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03-10-2010 CC Rpt A08 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY 't'0g Meeting Date: March 23, 2010 N Public Hearin Ej Discussion Item: []� ZUIU LIAR 15 AM 9 03 cm ovMwe'�a..a ^' Consent Item: F•FICE_ OF CLERK _ r•LA,FIn NCITYll t S March 16, 2010 o TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: AWARD A CONTRACT FOR THE CONSTRUCTION OF THE HIGH ZONE RECYCLED WATER SYSTEM PROJECT TO CANYON SPRINGS ENTERPRISES AND OTHER RELATED ITEMS RECOMMENDATION: 1. Approve a budget appropriations decrease in the High Zone Recycled Water System project budget as follows: a. Grant fund from $1,092,300 to zero. 2. Approve a budget appropriations increase from the Water Facilities Fee fund reserves to the High Zone Recycled Water System project in the amount of $2,300,000. 3. Award a contract to Canyon Springs Enterprises in the amount of $2,531,480 for the construction of the High Zone Recycled Water System project. 4. Authorize staff to issue a "Notice of Award". 5. Authorize staff to accept the performance and payment bonds, proof of insurance and issue a "Notice to Proceed" upon receipt and acceptance of such. BACKGROUND/ANALYSIS: The High Zone Recycled Water System project consists of two reservoirs totaling 2.5 million gallons (MG) of storage capacity. The project includes pipelines to connect the reservoir to the City's recycled water system as well as improvements for access and landscaping. The Council authorized staff to solicit bids for construction at the January 26, 2010 Council meeting. The project cost was originally estimated at $4,000,000 and programmed to be funded with a combination of developer contributions, grant funds, and water development impact • fees. The developer contribution is based on 67% of the estimated construction cost and will be recalculated based upon actual construction cost values. /97 AGENDA DATE: March 23, 2010 Page 2 SUBJECT: AWARD A CONTRACT FOR THE CONSTRUCTION OF THE HIGH ZONE RECYCLED WATER SYSTEM PROJECT TO CANYON SPRINGS ENTERPRISES AND OTHER RELATED ITEMS Additionally, the City applied for grant funding through the State Water Resources Control Board. However, after more than a year of processing, the State converted the application to a low-cost loan. Analysis by staff showed that even at reduced interest rates, the loan was not economically advantageous to the City. In light of the aforementioned items, staff is recommending that the project be reprogrammed using only water development impact fees at this time, with the understanding that the Water Facilities Fee Fund will be reimbursed once the developer contribution is recalculated and collected. Fortunately, the current bidding climate has resulted in more competitive bids for construction contracts. On March 4, 2010, the City received eight bids for the construction project, which are summarized below: Contractor Bid ', f:i t= 'rl Canyon Springs Enterprises $2,531,480 V. Lopez Jr. & Sons $2,818,328 Riverside Construction $3,056,920 Conengr Corporation $3,070,838 Dumarc Corporation $3,142,278 Cora Constructors $3,439,000 Minako America $3,794,940 Matrix Service $4,225,047 I Staff is recommending that a contract be awarded to Canyon Springs Enterprises in the amount of$2,531,480. REVIEW BY OTHERS: This agenda item has been reviewed by the Finance Director. FISCAL IMPACT: This project is included in the FY 2009-10 CIP. Funding for this project requires reprogramming as noted in the recommendation portion of this staff report. The Water Facilities Fee Fund will be reimbursed once the developer contribution is collected. Respectf Ily submitted,d, Recommended by: `/�, / L ` _ j- r'/ Michael S. FTe4YCity Manager Steven C. Nix, City\Engineer SN/AD/ps CITY OF CHINO HILLS AGREEMENT FOR CONSTRUCTION OF THE HIGH ZONE RECYCLED WATER SYSTEM This Agreement is made and entered into on the 23rd day of March, 2010 by and between the City of Chino Hills, a California General Law Municipal Corporation ("City") and Canyon Springs Enterprises ("Contractor"), City and Contractor do hereby agree as follows: The complete contract includes all of the Contract Documents, to wit: A, Notice Inviting Bids, Dated January 12. 2009 B. Instructions to Bidders C. Addenda D, Contractor's Bid (Bid Documents), Dated March 4, 2010 E. Bid Bond F. Payment Bond G. Contract Performance Bond H. Certificates of Insurance and Endorsements I. Agreement J. Certified Copy of the record of action of the City Council of City of Chino Hills, Chino Hills, California. K. Notice of Award L. Notice to Proceed M. The Plans (Contract Drawings) N. Document entitled, "Notice to Bidders. Proposal. Contract, and Special Provisions", including appendices. O. Standard Specifications for Public Works Construction. P. Standard Plans Q. Reference documents R. Change Orders or Work Change Directives S. Public Improvement Warranty Each of such documents in their entirety are incorporated herein by this reference as if set forth in full, II. The Contractor agrees to perform certain work set forth and particularly described in the aforementioned documents, incorporated herein by reference in consideration of: TOTAL BASE BID: $2,531,480.00 III. 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 surety company admitted and authorized to do business in California as such and satisfactory to the City Council, 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 general 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 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 2 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, and which insurers are admitted and authorized to do business in California as insurance carriers. 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 sum of two million, five hundred thrity-one thousand, four hundred eighty and no/100 dollars ($2531,480.00) subject to additions and deductions, if any, in accordance with said documents. Payment shall not be made more often than once each thirty (30) days, nor shall amount paid be in excess of ninety percent (90%) of the contract at time of completion. Final payment to be made thirty-five (35) days subsequent to acceptance of the project by the agency. Contractor may, upon Contractor's written request, and approved by the City Council, at Contractor's expense, deposit substitute securities, as stated in Government Code Section 16430, and as authorized by Public Contract Code, Section 22300, in lieu of retention monies withheld to insure performance. 3 VI. The Contractor shall commence the work required by this Contract within ten (10) days of the date specified in the Notice to Proceed from the City to proceed with the work and shall complete bid items within two hundred thirty-five (235) working days. City and Contractor have discussed the provisions of Government Code, Section 53069.85 and the damages that may be incurred by City if the Work is not completed within the time specified in this Agreement. The City and Contractor hereby represent that at the time of signing this Agreement, it is impracticable and extremely difficult to fix the actual damage which will be incurred by City if the Work is not completed within the number of working days allowed. Accordingly, City and Contractor agree that the sum of five hundred dollars f$ 500.00 1 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. 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 4 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. XI. 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 personnel services on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows: City: City of Chino Hills Attn: City Clerk 14000 City Center Drive Chino Hills, CA 91709-4868 Contractor: Canyon Springs Enterprises Attn: Robert Hamilton, CEO 3001 E. Tahquitz Canyon No. 235 Palm Springs, CA 92262 XIII. 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. 5 IN WITNESS WHEREOF, each of the parties hereto has caused the Agreement to be executed in its name on its behalf by a duly authorized officer as of this day and year first above written. CITY OF CHINO HILLS CANYON SPRINGS ENTERPRISES By: By: W.C. "Bill" Kruger, Mayor Signature of Chairman of Board, President, or Vice President Attest: (Typed/Printed Name) By: Mary M. McDuffee (Title) City Clerk By: Signature of Secretary, Assistant Approved as to Form: Secretary, CFO, or Assistant Treasurer By: Mark D. Hensley (Typed/Printed Name) City Attorney (Title) 6