HomeMy WebLinkAboutCC AG PKT 2013-08-12 #HAGENDA STAFF REPORT
DATE: August 12, 2013
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sean P. Crumby, P.E., Director of Public Works
SUBJECT: LAMPSON AVENUE WELL BACKUP POWER
PROJECT NO. WT1102
i
SUMMARY OF REQUEST:
That the City Council adopt Resolution No. 6397:
1. Approving Plans and Specifications for the Larripson Avenue Well Backup
Power Project No.WT1102;
2. Awarding a contract to KDC Inc. dba Dynalectric, in the amount of
$309,000;
3. Authorizing the City Manager to execute the contract on behalf of the City
and approve payments for additional work not to exceed $35,000:
4. Authorize the City Manager to approve payments to Casulas Construction
Services for Inspection services not to exceed $25,000; and
5. Authorize the City Manager to approve payments for construction support
services not to exceed $15,000.
BACKGROUND AND ANALYSIS:
In 2011, the City finished a multi -year construction project on a new water well on
Lampson Avenue. The purpose of this project is to add another source of water
to the City's system. The Lampson Avenue well is the City's only domestic well
located north of the 405 Freeway. The Lampson Avenue well was constructed
with the ability to add a permanent backup power source. This power source
allows the well to remain in operation in the event of a natural disaster or
extended power outage.
The City prepared a bid package and advertised the project in February 2012
and received one bid. On March 11, 2013, the City Council rejected all bids due
to the fact that the low bid was above the approved project budget at that time.
Minor changes were made to the plans in an attempt to reduce the cost of the
overall project while not affecting the overall scope of the work. The project was
re- advertised on July 17, 2013; the City Clerk's office again received and opened
one sealed bid with the following result:
Agenda Item H
# COMPANY NAME BID AMOUNT
1 KDC Inc. dba Dynalectric $309,000.00
Even with lessening the requirements to bidders and sending out invitations to
many qualified companies, only one company was willing to bid on this project.
Staff does not believe that advertising this project a third time will attract other
companies to bid and /or produce a lower bid total. In addition, the current low
bid is more than $30,000 lower than the previously rejected low bid.
Based upon the references, qualifications, work experience and cost of the low
bidder, KDC Inc. DBA Dynalectric, staff has found them to be satisfactory for the
construction of this project and recommends awarding a construction contract in
the amount of $309,000.00.
ENVIRONMENTAL IMPACT:
This project complies with all requirements of the California Environmental
Quality Act and is found to be Categorically Exempt under Section 15301 (A).
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
FINANCIAL IMPACT:
Funds were approved in the 2012 -2013 Fiscal Year Budget for Lampson Avenue
Well Backup Power Project No.WT1102 in the amount of $400,000 and carried
over to the FY 2013 -2014 Budget. The recommended actions include
expenditures as follows:
Item Amount
Construction (award) $309,000.00
Contingency (10 %) $ 35,000.00
Inspection (Casulas Construction Services) $ 25,000.00
Construction Support Services $ 15,000.00
Total $384,000.00
RECOMMENDATION:
That the City Council adopt Resolution No. 6397:
1. Approving Plans and Specifications for the Lampson Avenue Well Backup
Power Project No.WT1102;
2. Awarding a contract to KDC Inc. dba Dynalectric, in the amount of
$309,000;
3. Authorizing the City Manager to execute the contract on behalf of the City
and approve payments for additional work not to exceed $35,000;
Page 2
4. Authorize the City Manager to approve payments to Casulas Construction
Services for Inspection services not to exceed $25,000; and
5. Authorize the City Manager to approve payments for construction support
services not to exceed $15,000.
SUBMITTED BY:
Sean P. C umbm7r-iy, E.
Director of Public Works
Prepared by: David Spitz, Associate Engineer
Attachments:
A. Resolution No. 6397
B. Signed Contract
Page 3
NOTED AND APPROVED:
. Ingram, City Mger
RESOLUTION NUMBER 6397
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING THE CONSTRUCTION CONTRACT FOR LAMPSON
AVENUE WELL BACKUP POWER PROJECT NO. WT1102
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves the plans and specifications for
the Lampson Avenue Well Backup Power Projec No. VVT11O2 dated August 12.
