HomeMy WebLinkAbout2003-07-28 City Council (8)TO:HONORABLE CITY COUNCIL
9
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
JULY 28, 2003 CMR: 260:03
APPROVAL OF A CONTRACT WITH TRINET
CONSTRUCTION, INCORPORATED FOR WATER AND
WASTEWATER OPERATIONS SER~CES CONTRACT IN THE
AMOUNTS OF $439,000 FOR FISCAL YEAR 2003/04, $442,000
FOR FISCAL YEAR 2004/05, AND $444,000 FOR FISCAL YEAR
2005/06
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached three year contract with
Trinet Construction, Inc. in the amount of $439,000 (FY 2003/04), $442,000 (FY
2004/05), $444,000 (FY2005/06) for water and wastewater construction services.
Authorize the City Manager or his designee to negotiate and execute one or more
change orders to the contract with Trinet Construction, Inc. for related, additional
but unforeseen work which may develop during t he p roj ect, t he total value o f
which shall not exceed $43,500 (FY 2003/04), $43,500 (FY 2004/05), $44,000
(FY2005/06).
Authorize the City Manager or his designee to exercise the option to renew the
contract for the (second and!or third year), provided the funds are appropriated in
the budget for subsequent fiscal years and the contractor is responsive to the
City’s needs, and the quality of the contractor’s work/product is acceptable during
the first year of the contract (and/or other conditions which will determine the
City’s willingness to renew the contract).
CMR:260:03 Page 1 of 4
DISCUSSION
Project Description
The work to be performed under the contract is for emergency and/or critical
rehabilitation of various components of the City of Palo Alto’s water and wastewater
system. The water work includes installing or replacing water services, fire hydrant
assemblies, mainlines, gate valves, blow-off assemblies, air release assemblies, and
line stops. The wastewater work includes installing or replacing manholes, laterals,
cleanouts, and mainlines. The contract will be for three years, subject to Council
approval of the budget for the work each fiscal year and satisfactory contractor
performance.
Description of Bid Process
The bid process used to solicit bids for this proposed three-year contract is slightly
different than the City’s usual bid procedure for invitations for bids (IFB). Due to the
uncertainty of the quantities of emergency work the contractor may be asked to
perform under this contract, the bid item quantities were increased to include the
maximum quantity of that bid item work that may occur as part of the contract within
any given fiscal year. The bidders were informed that the maximum amount of all bid
items would not be used in any of the fiscal years because of the City’s limited budget.
Bidders were informed that the City’s proposed total budget for each of the fiscal years
was $439,000 (FY 2003/04), $442,000 (FY 2004/05), and $444,000 (FY2005/06).
The bidders were also informed in the IFB that the total contract for all three fiscal
years may reach $1,325,000 and that the second and third years of the contract would
be subject to Council approval of the contract budget in fiscal years 2004/05 and
2005/06.
The grand total bid is comprised of a base bid for each fiscal year 2003/04, 2004/05
and 2005/06. The bid for each year consists of 36 bid items. The quantity assigned to
each bid item in the base bid reflects the estimated maximum quantity of that bid item
which could be constructed in any one fiscal year. Since this project is for emergency
or other as-needed repair work, not all bid item quantities will be used in each fiscal
year. Therefore, the total bid price of all the bid items exceeds the planned budget for
each fiscal year (see Attachment A). The 3-year wand total bid amount was identified
in the IFB as the dollar amount the City would use to determine the lowest responsible
bidder.
Bid Process
A notice inviting formal bids for a water and wastewater operations services contract
for Fiscal Year’s 2003/04 to 2005/06 was sent on May 27, 2003 to 10 builders’
exchanges and 14 contractors. The notice was also posted at City Hall. The bidding
CMR:260:03 Page 2 of 4
period was 21 days. A pre-bid meeting was held on June 10, 2003; two bidders
attended the meeting. Bids were received from four qualified contractors on June 17,
2003, as listed on the attached bid summary (Attachment A). Bid grand totals ranged
from a high of $4,022,005 to a low of $2,934,200. Contractors not responding
indicated that they did not submit a bid because they are too busy or could not supply
the required bid bond. Staff has reviewed all bids submitted and recommends that the
bid of $2,934,200 submitted by Trinet Construction, Inc. be accepted to establish unit
bid item prices and that Trinet Construction, Inc. be declared the lowest responsible
bidder for each of the three contract fiscal years in the amounts of $439,000 (FY
2003/04), $442,000 (FY 2004/05), and $444,000 (FY2005/06). The bid is 15 percent
below the staff/engineer’s estimate of $3,435,508. Change order amounts of $43,500
(FY 2003/04), $43,500 (FY 2004/05), and $44,000 (FY2005/06), 10 percent per year,
are 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 bid included pricing for a thirty-six (36) month (3-year) agreement. Funds for the
first year of this project are included in the FY2003/04 Water System Improvements
(WS-80014) and Wastewater Collection System Improvements (WC-99013) programs.
