G:\PW\SanWaterEng\Water\Projects\SV2213_WLR_PeppertreeWellsEhlersMyLarsonDennisRollins\STAFF REPORT
CITY OF SIMI VALLEY
MEMORANDUM
A
pril 25, 2022
TO
: Board of Directors, Ventura County Waterworks District No. 8 F
ROM: Department of Public Works
S
UBJECT: AWARD OF CONTRACT FOR CONSTRUCTION OF THE WATERLINE REPLACEMENT PROJECT; PEPPERTREE, WELLS, EHLERS, MY,
LARSON, DENNIS, ROLLINS, CP76300031, CP76300032 ,
SPECIFICATION NO. SV 22-13, AND APPROVAL OF A SUPPLEMENTAL
BUDGET REQUEST
STAFF RECOMMENDATION
I
t is recommended that the Board of Directors:
1. Aw
ard the attached contract (page 5) to J.A. Salazar Construction and Supply Corporation in the amount of $1,157,001 to construct the Waterline Replacement Project; Peppertree, Wells, Ehlers, My, Larson, Dennis, Rollins, Specification No.
SV 22-13;
2. Approve the Supplemental Budget Request to add $272,000 to the project budget (CP76300032 & CP76300031).
BACKGROUND AND OVERVIEW
O
n February 16, 2022, staff initiated bid solicitation to construct the Waterline Replacement Project. The project would construct approximately 2,809 linear feet of new six-inch and eight-inch waterlines. The project is located in the Santa Susana Knolls and Box Canyon areas (see Location Map, Attachment A, page 4).
The existing waterlines within the project limits were installed in the 1960’s. During their nearly 60- year life span, maintenance crews have made numerous repairs on an increasing basis due to severely corroded and deteriorating conditions. This project would replace these aging waterlines with new PVC and ductile iron waterlines.
AGENDA ITEM NO.
Consent (5)
G:
\PW\SanWaterEng\Water\Projects\SV2213_WLR_PeppertreeWellsEhlersMyLarsonDennisRollins\STAFF REPORT
FINDINGS AND ALTERNATIVES
A No
tice Inviting Bid s w as published in the Ventura County Star , submitted to various publications, plan rooms, contractors, and posted on the City’s website. On March 16, 2022, three bids were received, tabulated below:
CONTRACTOR BID
J.A. Salazar Construction and Supply Corporation $1,157,001 J. Vega Engineering, Inc. $1,340,393
Blois Construction, Inc. $1,628,701
Engineer’s Estimate $983,151
The
low bid submitted by J.A. Salazar Construction and Supply Corporation is responsive, and they are a responsible bidder with the proper license and a history of successfully completing projects for the District.
T
he project has a 150-day schedule, with work expected to take place from July to November 2022.
The
authorized project budget was developed prior to the design and bidding process, and after review of the bids and discussion with the contractors, it is believed that due to the rising costs of material, construction labor shortage, and supply chain issues, these changes resulted in an overall cost escalation. The current project balance is $904,670, so an additional $2 72,000 ( rounded) is required to cover the full cost of the project , including $20,000 for soils inspection . Accordingly, staff is requesting approval of a supplemental budget request in the amount of $ 272,000 related to this project (CP76300032 & CP76300031). The additional $272,000 will come from the Waterworks District’s fund balance.
T
he following alternatives are available to the Board of Directors:
1. Award the attached contract (page 5 ) to J.A. Salazar Construction and Supply Corporation in the amount of $1,157,001 to construct the Waterline Replacement Project; Peppertree, Wells, Ehlers, My, Larson, Dennis, Rollins , Specification No. SV 22-13;
2. A
pprove the Supplemental Budget Request to add $272,000 to the project budget (CP76300032 & CP76300031);
3. Do
not award a contract at this time and provide staff with alternate direction.
S
taff recommends Alternative Nos. 1 and 2.
