECTION
CITY of PALO ALTO: Utilities Formal Contract (w/HAZMAT) (12/94)SECTION 00500-8 of 8