16-0517_NU-LINE TECHNOLOGIES LLC_Agenda Report_F16City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: .ffi"Siegel, City Manager
SUBMITTED BY: Steve May, Public Works & Utilities Ouector)
Ken Al-f mam, Interim Director sf lii¿nç¿ fi,ê.
PREPARED BY: Mike Marquis, P.E., Associate Civil Engin"", |tÅî(
DATE: May 17,2016
SUBJECT:
5t17t2016
F16
Consideration of an Amendment to the Construction Agreement for
the Annual Sewer Rehabilitation Program and an Adjustment to the
Annual Sewer Rehabilitation Program for fiscal Year 2014-2015
(ClP 15701) (Nu-Line Technologies LLC)
RECOMMENDATION
By motion:
1. Approve Change Order No. 2 and First Amendment to the Construction
Agreement for the Annual Sewer Rehabilitation Program with Nu-Line
Technologies, LLC, to add $210,262.40; and
2. Approve an adjustment to reduce funding for the Annual Sewer Rehabilitation
Program (ClP 16701) for 2015-2016 by $t50,000 from $450,000 to $300,000;
and
3. Approve an appropriation to increase funding for the Annual Sewer
Rehabilitation Program (ClP 15701) for 2014-2015 by $t 50,000 from $1 ,555,525
(including carryovers) to $1 ,705,525.
EXECUTIVE SUMMARY
The Construction Contract that was awarded to Nu-Line Technologies, LLC, for
construction of the annual sewer rehabilitation program in June 2015 needs to be
amended for additional work that was performed by the contractor. The original contract
amount was $1 ,181 ,467 , and the additional work performed amounted to $317,669. The
details of the extra costs are presented in the table on page 2 of this report. The
majority of the extra costs included roughly $68,000 for additional length of lining and
approximately $228,000 for extensive cleaning and debris removal, the need for both of
which was discovered during the course of this project. The additional work was
necessary and the costs for the additional work were verified by detailed accounting of
the additional quantities of work and contractor resources allocated to the additional
City Council Agenda Report
May 17,2016
Page 2 of 3
work. Staff recommends that the City Council approve change order no. 2 and the
contract amendment, and that the funds to cover the costs beyond the current project
budget be transferred from the current year's Sewer Rehabilitation Program.
DISCUSSION/ANALYSIS:
During the course of work on the Annual Sewer Rehabilitation Project, on-going closed
circuit television inspection of the City's sewer collection system was being done by the
City's vendor, Municipal Underground Services, lnc. These inspections revealed several
additional sewer line segments that were deficient and in urgent need of rehabilitation.
As the Rehabilitation Project contractor was mobilized and performing similar work in
the city, the needed work was added to the Project. ln addition, in the course of
performing contract work on the City's 21 inch trunk line, with a flow bypass running to
divert flow, the contractor discovered heavy debris and flow obstruction that had to be
removed and that could not have been ascertained from the City's existing closed circuit
television video inspection. Also, a few severe joint offsets were identified in the course
of work that required a dig-and-replace repair before lining could occur. Lastly, other
miscellaneous issues discovered during construction required effort by the contractor
outside the scope identified in the Construction Agreement. Work deleted or added to
the contract is tabulated in the following table.
Table of Additional or Deleted Work ltems
The construction contract already includes a contingency amount of $107,406.10 that,
when subtracted from the cost of extra work, results in the need for a contract
amendment in the amount of $210,262.40. Staff recommends that the City Council
approve the First Amendment to the Construction Agreement with Nu-Line
Technologies LLC in the amount of $210,262.40. The funds to cover this additional cost
are available in this year's Annual Sewer Rehabilitation Program budget as explained
further in the following Fiscal lmpact section.
Remove/Add Work Description :Rem/Add Work Gost:
Remove Bid ltems 8, 14 and 15 $ (39,953.00)
Add Sewer Lininq & Diq and Replace Work Tovon Drive $ 58,280.74
Add Sewer Lininq and Repair defective Saddles Admirality Court $ 9,916.24
Add Lateral Connection Repair (9 Locations)$ 13,500.00
Add CIPP Lining in Sewer easement at end of Paseo Activo $ 11.744.79
Add Dig and Replace work Camino Capistrano $ 13,522.50
Add Heavv Cleaninq and Debris Removal 21" Sewer Trunk Line $228,631.54
Add Reconnection of discovered overflow piping at La Matanza $ 1,086.65
Add Two Way Cleanout at Arquello Way s 7.764.04
Add CIPP Liner at Spring Street Storm Drain $ 13.175.00
Total Cost for Extra Work (less deleted work)$317,668.50
City Council Agenda Report
May 17,2016
Page 3 of 3
FISCAL IMPACT:
The Annual Sewer Rehabilitation Program for Fiscal Year 2014-2015 is projected to
have an unexpended balance of $60,500 that can be used to cover a portion of this
$210,262 project shortfall. The remaining $1 49,762 is available in the Annual Sewer
Rehabilitation Program for Fiscal Year 2015-2016 (ClP 16701). lt is recommended that
the City Council reduce the Fiscal Year 2015-2016 budget for the Annual Sewer
Rehabilitation Program (ClP 16701) by approximately $150,000 to provide sufficient
funding for this project.
ENVIRONMENTAL IMPACT
On April 3,2015, a Notice of Exemption for the Annual Sewer Rehabilitation Program,
CIP 15701 was filed with the County Clerk stating that the project constitutes a
Categorical Exemption per Class 1, Section 15301(b) Existing Facilities and Class 2,
Section 15302(c) Replacement or Reconstruction in accordance with Section 15061 of
the California Environmental Quality Act (CEQA) guidelines.
PRIOR CITY COUNCIL REVIEW
On June 2, 2015 City Council approved a Construction Agreement with Nu-Line
Technologies LLC in the amount of $1,181 ,467.10 and a Professional Services
Agreement with Dudek in the amount of $210,000 for construction management &
inspection services for the annual sewer rehabilitation program, CIP 15701.
NOTIFICATION
Nu-Line Technologies LLC
ATTACHMENT(S):
Attachment 1 - Construction Agreement with Nu-Line Technologies, LLC
Attachment 2 - First Amendment to the Construction Agreement with Nu-Line
Technologies, LLC, for the Annual Sewer Rehabilitation Program, CIP
15701.
