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CC SR 20170620 U - 3rd Amendment to Hardy Harper AgreementRANCHO PALOS VERDES CITY COUNCIL AGENDA REPORT AGENDA DESCRIPTION: MEETING DATE: 06/20/2016 AGENDA HEADING: Consent Calendar Consideration and possible action to approve the third amendment to the agreement between the City of Rancho Palos Verdes and Hardy & Harper, Inc. for Public Works maintenance of streets and rights-of-way. RECOMMENDED COUNCIL ACTION: (1) Approve the Third Amendment to the Agreement; and, (2) Authorize the Mayor and City Clerk to execute the agreement with Hardy & Harper, Inc. for public works maintenance of streets and rights-of-way, and extend the term of the agreement to June 30, 2018. FISCAL IMPACT: This work will be included in the upcoming FY17-18 municipal budget. Amount Budgeted: $411,000 Additional Appropriation: N/A Account Number(s): 202-400-3180-5201,. ORIGINATED BY: Sean Larvenz, Maintenance Superintendent REVIEWED BY: Nicole Jules, PE, Acting Director of Public Works APPROVED BY: Doug Willmore, City Manager,` V ATTACHED SUPPORTING DOCUMENTS: A. Agreement for Hardy & Harper, Inc. (page A-1) B. First Amendment to Agreement (page B-1) C. Second Amendment to Agreement (page C-1) D. Third Amendment to Agreement (page D-1) E. Hardy & Harper, Inc. Proposal (page E-1) BACKGROUND AND DISCUSSION: The Public Works Maintenance Agreement for Streets and Rights of Way between the City of Rancho Palos Verdes ("City") and Hardy & Harper, Inc. ("Contractor"), was awarded on May 15, 2012, ("Agreement") for a three (3) year term with a total value of $552,000 for the initial term. The Agreement included an annual not -to -exceed amount of $184,000. The First Amendment to the Agreement was exercised July 1, 2015, and extended the term for one year. The Second Amendment to the Agreement was exercised July 1, 2016, and extended the term again for one year and included a rate increase from $90.00 per hour to $95 per hour for a "Lead Worker, with one stake -bed 01203.0006/384252.2 1 truck and cellular phone." The First and Second Amendments were also for an annual not -to -exceed amount of $184,000. The item before the City Council is the third amendment ("Third Amendment"), which would be effective July 1, 2017, and would extend the term for one more year as the final extension option provided for under the Agreement. The total expenditure on the three (3) base years of the Agreement was $481,861.81, which was under the budget of the executed contract value of $552,000. The total expenditure under the First Amendment (FY15-16) totaled $174,906.43. The expenditure estimate at completion of the Second Amendment (FY16-17) is $169,382.40. For the proposed Third Amendment, the Contractor has proposed an increase in the not -to -exceed amount from $184,000 to $195,000 for FY 17-18. The hourly rates will remain the same, but the increase in the not -to -exceed amount allows for an expected increase in the possible hours of service for FY 17-18 from 1936 to 2052. This will also increase the potential contract value to $1,115,000 (for the total six years of the Agreement). Staff has determined that this increase to the not -to -exceed limit can be accommodated under this Third Amendment with no additional appropriation. Staff evaluated the quality of service provided by Hardy & Harper, Inc. and found it to be excellent. In addition, the company has demonstrated a willingness to immediately address any noted deficiencies in service, and is flexible in addressing the City's needs. Staff therefore recommends approval of the Third Amendment to the Agreement with Hardy & Harper, Inc., which will extend the term for one year, until June 30, 2018, and increase the annual not -to -exceed limit from $184,000 to $195,000. The proposed FY17-18 budget provides adequate funding for the Staff recommendation. The funding source for the contract is Gas Tax — Street Landscape Maintenance. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council's consideration: 1. Allow the contract to expire at the end of the Second Amendment period on June 30, 2017, and re -bid the work. Adopting this alternative may likely result in an interruption of service, increased costs and the loss of the Contractor's institutional knowledge. 2. Take other action as deemed appropriate by the City Council. 