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HomeMy WebLinkAboutAgenda - 09-08-2011 - 8c~~ p_ X011- oa8 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 8, 2011 Action Agenda Item No. 8' G SUBJECT: Bid Award: Link Center Geothermal HVAC and Approval of Budget Amendment # 1-B DEPARTMENT: Asset Management Services PUBLIC HEARING: (YIN) No (AMS), Financial Services ATTACHMENT(S): A) Certified Bid Tabulation B) Contract PURPOSE: To consider: INFORMATION CONTACT: Pam Jones, AMS, (919) 245-2652 Jeff Thompson, AMS, (919) 245-2658 Michael Talbert, Financial Services, (919) 245-2153 David Cannell, Financial Services, (919) 245-2651 • Awarding the bid and approving a construction contract to Warren Hay Mechanical, Hillsborough NC, in the amount of $679,326 for the installation of the geothermal HVAC system at John M. Link, Jr. Government Services Center to replace the existing system; • Approving Budget Amendment #1-B for $192,243; • Authorizing the Chair to sign the contract on behalf of the Board of County Commissioners, subject to final review by the County Attorney; and • Authorizing the Manager to execute individual change orders within the limit of his authority ($250,000) up to the extent of the project budget. BACKGROUND: On May 17, 2011, the BOCC reviewed the analysis and schematic probable cost estimate for the installation of geothermal wells and related HVAC equipment for the Link Government Services Center. The BOCC also authorized staff to proceed with formal Construction Document preparation and bidding of the project. Competitive bids were opened on July 27, 2011 (see Attachment A, "Certified Bid Tabulation"). After a period of review of the bid documents by the County's engineering consultant, Reece, Noland & McElrath, Inc., Warren Hay Mechanical was determined to be the lowest responsive, responsible bidder for this project. Bids received were in excess of the schematic cost estimate provided to the BOCC on May 17, 2011. Staff conducted a rigorous value engineering exercise with the Warren Hay and successfully eliminated $94,300 in costs to the project without sacrificing the quality or breadth of the designed installation. The system is projected to save the County 30-35% in energy costs annually with drastically lower maintenance costs and quieter, more environmentally sustainable operations. While the geothermal system's initial cost is 10% higher than conventional systems, it will pay for this premium within 8 years of operation in saved energy costs. Over its 50 year expected life, the system is projected to save the County approximately $600,000 in energy, maintenance, and equipment replacement costs. The timeline presented to the BOCC on May 17th by which the project would be delivered is as follows: TASK PROPOSED BEGINNING DATE END BY DATE BOCC Action: Link Center Bid Award 9/8/11 9/8/11 Link Center Well Field Installation est. 3 month duration 10/1/11 12/31/11 Link Center E ui ment Installation est. 3 month duration 1/1/12 3/31/12 The Link Upfit project was original planned for $1,100,000 which included: BOCC meeting space, HVAC upgrade, restroom renovations, lighting upgrades, multimedia infrastructure, and renovations. Renovations have been completed for Human Resources, Financial Services, the County Attorney's Office and the Manager's Office. There were two funding sources for the original project - $425,000 of Debt Financing and $675,000 transferred from the General Fund. The $425,000 to be financed when the project was bid has never been sold. On September 21, 2010, the Board decided not to go forward with the project as presented. Link Center Upfit Budget Actual as of 9/21/10 REVENUES Debt Financi $ 425,000 Transfer From the General Fund 675,000 $675,000 Total Revenues as of 9/21/10 $1,100,000 $675,000 EXPENDITURES Professional Services $ 100,000 $ 58,589 Construction 1,000,000 443,222 Total Ex enditures as of 9/21/10 $1,100,000 $ 501,811 Available Funds 9/21/10 $ 173,189 On April 19, 2011 the Board approved a budget amendment accepting a Federal Energy Efficiency Community Development Block Grant of $177,675 for the design and construction of a geothermal HVAC project. The geothermal project will provide HVAC for the entire Link Facility. Funding for Link Center Upfit: Available Funds 9/21/10 $ 173,189 EECB Grant approved 4/19/11 177,675 Transfers approved in CIP from other Projects: HVAC Project 90,777 ADA Compliance 83,942 Building Entry 75,000 Available Funds $ 600,583 FINANCIAL IMPACT: $600,583 is available as part of the FY2011-12 Capital Improvement Project budget, which includes $177,675 in grant funding awarded to Orange County through the EECBG program within the American Recovery and Re-Investment Act ("ARRA"). The available funding falls short by $192,243. Budget Amendment #1-B below provides details of the proposed budget