HomeMy WebLinkAbout01 Notice of AwardPublic Utilities
879 Morro Street, San Lois Obispo, CA 93401-2710
805.781,7215
YIocliy'.Ulq
July 30, 2019
PCL Construction, Inc.
3750 Schaufele Avenue, Suite 270
Long Beach, CA 90808
Attention: Mike McKinney
Sent via Email
Subject: Notice of Award -Water Resource Recovery Facility Project (Project No. 91219)
Dear Mr. McKinney,
The City of San Luis Obispo Utilities Department (City) has considered the Bid submitted by PCL
Construction, Inc. (PCL) on May 20, 2019 for the Water Resource Recovery Facility Project
(Project) in response to the Invitation to Bid and Instructions to Bidders issued on March 13,
2019.
You are hereby notified that PCL's Bid has been accepted in the lump sum amount of one
hundred ten million, eight hundred fifty-six thousand, twenty-four dollars and seventy-seven
cents ($110,856,024.77). The award amount corresponds to the Base Bid ($110,581,024.77) and
the Additive Alternate Bid Item for Builder's Risk Insurance Covering Acts of God for up to one
hundred million dollars of Project replacement costs (Bid Item No. 17 - $275,000).
The City has reviewed PCL's Performance Bond, Payment Bond, Letters of Assent and certificates
of insurance received by the City on July 15, 2019. The following issues/clarifications must be
addressed prior to execution of the Agreement by the City:
■ Supplementary Condition SC-6.03.0 (1) requires General Liability coverage to be
submitted on Form CG 0001. This form was not included and must be provided by PCL.
• Supplementary Condition SC-6.03.D.2.a requires Automobile Liability coverage limit of
not less than $5 million per accident for bodily injury and property damage. The
certificate of insurance (COI) reflects a $2 million combined single limit. Please increase
this coverage or indicate how the required coverage will be provided.
The Excess/Umbrella Liability Policy described in Supplementary Condition SC-6.03.D.3
appears to address the Contract requirements; however, subsection d) notes policies
shall "follow form" to the primary policies and the City requests that form CG 0001 be
provided as noted above:'
• Supplementary Condition SC-6.03.D.8.s requires declaration of deductibles and self -
insured retentions (SIRS) with the Owner's option to reduce, eliminate, or require a
bond guaranteeing payment of losses if needed. Please clarify the SIR amount of
$500,000 on the Pollution Liability Insurance policy and how it relates to the $25,000 SIR
specified for "Env Contr. Prof" on Certificate No. 570077359953,
Mr. Mike McKinney
Page 2
July 30, 2019
■ Addendum No. 09 revised the Supplementary Conditions and Bid Form to include an
Additive Alternative Bid Item No. 17 a bid for Builder's Risk Covering Acts of God for up
to $100 million dollars of Project replacement costs. Section 5.5.3 of the Bid Form (as
revised in Addendum No. 09) requires that PCL provide proof of the contractor's cost to
purchase this insurance with no markups. This documentation must be submitted, as
the City wishes to include the cost of this coverage in the Contract award amount.
Please also submit a complete copy of the insurance documentation for the Builder's
Risk policy with Acts of God Coverage.
• Several endorsements appear to be missing policy numbers and other relevant
information. Please provide revised endorsements, with all fields populated.
■ PCL must provide a copy of a completed declaration page including the list of additional
insured, etc. The endorsements refer to this form, but it was not provided.
■ PCL must provide the actual additional insured document (not solely the Acord form).
• PCL must provide a waiver of subrogation for the Workers' Compensation policy.
■ Please clarify how acts of terrorism, vandalism and/or theft is covered.
■ The City requests that the bonds be amended to include the following: "Each Surety is
jointly and severally liable under this bond to the extent of the amount of liability under
this bond." The City also requests that one surety agree to be the primary surety in
charge should the City need to enforce the bonds.
• Please provide a Letter of Assent for Bannon Construction.
Please sign and return a copy of this Notice of Award to the City along with your revised bonds and
insurance. The City appreciates your prompt attention to these outstanding issues.
Sincerely,
Miguel Barcenas, P.E.
Project Manager
ACCEPTANCE OF NOTICE
Receip oft e a ov otice f A and is hereby acknowledged by:
Richard Hewia
Operation Manager
k Authorized Signer
Signature
Title
Richard Hewitt
Opentiooa Manager
& Anthorized Signer B"q" � i
Name (Printed) Date
G:\Projects\360701 W RRFUpgrade\6-Correspondence\Sent\2019-07d0_PCL Notice of Award.docx