Attachment 3 - Change Order No. 2 to the Construction Contract with Nu-Line
Technologies, LLC, for the Annual Sewer Rehabilitation Program, CIP
15701.
CONSTRUCTION AGREEMENT
,/- THIS CONTRACT is made and entered into, to be effective, thisáX-Jday of
' \JPç2015, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafier
referred to as "City," and Nu-Line Technologies LLC, hereinafter referred to as
"Contractor."
City and Contractor mutually agree as follows:
Section 1. General Conditions.
Contractor certifies and agrees that all the ternrs, conditions and obligations of
the Contract Documents as hereinafter defined, the location of the job site, and the
conditions under which tlre work is to be performed lrave been thoroughly reviewed, and
enters into this Contract based upon Contractor's investigation of all such matters and is
in no way relying upon any opinions or representations of City. lt is agreed that lhis
Contract represents the entire agreement between the parties. lt is further agreed that
the Contract Documents including the latest edition of the Standard Specifications for
Public Works Construction, Nolice lnvìting Bids, Special lnstructions to Bidders, if any,
and Contractor's Proposal are incorporated in this Contract by reference, with the same
force and effect as if the same were set forth at length lrerein, and that Contractor and
its subcontractors, if any, will be and are bound by any and all of said Contract
Documents insofar as tlrey relate in any part or in any way, directly or indirectly, to the
work covered by this Contract.
"Project" as used herein defines the entire scope of the work covered by all the
Contract Documents. Anything mentioned in the Specifications and not indicated in the
Plans, or indicated in the Plans and not mentioned in the Specifications, slrall be of like
effect as if indicated and mentioned in both. ln case of discrepancy in the Plans or
Specifications, the malter shall be immediately subrnitted to City's Engineer, withoul
wlrose decision Contractor shall not adjust said discrepancy save only at Contractor's
CIÌ Y OT SAN JUAN CAFISI IìANO
ANNUAL SEf/ER REHABII,I]ATION PROGRAh,I, CIP I57OI ^Gfìf:
Fl','lE Nl
B'1
Attachment I
ou,n rlsk and expense. The decision of the Engineer shall be final.
Section 2. Materlals and Labor.
Contractor shall fumish, under the conditions expressed in the Plans and
Specifications, at Cont¡acto/s own expense, all labor and materials necessary, except
such as are mentioned in the Specifications to be fumished by the City, to construct and
complete the Project, in good workmanllke and substantial order. lf Contractor falls to
pay for labor or materials when due, City may settle such claims by making demand
upon the surety to this Contract. ln the event of the failure or refusal of the surety to
satisfy said claims, City may settle them directly and deduct the amount of payments
from the Contract price and any amounts due to Gontractor. ln the event Clty receives
a stop notlce from any laborer or material supplier alleging non-payment by Contractor,
City shall be entitled to deduct all of its costs and expenses incuned relating thereto,
including but not limited to administrative and legalfees.
Section 3. Descriotion of Prolect.
The Project ls described as:
as delineated on the Contract Documents prepared by the City of San Juan Capistrano,
dated April 2015. Work to include: the constructlon of Sanitary Sewer and Storm Drain
Cured-ln-Place Pipe, Manhole Rehabilitation and all appurtenant work.
Section 4. Plans and Specifications.
The work to be done is shown in a set of detailed Plans and Specifications
entitled: Annual Sewer Rehabilltration Program (ClP 157011. The plans are located in
the Specificatlons as Appendix F - Contract Exhlbits.
CffY OF SAN JUAT{ CAPISTRANO
AI,INUAL SEWER REIIABILITATK'N PROORAM, CIP 1 5701
AGREEMENT
8-2
Sald Plans and Speclflcatlons and any revisions, amendments or addenda
thereto are att¡ached hereto and incorporated herein as part of this Contract and refened
to by reference.
Sectlon 5. Time of Commencement and Comoletion.
Contractor agrees to commence the Project within ten (10) calendar days frorn
the date set forth in the oNotice to Proceed" sent by City and shall diligently prosecule
the work to completion within one hundred twenty (12O, working days fom the date of
the "Notice to Proceed" issued by the Clty excluding delays caused or authorlzed by the
Gity as set forth ln Sections 7, I and t hereof.
Section 6. Time is of the Essence.
Time is of the essence of this Gontrac't. As required by the Contracl Documents,
Contnactor shall prepare and obtain approvalof all shop drawings, details and samples,
and do allother things neoessary end incidental to the prosecution of Contractods work
in conformance with an approved construction progress schedule. Contractor shall
coordlnate the work covered by this Contract wlth that of all other Contractors,
subcontractors and of the Clty, in a manner that will facilitate the efücient completion of
the entire work in accordance with Seclion 5 herein. City shall have æmplete control of
lhe premises on whlch the uork is to be performed and shall have the right to decide the
time or order in which the various portions of the work shall be installed or the prlority of
the work of other subcontractors, and, in general, all matters representing the timely and
orderly conduct of the work of Contractor on the premises.
Seclion 7. Excusable Delavs.
Contractor shall be excused for any delay in the prosecution or completion of the
Project caused by acts of God; indement weather u/h¡ch exceeds the number of
calendar days estlmated by the Clty and setforth in Seclion 5 hereof; damages caused
CITY OF SAN JUAN CAPISTRANO
ANNUAL SEWER REHABITITATION PROGRAM, CIP 15701
AGREEMENT
8.3
by fire or other casualty for whlch Contractor is not responsible; any act, neglect or
default of Citf failure of City to make timely payments to Contractor; late delivery of
materials required by this Contract to be fum¡shed by City; combined aclion of the
workers in no way caused by or resulting from default or collusion on the part of
Contractori a lockout by City; or any other delays unforeseen by Contractor and beyond
Cont¡acto/s reasonable control.
Gl$ shall extend the time fixed in Section 5 for completion of the Project by the
number of days Conüactor has thus been delayed, provided that Contractor presenls a
written request to City for such time extension wlthln fifteen (15) days of the
commencement of suú delay and City finds that he delay is justified. City's decision
will be conclusive on the parties to this Contract. Failure to file such request within lhe
time allowed shall be deemed a waiver of lhe clalm by Gontractor.
No claims by Contractor for additional compensation or damages for delays will
be allowed unless Contractor satisfles City that sudr delays were unavoidable and not
the result of any action or inaction of Contractor and that Contractor took all avaihble
measures to mitigate such damages. Claims will be handled ln accordance with
Section 10-05 of the General Conditions. The City's decision will be conclusive on all
parties to this Contract.
