HomeMy WebLinkAbout1999-07-07 City Council (10)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM: - CITY MANAGER DEPARTMENT: PUBLIC WORKS 4
DATE:
SUBJECT:
JUNE 7, 1999 - CMR:265:99
AWARD OF CONTRACT TO MONTEREY MECHANICAL
COMPANY IN THE AMOUNT OF $5,635,000~ FOR THE
INCINERATOR REHABILITATION PROJECT AT THE REGIONAL
WATER QUALITY CONTROL PLANT (RWQCP)
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached contract with Monterey
Mechanical Company in the amount of $5,635,000 for the incinerator rehabilitation
project at the Regional Water Quality Control Plant (RWQCP) upon successful sale
of bonds.
Authorize the City Manager-or her designee’.to negotiate and execute one or more
change orders to the contract with Monterey Mechanical Company for related,
additional but unforeseen work which may develop during the project, the total value
of which shall not exceed $485,000.
DISCUSSION
Project Description
The work to be performed under this contract is for ~the rehabilitation of two ~xisting
incinerators at the RWQCP. The scope includes the repair of two existing incinerators,
installation of new emission control systems, replacement of certain existing peripherals, and
installation of new sludge blending facilities.
On February 23, 1998, Council approved staff recommendations to implement the incinerator
rehabilitation project (CMR: 141:98). The project went through a vigorous review process
prior to Council approval because of the environmental concerns with incineration. The
project specifications include very challenging performance requirements on emission
CMR:265:99 Page 1 of 3
control devices, and stringent guarantee clauses on emission reductions. The City’s self-
imposed requirements on emission reductions exceed the air permit conditions, especially
with regard to the reduction of dioxins. The specifications also address certain anticipated
future regulatory requirements from the Bay Area Air Quality Management District
(BAAQMD) and the Environmental Protection Agency (EPA). To further accommodate the
unforeseeable and ever changing regulatory requirements, the design has provisions for
additional future emission reduction equipment.
Bid Process
Notices inviting formal bids (IFBs) for the incinerator rehabilitation project were sent to
eight contractors on March 30, 1999. Additional IFBs were sent to nineteen contractors who
requested the bid packages. The bidding period was 49 days. A mandatory pre-bid meeting
was held on April 14, 1999; twenty-six bidders attended the meeting. Several contractors
paired up to bid on this project. Bids were received from four qualified contractors on
May 18, 1999, as listed on the attached bid summary (Attachment A). Bids ranged from a
high of $7,587,170 to a low bid of $5,635,000.
Staff has reviewed all bids submitted and recommends that the bid of $5,635,000 submitted
by Monterey Mechanical Company be accepted, and that Monterey Mechanical Company
be declared tl-~e lowest responsible bidder. The bid is three percent below the engineer’s
estimate of $5,650,000. The change order amount of $485,000,.which equals nine percent
of the total contract, is requested.
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
The incinerator rehabilitation project is bond funded. The contract will be contingent upon
the successful sale of bonds. The City and its partners (Cities of Mountain View and Los
Altos) have signed a. contract amendment that approves the sale of bonds to finance the
project on March 16, 1998 (CMR: 165:98). On May 24, 1999, Council directed staff to
proceed with the bond sale, (CMR:254:99). The sale of bonds is scheduled to occur on
June 15, 1999.
POLICY IMPLICATIONS
Recomlnendations are consistent-with City policies.
ENVIRONMENTAL REVIEW
A Negative Declaration was prepared for this project and was approved by Council on
February 23, 1998 (CMR:141:98 ).
CMR:265:99 Page 2 of 3
ATTACHMENTS
Attachment A: Bid Summary
Attachment B: Contract
PREPARED BY:
DEPARTMENT HEAD:
Bill Miks, Manager RWQCP
Director of Public Works
CITY MANAGER APPROVAL:
EMILYk-IARRISON
Assistant City Manager
CMR:265:99 Page 3 of 3
FORMAL CONTRACT
ATTACHMENT B
SECTION 500
CONTRACT No. C9114555
(Public Work)
This Contract, Number C9114555 dated ; isentered into by,and between the City of Palo Alto, a chartered
city and a municipal corporation of the State of California ("City"), and Monterey Mechanical Company , 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, at the end of the last fiscal year covered by the agreement hereunder, subject to the earlier termination
of this Contract.
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;
Title of Project: RWQCP incinerator Rehabilitation Invitation for Bid (IFB) Number: 114555
Total Bid: $ 5,635,000.00 (Deductive Alternate A accepted by the City of Palo Alto)
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 or~rer’b’f p~d~n’~i
a.This Contract.
b.Invitation For Bid.
c.Project Specifications.
d.Drawings.
e.Change Orders. ,
f.Bid.
g.Supplementary Conditions.
h.General Conditions.
