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HomeMy WebLinkAboutAgenda Report - January 17, 1990 (54)COUNCIL COMMUNICATION TO: THE CITY COUNCIL COUNCIL MEETING DATE: JANUARY 17, 1990 FROM: THE CITY MANAGER'S OFFICE SUBJECT: CONTRACT AWARD FOR CONSTRUCTION OF INDUSTRIAL SUBSTATION PROJECT 5200 EAST SARGENT ROAD RECOMMENDED ACTION: That the Council award the bid for construction of the Industrial Substation to Kinetic Engineering b Construction. Inc. , Loomis, Califomfa, in joint venture with Chapek Construction, Sacramento, California as low bidder in the amount of $1,790,514. BACKGROUND INFORMATION: Bids on this project were opened November 21, 1989. At that time, the City received three bids ranging from approximately $1,790,500 to 61,867,900 as shown on the attached sheet (Exhibit A). The engineers' estimate was $1,950,000. Due to the unanticipated difficulty in procuring the Industrial Substation site, the City of Lodi does not anticipate that construction can commence prior to early June 1990. kinetic/Chapek have executed an agreement to hold their bid price to accommodate a delayed start date. A copy of their signed agreements are attached hereto as Exhibit 8. Henry J. Rick Electric Utility Director Attach. (2) cc: Assist. Electric Utility Director Power Engineers CC/SUBC0/TXTU.01D RESOLUTION NO. 90-10 RESOLUTION AWARDW THE CONTRACT FOR CONSTRUCTION OF THE INDUSTRIAL SUBSTATION PROJECT, 5200 EAST SARC;EN17 ROAD, LODI VdIRM in answer to notice duly published in accordance with law and the order of this City Council, sealed bids were received and publicly opened on November 21, 1989 at 11:00 a.m. for the contract for construction of the Industrial Substation, 5200 East Sargent Road, described in the specification therefor approved by the City Council on May 17, 1989; and WHEREAS, said bids have been compared, checked and tabulated as shown an Exhibit A attached hereto; and WHEREAS, the bid of Kinetic Engineering and Construction, Inc., Loomis, California, thereafter "Kinetic/Chapek", was determined to be responsive and represents the lowest bid rendered; and WHEREAS, due to the unanticipated difficulty in procuring the Industrial Substation site, commencement of construction is not anticipated until early June 1990; and WHEREAS, Kinetic/Chapek have executed an agreement to hold their bid price to accommodate a delayed start date; and WI1EREA,S the City Manager, Electric Department staff and Power Engineers, Inc., engineering consultant to the City for this project, recommended that award of the contract for construction of the Industrial Substation, 5200 East Sargent Road, be made to Kinetic/Chapek; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi that award of the contract for construction of the Industrial Substation, 5200 East Sargent Road, be and the same is hereby awarded to Kinetic/Chapek in the amount of $1,790,514. Dated: January 17, 1990 I hereby certify that Resolution No. 90-10 was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 17, 1990 by the following vote: -I- Resolution No. 90-10 January 17, 1990 Page Two Ayes: Council Nknibm - Hinchman, Olson, Pinkerton, Reid and Snider (Mayor) Noes: Council Members - None Absent: Council Almixas - Nane t -Jennifer' M. Perrin Deputy City Clerk for Alice M. Reimche City Clerk 90-10 RES9010/TXTA.02J EXHIBIT A "TT T\T(1TTT -n MUSIRIAL SLBSTAIION C VC'IIClI; CONTRACT EUD 89-18 Bidder Bid Price * (1) Kinetic Eng. & Construction, Inc. 3733 Taylor Road Loomis, CA 95650 - in j oint venture with- $1,790,514.00 Chapek Construction 62010 27th Street Sacramento, CA 95822 (2) Anderson & Wood Construction Co. 4209 Everett Street P. 0. Box 1269 Caldwell , ID 83606-1269 $1,816,729.19 (3) AMELCO 1777 Neptune Drive San Leandro, CA 94080 $1,867,868.00 * Includes tax, but not City-furni shtd material in an amount of $1,125,281 which amount is included with bid price to establish the contractor bonding amounts. BIDS/SUB/TXTU.OID CITY COUNCIL JOHN R. (Randy) SNIDER. Mayor DAVID M. HINCHMAN Mayor Pro Tempore EVELYN M. OLSON JAMES W. PNKERTON. Jr. FRED M REID Kinetic/ Chapek P.O. Box838 Loomis, CA 95650 CITY OF LODI CITY HALL, 221 WEST PINE STREET CALL BOX 3006 LODI. CALIFORNIA 95241-1910 (2(19) 334-5634 TE LECOPIER :(249) 333-679S January 8,1990 THOMAS A. PETERSON City Manager ALICE M REIMCHE City Clerk BOB MCNATT City Attorney Attention: Mr. Walter Heckert Subject: Proposed Modificationsto the Industrial Substation Contract Dear Mr. Heckert: Due to the unanticipated difficulty in procuring the Industrial Substation site, the City of Lodi, (COL) does not anticipate that construction can commence prior to early June, 1990. Based on previous contacts, Kinetic/ Cha0ek have indicated that they are willing to hold their bid price to accommodate a @layed start date. The following contract document revisions are proposed to incorporate the revised construction schedule. Please review there proposed changes and, If agreeable, sign the last page of this letter and return itto COL (Attention: lir. Henry Rice, PE). Section I: NOTICE INVMNG BIDS PAGE 1.1 Delete first sentence: 1 7wner-fumished jamtiar7p -4, 1.9-90" with sehedtiled completion by 4ume 1, 1990. material for the project consists of power