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1 FORN`♦ City Council Staff Report
Date: September 7, 2011 CONSENT CALENDAR
Subject: AWARD OF CONTRACT FOR THE TRACT NO. 13257 SEWER
IMPROVEMENTS (PHASES 1 & 2), CITY PROJECT 10-02
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
Award of this contract will allow staff to proceed with this Community Development
Block Grant ("CDBG") funded project to construct a new sewer system within Tract No.
13257 (located west of Gene Autry Trail and south of Via Escuela).
RECOMMENDATION:
1) Approve Agreement No. in the amount of $344,488.25 with G&M
Construction, a California corporation, for Bid Schedule A (Phase 1) of the Tract
No. 13257 Sewer Improvements, City Project 10-02; and
2) Approve Change Order No. 1 to Agreement No. with G&M Construction,
in an amount of$61,346.40 for a revised total contract amount of$405,834.65 for
the Tract No. 13257 Sewer Improvements, City Project No. 10-02; and
3) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2011/2012 FISCAL YEAR TO TRANSFER ADDITIONAL FUNDING FOR
THE TRACT NO. 13257 SEWER IMPROVEMENTS (CITY PROJECT NO. 10-
02)"; and
4) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The Public Works and Engineering Department requested and received funding from
the City's 2010/2011 and 2011/2012 CDBG Programs. The Department has proposed
to design and construct a new sewer system to serve the low-to-moderate income
neighborhood located west of Gene Autry Trail and south of Via Escuela (referred to as
ITEM NO. —
City Council Staff Report
September 7, 2011 - Page 2
Tract No. 13257 Sewer Improvements(City Project 10-02)
"Tract No. 13257"). Tract No. 13257 was developed during the 1980's when it was part
of unincorporated Riverside County. At the time, Riverside County did not require
extension of public sewer to the tract, and all 87 homes in Tract No. 13257 have private
septic systems, some of which have begun to fail. Some lower income property owners
have had to request financial assistance from the City for pumping and servicing of their
septic systems.
On March 17, 2010, the City Council approved the 2010/2011 CDBG Program, and
awarded the Department $267,118 for the first phase of this project. On March 16,
2011, the City Council approved the 2011/2012 CDBG Program, and awarded the
Department $180,951 for the second phase of this project (this amount was reduced to
$160,855 as a result of a lower overall CDBG Program distribution to the City).
Ultimately, this phased CDBG project proposes to install approximately 3,800 feet of 8"
VCP public sewer line and 3,480 feet of 4" VCP sewer laterals. The existing on-site
septic tanks will be disconnected and abandoned in accordance with the City's Building
Department requirements. The costs to convert from private septic systems to a public
sewer system are included in this proposal, including the $3,000 per unit sewer
connection charge imposed by the City at the time a property is connected to the City's
sewer system.
Given the $1,200,000 total estimated cost to provide public sewer to Tract No. 13257,
this project is proposed as a multi-year CDBG phased project.
On July 20, 2011, the City Council approved the plans and authorized bidding for
Phases 1 and 2 of this project. On July 23 and 30, 2011, the project was advertised for
bids, and at 3:00 p.m. on August 23, 2011, the Procurement and Contracting Division
received construction bids from the following contractors:
1. G&M Construction; Palm Springs, CA $638,680.00
2. Jones Bros. Construction Co.; Coachella, CA $725,947.02
3. WEKA, Inc.; Redlands, CA $759,272.00
4. James A Shirley Construction Inc.; Yucca Valley, CA $780,436.00
5. Genesis Construction; Hemet, CA $797,777.00
The Engineer's Estimate for Phases 1 and 2 was $630,000.
The low bid exceeds the total amount of CDBG funds available, therefore, it will not be
possible to award all of Phases 1 and 2 at this time. The low bid for Phase 1 only is
$344,488.25. Additional costs must also be covered by CDBG funds as part of
construction, as follows:
Phase 1
Construction: $344,488.25
Sewer Connection Fees: 21 @ $3,000 = $63,000
Materials Testing: $9,708
02
City Council Staff Report
September 7, 2011 - Page 3
Tract No. 13257 Sewer Improvements (City Project 10-02)
Construction Administration/Inspection: $15,000
Total: $432,196.25
There remain additional unexpended CDBG funds from prior years that may be used to
supplement current funding for this project. It is recommended that a portion of Phase 2
sewer construction work be added by Contract Change Order. The portion of work to
be funded would include only the public sewer main and sewer laterals within Zachary
Court. No on-site building sewer extensions and septic tank abandonments would be
included at this time given the budget constraints. It will be staffs intention to submit an
application for Fiscal Year 2012/2013 CDBG funding to complete the Phase 2 sewer
construction work originally contemplated with this project.