I.Standard Drawings and Specifications (1992).
j.Certificate of Insurance, Performance Bond, Labor & Materials (Payment) Bond.
k.Other Specifications, or part thereof, not expressly incorporated in the Contract Specifications or the
Standard Drawings and Specifications (1992).
I.Any other document not expressly mentioned herein which is issued by City or entered into by the parties.
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 Cont ract
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.
CITY OF PALO ALTO: IFB 114555 PAGE 1 ,Q,..F 7
FORMAL CONTRACT SECTION 500
Insurance. On or before the Date of Execution, Contractor shall obtain and maintain the policies of insurance
coverage described in the Invitation For Bid 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 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 perf_orm 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 Wast~ 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 ordinance,
or at common law.
"As~umption 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 asa 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 Co~nt.ract be construed to waive or to lessen the right of City to insist u~on the performance of
Contractor in strict compliance with the covenants, terms and conditions of this Contract.
¯ 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 Contractl ~vith-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
CITY OF PALO ALTO: IFB 114555 PAGE 2...,,~.~ 7
FORMAL CONTRACT SECTION 500
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 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 Invitation For Bid.
11.Representations and Warranties. In the supply of any materials and equipment and the rendering of labor and
services during the course and scope ofthe"Proje’ct-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 t.o 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 fiie d, on the
date that final payment is made hereunder;
Any manufacturer’s warranty obtained by Contra~:tor shall be obtained or shall be deemed obtained by
Contractor for and in behalf of City.
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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 Invitation For Bid;
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 attem_pt.t.o 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
Contractorls ability to perform under the Contract;.
Contractor has furnished and will furnish true and accurate statemen{~, records, reports, resolutions,
certifications, and other written information as may be requestedof Contractor b~, 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.
CITY OF PALO ALTO: IFB 114555 PAGE 3 ~IF 7
FORMAL CONTRACT °SECTION 500
12.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.
13.
14.
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.
15.Notices. All agreements, appointments, approvals, authorizations, claims, demands, Change Orders, consents,
designations, notices, offers, requests and statements given by eitherparty to the other shall be in writing and
shall be sufficiently given and served upon th.e 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 I~y facsimile transmission, in
accordance with (1), (2) £r (3) above. Personal service shall include, without limitation, service by delivery and
service by facsimile transmission.
To City:Ci{y of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Copy to:City of Palo Alto
Public Works Department, Regional Water Quality Control Plant
2501 Embarcadero Way ~
Palo Alto, CA 94303
Attn: Daisy Stark, Project Manager
To Contractor:Monterey Mechanical Company
¯ 8275 San Leandro Street
Oakland, CA 94621-1901
Attn: Milton C. Burleson,~President
~,~)p~’~)l~riation 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 Seen approved in advance in writing in accordance with applicable Laws. This
Contract shall terminate without penalty (I) a_t thee_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 controliri the
event of a conflict with any other provision of this Contract.
17. Miscellaneous.
CITY OF PALO ALTO: IFB 114555 PAGE 4~ .~OF 7
FORMAL CONTRACT SECTION 500
a.Bailee Disclaimer. The parties understand and agree that City does not purport to be Contractor’s bailee,
and City is, therefore; not-responsib!e 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 Drawingsand 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.
Incorporation of Documents. All documents constituting the Contract documents described in ~ection
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. Coniractor shall submit with its Bid a copy of any corporate or partnership resolution or ot her
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 exercise of~rights and obligations under this Contra(~t, 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.
CITY OF PALO ALTO: IFB 114555 PAGE 5;’OF 7
FORMAL CONTRACT
O.
SECTION 500
Time of the Essence. Time is of the essence of this Contract and each of its provisions. In the calculatio n
’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.
po 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 DiStrictCourt 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 iheir 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.
A’FTEST:CITY OF PALO ALTO
By:
City Clerk Its: M.ayor
APPROVED AS TO FORM:
L
Senior Assistant City Attorney
APPROVED:
Assistant City Manager
CONTRACTOR:
By:
Name:
Director of Public Works
Director of Administrative Services
Contract Manager (Insurance Review)
Title:
By:
Name:
Title:
(Compliance with California Corporations Code Section 313
is required if the entity on whose behalf this contract is signed
is a corporation. In the alternative, a certified.corporate
resolution attesting to the signatory authority of the individuals
signing in their respective capacities is acceptable)
CITY OF PALO ALTO: IFB 114555 PAGE 6 Q.F 7
FORMAL CONTRACT SECTION 500
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF
COUNTY OF
On , before me,
in and for said County, personally appeared
, a notary public
, 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 thai
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)
CITY OF PALO ALTO: IFB 114555 PAGE 7.~.F 7