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HomeMy WebLinkAbout20B - AA - DEMO CONTRACTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 4, 2011 TITLE: APPROPRIATION ADJUSTMENT DEMOLITION CONTRACT WITH CARDINAL ENVIRONMENTAL CONSULTANTS, INC., DBA 5M CONTRACTING CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1 st Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute the attached demolition contract with Cardinal Environmental Consultants, Inc., dba 5M Contracting in the amount of $38,220, subject to non-substantive changes approved by the City Manager and City Attorney. 2. Approve a Funding Analysis with a total estimated demolition cost of $43,953. 3. Approve an Appropriation Adjustment transferring funds in the amount of $43,953 from the General Non-Departmental Fund (account no. 01105015-66400) to the Non-Departmental Capital Outlay Fund (account no. 05105015-66220). DISCUSSION The property located at 1901 W. Walnut Street (Exhibit 1) was acquired by the City in March of 2008. The City intends to demolish the building and requires the services of a qualified demolition contractor. A notice requesting bids was published in the Orange County Reporter on February 28, 2011 and March 2, 2011, and emailed to 14 demolition contractors, two of which are located in the City, that had previously indicated an interest in working with the City. Responsive bids were received from six companies and are summarized below: 20B-1 AA - Demolition Contract - Cardinal Environmental Consultants, Inc., dba 5M Contracting April 4, 2011 Page 2 Name of Firm or Individual Total Amount of Proposal Company Location Cardinal Environmental Consultants, Inc., dba 5M Contracting $38,220 Tustin Flores Sierra Contractors, Inc. $76,590 Chula Vista Graham Crackers Demolition, Inc. $65,892 Menifee Interior Demolition, Inc. $56,732 Montrose NCM Demolition & Remediation, LP $165,600 Brea Vizion's West $99,730 Winchester The bids were evaluated by staff for completeness, qualifications and experience, cost competitiveness and time allotted to complete the project. Cardinal Environmental Consultants, Inc., dba 5M Contracting was selected as the most responsive bid. The total amount of their bid was $38,220. Staff is recommending a total project budget of $43,953 which includes $5,733 for contingencies. The contractor will be responsible for performing all work in accordance with all applicable laws and regulations for obtaining all required permits and for processing all required notifications. CEQA COMPLIANCE In accordance with the California Environmental Quality Act, the proposed project is exempt from further review per Section 15061(b)(3) as the project will not have a significant effect on the environment. FISCAL IMPACT The funding analysis shows a total estimated cost of $43,953. Upon approval of the appropriation adjustment, funds will be available in the Non-Departmental Capital Outlay Fund (account no. 05105015-66220). APPROVED AS TO FUNDS AND ACCOUNTS: Y "V Nancy T. E ards Interim Exe tive Director Community Development Agency Francisco Gutierrez Executive Director Finance & Management Services Agency/,-- 20B-2 AA - Demolition Contract - Cardinal Environmental Consultants, Inc., dba 5M Contracting April 4, 2011 Page 2 NTE/SLB/RHL/mlr Exhibits: 1. Map 2. Funding Analysis 3. Contract 20B-3 20B-4 SECOND FIRST STREET w W w STREET PINE STREET oc E C ew 1901 West Walnut Street Exhibit 1 20B-5 20B-6 FUNDING ANALYSIS DEMOLITION OF 1901 W. WALNUT STREET Cardinal Environmental Consultants Inc., dba 5M Contracting Contract Contingencies TOTAL ESTIMATED COSTS Exhibit 2 $38,220.00 $5,733.00 $43,953.00 20B-7 20B-8 DEMOLITION CONTRACT THIS CONTRACT, made and entered into this 4th day of April, 2011, by and between Cardinal Environmental Consultants, Inc., dba 5M Contracting, a California Corporation, hereinafter referred to as "Contractor", and the City of Santa Ana, a charter city and municipal corporation, hereinafter referred to as "City". RECITALS: A. City desires to employ a general licensed building Contractor as defined in California Business and Professions Code § 7057 to perform demolition work on property located at 1901 W. Walnut Street, in the City of Santa Ana (the "Property"). B. Contractor represents that it is qualified to perform such work as desired by City. WHEREFORE, for and in consideration of the respective and mutual covenants and promises hereinafter contained and made, and subject to all the terms and conditions hereof, the parties hereto agree as follows: 1. SCOPE OF WORK A. Project Specifications. Contractor agrees, at its sole cost and expense, to provide all supervision, technical personnel, labor, materials, machinery, tools, equipment, fixtures and services for the work required for demolition of the Property, in accordance with the attached bid and proposal, general conditions, work write-ups, specifications, and drawings, which documents are incorporated herein by reference as though fully set forth. (See Exhibit A "Project Specifications" attached hereto and incorporated herein by reference). Contractor shall perform all work in conformance with applicable laws and local requirements whether or not covered by the specifications and drawings for the work. Contractor shall pay all sales, consumer, use and other similar taxes required by law, and shall procure and pay for all permits and licenses necessary for the execution and completion of the work and labor to be performed hereunder. B. Prevailing wage. All laborers and mechanics employed by the Contractor and any subcontractor in the performance of the work under this Agreement shall be paid wages at rates not less than the prevailing wage as provided in the statutes applicable to public works including without limitation Sections 1770-1780 of the California Labor Code. This paragraph does not apply to contracts which do not exceed $2,000. 