HomeMy WebLinkAbout2002-10-21 City Council (9)City of Polo Alto
C ty Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
1 5CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:OCTOBER 21, 2002 CMR:425:02
SUBJECT:AWARD OF CONTRACT TO K. J. WOODS CONSTRUCTION,
INC. IN THE AMOUNT OF $258,141 FOR STORM DRAIN
UPGRADES AT CHARLESTON ROAD/PARK BOULEVARD,
CHANNING AVENUE/HEATHER LANE, AND KENDALL
AVENUE/WHITSELL AVENUE -CAPITAL IMPROVEMENT
PROJECT 47716
RECOMMENDATION
Staff recolnmends that Council:
Approve and authorize the Mayor to execute the attached contract with K. J.
Woods Construction, Inc. in the amount of $258,141 for Storm Drain Upgrades at
Charleston Road/Park Boulevard, Channing Avenue/Heather Lane, and Kendall
Avenue/Whitsell Avenue - Capital Improvement Project 47716.
Authorize the City Manager or his designee to negotiate and execute one or more
change orders to the contract with K. J. Woods Construction, Inc. for related,
additional but unforeseen work that may develop during the project for a total
value not to exceed $26,000.
DISCUSSION
Prqiect Description
The work to be performed under the contract (which includes the base bid items plus the
first two add alternate bid items) includes the installation of new catch basins, manholes
and storm drain piping to correct chronic ponding on West Charleston Road just west of
the Caltrain right-of-way. The work also includes the installation of new storm drain
piping and manholes on Channing Avenue to improve chronic ponding on Walter Hays
Drive. Modifications to the sanitary sewer system will also be constructed in order to
provide clearances needed for the installation of the new storm drain on Channing
Avenue. Add alternate bid items to be awarded include (see Project Location Map -
Attachment B):
filling an abandoned storm drain on Park Boulevard to prevent future collapse
CMR:425:02 Page 1 of 3
eliminating a storm drain pipeline bottleneck on Kendall Avenue.
Bid Process
A notice inviting formal bids for Storm Drain Capital Improvement Project 47716 was
sent on September 16, 2002 to ten builders’ exchanges andeighteen contractors. No pre-
bid meeting was held for this project.
The bidding period for this .project was 22 calendar days and bids were received from
four contractors on October 8, 2002, as listed on the attached bid summary (Attachment
C). Bids ranged from a low of $258,141 to a high of $354,100. Staff reviewed all bids
and recommends that the bid of $258,141 submitted by K. J. Woods Construction, Inc. be
accepted and that K. J. Woods Construction, Inc. be declared the lowest responsible
bidder. The low bid is 11.5 percent below the engineer’s estimate of $291,800. The
change order amount of $26,000 equals 10 percent of the total contractamount and is
requested to cover related, additional, but unforeseen work that Nay l develop during the
-project.
Staff checked references supplied by the contractor for previous work performed and
received mostly positive feedback regarding the contractor’s past performance. Staff also
checked with the Contractor’s State License Board and found that the contractor has an
active license on file and is in good standing with the Board:
One of the other bidders for this project submitted a letter protesting the award of the
contract to K. J. Woods Construction, Inc. on the grounds that Woods allegedly did not
list all of the subcontractors that would be needed on the p~oject. The project
specifications and the Public Contract Code require, bidders to include with their bid the
names and business addresses of each subcontractor performing work that has a value in
excess of one-half of one percent of the total proposal price. K. J. Woods Construction,
Inc. listed an asphalt concrete paving company on their bid proposal as the only
subcontractor for this project. When asked to clarify this issue, K. J. Woods
Construction, Inc. submitted a letter stating that the work that the protesting bidder
contended would need to be subcontracted will be performed by their own forces or falls
within theone-half of one percent threshold. This is consistent with Public Contract
Code Section 4106 which states that if a contractor does not specify a subcontractor to
perform work in excess of one-half of one percent of the total project, then the contractor
agrees that it is qualified to and shall perform that work. Based on a review of relevant
law and the bid submitted by the contractor, staff has concluded that there are no grounds
which would prohibit the City from declaring K. J. Woods Construction, Inc. to be the
lowest responsible bidder and awarding the contract to them.
RESOURCE IMPACT
Funds for this project are available in the Storm Drainage Fund, collection system
improvements maj or activity budget.
CMR:425:02 Page 2 of 3
ENVIRONMENTAL REVIEW
The project is categorically exempt from the provisions of the California Environmental
Quality Act (CEQA).
ATTACHMENTS
Attachment A:Contract
Attachment B:Project Location Map
Attachment C:Bid Sumlnary
PREPARED BY:Joe Teresi, Senior Engineer
Matt Raschke, Engineer
DEPARTMENT HEAD:
J. MICHAEL SARTOR
Assistant Director of Public Works
CITY MANAGER APPROVAL:
City Manager
CMR:425:02 Page 3 of 3
ATTACHMENT A
FORMAL CONTRACT
CONTRACT No. C3147086
(Public Work)
Public Works Department
SECTION 500
This Contract, number C3147086 dated ~s entered into by and between the City of Palo Alto, a chartered
city and a municipal corporation of the State of California ("City"), and KJ Woods 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 the Notice of Substantial Completion, or, if no such notice is
required to be filed, on the date that final payment is made hereunder, subject to the earlier termination of this
Contract.