2013 (the "Projecr).
SECTION 2. The City Council he a contract for the Project to KDC
Inc. dba Dynalectric in the amount of $309,000.
SECTION 3. The City Council hereby authorizes and directs the City Manager to
execute the contract on behalf of the City.
SECTION 4. The City Council hereby authorizes the City Manager to approve
payments for additional work requests in connection with the Project in the
cumulative amount of $35,000.
SECTION 5. Authorize the City Manager to approve payments to Casulas
Construction Services for Inspection services not to exceed $25,000.
SECTION 6 Authorize the City Manager to approve payments for construction
support services not to exceed $15,000.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 12Mh day of August .2O13by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
1, Linda Devine, City Clerk of the City of Seal Beach, do hereb certify that the
foregoing resolution is the original copy of Resolution Number 6397 on file in
the office of the City C|erk, paooed, appmved, and adopted by the Seal Beach
City Council at a regular meeting held on the 12th day of August , 2013.
City Clerk
PUBLIC WORKS AGREEMENT
LAMPSON AVENUE WELL BACKUP POWER
PROJECT
CIP NO. WT 1102
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
KDC Inc. dba Dynalectric
4462 Corporate Center Drive
Los Alamitos, CA 90720
(714) 828 -7000
(714) 484 -2394 - FAX
THIS AGREEMENT is made as of August 12, 2013, by and between the City of Seal
Beach, a California charter city ( "City"), and KDC Inc. dba Dynalectric, a General
Contractor ( "Contractor ").
RECITALS
WHEREAS, the City Council has approved the plans and specifications for the
Lampson Avenue Well Backup Power Project No. WTI 102 ("Project") with respect to
design criteria; and
WHEREAS, Contractor has submitted a bid to City for the Project dated July 17,
2013 in the amount of $309,000.00 ("Accepted Proposal" hereinafter). The Accepted
Proposal is attached hereto as Exhibit G and contains, among other things, provisions
defining the Project scope.
NOW, THEREFORE, in consideration of performance by the parties of the
mutual promises, covenants, and conditions herein contained, the parties hereto agree as
follows:
AGREEMENT
Contractor's Services.
1.1 Scope and Level of Services. For and in consideration of the
mutual promises set forth herein, and subject to the terms and conditions set forth in this
Agreement, Contractor shall perform and complete in good and workmanlike manner all
work ("Work") required by this Agreement and the documents listed in Subsection 1.2
for the Project.
1.2 Contract Documents. The "Contract Documents" that comprise
the agreement between the City and the Contractor are the: Notice Inviting Bids,
Instructions to Bidders, Accepted Proposal, Non-Collusion Affidavit, Bid Schedule(s),
List of Subcontractors, Contractor's Industrial Safety Record, Contractor's Qualification
Statement, Bid Security Forms for Check or Bond, Specifications, General and Special
Provisions and documents referenced therein, all addenda as prepared prior to the date of
bid opening setting forth any modifications or interpretations of any of said documents,
this Agreement, Exhibits attached to this Agreement, including but not limited to the
Performance Bond (Exhibit A), Payment Bond (Exhibit B), Workers' Compensation
Insurance Certificate (Exhibit C), Insurance Endorsements (Exhibit D), Acknowledgment
of Penal and Civil Penalties Concerning Contractor Licensing Laws (Exhibit E), Labor
Law Requirements (Exhibit F), Accepted Proposal (Exhibit G) and any and all
supplemental agreements executed amending or extending the Work contemplated and
that may be required to complete the Work in a substantial and acceptable manner. These
Contract Documents are hereby incorporated into this Agreement.
1.3 The Work shall be performed in accordance with the Plans,
Specifications and other Contract Documents. Contractor shall furnish at its own
expense all labor, materials, equipment and services necessary therefor, except such
labor, materials, equipment and services as are specified in the Contract Documents to be
furnished by City.
