Item 5 - Award of Contract to Letner Roofing Co. for Poway Swim Center Locker Room Roof Replacement RFP No. 23-011DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
CITY COUNCIL
February 21, 2023
Honorable Mayor and Members of the City Council
Eric Heidemann, Director of Public Works ~ +
Will Wiley, Assistant Director of Public Works for Maintenance Operation
(858) 668-4705 or wwiley@poway.org
Award of Contract to Danny Letner, Inc. DBA Letner Roofing Company for the
Poway Swim Center Locker Room Roof Replacement Project; RFP No. 23-011
An informal request for bids for the Poway Swim Center Locker Room Roof Replacement Project, RFP
No. 23-011, was solicited on December 16, 2022, by the City of Poway (City). Bids for this project were
solicited directly from a pre-approved list of contractors in an informal bidding process under the
California Uniform Public Construction Cost Accounting Act (CU PC CAA). The informal bidding process
does not require public advertisement, but a proposal number was assigned for internal
record keeping purposes. A mandatory pre-bid meeting was held on January 5, 2023, and attended
by six (6) contractors. Four (4) bids were received and opened on January 17, 2023. Staff reviewed
the bids and determined the lowest responsible and responsive bidder to be Danny Letner, Inc. DBA
Letner Roofing Company (Letner Roofing Company).
Recommended Action:
It is recommended City Council award the contract for the Poway Swim Center Locker Room Roof
Replacement Project to Danny Letner, Inc. DBA Letner Roofing Company in the amount of $133,825.00
and authorize the City Manager to execute any necessary documents.
Discussion:
As part of the annual budget process, funds are allocated for capital projects through the Capital
Improvement Program (CIP) for investment in City infrastructure, including City facilities. During the
Fiscal Year 2022-23 budget process funds were allocated to the Facilities General Maintenance Roofing
Project (MN035). It was determined a portion of the funds would be utilized for the locker room roof
replacement at the Poway Swim Center. The roof was not included in the 2018 renovations at the
facility, and it is in need of replacement. The scope of work for this project consists of the labor and
incidental materials only, as the City purchased materials through the California Multiple Award
Schedules (CMAS) cooperative purchasing program. Materials were purchased under a purchase
order with Weatherproofing Technologies, Inc. This eliminated contractor mark-up on the materials
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for the project. All project work will be coordinated with the Community Services Department. The
work can be completed while the facility is occupied, so there will be no interruptions to facility
operations. The contract time for this project is 15 working days.
On December 16, 2022, bids were solicited directly from six (6) contractors on the City's pre-approved
list of contractors in an informal bidding process under CUPCCAA. To be placed on the pre-approved
contractors list, contractors must complete the contractor's pre-qualification application form
available on the City's website. Annually, the City provides notice of the registration opportunity to
contractors through written notice published in trade journals. On January 5, 2023, City staff held a
mandatory pre-bid meeting at the Poway Swim Center, which was attended by the six (6) contractors.
Four (4) bids were received and opened on January 17, 2023. The bids received were more than the
estimated project budget, so staff requested best and final offers (BAFO) from all four (4) proposing
contractors. Three (3) BAFO bids were received on January 26, 2023. A summary of the bids received
is provided in Table 1 below:
Table 1: Poway Swim Center Locker Room Roof Replacement Project Bids Summary
Company Original Bid Best and Final (BAFO) Bid
A Good Roofer, Inc. $306,838.00 N/A
Chambers Inc. DBA $140,810.00 $140,710.00 Roof Construction
Danny Letner, Inc. DBA $224,075.00 $133,825.00 Letner Roofing Company
Sylvester Roofing Co. Inc. $161,000.00 $161,000.00
The low bid submitted by Letner Roofing Company was responsive and met the requirements of the
bid specifications. Based on the bids received and the work required to complete the project, Letner
Roofing Company's price is fair, reasonable, and Letner Roofing Company is qualified to complete the
work. Staff recommends the contract be awarded to Letner Roofing Company for the labor to replace
the roof at the Poway Swim Center in the total amount of $133,825.00. The Capital Facilities
Renovation Roofing Project (MN035) has a remaining balance of $62,435.19 to award this contract.
