City ofsouth Lake Tahoe 5

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1 City ofsouth Lake Tahoe 5 "making a positive difference now" Staff Report City Council Meeting of June 21, 2016 TO: FROM: RE: Nancy Kerry, City Manager Jim Marino, Assistant Director of Public Works Formal Bid No BN1 for Mechanical, Electrical, ADA and Lobby Upgrades PWC to DML Construction, Inc. ($627,371) RECOMMENDATION: Award base bid to DML Construction, Inc. of Verdi, NV in the amount of $627,371 and approve a 5% construction contingency in the amount of $31,368 and authorize Mayor to execute agreement. BACKGROUND: In April 2015 City Council requested the Engineering Division investigate the opportunity to make improvements to the public lobby area at the City Administrative Center (airport). In addition to beautifying the lobby area, staff also took the opportunity to investigate the possibility of replacing aging mechanical, electrical, lighting, and ADA facility infrastructure within the zones identified for renovation. In June 2015, through formal process, the City Engineering Division retained JK Architecture of Truckee, CA to develop conceptual ideas and preliminary cost estimates. In October 2015, upon delivery of conceptual plans, the City amended JK Architecture's contract to produce final Plans, Specifications, and Engineering (PS&E) for purposes of bidding the project. The scope of work for the project includes demolition of the lobby and common area carpeting, walls, doors, lighting, HVAC, plumbing, electrical, and ceiling tile and grid. Construction includes; replacement of the building HVAC and mechanical equipment for that portion of the building, replacement of the lighting, new wall and ceiling treatments, new windows and glazing, installation of a gas fireplace with stone fa9ade, timber log and iron accents, wood paneled walls, new office doors, a visitor's center area, modifications to the reception area including ADA counter and safety glass transaction window, new carpeting and resilient flooring, ADA upgrades to lobby entrance door and ramps, painting, trim, and finishes. ISSUE AND DISCUSSION: On May 16, 2016 the City released the project for bid. The Project was advertised locally in the Tahoe Tribune as well as electronically through the City's bid portal. Approximately two hundred fifteen (215) contractors licensed to perform the work were notified. In addition, eighteen (18) public builders' exchanges also received the bid information for distribution. Twenty eight (28) contractors and vendors downloaded bid documents. Public Works Department Services Center 1052 Tata Lane South Lake Tahoe, CA (530) (530) FAX

2 Airport Lobby Upgrade Bid Award City Council Meeting June 21, 2016 Page 3of3 Project Costs Of the $627,371 base bid proposed for award, line item analysis indicates nearly 50% of the contract costs ($303,283) are being utilized towards replacement of aging facility infrastructure, which includes ADA upgrades, HVAC and mechanical equipment system replacement, plumbing, electrical, and ceiling tile and grid, a visitor's center area, modifications to the reception area including an ADA counter and safety glass transaction window. Of the remaining 50% ($324,088) of the project costs are being utilized towards the aesthetic improvements in the lobby area, council chambers and lower lobby area (Attachment A). Fund Capital Account City Hall (6/6/2016) Facility ADA (6/6/2016) P ropose de xpense Description of Expense Contract Award Project Contingency ( 10%) Final Payment for Architectural Services Construction EnQineerinQ Services Advertisement/BiddinQ Costs Table A $ 687, $ 7, Total Project Funding $ 695, Expense Code Amount $ 627, $ 31, $ 28, $ 5, $ 1, Total Expenses $ 693, Project Surplus $ 1, Attachments: A. Bid Summary B. Contract

