A2266.SR AMD.JD
C
ITY OF SIMI VALLEY
MEMORANDUM
J
uly 25, 2022
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: AUTHORIZATION TO AMEND THE CONTRACT AND APPROVE A
SUPPLEMENTAL BUDGET REQUEST FOR THE PAVEMENT
RESURFACING PROJECT AT THE WATER QUALITY CONTROL PLANT
(WQCP) – PHASE 3, SPECIFICATION NO. SV 21-04R, CP975241
STAFF RECOMMENDATION
I
t is recommen ded that the City Council a pprove the attached contract amendment (page 4) t o The Adjul Corporation dba Lee Construction Company, in the amount of $39,547.90, for the Pavement Resurfacing Project at the Water Quality Plant – Phase 3, Specification No. SV 21-04R.
BACKGROUND AND OVERVIEW
O
n April 25, 2022, the City Council awarded a contract to Lee Construction Company in the amount of $227,716.00 to construct the Pavement Resurfacing Project at the WQCP – Phase 3. The project consisted of removing and replacing existing asphalt pavement, adjusting utility covers, and concrete curb & gutter, sidewalk, and driveway apron replacement.
In
itial pavement removal operations revealed deteriorated concrete pavement and deficient subgrade. In addition, unexpected field conditions were encountered .
Staff authorized the contractor to make the corrections for a negotiated cost of $39,547.90
FINDINGS AND ALTERNATIVES
Du
ring construction, it was identified that deteriorated concrete pavement needed to be replaced and an area of the existing subgrade was found to be wet and unable to meet the compaction requirements. I n addition, the field conditions were different than expected and the asphalt quantities needed to be adjusted to complete the work. In order to prevent a delay from the c ontractor and to open the WQCP for operations, staff approved the additional work.
AGENDA ITEM NO.
Consent (2)
A2266.SR AMD.JD
The additional work that was performed requires a contract amendment in the amount of $39,547.90, for a total amended contract amount not to exceed $267,263.90. The remaining project budget CP975241 contains $24,587.84; therefore, staff is requesting that the City Council approve a supplemental budget in the amount of $15,200.00.
T
he following alternatives are available to the City Council:
1. A
uthorize the contract amendment to Lee Construction Company in the amount of $39,547.90 for the Pavement Resurfacing Project at the Water Quality Control Plant (WQCP) – Phase 3, Specification No. SV 21-04R, CP975241;
2. A
pprove a supplemental budget request of $15,200.00;
3. Do
not amend the contract for this project and provide staff with further direction.
S
taff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to amend the contract to The Adjul Corporation DBA Lee Construction Company in the amount of $39,547.90 for the Pavement Resurfacing Pr oject at the Water Quality Control Plant (WQCP) – Phase 3, Specification No. SV 21-04R, and approve a supplemental budget request in the amount of $15,200 in the Sanitation Replacement Fund (Fund 702).
SUMMARY
On April 25, 2022, a contract was awarded to The Adjul Corporation DB A Lee Construction Company in the amount of $227,716.00 to construct th e Pavement Resurfacing Project. The project encountered unantic ipated extra work that has resulted in a contract amendment. Staff recommends that the City Council amend the contract with Lee Construction Company, in the amount of $39,547.90, and approve the supplemental budget request for $15,200.00. ___
_________________________________
Ronald K. Fuchiwaki
Public Works Director
P
repared by: Jamshed Yazdani, Associate Engineer
INDEX Page
A
ttachment A – Location Map .......................................................... 3 Contract Amendment ....................................................................... 4 Attachment B – Original Contract ..................................................... 7 2 W LOS ANGELES AVE
ATTACHMENT A
3 A2266.CON AMD.JD
FIRST AMENDMENT TO CONTRACT BETWEEN THE CITY OF
SIMI VALLEY AND THE ADJUL CORPORATION DBA LEE
CONSTRUCTION COMPANY FOR PAVEMENT
RESURFACING PROJECT AT THE WATER QUALITY
CONTROL PLANT – PHASE 3, CP975241, SPECIFICATION
NO. SV 21-04R
THIS FIRST AMENDMENT TO CONTRACT is made and entered into in the City of Simi Valley on this 25
th day of July 2022, by and between the CITY OF SIMI
VALLEY, a municipal corporation, hereinafter referred to as CITY, and THE ADJUL CORPORATION DBA LEE CONSTRUCTION COMPANY , a California Corporation, hereinafter referred to as CONTRACTOR.
I. Recitals
A. CITY and CONTRACTOR entered into a written contract ("CONTRACT") executed by the parties on April 25, 2022, Pavement Resurfacing at the Water Quality Control Plant – Phase 3, per Specification No. SV 21-04R; which is incorporated herein by reference.
B. In accordance with paragraph 9 of the CONTRACT, the parties desire to amend the CONTRACT and expand the services provided by CONTRACTOR as well as increase the not to exceed amount as set forth below.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
II. Amendment
1. Compensation
. The compensation to be paid by CITY to
CONTRACTOR for the services provided hereby shall be amended as follows: In no event shall the total amount paid for this FIRST CONTRACT AMENDMENT exceed $39,547.90, for a total not to exceed amount of $267,263.90, unless otherwise agreed to by the parties in writing. The CONTRACTOR shall keep a tally of the cost for the work ordered by CITY. The CONTRACTOR shall not accept work orders from the CITY if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the parties in writing.