S_ection 8. Extra Work.
The Conhact price includes compensation for all work performed by Contractor,
unless Contractor obtains a written change order slgned by a designated representative
of CiÇ specifying the exact nature of the extra work and the amount of extna
compensallon to be pald all as more particularly set forth ln Sectlon I hereof.
City shall extend the time fixed in Section 5 for completion of the Project by the
number of dap reasonably reguired for Contractor to perform the extra uork, as
determined by City's Engineer. The decision of the Engineer shall be final.
CIIYOF SAT.¡ JUAN CAPISTRAI'IO
ANNUAT SEWER REHA$LÍTANON PROGRAM, CIP 15701
AGREEMENT
B-4
Section 9. Chanoes in Proiect.
A. Ci$ may at any time, wíthout notice to any surety, by written order
designated or indicated to be a change order, make any change in the work within the
generalsoope of the Contract, including but not llmlted to changes:
1) in the Specillcations (lncluding drawings and designs);
2l in the tlme, method or manner of performance of the work;
3) in the City-fumished facilities, equipment, materials, services or
site: or
4) directing acceleration in the performance of the work.
B. A change order shall also be any other written order (including direction,
instruction, interpretation or determlnation) from the City which causes any change,
provided Contractor gives the City written notice stating the date, circumstances and
souroe of the oder and that Contractor regards the order as a change order.
C. Except as provlded ln this Sec'tion 9, no order, statement or conduct of the
City or its representatives shall be treated as a change under thls Sectlon 9 or entitle
Contractor to an equitable adjustment.
D. lf any change under this Section g causes an increase or decrease ln
Contracto/s actual, direct cost or the time required to perform any part of the work
under this Contract, whelher or not changed by any order, the City shall make an
equitable adjustment and modifr the Gontract in writing. Except for claims based on
defective specificationq no claim for any change under paragraph (B) above shall be
allowed for any costs incuned more than twenty (20) days before the Contractor gives
unitten nolice as required in paragraph (B). ln the case of defective speclfications for
wh¡ch the City is responsible, the equitable adjustment shall include any increased
direc.t cost Contractor reasonably incuned in attempting to comply with those defec-tive
specifications.
CITY OF SAN JUAN CAPISTRANC)
ANNUAL SEWER REI{ABILÍTATION PROGRAM, CIP 15701
AGREEMENT
8.5
E. lf Contraotor intends to assert a clalm for an equitable adjustment under
thls Section 9, it must, within th¡rty (30) days after receipt of a wrÍtten drange order
under paragraph (A) or the fumishing of a written notice under paragraph (B), submit a
written statement to the City setting forth the general nature and monetiary extent of
such claim. The Clty may extend the thirty (30) day period, Gontractor may include ûre
statement of claim in the notice under paragraph (B) of thls Sectlon 9.
F. No claim by Gontractor for an equltrable adJustment shall be allowed if
made afrerfinal payment under this Agreement.
G. Contractor hereby agrees to make any and all changes, furnlsh the
materials and perform the work that City may require without nullifying this Gontract.
Contractor shall adhere strlctly to the Plans and Speclflcations, unless a change
lherefrom is authorized in writing by the Gity. Under no condition shall Contractor make
any changes to the ProJect, elther ln addltlons or deductlons, wlthoul lhe written order of
the City and the City shall not pay for any extra charges made by Contractor that have
not been agreed upon in advance in writing by the City. Gontrac{or shall submit
immediately to the Clty written copies of its firm's cost or credit proposal for change ln
the work. Disputed work shall be performed as ordered in writing by the Ci$ and the
proper cost or credit breakdowns therefore shall be submitted without delay by
Contractorto City.
Sectlon 10. Liouldated Damaoes for Delav.
The parties agree that if lhe total woft called for under this Contract, ln all parts
and requirements, is not completed within the time speclfied ln Section 5 plus the
allorrance made for delays or extensions authorized under Sectlons 7, I and 9, the City
will sustain damage, which r¡rould be extremely difficult and impracticable to ascertain.
The parties therefore agree that Contractor will pay to Cl$ the sum of Five Hundred
Dollars and No Cents ($500.00) per day, as liquidated damages, and not as a penalty,
for each and every calendar day during $rtìich cornpletion of the Project is so delayed.
C]TYOF SAN JUA¡,{ CAPISTRANO AGREEMENT
AI.INUAL SEWER REHABITÍTANON PROGRAM, CIP 1570I B.ô
Contnactor agrees to pay such liquldated damages and further agrees that City
may offset the amount of liquidated damages from any monies due or that may become
due Contractor under üris Contract.
Section 11. Contract Pdcegq{llglh.od of Pavment.
City agrees to pay and Gontractor agrees to aocept as full oonsideration for the
faithful performance of this Gonlract, subject to any subsequent addltlons or deductions
as provided in approved change orders, the sum of one million seventy four thousand
sixty one dollars and no cents ($1,074,061.00) plus a 1Ùo/o contingency amount of
$107,406.10 for a not to exceed total amount of $1,181,467.10. The Contract amount
of $1,074,061.00 is cunently available as itemized on the att¡ached Exhibit ''A," and
descrlbed as the Bid Schedule. The contlngency amount of S107,406.10 is for City
approved change orders only in accordance with the City's purchasing policy.
Wlthin thirty (30) days from the commencement of work, there shall be pald to
the Contractor a sum equal to ninety percent (957o) of the value of the actual work
completed plus a like percentrage of the value of material suitably stored at the worksite,
treatment plant or approved storage yards subject to or under lhe control of the City,
since the æmmencement of the work as determined by the City. Thereafter, on a
schedule issued by lhe City at the commencement of the job wtrich shows a minimum of
one payment made to the Contraotor per month for eadr successive month as the work
progresses and the request for payment due dates from the Contractor to meet the
payment schedule, üre Contractor shall be paid such sum as will bring the total
payments received since the commencement of the work up to ninety percent (950/o) of
lhe value of the work completed slnce the commencement of r,rork as determlned by the
City, less all previous payments, provided that the Contractor submils the request for
paynent prior to the end of the day required to meet the payment schedule. The City
wlll retain five percent (5olo) of the amount of each such progress estimate and material
cost untllthe Flnal Payment.
