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HomeMy WebLinkAbout2001-02-20 City Council (23)TO: FROM: DATE: SUBJECT: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS FEBRUARY 20, 2001 CMR:121:01 AWARD OF CONTRACT TO POWER ENGINEERING CONTRACTORS, INC. IN THE AMOUNT OF $838,700 FOR THE ASH HANDLING SYSTEM MODIFICATION PROJECT AT. THE REGIONAL WATER QUALITY CONTROL PLANT (WASTEWATER TREATMENT CAPITAL IMPROVEMENT PROGRAM .PROJECT 8021) 7 RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute the attached contract with Power Engineering Contractors in the amount of $838,700 for the Ash Handling System Modification project at the Regional Water Quality Control Plant (RWQCP). Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Power Engineering Contractors for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $76,000 DISCUSSION Project Description The work to be performed under this contract is to replac’e the existing ash handling system with a new system of improved design at the RWQCP. This project is part of the RWQCP’s planned equipment replacementprogram. The existing ash handling system was installed in 1970. After thirty years of continuous operation, the equipment has corroded severely and now requires replacement. In hddition, staff has improved the design of the system at very little added, cost. The existing design requires plant personnel to manually load the ash into bags. The manual bagging operation is a very time consuming and tedious process. The bags also create dust, transportation and disposal problems. The new design incorporates automatic conveyors and CMR:121:01 Page 1 of 3 a loading spout to allow loading of the ash into enclosed trucks. The new system includes crushers to crush large formations of "ash rocks" into even sized grains, thus providing a better quality ash for reuse. The current reuse of the ash is mainly for soil amendment. A better quality ash, and a flexible means of transportation can potentially widen the reuse market, such as reuse of ash for paving stones. Bid Process A notice inviting formal bids .for the Ash Handling System Modification project was sent on December 6, 2000 to six contractors. The bidding period was 41 days. A mandatory prebid meeting was held on December 19, 2000. Three bidders attended the meeting. Bids were received from three qualified contractors on January 16, 2001, as listed in the bid summary .Attachment B. Contractors not responding indicated that they did not submit a bid because of other project commitments. Bids received ranged from $838,700 to $914,000. Staffrecommends that the bid of Power Engineering Contractors be accepted and that Power Engineering Contractors be declared the lowest responsible bidder. At $838,700, the bid. is fifteen percent above staffs estimate of $725,000. The higher price is due in part to staffs under estimation of the price index in anticipation of a construction/economic slow down. The suppliers also indicated that there is a significant increase in the material cost due to higher manufacturing costs. A change order in the amount of $76,000 (9 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 Funds for the Ash Handling System Modification Project at the Regional Water Quality Control Plant have been appropriated under the 2000-01 Wastewater Treatment Capital Improvement Program project 8021. POLICY IMPLICATIONS Recommendations of this staff report are consistent with City policies. ENVIRONMENTAL REVIEW This project is an equipment replacement project and is categorically exempt from the California Environmental Quality Act. ~ATTACHMENTS Attachment A:Contract Attachment Bi Bid Summary CMR: 121:01 Page 2 of 3 PREPARED BY:Daisy Stark, Senior Engineer Bill Miks, Manager WQCP DEPARTMENT HEAD:. ~ GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: AUDREY Assistant to the City Manager CMR: 121:01 Page 3 of 3 ATTACHMENT A FORMAL CONTRACT CONTRACT No. Cl131545 (Public Work) SECTION 500 This.Contract, number Cl131545 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 Power Enqineerinq Contractors, Inc., a California Corporation, (~’Contractor"). For and in consideration of the covenants, terms, and conditions ("the prov s ons") of this Contract, City and Contractor ("the parties") agree: 1.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 SCODe 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 follows: Title of Project:Aash Handling System Modifications Total Bid:$761,500 for the basic contract work, and $77,200 for add alternate works, a total contract of $838,700. Note that add alternate works shall begin only upon written approval from the City. 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 ofconstruing, 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 Specifications. Drawings. Change Orders. Bid. Supplementary Conditions. General Conditions. 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 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 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 by the Risk Manager. City shall not be obligated to take out insurance on Contractor’s personal property or the CITY OF PALO ALTO 131545 PAGE 1 OF8 FORMAL CONTRACT SECTION 500 personal property of any person performing labor or services orsupplying 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 fromany 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 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 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. 10. 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 ~epresentatives. 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. 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 prevision 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. Bonds. As a condition precedent to City’sobligation 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 CITY OF PALO ALTO 131545 PAGE 2 OF8 FORMAL CONTRACT For Bid. SECTION 500~ 11.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, Cqntractor represents and warrants: bo .f. 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 particular purpose for which the materials are required; Any labor and~service~ 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 cor(ect 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 I~nowledge of the physical conditions of the Project site. 12. 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. 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 CITY OF PALO ALTO 131545 PAGE 3 OF8 FORMAL CONTRACT SECTION 500 required by law, and shall be described in sufficient detail to give adequate notice of the substance of the claim to City. 14.Audits bv 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 ProjectLrelated 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 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 to:City of Palo Alto Public Works Department- PARWQCP 2501 Embarcadero Way Palo Alto, CA 94303 Attn: Daisy Stark, Project Manager To Contractor:Power Engineering Contractors, Inc. 1500 Ferry Point, Suite 200 Alameda, CA 94501 Attn: David Mik, Project manager 16.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 16 shall control in the event of a conflict with any other provision of this Contract. 17.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. VVhenever 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. CITY OF PALO ALTO 131545 PAGE 4 OF8 FORMAL CONTRACT d. eo SECTION 500 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. 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 theContract documents described in Section 3 hereof and all d0cuments 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. r13. Integration. This Contract and any amendments hereto between the parties constitute the entire agreement between the parties conceming 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 0r 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. Status of Contractor. In the exercise of dghts 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 e~ployeesof 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. 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 District Court for the Northern District of California in the City of San Jose. 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. CITY OF PALO ALTO 131545 PAGE 5 OF8 FORMAL CONTRACT SECTION 500 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 OF PALO ALTO City Clerk By: Its Mayor APPROVED AS TO FORM: Senior Assistant City Attorney APPROVED: Assistant City Manager COMPANY By: Director of Public Works Director of Administrative Services Contract Manager (Insurance Review) Name: Title: By: Name: Tile: (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 131545 PAGE 6 OF8 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 , persona!ly 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/hedtheir 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 131545 PAGE 7 OF8 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) 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 131545 PAGE 8 OF8 ATTACHMENT B