SAN2443.SR.MG.v2 SPECIFICATION NO. SV 24-28
CITY OF SIMI VALLEY
MEMORANDUM
S
eptember 23, 2024
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: AUTHORIZATION FOR GSE CONSTRUCTION COMPANY, INC., TO
SUBSTITUTE SUBCONTRACTORS FOR THE 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:
1. C
onsent to GSE Construction Company, Inc. ’s (GSE) request to substitute subcontractors at no cost to the City for the Digester Mixer a nd Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28;
2. A
uthorize the City Manager, pursuant to Public Contract Code § 4107(a), to approve any subsequent GSE subcontractor changes throughout the remainder of the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28; and
3. T
ake such additional, related, action that may be desirable.
BACKGROUND AND OVERVIEW
O
n July 22, 2024, the City Council awarded a contract to GSE for the Digester Mixer and Secondary Clarifier Removal and Installations Project at the City’s Water Quality Control Plant (WQCP) in the amount of $6,327,000. In GSE’s bid, List of Subcontractors and Off -Job Fabricators , it listed All-In-O ne (AIO) Electric as its electrical sub -contractor, and on August 1, 2024 , requested a change to Taft Electric. In accordance with Public Contract Code § 4107, GSE must obtain the City Council’s consent to substitute a subcontractor . In accordance with Public Contract Code (“PCC”) § 4107 the City notified AIO and gave it an opportunity to object to the substitution. A Hold Harmless agreement between the City and GSE indemnifies the City from all claims and liability for allowing the substitution. PCC § 4107(a) allows the City Council to authorize the City Manager to approve any subsequent substitutions.
AGENDA ITEM NO.
Consent (3)
SPECIFICATION NO. SV 24-28
FINDINGS AND ALTERNATIVES
Staff reviewed the subcontractor change and found that All-In-One and Taft Electric agree with the substitution. Based on Taft Electric’s previous work accomplishments, staff believes that Taft Electric possesses the necessary qualifications and experience for the construction of the project as a subcontractor.
The substitution of subcontractor will not change the project cost and no additional funding is required.
The following alternatives are available to the City Council:
1. Consent to GSE’s request to substitute subcontractor All-In-One Electric for Taft Electric at no cost for the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28;
2. Authorize the City Manager , pursuant to Public Contract Code § 4107(a) , to approve any subsequent GSE subcontractor changes throughout the remainder of the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24-28;
3. Do not authorize the subcontractor change at this time and provide direction to staff.
Staff recommends Alternative No. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to authorize GSE to substitute subcontractor All-In-One Electric for Taft Electric at no cost to the City for the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24- 28; and, to authorize the City Manager to approve subsequent GSE subcontractor changes pursuant to Public Contract Code § 4107(a).
SUMMARY
On July 22, 2024, the Council awarded a contract to GSE for the Digester Mixer and Secondary Clarifier Removal and Installations Project at the City’s WQCP in the amount of $6,327,000. On August 1, 2024, GSE requested to change subcontractor All -In-One Electric to Taft Electric at no cost to the City, with both subcontractors in agreement for the change.
It is recommended that the City Council authorize the subcontractor change from All -In- One Electric to Taft Electric for the Digester Mixer and Secondary Clarifier Removal and Installations Project, CP70200055 & CP70200056, Specification No. SV 24- 28; and, to authorize the City Manager to approve subsequent GSE subcontractor changes.
2 SPECIFICATION NO. SV 24-28
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: John Hamilton, Principal Engineer
INDEX Page
Attachment A - Notification Letter ......................................... 4 Attachment B - Hold Harmless Agreement .......................... 6
3 Home of The Ronald Reagan Presidential Library
August 20, 2024
All In One Electric (AIO)
Attention: Dallas Bacon
24740 Meadview Avenue
Newhall, CA 91321
SUBJECT: CITY OF SIMI VALLEY WATER QUALITY CONTROL PLANT -
DIGESTER MIXER AND SECONDARY CLARIFIER REMOVAL AND
INSTALLATION, CP70200055 & CP70200056 SPECIFICATION NO. SV 24-28 SUBSTITUTION OF SUBCONTRACTOR
Dear Mr. Bacon:
This letter is to notify AIO, that GSE Construction has requested to substitute AIO for electrical and instrumentation work on the CITY OF SIMI VALLEY WATER QUALITY
CONTROL PLANT - DIGESTER MIXER AND SECONDARY CLARIFIER REMOVAL AND INSTALLATION, CP70200055 & CP70200056 SPECIFICATION NO. SV 24-28 project.
Pursuant to Public Contracts Code 4107:
1. This notification letter is sent to AIO by certified registered mail.
2. The scope of work is electrical and instrumentation work for the CITY OF SIMI
VALLEY WATER QUALITY CONTROL PLANT - DIGESTER MIXER AND SECONDARY CLARIFIER REMOVAL AND INSTALLATION, CP70200055 & .
CP70200056 SPECIFICATION NO. SV 24-28 Project.
3. A copy of the request for permission to substitute AIO is attached to this letter.
4. AIO has five working days from the date of receipt of this notice to submit written objections to the substitution, to the City of Simi Valley (attention John Hamilton 2929 Tapo Canyon Rd, Simi Valley, CA 93063, . [email protected]).
