Item 3 - Award of Contract for the Water Valve Replacement Proj.; Bid 20-010, Piperin Corp.1 of 11May 5, 2020, Item #3DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway May 5, 2020 Honorable Mayor and Members of the City Counc~1 j Robert Manis, Director of Development Services #1/{ Andrea Thomas, Associate Civil Engineer (858) 668-4605 or athomas@poway.org CITY COUNCIL Award of Contract to Piperin Corp. for the Water Valve Replacement Project; Bid No. 20-010 This project will replace water valves, water valve clusters, and associated appurtenances throughout the City. Recommended Action: It is recommended that the City Council award the contract for the Water Valve Replacement Project to Piperin Corp., the lowest responsible and responsive bidder, in the amount of $273,000.00. Discussion: This project was first advertised on December 5 and 12, 2019. Nine bids were received and opened on January 12, 2020. All bids received exceeded the available project budget. On February 18, 2020, the City Council adopted Resolution No. 20-007 rejecting all bids and directing staff to re-advertise the project with a revised scope of work. Eight valve locations were eliminated from the project scope leaving a total of twelve locations. Of the remaining valve locations, four were identified as deductive alternates. The contract time for this project is 60 working days with an Engineer's Estimate of $275,000. Bids were opened on April 8, 2020. The lowest bid was determined by starting with the base bid, then subtracting each deductive alternate amount (in order, one by one) from the base bid, until one bid was less than or equal to $275,000. This process was publicly disclosed by the City before the first bid was opened. The following five bids were received:
Company Base Bid Amount Deductive Alternate 2
Bid Amount
Piperin Corp. $313,000 $273,000
Transtar Pipeline, Inc. $307,000 $277,000
HPS Mechanical, Inc. $320,004 $283,456
DB Pipeline, Inc. $335,000 $288,000
Capriati Construction $556,437 $485,687
Environmental Review:
The proposed project is Categorically Exempt from the California Environmental Quality Act (CEQA) as
a Class 1 Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines, in that the project
involves minor alterations consisting of replacement of existing equipment.
Fiscal Impact:
There is sufficient funding available in the Water Valve Replacement Project account (WTR0002) to
award the contract. After the contract is awarded, funds in the amount of $40,363.91 remain.
Public Notification:
None.
Attachments:
A.Contract
Reviewed/ Approved By:
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Ch�
City Manager
2 of 11 May 5, 2020, Item #3
~ . c_..--
W~aserman
SECTION 8
CONSTRUCTION CONTRACT
CITY OF POWAY
WATER VALVE REPLACEMENT PROJECT
This Contract made and entered into this 6th day of May 2020, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City"
and Piperin Corp., hereinafter referred to as "Contractor."
The City and the Contractor, for the consideration hereinafter named, mutually agree as follows:
1.The complete Contract includes all of the Contract Documents, which are
incorporated herein by this reference, and include:
a.This Contract
b.Contract Addenda
c.Contract Change Orders
d.Instructions to Bidders, Proposal Requirements and Conditions
e.Contract Specifications
f.Contract Plans
g.General Condition
h.Special Conditions
i.Standard Specification for Public Works, most current edition,
2.The Contract Documents are complementary, and that which is required by one
shall be as binding as if required by all.
3.Contractor shall provide and furnish all labor, materials, necessary tools,
expendable equipment, and all utility and transportation services required for the
following work of improvement: The water valve replacement project will replace
water valves, water valve clusters and associated appurtenances throughout theCity ranging from 6 inches to 18 inches in diameter.
4.Contractor agrees to perform all the said work and furnish all the said materials at
his own cost and expense that are necessary to construct and complete in strict
conformance with Contract Documents and to the satisfaction of the City Engineer,the work hereinafter set forth in accordance with the Contract adopted by the City
Council.
ATTACHME�T A 3 of 11 May 5, 2020, Item #3
5.City agrees to pay and Contractor agrees to accept in full payment for performance
of this work of improvement as described, the stipulated sum of $273,000.00 the
"Contract Price."
6.
7.
8.
9.
10.
11.
City agrees to make progress payments and final payment in accordance with the
method set forth in the Special Provisions.
Contractor agrees to commence construction of the work provided for herein within
Fifteen (15) Calendar Days after the date specified in the Notice to Proceed, and to continue diligently in strict conformance with Contract Documents and without
interruption, and to complete the construction thereof within Sixty (60) Working
Days after the date specified in the Notice to Proceed.