CITY OF gAiTJUAN CAPISTRAI.¡O
ANNUAL SEIâ'ER R€}IABILÍTATION PROGRAM. CP T5701
AGREEMENT
Ê-7
Payments shall be made on demands drawn ln the manner required by law,
accompanied by a certificate slgned by the C¡ty's Engineer, stating that the work for
rnh¡ch payment ls demanded has been performed in accordance with the tenns of the
Contract, and that the amount stated in the certificate is due under the terms of the
Contract. Partial payments on the Contract price shall not be considered as an
acceplance of any part of the vrork.
Sec-tion 12. Substitution of Securities in Lieu of Retgntion of Funds.
Pursuant to Public Contract Code Section 22300 et seq., the Contractor will be
entitled to post approved securitles wlth the Clty or an approved financial institution in
order to have the City release funds retained by the Cig to insure performance of the
Contract. Contractor shall be required lo execute an addendum to this Contract
together with esorow instructions and any other documents in order to efiect this
substitution.
Section 13. Completion.
Wlürln ten (10) days afrer the contract complelion date of the Project, Contractor
shall llle with the Cig's Engineer its affìdavit stating that all workers and persons
employed, all flrms suppl$ng materlals, and all subcontractors upon the Project have
been paid in full, and that there are no clalms outstanding against the Proiect for either
labor or materlal, except those certain items, if any, to be set forth in an affidavit
covering dlsputed clalms, or items in connec.tion with Stop Notlces wtrich have been
filed under the provisions of the statutes of the State of Callfomla. City may require
affidavits or certiffcates of payment and/or releases from any subcontrac.tor, laborer or
material suppller.
Section 14. Contracto/s EmoloveeE' Comoensation.
A. General Prevalllno Rate:
City has ascertained from the State of Callfomla Dlrector of Industrial Relations
the general prevailing rate of per diem wages and the general prevailing rate for legal
CITY OF SAN JUAI{ CAPISTRAilO AGREEMENT
ANNUAI SEWER REHABILITATION PROGRAM, CIP 15701 8€
holiday and overtime work in the locality in which the work is to be performed for each
crafr or type of vrork needed to execute this Contract, and copies of the same are on file
in the Office of the Engineer of City. The Contractor agrees that not less than said
prevailing rates shall be paid to vrcrkers employed on thls public works contract as
required by Labor Gode Section 1774 of the State of Califomia.
C. FoÉelture For Vlolation:
Contractor shall, as a penalty to the City, forfeit a sum of not more lhan Two
Hundred Dollars ($200.00) for each calendar day or portion thereof for each worker paid
(either by lhe Contractor or any subcontraclor under it) less than the prevailing wage
rates as determined by the Dlrector of lndustrial Relations for the work or craft in which
the worker is employed. The amount of the penalty shall be determined by the labor
commlssloner and the difference between the prevalling wage rates and the amount
paid to each workerfor each calendar day or portion thereof for wlrich eac{r worker wes
paid less than the prerrailing wage rate shall be paid to each worker by the contractor or
subcontractor, all ln accordance with Section 1775 of the Labor Code of the State of
Calffomia.
D. T|?.y.eland Subslstence Pav:
Section 1773.8 of the Labor Gode of the State of Callfomia, regarding the
payment of travel and subsistence payments, is applicable to this Conhact and
Gonlractor shall comply therewith.
E. Aoorentlces:
Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of Califomia,
regarding the employment of apprentices, is applicable to this Contract and the
Contractor shall comply therewlth lf the prime contract, or a contract of a specialty
C]ÍTV OF SAII JUA¡I CAPISTRANO
AIINUAI SEI^rER RE}|¡ABILÍTATION PROGRAM. CIP 15701
AGRÊEMENT
B.g
contraotor not blddlng for work through a general or prime contractor, lnvolves Thlrty
Thousand Dollars ($30,000.00) or more.
F. Workday:
ln the performance of this Contract, not more than elght (8) hours shall constitute
a day's work, and Contractor shall not requlre more than elght (8) hours of labor in a day
from any person employed by him hereunder except as provided in paragraph (B)
above. Gontractor shall conform to Artlcle 3, Chapter 1, Part 7 (Sections 1810 et seq.l
of the Labor Code of the State of Galifomla and shall forfeit to the City as a penalty, the
sum of Twenty-five Dollars ($25.00) for each worker employed in the execr¡tion of this
Contract by Contraotor or any subcontractor for each calendar day during wtrich any
worker ls required or permitted to labor more than eight (8) hours ln any one calendar
day and forty (40) hours ln any one week in violation of said Article. Contractor shall
keep an accurate rccord showing the name and aotual hours r¡rorked each calendar day
and each calendar week by each worker employed by Contractor in connection with the
Proiec't.
G. Record of Waoes: lnsoectlon:
Contractor agrees to malntaln acourate payroll records showing the name,
address, social security number, work classification, straight-time and overtime hours
norked each day and week, and the actual per diem wages paid to each joumeyman,
apprentice, worker or other employee employed by it in connection with the Project and
agrees to require that eadr of its subcontractors does the seme. All payroll records
shall be certified as accurate by lhe applicable Contractor or subcontractor or its agent
havlng authority over such matterc.
CITY OF SAN JUAN CANSTRA¡\ü)
ANNUAT SEWER RE}IABIITTATION PROGRAM. CIP 1570I
AGREEMENT
8.10
ln accordance with Labor Code section 1771.4, Contractor and each
subcontractor shall fumish the certified payroll recods dlrectly to the Department of
lndustrial Relations fDlR") on a weekly basis and in the format prescribed by the DlR,
wtrich may inolude electronic submlsslon. Contractor shall comply with all requirements
and regulations from the DIR relating to labor compliance monitodng and enforcement.
Certified payroll records of the contractor and subcontractor shall also be
avallable to the employee or employee's representiative, the Division of Labor Standards
Enforcement, and the Division of Apprenticeship Standards and shall comply with all of
the provisions of Labor Code Section 1776,|n general.
Section.15. Suretv Bonds.