2. NOTICE TO PROCEED/NOTICES The work shall begin no later than twenty (20) calendar days from and after Contractor receives written notice to proceed from the City. Failure by Contractor without lawful excuse to substantially begin work within twenty (20) days of the date of receipt of said written notice to proceed shall postpone the next succeeding payment to the Contractor for that period of time equivalent to the time between when work was to begin and when it did begin. City shall give said notice to proceed within forty-five (45) calendar days EXHIBIT 3 20b-9 from and after the date of the signing of this Contract. If the written notice to proceed is not received by Contractor within said period, Contractor reserves the right to withdraw his bid and proposal. Notices shall be addressed to the Contractor at: Cardinal Environmental Consulting, Inc 2691 Dow Avenue, Unit C-2 Tustin, CA 92780 (714) 730-6760 Attn: Ronald R. McDaniel 3. TIME FOR COMPLETION/ CONTRACT TERM The term of this contract is from the date set forth above through May 9, 2011. All work shall be satisfactorily completed within FORTY-FIVE (45) days from the date when said work is commenced. 4. CLEANUP Contractor shall keep the premises clean and orderly during the course of the work and remove all debris upon completion of the work. Materials and equipment that have been removed and replaced as part of the work shall belong to Contractor. 5. CHARGES AND LIENS/ PERFORMANCE BOND Contractor shall pay when due all valid charges for labor and material incurred by Contractor and used in the construction pursuant to this Contract and shall also be responsible for keeping the job free of mechanic's liens recorded by any of the persons enumerated in California Civil Code § 3110. If Contractor fails to make any payments required pursuant to this paragraph, or if Contractor fails to keep said real property free of mechanic's liens incurred by or under Contractor or its subcontractors, City may settle said claims and Contractor shall notify the City in writing when a legitimate dispute arises between Contractor and any and all persons enumerated in California Civil Code § 3110. Contractor shall provide the City with a Payment Bond and Bond of Faithful Performance in the standard amount based on the cost of the project. Such bonds shall be executed by both the Contractor and the Surety Company to the satisfaction of the City Attorney. If Contractor fails or is unable to obtain said bond, City may obtain and record said bond and deduct the costs from any payment due Contractor. 6. CORRECTION AND DEFECTS Contractor shall correct any work that fails to conform to the requirements of this Contract or any documents pursuant thereto, where said failure to conform appears during the progress of the work. Contractor shall remedy any defects due to faulty materials, equipment or workmanship which appear within a period of one (1) year from the date of substantial completion of the work or within such longer period of time as may be prescribed by law or by the terms of any applicable special guarantee required by this Contract or any document pursuant thereto. 7. GUARANTEE Contractor guarantees the work performed for a period of one (1) year from the date of final acceptance of all the work required by this Contract, unless the work required repair or construction of a roof, in which case Contractor guarantees the work for a period of five (5) years. Further, Contractor shall EXHIBIT 3 2 20B-10 Payments may be withheld on account of defective work not remedied, claims filed, failure of Contractor to make payments properly to subcontractors or for labor, materials, or equipment, damages by another Contractor, or unsatisfactory performance of the work by Contractor, as determined by the City. The project budget allows for additional funds, supported by adequately documented approved change orders, in the amount of $5,733.00, to ensure project completion, with an overall total budget of $43,953.00. 14. INDEMNIFICATION Contractor shall indemnify and save harmless the City of Santa Ana, its officers and employees, against any and all damages to property and injuries to or death of any person or persons, including employees or agents of the City of Santa Ana, and shall defend, indemnify and save harmless Owner and the City of Santa Ana, its officers and employees, from any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, worker's compensation claims of or by anyone whomsoever in any way resulting from or arising out of the operations in connection herewith, including operations of subcontractors and acts or omissions of employees or agents of Contractor or its subcontractors. 