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HomeMy WebLinkAboutI-15 Staff Report - Award Construction Contract for Azusa Substation Expansion ProjectAward Miron Electric Construction Inc. Contract LD2020-CB-Construction July 20, 2020 Page 2 UB CONSENT ITEM I-15 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: JULY 20, 2020 SUBJECT: AWARD CONSTRUCTION CONTRACT FOR CAPITAL IMPROVEMENT PROJECT LD2020-CB-CONSTRUCTION FOR THE CONSTRUCTION OF A CIRCUIT BREAKER EXPANSION AT THE AZUSA SUBSTATION BACKGROUND During its regular meeting on April 20, 2020 the Utility Board approved the bid document LD2020-CB-Construction and authorized the City Clerk’s office to advertise and solicit bids for the construction of the Azusa Substation Circuit Breaker Expansion Project (Consent item H-3). On April 24, 2020 three bids for the Construction phase of the Azusa Substation Expansions were received and publicly opened at the City Clerk office. Staff has reviewed all bids and determined that the bid submitted by Miron Electric Construction Inc. (MEC) Incorporated is the lowest responsible bid and is in substantial conformance to the plans and specifications. Staff is seeking approval of Utility Board for awarding the construction contract to MEC Inc. RECOMMENDATION: Staff recommends the Utility Board take the following action: 1)Approve the Award of Contract for Electric Project LD2020-CB-Construction to Miron Electric Construction Inc. in an amount not-to-exceed amount of $282,700; and 2) Authorize the Mayor to execute the Contract in a form acceptable to the City Attorney. ANALYSIS: With the Utility Board’s approval, On May 8, 2020 the City Clerk’s Office Advertised to solicit for bids for this project on the San Gabriel Valley Tribune. On May 21, 2020, Staff held a Mandatory Job Walk at the Azusa Substation to discuss the scope of work and the project requirements of the bid document with prospective bidders. The Scope of works entails installing concrete pad, steel structures, circuit breaker, switches, relay, and miscellaneous electrical and control wirings. On June 24, 2020, all three bids were opened and publically announced at the City Clerk’s office. The bid results are tabulated below. APPROVED UTILITY BOARD 7/20/2020 Award Miron Electric Construction Inc. Contract LD2020-CB-Construction July 20, 2020 Page 2 Table 1 - Bid Results Bidders TOTAL Bid Amount Miron Electric Construction, Inc. $282,700.00 Asplundh Construction, LLC $366,575.00 Turbine Repair Services $405,179.83 In conjunction with EPS (Owner’s Engineer), Staff has reviewed bid submitted by Miron Electric Construction, Inc. and found it is in conformance with the scopes and specifications. Staff is seeking Utility Board’s approval in awarding a Constructions Contract to MEC Inc. to construct the bus tie expansion at the Azusa Substation FISCAL IMPACT: Funding for this project is budgeted for under the Utility’s Capital Improvement Budget Acct # 33- 80-000-730-7120. Prepared by: Reviewed and Approved: Hien K. Vuong Manny Robledo Assistant Director of Utilities Director of Utilities Electric Operations Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1. Miron Electric Construction Inc Proposal 2. LD2020-CB-Construction Agreement Attachment 1 Agreement THIS AGREEMENT, made and entered into as of this day of , 2020 by and between the CITY OF AZUSA, hereinafter called "City" and ___________________ hereinafter called "Contractor". WITNESSETH: That the parties hereto do mutually agree as follows: ARTICLE I: For and in consideration of the payments and agreement hereinafter mentioned to be made and performed by said City, said Contractor agrees with said City to perform and complete in a workmanlike manner all work required under the City's Specifications entitled: “CONTRACT DOCUMENTS, PLANS, AND SPECIFICATIONS FOR THE FURNISHING AND CONSTRUCTION OF TIE BREAKER ADDITION AT THE AZUSA SUBSTATION AS SPECIFIED FOR PROJECT NO. LD2020-CB-CONSTRUCTION” in accordance with the Specifications and Drawings thereof, to furnish at his own expense all labor, materials, equipment, tools, supplies, transportation, utilities, bonds and insurance, permits and services necessary therefore, except such materials, equipment, and services as may be stipulated in said Specifications to be furnished by said City, and to do everything required by this Agreement and the said Specifications and Drawings. ARTICLE II. For furnishing all said labor, materials, equipment, tools, and services, furnishing and removing all plant, temporary structures, tools, and equipment, and doing everything required by this Agreement and the said Specifications and Drawings; also for all loss and damage arising out of the nature of the work aforesaid, or from the action of the elements, or from any seen unforeseen difficulties which may arise during the prosecution of the work until its acceptance by said City, and for all risks of every description connected with the work; also for all expenses resulting from the suspension or discontinuance of work, except as in the said Specifications are expressly stipulated to be borne by said City; and for completing the work in accordance with the requirements of said Specifications and Drawings as directed by the Engineer, said City will pay and said Contractor shall receive, in full compensation therefore, the price(s) named in the Proposal. ARTICLE III. The City hereby employs said Contractor to perform the work according to the terms of this Agreement for price(s) named in the Proposal, and agrees to pay the same at the time, in the manner, and upon the conditions as stipulated in the said Specifications; and the said parties for themselves, their heirs, executors, administrators, successors, and assigns, do hereby agree to the full performance of the covenants contained. ARTICLE IV. The Notice Inviting Bids, Instruction to Bidders, Proposal, Information Required of