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HomeMy WebLinkAbout1996-06-10 City Council (31)City of Palo Alto Manager’s Report TO:HONORABLE CITY COUNCIL 6 FROM:CITY MANAGER DEPARTMENT:Utilities AGENDA DATE: June 10, 1996 CMR:293:96 SUBJECT:Award of Contract to Dresser Areia Construction, Inc. for Phase VI Gas Main Replacement Project REQUEST This is a request for approval of a contract with Dresser Areia Construction, Inc. in the amount of $588,904.00 for the replacement of gas mains required in the Phase VI Gas Main Replacement Project. RECOMMENDATIONS Staff recommends that Council: 1)Approve and authorize the Mayor to execute the attached contract with Dresser Areia Construction, Inc. in the amount of $588,904.00 for the Phase VI Gas Main Replacement Project. 2)Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract with Dresser Areia Construction, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which change orders shall not exceed $58,890.00. POLICY IMPLICATIONS The award of this contract is consistent with existing policies. CMR:293:96 Page 1 of 3 EXECUTIVE SUMMARY Project Description The work to be performed under the contract is for Phase VI Gas Main Replacement Project which includes the installation of approximately 15,000 linear feet of new polyethylene pipe and 306 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 capacity and reliability. Bid Process A notice inviting formal bids for Phase VI Gas Main Replacement Project was sent on April 16, 1996, to sixteen builders’ exchanges and eight contractors. The bidding period was twenty-one days in accordance with the Purchasing Manual Guidelines A pre-bid. meeting was held on April 29, 1996 ; nine bidders attended the meeting. Bids were received from six qualified contractors on May 7, 1996, as listed on the attached bid summary (Attachment A). Bids ranged from a high of $956,619.00 to a low bid of $588,904.00. Contractors not responding indicated that they did not submit a bid because their existing work loads did not permit them to take on additional work. Staff has reviewed all bids submitted and recommends that the bid of $588,904.00 submitted by Dresser Areia Construction, Inc. be accepted and that Dresser Areia Construction, Inc. be declared the lowest responsible bidder. The bid is 44 percent below the engineer’s estimate of $1,044,080.40. The change order amount of $58,890.00, which equals 10 percent of the total contract, is requested because of unforeseen but related work which may develop. Staff checked references supplied by the contractor for previous work performed by Dresser Areia Construction Inc. and found no complaints. Staff also checked with the Contractor’s State License Board and found that the contractor has an active license on file with no complaints. FISCAL IMPACT Funds for this project are included in the FY 95/96 budget. CMR:293:96 Page 2 of 3 ENVIRONMENTAL ASSESSMENT This project is categorically exempt from the provisions of CEQA and no further environmental review is necessary. ATTACHMENTS Attachment A: Attachment B: Attachment C: Bid Summary Contract Project Location Map PREP/XA~ED BY: Phung Hoang, Greg Scoby, Roger Cwiak. DEPARTMENT HEAD REVIEW: Director of Utilities CITY MANAGER APPROVAL: ity Manager CMR:293:96 Page 3 of 3 W W o o o o ~) 0o o o ~’ o o-- ~oo~~ oo o " 0 oo oo 0 0o W 0 o oo 0 0 oo oo o FORMAL CONTRACT- Utilities Department CONTRACT (Sample) (Public Work) SECTION 00500 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 _~y,.._, a ~, ("Contractor"). For and in consideration of the covenants, terms, and conditions ("the provisions") of this Contract, City and Contractor ("the parties") agree; ~. 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. ~Genera! Scope of Proiect aqd 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 of Project:_Gas Main Reolacement - Phase Base Bid:$ Add Alternates (if any)’. $ Total Bid: $. NO,: ~CorLtract 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 purpos.es 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. CITY of PALO ALTO: Public Works/Utilities Formal Contract (w/HAZMAT) (8/95)SECTION O0500-1 of 8 I=ORMAL CONTRACT- Utilities Department SECTION 00500 .~LaJ_V._~. 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. Compliance with Law;~. 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, w~th 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 s~te, 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.J~d~l~. 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.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; Any materials and equipment which shall be used du.ring 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 equipmeot 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 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 olluded, 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 shal~ be executed, delivered and performed pursuant to the power and authority conferred upon the person or persons authorized to bind Contractor; CITY of PALO ALTO: Public Works/Utilities Formal Contract (w/HAZMAT)(8/95)SECTION 00500-3 of 8 FORMAL CONTRACT- Utilities Department Copy to:City of Palo Alto Department of Utilitie~ 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 (415) 329-2379 FAX: (415) 329-2608. ATTN: Greg Scoby, Project Manager To Contractor: SECTION 00500 ATTN: 16. 17. Appropriation of City Funds. This Contract is subject to the fiscal provisions of Article III, Section 12 of the Charter of the CitT~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 sl~all terminate without penalty (i) at the end of any fiscal year in the event that funds are not appropriated for the following ~cal year, or (iO 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. ~iscellaneous. 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.’ 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, Ne~er 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: Public Works/Utilities Formal Contract (w/HAZMAT) (8/95)SECTION 00500-5 of 8 FORMAL CONTRACT- Utilities Department SECTION 00500 in the city of Pato Alto, County of Santa Clara, State of California on the date first stated above. ATTEST:CITY OF PALO ALTO By: City Clerk Its: Mayor APPROVED:CONTRACTOR: E~y: City Manager Director of Utilities Director of Administrative Services Name: Title: Taxpayer I.D. No. Manager, Contract Administration APPROVED ASTO FORM: Senior Asst. City Attorney CITY of PALO ALTO: Public Works/Utilities Formal Contract (w/HAZMAT) (8/95)SECTION 00500-’7 of 8 LU