2 G:
\PW\SanWaterEng\Water\Projects\SV2213_WLR_PeppertreeWellsEhlersMyLarsonDennisRollins\STAFF REPORT
SUGGESTED BOARD MOTION
I
move to award a contract to J.A. Salazar Construction and Supply Corporation in the amount of $1,157,001 to construct the Waterline Replacement Project; Peppertree, Wells, Ehlers, My, Larson, Dennis, Rollins , Specification No. SV 22-13, and approve a Supplemental Budget Request in the amount of $272,000.
SUMMARY
On
February 16, 2022, staff initiated bid solicitation to construct the Waterline Replacement Project; Peppertree, Wells, Ehlers, My, Larson, Dennis, Rollins. Three bids were received, and J.A. Salazar Construction and Supply Corporation submitted the lowest bid of $1,157,001. Staff recommends that the Ventura County Waterworks District No. 8 Board of Directors award the contract to J.A. Salazar Construction and Supply Corporation.
_______
_____________________________
Ronald K. Fuchiwaki
Public Works Director
P
repared by: Rob Herr, Assistant Engineer
INDEX Page
A
ttachment A – Location Map .......................................................... 4 Contract ............................................................................................ 5 3 PROJECT LOCATION
LOCATION MAP
VICINITY MAP
PROJECT LOCATION
WWD8 BOUNDARY
CITY BOUNDARY
CITY BOUNDARY
WWD8 BOUNDARY
COUNTY BOUNDARY
ATTACHMENT A
4 4
4 Specification No. SV 22-13
CONTRACT BETWEEN THE VENTURA COUNTY WATERWORKS
DISTRICT NO. 8 AND J.A. SALAZAR CONSTRUCTION
AND SUPPLY COMPANY, FOR WATERLINE REPLACEMENT;
PEPPERTREE, WELLS, EHLERS, MY, LARSON, DENNIS,
ROLLINS, CP76300031, CP76300032 , SPECIFICATION
NO. SV 22-13
T
HIS CONTRACT is made and entered into in the City of Simi Valley on this 25th day of April 2022, by and between the VENTURA COUNTY WATERWORKS DISTRICT NO. 8, a municipal corporation, hereinafter referred to as DISTRICT, and J.A. Salazar Construction and Supply Company, a California Corporation, hereinafter referred to as CONTRACTOR.
RECITALS
W
HEREAS, on February 16, 2022, DISTRICT invited bids for the Waterline Replacement; Peppertree, Wells, Ehlers, My, Larson, Dennis, Rollins, CP76300031, CP76300032, per Specification No. SV 22-13; and
W
HEREAS, pursuant to said invitation, CONTRACTOR submitted a Proposal which was accepted by DISTRICT for said project.
AGREEMENT
N
OW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
1. R
ecitals. The foregoing recitals are true and correct and are a part of this CONTRACT.
2. Te
rm. The term of this CONTRACT shall be from the date this CONTRACT is made and entered, as first written above, and shall be completed no later than 150 consecutive calendar days after receipt of the Notice to Proceed.
3. I
ncorporation By Reference. Public Contract Code Section 22300, Specification No. SV 22-13, consisting of 150 pages and all documents incorporated by reference therein, and the CONTRACTOR'S Bid consisting of the CONTRACTOR’S Proposal Statement, Proposed Schedule of Work and Prices, and Bidder’s Statement of Subcontractors and Material Fabricators, are hereby incorporated by reference and made a part of this CONTRACT.
4. P
recedence of CONTRACT Documents . If there is a conflict between or among CONTRACT documents, the document highest in precedence shall control. The precedence shall be:
F
irst: This Document consisting of 151 pages excluding
paragraph 3
Second: Permits from other agencies as may be required by law Third: Special Provisions
Fourth: Bid Terms and Conditions
5 5
Specification No. SV 22-13
Fifth: Detailed Plans
Sixth: Standard Plans
Seventh: Standard Specifications Modifications
Eighth: "Standard Specifications for Public Works Construction" (SSPWC)
Ninth: Reference Specifications
Tenth: CONTRACTOR'S Proposal
C
hange orders, supplemental agreements, and approved revisions to plans and specifications become a part of item First.
5. O
bligations of the DISTRICT.