Bidder, the Faithful Performance Bond, the Labor and Material Bond, the General Conditions, Special Provisions, Technical Specifications, Plans, Drawings, and all Addenda issued by the City with respect to the foregoing prior to the opening of bids, are hereby incorporated in and made part of this Agreement. Attachment 2 ARTICLE V. All time limits stated in the Contract Documents are of the essence of this Agreement. No work, services, materials or equipment shall be performed or furnished under this Agreement unless and until a Notice to Proceed has been given to the Contractor by the City. City shall, with no liability to Contractor whatsoever, have an absolute right to withhold delivery of a Notice to Proceed until the expiration of statute of limitations for challenging the City's environmental review of this project. City shall, also with no liability whatsoever to Contractor, have an absolute right to cancel this Agreement in the event that litigation is filed against the City challenging the City's environmental review process. Notwithstanding the foregoing, the City's said right to cancellation must be exercised not later than 45 days following the bid opening date, and before delivery of a Notice to Proceed to Contractor. IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed as of the day and year first above written. CONTRACTOR'S SIGNATURES MUST BE NOTARIZED AND THE NOTARY ACKNOWLEDGMENT MUST SPECIFY THAT THE SIGNER OF THE AGREEMENT IS AUTHORIZED TO EXECUTE THE AGREEMENT. THE CITY'S ATTORNEY SHALL DETERMINE THE SUFFICIENCY OF CONTRACTOR'S SIGNATURES, AND MAY REQUIRE NOTARIZED SIGNATURES FROM TWO OFFICERS IN THE EVENT THAT CONTRACTOR IS A CORPORATION. CITY OF AZUSA CONTRACTOR By: By: Joseph Romero Rocha Mayor Name: Attest: Title: Jeffrey Lawrence Cornejo Jr. (corporate seal) City Clerk Approved as to Form: Best Best & Krieger LLP Jeff F. Ferre City Attorney FAITHFUL PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS, that _________________________________ as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: ________________________________________________ and no/100 ($_____________) dollars, lawful money of the United States, said sum being not less than one hundred percent (100%) of the total Contract amount, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has been awarded and is about to enter into the annexed agreement with said City to perform all work required under the City's Specifications entitled: “CONTRACT DOCUMENTS, PLANS, AND SPECIFICATIONS FOR THE FURNISHING AND CONSTRUCTION OF TIE BREAKER ADDITION AT THE AZUSA SUBSTATION AS SPECIFIED FOR PROJECT NO. LD2020-CB-CONSTRUCTION” NOW, THEREFORE, if said Contractor shall perform all the requirements of said agreement required to be performed on his part, at the times and in the manner specified herein and shall indemnify and save harmless the said City, its officers, employees and agents, as therein stipulated, then this obligation shall be null and void, otherwise it shall remain in full force and effect. PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made pursuant to the terms of said Contract, shall not in any way release said Contractor or said Surety thereunder, nor shall any extensions of time granted under the provisions of said Contract release either said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived by said Surety. In the event suit is brought upon this Bond by said City and judgment is recovered, (or settlement made which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED, this___________ day of______________, 2020 . Principal Surety By By ______________________________ Its Its _____________________________ By By ______________________________ Its Its ______________________________ Surety's Phone___________________________ Address ____________________________________________________________ ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. LABOR AND MATERIAL BOND KNOW ALL PERSONS BY THESE PRESENTS, that _________________________________ as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: ________________________________________________ and no/100 ($_____________) dollars, lawful money of the United States, said sum being not less than one hundred percent (100%) of the total Contract amount, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has been awarded and is about to enter into the annexed agreement with said City to perform all work required under the City's Specifications entitled: “CONTRACT DOCUMENTS, PLANS, AND SPECIFICATIONS FOR THE FURNISHING AND CONSTRUCTION OF TIE BREAKER ADDITION AT THE AZUSA SUBSTATION AS SPECIFIED FOR PROJECT NO. LD2020-CB-CONSTRUCTION” THE CONDITION OF THE OBLIGATION IS SUCH THAT, if said Contractor or any of his Sub-contractors, fails to pay for any materials, equipment, or other supplies, or for rental of same used in connection with the performance of work contracted to be done or for work or labor thereon of any kind, or fails to pay any of the persons named in Section 3181, California Civil Code or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant or for any amounts required to be deducted, withheld and paid to the Employment Developmental Department or its successor(s) from the work of employees of the Contractor and his Sub-contractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay for the same in an amount not exceeding the sum specified above. This bond shall inure to the benefit of any persons named in Section 3181 of said California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. This bond shall be subject to and include all of the consistent provisions of the Civil Code of the State of California relating to Payment Bonds for Public Works, including but not limited to Civil Code, Sections 3225-3226 and Section 3247-3252. PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made pursuant to the terms of said Contract, shall not in any way