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HomeMy WebLinkAboutR22600A - Henderson Cmnty BldgPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE AWARD OF CONTRACT NO. R22600A TO STETON CONSTRUCTION GROUP FOR CONSTRUCTION OF THE HENDERSON COMMUNITY BUILDING SUBMITTED BY: MISSY WIGHTMAN, PROJECT COORDINATOR CONTRACTOR: STETON CONSTRUCTION GROUP 145 SOUTH STATE COLLEGE BLVD. SUITE 450 BREA, CA 92821-5818 DATE: JULY 13, 2006 CONTENTS: CONTRACT NO. R22600A Recommendation: By Minute Motion, that the Agency Board: (1) Authorize the award of Contract No. R22600A in the amount of $4,540,000 to Steton Construction Group for the construction of the new 5,800 square foot Henderson Community Building at the Entrada del Paseo site; (2) Approve appropriation of the remaining contract amount and contingency of $1,494,000 from unobligated Agency funds. The original budget for the Henderson Community Building has allocated $3,500,000 in Account No. 850-4358-433-4001 for the 2006-2007 fiscal year; and (3) Authorize the Finance Director to set aside the amount of $454,000 as 10% contingency (use of contingency requires additional action). Discussion: On 23 February 2006, the Agency Board authorized the City Clerk to advertise and call for bids for the construction of the new Henderson Community Building at the Entrada del Paseo site. The new 5,800 square foot building was designed by Patel Architecture and is slated to be our second Leadership in Energy and Environmental Design (LEED) certified building within the Redevelopment Agency. Staff Report Authorize award of Contract R22600A to Steton Construction Group for construction of the Henderson Community Building Page 2 of 2 July 13, 2006 The advertisement for bids was published in the Desert Sun and plans were distributed to three plan rooms in the Coachella Valley and Inland Empire. Four general contractors picked up plans and attended the mandatory pre -bid conference held on 11 May 2006, and one general contractor picked up plans and attended the mandatory pre - bid conference held on 15 June 2006. Bids were submitted by two contractors and were publicly opened and read on Tuesday, 20 June 2006. Low bid for the construction of the Henderson Community Building was submitted by Steton Construction Group of Brea, California, in the amount of $4,540,000. Staff has reviewed the bid, bid bond, and the documents required to be submitted at bid time and has found them to be in order. The following table summarizes the bid results. BIDDER Steton Construction Group Doug Wall Construction ADDRESS Brea, CA Bermuda Dunes, CA BID AMOUNT $4,540,000.00 $4,818,000.00 Both bids were greater than the engineer's estimate, which was approximately $2,500,000. However, both bids were within 7% of each other. A contractor who planned to bid, but did not have bonding capacity was contacted to find out an estimated bid amount. That amount was approximately $5,500,00 15% higher than both submitted bids, which indicates that two bids received reflect the true value of the work. Based on the bid results, staff recommends award to the lowest responsible bidder Steton Construction Group in the amount of $4,540,000. Construction of the work will start in early August and will be complete in the beginning of September 2007. Submitted by: OA�� Missy VIYTghtman Project Coordinator Approval: lopment rtegW,, Executive Director Department Head: ., � �,� � ": ��,e Dave Yngo�evelo Director ofpment/Housing Paul S. G#sn,' of Finance 4kOrOV �C BY RDA ON VERIFIED BY --4/) L*_ Original on file with City Clerk's Offi,� WRDA\Melissa WightmamHenderson Community Butlding\Staff Report -Award Construction.doc Contract No. R22600A SECTION 00500 AGREEMENT THIS AGREEMENT is made and entered into this 131' day of Jam, 2006, by and between Palm Desert Redevelopment Agency, California, hereafter called "OWNER," and Steton Construction Group hereinafter called "CONTRACTOR." W I T N E S S E T H RECITALS: CONTRACTOR has submitted to OWNER its CONTRACTOR's Proposal for the construction of OWNER's Project, Henderson Communitv Buildinq, PROJECT NO. 964-06, CONTRACT NO. R22600A in strict accordance with the Contract Documents identified below and OWNER has accepted said Proposal. 