amendment. Revenues for this ro'ect: FY2010-11 Amendments Budget Amendment # 1-B FY 2011-12 Revised Debt Financin $ 425,000 $ 425,000 Federal EECBG Grant 177,675 177,675 Transfer from General Fund 675,000 $192,243 867,243 Total Project Revenues $1,277.675 $192,243 $1,469,918 AnnrnnriatPd fnr this nroieCt' Prior Years Amendment Budget Amendment #1-B FY 2011-12 Revised Professional Services $ 100,000 $ 30,000 $ 130,000 Construction 1,177,675 128,743 1,306,418 Other 33,500 33,500 Total Project A ro nation $1,277,675 $ 192,243 $1,469,918 RECOMMENDATION(S): The Manager recommends that the Board: 1.) Award the bid and approve a construction contract to Warren Hay Mechanical of Hillsborough, NC in the amount of $679,326 for the installation of the geothermal HVAC system at Link Government Services Center to replace the existing system; 2.) Approve Budget Amendment #1-B for 192,243; 3.) Authorize the Chair to sign the contract on behalf of the Board of County Commissioners, subject to final review by the County Attorney; and 4.) Authorize the Manager to execute individual change orders within the limit of his authority ($250,000) up to the extent of the project budget. ~~ ~ ~/ '~ ENG~NEE~?S Reece, Nolartxl & McEJrath, Inc. PROJECT NAME: PROJECT ADDRESS: BIDS RECEIVED (DATE): BID TABULATION HVAC Renovation John M. Link Government Services Building 200 South Cameron Street, Hillsborough, NC July 27, 2011 ~ TIME RCVD. 2:00 p.m. 1 CO~TR4CTOR' LIGE~SF' B~' A~,DNDFA , a~~ RECEIVED , ;~~ }MBE', ~,5~ '~I'P~l~`D BASE;BID~ ~ ~ ~L,T #1 LiSTI I' BO1;YD ~~,~ar~~ ~ PR[CE~ Bolton Cor oration 1042 $810 000 0 $8 500 ec orks _ .. ... 11295 ~~~~ ., ., ~ ~ v $899 900 X927.808 0 0 $6,565 700 LOW BASE BIDDER: LOW BASE BID: Warren Hay Mechanical Contractors 773,626 I certify that this is a true and accurate representation of the bids received: Alternate #1: Energy Management Contro{ System by Siemens Unit Price: Cost per well -~ Stephen C. Kaufman, P.E. ~Q~~ ~~ ~. X29 ~f~~~~ ~aj~//o~~p~(~ ~ a v L• ~~`~~ `9®ai ~~M~ ~- [Departmental Use Only] TITLE #30035 Link Geothermal Install FY FY2011-12 NORTH CAROLINA ORANGE COUNTY CONSTRUCTION AGREEMENT UNDER $1,000,000.00 THIS CONSTRUCTION AGREEMENT (hereinafter called "Agreement"), made as of the 19th day of September, 2011, by and between Warren Hay Mechanical Contractors, (hereinafter called the "Contractor"), and Orange County, a body politic and a political subdivision of the State of North Carolina, (hereinafter called the "Owner"). WITNESSETH: That the Contractor and the Owner, for the consideration herein named, agree as follows: 1. COl`TTRACT DOCUMENTS; PRIORITY The Contract Documents consist of this Agreement, the Request for Proposals, Proposal, Construction Drawings and Written Specifications. The Contract Documents form the Contract and are fully incorporated herein. In the event of any inconsistency between or among-the Contract Documents the Contract Documents shall be interpreted in the following order of priority: a. This Agreement. b. Designer Approved Bulletins and/or Field Orders. e. Request for Proposals and addenda thereto. d. Proposal. 2. SCOPE OF WORK The Contractor shall furnish and deliver all of the materials, and perform all of the work required by this Agreement within the time period stipulated in a written Notice-to-Proceed to be executed by the Contractor and Owner and in accordance with the following enumerated documents, which are made a part hereof as if fully contained herein: a. Construction Drawings prepared by Reece, Noland & McElrath, Inc. (Sheet set including CO.1, MO.1, Ml.l, M1.2, M2.1, M3.1, M4.1, M5.1, M5.2, E1.1, E2.1, E3.1 dated 6/24/2011) b. Written .specifications prepared by the project engineer. 5 c. Bid proposal dated June 27, 2011 which fully describes the work to be performed, such work (hereinafter called the "Work"). d. Related documents listed under Section 1 above. Revised December 2010 1 6 3. TERM AND SCHEDULING a, The Contractor agrees to commence work pursuant to the written Notice-to Proceed. b. The Contractor agrees to complete substantially all Work included by March 31, 2012. c. Time is of the essence with respect to all dates specified in the Contract Documents as Completion Dates. d. The contractor shall perform the Work in the time, manner and form required by the Contract Documents and as stipulated in a written Notice-to-Proceed to be executed by the Contractor and Owner. e. It is expressly understood that the Owner will employ other contractors to perform work as a part of the P-roject whose work will be performed simultaneously and sequentially with the performance of the Work by the Contractor. It shall be necessary for the Contractor to coordinate its activities with such other contractors, particularly with respect to access to work areas, storage of materials and other common facilities. f. Should the Owner determine that the Contractor is behind schedule Owner may require, at no additional cost to the Owner, the Contractor to expedite and accelerate its efforts, including providing additional resources and working overtime, as necessary, to perform the Work in accordance with the approved project schedule. 