01203.0006/384252.2 2 PUBLIC WORKS MAINTENANCE AGREEMENT FOR. STREETS AND RIGHTS OF WAY THIS AGREEMENT ("Agreement") is made and entered this 15tb day of May, 2012, by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation ("City") and Hardy and Harper Inc. ("Contractor"). In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: Scope ol'Services. Contractor shall perform the work and provide all labor, materials, equipment and services in a good and workmanlike manner for the project identified as Pt;BLIC WORKS MAINTENANCE LABOR FOR STREETS AND RIGHTS OF WAY ("Project"), as described in this Agreement and in the Bid Documents (including the Notice Inviting Sealed Bids, the Instructions to Bidders, the General Provisions, the Special Provisions, the Technical Special Provisions, the Proposal, the Exhibits, and all addenda as prepared prior to the date of bid opening setting forth any modifications or interpretations of any said documents), which are attached hereto as Exhibit "A" and incorporated herein by this reference, including miscellaneous appurtenant work. All work shall be performed in accordance with the latest edition of the Standard Specifications for Public Works Construction (commonly known as the "Green book"), including supplements, prepared and promulgated by the Southern California Chapter of the American Public Works Association and the Associated General Contractors of California (collectively "Standard Specifications"), which is incorporated herein by this reference. In the event of any conflict between the terns of this Agreement and incorporated documents, the terms of this Agreement shall control. 2. Extra Work. Extra work, when ordered in writing by the Director of Public Works and accepted by the Contractor, shall be paid for under written work order in accordance with the terms therein provided. Payment for extra work will be made at the unit price or lump sure previously agreed upon in writing between the Contractor and the Director of Public Works. All extra work shall be adjusted daily upon report sheet furnished by the Contractor, prepared by the Director of Public Works, and signed by both parties, and said daily report shall be considered thereafter the true records of extra work done. Tenn. This Agreement shall commence on July 1, 2012 and shall remain in cffect until the tasks described herein are completed to the City's approval, but in no event later than .lune 30, 2015, unless sooner terminated pursuant to Section 13 of this Agreement. Additionally, there shall be three (3) one- year options to renew the Agreement with the mutual written consent of both partics. If not renewed prior to the anniversary date, the Agreement may continue on a month to month basis under the same terms and conditions as this Agreement for a maximum period not to exceed six (6) months or until renewed or awarded to a new contractor, whichever is less. 4. Time. Time is of the essence in this Agreement. 5. Forec Maicure. Neither the City nor Contractor shall be responsible for delays in performance under this Agreement due to causes beyond its control, including but not limited to acts of God, acts of the public enemy, acts of the Government, fires, floods or other casualty, epidemics, earthquakes, lahor stoppages or slowdowns, freight embargoes, utnusually severe weather, and supplier delays due to such causes. Neither economic nor market conditions nor the financial condition of either party shall be considered a cause to excuse delay pursuant to this Section. Each party shall notify the other promptly in writing of each such excusable delay, its cause and its expected delay, and shall upon request update such notice. 6. Compensation. Inconsideration of the services rendered hereunder, City shall pay Contractor not to exceed amount of One hundred Eighty Four Thousand dollars ($1$4,000) in accordance will) the C-1 A-1 prices as submitted in Contractor's Proposal, attached hereto as Fxhibit "B" and incorporated herein by this reference. 7. Payments. City shall make payments within thirty (30) days after receipt of an undisputed and properly submitted payment request from Contractor. City shall return to Contractor any payment request determined not to be a proper payment request as soon as practicable, but not later than seven (7) days after receipt, and shall explain in writing the reasons why the payment request is not proper. A payment shall be made as the City Council of the City prescribes upon estimates approved by the City Council. However, progress payments shall not be made in excess ofninety-five percent (95%) of the percentage of actual work completed plus a like percentage of the value of material delivered on the ground or stored subject to, or under the control of, the City, and unused. The City shall withhold not less than five percent (5%) of the Agreement price until final completion and acceptance of the Project. However, at any time after fifty percent (50%) of the work has been completed, if the City Council of the City finds that satisfactory progress is being made, it may, at its discretion, make any of the remaining progress payments in full for actual work completed. S. Substitute Security. At the written request and expense of Contractor, securities equivalent to any moneys withheld by the City to ensure performance under this Agreement shall be deposited with the City, or with a state or federally chartered bank in the State of