General Scope of Proiect and Work. Contractor shall furnish labor, services, materials and equipment in
connection with the construction of the Project and complete the Work in accordance with the covenants, terms
and conditions of this Contract to the satisfaction of City. The Project and Work is general!y described as
follows:
Title of Project:Storm Drain Capital Improvement, Invitation for Bid (IFB) Number 147086.
Bid:$258 141 (This total includes Base Bid #1 & #2, plus Add Alternate #1 & #2)
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.
This Contract.
Invitation for Bid,
Project Specificatic ns.
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 Bond, Labor & Materials (Payment) Bond.
Other Specifications, or part thereof, not expressly incorporated in the Contract Specifications or the
City of Palo Alto, Dept. 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
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 a 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 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 a nd with onginal endorsements affecting
coverage required under this Contract on or before the Date of Execution. The certificates and endorsements
for each insurance policy shal be signed by a person who is authorized by that insurer to bind coverage in its
behalf. Proof of insurance shal be mailed to the Project Manager to the address set forth in Section 16 of this
Contract.
CITY OF PALO ALTO IFB 147086
rev. 12/00
PAGE1 OFt
FORMAL CONTRACT SE_CTION 500
9o
10.
11.
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 net ~o do under this Contract, or which arises ~rom 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 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, ’n whole or ~n 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. 999601-6975,
as amended); the Resource Conservation and Recovery Act (42 U.S.C. 996901-6992k, 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 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 stridt 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 dght
of inspection ls 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 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 Pro]ect site, and with all Laws
pertaining to nondiscrimination in employment and hazardous materials.
Bonds. As a condition precedent to City’s obligation to pay compensation to Contractor, and on or before the
Date of Execution, Contractor sha! furnish to the Pro.iect Manager the Bonds as required under the nvitation
For Bid.
12.Representations and Warranties.
CITY OF PALO ALTO IFB 147086
rev. 12/00
n the supply of any materials and equipment and the rendering of labor and
PAGE 2 OF /
FORMAL CONTRACT SECTION 500
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;
Co
Any material.~ and equipment which shall be used during the course and scope of the Project and
Work shall be merchantable and fit to be used for the particular purpose for which the materials are
required;
Any labor and services rendered and materials and equipment used or employed during the course
and scope of the Project and Work shall be free 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;
go
h°
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;
k=
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
13.
14.
15.
Contractor has fully examined and inspected the Project site and has full knowledge of the physical
conditions of the Project site.
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.
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 s~Jbmitted 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
[equired 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 ir~ California Evidence Code
CITY OF PALe ALTO IFB 147086 PAGE 3 OF /
rev. 12/O0
FORMAL CONTRACT SECTION 500
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 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) inthe 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
Public Works Department
Engineering Division
250 Hamilton Avenue
Palo Alto, CA 94301
To Contractor:
Attn: Joe Teresi, Project Manager
KJ Woods Construction, Inc.
2625 Judah Street #2
San Francisco, CA 94122
17.
Attn: Kieran Woods
Appropriation of Cib/Funds. This Contract is subject to the fiscal provisions of Article Ill, 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
18.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 City of Palo Alto, Dept. of Public
Works Standard Drawings and Specifications (1992)of this Contract are incorporated herein by
reference.
CITY OF PALO
rev. t 2/00
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.
ALTO IFB 147086 PAGE 4 OF 7
FORMAL CONTRACT SECTION 500
Headings. The ~aragraph 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 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 con ditions.
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.
mo
n°
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 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 shal 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 r~les 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 147086
rev. 12/00
PAGE 5 OF t
SECTION 5OO
FORMAL CONTRACT ’
.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 prevailing party in any subsequent litigation may recover its reasonable
costs, including attorney’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 d spute asserted by a subcontractor or major material supplier
will be consolidated with any related claim or dispu[e 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 Alternative 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 appointedrepresentativesexecuted this Contract in the city of
Palo Alto, County of Santa Clara, State of California on the date first stated above.
ATTEST:
APPROVED ASTO FORM:
City Clerk
CITY OF PALO ALTO
By:
Its Mayor
Senior Assistant City Attorney
APPROVED:CONTRACTOR:
Assistant City Manager
Director of Public Works
Director of Administrative Services
Contract Manager (Insurance Review)
By:
Name:
Title:
By:
Name:
Title:
(Compliance with California Corporations Code § 313 is requl red
if the entity on whose behalf this contract is signed is a
corporation. In the alternative, a certified corporate resolution
attesting to the signatory authorityof the individuals signing in
their respective capacities is acceptable)
CITY OF PALO ALTO IFB 147086
rev. 12/00
PAGE 6 OF 7
FORMAL CONTRACT SECTION 500 ,
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) who~e name(s) is/are
subscribed to the within instrument and~knowledged 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 147086
rev. 12/00
PAGE 7 OF t
LO CAT~I O_~_N MAP
~TTACHMENT B
DO @0~9~~~ ~
t ,~,i ~ BASE mD
W CHARLESTON RD
~~~%.~ £1 ~ %~ ADD ALTERNATEtt ~_¢KENDALL AVE
a~b ~ ClP 47716 ATTACHMENT
STORM DRAIN CAPITAL IMPROVEMENT ~.,~.,~ ~,
MAR BM
Drown By :Cote :
MAR 10/09/02
Checked By :FILE:
ATTACHMENT C