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06-10-2008 CC Rpt A10 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY Meeting Date: June 10, 2008 Public Hearing: 0 -- 2 1 r a""ca"ulua;.- Discussion Item: - • Consent Item: . - June 3, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: TERMINATION Or AGREEMENT NO. A08-08 WITH INTERNATIONAL WATERSCAPES FOR CONSTRUCTION OF LIBRARY AND CITY HALL FOUNTAINS - CHINO HILLS GOVERNMENT CENTER PROJECT BID PACKAGE NO. 5 AND OTHER RELATED ITEMS RECOMMENDATION: 1. Find International Waterscapes in default of Agreement No. A08-08 for failing to provide required payment and performance bonds for Bid Package No. 5 — Design Build Fountains for the Government Center. 111P 2. Terminate Agreement No. A08-08 with International Waterscapes in the amount of $510,000 for default. 3. Direct the City Attorney to seek remedy for damages due to International Waterscapes' default. 4. Approve Amendment No. 6 to Agreement No. A04-80 with douglas e. barnhart, inc. (deb) to reduce allowances for Storm Water Pollution Prevention Plan (SWPPP) and Quality Control (QC) for a net credit of$170,000. 5. Award a contract to The Crest Company, Inc., for Bid Package No. 5 — Design Build Fountains for the Government Center in the amount of$583,600. . 6. Authorize staff to issue a Notice of Award to The Crest Company, Inc. 7. Authorize staff to accept performance bond, payment bond, and proof of insurance and issue a Notice to Proceed upon receipt and acceptance of such for Bid Package No. 5 — Design/Build Fountains. BACKGROUND/ANALYSIS: diVn January 23, 2007, the City Council approved the plans and specifications and provided uthorization to staff to solicit bids for the construction of the Chino Hills Government Center and Infrastructure Improvements Project Phase 2. R/0 ilitINDA DATE: June 10, 2008 Page 2 JECT: TERMINATION OF AGREEMENT NO. A08-08 WITH INTERNATIONAL WATERSCAPES FOR CONSTRUCTION OF LIBRARY AND CITY HALL FOUNTAINS - CHINO HILLS GOVERNMENT CENTER PROJECT BID PACKAGE NO. 5 AND OTHER RELATED ITEMS- CHINO HILLS GOVERNMENT CENTER PROJECT — BID PACKAGE 5 On March 15, 2007, staff received 81 sealed bids for the Phase 2 portion of the project. Bids were received for 24 of the 26 bid packages. No bids were received for Bid Package 5 — Design Build Fountains. On May 22, 2007, City Council authorized staff to proceed with direct negotiations with contractors for Bid Package No. 5 to secure this work per the Public Contracting Code. On February 12, 2008, the City Council awarded a contract to International Waterscapes and authorized staff to accept performance bond, payment bond, and proof of insurance and issue a Notice to Proceed upon receipt and acceptance of such for Bid Package No. 5 — Design/Build Fountains. Since February, Staff has met with International Waterscapes to secure the necessary bonds. International Waterscapes refused to supply the bonds as specified in the Agreement. International Waterscapes requested additional funds for alleged holes in its quoted scope of work and refused to proceed without a formal change order. Based on the agreement, no change order is justified nor recommended by staff. As this contract was iioegotiated, no bid bond was provided. light of International Waterscapes' refusal to comply and other alleged disputes they now have with the terms of the agreement, staff recommends termination of the Agreement per the City Special Provisions Section 6 -1.6.3 "DEFAULT BY TRADE CONTRACTOR". Per this provision, the contract may be cancelled by the City Council without liability for damage, when in the City Council's opinion the Trade Contractor is not complying in good faith. Staff further recommends that City Council direct the City Attorney to pursue legal action against International Waterscapes for default. Due to the delays by International Waterscapes, staff solicited additional pricing for this Bid Package scope of work and also worked with the Architect, LPA, to identify opportunities to reduce the scope and cost of the City Hall fountain design. Based on the preliminary pricing for the proposed modifications to the City Hall fountain, the total cost to provide fountains at both the City Hall and the Library is expected to be $702,200. The anticipated cost is approximately $192,200 (the difference between International Waterscapes' contract and the projected cost). At this time staff recommends that the City Council: 1. Approve Amendment No. 6 to Agreement No. A04-80 with deb. This would delete the allowance from deb's contract for SWPPP monitoring for a credit of $100,000; and delete the part of the allowance for QC, an additional credit of $70,000. The total credit for Amendment No. 6 to the agreement with deb would be $170,000. ile 2. Award a contract to The Crest Company, Inc., in the amount of $583,600. This negotiated scope allows for both the construction of the fountains and future incorporation of changes at the City Hall fountain. At staff's request, The Crest Company provided a cashier's check in the amount of $58,360 to secure its bid. ESNDA DATE: June 10, 2008 Page 3 JECT: TERMINATION OF AGREEMENT NO. A08-08 WITH INTERNATIONAL WATERSCAPES FOR CONSTRUCTION OF LIBRARY AND CITY HALL FOUNTAINS - CHINO HILLS GOVERNMENT CENTER PROJECT BID PACKAGE NO. 5 AND OTHER RELATED ITEMS- CHINO HILLS GOVERNMENT CENTER PROJECT— BID PACKAGE 5 REVIEW BY OTHERS: This item has been reviewed by the City Attorney, the Finance Director, the Interim City Engineer, and the Assistant to the City Manager. FISCAL IMPACT: The credit for deb's contract would be allocated as follows: MOM3RMV::''1:1PiAleCtiOlii:OVANIMEARW,IMA00:0161**:.1,!: Government Center Civic Center Project ($ 69,700) Government Center— Police Station Project ($ 42,500) Fire District Headquarters ($ 18,700) Chino Hills Branch Library Project ($ 39,100) Total ($170,000) The costs associated with The Crest Company's contract would be allocated as follows: Government Center— Civic Center Project $233,400 Chino Hills Branch Library Project $350,200 Total $583,600 Respectfully submitted, Recommended by: Douglas N. La Belle, City Manage Kathleen Gotch, Assistant City Manager KG/MB/AD Attachment S AMENDMENT NO. 6 TO AGREEMENT NO. A04-80 WITH DOUGLAS E. BARNHART, INC., FOR PROJECT MANAGEMENT SERVICES FOR THE GOVERNMENT CENTER AND COMMUNITY PARK THIS AMENDMENT NO. 6 TO AGREEMENT NO. A04-80, with douglas e. barnhart, inc., dated June 10, 2008, is entered into in the State of California by and between the City of Chino Hills, a California general law municipal corporation, hereinafter called "City" and douglas e. barnhart, inc., hereinafter called "Consultant". It is hereby agreed to be amended as follows: Credit for unused Storm Water Pollution Prevention Program (SWPPP) monitoring: ($100,000) Credit for excess, unused Quality Control (QC) allowance: ($ 70,000) Net Credit: ($170,000) Original Agreement $ 348,525 Amendment No. 1-5 $8,049,166 Amendment No. 6 ($ 170,000) All other provisions of said Agreement shall remain unchanged and in effect. 418inIN WITNESS WHEREOF, the City Council of the City of Chino Hills has caused this endment to the Agreement to be subscribed by its duly authorized officers, in its behalf, and the said party of the second part has signed this Agreement. DOUGLAS E. BARNHART, INC. CITY OF CHINO HILLS BRIAN CAHILL CURT HAGMAN, MAYOR EXECUTIVE VICE PRESIDENT ATTEST: MARY M. McDUFFEE, CITY CLERK APPROVED AS TO FORM: 4111) MARK D. HENSLEY, CITY ATTORNEY