15. INSURANCE With respect to performance of work under this Contract, Contractor shall maintain and shall require its subcontractors, if any, to maintain insurance as described below: (a) Workers' compensation insurance with statutory limits, and employer's liability insurance with limits of not less than $1,000,000 per incident; and (b) Contractor shall maintain commercial general liability insurance naming the City, its officers, agents, volunteers, and employees as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence. Contractor shall supply the City with a fully executed additional insured endorsement in substantially the form attached hereto as Exhibit B upon execution of this Agreement and shall be approved in form by the City Attorney. (c) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles. (d) Contractor shall (a) furnish properly executed certificates of insurance to the City prior to commencement of work under this Contract, which certificates shall clearly evidence all coverage required above and provide that such insurance shall not be materially changed or terminated except on 30 days' prior written notice to the City; and (b) maintain such insurance from the time work first commences until completion of the work under this Contract; and (c) replace such certificate for policies expiring prior to completion of work under this Contract. EXHIBIT 3 4 20B-11 furnish the City, all manufacturer's and supplier's written guarantees and warranties covering materials and equipment furnished under this Contract. Contractor guarantees all materials to be as specified and all work to be completed in a professional manner according to standard practice. Unless otherwise specified, all materials shall be new. Contractor shall leave the work in a finished condition as determined by acceptable building standards and to the satisfaction of the City. 8. INSPECTIONS Contractor shall permit the City of Santa Ana, or its designee(s), to examine and inspect the rehabilitation work. In addition, City shall have the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements and this Contract. Contractor agrees that all work found by such inspections not to conform to the applicable requirements to be corrected, and City shall have the right to withhold payment to Contractor until it is so corrected. 9. UTILITIES AND COOPERATION While this Agreement is in full force and effect, City shall permit Contractor to use existing utilities such as light, heat, power and water to carry out and complete the work and shall cooperate with Contractor to facilitate the performance of coverings and furniture, if and to the extent necessary. 10. OCCUPATION OF PREMISES The premises are to be VACANT during the course of the work. 11. CHANGE ORDERS Any changes or deviations from specifications or terms of this Contract shall be effective only upon the prior written consent of the Contractor and the City. All change orders will specifically describe the work and/or changes, the additional contract price and time for completion. 12. NOTICE OF COMPLETION The City shall execute, acknowledge, and record in the manner provided by law, a notice of completion of work required by this Contract within fifteen (15) calendar days after final inspection and approval of said rehabilitation work as fully completed by the City. 13. CONTRACTOR'S FEE/ COMPENSATION Owner agrees to pay Contractor for the full and complete performance of all of Contractor's covenants and responsibilities hereunder in accordance with Exhibit A in the amount of $38,220.00. Payment due Contractor shall be paid within thirty (30) calendar days after the City receives Contractor's invoice and satisfactory releases of liens or claims for liens by Contractor, subcontractors, laborers, and material suppliers for completed work or installed materials. Ten (10%) of such payment to Contractor shall be retained by City. The retention funds shall be released thirty-five (35) calendar days after final inspection and acceptance of all work to be performed by Contractor and Contractor has furnished the City, satisfactory releases of liens or claims for liens by Contractor, subcontractors, laborers, and material suppliers (Notice of Completion filed and recorded with the County Recorder). EXHIBIT 3 3 20B-12 16. CITY'S POWER TO TERMINATE Should Contractor commit any of the acts specified in this paragraph, City may, by giving ten (10) calendar days notice in writing thereof to Contractor, without prejudice to any other rights or remedies given City by law or by this Contract, terminate the services of Contractor under this Contract, take possession of all materials and appliances located on said real property, and complete the work required by this Contract. Contractor shall be deemed to have committed an act specified in this paragraph if it shall: (a) Be adjudged a bankrupt; (b) Make a general assignment for the benefit of its creditors; (c) Refuse or fail to supply enough properly skilled workers or proper materials to complete the work required by this Contract within the time specified in this Contract; (d) Fail to make prompt payment to subcontractors, laborers, or material men for labor performed or materials furnished to the work required by this Contract; (e) Persistently disregard any law or ordinance relating to the work required by this Contract or the completion thereof; or (f) Otherwise commit a substantial violation of any provision of this Contract. 17. RIGHTS ON TERMINATION BY CITY Should City terminate the services of Contractor under this Contract and complete the work pursuant without Contractor, Contractor shall not be entitled to receive any further payment under this Contract until the work is fully completed. On completion of said work by City, if the unpaid balance of the contract price exceeds the expenses incurred by City in completing the work, including any compensation paid by City for managerial, administrative, or supervisorial services in completing the work, such excess shall be promptly paid by City to Contractor. If, however, on completion of the work by City, the expenses incurred by City in completing said work, including any compensation by City for managerial, administrative, or supervisorial services in completing said work, exceed the unpaid balance of the contract price, such excess shall be promptly paid by Contractor to City. 18. CONTRACTOR'S POWER TO TERMINATE CONTRACT Should City fail to pay to Contractor within thirty (30) calendar days after such receipt of proper invoice, without just cause, any amount payable by City to Contractor, Contractor may, by giving fifteen (15) calendar days written notice thereof to City, terminate its services under this Contract and stop work on said Property. 