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06-25-2019 CC Rpt 11COUNCIL AGENDA STAFF REPORT Chino I IiEI� TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 25, 2019 MEMBERS FROM: CITY MANAGER ITEM NO:11 SUBJECT:CONTRACT WITH CDM CONSTRUCTORS, INC. (CDM SMITH) FOR THE SUPERVISORY CONTROL & DATA ACQUISITION (SCADA) SYSTEM UPGRADE (RE -BID) PROJECT RECOMMENDATION: 1. Award a contract to CDM Constructors, Inc. (CDM Smith) in the amount of $899,994 for the Supervisory Control & Data Acquisition (SCADA) System Upgrade project. 2. Authorize staff to issue a Notice of Award. 3. Authorize staff to accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of same. 4. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 10% ($89,999.40) of the awarded contract amount. BACKGROUND/ANALYSIS: On June 26, 2018, the City Council authorized staff to solicit bids for the SCADA System Upgrade project. On January 10, 2019, the City received three bids in response to the solicitation. On March 12, 2019, the City Council rejected all bids received due to the errors and mistakes within the submitted bids. The City Council further recommended that the project bid package be revised to include additional specifics prior to bid re -solicitation. On May 23, 2019, the City received one bid in response to the bid re -solicitation and is summarized as follows: Contractor Amount of Bid CDM Constructors Inc. (CDM Smith) $899,9941 As shown above, CDM Smith submitted the only bid and is the apparent low bidder. Staff reviewed and verified the submitted bid and found CDM Smith to be a responsive bidder that meets the minimum requirements. The contract for competitively bid public projects must be awarded to the lowest responsible bidder, and for this case the sole bidder. Staff received favorable reports from references regarding the work performed by CDM Smith (for others) and recommends that the Council award them a contract in the amount of $899,994. 32/328 ENVIRONMENTAL (CEQA) REVIEW: At the June 26, 2018, City Council meeting, the project was determined to be exempt as a Class 1(b) Categorical Exemption (existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewage, or other public utility services), pursuant to Section 15301 of Guidelines for the California Environmental Quality Act of 1970, as amended, Public Resources Code Section 21000 et seq. FISCAL IMPACT: The total estimated cost for this project is as follows: Item Design Construction Contingencies (10%) Project Management, Inspection and Testing Total Estimated Project Cost Amount $160,800 899,994 89,999 180,207 $1,331,000 Funding for the SCADA System Upgrade project was previously approved by the City Council as part of the FY 2018-19 Capital Improvement Program (CIP) budget. The funding available for this project is as follows: Project No. D11002 Funding Source Amount Sewer Facility Fee $1,331,0001 Total Approved Funding $1,331,0001 REVIEWED BY OTHERS: This item has been reviewed by the City Attorney and Finance Director. Respectfully Submitted, 126,./ Benjamin Montgo City Manager Attachments Agreement Recommended By: e I Nadeem Majaj P.E,, Director of Public Works 33/328 CITY OF CHINO HILLS AGREEMENT SCADA SYSTEM UPGRADE PROJECT PROJECT NO. D11002 This Agreement is made and entered into as of the date last signed below, by and between the CITY OF CHINO HILLS, a general law city and municipal corporation ("CITY"). and CDM CONSTRUCTORS INC. ("CONTRACTOR"). City and Contractor do hereby agree as follows: The complete contract includes all of the Contract Documents, to wit: ▪ Notice Inviting Bids, Dated March 12, 2019 ® Instructions to Bidders ❑ Addenda ® Contractor's Bid (Bid Documents), Dated Mav 23, 2019 IX Bid Bond ® Payment Bond ® Contract Performance Bond ® Certificates of Insurance and Endorsements • Agreement ▪ Certified Copy of the record of action of the City Council of City of Chino Hills, Chino Hills, California ® Notice of Award ® Notice to Proceed ® The Plans (Contract Drawings) ® Document entitled, "Notice to Bidders, Proposal, Contract, and Special Provisions", including appendices. ® Standard Specifications for Public Works Construction. ® Standard Plans ® Reference documents ® Change Orders or Work Change Directives ® Public Improvement Warranty Each of such documents in their entirety are incorporated herein by this reference as if set forth in full. The Contractor agrees to perform certain work set forth and particularly described in the aforementioned documents, incorporated herein by reference in consideration of: TOTAL BID: $899,994.00 Contractor shall furnish a labor and material bond in an amount equal to one hundred percent (100%) of the contract price, and a faithful performance bond in an amount equal to one hundred percent (100%) of the contract price, said bonds to be secured from a Construction Agreement Page 1 of 6 SCADA System Upgrade Project No. D11002 34/328 surety company admitted and authorized to do business in California as such and satisfactory to the City Council. Upon filing of the Notice of