3 ATTACHMENT A BID SUMMARY

4 Mechanical, Electrical, ADA & Lobby Improvements Bid Opening: Engineers Estimate DML Construction Z 2 Construction Item No. Bid Item Unit Totals Unit Price Total Cost Unit Price Total Cost Unit Price Total Cost Unit Price Total Cost Unit Price Total Cost 1 Mobilization LS 1 $60, $60, $14, $14, $28, $28, Selective Demolition LS 1 $30, $30, $13, $13, $43, $43, Rough Framing Excluding Fireplace LS 1 $9,3S8.00 $9, $9, $9, $11, $11, Stair Modifications LS 1 $18, $18, $46, $46,196.0C $34, $34, Doors & Hardware Complete and In Place EA 8 $3, $29, $1, $8, $S2.15 $ Windows Complete and In Place EA 4 $ $3, $ $2, $6, $24, Glazing Replacement Complete and In Place EA 24 $1, $27, $1, $27, $2, $62, Transaction Window Complete and In Place EA 1 $6, $6, $2, $2, $7, $7, Carpet Complete and In Place SF 3,900 $4.43 $17, $9.00 $35, $7.56 $29, Resilient Flooring Complete and In Place SF 2,500 $3.24 $8, $18.00 $45, $16.31 $40, Resilient Base Complete and In Place LF 650 $2.92 $1, $7.00 $4, $4.82 $3, Gypsum Board Complete and In Place Including Tape & Finish LS 1 $10, $10, $14, $14, $21, $21, Paint LS 1 $4, $4, $33, $33,572.0C $46, $46, Suspended Ceiling Complete and In Place SF 3,100 $8.99 $27, $20.00 $62, $9.76 $30, Wood Panel Wall Complete and In Place SF 300 $43.63 $13, $40.00 $12, $41.64 $12, Wood Soffit and Trim Complete and In Place LS 1 $1, $1, $15, $15, $45, $45, Fireplace & Surrounding Finishes Complete and In Place LS 1 $35, $35,SOO.OO $107, $107, $135, $135, Suspended Interior Awning Ceiling Complete and In Place LS 1 $3, $3, $7, $7, $9, $9, Transaction Counter Complete and In Place LS 1 $5, $5, $2, $2, $2, $2, Signage Complete and In Place LS 1 $2, $2, $1, $1, $4, $4, Plumbing Complete and In Place Excluding Fireplace LS 1 $14, $14, $11, $11, $12, $12, Mechanical Complete and In Place LS 1 $79, $79, $77, $77, $62, $62, Lighting Complete and In Place LS 1 $54, $54, $58, $58, $78, $78, Power/Cat6 Complete and In Place LS 1 $22, $22, $13, $13, $16, $16, Fire Alarm Complete and In Place LS 1 $0.00 $0.00 $ $ $ $ xx Overhead & Profit LS 1 $27, $27, AWARD AMOUNT Base Bid $513,174,1111 S627,311.IV $764,450,20 Daily Rate of Compensation for Compensable Delay CAL DAY 60 $0.00 $0.00 $ $9, $ $19, Total Base Bid $513,174,00 $636,371.0C $783,950.2[ ADMIN Construction $51,317,40 $62,737,10 $76, Incidentals $7,SOO.OO $7, $7, Proposed Project Budget Total $571, $697, $848, =Construction items upgrading existing facility $256,916.0! $303,283.nl $312,996,Q( = Mathematical Error in Line Item

5 ATTACHMENT B CONTRACT

6 DOCUMENT AGREEMENT CITY OF SOUTH LAKE TAHOE ENGINEERING DEPARTMENT AGREEMENT City Of South Lake Tahoe PUBLIC WORKS DEPARTMENT AGREEMENT for ELECTRICAL, MECHANICAL, ADA AND LOBBY UPGRADES PWC CITY BID NO BN-l THIS AGREEMENT is made and entered into this TWENTY FIRST day of JUNE, 2016, by and between the City of South Lake Tahoe, a political subdivision of the State of California, herein designated "City", and DML CONSTRUCTION INC, herein designated as "Contractor." WITNESSETH, that the City and the Contractor, m consideration of the mutual covenants hereafter set forth, agree as follows: ARTICLE 1 -THE WORK Contractor agrees to furnish all labor, tools, equipment, facilities, materials, transportation and services necessary to perform and complete, in a good and workmanlike manner, the ELECTRICAL, MECHANICAL, ADA AND LOBBY UPGRADES, as required pursuant to the Contract Documents. ARTICLE 2 - COMMENCEMENT AND COMPLETION The Work to be performed under this Agreement shal I commence at the time as specified in the Notice to Proceed, and the Contractor shall diligently undertake the performance of the obligations as set forth in the Contract Documents to achieve Final Completion of the Work (as defined at Section 9.9 Special Provisions) within 70 calendar days after the date commencement of the Work is authorized as set forth in the Notice to Proceed (the "Contract Time"). No grading or excavation or other land disturbance will be allowed between October 15th and May J5'; all Work shall be performed after the issuance of the Notice to Proceed, and Final Completion achieved within the contract time as set forth in these Bid Documents. Page 1