Time is of the essence of this Contract, and it is agreed that it would be
impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this
Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to
the City the following sum: Five Hundred Dollars ($500) per Calendar Day, for
each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed
by the City, the City may deduct the amount thereof from any money due or that
may become due the Contractor under this Contract in addition to any other remedy
available to City. By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty.
In accordance with State of California Senate Bill No. 854, Contractor will maintain
and will require all subcontractors to maintain valid and current Department of
Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more
than twenty-four (24) hours, after receiving any information that Contractor's or any
of its Subcontractor's DIR registration status has been suspended, revoked, expired,
or otherwise changed.
Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established
for such work as set forth in the wage determinations and wage standards
applicable to this work, a copy of which is on file in the office of the City Clerk of the
City of Poway. Federal prevailing wage rates apply for federally funded projects.
Travel and subsistence pay shall be paid in accordance with Labor Code § 1773.1.
Contractor shall be subject to the penalties in accordance with Labor Code of §1775 for each worker paid (either by him or by any subcontractors under him) less
than the prevailing rate described above on the work provided for in this Contract.
Contractor and subcontractors shall comply with Labor Code§ 1810 and § 1811
which stipulates that eight hours labor constitutes a legal day's work, and § 1812
which stipulates that the Contractor and subcontractors shall keep an accurate
record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed by him in connection with the work
2 4 of 11 May 5, 2020, Item #3
performed under the terms of the Contract. Failure to comply with these sections of
the Labor Code will subject the Contractor to penalty and forfeiture provisions of the
Labor Code§ 1813.
12.Contractor will comply with the provisions of Labor Code § 1777 .5 pertaining to theemployment of apprentices to the extent applicable to this Contract.
13.Contractor, by executing this Contract, hereby certifies:
"I am aware of and will comply with the Labor Code § 3700 by
securing payment for and maintaining in full force and effect for the duration of the contract, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City
before execution of the Contract. The City, its officers, or
employees, will not be responsible for any claims in law or equity
occasioned by failure of the Contractor to comply with this paragraph."
Contractor further agrees to require all subcontractors to carry Workers' Compensation
Insurance as required by the Labor Code of the State of California.
14.Contractor shall, concurrent with the execution of this Contract, furnish two bonds
approved by the City, one in the amount of One Hundred Percent (100%) of the
Contract Price, to guarantee the faithful performance of the work ("PerformanceBond"), and one in the amount of One Hundred Percent (100%) of the ContractPrice to guarantee payment of all claims for labor and materials furnished ("Payment
Bond"). This Contract shall not become effective until such bonds are supplied to
and approved by the City.
15.a. Contractor shall procure and maintain at its own expense, until completion ofperformance, commercial general liability insurance of not less than One Million
Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars
($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss or
damage resulting from the wrongful or negligent acts by the Contractor or its
officers, employees, servants, volunteers and agents and independent contractors.Contractor shall provide insurance on an occurrence, not claims-made basis.
Contractor acknowledges and agrees that, for purposes of clarification with the
intention of avoiding gaps in coverage with any umbrella or excess insurance,
personal and advertising injury coverage shall be triggered by an "offense" whilebodily injury and property damage coverage shall be triggered by an "occurrence"during the policy period.
b.Contractor shall further procure and maintain at its own expense, until
completion of performance, commercial vehicle liability insurance covering personal
injury and property damage, of not less than One Million Dollars ($1,000,000)
combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the
aggregate, covering any vehicle utilized by Contractor or its officers, employees,
servants, volunteers and agents and independent contractors in performing theservices required by this Agreement.
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c.Contractor shall further procure and maintain at its expense, until completion
of performance, workers' compensation insurance providing coverage as requiredby the California State Workers' Compensation Law. If any class of employeesemployed by the Contractor pursuant to this Agreement is not protected by the
California State Workers' Compensation Law, Contractor shall provide adequate
insurance for the protection of such employees to the satisfaction of the City. This
provision shall not apply if Contractor has no employees performing work under this
Agreement. Contractor agrees to waive its statutory immunity under any worker'scompensation or similar statute, as respecting the City, and to require any and all
subcontractors and any other person or entity involved with the Project to do the
same.