The lowest, responsive bidder is G&M Construction, whose principal officers are:
George Marantz, President; and Dianne Marantz, Secretary/Treasurer.
FISCAL IMPACT:
It will be necessary to use the funds allocated for Phase 2 of this project towards
construction of Phase 1. The total estimated cost for Phase 1 is $432,196.25. There is
approximately $198,000 in CDBG funds currently available for Phase 1, with an
additional $160,855 allocated for Phase 2. An additional $171,000 from unexpended
CDBG funds from prior years (other projects never completed by the recipients or where
costs were below awarded amounts) is also available. It is being recommended that the
City Council adopt a Budget Amendment to officially transfer these unexpended funds
to use specifically for this project. In order to complete the remainder of Phase 2
(including connection of homes on Zachary Court to the new sewer system), it will be
necessary for the City to allocate additional CDBG funds from future years. Upon
transfer of unexpended CDBG funds to this project, sufficient funds will be available in
accounts 137-4812-63583 and 137-4813-63583.
SUBMITTED:
John ay ond, 'rector David J. Barakian
ComrftuQill & Ed6nomic Development Director of Public Works/City Engineer
A pro ,
Thomas J. Wil6dh, Asst. City Manager David H. Ready, ager
Attachments:
1. Agreement, 2. Contract Change Order, 3. Resolution
03
AGREEMENT
THIS AGREEMENT made this day of in the year 2011, by and
between the City of Palm Springs, a charter city, organized and existing in the County of
Riverside, under and by virtue of the laws of the State of California, hereinafter
designated as the City, and G&M Construction, hereinafter designated as the Contractor.
The City and the Contractor, in consideration of the mutual covenants hereinafter set
forth, agree as follows:
ARTICLE 1 --THE WORK
The Contractor shall complete the Work as specified or indicated under the Bid
Schedule(s) of the City's Contract Documents entitled:
TRACT 13257 SEWER IMPROVEMENTS
CITY PROJECT NO. 10-02
The Work is generally described as follows:
Installation of eight-inch VCP sewer mains, manholes, four-inch VCP sewer laterals, on-
site building sewer connections, on-site private septic tank abandonments, trenching and
excavations for sewer installation, trench backfill and pavement replacement, on-site
restoration, demolition and replacement of storm drain inlet, storm drain channel, removal
and replacement of existing fencing, and all related and associated work
ARTICLE 2 --COMMENCEMENT AND COMPLETION
The Work to be performed under this Contract shall commence on the date specified in
the Notice to Proceed by the City, and the Work shall be fully completed within the time
specified in Section 2 of these Special Provisions.
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
in Article 2, herein, plus any extensions thereof allowed in accordance with the applicable
provisions of the Standard Specifications, as modified herein. They also recognize the
delays, expense, and difficulties involved in proving in a legal proceeding the actual loss
suffered by the City if the Work is not completed on time. Accordingly, instead of requiring
any such proof, the City and the Contractor agree that as liquidated damages or delay
(but not as a penalty), the Contractor shall pay the City the sum of $1,300.00 for each
calendar day that expires after the time specified in Article 2, herein.
04
AGREEMENT FORM
AGREEMENT AND BONDS-PAGE 1
ARTICLE 3 —CONTRACT PRICE $344,488.25 (Bid Sch. A only)
The City shall pay the Contractor for the completion of the Work, in accordance with the
Contract Documents, in current funds the Contract Price(s) named in the Contractor's Bid
and Bid Schedule(s).
