HomeMy WebLinkAboutStaff Report 291-06City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER
8
DEPARTMENT: UTILITIES
DATE:JULY 10, 2006 CMR:291:06
SUBJECT:APPROVAL OF A UTILITIES ENTERPRISE FUND CONTRACT WITH
WEST VALLEY CONSTRUCTION COMPANY, INC. IN THE AMOUNT
OF $1,771,481 FOR GAS MAIN REPLACEMENT CAPITAL
IMPROVEMENT PROJECT 15, GS-05002
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager to execute the attached
contract with West Valley Construction Company, Inc. (Attachment ~ ~) in the amount of
$ !,771,481 for the Capital Improvement Gas Main Replacement Project 15, GS-05002.
Staff also recommends that Council approve and authorize the City Manager or his designee to
negotiate and execute one or more change orders to the contract with West Valley Construction
Company, Inc. for related additional, but unforeseen work, which may develop during the
project, the total value of which shall not exceed $177,148.
DISCUSSION
Proiect Description
The work to be performed under the contract is for installation of approximately 11,840 linear
feet of new polyethylene (PE) gas main, 155 new customer services, and service stubs to
reconnect 34 existing customer PE services (project locations are shown in Attachment C).
Replacing the gas distribution system with PE pipe will eliminate leaks in the project areas and
reduce loads on the existing cathodic protection system, thereby extending its useful life. Larger
size mains will increase distribution system reliability.
The project targets acrylonitrile-butadiene-styrene (ABS) mains that have caused additional
maintenance problems and expense due to their brittle pipe walls and non-circular shape. Over
time these mains have developed an elliptical shape with brittle sidewalls. Repairs to these oddly
shaped mains is time consuming and difficult. Accelerated replacement of ABS mains and
service replacements need to remain on the City’s planned CIP schedule. ABS material failures
will continue to contribute to increasing gas maintenance expenses associated with gas leaks and
expose the City to potential liability until all ABS materials are removed from the gas
CMR:291:06 Page 1 of 3
distribution system. The work is being performed by contract because the project resource
requirements are beyond the City’s personnel and equipment capacity.
Summary of Bid Process
Bid Name/Number Gas Main Replacement Project 15, CIP GS-05002, IFB
Number 116894
Proposed Length of Project 100 calendar days
Number of Bids Mailed to 10
Contractors
Number of Bids Mailed to Builder’s 8
Exchanges
Total Days to Respond to Bid 21
Pre-Bid Meeting?Yes
Number of Company Attendees at 7
Pre-Bid Meeting
Number of Bids Received:4
Bid Price Range From a low of $1,771,481.00 to a high of $2,541,025.00
*Bid summary provided in Attachment B.
Staff has reviewed all bids submitted and recommends that the bid of $1,771,481 submitted by
West Valley Construction Company, Inc. be accepted and that West Valley Construction
Company, Inc. be declared the lowest responsible bidder. The bid is 0.1 percent below the
staff/engineer’s estimate of $1,772,934. The change order amount of $177,148 which equals 10
percent of the total contract is requested for additional unforeseen work that may develop during
the project.
Staff conftrrned with the Contractor’s State License Board that the contractor has an active
license on file. Staff checked references supplied by the contractor for previous work performed
and found no significant complaints.
PROJECT COORDINATION
The work was coordinated with the Public Works Department at the monthly Utilities/Public
Works department coordination meetings by use of the GIS project coordination pro~am.
Additionally, the gas main crossing Alma from West Charleston to East Charleston under the
railroad right-of-way has been coordinated with the CharlestordArastradero Corridor Trial
project currently under way with Transportation and Public Works. Because the fast track
schedule for the CharlestordArastradero Corridor Trial requires that the resurfacing and
restriping occur in this area before the start of the school year, some of the gas main work may
take place after the trial is in place. This will be communicated to the school, neighborhoods and
other affected project stakeholders and every effort will be made to minimize any inconvenience
this may cause. The fast track schedule has also caused some previously coordinated work on a
water utility project to be out of sync with this project at the intersection of Park Boulevard and
West Charleston Road. The water main in this intersection will not be replaced until after the
project is bid in November 2006.