2. Exihibit “A” is hereby amended as attached hereto and incorporated herein this FIRST CONTRACT AMENDMENT.
3. Mailing Address . The mailing address of each party to this CONTRACT AMENDMENT is as follows:
CITY Ronald K. Fuchiwaki, Director
Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Jamshed Yazdani, Associate Engineer
(805) 583-6833
4 A2266.SR AMENDED.JD
CONTRACTOR The Adjul Corporation DBA
Lee Construction Company
4288 Adam Road
Simi Valley, CA 93063
Staff Contact: Debra Reilly
[email protected]
(805) 522-5195
4. Except as herein amended, all other terms and conditions of the CONTRACT shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Keith L. Mashburn, Mayor of the City of Simi Valley, California
Approved as to Form: The Adjul Corporation DBA
Lee Construction Company
By:
David L. Caceres, City Attorney
Print Name:
Approved as to Content: Title:
Brian Paul Gabler, City Manager
By:
Print Name:
Carolyn Johnson
Administrative Services Director Title:
Ronald K. Fuchiwaki
Public Works Director
5 A2266.SR AMENDED.JD
EXHIBIT “A”
SCOPE OF WORK AS AMENDED
FIRST AMENDMENT TO CONTRACT BETWEEN THE CITY OF
SIMI VALLEY AND THE ADJUL CORPORATION OBA LEE
CONSTRUCTION COMPANY FOR PAVEMENT RESURFACING
PROJECT AT THE WATER QUALITY CONTROL PLANT -
PHASE 3, CP975241, SPECIFICATION NO. SV 21-04R
The scope of work comprises removal of 17,960 SF of existing asphalt concrete pavement and subgrade, subgrade preparation, and placement of 682 tons of asphalt concrete. The work further includes, removal and replacement of existing concrete curb, curb and gutter, sidewalk, gutter, and driveway, storm drain replacement, seal coat asphalt concrete, adjustment and replacement of manhole and utility covers, and all appurtenant work.
The additional scope includes: demolition of concrete driveway, slab, curb, gutter and sidewalk, subgrade and base compaction, and concrete sidewalk, pavement, and driveway approach construction.
6 ATTACHMENT B
DocuSign Envelope ID: 79567B13-8E17-42ED-8FA3-C491A149F21F
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND THE
ADJUL CORPORATION OBA LEE CONSTRUCTION COMPANY
FOR PAVEMENT RESURFACING PROJECT AT THE WATER
QUALITY CONTROL PLANT PHASE 3, CP975241,
SPECIFICATION NO. SV 21-04R
THIS CONTRACT is made and entered into in the City of Simi Valley on this 25th day of April 2022, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and THE ADJUL CORPORATION OBA LEE CONSTRUCTION COMPANY, a California Corporation, hereinafter referred to as CONTRACTOR.
RECITALS
WHEREAS, on February 8, 2022, CITY invited bids for the Pavement Resurfacing Project at the Water Quality Control Plant - Phase 3, CP975241 per Specification No. SV 21-04R; and
WHEREAS, pursuant to said invitation, CONTRACTOR submitted a Proposal which was accepted by CITY for said project.
AGREEMENT
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
1. Recitals. The foregoing recitals are true and correct and are a part of this CONTRACT.
2. Term. 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 sixty (60) consecutive calendar days after the receipt of the Notice to Proceed and final acceptance of all work by the City.
3. Incorporation By Reference. Public Contract Code Section 22300, Specification No. SV 21-04R, consisting of 123 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.
7 2
DocuSign Envelope ID: 79567B13-8E17-42ED-8FA3-C491A149F21F
4. Precedence of CONTRACT Documents. If there is a conflict between or among CONTRACT documents, the document highest in precedence shall control. The precedence shall be:
First:
Second:
This Document consisting of 8 pages excluding paragraph 3 Permits from other agencies as may be required by law
Special Provisions Third:
Fourth: Bid Terms and Conditions
Detailed Plans Fifth:
Sixth: Standard Plans
Seventh: Standard Specifications Modifications
Eighth: "Standard Specifications for Public Works Construction" (SSPWC)
Ninth:
Tenth:
Reference Specifications
CONTRACTOR'S Proposal
Change · orders, supplemental agreements, and approved revisions to plans and specifications become a part of item First.
5. Obligations of the CITY.
A. The CITY shall be obligated to pay CONTRACTOR based
upon the actual City-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. CITY shall make regular progress payments to the
CONTRACTOR within 30 days after mutual concurrence with the unit quantities 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 $227,716 unless otherwise agreed to by the parties in writing.
C. Upon receipt of an invoice for work performed to CITY'S satisfaction, CITY shall make progress payments within thirty (30) days of receipt of invoice. If the work is not performed satisfactorily or the invoice is defective, CITY 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. Obligations of the CONTRACTOR.