California as the escrow agent, that shall then pay those moneys to Contractor. Upon satisfactory completion of the Agreement, the securities shall be returned to Contractor. b. Alternatively, Contractor may request that the City shall make payment of retentions earned directly to the escrow agent at the expense of Contractor. At the expense of Contractor, Contractor may direct the investment of the payments into securities, and Contractor shall receive the interest earned on the investments upon the same terms provided for securities deposited by Contractor. Upon satisfactory completion of the Agreement, Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City, pursuant to the terms of this Section. c. Securities eligible for investment shall include those listed in California Government Code Section 16430, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security to which Contractor and the City mutually agree in writing. Contractor shall be the beneficial owner of any securities substituted for moneys withheld and shall receive any interest thereon. d. If Contractor elects to receive interest on moneys withheld in retention by the City, it shalt, at the request of any subcontractor performing more than five percent (5%) of Contractor's total bid, make that option available to the subcontractor regarding any moneys withheld in retention by Contractor from the subcontractor. Further mandatory details are provided in Public Contract Code Section 22300(d), which is incorporated herein by this reference. e. The escrow agreement for security deposits in lieu of retention shall be substantially similar to the form provided in Public Contract Code Section 22300(f), which is incorporated herein by this reference. 9. Taxes. Contractor shall calculate payment for all sales, unemployment, old age pension and other taxes imposed by local, State of California and federal law. These payments are included in the total amounts in Exhibit "B." C-2 A-2 10. Audit. The City or its representative shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its, billings to the City as a condition precedent to any payment to Contractor. Contractor will promptly furnish documents requested by the City. Additionally, Contractor shall be subject to State Auditor examination and audit at the request of the City or as part of any audit of the City, for a period of three (3) years after final payment under this Agreement. 11. Unresolved Disl2utes. In the event that a dispute arises between the City and Contractor regarding whether the conditions materially differ, involve hazardous waste, or cause a decrease or increase in Contractor's cost of or time required for performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the Agreement, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. In the event of any dispute or controversy with the City over any matter whatsoever, Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. This includes disputed time extension requests and prices for changes. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. Public Contract Code Sections 20104 et seq. and Rancho Palos Verdes Municipal Code chapter 3.24 ("Claims Against the City') shall govern the procedures of the claim process, and these provisions are incorporated herein by this reference. 12. Termination. This Agreement may be canceled by the City at any time with or without cause without penalty upon thirty (30) days' written notice or by the Contractor at any time with or without cause without penalty upon ninety (90) days' written notice. In the event of termination by the City without fault of Contractor, City shall pay Contractor for all services satisfactorily rendered prior to date of termination, and such payment shall be in full satisfaction of all services rendered hereunder. 13. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: City of Rancho Palos Verdes Instructions for Execution of Instruments; Insurance Requirements for the City of Rancho Palos Verdes Public 'Works Contract; Workers' Compensation Certificate of Insurance; Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability). 14. Antitrust Claims. Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing; with Section 167001) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Agreement. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties. 15. Trenching and Excavations. If the project involves trenching more than four (4) feet deep, Contractor shall promptly and before the following conditions are disturbed notify the City in writing of any: material that Contractor believes may be material that is hazardous waste, as defined in California Health and Safety Code Section 25117, that is required to be removed to a Class I, Class 11, or Class Ill disposal site in accordance with provisions of existing law; subsurface or latent physical conditions at the site differing from those indicated; or unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. The City shall promptly investigate the conditions, and if the City finds that the conditions do materially differ or do involve hazardous waste and cause a decrease or increase in Contractor's cost of or the time required for performance of any C-3 A-3 part of the work, the City shall issue a change order. 