19. LIQUIDATED DAMAGES Contractor and City agree that it would either be impractical or extremely difficult to fix actual damages in the event Contractor fails to complete the described work within the time prescribed by this Contract. In connection therewith, Contractor agrees to pay City liquidated damages for each calendar day beyond the date when completion is required hereinabove, excluding extensions as stated, below in the following amount: One Hundred Dollars ($100.00) per calendar day. The amount of liquidated damages shall be deducted from the Contractor's Retention Payment at project completion. If at any time the amount of liquidated damages exceed the amount of Retention Payment, there shall not be any payment to the Contractor until such time that the amount of payment due the Contractor exceeds the amount of liquidated damages. EXHIBIT 3 5 20B-13 20. ASSIGNMENT Contractor shall not assign any rights under this Contract except upon prior written authorization of City. Any request for assignment must be addressed to the City and written consent of the City must be obtained prior to Contractor assigning any rights under this Contract. Contractor shall not delegate any authority or responsibility that would in any way purport to relieve him of any obligation imposed by this Contract. 21. NONDISCRIMINATION. EQUAL OPPORTUNITY AND FAIR HOUSING During the performance of this Contract, Contractor agrees to comply with all applicable nondiscrimination, equal opportunity and fair housing and employment laws, and shall not discriminate in hiring on the basis of race, color, creed, religion, sex, disability, marital status, national origin or ancestry. 22. CONFLICT OF INTEREST No person who is an employee, agent, consultant, officer or elected official or appointed official of the Community Redevelopment City of the City of Santa Ana, or the City of Santa Ana, who exercises or has exercised any functions or responsibilities with respect to the City's residential rehabilitation program, or who is in a position to participate in a decision-making process or to gain inside information with regard to these activities, may obtain a financial interest or benefit from this Contract, or have an interest in any subcontract or agreement with respect hereto, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. 23. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 24. UNAVOIDABLE DELAYS AND DEFAULTS The time of completion of this Contract shall be extended by the number of calendar days which Contractor is prevented from performing work as a result of. inclement weather, acts of City not contemplated by this Contract, the unavailability of workers or materials due to strikes, accident, acts of God, fire, unusual delays in transportation, unavoidable casualties, causes beyond Contractor's control, or any cause which the City may determine justifies the delay. The Contractor shall not be entitled to an extension in the number of calendar days for completion, unless, within five (5) days from the beginning of such delay, he notifies the City in writing of the causes of the delay, which causes must be acceptable to the city. 25. JURISDICTION/VENUE This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be government and construed in accordance with the laws of the State of California. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall he EXHIBIT 3 6 20B-14 determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 26. ATTORNEY'S FEES Should any litigation be commenced between the parties to this Contract concerning the work which is the subject of this Contract, any provision of this Contract, or the rights and obligations of either in relation thereto, the party prevailing in the litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for the party's attorney's fees in the litigation. 27. TIME OF ESSENCE Time is of the essence in performance of this Contract. 28. GENDER AND NUMBER As used herein, the masculine shall include the feminine and masculine, and the singular shall include the plural. 29. EXCLUSIVITY OF CONTRACT This Contract supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to hiring of Contractor by City, and contains all the covenants and conditions between the parties with respect to employment of Contractor by City, and contains all the covenants and conditions between the parties with respect to such employment in any manner whatsoever. Each party to this Contract, acknowledges that no representations, inducements, promises, or agreement, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement or amendment to this Contract shall be effective only if executed in writing and signed by City and Contractor. 30. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. EXHIBIT 3 7 20B-15 IN WITNESS WHEREOF, the parties hereto have executed this Contract on the date and year first above written. ATTEST: CITY OF SANTA ANA Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: City Attorney By: Lisa E. Storck Assistant City Attorney EXHIBIT 3 David N. Ream City Manager CONTRACTOR Cardinal Environmental Consultants, Inc. By: Ronald R. McDaniel Title: President Tax ID# 33-0331820 8 20B-16