7 The City and the Contractor recognize that time is of the essence of this Agreement and that the City will suffer financial loss if the Work is not completed within the time specified herein, plus any extensions thereof allowed in accordance with the Contract Documents. The City and Contractor also recognize the delays, expense, and difficulties involved in proving the actual loss suffered by the City if the Work is not completed within the Contract Time. Accordingly, instead of requiring any such proof, and pursuant to the Contract Documents, the City and the Contractor agree that as liquidated damages (but not as a penalty), the Contractor shall pay the City the sum of $500 for each calendar day beyond September 1, 2016, and continuing until Bidder achieves Milestone #1, Substantial Completion (per Document 00100, Article 1.04.A.1 ), the Contractor shall pay the City the sum of $500 for each calendar day beyond that portion of the Contract Time within which the Bidder is required to achieve Milestone #2, Final Completion (per Document 00100, Article 1.04.A.2)(per Document 00100, Article 1.04.A.3). In accordance with the Contract Documents, including, without limitation Document ("Bid Proposal"), the daily amount that Contractor may charge to the City for all delay costs, direct and indirect (and inclusive of all expenses and damages, including, without limitation, jobsite and home office overhead costs and extended general conditions) applicable to the first sixty (60) calendar days of Compensable Delay, if any, is $150.00, the amount set forth by Contractor in Document ("Bid Proposal"). This sum shall represent the exclusive and sole amount (i.e., payment in full for any and all direct and indirect delay costs) that Contractor, on behalf of itself and subcontractors and suppliers, of every tier, shall receive for any and all Compensable Delay(s) during the first sixty (60) calendar days of actual, Compensable Delay at the Project. Delay costs that may arise from Compensable Delay, if any, beyond the first sixty (60) calendar days of a Compensable Delay, if allowable, shall thereafter be governed by, and subject to. the applicable provisions of Sections 8 and 9 of the Standard Specifications, as modified by the Special Provisions, and the Contract Documents. ARTICLE 3 - CONTRACT PRICE The City agrees to pay, and the Contractor agrees to accept, in current funds for the performance of the Work pursuant to the Contract Documents, the Contract Sum for the completion of the Work in accordance with the Contract Documents as follows: Page 2

8 Item No. Bid Item Unit Qty. Unit Price Total 1 Mobilization LS 1 14,790 14, Selective Demolition LS I 13,900 13, Rough Framing Excluding Fire Place LS 1 9,408 9,408 4 Stair Modifications LS 1 46,196 46,196 5 Doors & Windows Doors & Hardware Complete and In Place Windows Complete and In Place Glazing Replacement Complete and In Place Transaction Window Complete and In Place EA EA EA EA I 1, , 142 2,500 8,960 2,240 27,408 2,500 6 Finishes 6.1 Carpet Complete and In Place SF , Resilient Flooring Complete and In Place SF 6.3 Resilient Base Complete and In Place LF Gypsum Board Complete and 6.4 In Place including Tape & 1 Finishing LS , ,000 4,550 14, Paint I LS 33,572 33, Suspended Ceiling Complete and In Place Wood Panel Wall Complete and In Place Wood Soffit and Trim Complete and In Place I SF SF LS ,000 62,000 12,000 15,000 Page 3

9 Item No. Bid Item Unit Qty. Unit Price Total 7 Misc. Specialties and Casework Fireplace & Surrounding 7.1 Finishes Complete and In 1 LS 107, ,856 Place Suspended Interior Awning 7.2 Celling Complete and In 1 LS 7,600 7,600 Place 7.3 Transaction Counter Complete and In Place 1 LS 2,000 2, Signage Complete and In Place 1 LS 1,800 1,800 8 Plumbing Complete and In Place (Excluding Fireplace) 1 LS 11,748 11,748 9 Mechanical Complete and In Place 1 LS 77,240 77,240 JO 10.l Electrical Lighting Complete and In Place Power/CAT 5 Complete and In Place Fire Alarm Complete and In Place $ 627, I LS 58,875 58,875 1 LS 13,216 13,216 1 LS TOTAL CONTRACT SUM For the Total Contract Sum of SIX HUNDRED TWENTY SEVEN THOUSAND THREE HUNDRED SEVENTY ONE DOLLARS AND ZERO CENTS. The above Total Contract Sum includes all allowances, if any, provided for in the Contract Documents. Compensation for Unit Price Items shall be based upon the unit prices stated in the above schedule multiplied by the actual quantities or units of work and materials performed or furnished. Unit prices paid by the City may change depending on actual quantities or units of work completed in accordance with the Contract Documents. ARTICLE 4 - PREVAILING WAGES Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, the Contractor, and any subcontractor, of any tier, shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Page 4