16. Utilities. The City acknowledges its responsibilities under Government Code section 4215 and incorporates that section herein by this reference. 17. Location of Existing Elements. The methods used and costs involved to locate existing elements, points of connection and all construction methods are Contractor's sole responsibility. Accuracy of information furnished, as to existing conditions, is not guaranteed by the City. Contractor, at its sole expense, must make all investigations necessary to determine locations of existing elements, which may include, without limitation, contacting U.S.A_ Alert and other private underground locating firms), utilizing specialized locating equipment and/ter hand trenching. 18. independent Contractor. Contractor is and shall at all times remain, as to the City, a wholly independent contractor. Neither the City nor any of its agents shall have control over the conduct of Contractor or any of the Contractor's employees, except as herein set forth, and Contractor is free to dispose of all portions of its time and activities which it is not obligated to devote to the City in such a manner and to such persons, firms, or corporations at the Contractor wishes except as expressly provided in this Agreement. Contractor shall have no power to incur any debt, obligation, -or liability on behalf of the City, bind the City in any manner, or otherwise act on behalf of the City as an agent. Contractor shall. not, at any time or in any manner, represent that it or any of its agents, servants or employees, are in any manner agents, servants or employees of City. Contractor agrees to pay all required taxes on amounts paid to Contractor under this Agreement, and to indemnify and hold the City harmless from any and all taxes, assessments, penalties, and interest asserted against the City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers' compensation law regarding Contractor and its employees. Contractor further agrees to indemnify and hold the City harmless from any failure of Contractor to comply with applicable workers' compensation laws. The City shall have the right to offset against the amount of any compensation due to Contractor under this Agreement any amount due to the City from Contractor as a result of its failure to promptly pay to the City any reimbursement or indemnification arising under this Section. 19. Prevailing Wages. City and Contractor acknowledge that this project is a public work to which prevailing wages apply. The Agreement to Comply with California Labor Law Requirements is attached hereto and incorporated herein by this reference. Eight hours of labor constitutes a legal day's work. 20. Workers' Compensation Insurance. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, the Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to under take self- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." 21. Subcontracting. Contractor shall adhere to all provisions of the Subletting, and Subcontracting Fair Practices Act, Public Contract Code Section 4100 el seg., which is incorporated herein by this reference. 22. NondiscriminatM Empla3nnent. Contractor shall not unlawfully discriminate against any individual based on race, color, religion, nationality, gender, sex, sexual orientation, age or condition of disability. Contractor understands and agrees that it is bound by and will comply with the nondiscrimination mandates of all statutes and local ordinances and regulations. C - A 23. Debarred, Suspended or Ineligiblentractors. Contractor shall not be debarred throughout the duration of this Agreement. Contractor shall not perform work with debarred subcontractor pursuant to California Labor Code Section 1777.1 or 1777.7. 24. Compliance with Laws. Contractor shall comply with all applicable federal, state and local laws, ordinances, codes and regulations in farce at the time Contractor performs pursuant to this Agreement. 25. Bonds. Contractor shall obtain faithful performance and payment bonds as required by law, and nothing in this Agreement shatl be read to excuse this requirement. The required forms entitled Payment Bond (Labor and Materials) and Performance Bond are attached hereto and incorporated herein by this reference. 26. Contractor's Representations. Contractor represents, covenants and agrees that: a) Contractor is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in this Agreement; b) there are no obligations, commitments, or impediments of any kind that will limit or prevent its full performance under this Agreement; c) there is no litigation pending against Contractor, and Contractor is not the subject of any criminal investigation or proceeding; and d) to Contractor's actual knowledge, neither Contractor nor its personnel have been convicted of a felony. 