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Home My WebLink About08-16-2016 Electricraft Inc AgreementCITY OF SAN LUIS OBISPO CALIFORNIA AGREEMENT THIS AGREEMENT, made on this 16th day of ALIgust. 2016, by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the Owner) and ELECTRICRAFT, INC. (hereinafter called the Contractor). WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of MEADOW PARK LIGHTING REPLACEMENT Specification No. 91323 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows: Item Item Unit of Estimated Item Price Total No. Ssm Description Measure Quantity in figures) (immures_ 1 86 Pathway Fixture Replacement, EA 3 $6,066.00 $18,198.00 Locations 1-4-9 2 86 Pathway Fixture Replacement, EA 4 $5,727.00 $22,908.00 Locations 2-3-5-13 Pathway Fixture Replacement, 1 $7,988.00 3 86 EA $7,988.00 Location 12 4 86 Volleyball Courts Pole EA 2 $4,500.00 $9,000.00 Replacement, Locations 7-8 5 86 Basketball Court Pole EA 2 $4,775.00 $9,550.00 Replacement, Locations 6-10 6 86 Horseshoe Pit Pole EA 1 $6,324.00 $6,324.00 Replacement, Location 11 BID TOTAL: $73,968.40 Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract. Should any dispute arise respecting the true value of any work omitted, or of any extra work which the Contractor may be required to do, or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and conclusive. ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached: 1. Notice to Bidders and information for bidders. 2. Standard Specifications, Engineering Standards, Special Provisions, and any Addenda. 3. Plans. 4. Caltrans Standard Specifications and Standard Plans 2010. 5. Accepted Bid. 6. List of Subcontractors. 7. Public Contract Code Section 10285.1 Statement. 8. Public Contract Code Section 10162 Questionnaire. 9. Public Contract Code Section 10232 Statement. 10. Labor Code Section 1725.5 Statements. 11. Bidder Acknowledgements. 12. Qualifications. 13. Attach Bidders Bond to Accompany Bid. 14. Non -collusion Declaration. 15. Agreement and Bonds. 16. Insurance Requirements and Forms. ARTICLE IV INDEMNIFICATION: Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. In the event of conflict with any other indemnification or hold harmless provisions of this Agreement, the provision that provides the most protection to the City shall apply. ARTICLE V. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. ATTEST: %_AAA,k_ City Clerk APPROVED AS TO FORM' J. Chr ne Dietrick City orney CITY OF SAN LUIS OBISPO A Municipal Corporation By: (1, :�� A&t,� J Howell Marx Y Mayor CONTRACTOR: Electricraft, Inc. By: J W. Treder (We s) I resident /CEO 0 d Council - • - • • Meeting Date: 8/16/2016 FROM: Daryl Grigsby, Director of Public Works Prepared By: Michael J. McGuire, Senior Civil Engineer SUBJECT: MEADOW PARK LIGHTING REPLACEMENT RECOMMENDATION 1. Award a contract to Electricraft, Inc. in the amount of $81,726 for the "Meadow Park Lighting Replacement, Specification No. 91323"; and 2. Approve the transfer of $22,500 from the CIP Completed Projects Account to the project construction account. DISCUSSION On July 14, 2016, bids were opened for the Meadow Park Lighting Replacement project. Of the five bids received, only one bid was under the Engineer's Estimate of $53,000 (Table 1). The bid from Inter -Pacific, Inc. of Tustin, California at $46,500, was the apparent low bid. Table 1 Engineer'sI Inter -Pacific Electricraft Newton Rossi & Carr Lee Wilson Estimate Inc. Inc. Construction Electrical Inc. Electric Co. $53,000 j $46,500 $73,968 $81,000 $86,400 $101,400 However, Inter -Pacific failed to accompany their bid package with a required bidder's bond or check equal to ten percent of the bid amount as a guaranty. This lack of guaranty renders their bid as non-responsive and staff cannot recommend award to Inter -Pacific. The next apparent low bid was from Electricraft, Inc. of San Luis Obispo in the amount of $73,968. While this is more than $20,000 over the Engineer's Estimate, staff recommends approval to award a contract for this amount. Staff believes that there are several reasons for the difference between the lowest responsive bid and the Engineer's Estimate. In the time since this CIP project was funded in the 2013-15 Financial Plan, the economy has improved and building construction has markedly increased. In addition, based on staffs experience with project bidding, it appears that Inter -Pacific either thought they could build the project for their bid price, or missed some information in the plans, or may have been attempting to buy the project. There is no way to tell, but this type of spread between the low bid and next bid grouping is a Packet Pg. 222 Along with the increase to fully fund the construction contract amount, additional funds are necessary to maintain a 10% construction contingency amount for unforeseen conditions. ALTERNATIVES Deny approval to award. The City Council could choose to deny or defer the approval to award this project. Staff does not recommend this option. Should this be denied or deferred, the much- needed lighting and pole replacements will not occur. Construction, material and labor costs will continue to rise and additional funds will be required. Attachments: a - Bid Summary b - Copy of Original CMR c - Agreement Packet Pg. 224