A) Contractor shall guarantee Contracto/s performance of this Agreement by
providing CITY with the following security instruments (the "Security
Instruments") on forms approved by CITY for the purposes and in the amounts
as follows:
a. A 'Faithful Perfornance Bond" to ensure falthful performance of this
Agreement ln regard to the Project in the amount of 1007o of the estimated
cost of the Project; and
b. A "Labor and Materials Bond' to secure payment to any contractor,
subcontractor, persons renting equipment or fumishing labor or materials
for the Project requlred to be constructed or installed pursuant to this
Agreement ln the addltlonal amount of 1007o of the estimated cost of the
ProJect.
c. ln lleu of provldlng the bonds described/requlred above, Contractor may
substitute a'Letter of Credit" in a fom acceptable to CITY.
B) ln order to guarantee and wanang the completed Project, and in additlon to he
Security lnstruments referenced in Paragraph 4(A) above, Conûactor shall
provlde to Clty the followlng Securi$ lnstruments:
a. A 1Â/arranty Bond'for the work wananting the accepted work for a period
of one(1) year following said acceptance against any defective work or
labor done or defectlve materialfumished. The amount of such Wananty
Bond for the Proiec't shall be equal to twenty-five percent (250'/o) of the
estimated construction cost of the ProJect.
CIWOF SAN JUAN CAPISTRANO
ANNUAL SEWER RE}IABILITATION PROGRAM, CIP 15701
AGREEMENT
8.fi
b. ln lieu of the Wananty Bond, Contnaotor may substitute a 'Letter of Credit"
in a form acceptable to the City (said Letter of Credlt having an equivalent
value as the Warran$ Bond).
C) All Security lnstruments required by this Agreement shall be kept on file with the
Clty Clerk. The terms of the Seanrity lnstruments required by this Agreement are
hereby lncorporated into this Agreement by reference.
D) Payments under the Securig lnstruments shall be required to be made (and, with
respect to bonds, litigation shall be required to be instituted and maintiained) in
the Gounty of Orange, State of Califomia.
E) Each of the Secudty lnstruments shall be automatically renewing.
F) The Security lnstruments shall reference Contractor's obligations under this
Agreement, shall be inevocable, and shall include as an additional obligation
secured the responsibility to compensate CITY for all of Clfi's attorneys'fees
and litlgation expenses reasonably incuned by CITY in enforcing its rights under
the Sectrity lnstruments.
This Contract shall not beoome effective until such bonds are supplled to and
approved by the City.
Sectlon 16. lnsu¡:ance.
A. Contractor ls also aware of ûre provisions of Section 3700 of the Labor
Code, which requires every employer to be lnsured against liability for Workers'
Compensation or undertake self-insurance in accordance wilh the provisions of that
ICode and will comply with sudr provisions before commenci¡g the performance of the
work of this Contract.
B, Contrac'tor and all subcontractors will carry workers' compensation
insurance for the potection of its employees during the progress of thE work. The
insurer shall waive its rlghts of subrogation against Clty, its ofücers, agents and
employees and shall issue a certificate to the policy evidencing same.
C. Contractor shall at all times €ny, on all operatlons hereunder, bodily
injury, including death, and property damage liability insurance, including automotive
CITYOF SAN JUAT{ CAPISTRANO
ANNUAI. SEWER REHABITÍTANON PROGMT', CIP 15701
AGRÉEMENT
B-12
operations, bodily inJury and property damage ooverage. All insurance coverage shall
be in amounts specified by City in the lnsuranoe Requirements and shall be evidenced
by the issuance of a cerliffcate in a form prescribed by the City and shall be
underwritten by insuranoe companles satisfactory to Clty for all operations, subcontnact
work, contractual obligations, product or completed operations, all owned vehicles and
non-owned vehicles. Said lnsurance coverage obtained by the Contractor, exeæpting
workers' oompensation coverage, shall name the Clty, its Directors, Officers, Agents,
Employees, Englneers, and Consultants for this contract, and all publlc agencies from
whom permits will be obtalned and their Directors, Officers, Agents and Employees, as
determined by the City, as additional lnsureds on said policies.
D. Before Gonlractor performs any work et, or prepares or delivers materials
to, the site of construction, Contractor shallfumish certificates of insurance evidencing
the foregoing insuranoe coverages and such certificates shall provide the name and
pollcy number of each canier and policy and thât the insurance is in force and will not
be canceled without th¡rty (30) daW written notice to City.
E. Contractor shall maintain all of the foregoing insurance @verages in force
until the work under this Contract ¡s fully completed. The requirement for carrying the
foregoing insurance shall not derogate from the provisions for indemniñcation of City by
Contractor under Section 17 of this Contracrt. Nohuithstranding nor diminishing the
obligations of Contrac{or with respect to the foregolng, Contractor shall subscribe for
and maintaln in full force and effect dudng the life of this Contract, the following
insurance in amounts not less than the amounts specified and issued by a company
admitted in Califomia and having a Best's Guide Rating of A-Class Vll or better:
Worker's Compensation ln accordance with lhe Workerc'
Compensation Act of the State of
Califomia - Minlmum of
CIW OF SAt'l JUAl,l CAPISTRANO
ANNUAL SÊVI'ËR RE}I.ABILITATION PROGRAM, CIP 1570I
AGREEMEl{T
8.13
$1,000,000
Public Liability, in the form of
either Comprehenslve General
Liablllty or Commercial General
Liabillty written on a per-occunence
basis
$1,000,000, per occuriense, or
altematively,
$1,000,000 aggregate, separate
for this project.
Automobile liability, including $1,000,000 per occunenoe
non-owned and hlred vehicles
Clty or its representatives shall at all tlmes have the right to lnspect and recelve
the origlnal or a certified copy of all said policies of insurance, including certlficates.
Contractor shall pay the premiums on lhe insurance hereinabove required.
Section 17. Risk and Indemnification.
All work covered by this Contract done at the site of construotion or in preparing
or dellvering materials to the site shall be at the risk of Gontractor alone. Contractor
agrees to save, indemnfi and keep City, its Directors, Officers, Agents, Employees,
Engineers, and Consultants for this Contract, and all public agencies from whom
permits will be obtained and their Directors, Ofñcers, Agents and Employees harmless
against any and all liability, claims, judgments, costs and demands, including demands
arislng from injuries or death of persons (Contractors employees included) and damage
to property, arising directly or indirectly out of the obligations herein undertaken or out of
the operatlons conducted by Contractor, save and except claims or litigatlon arising
through the sole negligence or sole willful misconduot of City, and wlll make good to and
reimburse Cityfor any expenditures, lncluding reasonable attome¡æ'fees City may inanr
by reason of such matters, and if requested by City, will defend any such suits at the
sole cosl and expense of Contractor.