Completion, Contractor shall be required to maintain a labor and material bond for a period of seven (7) months and shall furnish a warranty bond in the amount of 15% of the contract amount for a period of twelve (12) months. IV. The Contractor agrees to indemnify, protect, defend and hold harmless the City, and their authorized agents, officers, volunteers, the engineer and employees against any and all claims arising from Contractor's acts or omissions and for any costs or expenses incurred by the City, or their authorized agents, officers, volunteers and employees, on account of any claim therefore. In order to accomplish the indemnification herein provided for, but without limiting the indemnification, the Contractor shall secure and maintain throughout the term of the contract the following types of insurance with limits as shown: - Workers' Compensation - A program of Workers' Compensation Insurance or a State -approved Self Insurance Program in an amount and form to meet all applicable requirements of the Labor Code of the State of California, including Employer's Liability with One Million Dollars ($1,000,000.00) limits, covering all persons providing services on behalf of the Contractor and all risks to such persons under this Agreement. - General Liability - Such aeneral liability insurance shall be written with a limit of liability of not less than Two Million Dollars ($2.000,000.00) combined single limits for damages arising out of bodily iniurv, including sickness and death, injury to or destruction of property of others, arising directly or indirectly out of or in connection with the performance of the Work under the Contract Documents including explosion, collapse and underground exposure. - Vehicle Liability - Such vehicle liability insurance shall be written with a limit of liability of not less than One Million Dollars ($1,000,000.00) combined single limits for all bodily injury, including sickness and death or injury to or destruction of property of others, arising directly or indirectly out of or in connection with the performance of the Work under the Contract Documents including explosion, collapse and underground exposure. If the City determines to require the Contractor to procure such insurance, such insurance shall cover as insureds under all policies excepting workers compensation the City, its officers, employees, and agents, City's Representative, the Engineer and his/her consultants, and each of their officers, employees, and agents. The policy or policies for such insurance may provide for a deductible amount not to exceed five percent (5%) of the Contract Price. As provided in Section 7105 of the California Public Contract Code, the Contractor is responsible for the cost of repairing or restoring work up to five (5%) percent of the contract amount. All insurance required herein shall be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise approved and accepted by the City Manager or his/her designee in writing, and which insurers are admitted and authorized to do business in California as insurance carriers. Construction Agreement Page 2 of 6 SCADA System Upgrade Project No. D11002 35/328 Contractor shall, within ten (10) calendar days after receipt of the notice of award from the City, furnish certificates of insurance and endorsements to the City evidencing the insurance coverage above required prior to the commencement of performance of services hereunder, which certificates shall provide that such insurance shall not be terminated or expire without thirty (30) days written notice to the City, and shall maintain such insurance from the time Contractor commences performances of services hereunder until the completion of such services All policies, with respect to the insurance coverage above required, except for the Workers' Compensation Insurance coverage and professional liability coverage, if applicable, shall obtain additional endorsements covering the City and its employees, agents, volunteers and officers as insureds with respect to liabilities arising out of the performance of services hereunder. The Contractor shall require the carriers of the above required coverages to waive all rights of subrogation against the City, its officers, volunteers, employees, contractors, agents and subcontractors. All policies required above are to be primary and non-contributing with any insurance or self-insurance programs carried or administered by the City. V. The City agrees to pay, and the Contractor agrees to accept in full payment for the work outlined in the Contract Documents, the total sum of Eight Hundred Ninety -Nine Thousand Nine Hundred Ninety -Four Dollars ($899,994.00) subject to additions and deductions, if any, in accordance with said documents. Payment shall not be made more often than once each thirty (30) days, nor shall amount paid be in excess of ninety percent (95%) of the contract at time of completion. Final payment to be made forty-five (45) days acceptance of the project as complete by the City Council. Contractor may, upon