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HomeMy WebLinkAboutItem 1e - Contract with Southwest General Engineering, Inc.vti GPLI:� RN,-1 August i, 1903 �o�'hnnityof�o�y STAFF REPORT Public Works Services Department DATE: July 1, 2014 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Ken Herman, P.E., Principal Civil Engineer SUBJECT: CONTRACT WITH SOUTHWEST GENERAL ENGINEERING, INC. FOR THE CANYON RESERVOIR FACILITY SLOPE STABILIZATION PROJECT AND APPROVAL OF A SUPPLEMENTAL APPROPRIATION FROM THE WATER FUND IN THE AMOUNT OF $66,315 Recommendation: Approve SUMMARY In order to satisfy the terms of the settlement agreement reached between the property owners adjacent to the Canyon Reservoir facility and the City of Arcadia, a project was prepared to stabilize the natural hillside slope at the Canyon Reservoir. The Public Works Services Department ( "PWSD ") conducted a formal bid for this project. Based on the review, the lowest bidder MG Enterprises, Inc. did not meet the minimum qualifications required in the bid. It is recommended that the City Council authorize and direct the City Manager to reject the low bid submitted by MG Enterprises, Inc., execute a contract with Southwest General Engineering, Inc. for the Canyon Reservoir Facility Slope Stabilization Project, and approve a supplemental appropriation from the Water Fund in the amount of $66,315. BACKGROUND PWSD is responsible for the operation, maintenance, and repair of all reservoir and pumping facilities. The Canyon Reservoir provides water for residents living north of Elkins Drive. The facility was built in 1955 and consists of two 500,000 gallon water storage reservoirs and a booster pump station. In order to build the Canyon Reservoir facility, the hillside was graded and the east side of the property was cut back to create a level pad to place the reservoirs. Over the years, the natural sloughing of material from the slope has been a concern for the residents living on the adjoining property. In order to address this concern, an agreement was reached between the property owners and the City in which the City agreed to stabilize the slope to prevent further erosion. Canyon Slope Stabilization Project July 1, 2014 Page 2 of 3 DISCUSSION In order to prevent erosion from occurring on the hillside at the Canyon Reservoir facility, a project has been designed to pneumatically apply a concrete covering over the natural hillside, which will protect the hillside from erosion caused by the combined effects of sun, wind, and rain. This type of concrete slope protection is commonly referred to as shotcrete paving. The shotcrete will be anchored to the slope by footings at the top and bottom of the slope, as well as by steel anchors spaced throughout the pavement area. A Notice Inviting Bids was published in the City's adjudicated newspaper, as well as distributed to contractors that perform this specific type of work. The City Clerk publicly opened three sealed bids on June 16, 2014, with the following results: Rank Bidder Location Bid Amount 1 MG Enterprises, Inc. Tarzana, CA $ 51,740 2 Southwest General Engineering, Inc. Sylmar, CA $ 66,315 3 Superior Gunite Lakeview Terrace, CA $144,727 The bids were reviewed for responsiveness to the bid requirements and the contractors' experience and competency on recent projects. The engineer's estimate for this project was $60,000. Based on this review, it has been determined that the lowest bidder, MG Enterprises, Inc., did not meet the bid specifications requirement of possessing five years' minimum experience in completing shotcrete paving. Therefore, the bid received from Southwest General Engineering, Inc. is determined to be the lowest responsive bid. Southwest General Engineering, Inc. was able to demonstrate the required experience and has been in the shotcrete and slope paving industry for 15 years. They have successfully completed similar projects for several agencies such as Metropolitan Water District, City of Riverside, City of Westminster, and CalTrans. ENVIRONMENTAL ANALYSIS This project is considered a Class 1 exemption as defined in Section 15301(b) of the California Environmental Quality Act in that the project includes alteration of an existing water facility. FISCAL IMPACT The total cost to complete the Canyon Reservoir Slope Stabilization Project is $66,315 and will require a supplemental appropriation from the Water Fund. This was not included in the FY 2014 -15 Budget as settlement negotiations were ongoing at the time of budget development. Sufficient fund balance exists in the Water Fund to cover the costs of this project. Canyon Slope Stabilization Project July 1, 2014 Page 3 of 3 RECOMMENDATION It is recommended that the City Council: 1) Reject the low bid submitted by MG Enterprises, Inc.; and 2) Authorize and direct the City Manager to execute a contract with Southwest General Engineering, Inc. for the Canyon Reservoir facility slope stabilization project; and 3) Approve a supplemental appropriation of $66,315 from the Water Fund. Approved: Dominic Lazza City Manager Attachment: Contract for the Canyon Reservoir Facility Slope Stabilization Project CITY OF ARCADIA CANYON RESERVOIR FACILITY SLOPE STABILIZATION PROJECT CONTRACT BETWEEN CITY OF ARCADIA AND SOUTHWEST GENERAL ENGINEERING, INC. RVPUB \DRD \570015 GB - STATE & LOCAL (505/507/660) (7/24/00) (PROJECT: Canyon Reservoir Slope Stabilization Project) CONTRACT FOR THE CITY OF ARCADIA Canyon Reservoir Facility Slope Stabilization Project 1. PARTIES AND DATE. This Contract is made and entered into this day of , 20_, by and between the CITY OF ARCADIA (hereinafter called the "City ") and SOUTHWEST GENERAL ENGINEERING, INC. (hereinafter called the "Contractor "). 2. RECITALS. 2.1 The City is a charter City organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose; 2.2 Contractor, in response to a Notice Inviting Bids issued by City on Monday, June 2, 2014, has submitted a bid proposal for construction the Canyon Reservoir Slope Stabilization Project described in the Contract. 2.3 City has duly opened and considered the Contractor's bid proposal, and duly awarded the bid to Contractor in accordance with the Notice Inviting Bids and the other Bid Documents, and has given written notice to Contractor on [* *INSERT DATE * *]. 