Sectlon 18. Stoo Notlce Administnation.
Clty reserves the rlght to charge Contractor for Citt's actual admlnistrative time
(including attomey's time) to administer and process stop notices filed by Contracto/s
subcontractors, material-men, or any other claimant or lienholder.
Section 19. Terminaüon.
A. Thls Contract may be terminated in whole or in part in writlng by either
CITY OF SAN JUAN CAIÐISIR/TNO
ANNUA! SEWER REI"IABIL]ÍATION PROGRAM. CIP 1570I
AGREEMENT
B-11
party ¡n the event of substantial failure by the other party to fulfill its obligatlons under
this Contracl through no fault of the terminating perty, provided that no terminatlon may
be effected unless the other party is given: (1) not less lhan ten (10) calendar days'
written nollce (dellvered by certified mail, retum receipt requested) of lntent to terminate,
and (2) an opporlunity for consultation with the terminating party prior to termination.
B. Thls Contract may be terminated in whole or in part in writing by the City
for its conveniencE, provided that the Contnactor is given (1) not less than ten (10)
calendar days'written notice (dellvered by certified mail, retum receipt requested) of
intent to terminate, and (2) an opportunity for consultation with the terminating party
prior to termlnation.
C. lf termination for default or @nvenience is effeoted by the City, an
equitrable adjustment in the prlce provided for in this Gontract shall be made, bul (l) no
amount shall be allowed for anlicipaled profrt on unperformed seruices or other work,
and (2) any payment due to the Contractor at the time of termlnation may be adjusted to
cover any additional costs to the City because of the Contracto/s default. lf termination
for default is effected by the Contractor, the equitable adjustment shall include a
reasonable profit for services or olher work performed, but no adjustment will be
allowed for anticipated profits. The equitable adjustment for any termination shall
provlde for payment to the Gontractorfor services rendered and expenses incuned prior
to the termination, in addition to termination settlement costs reasonably incuned by the
Contractor relating to commitments wtrich had become firm prior to the termination.
D. Upon receipt of a termination action under paragraphs (A) or (B) above,
the Contractor shall (1) promptly discontinue all affected work (unless the notice directs
othenrtise), and (2) deliver or othenrise make available to the City all datra, drawings,
specifications, reports, estimates, summaries and such other information and materials
as may have been accumulated by lhe Contractor in performing this Contract whether
completed or in process.
CÍTY OF SAI{ JUAII CAPISTRANO
ANNUAT SEWER REI{ASIL¡TATþN PROGRAM. CIP 15701
AGREEMENf
8.15
E. Upon termination under paragraphs (A) or (B) above, the City may take
over the work and may award another party an agreement to complete the work under
this Contract.
Contractor agrees to perform all work under this Contract in accordance with the City's
designs, drawings and specifications. The Contraotor guarantees for a period of at least
one (1) year from the date of substantlal completion of lhe work that the completed work
ls free from all defects due to faulty materials, equipment or workmanship and that he
shall promptly make whatever adjustments or conectlons which may be necessary to
cure any defects, including repairs of any damage to other parts of the system resulting
from such defects. The City shall promptly give notice to the Contractor of observed
defeo-ts. ln the event that the Contractor fails to make adjustments, repalrs, conections
or othEr vrork made necessary by such defects, the City may do so and charge the
Contractorthe cost incr¡ned. The performance bond shall remain in fullforce and effect
through the guarantee period.
The Contractofs obligatlons under this clause are in addition to the Contrac-to/s
other express or implied assuranoes under this Contract or state law and in no way
dlminish any other rights that the City may have against the Contractor for faulty
materials, equlpment or work.
Sactlon 20. Asslonment.
No assignment by the Gontnactor of this Contract or any part hereof, or of funds
to be received hereunder, will be recognized by the City unless such assignment has
had prior wrltten approval and consent of the City and the surety.
Section 21. Attomevs' FeeS,
lf any action at law or in equity is necessary to enforce or interpret the terms of
this Cont¡act, the prevailing party shall be entitled lo reasonable attomeys'fees, costs
CIÏY OF SAN JUAN CAPISTRANO
AI.INUAL SEWER REFùABILITATION PROGRAM, CIP 15701
AGREEMENT
B-10
and necessary disbureements in addltlon to any other relief to which it may be entltled.
lf any action is brought against the Contractor or any suboontnaclor to enforce a Stop
Notice or Notlce to Wilhhold, !ìrhich names the City as a parly to said action, the City
shall be entitled to reasonable attomeys'fees, costs and necessary disbursements
arising out of the defense of such action by the Clty. The City shal! be entitled to deduct
its costs for any Stop Notice filed, whether court action is involved or not.
Section 22. Resolution of Disoules.
The City and the Contractor shall comply with the revisions of Callfomia Publlc
Contracts Code Section 20104, g!_ggq., regarding resolution of construction claims for
any claims which arise between the Contrac'tor and the C¡ty.
Section 23. Deoartment of Industrial Relations Registration.
Pursuant to Labor Code section 1771.1, no subcontractor may be llsted on a bid
proposal for any work related to the Project unless registered wlth the Califomla
Depadment of lndustrial Relations ('DlR"). Furthermore, Contractor is hereby notified
that no subcontractor may be awarded a contract for any work related to the Project
unless reglstered with the DlR. Pursuant to Labor Code sec'tion 1771,4, Cont¡ractor is
hereby notif¡ed that the Project is subjed to compliance monitoring and enforcement by
the DlR. Contractor will malntrain and will require all subcontractors to maintain valid
and cunent DIR Public Works Gontractor registration during the term of this
Agreement. Contractor shall notify lhe District in wrlting immediately, and in no case
more than twenty-four QÐ hours, after receiving any information that Contracto¡'s or
any of its subcontractods DIR registration status has been suspended, revoked,
expired, or othenrise changed.
Sec'tion 24. Notices.
Any notice required or permltted under this Contract may be glven by ordlnary
crw oF S N JUAN cAPtsTR^Î{O
A¡INUAI SÉWER REHAEILITATION PROGRAM. CIP I57Of
AOREEMENT
B-17
mail at the address set forür below. Any party whose address changes shall notfi the
other par$ in writing.
To Cig: City of San Juan Caplstrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Keith Van Der Maaten, P.E.