4. STANDARD OF CARE a. The Contractor shall exercise reasonable care and diligence in performing the Work in accordance with the highest generally accepted. standards of this type of Contractor practice throughout the United States and in accordance with applicable federal, state and local laws and regulations applicable to the performance of these services. Contractor is solely responsible for the professional quality, accuracy and timely completion and/or submission of all work. b. The Contractor shall not load or permit any part of the Work to be loaded with a weight that will endanger its safety, intended performance or configuration. c. Contractor shall be responsible for all errors or omissions, in the performance of the Agreement. Contractor shall correct any and all errors, omissions, discrepancies, ambiguities, mistakes or conflicts at no additional cost to the Owner. d. Contractor is an independent contractor of Owner. Any and all employees of the Contractor engaged by the Contractor in the performance of any work or services required of the Contractor under this Agreement, shall be considered employees or agents of the Contractor only and not of the Owner, and any and all claims that may or might arise under any workers compensation or other law or contract on behalf of said employees while so engaged shall be the sole obligation and responsibility of the Contractor. e. Contractor agrees that Contractor, its employees, agents and its subcontractors, if any, shall be required to comply with all federal, state and local antidiscrimination laws, regulations and policies that relate to the performance of Contractor's services under this Agreement. Revised December 2010 2 7 f. If activities related to the performance of this Agreement require specific licenses, certifications, or related credentials Contractor represents that it and/or its employees, agents and subcontractors engaged in such activities possess such licenses, certifications, or credentials and that such licenses certifications, or credentials are current, active, and not in a state of suspension or revocation. 5. PAYMENT & TAXES a. The Owner hereby agrees to pay _to the Contractor for the faithful performance of this Agreement, and the Contractor hereby agrees to perform all of the Work for a sum not-to- exceed Six Hundred seventy Nine Thousand Three Hundred Twenty Six Dollars ($679,326). Not later than the fifth (5th) day of each calendar month the Contractor shall submit to the Owner's Representative, generally the architect if an architect is retained on the Work, a Request for Payment for work done during the previous calendar month. i. The Request for Payment shall be in form of a standardized invoice or AIA Document G702-703 appropriately addressed to Owner's Representative at Orange County and shall show substantially the value of work done during the previous calendar month. ii. T-he amount due for payment shall be ninety percent (90%) of the value of work completed since the last Request for Payment and t'us amount shall be paid by the Owner on or before the last business day of the month. Owner shall retain ten percent (10%). 1. Upon Owner's Representative's certification that seventy-five percent (75%) of the Work has- been satisfactorily completed retainage shall be reduced to five percent (5%). Retainage may be waived, at Owner's Discretion, so long as work continues to be completed satisfactorily and on schedule. iii. Final payment shall not be due to the Contractor until thirty (30) days after one hundred percent (100%) of the Work, including punch list work, has been satisfactorily completed and an appropriate affidavit as required in Section 7(c) below has- been received by Owner. b. Should Owner reasonably determine that Contractor has failed to perform the Work related to a Request for Payment, Owner, at its discretion may provide the Contractor ten (10) days to cure the breach. Owner may withhold the accompanying payment without penalty until such time as Contractor cures the breach. i. Should Contractor or its representatives fail to cure the breach within ten (10) days, or fail to reasonably agree to such modified schedule, Owner may immediately terminate this Agreement in writing, without penalty or incurring further obligation to Contractor. ii. This section shall not be interpreted to limit the definition of breach to the failure to perform the Work related to a Request for Payment. c. The Contractor has included in the Contract Price and shall pay all taxes assessed by any authority on the Work or the labor and materials used therein. It shall be the Contractor's responsibility to furnish the Owner documentary evidence showing the materials used and sales and use tax paid by the Contractor and each of its subcontractors. 