TF2310.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
O
ctober 23, 2023
TO: City Council
F
ROM: Department of Public Works
S
UBJECT: AWARD OF CONTRACT FOR THE CONSTRUCTION OF SIGNAL HEAD
REPLACEMENTS AND RETROREFLECTIVE BACKPLATES PROJECT
(HSIP CYCLE 10), CP60000035, SPECIFICATION NO. SV 2 2-36R; AND
APPROVAL OF A SUPPLEMENTAL BUDGET REQUEST
RECOMMENDATION
I
t is recommended that the City Council:
1. Aw
ard the attached contract (page 5) to Econolite Systems, Inc. ( Econolite) in the amount of $ 486,490.62 for the construction of the Signal Head Replacements and Retroreflective Backplates Project (HSIP Cycle 10), CP60000035 , Specification No.
SV 22-36R.
2. A
pprove a supplemental budget request in the amount of $328,800 to the General Fund (Fund 100) to accept additional grant funding and authorize an inter -fund transfer from Fund 100 to the Street and Road Fund (Fund 600) in the same amount for project CP60000035.
3. Aut
horize the City Manager or designee to execute all grant-related documents.
BACKGROUND AND OVERVIEW
S
taff recommends that the City Council award a construction contract to Econolite in the amount of $486,490.62 for the construction of the Signal Head Replacements and Retroreflective Backplates Project (HSIP Cycle 10), CP60000035, Specification No. SV 22-36R.
I
n July 2020, City Staff applied for, and received, a Highway Safety Improvement Program (HSIP) Grant to improve 30 signalized intersections throughout the City. The intersections were identified as having the highest number of crashes of the City’s 121 traffic signals in the five-year period between June 2015 and May 2020. State funding in the amount of $157,700 was approved for this project under the HSIP, with no local match requirement.
On
October 20, 2022, the Public Works Department soli cited construction bids for the project. Following the close of bids on November 15, 2022 , the City did not receive any bids. City Staff reached out to potential bidders for feedback and proceeded to modify the construction plans accordingly to entice more bidders. The project was re -advertised on August 7, 2023, with bids to be opened on September 7, 2023. A Notice Inviting Bids was published in the Ventura County Star and was also submitted to various publications and plan rooms. A Notice was also mailed to the contractors on the City’s contractors ’ list, AGENDA ITEM NO.
Consent (4)
TF2310.SR.JD
including local contractors, and was posted on the City’s website. The City received one bid from Econolite.
FINDINGS AND ALTERNATIVES
On September 7, 2023, the bid opening date, one bid was received and shown in the table below:
Contractor Bid Amount
Econolite Systems, Inc.
Anaheim, CA
$486,490.62
Engineer’s Estimate/Grant Amount $157,700.00
In the time since the City applied for the grant in July 2020, several issues have served to drastically increase project costs:
• Fewer traffic signal contractors in the vicinity
• Fewer equipment manufacturers (Econolite no longer manufactures traffic signal heads)
• Increased material costs for remaining equipment manufacturers • Increased labor rates
Despite the increased construction costs, staff has determined the single bid is responsive and responsible. Econolite has addressed all bid items as required and, as the City’s traffic signal maintenance contractor, and is qualified to perform the work and therefore responsible.
Staff informed Caltrans, the grant funding agency, of the sole bid and increased construction costs. At the City’s request, Caltrans has agreed to accept the sole bid and committed additional grant funds in the amount of $328,800 to complete the project at no cost to the City. The City Council previously accepted the original grant amount of $157,700 during an action taken during the November 7, 2022 City Council meeting.
Accepting the additional funds awarded by Caltrans to complete the project necessitates a supplemental budget request of $328,800 to accept the additional grant funds , for a total grant amount of $486, 500. The supplemental budget would be made in good fait h pending acceptance of the award documentation by Caltrans. Upon award of the contract by Council, staff will submit the winning bid, award information (Exhibit 25-O , page 13), and revised finance letter to Caltrans to reissue grant-funding documentation.
Based on an award date of October 23, 2023, construction is anticipated to begin in late 2023 to early 2024. The schedule is dependent upon the availability of the traffic signal equipment. Thus, two notices to proceed will be issued: the first for purchasing the traffic signal equipment, and the second for the construction upon receipt of all materials.
Following receipt of the second notice to proceed, the construction is to be completed no later than 210 consecutive calendar days.
2 TF2310.SR.JD
The following alternatives are available to the City Council:
1. Award the attached contract to Econolite Systems, Inc. (Econolite) in the amount of $486,490.62 for the construction of the Signal Head Replacements and Retroreflective Backplates Project (HSIP Cycle 10), CP60000035, Specification No. SV 22-36R.
2. Approve a supplemental budget request in the amount of $328,800 to the General Fund (Fund 100) to accept additional grant funding and authorize an inter -fund transfer from Fund 100 to the Street and Road Fund (Fund 600) in the same amount for project CP60000035.
3. Authorize the City Manager or designee to execute all grant-related documents.
4. Do not award the contract at this time and provide direction to staff.
Staff recommends Alternative Nos. 1, 2, and 3.
SUGGESTED CITY COUNCIL MOTION
I move to award a construction contract to Econolite Systems, Inc. in the amount of $486,490.62 for the construction of the Signal Head Replacements and Retroreflective Backplates Project (HSIP Cycle 10), CP60000035, Specification No. SV 22- 36R, and approve a supplemental budget request in the amount of $328,800 to the General Fund (Fund 100) to accept additional grant funding and authorize an inter -fund transfer from Fund 100 to the Street and Road Fund (Fund 600) in the same amount for project CP60000035.