POLICY IMPLICATIONS
The approval of this contract is consistent with existing policies. This
recommendation is consistent with the Council-approved Utilities’ Strategic Plan,
especially Supporting Objective #2 -"invest in utility infrastructure to deliver reliable
service" and Key Strategy No.l; operating the distribution system in a cost effective
manner.
ENVIRONMENTAL REVIEW
The recommended action does not constitute a project under the California
Environmental Quality Act. This project constitutes a Class 1 exemption as defined in
Section 15301 of CEQA. Class 1 consists of the operation, repair, maintenance, and
minor alteration of existing facilities of public-owned utilities used to provide electric
power, natural gas, sewerage, or other public utility services.
ATTACHMENTS
A:Contract
B:Bid Summary
CMR:260:03 Page 3 of 4
PREPARED BY:Robert Item, Engineer
Edward Wu, Senior Project Engineer
Roger Cwiak, Engineering Manager
Scott Bradshaw, Assistant Director
DEPARTMENT HEAD:
of Utilities
CITY MANAGER APPROVAL:
SON
Assistant City Manager
CMR:260:03 Page 4 of 4
CONTRACT No. C4151472
(Public Work)
Utilities Department
This Contract, number C4151472 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 Trinet Construction, 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 an annual 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 of Project:Water and Wastewater Operations Services, Invitation for Bid (IFB) Number 151472
Bid:$1,325,00.00
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.
b.Invitation for Bid.
c.Project Specifications.
d.Drawings.
e.Change Orders.
f.Bid.
g.Special Provisions.
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 Contracto¢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 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
Contract.
CITY OF PALO ALTO IFB 151472
rev. 12/00
PAGE 1 OF 7
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 ju’dgments, arising, in whole or in part, directly or
indirectly, at any time from any injury to or death o.f 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 adses from conduct for which any Law may impose sthct 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 Ddnking 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 taw.
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, aoents 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 right, but not the duty, to inspect Contractor’s Work. The right
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.
10.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 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.
11.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.
12.Representations and Warranties. In the supply of any materials and equipment and the rendering of labor and
CITY OF PALO ALTO IFB 151472 PAGE 2 OF 7
rev. 12/00
services during the course and scope of the Project and Work, Contractor represents and warrants:
bo
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 (Judng 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
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 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 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.
13.Assiqnment. 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 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.
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
and Work-related writings and business records, as such terms are defined in California Evidence Code
CITY OF PALO ALTO IFB 151472
rev. 12100
PAGE 3 OF 7
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.
16.Notices. All agree~nents, appointments, approvals, authorizations, claims, demands, Ch&nge 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) personallyserved, (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
Utilities Department
250 Hamilton Avenue
Palo Alto, CA 94303
Attn: Michael Haynes, Project Manager
To Contractor:
17.
18.
Attn:
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.
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. 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.
CITY OF PALO ALTO IFB 151472 PAGE 4 OF 7
rev. 12/00
f.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 Docu~nents. 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 sl~all 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.
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.
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 AD R 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 California 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 151472
rev. 12/00
PAGE 5 OF 7
r.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 pre~iailing party in any subsequent litigation may recover its reasonable
costs, including attom, ey’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 material 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 indemnify 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.
ATTEST:
City Clerk
APPROVED AS TO FORM:
CITY OF PALO ALTO
By:
Its Mayor
Senior Assistant City Attorney
APPROVED:CONTRACTOR:
Assistant City Manager
Director of Utilities
By:
Name
Title:
Director of Administrative Services
Insurance Review
By:
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 capadties is acceptable.
CITY OF PALO ALTO IFB 151472
rev. 12/00
PAGE 6 OF 7
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 151472
rev. 12/00
PAGE 7 OF 7
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