HomeMy WebLinkAboutItem No. 02 Construction of the Check-in anText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 17-339
Agenda Date: 9/12/2017 Status: Consent AgendaVersion: 1
File Type: AgreementIn Control: City Council / Successor Agency
Agenda Number: 2)
Page 1 City of Lake Elsinore Printed on 9/7/2017
REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by:Jason Simpson, Assistant City Manager
Date:September 12,2017
Subject:Construction of the Check-in and Kiosk Buildings at the RV Resort
Rehabilitation Project (CIP PROJECT #Z40007)
Recommendations
1. Authorize the City Manager to execute the Agreement in an amount not to exceed $888,000.00
with DMC Enterprises in such final form as approved by the City Attorney; and,
2. Authorize the City Manager to execute change orders not to exceed a 10% contingency amount
of $88,800.00 for construction uncertainties and adjustments.
Background
Construction bid documents were prepared and the project was advertised for bid in accordance
with the requirements set forth in the California Public Contract Code. On June 8,2017, the City
posted on PlanetBids the notice inviting bids for the construction of the check-in and kiosk
buildings at the RV Resort Rehabilitation Project (CIP PROJECT #Z40007).A job-walk at the
project site was held at 10:00 a.m. on Tuesday June 27, 2017,and five potential bidders attended.
Two bids were received on or before the deadline of 2:00 p.m. on Wednesday July 5, 2017. These
bids were publicly opened, examined and declared in City Hall. Following the examination of the
low bidder, it was determine the bid amount was excessive for the construction of these facilities.
The City subsequently rejected the bids and below are the rejected bid results:
Name of Company Bid Amount
Tobo Construction $1,339,450.00
Dalke & Sons $1,343,898.00
Construction of the Check-in and Kiosk Buildings at the RV Resort Rehabilitation Project.
September 12, 2017
Page 2
On September 9, 2017, the City re-posted on PlanetBids the notice inviting bids for the
construction of the check-in and kiosk buildings at the RV Resort Rehabilitation Project (CIP
PROJECT #Z40007). The deadline for the bid submittal was September 24, 2017, at 2:00 p.m.
During this open bid period additional effort was made to advertise the notice inviting bids in order
to receive more biding competition.
Discussion
The purpose of this notice inviting bids is to seek competitive pricing for the construction of the
check-in and kiosk buildings at the RV Resort Rehabilitation Project (CIP PROJECT #Z40007).
The overall essentials in this scope of work are summarized below as general requirements:
General Requirements:
General Condition Site Work
Concrete Masonry
Metals Wood
Thermal and Moisture Protection Doors and Windows
Finishes Specialties
Mechanical Electrical
Plumbing Roofing
The results produced six bid submittals with much better bid amounts. In fact the low bid amount
of $888,000 is $451,450 less than the bid results from the initial notice inviting bids. Below are
the biding companies and amounts for the six bidders:
Name of Company Bid Amount
DMC Enterprise $888,000.00
Unique Builders of California $933,000.00
Archico Design Build $1,243,644.00
Dalke & Sons $1,308,480.00
Tobo Construction $1,311,000.00
Sudweeks Construction $1,311,443.00
Following the approval of this agenda itemthe check-in and kiosk buildings construction will begin.
Staff has reviewed and verified the contractor has a valid license and has provided sufficient
references.
Fiscal Impact
The check-in and kiosk buildings at the RV Resort Rehabilitation Project is included in the Fiscal
Year 16/17 – 20/21 Capital Improvement Plan (CIP) budget.
Construction of the Check-in and Kiosk Buildings at the RV Resort Rehabilitation Project.
September 12, 2017
Page 3
Exhibits
A- Agreement
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AGREEMENT FOR PUBLIC WORKS CONSTRUCTION
(DMC Enterprise)
For the RV RESORT REHABILITATION PROJECT
CIP PROJECT NO. Z40007
CONSTRUCTION OF THE CHECK-IN AND KIOSK BUILDINGS
This Agreement for Public Works Construction (“Agreement”) is made and entered into as
of September 12, 2017, by and between the City of Lake Elsinore, a municipal corporation (‘‘City”)
and DMC Enterprises, a (“Contractor”).