6. INSURANCE AND BONDS Revised December 2010 3 8 a. Minimum requirements -The Contractor shall obtain, at its sole expense, all insurance required under this Agreement and the Contractor shall not commence work until such insurance is in force nor shall the .Contractor allow any Subcontractor to commence work on its subcontract until all insurance required to be procured by Subcontractors hereunder has been so obtained by or for the Subcontractor. All required insurance shall be procured from insurance companies licensed to do business in North Carolina with a Best's Insurance Guide Rating of A- or better. Coverage for the following types of insurance shall be maintained continuously during the life of the Project until .Final Completion of the Work. Coverages shall be maintained continuously during the life of the Project until Final Completion of the Work for the following types of insurarice in the amounts listed i. Worker's Compensation Insurance with limits for Coverage AStatutory -State of North Carolina and Coverage B Employers Liability $500,000 each accident and policy limit and disease each employee. ii. Comprehensive General Liability and Property Damage: Insurance ($500,000 Each Occurrence; $1.,000,000 Aggregate). iii. Contractual Liability (Bodily Injury and Property Damage $500,000 Each Occurrence; Property Damage $1,000,000 Aggregate). iv. Personal Injury, with Employment Exclusion deleted ($1,000,000 Aggregate). v. Comprehensive Automobile Liability Insurance (Bodily Injury $100,000 Each Person/Each Accident, $300,000 Each Occurrence; Property Damage $lOD,000 Each Occurrence). b. Additional Insured -The Owner shall be named as additional insured on all forms of insurance except Worker's Compensation. Each certificate of insurance and policy required hereunder, except the worker's compensation policy, shall bear the provision that "The policy cannot be canceled or reduced in amount and that coverage cannot be eliminated in less than thirty (30) days after mailing written notice to the Owner of such alteration, cancellation, or elimination, the written notice to be sent by Certified Mail." c. Performance Bonds -Contractor shall furnish bonds covering the faithful performance of the Contract and payment of ail obligations arising under any of the Contract Documents or related in any way to the Work. Contractor shall immediately furnish a copy of such bonds to any requesting person who appears to be a potential beneficiary of bonds covering payment obligations arising under any of the Contract Documents. 7. INDEMNITY a. The Contractor shall indemnify and hold harmless to the extent permitted by law the Owner and its agents and employees from and against any and all claims, damages, losses and expenses, including attorney's fees, arising out of or resulting from the performance or nonperformance of the Work, provided that any such claim, damages, loss or expense (A) is attributable to bodily injury, sickness, disease or death or injury to, or destruction of, property, including the loss of use resulting therefrom; and (B) is caused in whole or in part by any breach of any provision of the Agreement or by any negligent or wrongful act or omission of the Contractor, any Subcontractor, or supplier of the Contractor, anyone Revised December 2010 4 9 directly or indirectly employed by any of them or anyone for whose acts any of them-may be liable. The indemnification obligation under this paragraph shall not be limited in any way by any limitation of the amount-or type of damages, compensation or benef is payable by or for the Contractor or any subcontractor under workers' compensation acts, disability benefits acts or other employee benefit acts. b. The Contractor shall indemnify and -hold harmless Owner from any lien of whatever type through the purchase of appropriate bonds and insurance as designated in Section 6 above. c. Upon completion of the Work the Contractor shall execute an affidavit stating there are no unpaid debts for any work that has been done or materials that have been furnished to the Project prior to and as of the date of substantial completion and further stating that Contractor shall indemnify, save and protect Owner and Owner's lender, if any, harmless from and against any and all claims, liabilities, losses, damages, causes of action, and expenses (including court costs and reasonable attorney's fees related thereto) arising out of, in connection with, or resulting from any such debts and liens in a form and substance mutually acceptable to Owner and Contractor. d. By executing this Agreement Contractor agrees to abide by and be bound by the indemnification provisions of Section 7(c) above. 