Failure to file written objections within the five working days is deemed to constitute AIO's consent to the substitution.
If you have any questions, please contact me at (805) 583-6809. �
on '7�-------
Principal Engineer/Sanitation
cc: Director of Public Works/R. Fuchiwaki
Deputy Public Works Director/A. Sexton
Sr. Mgt Analyst/Matt McKenna
Arcelio Aguilar/PM GSE
Fred D. Thomas, Mayor Rocky Rhodes, Mayor Pro Tern Mike Judge, Council Member Dee Dee Cavanaugh, Council Member Elaine P. Litster, Counci_l Member SAN2440.L TR.DD 2929 Tapo Con yon Road, Simi Valley, CA 93063-2199 805.583.6700 www.simivalley.org
ATTACHMENT A
4 John Hamilton
Principal Engineer
2929 Tapo Canyon Road
Simi Valley, CA 93063
C O N S T R U C T I D N
Re: Water Quality Control Plant _; Digester and Clarifier Project.
Request for Substitution of Subcontractors
Dear John Hamilton:
Pursuant to Public Contract Code Section 4107(a), we are writing to request your approval of a substitution of one of our subcontractors. We had originally listed All-In-One, Inc. ("AIO") for the Electrical & Instrumentation scope of work on the project. G.S.E. seeks to maintain the continuity of work with the current on-site Electrical Subcontractor to leverage their existing project knowledge.
AIO agrees with and consents to the substitution. However, in accordance with Public Contract Code Section 4107(a), we would appreciate your giving AIO notice by certified mail of this substitution request. AIO's address is: 24740 Meadview Ave.Newhall, CA 91321 We intend to replace AIO with Taft Electric, a qualified and licensed electrical contractor who is very familiar with the facility where the work will be performed.
Thank you for your attention to this matter, and please feel free to contact me if the County needs any additional information.
Very truly yours,
Arcelio Aguilar I Project Manager
GSE Construction Company Inc.
26027 Huntington Lane Unit D, Valencia, CA 91354
tel (661) 295-4960 " cell (925) 525-2312 " fax (661) 295-5031 5 SAN2442.HOLDHARMLESSAGREEMENTCORRECT.DD- 1 - Specification SV 24-28
HOLD HARMLESS AGREEMENT BETWEEN
THE CITY OF SIMI VALLEY
AND
GSE CONSTRUCTION COMPANY INC
T
HIS AGREEMENT, is entered into this 10th day of September, 2024, by and between the CITY OF SIMI VALLEY , a general law city and municipal corporation (“CITY”) and GSE CONSTRUCTION COMPANY INC (“CONTRACTOR”). The Parties agree as follows:
1. CO
NSIDERATION. In accordance with Public Contract Code § 4107, CITY allows CONTRACTOR to replace ALL IN ONE ELECTRIC with TAFT ELECTRIC COMPANY as a subcontractor to perform elect ric and instrumentation work in Agreement No. 3250013 (dated 7/22/2024).
2. I
NDEMNIFICATION.
a. C
ONTRACTOR indemnifies, will defend (at CITY’s request and with counsel satisfactory to CITY), and holds CITY harmless from and against any claim, action, damages, costs (including without limitation, attorney’s fees), injuries, or liability, arising out of CITY’s acts, errors or omissions, negligence, or wrongful conduct in connection with CITY’s actions in Section 1.
b. F
or purposes of this section “CITY” includes CITY’s officers, officials, employees, agents, representatives, and certified volunteers.
c. F
or purposes of this section “ CONTRACTOR” includes CONTRACTOR ’s officers, officials, employees, agents, representatives, and volunteers. d. C
ONTRACTOR expressly agrees that this release, waiver, and indemnity agreement is intended to be as broad and inclusive as is permitted by the law of the State of California and that if any portion is held invalid, it is agreed that the balance shall, notwithstanding, continue in full legal force and effect.
3. I
NTERPRETATION; VENUE
T
his Agreement and its performance will be governed, interpreted, construed and regulated by the laws of the State of California. Exclusive venue for any action involving this Agreement will be in Ventura County.
I
N WITNESS WHEREOF the Parties hereto have executed this contract the day and year first hereinabove written.
Docusign Envelope ID: 63A76D21-CD9E-4502-826E-42E425450889 6 ATTACHMENT B
SAN2442.HOLDHARMLESSAGREEMENTCORRECT.DD- 2 - Specification SV 24-28
CITY OF SIMI VALLEY DEPARTMENT OF PUBLIC WORKS CONTRACTOR: GSE CONSTRUCTION COMPANY INC
___________________________________ ________________________________ John Hamilton Date Richard Harte Date Project Manager, Principal Engineer Vice President
___________________________________
Ronald K. Fuchiwaki Date
Director of Public Works
___________________________________
Samantha C. Argabrite Date
City Manager
Docusign Envelope ID: 63A76D21-CD9E-4502-826E-42E425450889 September 10, 2024
September 10, 2024
September 11, 2024
September 13, 2024
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