CITY OF SIMI VALLEY
MEMORANDUM
March 18, 2024
TO: Board of Directors, Ventura County Waterworks District No. 8 FROM: Department of Public Works
SUBJECT:AWARD OF CONTRACT FOR CONSTRUCTION OF THE WATERLINE REPLACEMENT PROJECT; BUCKSKIN AVENUE AND ROAN STREET,
CP76300059, SPECIFICATION NO. SV 24-05 AND AUTHORIZE A
BUDGET TRANSFER REQUEST
STAFF RECOMMENDATION
It is recommended that the Board of Directors:
1. Award the attached contract (page 4) to Gutierrez Pipeline, Inc., in the amount of $471,258.10 to construct the Waterline Replacement Project; Buckskin Avenue and Roan Street, Specification No. SV 24-05;
2. Authorize a budget transfer request of $520,000 from the Waterline Replacement Project budget, CP76300033 to CP76300059.
BACKGROUND AND OVERVIEW
On January 18, 2024, staff initiated bid solicitation to construct the Waterline Replacement Project. The project will replace approximately 970 feet of existing 6- inch asphalt concrete pipe (ACP) waterline with 8-inch polyvinyl chloride (PVC) pipe waterlines. The project is located north of Royal High School (see Location Map, Attachment A, page 3).
The existing waterlines within the project limits were installed in the 1960’s to serve the surrounding residential area. During their nearly 60-year life span, Waterworks District No. 8 (District) staff has made numerous repairs on an increasing basis due to severely corroded and deteriorating conditions of the existing ACP waterline. This project would replace these aging waterlines with new PVC waterlines. The Capital Improvement Program (CIP) lists a full replacement of the existing waterlines to be designed and constructed during Fiscal Years 2026-27 and 2027-28. However, last year these waterlines experienced two major failures, significantly costing the District to execute emergency repairs. The recommendation is to re-prioritize the replacement of the waterlines to the current fiscal year.
FINDINGS AND ALTERNATIVES
A Notice Inviting Bids was published in the Ventura County Star,submitted to various publications, plan rooms, contractors and posted on the City’s website. On February 20, 2024, seven bids were received, tabulated below:
WATER2403.SR.DD
AGENDA ITEM NO.
Consent (9)
WATER2403.SR.DD
CONTRACTOR BID
Gutierrez Pipeline, Inc., Whittier, CA $471,258.10
Sam Hill and Sons, Inc., Ventura, CA $479,821.00
JA Salazar Construction & Supply Corp., La Habra, CA $566,361.00 Hank Co Inc DBA MD Engineering, Thousand Oaks, CA $597,001.00 Toro Enterprises, Inc., Oxnard, CA $611,920.00
Blois Construction, LLC, Oxnard, CA $778,531.00
Travis Agricultural Construction, Inc., Ventura, CA $808,702.00 Engineer’s Estimate $364,677.00
Staff has reviewed the bids received and determined that the low bid submitted by Gutierrez Pipeline, Inc. is responsive. Based on Gutierrez Pipeline’s previous work with the District, staff believes that they possess the necessary qualifications and experience to complete this project and is considered to be a responsible bidder with the proper license and positive references.
The project has a 90 consecutive calendar day schedule, and the work is expected to take place from April to July 2024.
The current project balance is $20,000 and the remaining funding for the project was originally forecasted to be included in the Fiscal Year 2026-27 budget. Due to recent waterline failures staff recommends completing the project in the current Fiscal Year 2023-24, therefore requesting a budget transfer of $520,000 from project budget CP76300033 to CP7630059 for construction.
The following alternatives are available to the Board of Directors:
1. Award the attached contract (page 4) to Gutierrez Pipeline, Inc., in the amount of $471,258.10 to construct the Waterline Replacement Project; Buckskin Avenue and Roan Street, Specification No. SV 24-05;
2. Authorize a budget transfer request of $520,000 from project CP76300033 to CP76300059;
3. Do not award a contract at this time and provide staff with alternative direction.
Staff recommends Alternatives No. 1 & 2.
SUGGESTED BOARD MOTION
I move to award a contract to Gutierrez Pipeline, Inc., in the amount of $471,258.10 to construct the Waterline Replacement Project; Buckskin Avenue and Roan Street, Specification No. SV 24-05, and authorize a budget transfer request of $520,000 from project budget CP76300033 to CP76300059.
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SUMMARY
On January 18, 2024, staff initiated bid solicitation for the Waterline Replacement Project; Buckskin Avenue and Roan Street. Seven bids were received, and Gutierrez Pipeline, Inc. submitted the low bid of $471,258.10. Staff recommends that the Ventura County Waterworks District No. 8 Board of Directors award the contract to Gutierrez Pipeline, Inc. and authorize a budget transfer request to fund construction. ____________________________________
_________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Rob Herr, Assistant Engineer
INDEX Page
Contract............................................................................................ 4 Attachment A – Location Map ........................................................ 3 WATER2403.CON.DD Specification SV 24-05
CONTRACT BETWEEN THE VENTURA COUNTY
WATERWORKS DISTRICT NO. 8 AND GUTIERREZ PIPELINE,
INC. FOR WATERLINE REPLACEMENT PROJECT; BUCKSKIN
AVENUE AND ROAN STREET, CP76300059,
SPECIFICATION NO. SV 24-05
THIS CONTRACT is made and entered into in the City of Simi Valley on this18th day of March 2024, by and between the VENTURA COUNTY WATERWORKS DISTRICT NO. 8 a municipal corporation, hereinafter referred to as DISTRICT, and GUTIERREZ PIPELINE, INC., a California corporation, hereinafter referred to as CONTRACTOR, each a “Party” and collectively, “Parties”.