A. T
he DISTRICT shall be obligated to pay CONTRACTOR
based upon the actual DISTRICT-authorized quantities in place and the unit and/or lump sum prices bid by CONTRACTOR, including but not limited to all labor, material and equipment, rather than the CONTRACT bid price.
B. D
ISTRICT shall make regular progress payments to the
CONTRACTOR within 30 days after mutual concurrence with the unit quantiti es and/or lump sum items of work performed, subject to applicable retention requirements. In no event shall the total amount paid exceed the CONTRACT bid price of $1,157,001, unless otherwise agreed to by the parties in writing.
C. U
pon receipt of an invoice for work performed to DISTRICT'S satisfaction, DISTRICT shall make progress payments within thirty (30) days of receipt of invoice. If the work is not performed satisfactorily or the invoice is defective, DISTRICT shall notify CONTRACTOR, in writing, of the reasons within seven (7) days of receipt of invoice. The intent of this Section is to comply with Public Contract Code Section 20104.50.
6. O
bligations of the CONTRACTOR.
A. C
ONTRACTOR shall perform as required by this
CONTRACT. CONTRACTOR agrees to perform the services more specifically set forth in the “Scope of Work” attached hereto and incorporated herein as Exhibit “A” and as further described in the incorporated documents. CONTRACTOR also warrants on behalf of itself and all subcontractors engaged for the performance of this CONTRACT that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.
B.
CONTRACTOR shall obey all Federal, State, local, and
special district laws, ordinances, and regulations.
6 6
Specification No. SV 22-13
C. CO NTRACTOR shall abide by the City of Simi Valley’s Business Tax Ordinance, of which proof of payment must be obtained prior to performance of this CONTRACT. CONTRACTOR shall maintain a valid Business Tax Certificate for the term of the CONTRACT.
D. P
revailing wage: In addition to any applicable federal
requirements, the CONTRACTOR shall comply with all applicable California laws related to prevailing wage, including but not limited to California Labor Code 1720 et seq. and all other California prevailing wage laws and regulations, and all requirements, regulations or decisions of the California Department of Industrial Relations related thereto.
CONTRACTOR further stipulates to follow all requirements and pay any penalties due, if any, under Section 1813 of the California Labor Code. The CONTRACTOR shall post the prevailing rate per diem wages at each job site. Further CONTRACTOR shall indemnify, defend, and hold DISTRICT harmless from any claim that prevailing wages should have been paid pursuant to this CONTRACT, including federal prevailing wage requirements under the Davis-Bacon Act, if applicable and shall be liable for the payment of same and any penalties thereon. CONTRACTOR is responsible for paying all legally required prevailing wages, and in the case of a difference between state and Federal law, the highest legally required rate.
C ONTRACTOR and all subcontractors must be registered
and remain registered with DIR (Department of Industrial Relations) through the term of the CONTRACT in accordance with the California Labor Code (“Labor Code”), in particular Labor Code Section 1771.1, and any successor or replacement provision thereto, unless a small project exemption applies ($25,000 for public works or $15,000 for maintenance). CONTRACTOR further agrees that it will follow all requirements and obligations set forth in Labor Code Section 1776.
7. Audit.
A. At any time during normal business hours and as often as the DISTRICT may deem necessary, CONTRACTOR shall make available to DISTRICT for inspection its records pertaining to this CONTRACT. CONTRACTOR shall permit DISTRICT to audit, examine and/or reproduce such records. CONTRACTOR will retain such financial records, time sheets, work progress reports, invoices, bills and project records for at least (2) years after termination or final payment under this CONTRACT.
This paragraph shall survive for two (2) years after termination of this CONTRACT.
B. DISTRICT shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to DISTRICT as a condition precedent to any payment to CONTRACTOR.
8. Hold Harmless and Indemnification . CONTRACTOR shall defend, indemnify, and hold harmless DISTRICT, its agents, officials, officers, representatives, and employees, from and against all claims, lawsuits, liabilities or damages of whatever nature arising out of or in connection with, or relating in any manner to any act or omission of CONTRACTOR, its agents, employees, and subcontractors, and employees thereof, pursuant to the performance or non-performance of this CONTRACT.