10 Relations. In accordance with Labor Code section , that the Project is subject to monitoring and enforcement by the Department of Industrial Relations pursuant to 8 Cal. Code Reg through 16464, including the obligation to furnish certified payroll records directly to the Division of Labor Standards Enforcement's Compliance Monitoring Unit (CMU), using the CMU's electronic certified payroll reporting (ecpr) system. Pursuant to the provisions of California Labor Code Section , the Contractor is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work in the locality in which the Work is to be performed for each craft, classification, or type of worker required to execute the Contract, are on file in the City's office. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this public works contract as required by Labor Code Section These rate determinations are found on the State of California Department of Industrial Relations' website at: ARTICLE 5 - CONTRACT DOCUMENTS The Agreement includes and incorporates by reference the Contract Documents for the Project, which consists of the following documents: (a) Notice to Bidders (Document 00100); (b) Instructions to Bidders (Document 00200); (c) Bid Proposal (Document 00400); ( d) Bidder's Bond (Document 0041 O); ( e) Designation of Subcontractors (Document 00420); (f) Self-Performance Declaration (Document 00425); (g) Debarment and Suspension Certifications (Document 00430); (h) Non-Collusion Declaration (Document 00432); (i) Worker's Compensation Certification (Document 00435); (j) (k) Business and Professions Code Sections and 7031 Statement (Document 00440); Bidder's Statement of Financial Responsibility, Technical Ability and Experience (Document 00450); (1) Equal Employment Opportunity Certification (Document 00460); (m) Non-Lobbying Certification (Document 00465); (n) Disclosure of Lobbying Activities (Document 00466); (o) DELETED (Document 00470); (p) DELETED (Document ); (q) DELETED (Document 00475); (r) Agreement (Document 00500); Page 5

11 (s) Payment Bond Form (Document 00610); (t) Performance Bond Form (Document 00620); (u) Sample Escrow Agreement for Security Deposits In Lieu of Retention (Document ); (v) Warranty/Guaranty Form (Document 00635); (w) Acknowledgment of City Code (Document 00640); (x) Bid Document Certification (Document 00650); (y) (z) (aa) (bb) The Standard Specifications of the State of California, Department of Transportation, dated 201 O; the Standard Plans of the State of California, Department of Transportation, dated 2010, and the South Lake Tahoe Public Improvement and Engineering Standards; Special Provisions (which incorporate by reference, and, as specified, modify the Standard Specifications of the State of California, Department of Transportation, dated 201 O; the Standard Plans of the State of California, Department of Transportation, dated 2010, and the South Lake Tahoe Public Improvement and Engineering Standards) (Document 00700); Supplemental Conditions (Document 00800), if any; General Requirements, if any; (cc) Construction Progress Documentation (Document 01300); (dd) Technical Specifications; ( ee) Contract Drawings; (ff) (gg) Addenda (n/a) inclusive; and Permits from other agencies as may be required by law. Exhibits to this Agreement are enumerated as follows: Accepted Contractor's Bid attached hereto as Exhibit A; Escrow Bid Document Certification attached hereto as Exhibit B; and Insurance Certificates and Endorsements as Exhibit C. ARTICLE 6 -WORKERS' COMPENSATION Contractor shall take out and maintain during the life of the Agreement, adequate and sufficient workers' compensation insurance for all Contractor's employees employed at the site of improvements, and, if any Work is sublet, Contractor shall require each subcontractor similarly to provide workers' compensation insurance for all of the latter's employees, unless such employees arc covered by the protection afforded by Contractor. If any class of employees engaged in Work under this contract at the site of the Project is not protected under workers' compensation law, Contractor shall provide, and shall cause each subcontractor to provide, adequate insurance for the protection of employees not otherwise protected. Contractor shall indemnify the City, for any damage resulting to it from failure of either Contractor or any subcontractor to take out or maintain such insurance. Page 6

