A2476.SR.MG SPECIFICATION NO. SV 24-24
CITY OF SIMI VALLEY
MEMORANDUM
J
uly 22, 2024
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: AWARD OF CONTRACT TO GSE CONSTRUCTION COMPANY, INC.,
FOR DIGESTER MIXER AND SECONDARY CLARIFIER REMOVAL AND
INSTALLATIONS PROJECT, CP70200055 & CP70200056,
SPECIFICATION NO. SV 24-28
STAFF RECOMMENDATION
I
t is recommended that the City Council a ward the attached contract (page 4 ) to GSE Construction Company, Inc. (GSE) in the amount of $6,327,000 for the Digester Mixer a nd Secondary Clarifier Remov al and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28.
BACKGROUND AND OVERVIEW
D
uring the November 6, 2023, City Council meeting, the Council authorized staff to renegotiate the E nergy Savings Company (ESCO) contract at the W ater Quality Control Plant (WQCP) with Schneider Electric and execute a Change Order to remove the Digester Mixer and Secondary Clarifier Removal and decrease the contract amount to meet the project completion deadline. However, refurbishment and modernization of the Digester Mixer and Secondary Clarifier Removal were still necessary to complete the original scope of work as this equipment is over 40 years old.
O
n May 23, 2024, the Public Works Departmen t solicited construction bids for the improvement project at the WQCP Digester and Secondary Clarifier facilities. The project includes the demolition of the existing digester lance mixing systems and installation of new low -energy mechanical digester mixers, d emolition and installation of new secondary clarifiers, i nternal digester t ank refurbishment and coating, new digester valves and piping, and new corrosion-resistant pipeline to replace the existing failing pipeline. This will complete and improve work started under the Energy Savings Company (ESCO) contract with Schneider Electric at the (WQCP).
FINDINGS AND ALTERNATIVES
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 emailed to the contractors on the City’s contractors l ist, including local contractors, and was posted on the City’s website.
AGENDA ITEM NO.
Consent (7)
A2476.SR.MG SPECIFICATION NO. SV 24-24
On July 9, 2024, the bid opening date, two bids were received, and the results are shown in the table below:
CONTRACTOR LOCATION BID
GSE Construction Company Inc. Livermore, CA $6,327,000
West Valley Investment Group, Inc. Tarzana, CA $7,983,000
Staff reviewed the bids received and determined that the lowest bid submitted by GSE is responsive and cost-competitive. Based on GSE’s previous work accomplishments, staff believes that GSE possesses the necessary qualifications and experience for the construction of the project and is considered to be a responsible bidder.
Sufficient funding is available in the FY 2024-2025 Sanitation project budget CP70200055 and CP70200056. Based on an award date of July 22, 2024, it is anticipated that the project construction will begin in August 2024, and completion of the project is anticipated by the end of February 2026.
The following alternatives are available to the City Council:
1. Award the attached contract to GSE in the amount of $6,327,000 for the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28;
2. Do not award the contract at this time and provide direction to staff.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to award a contract to GSE , in the amount of $6,327,000 for the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28.
SUMMARY
On May 23, 2024, the Public Works Department solicited bids for the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28. On July 9, 2024, GSE submitted the lowest responsive and responsible bid. Therefore, it is recommended that the City Council award a contract to GSE in the amount of $6,327,000 for construction of the project.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
2 A2476.SR.MG SPECIFICATION NO. SV 24-24
Prepared by: John Hamilton, Principal Engineer
INDEX Page
Contract ................................................................................ 4
3 Contract No. 3250013
1 PUBLIC WORKS CONTRACT
BETWEEN
THE CITY OF SIMI VALLEY AND
GSE CONSTRUCTION COMPANY, INC.
This CONTRACT is entered into this 22nd day of July, 2024, by and between the CITY OF SIMI VALLEY, a general law city and municipal corporation (“the City”) and GSE CONSTRUCTION COMPANY, INC., a California corporation (“the Contractor”).
1. WORK.
A. The Contractor will provide all work required by the Contract Documents (the “Work”). The C ontractor agrees to do additional work arising from changes ordered by the City in accordance with the Contract Documents.
B. The Contractor and the City agree to abide by the terms and conditions contained in the Contract Documents;
C. The Contractor will furnish all of the labor; supplies and materials; equipment; printing; vehicles; transportation; office space and facilities; all tests, testing and analyses; and all matters whatsoever (except as otherwise expressly specified to be furnished by the City) needed to perform and complete the Work and provide the services required of the Contractor by the Contract Documents.
D. “Contract Documents” means the Notice Inviting Bids; Instructions to Bidders; Supplementary Instructions to Bidders; Proposal; this Contract; Standard Specifications; Supplementary Conditions; Exhibits; Technical Specifications; List of Drawings; Drawings; Addenda; Notice to Proceed; Change Orders; Notice of Completion; and all other documents identified in the Contract Documents which together form the contract between the City and the Contractor for the Work. The Contract Documents constitute the complete agreement between the City and the Contractor and supersede any previous agreements or understandings.
2. CONTRACT SUM. The City agrees to pay the Contractor a sum not to exceed Six Million Three Hundred Twenty-Seven Thousand ($6,327,000) for the Work in the manner set forth in the Contract Documents. The City may adjust this amount as set forth in the Contract Documents.
3. TIME FOR PERFORMANCE.
A. The Contractor will fully complete the Work within 548 calendar days (the “Contract Time.”)
4 City of Simi Valley
Contract No. 3250013
GSE Construction Company, Inc.