Page D-2
1.4 In the event of any material discrepancy between the express
provisions of this Agreement and the provisions of the other Contract Documents, the
provisions of this Agreement shall prevail.
2. Effective Date. This Agreement is effective as of August 12, 2013 (the
"Effective Date"), and shall remain in full force and effect until Contractor has rendered
the services required by this Agreement.
3. Payment. For performing and completing the Work in accordance with
the Contract Documents, City shall pay Contractor, in full compensation therefor, the
amount of $309,000.00, subject to any additions and deletions pursuant to the terms of
the Contract Documents. Said sum shall constitute payment in full for all work
performed hereunder, including, without limitation, all labor, materials, equipment, tools
and services used or incorporated in the Work, supervision, administration, overhead,
expenses and any and all other things required, furnished or incurred for completion of
the Work as specified in the Contract Documents. City shall make payments to
Contractor on account of the contract sum at the time, in the manner, and upon the
conditions specified in the Contract Documents. The City Manger may authorize extra
work to fund unforeseen conditions up to the amount approved at the time of award by
the City Council. Payment for additional work in excess of this amount requires prior
City Council authorization.
4. Contractor's Personnel.
4.1 All Work shall be perfolined by Contractor or under Contractor's
direct supervision, and all personnel shall possess the qualifications, permits, and licenses
required by state and local law and by the Notice Inviting Bids/Instructions to Bidders to
perform such Services, including, without limitation, a City of Seal Beach business
license as required by the Seal Beach Municipal Code.
4.2 Contractor shall be responsible for payment of all employees'
wages and benefits, and shall comply with all requirements pertaining to employer's
liability, workers' compensation, unemployment insurance, and Social Security.
Contractor shall fully comply with the workers' compensation law regarding Contractor
and Contractor's employees.
4.3 Contractor shall indemnify and hold harmless City and its elected
officials, officers, employees, servants, designated volunteers, and agents serving as
independent contractors in the role of city officials, from any and all liabilities, damages,
claims, costs and expenses of any nature to the extent arising from Contractor's alleged
violations of personnel practices.
4.4 Contractor is, and shall at all times remain as to City, a wholly
independent contractor. Contractor shall have no power to incur any debt, obligation, or
liability on behalf of City or otherwise act as an agent of City. Neither City nor any of its
agents shall have control over the conduct of Contractor or any of Contractor's
employees, except as set forth in this Agreement. Contractor shall not, at any time, or in
Page D-3
any manner, represent that it or any of its officers, agents, or employees are in any
manner employees of City. Contractor shall pay all required taxes on amounts paid to
Contractor under this Agreement, and indemnify and hold City harmless from any and all
taxes, assessments, penalties, and interest asserted against City by reason of the work
performed pursuant to this Agreement.
4.5 City shall have the right to offset against the amount of any fees
due to Contractor under this Agreement any amount due to City from Contractor as a
result of Contractor's failure to promptly pay to City any reimbursement or
indemnification arising under this Section 4.
5. Indemnification.
5.1 Contractor's Duty. Contractor shall defend, indemnify, and hold
the City, its elected officials, officers, employees, volunteers, agents, and those City
agents serving as independent contractors in the role of City officials (collectively
"Indemnitees ") free and harmless from and against any and all claims (including, without
limitation, claims for bodily injury, death or damage to property), demands, obligations,
damages, actions, causes of action, suits, losses, bid protests, stop notices, judgments,
fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's
fees, disbursements and court costs) of every kind and nature whatsoever (individually, a
"Claim," collectively, "Claims "), in any manner arising out of or incident to the
performance of the Agreement, including without limitation, the payment of all
consequential damages and attorneys' fees and other related costs and expenses. Further,
Contractor shall appoint competent defense counsel, at Contractor's own cost, expense
and risk, to defend any and all such suits, actions or other legal proceedings of every kind
arising out of or incident to the performance of the Agreement that may be brought or
instituted against Indemnitees. Contractor shall pay and satisfy any judgment, award or
decree that may be rendered against City or the other Indemnitees in any such suit,
action, or other legal proceeding arising out of or incident to the performance of the
Agreement. Contractor shall reimburse the City and the other Indemnitees, for any and
all legal expenses and costs incurred by each of them in connection therewith or in
enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not
be restricted to insurance proceeds, if any, received by Contractor or Indemnitees. This
indemnity shall apply to all Claims and liability regardless of whether any insurance
policies are applicable.