circuit breakers, station steel structures, disconnect switches, 60kV instrument switchboard, insulators, and surge arresters. The successful contractor -bidder will be required to bond for all equipment and labor (including Owner -furnished equipment) in the erection of the substation. Section 2: INFORMATIONTO BIDDERS PAGE 2.3 2.800 AWARD Of- CONTRACT Revision: The award of contract, if it be awarded, will be to the lowest responsible Bidder whose bid proposal complies with all the requirements described. Where alternate bids are received, the City Council reservesthe rightto select the bid most advantageousto the City. The award, if made, will be made within sixt (60) days afterthe opening of the bids(also see 6eMefal ,SeetiOM Kinetic/ Chapek January 8,1990 PageTwo Revision: The contract shall be signed by the successful Bidder and returned, within ten (10) working days, after the Bi der has received notice that the contract has been awarded. No proposal shall be considered binding upon the City until the execution of the contract. Revision: Failure to 1) execute a contract, and 2) file an acceptable bond as provided herein within ten (10) working days after the bidder has received a Notice to Proceed , shall be just cause for the annulment of the award and the forfeiture of the proposal deposit. 2.1000 CONTRACTOR BONDS The Contractorshall furnish a good and sufficient faithful performance bond in the amount of 100% of the Contract and a material and payment bond, in the amount equal to 100% of the Contract amount and the Owner -furnished material. Revision: The bondswill be required within ten (10) working days of receipt of the Notice to Proceed PRELIMINARYSIDDING AND CONSTRUCTION SCHEDULE PAGE 26 Schedule w-11 be revised when construction start date is determined. Section 3: BID PROPOSAL PAGE 3.21 Add. These prices are valid for a 120 calender day construction period with the site available priorto June 30,1990. PAGE 3.29 Revision: The undersigned agrees that if this Bid Proposal is accepted, at the time of the receipt of the Notice to Pry m,Nrn�eW. #etec'!, good and sufficient bondswilI be furnished in the amount equal to the amount o this bid. Revision: The undersigned further agreesthat in case of default in executing the required contract, together with the necessary bonds within ten (10) working days after receiving the Notice to Proceed , the proceeds of the deposit accompanying the bid shall be,.:: me the property of the City of Lodi, California, and this Bid Proposal and the acceptance thereof may be considered null andvoid. However, if the undersigned shal I execute the contract and furnish the bond required within the time aforesaid, the deposit shall be returned forthwith. Kinetic/ Chapek January 8,1990 Page Three Section 4: CONTRACTAND SONDS PAGE 42 Revision: ARTICLE I - That for and in consideration of the payments and agreements e re i n a e r mentioned, to be made and performed by the Chi and under the condition expressed in the two bonds (performance bond and material and payment bond)bearing annexed; -and, Contractor agrees with the City, at Contractor's cost and expense, to do all the work and furnish all the materials exceot such as are mentioned in the specifications to be furnished by the City, necessary to construct and complete in a good workmanlike and substantial manner and to the satisfaction of the City the proposed improvements as shown and described in the Contract Documents which are hereby made pert of the Contract. PAGE 4A Revision: ARTICLE Vill: The Contractor agrees to commence work pursuant to this contract within 15 calender days after the Mayor has executed the Notice to Proceed and to diligently prosecute to completion within one hundred twenty (120) WORKING DAYS. Add newarticle: ARTICLE IX: The City and the Contractor mutually agree that if for any reason the industrial Substation site is not available for construction by June 30, 1990 this Contract is null and void. The City and the Contractor further agree to waive all damage claims against each other if t h e contract becomes n u I I and void. NOTICE OF AWARD You must deliver with the executed Agreement the Contract Security (Bonds) as specified in the Notice and Information amd instructioms to 6 i d d e rs and General Provisions Section 5: GENERAL PROVISIONS PAGE 5.17 Kinetic/ Chapek January 8,1990 Page Four As proposed, the Contract amount (Kinetic/ Chapek and the City of Lodi) will be $1,790,514.00. The required bond amount which includes the owner furnished materials is $2,915,795.00. Any procurementactivities priorto the Noticeto Proceed will be Contractor costs and responsibilities, if the Contract becomes null and void. COL will unload th e owner furnished material untiIa Noticeto Proceed is issued. For any fu rther discussion on these topics please contact me a t (209) 333-6769. Sincerely, Henry �Rice,.E Electric Utility Director HR:eb »sacs Kinetic/Chapek Janua 8,1990 Page Five Kinetic/ Chapek agrees with the proposed contractchanoes presented in this letter. Proceedwith the preparation of the Signature" copies oOthe Contract Documents. NAME: KINETIC ENGINEERING AND CONSTRUCTION, INC. NAME CHAPEK CONSTRUCTION, INC. Executed copy t o follow