A2476.CON.MG SPECIFICAITON NO. SV 24-28
B. The Contract Time will commence when the City issues a notice to proceed.
The Contract Documents will supersede any conflicting provisions included on the notice to proceed issued pursuant to this Contract.
C. The Contractor may not perform any Work until:
i. The Contractor furnishes proof of insurance as required by the Contract Documents; and
ii. The City gives the Contractor a written, signed, and numbered purchase order and notice to proceed.
D. By signing this Contract, the Contractor represents to the City that the Contract Time is reasonable for completion of the Work and that the Contractor will complete the Work within the Contract Time.
E. S hould the Contractor begin the Work before receiving written authorization to proceed, any such Work is at the Contractor’s own cost and risk.
4. DISPUTES. Disputes arising from this contract will be determined in accordance with the Contract Documents and Public Contracts Code §§ 10240-10240.13.
5. THIRD PARTY CLAIMS. In accordance with Public Contracts Code § 9201, the City will promptly inform the Contractor regarding third- party claims against the Contractor, but in no event later than ten (10) business days after the City receives such claims. Such notification will be in writing and forwarded in accordance with the “Notice” section of the Contract Documents. As more specifically detailed in the Contract Documents, the Contractor agrees to indemnify and defend the City against any third-party claim.
6. TAXPAYER IDENTIFICATION NUMBER. The Contractor will provide the City with a Taxpayer Identification Number.
7. PERMITS AND LICENSES . Unless otherwise provided, the Contractor, at its sole expense, will obtain and maintain during the Contract Time, all necessary permits, licenses, and certificates that may be required in connection with the Work.
8. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by the Contractor under the Contract Documents are the City’s property. The Contractor may retain copies of said documents and materials as desired, but will deliver all original materials to the City upon the City’s written notice.
5 City of Simi Valley
Contract No. 3250013
GSE Construction Company, Inc.
A2476.CON.MG SPECIFICAITON NO. SV 24-28
9. INDEMNIFICATION. The Contractor agrees to indemnify, defend, and hold the City harmless as set forth in the Contract Documents. The requirements as to the types and limits of insurance coverage to be maintained by the Contractor as required by the Contract Documents, and any approval of such insurance by the City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to the Contract Documents, including, without limitation, to the provisions concerning indemnification.
10. INDEPENDENT CONTRACTOR. The City and the Contractor agree that the Contractor will act as an independent contractor and will have control of all work and the manner in which is it performed. The Contractor will be free to contract for similar service to be performed for other employers while under contract with the City. The Contractor is not an agent or employee of the City and is not entitled to participate in any pension plan, insurance, bonus or similar benefits the City provides for its employees. Any provision in this Contract that may appear to give the City the right to direct the Contractor as to the details of doing the work or to exercise a measure of control over the work means that the Contractor will follow the direction of the City as to end results of the work only.
11. AUDIT OF RECORDS. The Contractor will maintain full and accurate records with respect to all services and matters covered under this Contract. The City will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. The Contractor will retain such financial and program service records for at least three (3) years after termination or final payment under the Contract Documents.
12. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows:
The City
The Contractor
Attention: Department of Public Works Attention: Steve Mazza City of Simi Valley GSE Construction Company, Inc.
2929 Tapo Canyon Road 7633 Southfront Road, Suite 160
Simi Valley, CA 93063 Livermore, CA 94551
John Hamilton (925) 447-0292
(805) 583-6809
[email protected]
[email protected]
Any such written communications by mail will be conclusively deemed to have been received by the addressee three (3) days after deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
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Contract No. 3250013
GSE Construction Company, Inc.
A2476.CON.MG SPECIFICAITON NO. SV 24-28
13. NO THIRD PARTY BENEFICIARY . This Contract and every provision herein is for the exclusive benefit of the Contractor and the City and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of the Contractor’s or the City’s obligations under this Contract.
14. INTERPRETATION. This Contract was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this Contract will be in Ventura County.
15. EFFECT OF CONFLICT. In the event of any conflict , inconsistency, or incongruity between any provision of the Contract Documents, precedence will be as follows:
A. This Contract;
B. The Standard Specifications; and
C. Precedence of documents as determined in the Standard Specifications.
16. SEVERABILITY. If any portion of the Contract Documents are declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Contract will continue in full force and effect.
17. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Contract and to engage in the actions described herein. This Contract may be modified by written amendment. The City’s city manager, or designee, may execute any such amendment on the City’s behalf.
18. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature.
19. COVENANTS AND CONDITIONS. The parties agree that all of the provisions hereof will be construed as both covenants and conditions, the same as if the words importing such covenants and conditions had been used in each separate paragraph.
20. CAPTIONS. The captions of the paragraphs of this Contract are for convenience of reference only and will not affect the interpretation of this Contract.
7 City of Simi Valley
Contract No. 3250013
GSE Construction Company, Inc.
A2476.CON.MG SPECIFICAITON NO. SV 24-28
21. TIME IS OF ESSENCE. Time is of the essence for each and every provision of the Contract Documents.
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: GSE Construction Company, Inc.
By:
Algeria R. Ford, City Attorney
Print Name: Dennis Gutierrez
Approved as to Content: Title: President
By:
Samantha C. Argabrite, City Manager
Print Name: Iris Sosa
Title: Secretary
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki,
Public Works Director
8