5.2 Bid Protests. In addition to its obligations pursuant to Section 5.1,
Contractor shall reimburse the City for all attorneys' fees and costs incurred by City in
connection with, arising out of or incident to any bid protest.
5.3 City's Sole Negligence. Nothing in Section 5.1 shall be construed
to require Contractor to indemnify Indemnitees for that portion of any Claim to the extent
arising from the sole negligence or willful misconduct of the Indemnitees.
5.4 Nonwaiver of Rights. Indemnitees do not, and shall not, waive any
rights that they may possess against Contractor because of the acceptance by City, or the
deposit with City, of any insurance policy or certificate required pursuant to this
Agreement.
5.5 Waiver of Right of Subrogation. Contractor, on behalf of itself
and all parties claiming under or through it, hereby waives all rights of subrogation
against the Indemnitees, while acting within the scope of their duties, from all claims,
losses, and liabilities arising out of or incident to activities or operations performed by or
on behalf of the Indemnitor.
5.6 Survival. The provisions of this Section 5 shall survive the
termination of the Agreement and are in addition to any other rights or remedies that
Indemnitees may have under the law. Payment is not required as a condition precedent to
an Indemnitee's right to recover under this indemnity provision, and an entry of judgment
against a Contractor shall be conclusive in favor of the Indemnitee's right to recover
under this indemnity provision.
6. Insurance.
6.1 Liability Insurance. Contractor shall procure and maintain in full
force and effect for the duration of this Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the
performance of the services hereunder by Contractor, and its agents, representatives,
employees and subcontractors. The policy limits set forth below do not act as a limitation
upon the amount of indemnification to be provided by Contractor. Contractor shall
complete and execute the following documents attached as Exhibits hereto and
incorporated herein by this reference:
6.1.1 Exhibit D -1: Additional Insured Endorsement
Commercial General Liability.
Automobile Liability.
6.1.2 Exhibit D -2: Additional Insured Endorsement
6.1.3 Exhibit D -3: Additional Insured Endorsement.
6.2 Minimum Scope of Insurance. Unless otherwise approved by City,
coverage shall be at least as broad as:
6.2.1 Insurance Services Office Commercial General
Liability coverage (occurrence form CG 0001).
6.2.2 Insurance Services Office form number CA 0001 (Ed.
1/87) covering Automobile Liability, code 1 (any auto).
6.2.3 Insurance Services Office form number CG 20 10 11
85 (Ed. 11/85) covering Additional Insured— Owners, Lessees or Contactors (Form B).
6.2.4 Workers' Compensation insurance as required by the
State of California and Employer's Liability Insurance.
6.2.5 Professional Liability insurance. Unless the City waives
in the requirement for professional liability insurance, Contractor shall provide to City
the standard form issued by the carrier.
6.3 Minimum Limits of Insurance. Contractor shall maintain limits no
less than:
6.3.1 General Liability: $2,000,000 per occurrence and in the
aggregate for bodily injury, personal injury and property damage. Commercial General
Liability Insurance or other form with a general aggregate limit shall apply separately to
this Agreement or the general limit shall be twice the required occurrence limit.
6.3.2 Automobile Liability: $2,000,000 per occurrence for
bodily injury and property damage.
6.3.3 Employer's Liability: $1,000,000 per occurrence and in
the aggregate for bodily injury or disease and Workers' Compensation Insurance in the
amount required by law.
6.4 Deductibles and Self-Insured Retentions. Contractor shall inform
City of any deductibles or self-insured retentions except with respect to any professional
liability insurance.