27. Conflicts of Interest. Contractor agrees not to accept any employment or representation during the term of this .Agreement or within twelve (12) months after completion of the work under this Agreement which is or may likely make Contractor "financially interested," as provided in Government Code Section 1490 and 87100, in any decisions made by City on any matter in connection with which Contractor has been retained pursuant to this Agreement. 28. Third Party Claims. City shall have full authority to compromise or otherwise settle any claim relating, to the Agreement at any time. City shall timely notify Contractor of the receipt of any third -party claim relating to the Agreement. City shall be entitled to recover its reasonable costs incurred in providing this notice. 29. Non -Assignability' Subcontracting. Contractor shall not assign or transfer any interest in this Agreement nor any part thereof, whether by assignment or novation, without the City's prior written consent. Any purported assignment without written consent shall be null, void, and of no effect, and Contractor shall hold harmless, defend and indemnify the City and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from or relating to any unauthorized assignment. 30. Applicable Law. The validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California's choice of law rules. Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court. 31. Attorneys' Fees. If any legal action or other proceeding, including action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with this Agreement, the prevailing, party shall be entitled to recover reasonable attorneys' fees, experts' fees, and other costs, in addition to any other relief to which the party may be entitled. 32. Titles. The titles used in this Agreement are for convenience only and shall in no way define, limit or describe the scope or intent of this Agreement or any part of it. 33. Authority. The person executing this Agreement on behalf of Contractor warrants and represents that C-5 A-5 he or she has the authority to execute this Agreement on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. 34. Entire Agreement. This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Agreement. 35. Construction. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement_ 36. Non -waiver of Terrns, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by the City of any payment to Consultant constitute or be construed as a waiver by the City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by the City shall in no way impair or prejudice any right or remedy available to the City with regard to such breach or default. 37. Notice. Except as otherwise required by law, any notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the dayof delivery if delivered by hand or overnight courier service during Contractor's or City's regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Mr. Tom Odom, Director of Public Works City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONTRACTOR: The address listed in Exhibit "B." 38. Counterparts. This Agreement maybe executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. 39. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. C-6 w o IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above written. A17 TEST: 13 yy &I - 4-' --1TA U, City Clerk Dated: r ` b.2 - C -7 CITY (] ALOE V"RD S z By. Mayor APPROVED AS TO FORM: 10 City Attorney ("CONT TOR") By: Printed Name:St<eve Kirschner Title: Vice President By. Printed Name: Kristen Paulino Title: Corporate Secretary A-7 0 0 FIRST AMENDMENT TO AGREEMENT FOR MAINTENANCE SERVICES FOR STREETS AND HIGHWAYS BETWEEN THE CITY OF RANCHO PALOS VERDES AND HARDY AND HARPER, INC. This agreement is the First Amendment to the maintenance services agreement for streets and highways between the City of Rancho Palos Verdes ("City") and Hardy and Harper Inc. ("Contractor") dated May 15, 2012 ("Agreement"). This First Amendment to the Agreement is effective as of July 1, 2015 and is being made to extend the term of the Agreement for one year. Section 1. Section 3 of the Agreement is hereby amended to read as follows: "Term. This Agreement shall commence on July 1, 2012, and shall remain in effect until the tasks described herein are completed to the City's satisfaction and approval, but in no event later than June 30, 2016, unless sooner terminated pursuant to Section 12 of this Agreement. Additionally, there shall be two (2) one-year options to renew the Agreement with the mutual written consent of both parties. If not renewed prior to the anniversary date, the Agreement