The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the DISTRICT and do whatever is necessary to protect the DISTRICT, its agents, officials, officers, representatives, and employees as to any such claims, lawsuits, liabilities, 7 7
Specification No. SV 22-13
expenses, or damages arising out of this CONTRACT. The DISTRICT shall be included as an Additional Insured in the automobile/liability insurance policies and endorsements of the CONTRACTOR. The CONTRACTOR must select an attorney acceptable to the DISTRICT who will defend such proceeding and the DISTRICT will control any litigation thereof. Such approval by the DISTRICT will not be unreasonably withheld. This paragraph shall survive the termination of the CONTRACT.
9. A
mendments. Any amendment, modification, or variation from the terms of this CONTRACT shall be in writing and shall be effective only upon mutual written approval by the District Manager and CONTRACTOR.
10. An
ti-Discrimination. In the performance of the terms of this CONTRACT, CONTRACTOR shall not engage in, nor permit subcontractors to engage in, discrimination in employment of persons because of the age, race, color, religious creed, sex, sexual orientation, national origin, ancestry, physical disability, mental disability, medical condition, or marital status of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735.
11. Te
rmination. If, during the term of this CONTRACT, DISTRICT determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein, DISTRICT may notify CONTRACTOR in writing of such defect or failure to perform. The notice must give to the CONTRACTOR a ten (10) day period of time thereafter in which to perform said work or cure the deficiency. If CONTRACTOR has not performed the work or cured said deficiency within the ten (10) days specified in the notice, such failure shall constitute a breach of this CONTRACT, and DISTRICT may terminate this CONTRACT immediately by written notice to CONTRACTOR t o said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under this CONTRACT except, however, any and all obligations of CONTRACTOR'S surety shall remain in full force and effect and shall not be extinguished, reduced, or in any manner waived by the termination hereof. In said event, CONTRACTOR shall be entitled to the reasonable value of its services performed from the beginning of the period in which the breach occurs up to the day it received DISTRICT'S Notice of Termination, minus any damages, including liquidated damages if so provided herein, occasioned by such breach. DISTRICT reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the DISTRICT'S sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall CONTRACTOR be entitled to receive in excess of the compensation quoted in its bid.
12. I
nsurance. CONTRACTOR shall, prior to commencing performance hereunder, submit proof of all insurance coverage as required by the Specification or other document incorporated in and made a part of this CONTRACT. 13 . Complete CONTRACT . This CONTRACT shall constitute the complete CONTRACT between the parties hereto. No verbal agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of 8 8
Specification No. SV 22-13
any force or effect, nor shall any such verbal agreement, understanding, or representation be binding upon the parties hereto.
1 4. Independent Contractor. It is expressly understood between the parties to this CONTRACT that no employee/employer relationship is intended; CONTRACTOR is an independent contractor.
1 5. Time of Performance. Time is of the essence in this CONTRACT. 1 6. Liquidated Damages. Should the CONTRACTOR fail to complete the project, or any part thereof, in the time agreed upon in the CONTRACT or within such extra time as may have been allowed for delays or extensions granted as provided in the CONTRACT, the CONTRACTOR shall reimburse the DISTRICT for the additional expense and damage for each calendar day that the CONTRACT remains uncompleted after the CONTRACT completion date. It is agreed that the amount of such additional expense and damage incurred by reason of failure to complete the CONTRACT is the per diem rate $ 1,000 per calendar day. Such amounts are hereby agreed upon as liquidated damages for the loss to the DISTRICT resulting from the failure of the CONTRACTOR to complete th e project within the allotted time and to the value of the operation of the works dependent thereon.
I
t is expressly understood and agreed that this amount is a reasonable amount and is established in lieu of damages which are incapable of calculation at the inception hereof; and this amount is not to be considered in the nature of a penalty. The DISTRICT shall have the right to deduct such damages from any amount due, or that may become due to the CONTRACTOR, or the amount of such damages shall be due and collectible from the CONTRACTOR or the CONTRACTOR'S Surety.
P
rogress payments made after the scheduled completion date shall not constitute a waiver of liquidated damages.