Contractor's written request, and approved by the City Council, at Contractor's expense, deposit substitute securities, as stated in Government Code Section 16430, and as authorized by Public Contract Code, Section 22300, in lieu of retention monies withheld to insure performance. VI. The Contractor shall commence the work required by this Contract within ten (10) days of the date specified in the Notice to Proceed from the City to proceed with the work and shall complete bid items within ninety (90) working days. City and Contractor have discussed the provisions of Government Code, Section 53069.85 and the damages that may be incurred by City if the Work is not completed within the time specified in this Agreement. The City and Contractor hereby represent that at the time of signing this Agreement, it is impracticable and extremely difficult to fix the actual damage which will be incurred by City if the Work is not completed within the number of working days allowed. Accordingly, City and Contractor agree that the sum of five hundred dollars ($ 500.00) per calendar day is a reasonable sum to assess as damages to City by reason of the failure of Contractor to complete the Work within the time specified. Construction Agreement Page 3 of 6 SCADA System Upgrade Project No. D11002 36/328 VII. The Contractor hereby agrees to comply with the State Labor Code and acknowledges that, in accordance with Section 3700 of the State Labor Code, he/she will be required to secure the payment of compensation to his/her employees. VIII. The Contractor acknowledges that, in accordance with Section 1777.5 of the State Labor Code, he/she will be held responsible for compliance with the provisions of this Section for all apprenticeable occupations. IX. The Contractor hereby agrees to reimburse the City for costs incurred by the awarding authority in the substitution of subcontractors. Where a hearing held pursuant to the provisions of Chapter 2, Division 5, Title 1, of the Government Code (commencing with Section 4100) by the awarding authority or a duly appointed hearing officer, the Clerk of the City of Chino Hills shall prepare and certify a statement of all costs incurred by the City for investigation and conduct of the hearing, including the costs of any hearing officer and °shorthand reporter appointed. The statement shall then be sent to the general contractor, who shall reimburse the City for such costs. If not paid separately, such reimbursement may be deducted from any money due and owning to the general contractor prior to acceptance of the project. X. Contractor acknowledges and agrees that Contractor must have all appropriate contractor's licenses. Contractor further warrants and represents that he/she/they has/have the appropriate contractor's license to pursue the work hereunder. Contractor's failure to have or maintain all appropriate licenses during the entire term of this contract, or any period thereof, shall be cause for the immediate and summary termination of this contract by City. Contractor shall be liable for all City's costs to complete the work and this contract. Xl. The person or persons executing this Agreement on behalf of contractor warrants and represents he/she/they has/have the authority to execute this Agreement on behalf of his/her/their corporation, partnership, or business entity and warrant and represents that he/she/they has/have the authority to bind contractor to the performance of its obligations hereunder. XII. NOTICES. Notices shall be given pursuant to this Agreement by personal services on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Services addressed as Follows: Construction Agreement Page 4 of 6 SCADA System Upgrade Project No. D11002 37/328 City. City of Chino Hills Attention: City Clerk 14000 City Center Drive Chino Hills, California 91709 Email: cityclerk@chinohills.org Contractor: CDM Constructors Inc. (CDM Smith) Attention: Steve Kurtz 9220 Cleveland Ave, Suite 100 Rancho Cucamonga, CA 91730 The notices shall be deemed to have been given as of the date of personal service, or three (3) days after the date of deposit of the same in the custody of the United States Postal Service. XI1I. This Agreement contains the completely final, entire, and exclusive agreement between the parties with respect to the subject matter hereof, and no waiver, alteration, or modification of any of the provisions hereof or rights to act hereunder shall be binding unless in writing. Any attempted modification, amendment, or alteration in violation hereof shall be void. Construction Agreement Page 5 of 6 SCADA System Upgrade Project No. D11002 38/328 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year last written below. CITY OF CHINO HILLS Cynthia Moran Mayor CDM CONSTRUCTORS INC. it't lc itac % .3 r4 ,TT Z.. / U«e-es4des.-I- ATTEST: (Printed name/Title) Cheryl Balz City Clerk (Date) (Date) (Signature) APPROVED AS TO FORM: (Printed Name/Title) Mark D. Hensley (Date) City Attorney Construction Agreement Page 6 of 6 SCADA System Upgrade Project No. D11002 39/328