The City and Contractor, in consideration of the mutual promises and covenants set forth
herein, agree as follows:
1.The Project and Project Documents. Contractor agrees to construct the
following public improvements (“work”) identified as:
RV RESORT REHABILITATION PROJECT CIP PROJECT NO. Z40007
The City-approved plans for the construction of the Project, which are incorporated herein
by reference and prepared by RV RESORT REHABILITATION PROJECT CHECK-IN AND
KIOSK BUILDINGS CIP PROJECT NO. Z40007, are identified as:
The Project Documents include this Agreement and all of the following: (1) the Notice
Inviting Bids, Instructions to Bidders, Bid Documents including Bidder’s Proposal as submitted by
the Contractor, Contract Documents, General Specifications, Special Provisions, and all
attachments and appendices; (2) everything referenced in such documents, such as
specifications, details, standard plans or drawings and appendices, including all applicable State
and Federal requirements; (3) all required bonds, insurance certificates, permits, notices, and
affidavits; and (4) any and all addenda or supplemental agreements clarifying, amending or
extending the work contemplated as may be required to insure completion in an acceptable
manner. All of the provisions of the above-listed documents are made a part of this Agreement
as though fully set forth herein.
2.Compensation.
a.For and in consideration of the payments and agreements to be made and
performed by City, Contractor agrees to construct the Project, including furnishing all materials
and performing all work required for the Project, and to fulfill all other obligations as set forth in
the Bidder’s Proposal, such contract price being Eight Hundred Eighty-Eight Thousand Dollars
and no Cents ($888,000.00).
b.City hereby promises and agrees to employ, and does hereby employ,
Contractor to provide the materials, do the work, and fulfill the obligations according to the terms
and conditions herein contained and referred to, for the prices set forth, and hereby contracts to
pay the same at the time, in the manner, and upon the conditions set forth in the Project
Documents.
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c.Contractor agrees to receive and accept the prices set forth in the Bidder’s
Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all
obligations hereunder. Such compensation shall cover all expenses, losses, damages, and
consequences arising out of the nature of work during its progress or prior to its acceptance
including those for well and faithfully completing the work and the whole thereof in the manner
and time specified in the Project Documents; and also including those arising from actions of the
elements, unforeseen difficulties or obstructions encountered in the prosecution of the work,
suspension or discontinuance of the work, and all other unknowns or risks of any description
connected with the work.
3.Completion of Work.
a.Contractor shall perform all work within Two Hundred Fifteen (215)
working days from the date of commencement specified in the Notice to Proceed and shall
complete all work within Two Hundred Fifteen (215)working days, and shall provide, furnish and
pay for all the labor, materials, necessary tools, expendable equipment, and all taxes, utility and
transportation services required for construction of the Project.
b.All work shall be performed and completed in a good skillful manner in strict
accordance with the drawings, specifications and all provisions of this Agreement as hereinabove
defined and in accordance with applicable laws, codes, regulations, ordinances and any other
legal requirements governing the Project.
c.Contractor shall not be excused with respect to the failure to so comply by
any act or omission of the City, the Director of Public Works, the City Engineer, a City inspector,
or a representative of any of them, unless such act or omission actually prevents the Contractor
from fully complying with the requirements of the Project Documents, and unless the Contractor
protests at the time of such alleged prevention that the act or omission is preventing the Contractor
from fully complying with the Project Documents. Such protest shall not be effective unless
reduced to writing and filed with the City within three (3) working days of the date of occurrence
of the act or omission preventing the Contractor from fully complying with the Project Documents.
d.City and Contractor recognize that time is of the essence in the
performance of this Agreement and further agree that if the work called for under the Agreement
is not completed within the time hereinabove specified, damages will be sustained by the City and
that, it is and will be impracticable or extremely difficult to ascertain and determine the actual
amount of damages the City will sustain in the event of, and by reason of, such delay. It is,
therefore, agreed that such damages shall be presumed to be in the amount of Five Hundred
dollars ($500) per calendar day, and that the Contractor will pay to the City, or City may retain
from amounts otherwise payable to Contractor, such amount for each calendar day by which the
Contractor fails to complete the work, including corrective items of work, under this Agreement
within the time hereinabove specified and as adjusted by any changes to the work.
4.Changes to Work. City and Contractor agree that the City may make
changes to the work, or suspend the work, and no matter how many changes, such
changes or suspensions are within the contemplation of the Contractor and City and will
not be a basis for a compensable delay claim against the City nor be the basis for a
liquidated damage claims against the Contractor.