2. CONTRACTOR states that it has re-examined its CONTRACTOR's Proposal and found it to be correct, has ascertained that its subcontractors are properly licensed and possess the requisite skill and forces, has examined the site and Contract in accordance with the Contract Documents for the money set forth in its Proposal to be paid as provided in the Contract Documents. AGREEMENT: IT IS AGREED BY THE PARTIES AS FOLLOWS: 1. Contract Documents: The entire contract consists of the following: (a) The Notice Inviting Sealed Bids [Section 00200]; (b) The Instructions to Bidders [Section 00300]; (c) Bid [Section 00400]; (d) Bid Schedule [Section 00410]; (e) The Bid Guaranty Bond [Section 00420]; (f) Designation of Subcontractors [Section 00430]; (g) Schedule of Manufacturers and Suppliers, Major Equipment, and Material Items [Section 00440]; (h) Non - Collusion Affidavit [Section 00450], Certification of Bidder and Qualifications [Section 00470]; (i) The Agreement [Section 00500]; U) Liability and Insurance Requirements [Section 00600]; (k) Special Insurance Endorsement [Section 00610]; (I) The Faithful Performance Bond [Section 00620]; (m) The Payment Bond [Section 00640]; (n) The Supplementary Conditions; (o) the General Conditions; (o) Modifications to General Conditions [Section 00810]; (p) The Plans; (q) Addenda Nos. 1, 2, and 3; (r) The Determination of Prevailing Wage Rates for Public Work; (s) Any Change Orders issued, (t) Any additional or supplemental specifications, notices, instructions and drawings issued in accordance with the provisions of the Contract Documents. All of said Documents presently in existence are by this reference incorporated herein as if here set forth in full and upon the proper issuance of their documents they shall likewise be deemed incorporated. GARDAWELISSA WIGHTMANIHENDERSON COMMUNITY BUILDINGISTETON AGREEMENT.DOC Contract No. R22600A 2. CONTRACTOR shall commence the work within ten (10) calendar days after the date of the Notice to Proceed and will do all things necessary to construct the work generally described in Recital No. 1 in accordance with the Contract Documents and will complete said work within three -hundred -ninety-five (395) consecutive calendar days from the Notice to Proceed date to the satisfaction of the Owner's Representative. 3. That the CONTRACTOR agrees to indemnify, defend, and hold harmless the OWNER, and its officers, and employees, the ARCHITECT, Owner's Representative from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, material men, laborers, and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this Agreement. 4. Attention is directed to Section 00700-6.5, "Liquidated Damages" of the General Conditions. Liquidated damages shall be $ 1.500.00 dollars per calendar day of delay. 5. Should any litigation or arbitration be commenced between the parties concerning the works of improvements as referenced herein, the prevailing party in any such litigation, being the OWNER or the CONTRACTOR, should be entitled to a reasonable sum for attorney's fees and costs incurred in any such litigation relating to this Contract. 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 7. CONTRACTOR shall be paid in the manner set forth in the Contract Documents the amount of its proposal as accepted by OWNER, subject to such additions and deductions as may be made pursuant to the Contact Documents and applicable law. 8. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes CONTRACTOR's certification that he is aware of the provisions of said Code and will comply with them; and further constitutes CONTRACTOR's certification as follows: "I am aware of the provisions of Section 3700 of the California 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 that Code, and I will comply with such provisions before commencing the performance of the work of this contract." G:\RDA\MELISSA WIGHTMANIHENDERSON COMMUNITY BUILDINGISTETON AGREEMENT.DOC 2 Contract No. R22600A IN WITNESS WHEREOF the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement which shall be deemed an original on the date first above written. PALM DESERT REDEVELOPMENT AGENCY BY: Jim Ferguson, Chair Attest: Rachelle D. Klassen, Secretary Approved as to Form: Dave J. Erwin, City Attorney "CONTRACTOR" (signature to be notarized) BY: Attest: Title Title GARDAWELISSA WIGHTMAN\HENDERSON COMMUNITY BUILDINGISTETON AGREEMENT.DOC 3 CONTRACT NO. R22600A SECTION 00620 FAITHFUL PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS, THAT, WHEREAS, the Palm Desert Redevelopment Agency, hereinafter designated the "Owner," has, on July 13, 2006, awarded to Steton construction Group hereinafter designated as the "Principal," a Contract