8. DISPUTE RESOLUTION AND GOVERNING LAW a. Owner and Contractor agree that should a dispute arise as to the terms of the Contract Documents the architect shall serve as the initial decision-maker, unless there is -no architect retrained on the project related to the Work. Owner and Contractor further agree as follows: i. If there is no architect retained for the Work, Owner and Contractor agree, prior to the initiation of any civil litigation, to submit to mediation by agreeing on an individual to serve as mediator to mediate the dispute. ii. Should the Owner and Contractor fail to mutually agree on an individual to serve as mediator Owner-may select a mediator to mediate the dispute. iii. Any mediator selected under this section shall be an attorney licensed to practice law in the State of North Carolina and shall be generally recognized as having experience in mediating construction disputes. iv. Owner and Contractor agree to equally share in the cost of a mediator selected under this section. b. The laws of the State of North Carolina shall apply to the interpretation and enforcement of this Agreement. Any and all suits or actions to enforce, interpret or seek damages with respect to any provision of, or the performance or nonperformance of, this Agreement or the Contract shall be brought in the General Court of Justice of North Carolina sitting in Orange County, North Carolina and-it is agreed by the parties that no other court shall have jurisdiction or venue with respect to such suits or actions. c. Notice of-any claim by Owner or Contractor must be initiated by written notice to the other Party within thirty (30) days. of the occurrence of the event giving rise to the claim or within thirty (30) days of the discovery of the event or condition giving rise to the claim, whichever is later. Revised December 2010 10 i. Should- any claim be made, regardless of whether such claim is made by Owner or Contractor, Contractor shall continue to faithfully and diligently perform the Work in such a manner as to meet all scheduled timelines. Any failure to faithfully and diligently perform the Work may be deemed, by the Owner, a breach of the Contract. ii. If a claim is made such claim shall be made to the initial decision maker, if applicable, who may request more supporting data, reject the claim in whole or in part, approve the claim in whole or in part or advise the parties the claim is unable to be resolved. iii. If a claim is made by the Owner the Owner may, but is not obligated to, notify the surety. 9. NON-APPROPRIATION a. Contractor acknowledges that Owner is a governmental entity, and the validity of this Agreement is based upon the availability of public funding under the authority of its statutory mandate. b. In the event that public funds are unavailable and not appropriated for the performance of Owner's obligations-under this Agreement, then this Agreement shall automatically expire without penalty to Owner immediately upon written notice to -Contractor of the unavailability and non-appropriation of public funds. it is expressly agreed that Owner shall not activate this non-appropriation provision for its convenience or to circumvent the requirements of this Agreement, but only as an emergency fiscal measure during a substantial fiscal crisis. c. In the event of a change in the Owner's statutory authority, mandate and/or mandated functions, by state andlor federal legislative or regulatory action, which. adversely affects Owner's authority to continue its obligations under this Agreement, then this Agreement shall automatically terminate without penalty to Owner upon written notice to Contractor of such limitation or change in Owner's legal authority. 10. NOTICES Any notice required by this Agreement shall be in writing and delivered by certified or registered mail, return receipt requested to the following: Owner: Contractor: Orange County Warren Hay Mechanical Contractors Attn: Pam Jones 214 Millstone Drive P.O. Box 8181 Hillsborough, NC 27278 Hillsborough, NC 27278 11. MISCELLANEOUS a. Duties- and Obligations imposed by the Contract Documents shall be in addition to any Duties and Obligations imposed by state, federal or local law, rules, regulations and ordinances. b. No act or failure to act by the Owner or Contractor shall constitute a waiver of any right or duty granted them under the Contract Documents, nor shall any act or failure to act constitute any approval except as specifically agreed in writing. Revised December 2010 6 11 c. The Work shall be tested and inspected as required by the Contract Documents and as required by law. Unless prohibited by law the costs of all such tests and inspections related to state and federal codes such as