The City and the Contractor, stating their agreement to the following, shall by way of a
written instrument (“change order”) sign any change order to the work:
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a. The scope of the change in the work;
b. The amount of the adjustment to the contract price; and
c. The extent of the adjustment to the Schedule of Performance.
The City Manager or Assistant City Manager is authorized to sign any change order
provided that sufficient contingency funds are available in the City’s approved budget for the
Project. All change in the work authorized by the change order shall be performed under the
applicable conditions of the Project Documents. City and Contractor shall negotiate in good faith
and as expeditiously as possible the appropriate adjustments for such changes.
5.Bonds. Contractor shall provide, before commencing work, a Faithful
Performance Bond and a Labor and Material Bond, each for one-hundred percent (100%)
of the contract price in the form that complies with the Project Documents and is
satisfactory to the City Attorney.
6.Non-Assignability. This Agreement nor any rights, title, interest, duties or
obligations under this Agreement may be neither assigned, transferred, conveyed nor
otherwise disposed of by Contractor without the prior written consent of City.
7.Licenses. Contractor represents and warrants to City that it holds the
contractor’s license or licenses set forth in the Project Documents, is registered with the
Department of Industrial Relations pursuant to Labor Code Section 1725.5 as of March 1,
2015, and holds such other licenses, permits, qualifications, insurance and approvals of
whatsoever nature, which are legally required of Contractor. Contractor represents and
warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain
at all times during the term of this Agreement, any licenses, permits, insurance and
approvals which are legally required of Contractor to practice its profession. Contractor
shall maintain a City of Lake Elsinore business license.
8.Indemnity. Contractor shall indemnify, defend, and hold harmless the City
and its officials, officers, employees, agents, and volunteers from and against any and all
losses, liability, claims, suits, actions, damages, and causes of action arising out of any
personal injury, bodily injury, loss of life, or damage to property, or any violation of any
federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by
the willful misconduct or negligent acts or omissions of Contractor or its employees,
subcontractors, or agents, by acts for which they could be held strictly liable, or by the
quality or character of their work. The foregoing obligation of Contractor shall not apply
when (1) the injury, loss of life, damage to property, or violation of law arises from the sole
negligence or willful misconduct of the City or its officers, employees, agents, or volunteers
and (2) the actions of Contractor or its employees, subcontractor, or agents have
contributed in no part to the injury, loss of life, damage to property, or violation of law. It
is understood that the duty of Contractor to indemnify and hold harmless includes the duty
to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of
insurance certificates and endorsements required under this Agreement does not relieve
Contractor from liability under this indemnification and hold harmless clause. This
indemnification and hold harmless clause shall apply to any damages or claims for
damages whether or not such insurance policies shall have been determined to apply. By
execution of this Agreement, Contractor acknowledges and agrees to the provisions of
this Section and that it is a material element of consideration.
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9.Insurance Requirements.
a.Insurance. Contractor, at Contractor’s own cost and expense, shall
procure and maintain, for the duration of the Agreement, unless modified by the City’s Risk
Manager, the following insurance policies.
i.Workers’ Compensation Coverage. Contractor shall maintain
Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her
employees in accordance with the laws of the State of California. In addition, Contractor
shall require each subcontractor to similarly maintain Workers’ Compensation Insurance
and Employer’s Liability Insurance in accordance with the laws of the State of California
for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all
Workers’ Compensation policies must be received by the City at least thirty (30) days prior
to such change. The insurer shall agree to waive all rights of subrogation against City, its
officers, agents, employees and volunteers for losses arising from work performed by
Contractor for City. In the event that Contractor is exempt from Worker’s Compensation
Insurance and Employer’s Liability Insurance for his/her employees in accordance with
the laws of the State of California, Contractor shall submit to the City a Certificate of
Exemption from Workers Compensation Insurance in a form approved by the City
Attorney.
ii.General Liability Coverage. Contractor shall maintain commercial
general liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury and property damage. If a commercial general
liability insurance form or other form with a general aggregate limit is used, either the
general aggregate limit shall apply separately to the work to be performed under this
Agreement or the general aggregate limit shall be at least twice the required occurrence
limit. Required commercial general liability coverage shall be at least as broad as
Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed.
11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering
comprehensive General Liability and Insurance Services Office form number GL 0404
covering Broad Form Comprehensive General Liability. No endorsement may be attached
limiting the coverage.
iii.Automobile Liability Coverage. Contractor shall maintain
automobile liability insurance covering bodily injury and property damage for all activities
of the Contractor arising out of or in connection with the work to be performed under this
Agreement, including coverage for owned, hired and non-owned vehicles, in an amount
of not less than one million dollars ($1,000,000) combined single limit for each occurrence.