SUMMARY
On October 20, 2022, the Public Works Department solicited construction bids for replacing 8-inch traffic signal heads with 12-inch, and installing yellow retroreflective tape on the signal head backplates at 30 intersections. Following the close of bids on November 15
th, the City did not receive any bids. The project was re-advertised on August 7, 2023, with bids to be opened on September 7, 2023. A Notice Inviting Bids was published in the Ventura County Star and submitted to various publications and plan rooms. A Notice was also mailed to the contractors on the City’s contractors’ list, including local contractors, and was posted on the City’s website. The City received one bid from Econolite Systems, Inc. in the amount of $486,490.62, which Staff has deemed responsive. The funding agency, Caltrans, has extended additional funding to cover the entire project cost.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Justin Link, Principal Engineer
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INDEX Page
Contract ................................................................................ 5 Attachment A – Exhibit 25-O Award of Contract ................ 13 Attachment B – Finance Letter ........................................... 14
4 TF2310.CON.JD
Specification No. SV 22-36R
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
ECONOLITE SYSTEMS, INC., FOR SIGNAL HEAD
REPLACEMENTS AND RETROREFLECTIVE BACKPLATES
PROJECT (HSIP CYCLE 10), CP60000035 MODIFICATIONS,
SPECIFICATION NO. SV 22-36R
THIS CONTRACT is made and entered into in the Ci ty of Simi Valley on this 23rd day of October 2023, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and ECONOLITE SYSTEMS, INC., an S Corporation, hereinafter referred to as CONTRACTOR, each a “Party” and collectively “Parties”.
RECITALS
WHEREAS, on August 7, 2023 , CITY invited bids for the S ignal Head Replacements and Retroreflective Backplates Project (HSIP Cycle 10), CP60000035 per Specification No. SV 22-36R; and
WHEREAS, pursuant to said invitation, CONTRACTOR submitted a Proposal which was accepted by CITY for said project.
AGREEMENT
NOW, THERFORE, in consideration of t heir 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 210 consecutive calendar days after receipt of the “second” Notice to Proceed.
3. Incorporation By Reference. Public Contract Code Section 22300, Specification No. SV 22-36R, consisting of 99 pages and all documents incorporated by reference therein, and the CONTRACTOR'S B id 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. 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: This Document consisting of 8 pages excluding paragraph 3 Second: Permits from other agencies as may be required by law 5 TF2310.CON.JD
Specification No. SV 22-36R
Third: Special Provisions
Fourth: Bid Terms and Conditions
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
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 $486,490.62 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 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 TF2310.CON.JD
Specification No. SV 22-36R
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.
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, 7 TF2310.CON.JD
Specification No. SV 22-36R
pursuant to the performance or non- performance of this CON TRACT. 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, ex penses, 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 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 CITY 'S Notice of Termination, minus any damages, including liquidated damages if so provided 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. 8 TF2310.CON.JD
Specification No. SV 22-36R
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 $ 500 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 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 P arty 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.
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Specification No. SV 22-36R
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:
CITY Ronald K. Fuchiwaki, Public Works Director
Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Justin Link, Principal Engineer
(805) 583-6884
10 TF2310.CON.JD
Specification No. SV 22-36R
CONTRACTOR Econolite Systems, Inc.
1250 N. Tustin Avenue
Staff Contract: Christopher Flores,
Regional Vice President
(714) 630-3700
IN WITNESS WHEREOF, 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 Brian Paul Gabler, City Manager
Approved as to Form: Econolite Systems, Inc.
By:
Algeria R. Ford, City Attorney
Print Name:
Approved as to Content: Title:
By:
Johanna Medrano
Deputy Administrative Services Director/ Print Name:
Budget & Purchasing
Title:
Ronald K. Fuchiwaki
Public Works Director
11 TF2310.CON.JD
Specification No. SV 22-36R
EXHIBIT “A”
SCOPE OF WORK
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
ECONOLITE SYSTEMS, INC., FOR SIGNAL HEAD
REPLACEMENTS AND RETROREFLECTIVE BACKPLATES
PROJECT (HSIP CYCLE 10), CP60000035, SPECIFICATION
NO. SV 22-36R
The Signal Head Replacements and Retroreflective Backplates Project (P roject), in accordance with the Highway Safety Improvement Program, Project Identification H10- 07-033, consists of removing and replacing 78 8” traffic signal heads with 12” traffic signal heads with new framework, and either 1) installing high visibility retroreflective tape, or 2) installing backplates with pre- installed retroreflective tape, both on 448 traffic signal heads. The location of the Project will be at 30 major signalized intersections on Alamo Street, Cochran Street, Easy Street, Los Angeles Avenue, Madera Road, Royal Avenue, and Wood Ranch Parkway. The designs for the Project have been completed in- house.
The expected completion date of this project is 210 consecutive calendar days after receipt of the “second” Notice to Proceed. This “second” Notice to Proceed shall be defined as the Notice to Proceed given following successful acquisition of the parts and equipment necessary to carry out the work.
12 Local Assistance Program Guidelines Exhibit 25-O Award Information
June 2021
Exh
ibit 25-O: Award Information for HSIP Cycle 10 Projects Date: September 26, 2023
To: Steve Novotny
Caltrans, Division of Local Assistance
PPNO:
Project ID: H10-07-033
Project No.: HSIPL-5405(092)
Project Description:
Replace seventy-eight (78) 8”-section sign heads with 12”-section signal heads and install high visibility retroreflective tape on 450 signal heads.
Date Project was Allocated: October 3, 2022
Date Project was Advertised: October 20, 2022, August 7, 2023 Award Date: October 23, 2023
Award Amount: $486,500
Award Amount:
(State funding portion only, if different from above)
Estimated Date of Completion: July, 2024
Name of Contractor: Econolite Systems, Inc.
ATTACHMENT A
13 ATTACHMENT B
14 15