Worker's Compensation Insurance:
o Contractor has no employees and is exempt from workers'compensation requirements.
o Contractor carries workers' compensation insurance for all employees.
d.All policies required by this section shall be secured from insurers authorizedto do business in the State of California with an "A" policyholder's rating or betterand a financial rating of at least Class VII, in accordance with the current Best's
Ratings.
e.Contractor agrees to require that all parties, including but not limited to
subcontractors, architects, engineers or others with whom Contractor enters intocontracts or whom Contractor hires or retains pursuant to or in any way related to
the performance of this Agreement, provide the insurance coverage required herein,
at minimum, and, except for worker's compensation coverage, name as additional
insureds the parties to this Agreement. Contractor agrees to monitor and review allsuch coverage and assumes all responsibility for ensuring that such coverage is
provided in conformity with the requirements of this Section.
f.In the event this Agreement is terminated for any reason prior to the
completion of all obligations and requirements of this Agreement, Contractor agreesto maintain all coverages required herein until the City provides written authorizationto terminate the coverages following the City's review and determination that all
liability posed under this Agreement as to the party providing insurance has been
eliminated.
g.Contractor agrees and acknowledges that if it fails to obtain all of the
insurance required in this Agreement in accordance with the requirements herein, orto obtain and ensure that the coverage required herein is maintained by any
subcontractors or others involved in any way with the Project, Contractor shall be
responsible for any losses, claims, suits, damages, defense obligations, or liability of
any kind or nature attributable to the City, and/or its officers, employees, servants,
volunteers, agents and independent contractors, that result from such failure by
Contractor.
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16.a. Contractor shall provide certificates of insurance with original endorsements
to the City as evidence of the insurance coverage required herein. Certificates of
such insurance shall be filed with the City on or before commencement ofperformance of this Agreement. Current certification of insurance shall be kept on
file with the City at all times until completion of performance and acceptance by the
City.
b.Notwithstanding any inconsistent statement in any required insurance policiesor any subsequent endorsements attached thereto, the commercial general liabilityand commercial vehicle liability policies shall bear endorsements whereby it is
provided that the City, and its officers, employees, servants, volunteers, agents and
independent contractors are named as additional insureds. Additional insureds shall
be entitled to the full benefit of all insurance policies in the same manner and to thesame extent as any other insureds and there shall be no limitation to the benefitsconferred upon them other than policy limits to coverages.
c.Contractor shall require the carriers of all required insurance policies to waive
all rights of subrogation against the City, and its officers, employees, servants,
volunteers, agents and independent contractors.
d.Each policy required herein must be endorsed to provide that the policy shallnot be cancelled in coverage or limits (except by paid claims) unless the insurer has
provided the City with 30 days prior written notice of cancellation. Contractor agrees
to provide the City with 30 days written notice prior to any non-renewal or reductionin coverage or limits.
e.All insurance policies required to be provided by Contractor or any other party
must be endorsed to provide that the policies shall apply on a primary and
noncontributing basis in relation to any insurance or self-insurance, primary orexcess, maintained or available to the City, and its officers, employees, servants,
volunteers, agents and independent contractors.
17.a. Contractor shall defend, indemnify and hold harmless the City, its officers,
officials, agents, employees and volunteers from and against any and all claims,
demands, actions, losses, damage, injuries, and liability, direct or indirect (includingany and all costs and expenses in connection therewith) to the extent actually
caused by the negligence of Contractor, Contractor's employees, subcontractors orindependent contractors except for any such claim arising out of the negligence or
willful misconduct of the City, or its officers, agents, employees or volunteers.
b.The City does not, and shall not, waive any rights that it may have against
Contractor under this Section because of the acceptance by the City, or the depositwith the City, of any insurance policy or certificate required pursuant to this
Agreement. The hold harmless, indemnification and duty to defend provisions of this
Section shall apply regardless of whether or not said insurance policies are
determined to be applicable to the claim, demand, action, damage, liability, loss,
cost or expense described herein.
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18.Any amendments to any of the Contract Documents, including but not limited to
Contract Change Orders, must be in writing executed by the Contractor and the
City. Any time an approval, time extension, or consent of the City is required under
the Contract Documents, such approval, extension, or consent must be in writing inorder to be effective.
19.The Contract Documents contain all of the agreements and understandings of the
parties and all previous understandings, negotiations, and contracts are integrated
into and superseded by this Contract.
20.In the event that any one or more of the phrases, sentences, clauses, paragraphs,or sections contained in this Contract shall be declared invalid or unenforceable by a
valid judgment or decree of a court of competent jurisdiction, such invalidity or
unenforceability shall not affect any of the remaining phrases, sentences, clauses,
paragraphs, or sections of this Contract which are hereby declared as severable and
shall be interpreted to carry out the intent of the parties hereunder.