release either said Contractor or said Surety thereunder, nor shall any extensions of time granted under the provisions of said Contract release either said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived by said Surety. LABOR AND MATERIAL BOND In the event suit is brought upon this bond by said City and judgment is recovered, (or settlement made which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED, this__________ day of______________, 2020 . Principal Surety By By ______________________________ Its Its _____________________________ By By ______________________________ Its Its ______________________________ Surety's Phone___________________________ Address ____________________________________________________________ ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into this ______ day of ____________, 2020 , by and between the CITY OF AZUSA, whose address is 213 E. Foothill Blvd., Azusa, California, 91702 (hereinafter called "City"); __________________________________________, whose address is _____________________________________________________, (hereinafter called "Contractor"); and ________________________________________________________, whose address is __________________________________________________________, (hereinafter called "Escrow Agent"). For the consideration hereinafter set forth, the City, Contractor and Escrow Agent agree as follows: 1. Pursuant to Section 22300 of the Public Contract Code of the State of California, the Contractor has the option to deposit securities with the Escrow Agent as a substitute for retention earnings required to be withheld by the City pursuant to the Contract Agreement entered into between the City and Contractor for the construction of , in the amount of $ dated , (hereinafter referred to as the "Contract"). Alternatively, on written request of the Contractor, the City shall make payments of the retention earnings directly to the Escrow Agent. When the Contractor deposits the securities as a substitute for Contract earnings, the Escrow Agent shall notify the City within ten (10) days of the deposit. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention under the terms of the Contract between the City and Contractor. Securities shall be held in the name of the City of Azusa, and shall designate the Contractor as the Beneficial Owner. 2. The City shall make progress payments to the Contractor for those funds which otherwise would be withheld from progress payments pursuant to the Contract provisions, provided that the Escrow Agent holds securities in the form and amount specified above. 3. When the City makes payment of retentions earned directly to the Escrow Agent, the Escrow Agent shall hold them for the benefit of the Contractor until such time as the escrow created under this Contract is terminated. The Contractor may direct the investment of the payments into securities. All terms and conditions of this Agreement and the rights and responsibilities of the parties shall be equally applicable and binding when the City pays the Escrow Agent directly. 4. The Contractor shall be responsible for paying all fees for the expenses incurred by the Escrow Agent in administering the escrow account. These expenses and payment terms shall be determined by the Contractor and Escrow Agent. 5. The interest earned on the securities or the money market accounts held in escrow and all interest earned on that interest shall be for the sole account of Contractor and shall be subject to withdrawal by the Contractor at any time and from time to time without notice to the City. ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION 6. The Contractor shall have the right to withdraw all or any part of the principal in the Escrow Account by written authorization from the City to the Escrow Agent that the City consents to the withdrawal of the amount sought to be withdrawn by the Contractor. 7. The City shall have a right to draw upon the securities in the event of default by the Contractor. Upon seven (7) days written notice to the Escrow Agent from the City of the default, the Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the City. 8. Upon receipt of written notification from the City certifying that the Contract is final and complete, and that the Contractor has complied with all requirements and procedures applicable to the Contract, the Escrow Agent shall release to the Contractor all securities and interest on deposit less escrow fees and charges of the Escrow Account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payments of fees and charges. 9. The Escrow Agent shall rely upon the written notification from the City and the Contractor pursuant to Sections (1) to (8), inclusive, of this Agreement and the City and Contractor shall hold the Escrow Agent harmless from the Escrow Agent's release, conversion, and disbursement of the securities and interest as set forth above. 10. The names of the persons who are authorized to give written notice or to receive written notice on behalf of the City and on behalf of the Contractor in connection with the foregoing, and exemplars of their respective signatures are as follows: ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION On behalf of the City: On behalf of Contractor: City Manager ______________________ Title ___________ Signature Name 213 E. Foothill Blvd. Azusa, CA 91702 Signature Address _____________ _________________ Address On behalf of Escrow Agent: __________________________________ Title __________________________________ Name __________________________________ Signature __________________________________ __________________________________ Address At the time the Escrow Account is opened, the City and the Contractor shall deliver to the Escrow Agent a fully executed counterpart of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above. City: Contractor: City Manager Title Signature Signature