Automobile liability coverage must be at least as broad as Insurance Services Office
Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No endorsement may
be attached limiting the coverage.
iv.Professional Liability Coverage [if applicable]. Contractor shall
maintain professional errors and omissions liability insurance appropriate for Contractor’s
profession for protection against claims alleging negligent acts, errors or omissions, which
may arise from Contractor’s services under this Agreement, whether such services are
provided by the Contractor or by its employees, subcontractors, or sub consultants. The
amount of this insurance shall not be less than one million dollars ($1,000,000) on a
claims-made annual aggregate basis, or a combined single limit per occurrence basis.
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b.Endorsements. Each general liability and automobile liability insurance
policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be
endorsed with the following specific language:
i.The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insured with respect to liability
arising out of work performed by or on behalf of the Contractor, including materials, parts
or equipment furnished in connection with such work or operations.
ii.This policy shall be considered primary insurance as respects the
City, its elected or appointed officers, officials, employees, agents and volunteers.
Any insurance maintained by the City, including any self-insured retention the City may
have shall be considered excess insurance only and shall not contribute with it.
iii.This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with respect to the limits of
liability of the insuring company.
iv.The insurer waives all rights of subrogation against the City, its
elected or appointed officers, officials, employees or agents.
v.Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to the City, its elected or appointed officers, officials,
employees, agents or volunteers.
vi.The insurance provided by this Policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits except after thirty (30) days written
notice has been received by the City.
c.Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the City’s option, Contractor shall
demonstrate financial capability for payment of such deductibles or self-insured retentions.
d.Certificates of Insurance. Contractor shall provide certificates of insurance
with original endorsements to City as evidence of the insurance coverage required herein.
Certificates of such insurance shall be filed with the City on or before commencement of
performance of this Agreement. Current certification of insurance shall be kept on file with the
City at all times during the term of this Agreement.
10.Notices. Any notice required to be given under this Agreement shall be in
writing and either served personally or sent prepaid, first class mail. Any such notice shall
be addressed to the other party at the address set forth below. Notice shall be deemed
communicated within 48 hours from the time of mailing if mailed as provided in this section.
11.If to City: City of Lake Elsinore With a copy to: City of Lake Elsinore
Attn: City Manager Attn: City Clerk
130 South Main Street 130 South Main Street
Lake Elsinore, CA 92530 Lake Elsinore, CA 92530
To Contractor: DMC Enterprise
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Attn: Dejan Milosavljevic
1560 Fireside Ln
Vista CA 92084
12.Entire Agreement. This Agreement constitutes the complete and exclusive
statement of agreement between the City and Contractor. All prior written and oral
communications, including correspondence, drafts, memoranda, and representations, are
superseded in total by this Agreement.
13.Amendments. This Agreement may be modified or amended only by a
written document executed by both Contractor and City and approved as to form by the
City Attorney.
14.Assignment and Subcontracting. Contractor shall be fully responsible to
City for all acts or omissions of any subcontractors. Assignments of any or all rights, duties
or obligations of the Contractor under this Agreement will be permitted only with the
express consent of the City. Nothing in this Agreement shall create any contractual
relationship between City and any subcontractor nor shall it create any obligation on the
part of the City to pay or to see to the payment of any monies due to any such
subcontractor other than as otherwise is required by law.
15.Waiver. Waiver of a breach or default under this Agreement shall not
constitute a continuing waiver of a subsequent breach of the same or any other provision
under this Agreement.
16.Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
17.Controlling Law Venue. This Agreement and all matters relating to it shall
be governed by the laws of the State of California and any action brought relating to this
Agreement shall be held exclusively in a state court in the County of Riverside.
18.Litigation Expenses and Attorneys’ Fees. If either party to this Agreement
commences any legal action against the other party arising out of this Agreement, the
prevailing party shall be entitled to recover its reasonable litigation expenses, including
court costs, expert witness fees, discovery expenses, and attorneys’ fees.
19.Mediation. The parties agree to make a good faith attempt to resolve any
disputes arising out of this Agreement through mediation prior to commencing litigation.