ARTICLE 4—THE CONTRACT DOCUMENTS
The Contract Documents consist of the Notice Inviting Bids, Instructions to Bidders, the
prevailing rate of per diem wages as determined by the Director of the California
Department of Industrial Relations, Federal Labor Standards Provisions, Federal Rates of
Prevailing Wages, the accepted Bid and Bid Schedule(s), List of Subcontractors, Non-
collusion Affidavit, Bidder's General Information, Bid Security or Bid Bond, this
Agreement, Worker's Compensation Certificate, Performance Bond, Payment Bond,
Standard Specifications, Special Provisions, the Drawings, Addenda numbers 01 to 03,
inclusive, and all Change Orders and Work Change Directives which may be delivered or
issued after the Effective Date of the Agreement and are not attached hereto.
ARTICLE 5 -- PAYMENT PROCEDURES
The Contractor shall submit Applications for Payment in accordance with provisions of the
Standard Specifications as amended by the Special Provisions. Applications for Payment
will be processed by the Engineer or the City as provided in the Contract Documents.
ARTICLE 6 -- NOTICES
Whenever any provision of the Contract Documents requires the giving of a written
Notice, it shall be deemed to have been validly given if delivered in person to the
individual or to a member of the firm or to an officer of the corporation for whom it is
intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the
last business address known to the giver of the Notice.
ARTICLE 7 — MISCELLANEOUS
Terms used in this Agreement which are defined in the Standard Specifications and the
Special Provisions will have the meanings indicated in said Standard Specifications and
the Special Provisions. No assignment by a party hereto of any rights under or interests
in the Contract Documents will be binding on another party hereto without the written
consent of the party sought to be bound; and specifically, but without limitation, monies
that may become due and monies 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.
The City and the Contractor each binds itself, its partners, successors, assigns, and legal
representatives, to the other party hereto, its partners, successors, assigns, and legal
representatives, in respect of all covenants, agreements, and obligations contained in the
Contract Documents.
05
AGREEMENTFORM
AGREEMENT AND BONDS-PAGE 2
IN WITNESS WHEREOF, the City and the Contractor have caused this Agreement to be
executed the day and year first above written.
ATTEST: APPROVED BY THE CITY COUNCIL:
CITY OF PALM SPRINGS,
CALIFORNIA
Date
By
City Clerk Agreement No.
APPROVED AS TO FORM:
By
City Attorney
Date
CONTENTS APPROVED:
By
City Engineer
Date
By
City Manager
Date
06
AGREEMENTFORM
AGREEMENT AND BONDS-PAGE 3
Corporations require two notarized signatures: One signature must be from Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant
Treasurer,or Chief Financial Officer.
CONTRACTOR: Name: G&M Construction Check one:_Individual_Partnership X Corporation
Address: 211 W. Mesquite Avenue
Palm Springs,CA 92264
By: By:
Signature(notarized) Signature (notarized)
Name: Name:
Title: Title:
(This Agreement must be signed in the above This Agreement must be signed in the above
space by one of the following: Chairman of the space by one of the following: Secretary, Chief
Board, President or any Vice President) Financial Officer or any Assistant Treasurer)
State of ❑ State of ❑
County of ❑ss County of ❑ss
On On
before me, before me,
personally appeared personally appeared
who proved to me on the basis of satisfactory who proved to me on the basis of satisfactory
evidence to be the person(s)whose name(s) is/are evidence to be the person(s)whose name(s) is/are
subscribed to the within instrument and subscribed to the within instrument and
acknowledged to me that he/she/they executed the acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and same in his/her/their authorized capacity(ies), and
that by his/her/their signatures(s) on the instrument that by his/her/their signatures(s) on the instrument
the person(s), or the entity upon behalf of which the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument. the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing laws of the State of California that the foregoing
paragraph is true and correct. paragraph is true and correct.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
AGREEMENT FORM O I
AGREEMENT AND BONDS-PAGE 4
CITY OF PALM SPRINGS
CONTRACT CHANGE ORDER
To: G&M Construction Date: September 7, 2011
211 W. Mesquite Ave. Project No: 10-02
Palm Springs, CA 92262 Project: Tract No. 13257 Sewer
Tel: (760) 322-6918 Improvements (Ph 1 &2)
Fax: (760) 778-6708 Change Order No: 1
Purchase Order Pending
Attn: George Marantz Account 137-4813-63583
Agreement No: Pending
CHANGES IN WORK:
In lieu of awarding the entire Bid Schedule B, this Contract Change Order No. 1 shall add the following scope
of work from Phase 2 of the plans:
Construct 8" VCP sewer main in Zachary Court (Station 10+05 to 12+36.20)
Construct 4" VCP sewer laterals at Station 10+59.98, 10+74.29, 11+16.77, 11+36.77, 11+81.12, 11+86.12,
12+19.20, 12+24.20, and 12+29.20
Construct 48" sewer manhole at Station 12+36.20
Mobilization, traffic control and sheeting/shoring/bracing associated with the above additional work.