RECITALS
WHEREAS, on January 18, 2024, DISTRICT invited bids for the Waterline Replacement Project; Buckskin Avenue and Roan Street, CP76300059, Specification No. SV 24-05; and WHEREAS, pursuant to said invitation, CONTRACTOR submitted a Proposal which was accepted by DISTRICT 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 90 consecutive calendar days after receipt of the Notice to Proceed.
3. Incorporation By Reference. Public Contract Code Section 22300, Specification No. SV 24-05, consisting of 129 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. 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 3Second: Permits from other agencies as may be required by lawThird: Special ProvisionsFourth: Bid Terms and ConditionsFifth: Detailed PlansSixth: Standard PlansSeventh: Standard Specifications Modifications 4 WATER2403.CON.DD Specification SV 24-05
Eighth: "Standard Specifications for Public Works Construction" (SSPWC)Ninth: Reference SpecificationsTenth: CONTRACTOR'S Proposal Change orders, supplemental agreements, and approved revisions to plans and specifications become a part of item First.
5. Obligations of the DISTRICT.
A. The 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. DISTRICT 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 $471,258.10 unless otherwise agreed to by the Parties in writing.
C. Upon 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. 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.
C. CONTRACTOR 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.
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D. Prevailing Wages.
i. Pursuant to Labor Code § 1720, and as specified in 8 California Code of Regulations § 16000, CONSULTANT must pay its workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and implement any prevailing wage requirements and CONTRACTOR agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws. ii. In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem wages are available upon request from CITY’s Engineering Division or the website for State of California Prevailing wage determination at http://www.dir.ca.gov/DLSR/PWD. CONTRACTOR must post a copy of the prevailing rate of per diem wages at the job site.
iii. CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and 3098 concerning the employment of apprentices by CONTRACTOR or any subcontractor.
iv. Labor Code § 1777.5 requires CONTRACTOR or
subcontractor employing tradesmen in any apprenticeship occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate must also fix the ratio of apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases will not be less than one to five except:
a. When employment in the area of coverage by the joint apprenticeship committee has exceeded an average of 15 percent in the 90 days before the request for certificate, or
b. When the number of apprentices in training in the area exceeds a ratio of one to five, or
c. When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis state wide or locally, or
d. When CONTRACTOR provides evidence that
CONTRACTOR employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen. e. CONTRACTOR is required to make contributions to
funds established for the administration of apprenticeship programs if CONTRACTOR employs registered apprentices or journeymen in any apprenticeable trade on such contracts and if other contractors on the public works site are making such contributions.
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f. CONTRACTOR and any subcontractor must comply with
Labor Code §§ 1777.5 and 1777.6 in the employment of apprentices. g. Information relative to apprenticeship standards, wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices. v. CONTRACTOR and its subcontractors must keep an
accurate certified payroll records showing the name, occupation, and the actual per diem wages paid to each worker employed in connection with this Agreement. The record will be kept open at all reasonable hours to the inspection of the body awarding the contract and to the Division of Labor Law Enforcement. If requested by CITY, CONTRACTOR must provide copies of the records at its cost.
E. CONTRACTOR and all subcontractors must be registered and remain registered with DIR (Department of Industrial Relations) through the term of the CONTRACTin 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.
F. Federally Funded Projects. For Federally funded
projects the current Federal General Wage Determinations shall apply as predetermined by the Secretary of Labor. If there is a difference in the Federal minimum wage rates and the California Department of Industrial Relations for similar classifications of labor, the CONTRACTOR and its subcontractors shall pay not less than the higher wage rate. The wage rate for any classification not listed by the Federal Department of Labor or the California Department of Industrial Relations, but which may be required to execute the CONTRACT, shall be in accord with specified rates for similar or comparable classifications or for those performing similar or comparable duties, within the agencies determinations.
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. 7 WATER2403.CON.DD Specification SV 24-05
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, 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. 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, 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 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 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. 8 WATER2403.CON.DD Specification SV 24-05
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 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 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 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.
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 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.
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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 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. 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 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.
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:
DISTRICT 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 WATER2403.CON.DD Specification SV 24-05
CONTRACTOR Gutierrez Pipeline, Inc.
16011 Richvale Drive
Whittier, CA 90604
Staff Contact: Anthony Sarmiento
(323) 749-0064
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.
Attest: Ventura County Waterworks District No. 8,
A Municipal Corporation
By:
Lucy Blanco, District Secretary Fred D. Thomas, Chair of the Ventura County Waterworks District No. 8
Approved as to Form: Gutierrez Pipeline, Inc.
By:
Algeria R. Ford, District Counsel
Title:
Approved as to Content:
Print Name:
Brian Paul Gabler, District Manager By:
Title:
Johanna Medrano
Deputy Administrative Services Director/ Print Name:
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
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EXHIBIT “A”
SCOPE OF WORK
CONTRACT BETWEEN THE VENTURA COUNTY WATERWORKS DISTRICT NO. 8 AND GUTIERREZ PIPELINE, INC., FOR WATERLINE REPLACEMENTPROJECT; BUCKSKIN AVENUE AND ROAN STREET,CP76300059, SPECIFICATION NO. SV 24-05 The Waterline Replacement Project (Project) consists of: 1) constructing 970 linear feetof 8-inch polyvinyl chloride waterline; 2), 19 water service line replacement; 3) 6 8” gate valve installation; 4) 2 fire hydrant installation; 5) mobilization, demobilization, and final clean-up; 6) hydrostatic testing and disinfection of domestic water mains and services; 7) additional asphalt repair; 8) traffic control, construction signage, and traffic maintenance; and 9) all appurtenant work. The waterline is located in the public right-of-way and as such, coordination with property owner/residents and a City Encroachment Permit is required. The anticipated completion date for this Project is 90 consecutive calendar days after receipt of the Notice to Proceed.
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