Public Works and Utillties Director
To Contracton Dominlc Burtech, President
Nu-Line Technologles, LLC.
102 Second Street, Suite B
Enclnitas, CA92024
Section 25. Countemarts and Facsimile Sionatures.
This agreement may be executed by the Parties in counterparts, which
counterparts shall be construed together and have lhe same effect as if all parties had
executed lhe sarne instrument. Counterpart signatures rnay be transmitted by facsimlle,
email or other electronic means and have the same force and effeot as if lhey were
original slgnatures.
Signature Page Follows.
CffY OF SAl{ JUAN CAPISTRANO
ANNUAT SEWER REI{ABILÍTATION PROGRAM. CIP 1570I
AGREEMENT
B-18
lN WITNESS WHEREOF, the partles hereto have executed thls Construction
Contract as of the date first hereinabove written.
c J
Derek Reeve,Mayor
NU.LINE TECHNOLOGIES, LLC
D AS TO FORM:
Balllnger,
C¡ty
CITY OF SAN JUAN CAPISTRANO
ANNUAL 6EWER REI"ÙCBILIÍATION PROGRAM, CIP 1T7OI
AGREËMENT
8.19
lo
rt of lhe AGR
Unlt Pr¡co Prlco
UNIT PRICE BIO SCIIEDULE
BID FORMS
This is EXHIBIT B
in and made a pa
OWNER and CONTRACTOR.
BID SCHEDULE
ANNUAL SEWER REHAB¡LtTATtON PROGRAM, Ctp 15701
25 Raise Manhole
BID TOTAL:
Bid Totalin Words 0,t-4d!!l Ç1r¡¡q.,f6,r, llrq¡1r.?tri Sixll Cl<_ 0o!!q4 rlrri_-¡1,, G,,lr
le,
of
'.,i
ot F¡rñ
('.j i¿t I
Name
¡Ylôñrfô¡
1D
1
Descrlptlon
ffi
(Cannot excced 10% ofbid llems 2.25)
Eslimalsd
orr¡¡!!!y-
1 LS
Unit
'i5,tN,tlJ tï,(rØ ú
1 LS lgr{xû.00 18,0ó0. oC¡2
3 Sheeìing, Shoring and Bracing
F
ht of Entry
1 LS J,fLÐ-6{)/,cûu (r0
4 9¡ff)DtlJ 8,¿rr;,nl
5
Temporary Sewer Bypass 6" (All Segments)
Cured ln Place Pipe Lining - 6"2J25
1 LS
LF ?f ,,lrÐ ü0
6 Temporary Sewer Bypass B" (All Segments)1
3). b0
lo;00'tto
7 Cured-ln-Place Pipe Lining - B"5,038
LS
LF 7t.,Jt>
lort0o tlD
lûlr2lt,.tlb
20 LF Zso N 5,ûÐ.ùÐI
U 7t,l, rïI tJD v\,b{n.(w
't0
Cured-ln-Place Pipe Partial Lining (Spot Repair) 8'
Temporary Sewer Bypass 12' (All segments)
Cured-ln-Place Pipe Lining - 12"953
1 LS
LF 55 rlÌr Í'.t,'1¡ç. O.,
I LS
'19 LF
{rl,¡1o,nr
5,'{ç3 {it
4,939
tf
12
13
'14 64
LF
LF
3s tro
12?. d0
,{1,'}_!_Q_!l!_
,g'¡ t;t
lt',q.1--tt q
-q,l¿3.ü',r
15
Temporary Sewer Bypass 18" & 21'(Atl Segments)
Cured in Place Pipe Lining - 18'
Cured ln Place Pipe Lining - 21'
Cured-ln-Place Pipe Lining - 21" (Storm Drain)
Cured ln Place Pipe Lining - 36" (Storm Drain)LF ,ßs.f,r)',¡.c.Si f,ou
16
145
36 ?ts.$';
17
Remove Prolruding laterals, gaskel
Manhole Rehabilitation (includes pressure grouting)
s, olher
obslruclions EA
EA
18 I EA
19
Manhole Rehabililation (no pressure grouling)
Manhole Rehabilitation, Rebuild Trough Only 4 EA ¡ , 5 t{ cr. {lir
jr¿e(r.jÈ
¡ r t{15 0D
1, f'lo,i']
!zfqLlj
2.7,.1q0 (i)
[",lbrr {rü
11
16
EA
EA L
\ {il.i i
ir5 dû t
tb,{çþ qt¡
21
2?.
20
3 ù& (tlr
23
Service Lateral Connection Repair (Top Hal Style)
lnstall 6' Terminal Cleanout
lnslall Arguello Way Sewer lnrprovements
Manhole Frame & Cover
EA
LS
24 Traffic Conlrol, Public Convenience and Safely
1
'1 LS
?,öû0.¡t;,_
il:s(;t,(l)
-
IU¡ISU JL
4 EA ¡r\ ¿f;.r/L;
01Ll
r. i,{{.í/.it,
l5u í1,
L'í4)¿ t
06 t.0
Annual Sewer Rehabilitation Program, CIP 1S701
Exhibit A
FIRST AMENDMENT TO
CONSTRUCTION AGREEM ENT
ANNUAL SEWER REHABILITATION PROGRAM, CIP 15701
THIS FIRST AMENDMENT TO THE CONSTRUCTION AGREEMENT between the
CITY OF SAN JUAN CAPISTRANO ("City") and Nu-Line Technologies LLC ("Consultant") is
made and entered into, to be effective the day of 2016, as follows
RECITALS
WHEREAS, the City and Consultant have entered into that Construction Agreement
dated June 2,2015 for the 2015 Annual Sewer Rehabilitation Program, CIP 15701 (the
"Agreement"); and
WHEREAS, the City and Consultant desire to amend the terms of the Agreement as
provided hereunder.
AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants contained
therein, City and Consultant agree to amend Section 11 of the Agreement as follows:
Section 11, Contract Price and Method of Payment, is amended to add $210,262.40 to the
Compensation Amount for a not to exceed total amount of $1,391,729.50
All other provisions of the Agreement not amended hereunder shall remain in full force and
effect.