may continue on a month to month basis under the same terms and conditions as this Agreement for a maximum period not to exceed six (6) months or until renewed or awarded to a new contractor, whichever is less." Section 2. Except as expressly amended by this First Amendment to the Agreement, all of the other provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date and year first above written. CITY OF RANCHO PALOS VERDES ("CITY") By: . Y ATTEST: By: _ City Cierk 1845934.1 0 1845934.1 HARDY ... . .AN -000 � /�- Printed Name: Steve Kirschner Title: Vice President Signature:g Printed Name: Kristen Paulino Title: Corporate Secretary 1W Attachment C SECOND AMENDMENT TO AGREEMENT FOR MAINTENANCE SERVICES FOR STREETS AND HIGHWAYS BETWEEN THE CITY OF RANCHO PALOS VERDES AND HARDY AND HARPER, INC. This agreement is the Second Amendment to the maintenance services agreement for streets and highways between the City of Rancho Palos Verdes ("City") and Hardy and Harper, Inc. ("Contractor") dated May 15, 2012 ("Agreement"). This Second Amendment to the Agreement is effective as of July 1, 2016 and is being made to extend the term of the Agreement for one year. Section 1. Section 3 of the Agreement is hereby amended to read as follows: "Term. This Agreement shall commence on July 1, 2012, and shall remain in effect until the tasks described herein are completed to the City's satisfaction and approval, but in no event later than June 30, 2017, unless sooner terminated pursuant to Section 12 of this Agreement. Additionally, there shall be one (1) one-year option to renew the Agreement with the mutual written consent of both parties. If not renewed prior to the anniversary date, the Agreement may continue on a month to month basis under the same terms and conditions as this Agreement for a maximum period not to exceed six (6) months or until renewed or awarded to a new contractor, whichever is less." Section 2. Section 6 of the Agreement is hereby amended to read as follows: "Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not -to -exceed amount of One Hundred Eighty Four Thousand dollars ($184,000) in accordance with the prices as submitted in Contractor's Proposal, attached hereto as Exhibit "B" and the Contractor's revised cost Proposal, attached hereto as Exhibit "C" and incorporated herein by this reference." Section 3. Except as expressly amended by this Second Amendment to the Agreement, all of the other provisions of the Agreement shall remain in full force and effect. 01203.0006/297529.1 C-1 Attachment C IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date and year first above written. ATTEST: By: City Clark 01203.0006/297529.1 CITY OF RANCHO PALOS VERDES ("CITY") By: - J Mayor C-2 k. 01203.0006/297529.1 Attachment C HARDY AND PER '6INC. ,Signature: Printed Name: Steve Kirschner Title: Vice President Signature: Printed Name: Kristen Paulino Title: Corporate Secretary C-3 ardy & Harper, Inc. C�-d�IGIGZ�� �'�i[G�GttGf' �GdF2ii'LC�•C�f3!L ;"VAIV LI('. \uIllh r 1151P.12 i;l•tt•1•I1-I,i>1 I�1\�?i•l:-s---.'.<;Cil May 17th, 2016 City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 RE: Public Works Maintenance Agreement for Streets and Right -of -Ways Dear Sean, Due to increases in the cost of labor and equipment over the term of the Public Works Maintenance Agreement for Streets and Right -of Ways, Hardy & Harper, Inc. is proposing a 5.5% increase over the original base bid item cost of $90.00 per hour for a Lead Worker, with a stake bed truck and phone. The proposed increase will raise the hourly rate to $95.00 per hour. Thank you, Steve Kirschner — Vice President C-4 AMENDMENT NO.3 TO AGREEMENT FOR CONTRACT SERVICES THIS THIRD AMENDMENT TO THE AGREEMENT FOR CONTRACT SERVICES by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation ("City") and Hardy & Harper, Inc., a California corporation ("Contractor") is effective as of the 1St day of July, 2017. RECITALS A. City and Contractor entered into that certain Agreement for Contractual Services dated May 15, 2012 ( "Agreement") whereby Contractor agreed to provide all work, labor, materials, equipment, and services for the project identified as Public Works Maintenance Labor For Streets and Rights of Way (the "Services"). B. Pursuant to Section 3 of the Agreement, the term of the Agreement was for three (3) years, ending on June 30, 2015, with an annual not -to -exceed amount of One Hundred Eighty Four Thousand dollars ($184,000), for a total value of $552,000 for the initial term. The Agreement provided for three (3), one-year options to renew, with the mutual written consent of both parties. C. On July 1, 2015, the City and Contractor exercised the first of three one-year options to renew the Agreement ("First Amendment"). The term of the Agreement was extended to June 30, 2016. The extended term increased the total value by an additional $184,000, from $552,000 to