The parties shall mutually agree upon the mediator and share the costs of mediation
equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted
to JAMS or its successor in interest. JAMS shall provide the parties with the names of five
qualified mediators. Each party shall have the option to strike two of the five mediators
selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the
dispute remains unresolved after mediation, either party may commence litigation.
20.Authority to Enter Agreement and Administration. Contractor has all
requisite power and authority to conduct its business and to execute, deliver, and perform
the Agreement. Each party warrants that the individuals who have signed this Agreement
have the legal power, right, and authority to make this Agreement and to bind each
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respective party. The City Manager is authorized to enter into an amendment or otherwise
take action on behalf of the City to make the following modifications to the Agreement: (a)
a name change; (b) grant extensions of time; (c) non-monetary changes in the scope of
services; and/or (d) suspend or terminate the Agreement. The Director of Public Works
shall act as the Project administrator on behalf of the City.
21.Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that
it has not paid nor has it agreed to pay any company or person, other than a bona fide
employee working solely for Contractor, any fee, commission, percentage, brokerage fee,
gift or other consideration contingent upon or resulting from the award or making of this
Agreement. For breach or violation of this warranty, City shall have the right to rescind
this Agreement without liability. For the term of this Agreement, no member, officer or
employee of City, during the term of his or her service with City, shall have any direct
interest in this Agreement, or obtain any present or anticipated material benefit arising
therefrom.
22.Equal Opportunity Employment. Contractor represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all
activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination.
23.Prevailing Wages.
a.Contractor and all subcontractors shall adhere to the
general prevailing rate of per diem wages as determined and as published by the
State Director of the Department of Industrial Relations pursuant to Labor Code
Sections 1770, 1773, and 1773.2. Copies of these rates and the latest revisions
thereto are on file in the office of the City Clerk of the City of Lake Elsinore and are
available for review upon request.
b.Contractor’s attention is directed to the provisions of Labor
Code Sections 1774, 1775, 1776, 1777.5 and 1777.6. Contractor shall comply with
the provisions of these Sections. The statutory provisions for penalties for failure
to comply with the State’s wage and the hours laws will be enforced.
c.Labor Code Sections 1774 and 1775 require the Contractor
and all subcontractors to pay not less than the prevailing wage rates to all workmen
employed in the execution of the contract and specify forfeitures and penalties for
failure to do so. The minimum wages to be paid are those determined by the State
Director of the Department of Industrial Relations. Labor Code Section 1776
requires the Contractor and all subcontractors to keep accurate payroll records,
specifies the contents thereof, their inspection and duplication procedures and
certain notices required of the Contractor pertaining to their location. The statutory
penalties for failure to pay prevailing wages will be enforced. If the Project has
been awarded to Contractor on or after April 1, 2015, Contractor and its
subcontractors must furnish electronic certified payroll records to the Labor
Commissioner. Beginning January 1, 2016, Contractor and its subcontractors
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must furnish electronic certified payroll records to the Labor Commissioner without
regard to when the Project was awarded to Contractor.
d.Labor Code Section 1777.5 requires Contractor or
subcontractor employing tradesmen in any apprenticeable occupation to apply to
the Joint Apprenticeship Committee nearest the site of the public works project,
which administers the apprenticeship program in that trade for a certificate of
approval. The certificate will also fix the ratio of apprentices to journeymen to be
used in the performance of the Agreement. The Contractor is required to
contribute to funds established for the administration of apprenticeship programs
if the Contractor employs registered apprentices or journeymen in any
apprenticeable trade and if other contractors on the public works site are making
such contributions. Information relative to apprenticeship standards, contributions,
wage schedules and other requirements may be obtained from the State Director
of Industrial Relations or from the Division of Apprenticeship Standards. Labor
Code Section 1777.6 provides that it shall be unlawful to refuse to accept otherwise
qualified employees as registered apprentices solely on the grounds of race,
religious creed, color, national origin, ancestry, sex, or age.
e.Eight hours labor constitutes a legal day’s work, as set forth
in Labor Code Section 1810.
24.Execution. This Agreement may be executed in several counterparts, each
of which shall constitute one and the same instrument and shall become binding upon the
parties when at least one copy hereof shall have been signed by both parties hereto. In
approving this Agreement, it shall not be necessary to produce or account for more than
one such counterpart.
[Signatures on next page]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
Grant Yates, City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
“CONTRACTOR”
[DMC Enterprise],
By:Dejan Milosavljevic
Its:Owner