12 By its signature upon this Agreement, Contractor certifies that it has carefully reviewed and is aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for worker's compensation, or to undertake self-insurance in accordance with the provisions of the labor Code. Contractor, as a condition precedent to the commencement of its Work pursuant to the Agreement, shall comply with such provisions. ARTICLE 7 - INDEMNITY AND INSURANCE To the fullest extent permitted by Jaw, and in strict accordance with the Contract Documents, Contractor shall defend, indemnify, and hold harmless the City, its officials, ofliccrs. City Council members, employees, agents, the Architect/Engineer, the Project Manager and the Project consultants, and their respective principals, officers and employees, and each of them, of and from any and all claims, demands, suits, causes of action, damages, costs, expenses, attorneys' fees, losses, or liability, in law or in equity, of every kind and nature whatsoever related to, arising out of, or in connection with, Contractor's operations to be performed under this Agreement, and as otherwise set forth in Contract Documents, including, without limitation, Section 7-l.05A of the Standard Specifications, as modified by Section 7.11 of the Special Provisions. The obligations of defense and indemnity set forth in this Article, and in the Contract Documents, shall not be limited by any insurance requirements or obligations pursuant to the Contract Documents. The obligations arising from this Article shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity (including all duties to defend), which would otherwise exist as to a party, or person described elsewhere in the Contract Documents. Contractor shall maintain the insurance coverage described in Section of the Standard Specifications, as modified by Section 7.12 of the Special Provisions, throughout the performance of the Agreement, including any maintenance, warranty and/or guaranty periods. This Agreement shall not be operative until evidence of such insurance has been provided to, and approved by, the City as to form, amount, and carrier. Contractor shall not allow any subcontractor to commence Work at the Project until subcontractor provides evidence to Contractor and City that subcontractor has obtained insurance acceptable to the City. ARTICLE 8 - NOTICES Whenever any provision of the Contract Documents requires the giving of written notice, it shall be deemed to have been validly given if delivered in person to the individual for whom it is intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the address listed below: Notices required to be given to City: City Engineer City of South Lake Tahoe 1052 Tata Lane South Lake Tahoe, CA Notices required to be given to Contractor: Don Lazorko - DML Construction Inc. P.O. Box 728 Verdi, NV Page 7

13 Notices required to be given to any surety(ies): ARTICLE 9 - MISCELLANEOUS 9.1 Terms. Terms used in this Agreement will have the meanings indicated in the Contract Documents. 9.2 Assignment. No assignment by a party hereto of any rights under or interests in the Agreement will be binding on another party hereto without the written consent of the party sought to be bound; and, specifically but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 9.3 Successors and Assigns. City and Contractor each binds itself, its partners, successors, assign, and legal representatives to the other party hereto, its partners, successors, assigns, and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. 9.4 Severability. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken prov1s1on. 9.5 South Lake Tahoe City Code. Contractor acknowledges that all pertinent provisions within the South I,ake Tahoe City Code, including, without limitation, Chapter 22, Article III ("Public Works Contracts") are incorporated by reference as though set forth in full herein, and, further, the failure of Contractor or any subcontractor, of any tier, to comply with any of its/their obligations under the Contract Documents, or the requirements of the South Lake Tahoe City Code, or any other applicable law, code, statute, or regulation, shall be deemed a material breach of the Agreement. 9.6 Third Party Beneficiary. In accordance with Chapter 22, Article of the South Lake Tahoe City Code, Contractor expressly acknowledges the City's status as a third party beneficiary solely with respect to the performance to be rendered under each subcontract, of any tier, upon the Project, and, as a result, Contractor acknowledges that City possesses, inter alia, the rights enumerated within the South Lake Tahoe City Code as to the enforcement of obligations under subcontracts of any tier. 9.7 Regulatory Requirements. Contractor acknowledges that the Project is subject to requirements and regulations issued on behalf of various governmental and/or regulatory bodies, including, without limitation, the Lahontan Regional Water Quality Control Board and the Tahoe Regional Planning Agency, among others. Contractor agrees to fully and promptly comply with any and all requirements and regulations issued on behalf of such entities. Page 8

14 9.8 Governing Law. This Agreement and the Contract Documents shall be deemed to have been entered into in the County of El Dorado, State of California, and governed by California law. By entering into this Agreement, the Contractor consents and submits to the jurisdiction of Courts of the State of California, County of El Dorado, over any action of law. suit in equity, and/or other proceeding that may arise out of the Contract Documents. IN WITNESS I IEREOF, the said City of South Lake Tahoe, State of California, has caused this Agreement to be executed by its Mayor in its behalf, and the said Contractor has signed this Agreement the day and year first above written. CITY OF SOUTH LAKE TAHOE By Wendy David, Mayor, City of South Lake Tahoe, State of California Contractor: By Title Business License No. ATTEST: APPROVED AS TO FORM: By City Clerk City of South Lake Tahoe By City Attorney City of South Lake Tahoe END OF DOCUMENT Page 9