Due to increased labor costs, available remaining funds from Capital Facilities Renovation Project
(MN027) will also be used. The total project amount, including $53,036.17 in materials cost, is
$186,861.17.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The Capital Facilities Renovation Roofing Project (MN035) includes $62,435.19 to award a portion of
this contract. There is sufficient funding available in Capital Facilities Renovation Project (MN027) to
award the remaining $71,389.81. This project is being split amongst project accounts due to increased
materials and labor costs.
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Public Notification:
None.
Attachments:
A. Contract
Reviewed/ Approved By:
We ~Kaserman
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
City Manager
February 21, 2023, Item #5
SECTION 8
CONSTRUCTION CONTRACT
CITY OF POWAY
Poway Swim Center Locker Room Roof Replacement
This Contract made and entered into this 22nd day of February, 2023, by and between
City of Poway, a municipal corporation of the State of California, hereinafter referred to
as "City" and Danny Letner, Inc. OBA Letner Roofing Company, 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: Services to be performed include furnishing of all
labor, tools, equipment, services, and incidental and customary work necessary to
competently perform the roof replacement at the City of Poway Swim Center
Locker Room facility.
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,
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the work hereinafter set forth in accordance with the Contract adopted by the City
Council.
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 One Hundred
Thirty-Three Thousand, Eight Hundred Twenty-Five Dollars ($133,825) the
"Contract Price."
City agrees to make progress payments and final payment in accordance with the
method set forth in the Special Provisions.
6. 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 Fifteen (15) Working
Days after the date specified in the Notice to Proceed.
7. 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 ($500.00) 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.
8. 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 .
9. 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.
10. 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.
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11. 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
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 the
employment 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 ("Performance
Bond"), and one in the amount of One Hundred Percent (100%) of the Contract
Price 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
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of performance, commercial general liability insurance of not less than One Million
Dollars ($2,000,000) combined single limit per occurrence, and Two Million Dollars
($4,000,000) 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" while bodily injury and property damage coverage shall be triggered
by an "occurrence" during the policy period.
February 21, 2023, Item #5
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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 the services required by this Agreement.
c. Contractor shall further procure and maintain at its expense, until
completion of performance, workers' compensation insurance providing coverage
as required by the California State Workers' Compensation Law. If any class of
employees employed 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's compensation 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
authorized to do business in the State of California with an "A" policyholder's rating
or better and 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 into
contracts 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 all such 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
agrees to maintain all coverages required herein until the City provides written
authorization to 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 .
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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,
or to 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.
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 of
performance 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
policies or any subsequent endorsements attached thereto, the commercial
general liability and 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 the same extent as any other insureds and there shall be
no limitation to the benefits conferred 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
shall not 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 reduction in 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 or
excess, 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,
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officials, agents, employees and volunteers from and against any and all claims,
demands, actions, losses, damage, injuries, and liability, direct or indirect
(including any and all costs and expenses in connection therewith) to the extent
actually caused by the negligence of Contractor, Contractor's employees,
subcontractors or independent contractors except for any such claim arising out of
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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 deposit
with 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.
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
in order 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. In performing its obligations and duties under this Contract, each party shall
comply with all applicable local, state, and federal laws, regulations, rules,
standards and ordinances.
24. 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 had
executed the same instrument.
25. 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 covering
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disputed claims or items in connection with a Stop Notice that has been filed under
the provision of the laws of the State of California.
26. 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 and
convenience 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. 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 is
delaying 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 employees
have 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 and
Safety 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 and
generally 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,
Contractor shall 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 in
Contractor's cost of, or time required for, performance of any part of the work, then
City shall issue a change order.
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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
the work, 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.
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
acceptance by 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 City Manager, City Clerk and City
Attorney have caused the names of said parties to be affixed hereto, the day and year
first above written.
Contractor's Name:
Danny Letner, Inc. OBA Letner Roofing
Company
By: -------------Signature
Print Name
Contractor information:
Address for Notices and Payments
Telephone Number: ______ _
Email: ------------
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Alan Fenstermacher, City Attorney
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CITY OF POWAY
a Municipal Corporation
Chris Hazeltine, City Manager
February 21, 2023, Item #5