CMR:291:06 Page 2 of 3
RESOURCE IMPACT
Funds for this capital project are included in the FY 2005/06 Gas Fund as Project GS-05002.
The quantity of mains and services installed under this contract are beyond the City’-s existing
personnel and equipment capacities. This project includes funding transfers of $72,210 to the
General Fund for Trench Impact Fees. Funds for Trench Impact Fees for this project are
included in the FY 2005/06 Utilities Department budget.
POLICY IMPLICATIONS
The approval of this contact is consistent with existing City policies. This recommendation is
consistent with the Council-approved Utilities Strategic Plan Key Strategy No. 1, "Operate
distribution system in a cost effective manner," Strateg2¢ No. 7, "Implement programs that
improve the quality of the environment" and Objective No. 2, "Invest in utility infrastructure to
deliver reliable service."
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Sections 15301 (b) repair, maintenance of existing facilities and
!5302 (c) replacement or reconstruction of existing facilities.
ATTACHMENTS
A: Contract
B: Bid Summary
C: Project Map
PREPARED BY:
DEPARTMENT HEAD:
Aleksandr Pishchik, Project Engineer
Greg Scoby, Project Manager
Roger Cwiak, WGW Engineering Manager
Acting Assistant Director, Engineering
CITY MANAGER APPROVAL:
EM
Assistant City Manager
CMR:291:06 Page 3 of 3
Attachment A
CONTRACT No.
(Public work)
Utilities Department
This Contract, number x dated x . is entered into by and between the City of Palo Alto, a chartered city and
a municipal corporation of the State of Califomia ("City"), and West Valley Construction Company, Inc. 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 eadier termination of this
Contract.
General Scope of Proiect and Work. Contractor shall fumish 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 Replacement 15, Invitation for Bids (IFB) No. 116894
Bid:$1,771,481.00
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.
a. This Contract.
g.
h.
I.j.
k.
Invitation for Bid.
Project Specifications.
Drawings.
Change Orders.
Bid.
Supplementary Conditions.
General Conditions.
City of Palo Alto Dept. of Public Works Standard Drawings and Specifications (1992).
Certificate of Insurance, Performance Surety Bond, Labor & Materials (Payment) Surety Bond.
Other Specifications, or part thereof, not expressly incorporated in the Contract Specifications or the
City of Palo Alto DepL of Public Works Standard Drawings and Specifications (1992).
Any other document not expressly mentioned herein which is issued by City or entered into by the
par’des.
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 City of Palo Alto Dept. of Public Works 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 Invitation For Bid on terms and conditions and in amounts as may be required bythe
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 16 of this
CITY OF PALO ALTO IFB 116894
rev. 12/00
PAGE 1 OF 7
7o
o
10.
11.
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 adsing 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, off~cers and employees from and against any and all claims, demands, liabilities, losses,
damages, costs, expenses, liens, penalties, suits, or judgments City may incur, adsing, 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 UoS.C. ~9601-6975,
as amended); the Resource Conservation and Recovery Act (42 U.S.C. ~3)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, ~25!00-25250.25, 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.
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 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.
No Exoneration By Inspection: The City has the dght, but not the duty, to inspect Contractor’s Work. The dght
of inspection is solely for the benefit of City. Contractor has the obligation to complete the Work in a
satisfactory manner in compliance with Contract requirements. The presence of a City inspector does not shift
that obligation to the City or relieve Contractor from its obligations to complete the Work in a satisfactory
manner in compliance with the Contract requirements.
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 bid secudty 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 in employment and hazardous materials.
Bid Security Bonds. As a condition precedent to City’s obligation to pay compensation to Contractor, and on or
before the Date of Execution, Contractor shall fumish to the Project Manager the Bid Secudty as required under
the Invitation For Bid.
CITY OF PALO ALTO IFB 116894 PAGE 2 OF 7
rev, 12/00
12.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 paddcular purpose for which the materials are
required;
Co 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 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 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 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;
Contractor and any person pedorming 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.
13.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.
14.Claims of Contractor. All claims pertaining to extra work, additional charges, or delays within the ContractTime
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.