1 7. Conflict of Interest . Neither CONTRACTOR nor any employees, agents, or subcontractors of CONTRACTOR who will be assigned to this project, to the best of CONTRACTOR'S knowledge, own any property or interest in properties, business relationships, or sources of income which may be affected by the performance of this CONTRACT. Should one party hereto learn of any such interest, income source, or business relationship, such fact shall immediately be brought to the attention of the other party hereto. If the parties thereupon cannot mutually agree upon a means to eliminate the conflict, DISTRICT may terminate the CONTRACT immediately for non-performance pursuant to Section 11 herein.
1 8. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without the prior written consent of the other party, and any such assignment without said consent shall be void. 9 9
Specification No. SV 22-13
19 . Authority to Execute Contract . Both DISTRICT and CONTRACTOR do covenant that each individual executing this CONTRACT on behalf of each party is a person duly authorized and empowered to execute contracts for such party.
20. Jurisdiction and Venue . Juris diction is in an appropriate court in the State of California and venue lies in Ventura County, and the parties do not consent to arbitration. In the event of any dispute, each party shall bear its own fees and costs (including attorneys’ fees). This CONTRACT shall be governed by California law, without regard to conflict of law principles.
21. Non-Appropriation of Funds . Payments due and payable to CONTRACTOR for current goods and/or services are within the current budget and within an available, unexhausted and unencumbered appropriation of DISTRICT. In the event DISTRICT has not appropriated sufficient funds for payment of goods and/or services beyond the current fiscal year, this CONTRACT shall cover only those costs incurred up to the conclusion of the current fiscal year.
2 2. Notices. All written notices required by, or related to this CONTRACT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this CONTRACT shall refuse to accept such mail; the parties to this CONTRACT shall promptly inform the other party of any change of address. All notices required by this CONTRACT are effective on the day of receipt, unless otherwise indicated herein. The mailing address of each par ty to this CONTRACT is as follows:
DI
STRICT Ronald K. Fuchiwaki, Director
Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Rob Herr, Assistant Engineer
(805) 583-6871
10 10
Specification No. SV 22-13
CONTRACTOR J.A. Salazar Construction and
Supply Corporation
613 North Harbor Boulevard
La Habra, CA 90631
Staff Contact: Jose Salazar
(562) 691-3647
I
N WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
A
ttest: Ventura County Waterworks District No. 8,
A Municipal Corporation
B y:
Lucy Blanco, District Secretary Keith L. Mashburn, Chair of the Ventura County Waterworks District No. 8
A
pproved as to Form: J.A. SALAZAR CONSTRUCTION
AND SUPPLY CORPORATION
B y:
David L. Caceres, District Counsel
T itle:
Approved as to Content:
P rint Name:
Brian Paul Gabler, District Manager By:
T itle:
Alison M. Phagan
Deputy Administrative Services Director Print Name:
(Support Services)
Ronald K. Fuchiwaki
Public Works Director
11 11
Specification No. SV 22-13
EXHIBIT “A”
SCOPE OF WORK
CO
NTRACT BETWEEN THE VENTURA COUNTY WATERWORKS
DISTRICT NO. 8 AND J.A. SALAZAR CONSTRUCTION AND
SUPPLY CORPORATION FOR WATERLINE REPLACEMENT;
PEPPERTREE, WELLS, EHLERS, MY, LARSON, DENNIS,
ROLLINS, CP76300031, CP76300032 , SPECIFICATION
NO. SV 22-13
T
he project generally consists of constructing approximately 2,809 linear feet of 6-inch to 8-inch diameter DI & PVC waterline, water service line replacement, including rock excavation, ductile iron fittings, air -vac assemblies, blow off assemblies, fire hydrant installations, traffic control, potholes and reporting, submittals, sheeting shoring and bracing, restrained joints, thrust blocks, connections to the existing water system, hydrostatic testing, disinfection and bacteria testing, excavation, backfill, asphalt repaving, pipeline abandonment, pipeline removal, and appurtenant work. The water line is located in the public right-of-way. Coordination with property owner/residents and a City and County of Ventura Encroachment Permit is required. The anticipated completion date for this project is the 12
th day of November, 2022.
12 12