A. CONTRACTOR 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 Specification No. SV 21-04R
8 3
DocuSign Envelope ID: 79567B13-8E17-42ED-8FA3-C491A149F21F 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.
C. CONTRACTOR shall abide by the CITY'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. Prevailing 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 CITY 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.
CONTRACTOR 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 CITY may deem necessary, CONTRACTOR shall make available to CITY for inspection its records pertaining to this CONTRACT. CONTRACTOR shall permit CITY 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 two (2) years after termination or final payment under this CONTRACT. This paragraph shall survive for two (2) years after termination of this CONTRACT.
Specification No. SV 21-04R
9 4
DocuSign Envelope ID: 79567813-8E17-42ED-8FA3-C491A149F21F B. CITY shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to CITY as a condition precedent to any payment to CONTRACTOR.
8. Hold Harmless and Indemnification. CONTRACTOR shall
defend, indemnify, and hold harmless CITY, 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 CITY and do whatever is necessary to protect the CITY, its agents, officials, officers, representatives, and employees as to any such claims, lawsuits, liabilities, expenses, or damages arising out of this CONTRACT. The CITY 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 CITY who will defend such proceeding and the CITY will control any litigation thereof. Such approval by the CITY will not be unreasonably withheld. This paragraph shall survive the termination of the CONTRACT.
9. Amendments. 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 Director of Public Works and CONTRACTOR.
10. Anti-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. Termination. If, during the term of this CONTRACT, CITY determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein, CITY 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 CITY may terminate this CONTRACT immediately by written notice to CONTRACTOR to 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 CITY'S Notice of Termination, minus any damages, including liquidated damages if so provided Specification No. SV 21 -04R
10 5
DocuSign Envelope ID: 79567B13-8E17-42ED-8FA3-C491A149F21F herein, occasioned by such breach. CITY reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the CITY'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. Insurance. 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 any force or effect, nor shall any such verbal agreement, understanding, or representation be binding upon the parties hereto.
14. Independent Contractor. It is expressly understood between the parties to this CONTRACT that no employee/employer relationship is intended; CONTRACTOR is an independent contractor.
15. Time of Performance. Time is of the essence in this CONTRACT.
16. 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 CITY 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 CITY resulting from the failure of the CONTRACTOR to complete the project within the allotted time and to the value of the operation of the works dependent thereon.
It 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 CITY 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.
Progress payments made after the scheduled completion date shall not constitute a waiver of liquidated damages.
17. Conflict of Interest. Neither CONTRACTOR nor any employees, agents, or subcontractors of CONTRACTOR who will be assigned to this project, to the Specification No. SV 21-04R
11 6
DocuSign Envelope ID: 79567813-8E 17-42ED-8FA3-C491 A 149F21 F 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, CITY may terminate the CONTRACT immediately for non-performance pursuant to Section 11 herein.
18. 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.
19. Authority to Execute Contract. Both CITY 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. Jurisdiction 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 CITY. In the event CITY 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.
22. 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 party to this CONTRACT is as follows:
Specification No. SV 21-04R
CITY Ronald K. Fuchiwaki, Director
Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Jamshed Yazdani, Associate Engineer
(805) 583-6833
12 7
DocuSign Envelope ID: 79567B13-8E17-42ED-8FA3-C491A149F21F CONTRACTOR The Adjul Corporation OBA
Lee Construction Company
4288 Adam Road
Simi Valley, CA 93063
Staff Contact: Debra Reilly
(805) 522-5195
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
Attest:
Lucy Blanco, City Clerk
Approved as to Form:
David L. Caceres, City Attorney
Approved as to Content:
Brian Paul Gabler, City Manager
Alison M. Phagan
Deputy Administrative Services Director
(Support Services)
Ronald K. Fuchiwaki
Public Works Director
Specification No. SV 21-04R
City of Simi Valley, A Municipal Corporation
By:
Keith L. Mashburn, Mayor of the City
of Simi Valley, California
The Adjul Corporation OBA
Lee Construction Company
By: [o~;,;,:~~~:~~
Debra E. Reilly
Print Name: ------------
Title:
corporate secretary
---------------
By:
F3FB1 DDY/278419 ...
Richard L. smith
Print Name: ------------
President Title: __ ........__ _________ _
13 8
DocuSign Envelope ID: 79567813-8E17-42ED-8FA3-C491A149F21F EXHIBIT "A"
SCOPE OF WORK
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND THE
ADJUL CORPORATION OBA LEE CONSTRUCTION COMPANY
FOR PAVEMENT RESURFACING PROJECT AT THE WATER
QUALITY CONTROL PLANT PHASE 3, CP975241,
SPECIFICATION NO. SV 21-04R
The scope of work comprises removal of 17,960 SF of existing asphalt concrete pavement and subgrade, subgrade preparation, and placement of 682 tons of asphalt concrete. The work further includes, removal and replacement of existing concrete curb, curb and gutter, sidewalk, gutter, and driveway, storm drain replacement, seal coat asphalt concrete, adjustment and replacement of manhole and utility covers, and all appurtenant work.
Specification No. SV 21-04R
14