HomeMy WebLinkAbout2000-06-26 City Council (19)City of Palo Alto
ReP0rt 9
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:JUNE 26, 2000 CMR:299:00
SUBJECT:AWARD OF CONTRACT TO UNDERGROUND
CONSTRUCTION CO., INC., FOR 2000-2001 UTILITY
TRENCH AND SUBSTRUCTURE INSTALLATION
RECOMMENDATION
Staff recommends that Council:
.3.
Approve and authorize the Mayor to execute the attached contract
with Underground Construction Co:, Inc. in the amount of $717,925
for 2000-2001 utility trench and substructure installation.
Authorize the City Manager or his designee to negotiate and execute
one or more change orders to the contract to cover additional but
unforeseen work which may develop during the project. The value
of such change orders shall not exceed $72,000.
Authorize the City Manager or his designee the option of renewing
the contract for up to two additional 12 month periods at a cost of
$717,925 each.period for a total contract price of $2,153,775, if the .
contractor is responsive to the contract requirements, and the quality
of the work is acceptable during the preceding 12 months of the
contract.
DISCUSSION
Project Description
The Electric Utility establishes an annual contract with a general contractor to dig
trenches and install conduits for electric utility customer services, small
extensions, replacements to the existing underground electric system; and to install
communications, street light, traffic signal, and fiber optic conduits and
foundations. Each small job is individually quOted, a price agreed .upon, and
payment made upon completion of work.
CMR:299:00
Bid Process
A notice inviting formal. bids for 2000-2001 utility trench and substructure
installation was sent on May 15, 2000 to seven contractors and six builder
exchanges. The bidding period was 23 days. Bids were received from four
qualified contractors on June 6, 2000. Bids ranged from $717,925 to $1,277,250
(See Attachment "A"). Contractors not responding indicated that they did not
submit bids because they were too busy at the present time to take on new projects,
do not provide the required service, are too far away to be profitable, or do not
have a local office in the area.
Staff has reviewed all bids submitted and recommends that the bid of $717,925
submitted by Underground Construction Co., Inc. be accepted and that
Underground Construction Co., Inc. be declared the lowest responsible bidder.
The low bid is 2.6 percent higher than the engineer’s estimate of $700,000. The
change order amount of $72,000, which equals 10 percent of the total contract, is
requested to cover the cost of additional but unforeseen work Which may develop
during the project and at the same time meet customer connection requests.
Underground Construction Co., Inc. has been working under a similar contract
with the City for the last three years and has performed very well. Staff checked
references provided by the contractor for previous work performed and found no
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 this project are available in the FY 2000-01 Electric Capital
Improvement Program (CIP) Budget. This action has no impact on the utilities
construction work force, since it is being performed by an outside contractor.
POLICY IMPLICATIONS
The award of this contract does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act
(CEQA).
CMR:299:00 Page 2 of 3
ATTACHMENTS
Attachment "A":
Attachment "B":
Bid Summary
Contract
PREPARED BY: Sager Farraj, Senior Power Engineer
DEPARTMENT HEAD APPROVAL:
Director
CITY MANAGER APPROVAL:
EI~IILY HARRISON
Assistant City Manager
CMR:299:00 Page 3 of 3
CONTRACT
(Public Work)
This Contract; number 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
Underground Construction Co., Inc., a Delaware, ("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 Project 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:
Project Title: 2000-01 Utility Trench & Substructure Installation, Invitation For Bid (IFB)
Number 126141
Total Bid:$ 717,925.00
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.
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).
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Any other document not expressly mentioned, herein which is issued by City or
entered into by the parties. ’
Compensation. In co~nsideration of Contractor’s performance of its obligations hereunder,
City shall pay to Contractorthe amount set forth in Contractor’s Bid in accordance with the
provisions af. 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 personal property of any person
performing labor or services or supplying materials or equipment under the Project.
Contractor shall fumish City with the certificates of insurance and with original endorsements
affecting coverage required under this Contract on or before the Date of Execution. The
certificates and endorsements for each insurance policy shall be signed by a person who
is authorized by that insurer to bind coverage in its behalf. Proof of insurance shall be
mailed to the Project Manager to the address set forth in Section 15 of this Contract.