540028 I
61 147.021 00\1 0229925.1
1
Attachment 2
ATTEST:
SIGNATURE PAGE
TO
FIRST AMENDMENT TO
CONSTRUCTION AGREEMENT
ANNUAL SEWER REHABILITATION PROGRAM, CIP 15701
C]TY OF SAN JUAN CAPISTRANO
By
Pam Patterson, Mayor
Maria Morris City Clerk
APPROVED AS TO FORM NU-LINE TECHNOLOGIES
<..
ntc P ent
5d0028 r
Byr
By:
61 147.02100\2454429s.1
-2-
City of San Juan Capistrano
EXHIBIT "A"
CHANGE ORDER FORM
Contract Change Order #2
32400 Paseo Adelanto
San Juan Capislrano, CA 92675
(949) 4e3-r17r
Contract No.: 15701
Contractor: Nu-Line Technologies LLC
Owner: City of San Juan Capistrano
Project: Annual Sewer Rehabilitation Program Change Order No.:
Orig. Contract Amt.:
Prev. Appvd. Ghanges:
This Change:
Revised Contract Amt.:
2
$1,074,061 Days
$42,972.53 Days
$274,695.97 Days
$1,391,729.50 Days
120
0
4
124
This Change Order covers changes to the subject contract as described herein. The Contractor
shall construct, furnish equipment and materials, and perform allwork as necessary or required
to complete the Change Order items for a lump sum price agreed upon between the Contractor
and City of San Juan Capistrano, othenivise referred to as Owner.
EXHIBIT'A"
Change Order Form
I
Item
No.Description of Changes
lncrease/
(Decrease)
in Contract
Amount
Contract
Time
Extension
Davs
1
Provide all labor and equipment necessary to bypass existing sewer
flows and remove Heavy Debris from the twenty one inch (21') diameter
trunk sewer line from manhole # 107 to manhole # 125 (COR # 9 and
coR # 11)
$70,635.36 0
2
Provide all labor and equipment necessary to install an additional 144LF
(one hundred and forty four linear feet) of eight inch diameter CIPP on
Admiralty Court per bid item #'s 6,7 ,21 and bid ilem # 24.
(coR # 13)
$9,916.24 0
3 Provide all labor and equipment necessary to install an additional 9
(Nine) service lateral connections at various locations per bid item # 21
(coR # 14)
$13,s00 0
4 Provide all labor and equipment necessary to install 1 (One) Dual sweep
cleanout due to unmarked utilities on a lime and materials basis
(coR # 17, 18 & 19)
$8,850.ô9 0
5 Change Order No. 1 ltem I has an incorrect total of $12,900 for the dig
and replace work on Camino Capistrano per COR #6. The correct
amount for this work is $13,522.50 for a difference of $622.50
$622.50 0
b Provide all labor and equipment necessary for installation of an
additional 85 (Eighty Five) Linear Feet of 16 inch Diameter CIPP $13,175.00 0
7 Removal of obstructions at a total of Five Hundred Twenty Nine (529)
inside the Twenty One lnch Trunk Sewer at the renegotiated price of
$225.00 {No Markup on Unit price work per Contract G.C.'s)
8124,844.00 0
6 1 1 47.02 1 00\20950242.3
Attachment 3
I Provide additional labor and equipment for Sewer Bypassing the Twenty
One lnch Trunk Sewer to allow for the work indicated in item 8 above, at
an agreed rate of $291.00 per hour, for a total of 108.5 hours plus 5%
Contractor Mark Up.
$33,1 52.1 I 4
Totals $274,695.97 4
This Contract Change Order consists pages an any ex to
Order shall not be part of the Contract Change Order unless specifically initialed by or on behalf of both
the Contractor and the City of San Juan Capistrano.
Contract Change Order # 2 (No Attachments) Page 2 of 3
The amount of the contract as shown above will be increased by the sum of $274.695.97 and the
contract time shall be extended by a working days. The undersigned Contractor approves the
foregoing Change Order #2 as to the changes, if any, in the contract price specified for each item
including any and all supervision costs and other miscellaneous costs relating to the change in work,
and as to the extension of time allowed, if any, for completion of the entire work on account of said
Change Order #2. The Contractor agrees to furnish all labor and materials and perform all other
necessary work, inclusive of the directly or indirectly related to the approved time extension, required
to complete the Change order items. This document will become a supplement of the contract and all
provisions will apply hereto. lt is understood that the Change Order shall be effective when approved
by the Owner.
Contractor accepts the terms and conditions stated above as full and final settlement of any and all
claims arising out of or related to the subject of this Change Order and acknowledges that the
compensation (time and cost) set forth herein comprises the total compensation due for the work or
change defined in the Change Order, including all impact on any unchanged work. By signing this
Change Order, the Contractor acknowledges and agrees that the stipulated compensation includes
payment for all Work contained in the Change Order, plus all payment for any acceleration or
interruption of schedules, extended overhead costs, delay, and all impact or cumulative impact on all
Work under this Contract. The signing of this Change Order acknowledges full mutual accord and
satisfaction for the change and that the stated time and/or cost constitute the total equitable
adjustment owed the Contractor as a result of the change. The Contractor hereby releases and
agrees to waive all rights, without exception or reservation of any kind whatsoever, to file any further
claim or request for equitable adjustment of any type, for any reasonably foreseeable cause that shall
arise out of, or as a result of, this Change Order and/or its impact on the remainder of the Work under
the Contract.
Accepted
øn-,/2, 2a/ø
) Dominic / ' D"l"
Recommended
(Signatu Steve , Public &Director Date
Approved:
(Signature) Pam Patterson, Mayor Date
Item
No.
J ustification for Change(s)
EXHIBIT'A"
Change Order Form
rþ/tn
261'1 47,021 00\20950242.3
1
Excessive debris in trunk line segments.
2
Provide in situ repairs for failing sanitary sewer
3 Provide in situ reoairs for failino service lateral connections
4 Unmarked underqround utilities
5 Standbv time due to delav in locatino manhole # 120
6 Provide in situ reoairs for failino corruoated metal oioe storm drain
7 Provide removal of obstructions as indicated above
I Sewer Bvoass labor and materials to accommodate trunk line work above.
This Contract Change Order consists of 3 pages and any exhibits attached to this Contract Change
Order shall not be part of the Contract Change Order unless specifically initialed by or on behalf of both
the Contractor and the City of San Juan Capistrano.
Contract Change Order #2 Page 3 of 3
EXHIBIT',A"
Change Order Form361 1 47.021 00\20950242.3