6.5 Other Insurance Provisions. The general liability and automobile
liability policies are to contain, or be endorsed to contain, the following provisions:
6.5.1 City, its officers, officials, employees, designated
volunteers and agents serving as independent contractors in the role of City officials, are
to be covered as additional insureds as respects: liability arising out of activities
performed by or on behalf of Contractor; products and completed operations of
Contractor; premises owned, occupied or used by Contractor; or automobiles owned,
leased, hired or borrowed by Contractor. The coverage shall contain no limitations on the
scope of protection afforded to City, its officers, officials, employees, designated
volunteers or agents serving as independent contractors in the role of City officials which
are not also limitations applicable to the named insured.
6.5.2 For any claims related to this Agreement, Contractor's
insurance coverage shall be primary insurance as respects City, its officers, officials,
employees, designated volunteers and agents serving as independent contractors in the
role of City officials. Any insurance or self-insurance maintained by City, their officers,
officials, employees, designated volunteers or agents serving as independent contractors
in the role of City officials shall be excess of Contractor's insurance and shall not
contribute with it.
Page D-6
6.5.3 Contractor's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
6.5.4 Each insurance policy required by this Section 6 shall
be endorsed to state that coverage shall not be canceled or materially modified except
after 30 days prior written notice by first class mail has been given to City.
6.5.5 Each insurance policy, except for any professional
liability policy, required by this Section 6 shall expressly waive the insurer's right of
subrogation against City and its elected officials, officers, employees, servants, attorneys,
designated volunteers, and agents serving as independent contractors in the role of city or
agency officials.
6.6 Acceptability of Insurers. Insurance is to be placed with insurers
with a current A.M. Best's rating of no less than A:VII1 unless waived in writing by
City's Risk Manager.
6.7 Verification of Coverage. All insurance coverages shall be
confirmed by execution of endorsements on forms approved by the City. The
endorsements are to be signed by a person authorized by that insurer to bind coverage on
its behalf. All endorsements are to be received and approved by City before services
commence. As an alternative to City forms, Contractor's insurer may provide complete,
certified copies of all required insurance policies, including endorsements effecting the
coverage required by these specifications.
7. Liquidated Damages. Should the Contractor fail to complete the project,
or any part thereof, in the time agreed upon in the Contract, the Contractor shall
reimburse the City for the additional expense and damage for each calendar day that the
Contract remains uncompleted after the Contract completion date. It is agreed that the
amount of such additional expense and damage incurred by reason of failure to complete
the Contract is the per diem rate of $750.00 per calendar day. Such amount is hereby
agreed upon as liquidated damages for the loss to the City resulting from the failure of the
Contractor to complete the project within the allotted time and to the value of the
operation of the works dependent thereon. It is expressly understood and agreed that this
amount is a reasonable amount and is established in lieu of damages that are incapable of
calculation at the inception hereof; and this amount is not to be considered in the nature
of a penalty. The City shall have the right to deduct such damages from any amount due,
or that may become due to the Contractor, or the amount of such damages shall be due
and collectible from the Contractor or the Contractor's Surety. Progress payments made
after the scheduled completion date shall not constitute a waiver of liquidated damages.
8. Suspension. City may, in writing, order Contractor to suspend all or any
part of the Contractor's Services for the convenience of City or for work stoppages
beyond the control of City or Contractor. A suspension of the Services does not void this
Agreement.