21.The persons executing this Contract on behalf of the parties hereto warrant that they
are duly authorized to execute this Contract on behalf of said parties and that, by so
executing this Contract, the parties hereto are formally bound to the provisions of
this Contract.
22.This Contract shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, personal representatives, successors, and
assigns.
23.
24.
25.
26.
In performing its obligations and duties under this Contract, each party shall complywith all applicable local, state, and federal laws, regulations, rules, standards and
ordinances.
This Contract may be executed by the parties in counterparts, which counterparts
shall be construed together and have the same effect as if all of the parties hadexecuted the same instrument.
After completion of the work contemplated by this Contract, Contractor shall file with
the City Manager an affidavit stating that all workers and persons employed, all firms
supplying materials, and all subcontractors upon the project have been paid in full,
and that there are no claims outstanding against the project for either labor or
materials, except certain items, if any, to be set forth in an affidavit coveringdisputed claims or items in connection with a Stop Notice that has been filed under
the provision of the laws of the State of California.
All work shall be subject to inspection and testing by City and its authorized
representatives during manufacture and construction and all other times and places,
including, without limitation, the plans of Contractor and any of its suppliers.Contractor shall provide all reasonable facilities and assistance for the safety andconvenience of inspectors. All inspections and tests shall be performed in such
manner as to not unduly delay the work. The Work shall be subject to final
inspection and acceptance notwithstanding any payments or other prior inspections.
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Such final inspection shall be made within a reasonable time after completion of the
work.
27.Whenever Contractor has knowledge that any actual or potential labor dispute isdelaying or threatens to delay the timely performance of the Contract, Contractor
shall immediately give notice thereof, including all relevant information with respect
thereto, to City.
28.Contractor agrees to contact the appropriate regional notification center in
accordance with Government Code Section 4216.2.
29.Contractor shall submit its detailed plan for worker protection during the excavation
of trenches required by the scope of the work in accordance with Labor Code
Section 6705.
30.a. Contractor shall, without disturbing the condition, notify City, in writing, as
soon as Contractor, or any of Contractor's subcontractors, agents, or employeeshave knowledge and reporting is possible, of the discovery of any of the following
conditions:
i.The presence of any material that Contractor believes is
hazardous waste, as defined in Section 25117 of the Health andSafety Code;
ii.Subsurface or latent physical conditions at the site differing from
those indicated in the specifications; or
iii.Unknown physical conditions at the site of any unusual nature,different materially for those ordinarily encountered andgenerally recognized as inherent in work of the character
provided for in this Contract.
b.Pending a determination by City of appropriate action to be taken, Contractorshall provide security measures (e.g., fences) adequate to prevent the hazardous
waste or physical conditions from causing bodily injury to any person.
c.City shall promptly investigate the reported conditions. If City, through and in
the exercise of its sole discretion, determines that the conditions do materially differ
or do involve hazardous waste, and will cause a decrease or increase inContractor's cost of, or time required for, performance of any part of the work, then
City shall issue a change order.
d.In the event of a dispute between City and Contractor as to whether the
conditions materially differ, or involve hazardous waste, or cause a decrease or
increase in Contractor's cost of, or time required for, performance of any part of thework, Contractor shall not be excused from any scheduled completion date, and
shall proceed with all work to be performed under the contract. Contractor shall
retain any and all rights that pertain to the resolution of disputes and protests
between the parties.
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31.This Contract is to be governed by the laws of the State of California.
32.All work shall be guaranteed for a period of one (1) year from the date of acceptanceby the City. Contractor shall promptly make all needed repairs arising out of
defective materials, workmanship, and equipment.
City is hereby authorized to make such repairs if within ten (10) days after giving written
notice to Contractor, or its agent, Contractor should fail to make or undertake with due
diligence the aforesaid repairs; provided, however, that in case of an emergency, where, in the opinion of City, delay would cause serious loss or damage, repairs may be made without notice being sent to Contractor, and Contractor shall pay the costs thereof.
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IN WITNESS WHEREOF, the said Contractor and the Director of Public Works, City
Manager Mayor and City Clerk of the City have caused the names of said parties to be affixed hereto, the day and year first above written.
Contractor's Name:
Print Name of Construction Company
By: ----------Signature
Print Name
Contractor information:
Address for Notices and Payments
Telephone Number:
Email: ------------
ATTEST:
City Clerk
APPROVED AS TO FORM: RUTAN & TUCKER, LLP
CITY OF POWAY
a Municipal Corporation
City Manager of the City of Poway
END OF SECTION
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