15.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
CITY OF PALO ALTO IFB 116894 PAGE 3 OF 7rev. 12/00
16.
and Work-related writings and business records, as such terms are defined in Califomia Evidence Code.
Sections 250 and 1271, as amended, during the regular business hours of Contractor, or, if Contractor has no
such hours, dudng 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,:City of Palo Alto
Dept- Utility
Division - Engineering
Address- 1007 Elwell Court
Palo Alto, CA 94303
Greg Scoby, Project Manager
To Contractor:West Valley Construction Company, Inc.
17.
18.
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 17 shall control in the event of a conflict with any other provision of this contract.
Miscellaneous.
ao 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 govemed 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 City of Palo Alto Dept. of Public
Works Standard Drawings and Specifications (1992) of this Contract are incorporated herein by
reference.
e.Force Majeure. Neither part~ 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
CITY OF PALO ALTO IFB 116894 PAGE 4 OF 7rev. 12/00
go
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 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 Agreemento 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.
Statu~; 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 dghts 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.
Alternative Dispute Resolution. The parties shall endeavor to resolve any disputes or claims arising
out of or relating to this Contract by mediation, which, unless the parties agree otherwise, shall be
conducted under the auspices of the Judicial Arbitration and Mediation Service (JAMS), San Jose,
California. The intent of the parties is that the mediation shall proceed in advance of litigation;
however, if any party should commence litigation before the conclusion of mediation, such litigation,
including discovery, shall be stayed pending completion of mediation, and by executing this Contract
the parties stipulate to mediation in accordance with Santa Clara county Superior Court Local Rule
1.15 or Rule 2-3(b) of the ADR Local Rules of the U.S. District Court for the Northern District of
California, as such rules may be amended from time to time. The parties shall share the cost of the
mediation, including the mediator’s fee, equally. Any written agreement reached in mediation shall be
enforceable pursuant to Califomia Code of Civil Procedure § 664.6, as amended.
Venue. Unless the parties mutually agree otherwise, mediation shall take place in San Jose,
California. In the event that litigation is commenced by any party hereunder, the parties agree that
such action shall be vested exclusively in the state courts of California in the County of Santa Clara or
in the United States District Court for the Northern District of California.
CITY OF PALO ALTO IFB 116894 PAGE 5 OF 7rev. 12/00
So
Recovery of Costs. Each Party shall bear its own costs, including attorney’s fees, through the
completion of mediation. If the claim or dispute is not resolved through mediation, or if litigation is
necessary to enforce a settlement reached at mediation pursuant to California Code of Civil Procedure
§ 664.6, as amended, then the prevailing party in any Subsequent litigation may recover its reasonable
costs, including attomey’s fees, incurred subsequent to conclusion of the mediation.
Flow-down. Contractor agrees to include provisions of this Contract relating to Alternative Dispute
Resolution, Venue. and Recovery of costs in any subcontracts or major material purchase
agreements which it enters into in connection with this contract, and to require its subcontractors to
include those provisions in any sub-contracts or major matedal purchase agreements, such that any
mediation or litigation of any claim or dispute asserted by a subcontractor or major material supplier
will be consolidated with any related claim or dispute between the Contractor and the City. Should the
Contractor fail to do so, such that the City is required to defend an action brought by a subcontractor
or material supplier inconsistent with the Altemative Dispute and Venue provisions of this Contract,
Contractor shall indemni~ City for City’s costs of defense, including reasonable attorney’s fees.
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.
APPROVED ASTOFORM:CITY OF PALO ALTO
Senior Assistant City Attorney Assistant City Manager
APPROVED:CONTRACTOR:
Director of Administrative Services
By:.
Name:
T~tle:
Name:
Title:
(Compliance with California Corporations Code ~ 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 116894 PAGE 6 OF 7
rev, 12/00
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code ) 1189)
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.
Signature (Seal)
CITY OF PALO ALTO IFB 116894 PAGE 7 OF 7rev. 12/00
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ATTACHMENT "C"
PROJ ECT LOCATION
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ATTACH M ENT "C"
PROJECT LOCATION
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ATTACHMENT "C"
PROJ ECT LOCATION
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