Page D-7
9. Notices. Any notices, bills, invoices, or reports authorized or required by
this Agreement shall be in writing and shall be deemed received on (a) the day of
delivery if delivered by hand or overnight courier service during Contractor's and City's
regular business hours or by facsimile before or during Contractor's regular business
hours; or (b) on the third business day following deposit in the United States mail,
postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other
addresses as the parties may, from time to time, designate in writing pursuant to the
provisions of this Section. All notices shall be addressed as follows:
If to City:
If to Contractor:
City Clerk
City of Seal Beach
211-8th Street
Seal Beach, California 90740
Telephone: (562) 431-2527
Fax: (562) 493-9857
With a copy to:
Public Works Director
City of Seal Beach
211-8th Street
Seal Beach, California 90740
KDC Inc. dba Dynalectric
4462 Corporate Center Drive
Los Alamitos, CA 90720
Telephone: 714-828-7000
Fax: 714-484-2394
Attn: Michael J. Parry, President, CEO
10. Non-Assignability; Subcontracting. Contractor shall not assign, transfer,
or subcontract any interest in this Agreement or the performance of any of Contractor's
obligations hereunder. Any attempt by Contractor to so assign, transfer, or subcontract
any rights, duties, or obligations arising hereunder shall be null, void and of no effect.
11. Compliance with Laws. Contractor shall comply with all applicable
federal, state and local laws, ordinances, codes and regulations in force at the time
Contractor performs the Services.
12. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of
any one or more of the conditions of performance under this Agreement shall not be a
waiver of any other condition of performance under this Agreement. In no event shall the
making by City of any payment to Contractor constitute or be construed as a waiver by
City of any breach of covenant, or any default which may then exist on the part of
Contractor, and the making of any such payment by City shall in no way impair or
prejudice any right or remedy available to City with regard to such breach or default.
Page D-8
13. Attorneys' Fees. In the event that either party to this Agreement shall
commence any legal action or proceeding to enforce or interpret the provisions of this
Agreement, the prevailing party in such action or proceeding shall be entitled to recover
its costs of suit, including all attorneys' fees incurred in connection therewith.
14. Construction. The validity, interpretation, and performance of this
Agreement shall be controlled by and construed under the laws of the State of California.
In the event of any asserted ambiguity in, or dispute regarding the interpretation of any
matter herein, the interpretation of this Agreement shall not be resolved by any rules of
interpretation providing for interpretation against the party who causes the uncertainty to
exist or against the party who drafted the Agreement or who drafted that portion of the
Agreement.
15. Entire Agreement. This Agreement, including any other documents
incorporated herein by specific reference, represents the entire and integrated agreement
between Contractor and City. This Agreement supersedes all prior oral or written
negotiations, representations, or agreements. This Agreement may not be amended, nor
any provision or breach hereof waived, except in a writing signed by the parties which
expressly refers to this Agreement.
16. Severability. The invalidity in whole or in part of any provisions of this
Agreement shall not void or affect the validity of the other provisions of this Agreement.
IN WITNESS WHEREOF, the parties, through their respective authorized
representatives, have executed this Agreement as of the date first written above.
(Intentionally Left Blank)
Page D-9
CITY OF SEAL BEACH
By:
Jill R. Ingrain, City Manager
Attest:
By:
Linda Devine, City Clerk
Approved as to Form:
By:
Quinn M. Barrow, City Attorney
By:
Name: WIWAM
Title:
7
EXHIBIT A
FAITHFUL PERFORMANCE BOND
EXHIBIT B
PAYMENT BOND
EXHIBIT C
WORKERS' COMPENSATION INSURANCE CERTIFICATE
EXHIBIT D -1
ADDITIONAL INSURED ENDORSEMENT
(COMMERCIAL GENERAL LIABILITY)
EXHIBIT D -2
ADDITIONAL INSURED ENDORSEMENT
(AUTOMOBILE LIABILITY)
EXHIBIT D -3
ADDITIONAL INSURED ENDORSEMENT
EXHIBIT E
ACKNOWLEDGMENT OF PENAL AND CIVIL PENALTIES CONCERNING
CONTRACTOR LICENSING LAWS
EXHIBIT F
LABOR LAW REQUIREMENTS
EXHIBIT G
ACCEPTED PROPOSAL
(NOTE: Exhibits will not be included with the contract at the
time of award. The Contractor shall have 10 working days to
submit all exhibits to the City after the award of contract. Failure
to do so will result in voiding of the contract. The City will then
have the right to cash the bid bond for the project and re-
advertise for construction or award to the next lowest
responsive bidder.)