2.4 Contractor has obtained, and delivers concurrently herewith, Performance and Payment Bonds and evidences of insurance coverage as required by the Contract. 3. TERMS. 3.1 Incorooration of Documents. This Contract includes and hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto: a. Notice Inviting Bids b. Instructions to Bidders C. Contract Bid Forms d. Contract e. Contract Appendix Part "A" - General Conditions Part "B" - Supplementary General Conditions Part "C" - Special Provisions Part "D" - Specifications Part "E" - Drawings RVPUB \DRD \570015 CONTRACT-1 GB - STATE & LOCAL (505/507/660) (7/24/00) (PROJECT: Canyon Reservoir Slope Stabilization Project) Part "F" - Performance Bond Part "G" - Payment Bond ADDENDUM NO. 1 dated June 11, 2014. The above documents, including the General Conditions, are an integral part of the Contract Documents. In addition to signing this Contract, Contractor shall initial this paragraph immediately below acknowledging that he or she has read, understood and agrees with all of the terms of the Contract Documents, including, but not limited to, provisions of the General Conditions relating to indemnification, insurance, standards of performance, termination, compensation and time of the essence performance. Contractor shall not disclaim knowledge of the meaning and effect of any term or provision of the Contract Documents, and agrees to strictly abide by their meaning and intent. In the event that Contractor fails to initial below, the City shall have the right to declare the Contract unexecuted and to award the Contract to another contractor in accordance with state law. Contractor, s Initials 3.2 Contractor's Basic Obligation. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work for the construction of Bid Category number(s) 1 -7 necessary to fully and adequately complete Canyon Reservoir Facility Slope Stabilization Project, including any alternates selected by the City, and all structures and facilities described in the Contract (hereinafter the "Work "), for a total of Sixty -Six Thousand, Three Hundred Fifteen Dollars and No Cents, ($66,315.00), as specified in the Contract Bid Forms submitted by the Contractor in response to the above referenced Notice Inviting Bids. Such amount shall be subject to adjustment in accordance with the applicable terms of this Contract. All Work shall be subject to, and performed in accordance with the above referenced documents. 3.3 Standard of Performance. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor further represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, and that such licenses and approvals shall be maintained throughout the term of this Contract. RVPUB \DRD \570015 CONTRACT-2 GB - STATE & LOCAL (505/507/660) (7/24/00) (PROJECT: Canyon Reservoir Slope Stabilization Project) 3.4 Period of Performance. Contractor shall perform and complete all Work under this Contract within Sixty (60) Calendar Days, beginning ten (10) Calendar Days after the date on which the Notice to Proceed is sent by the City to the Contractor. Moreover, Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, including but not limited to the Project Schedule located in the Specifications. Contractor agrees that if such Work is not completed within the aforementioned period and /or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, including but not limited to the Project Schedule located in the Specifications, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of One Thousand Dollars ($1,000) PER DAY as provided by the applicable provisions of the General Conditions, found in Part "B" of the Contract Appendix. 3.5 City's Basic Obligation. City agrees to engage and does hereby engage Contractor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by the Contractor of the services and obligations required by this Contract, the above referenced compensation in accordance with compensation provisions set forth in the Contract. 3.6 Contractor's Labor Certification. Contractor maintains that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose is attached hereto as Exhibit "A" and incorporated herein by reference, and shall be executed simultaneously with this Contract. 3.7 Attorneys' Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Contract, the prevailing party in such action shall be entitled to have and recover from the losing party reasonable attorneys' fees and all other costs of such action. 3.8 Successors. The parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract. Contractor may not either voluntarily or by action of law, assign any obligation assumed by Contractor hereunder without the prior written consent of the City. RVPUB \DRD \570015 CONTRACT-3 GB - STATE & LOCAL (505/507/660) (7/24/00) (PROJECT: Canyon Reservoir Slope Stabilization Project) 3.9 Notices. All notices hereunder and communications regarding interpretation of the terms of the Agreement or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows: Contractor Southwest General Engineering, Inc. 3625 Placentia Lane Riverside, CA 92501 Attn: Bob Shepherd, President City City of Arcadia 240 W. Huntington Drive P.O. Box 60021 Arcadia, CA 91066 -6021 Attn: Ken Herman, PE, Project Engineer Any notice so given shall be considered received by the other party three (3) days after deposit in the U.S. Mail, first class postage prepaid, addressed to the party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. CITY OF ARCADIA By: Dominic Lazzaretto City Manager ATTEST: By: City Clerk Approved as to Form: By: Stephen P. Deitsch City Attorney SOUTHWEST GENERAL ENGINEERING, INC. By: Title By: Title RVPUB\DRD\570015 CONTRACT-4 GB - STATE & LOCAL (505/507/660) (7/24/00) (PROJECT: Canyon Reservoir Slope Stabilization Project) EXHIBIT "A" CERTIFICATION LABOR CODE - SECTION 1861 I, the undersigned Contractor, am aware of the provisions of Section 3700 et seg. of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self- insurance in accordance with the provisions of the Code. I agree to and will comply with such provisions before commencing the Work governed by this Contract. CONTRACTOR: Name of Contractor: Southwest General Engineering, Inc. :� Signature Name Title Date RVPU13\DRD\570015 CONTRACT (EXHIBIT A) GB - STATE & LOCAL (505/507/660) (7/24/00)