for the construction of Henderson Communitv Building, and WHEREAS, said Principal is required under the terms of said Contract to furnish a bond for the faithful performance of said Contract: NOW, THEREFORE, WE, the Principal, and as Surety, are held and firmly bound unto the Owner the penal sum of Four Million Five Hundred Fortv Thousand and NO/100 Dollars ($4,540,000.00), plus reasonable attorney fees and costs, lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal, it or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and faithfully perform the covenants, conditions, and agreements in the said contract and any alterations made as therein provided, on it or their part to be kept and performed, at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless, the Owner, its officers and agents as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue. It is acknowledged that the Contract provides for a one-year warranty period, during which time this bond remains in full force and effect. And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall, in any way, affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract or to the work or to the specifications. Said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California. Palm Desert Redevelopment Agency Faithful Performance Bond Henderson Community Building 1 Section 00620 CONTRACT NO. R22600A IN WITNESS WHEREOF, the above bounden parties have executed this instrument under their seals this day of , 2006, the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body. Principal (Seal) Signature for Principal Title of Signatory Surety (Seal) Signature for Surety Title of Signatory ****END OF SECTION *** Palm Desert Redevelopment Agency Henderson Community Building Faithful Performance Bond Section 00620 CONTRACT NO. R22600A SECTION 00630 PAYMENT BOND KNOW ALL PERSONS BY THESE PRESENTS, THAT, WHEREAS, the Palm Desert Redevelopment Agency, hereinafter designated as the "Owner," has, on July 13, 2006, awarded to Steton Construciton Group hereinafter designated as the "Principal," a Contract for the construction of Henderson Community Buildinq, and WHEREAS, said Principal is required to furnish a bond in connection and with said Contract, providing that if said Principal, or any of it or its subcontractors shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, the Surety of this bond will pay the same to the extent hereinafter set forth: NOW, THEREFORE, we, the Principal,and as Surety, are held and firmly bound unto the Owner the penal sum of Four Million Five Hundred Forth Thousand and NO/100 Dollars ($4.540,000.00) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, and successors jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Principal, it or its heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor thereon of any kind or for amount due under the Unemployment Insurance Act with respect to such work or labor, or for any amounts due, or to be withheld pursuant to Sections 18806 of the Revenue and Taxation Code of the State of California with respect to such work or labor, then said surety will pay the same in or to an amount not exceeding the amount hereinabove set forth, and also will pay in case suit is brought upon this bond, such reasonable attorney's fees to the Owner as shall be fixed by the court. This bond shall insure to the benefit of any and all persons, companies, and corporations named in Section 3181 of the Civil Code of the State of California so as to give a right of action to them or their assigns in any suit brought upon this bond. And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition of the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall, in any way, affect its obligations of this bond, and it does hereby waive notice of any change, extension of time, alteration, or addition to the terms of the contract or to the work or to the specifications. Said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California. Palm Desert Redevelopment Agency Faithful Performance Bond Henderson Community Building 3 Section 00620 CONTRACT NO. R22600A IN WITNESS WHEREOF, the above bounded parties have executed this instrument under their seals this day of , 2006, the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body. (Seal) (Seal) Principal Signature for Principal Title Surety Signature for Surety Title Palm Desert Redevelopment Agency Faithful Performance Bond Henderson Community Building 4 Section 00620