ADA, Administrative, Electrical, Plumbing, Mechanical and Building- Codes shall be borne by the Contractor. The costs for material and strucraral testing shall be conducted by an independent third party at the expense of the Owner. Delays related to any of the aforementioned tests and inspections shall not be grounds for delaying the completion of the work. If any such tests and inspections reveal deficiencies in the Work such that the Work does not comply with terms or requirements of the Contract Documents and/or the requirements of any code or law the Contractor is solely responsible for the cost of bringing such deficiencies into compliance with the terms of the Contract Documents and/or any code or law. d. Should the Architect, if an architect is retained for the project involving the Work, or Owner reject any portion of the Work for failing to comply with the Contract Documents Contractor shall immediately, at Contractor's expense, .correct the- Work. Any such rejection may be made before or after substantial completion. If applicable, any additional expense borne by the Architect under this- section shall be paid at Contractor's expense. e. The Contractor shall- not assign any portion of this Agreement nor subcontract the Work in its entirety without the prior written consent of the Owner. 12. CONSEQUENTL~I. AND LIQUIDATED DAMAGES a. Owner and Contractor mutually waive. any claim against each other for consequential damages. Consequential Damages include: i. Damages incurred by Owner for loss of use, income, financing, or business. ii. Damages incurred by Contractor for office expenses, including personnel, loss of financing, profit, income, business or damage to reputation. b. Liquidated damages shall be in accord with the Contract Documents. 13. TERMINATION OR SUSPENSION a. The Owner may, without cause, order the Contractor to terminate, suspend, delay or interrupt the Work in whole or in part for such period of time as the Owner may determine. In the event of termination by the Owner under this Agreement, the Contractor shall be entitled to receive its reasonable and documented direct costs prior to termination, including the cost of materials purchased for the Work which purchases cannot be canceled or which material cannot reasonably be used by the Contractor on other work, and the cost of closing down the work in a safe and efficient manner. i. If Owner orders a delay, suspension or interruption of the Work, and such order is not due to or as a result of any fault on the part of the Contractor, the Contractor may recover a per diem amount at a rate calculated by a flat rate of $200 per day. ii. If Contractor elects to accept the amount listed in the General Conditions provision of the Construction Documents Contractor waives any right to further claims for payment of damages sustained as a result of Owner's order to delay, suspend or Revised December 2010 ~ 12 interrupt the Work. b. Contractor may terminate the Contract if, at the Owner's written direction, the Work is stopped for thirty (30) consecutive days through no act or fault of the Contractor, their agents or employees, or a subcontractor or their agents or employees or any other person performing work pursuant to the Contract Documents. Contractor may terminate the Contract if a -Court or other Public authority having jurisdiction enters a lawful order that requires all work to be stopped and such stoppage lasts for thirty (30) consecutive days. 14. ENTIRE AGREEMENT All of the documents listed, referenced or described in this Agreement, the written Notice-to- Proceed, together with Modifications made or issued in accordance herewith are the Contract Documents, and the work, labor, materials and completed construction required by the Contract Documents and all parts thereof is the Work. The Contract Documents constitute the entire agreement between Owner and Contractor. This Agreement may be amended only by written instrument signed by both parties. Modifications may be evidenced by facsimile signatures. If any provision of the Agreement shall be declared invalid or unenforceable, the remainder of the Agreement shall continue in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and date first above written in a number of counterparts, each of which shall, without proof or accounting for other counterparts, be deemed an original contract. ORANGE COIJNT~ CONTRACTOR Signature Bernadette Pelissier, Chair Orange County Board of Commissioners Signature Attest: Donna Baker, Clerk to the Board Printed Name and Title This instrument has- been approved as to technical content. Department Director This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Office of the Finance Director This instrument has been approved as to legal form and sufficiency. Revised December 2010 13 Office of the County Attorney Revised December 2010