Indemnification. Contractor agrees to protect, defend, indemnify and hold City, its Council
members, officers, employees, agents and representatives harmless from and against any
and all claims, demands, liabilities, losses, damages, costs, expenses, liens, penalties, suits,
or judgments, arising, in whole or in part, directly or indirectly, at any time from any injury to
or death of persons or damage to property as a result of the willful acts or the negligent acts
or omissions of Contractor, or which results from Contractor’s noncompliance with any Law
respecting the condition, use, occupation or safety of the Project site, or any part thereof,
or which arises from Contractor’s failure to do anythin, g 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-
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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 proper~jt of Contract.or which may occur in, on, or about the. Project
site at any time and in any manner, ex~:epting 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
membersl 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 stdct compliance with the covenants, terms and conditions
of this Contract.
Compliance with Lawsl 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.
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.
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;
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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 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;
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Any manufacturer’s warranty obtained by Contractor shall be obtained or shall be
deemed obtained by Contractor for and in behalf of City.
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Any information submitted by Contractor prior to the award of Contract, or thereafter,
upon request, whether or not submitted under a continuing obliga.tion 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 ind’irecily,’with "an~,
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;
ko 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.
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 submitted by
Contractor to City in wdting by certified or registered mail within ten (10) Days after the claim
arose or within such other time as may be permitted or required by law, and shall be
described in sufficient detail to give adequate notice of the substance of the claim to City:
Audits by City. During the term of thisContract and for a period of not less than three (3)
years after the expiration or earlier termination of this Contract, City shall have the right to
audit Contractor’s Project-related and Work-related writings and business records, as such
terms are defined in California Evidence Code Sections 250 and 1271, as amended, during
the regular business hours of Contractor, or, if Contractor has no such hours, during the
regular business hours of City.
Notices. All agreements, appointments, approvals, authorizations, claims, demands,
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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 pa .r~y if (1) personally served, (2) sent by the United States mail, postage prepaid,
(3) sent by private,expre.ss delivery service, or (4) in the case of a facsimile transmission,
if sent to the telephone FAXnumber set forth belo~v during "~’egelar busines.s hours of t,h.e. -
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 Ave
P.O. Box 10250
Palo Alto, CA 94303
Attn: Sager Farraj, Project Manager
16.
17.
To Contractor:Underground Construction Company
PO Box 2000
5145 Industrial Way
Benicia, CA 94510
Attn: Juan J. Flores, Project Engineer
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 confl|ctwith any other
provision of this Contract. "
Miscellaneous.
Bailee Disclaimer. The parties understand and agree that City does not purport to
be ContractoCs 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.
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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 (~f the Standard
Dra~wings and Specifications (1992) ~)f"this Contract are incorporated herein by
reference.
Force Majeure. Neither party shall be deemed to be in default on account of any
delay or failure to perform its obligations under this Contract which directly results
from an Act of God or an act of a superior governmental authority.
Headings. The paragraph headings are not a part of this Contract and shall have
no effect upon the construction or interpretation of any part of this Contract.
Incorporation of Documents. All documents constituting the Contract documents
described in 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 modifi(;d 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 othenNise 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.
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.
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Oo 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 asa legal holiday.by City, the .time for performance shall be extended to
the following Business Day.
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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 ac{ion brought to enforce the terms
of this Contract or arising out of this Contract may recover its reasonable costs,
including reasonable attorney’s fees, incurred or expended in connection with such
action against the non-prevailing party.
IN WITNESS WHEREOF, the parties have by their duly appointed representatives executed this
Contract in the cityof 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
Di.rector of Utilities
Director of Administrative Services
Contract Manager (Insurance Rev ew)
CONTRACTOR:
Name: /JJ~es" H.-Cur~
Title:Vice President
Name:Ann-Marie Talbot
Title:Chief Financial Officer
(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)
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CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF California
COUNTY OF Solano
On June 15, 2000 , before me, Deborah F. Warwick
, a notary public in and for said County, personally appeared
James ]-[, Curry and _/Lrm-Narie Ta~lbot ’
, 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 hie/her/their authorized capaci~j(ies), and that by-his/~,er/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)
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