a total of $736,000. D. On July 1, 2016, the City and Contractor exercised the second of three one-year options to renew the Agreement ("Second Amendment"). The term of the Agreement was extended to June 30, 2017. The Second Amendment included a rate increase from $90.00 per hour to $95.00 per hour for a "Lead Worker, with one stake -bed truck and cellular phone." This increased the total value by an additional $184,000, from $736,000 to a total of $920,000. E. City and Contractor now desire to amend the Agreement ("Third Amendment") to exercise the third one-year option to renew the Agreement. The term of the Agreement would extend to June 30, 2018. The Third Amendment includes an annual not -to -exceed amount of One Hundred Ninety Five Thousand dollars ($195,000) for FY 17-18. The hourly rates will remain the same as they were for FY 16-17, but the increase in the not -to -exceed amount accounts for an anticipated increase in the possible hours of service for FY 17-18 from 1936 to 2052. The total value of the Agreement will increase from $920,000 to a total of $1,115,000. TERMS 1. Contract Changes. The Agreement is amended as provided herein (new text is identified in bold italics, deleted text in s#ile thr-ough). A. Section 3 of the Agreement, entitled "Term," shall be amended to read as follows: D-1 "Term. This Agreement shall commence on July 1, 2012, and shall remain in effect until the tasks described herein are completed to the City's satisfaction and approval, but in no event later than June 30, 204-72018, unless sooner terminated pursuant to Section 12 of this Agreement. Additionally there shall one (1) one year option to renew the Agreement with mutual w �..Pe:n oenon-senyt Of both patties. Additionally, if not renewed prior to the anniversary date, the Agreement may continue on a month to month basis under the same terms and conditions as this Agreement for a maximum period not to exceed six (6) months er ,mfi r -en .,oa or until awarded to a new contractor, whichever is less." B. Section 6, of the Agreement, entitled "Compensation," shall be amended to read as follows: "Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not -to -exceed amount of dollars ($184,000) One Hundred Ninety Five Thousand dollars ($195,000) for FY 17-18, in accordance with the prices submitted in Contractor's Proposal, attached hereto as Exhibit `B" and incorporated herein by reference. 2. Continuing Effect of Agreement. Except as amended by this Third Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Third Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by this Third Amendment to the Agreement. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Contractor represents and warrants to City that, as of the date of this Third Amendment, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Contractor that, as of the date of this Third Amendment, Contractor is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Third Amendment. 5. Authority. The persons executing this Third Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to 01203.0006/384251.2 -2- D-2 execute and deliver this Third Amendment on behalf of said party, (iii) by so executing this Third Amendment, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Third Amendment does not violate any provision of any other Agreement to which said party is bound. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment on the date and year first -above written. ATTEST: Emily Colborn, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP Dave Aleshire, City Attorney 01203.0006/384251.2 -3- CITY: CITY OF RANCHO PALOS VERDES, a municipal corporation Brian Campbell, Mayor CONTRACTOR: HARDY & HARPER, INC. By: Name: Title: By: Name: Title: Address: 1312 East Warner Avenue Santa Ana, CA 92705 D-3 Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY. 01203.0006/384251.2 me M11 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) On Date personally appeared before me, Here Insert Name and Title of Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public Place Notary Seal Above 01203.0006/384251.2 D-5 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) On Date personally appeared before me, Here Insert Name and Title of Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public Place Notary Seal Above 01203.0006/384251.2 D-6 ardy & Harper, Inc. aJA1f4& #4&e"f e STATE LIC. Number 215952 1312 EAST WARNER AVENUE SANTA ANA, CA 42705 (714) 444-1851 • FAX (714) 444-28DI 5/18/2017 City of Rancho Palos. Verdes 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 Att: Sean. Larvens RE: Public 'Works Maintenance Agreement for Streets and Right -of Ways Good Afternoon Sean, Hardy & Harper, Inc. agrees to hold unit prices current for the third option year of the "Public Works Maintenance Agreement for Streets and Right of Ways" with a NTE of $195.000. Sincoely, / Steve Kirschner Vice President E-1