On-site building sewer extension and septic tank abandonment work is excluded.
CHANGES IN COST:
Increases in Cost:
Item 1, Mobilization, Lump Sum (LS) @ $5,000
Item 2, Traffic Control, Lump Sum (LS) @ $1,750
Item 3, Construct 8" VCP Sewer Main, 231.20 linear feet (LF) @ $98.25 per LF = $22,715.40
Item 4, Construct Sewer Manhole (D=48"), 1 each (EA) @ $2,500.00
Item 5, Construct 4" VCP Sewer Lateral, 281.00 linear feet (LF) @ $101.00 per LF = $28,381.00
Item 6, Sheeting, Shoring & Bracing or Equivalent Method, Lump Sum (LS) @ $1,000
The prices listed above are consistent with the prices listed in Bid Schedule B, and shall constitute full
compensation, including all markups for this additional work, and no additional payment will be made.
As specified in the Special Provisions, compensation for removal and replacement of existing improvements
related to the sewer construction shall be considered as included in the prices paid, and no additional
compensation will be allowed therefore.
SOURCE OF FUNDS:
Funds are available in the following account(s): 137-4813-63583
REASONS FOR CHANGE:
Bid Schedule B not included in original contract award due to budget constraints. Adding sewer construction in
Zachary Court to contract.
08
Contract Change Order No. 1
City Project#10-02, Tract No. 13257 Sewer Improvements
Page 2 of 2
SUMMARY OF COSTS:
Original Contract Amount: $ 344,488.25 Original Completion TBD
This Change Order: $ 61,346.40 Days Added for this CO: -to-
Previous Change Order(s): $ 0.00 Previous Days Added: —0—
Revised Contract Amount: $ 405,834.65 Revised Completion TBD
I have received a copy of this Change Order and the above AGREED PRICES are acceptable to Contractor
Contractor Approval:
Signature Date
Printed Name and Title
City Approval:
Submitted By:
Assistant Director of Public Works/ Date
Assistant City Engineer
Approved By:
Director of Public Works/City Engineer Date
Approved By:
City Manager Date
Attest By:
City Clerk Date
Distribution:
Original Conformed Copy: Conformed- File Copy:
Contractor (1) Engineering Pay File (1)
City Clerk (1) Resident Engineer (1)
Procurement (1)
Finance (1)
09
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR FISCAL YEAR 2011-12 TO TRANSFER ADDITIONAL
FUNDING FOR THE ARNICO TRACT SEWER
IMPROVEMENTS RELATING TO COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING.
WHEREAS, Resolution No. 22926 approving the Budget for the Fiscal Year
2011-2012 was adopted on June 1, 2011; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to the budget for Fiscal Year 2011-12.
NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
SECTION 1. The Director of Finance is authorized to record inter-fund cash
transfers as required in accordance with this Resolution, and Resolution No. 22926,
adopting the Budget for Fiscal Year 2011-12 is hereby amended as follows:
SOURCE(S):
Fund Activity Account Amount
137 4804 &4805 50000 $171,000
Community Unscheduled
Development Block Capital Project
Grant
ADDITION(S):
Fund Activity Account Amount
137 4813 63583 $171,000
Community PS Arnico Tract
Development Block Sewer
Grant
PURPOSE: Fund additional improvements for the CDBG funded Arnico Tract Sewer
project.
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Resolution No.
Page 2
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 7TH DAY OF SEPTEMBER, 2011.
DAVID H. READY, CITY MANAGER
ATTEST:
JAMES THOMPSON, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAMES THOMPSON, CITY CLERK
City of Palm Springs, California
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