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RPVCCA_CC_SR_2014_08_19_H_Hardy_and_Harper_Roadway_Maintenance_AmendmentCrTYOF RANCHO PALOS VERDES MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR & CITY COUNCIL MEMBERS MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS "ii() AUGUST 19, 2014 APPROVE THE FIRST AMENDMENT TO THE AGREEMENT WITH HARDY AND HARPER, INC., FOR ROADWAY MAINTENANCE (SUPPORTS 2014 CITY COUNCIL GOAL #4: GOVERNMENT EFFICIENCY, ACCOUNTABILITY, FISCAL CONTROL, TRANSPARENCY, AND OVERSIGHT) CAROLYNN PETRU, ACTING CITY MANAGER~ Project Manager: Melissa Countryman, Associate Engineer ('(IAV RECOMMENDATION 1. Approve the first amendment to the agreement for one fiscal year extension retroactively effective July 1, 2014, to June 30, 2015, with Hardy and Harper, Inc., for roadway maintenance services. 2. Authorize the Mayor and City Clerk to execute the first amendment to the agreement with Hardy and Harper Inc., for roadway maintenance services. BACKGROUND The City Council awarded a Maintenance Contract to Hardy and Harper, Inc. in May 2009 forthe purpose of providing roadway maintenance services. Some of the services included in this contract are: • Patching potholes • Storm drain inlet and outlet maintenance • Sidewalk maintenance H-1 The original contract had an initial term of five years with the option for the City and Contractor to extend the Agreement three times beyond the initial term of the contract one year at a time based on a mutual, written agreement. Accordingly, the original contract expired on June 30, 2014 and Staff is recommending extending the contract for an additional one year period ending June 30, 2015. DISCUSSION In October 2011, City Council awarded a separate contract to Hardy and Harper, Inc. for the performance of roadway repair work within the landslide area on Palos Verdes Drive South, since repair methods needed in that specific area had changed due to the unique characteristics of the landslide area. So from that point forward, the landslide roadway repair work was no longer performed as part of this roadway maintenance contract that was awarded in May 2009. Therefore, this adjustment to the contract scope of services is noted in this first amendment to the contract, in addition to the one-year extension to the term of the agreement. Accordingly, this contract will continue to be used for roadway maintenance for all other City-maintained public streets outside of the landslide roadway repair area. CONCLUSIONS Hardy and Harper, lnc.'s roadway maintenance prices are acceptable and have not increased since the City executed the roadway maintenance contract in 2009. The quality of the work they perform is outstanding, and the timeliness of the service they provide is exceptional. Accordingly, Staff recommends the approval of the first amendment in accordance with the current agreement. Staff requests the City Council to approve the first amendment to Hardy and Harper, Inc. for roadway maintenance services which will extend the original agreement period to June 30, 2015; and Staff requests the City Council authorize the Mayor and City Clerk to execute the first amendment to the agreement with Hardy and Harper, Inc., for roadway maintenance services. ALTERNATIVE ACTION Request Staff to advertise this contract to receive new bids. Staff does not believe that advertising will result in lower prices. Furthermore, advertising this contract will cause significant delay in the performance of roadway repair work. FISCAL IMPACT The proposed FY14-15 roadway maintenance services budget expenditure of $245,000 is included in the FY14-15 budget. The funding source for this contract is included in Street Maintenance-Non Pavement Budget Program. Attachments: Attachment A) Hardy and Harper Contract for Roadway Maintenance FY09-10 through FY13-14 Attachment 8) First Amendment to Agreement with Hardy and Harper for Roadway Maintenance H-2 ATTACHMENT A . ... . H-3 ) f. CITY OF RANCHO PALOS VERDES CONTRACT FOR: Roadway Maintenance for Fiscal Years 2009 -2010 through 2013-2014 THIS AGREEMENT is made and entered this ).J1J day of May, 2009, by and between the CITY OF RANCHO PALOS VERDES, hereinafter referred to as "City" and Hardy & Harper, Inc., hereinafter referred to as "Contractor." WITNESSETH: WHEREAS, Contractor and Contractor's Surety are providing the bonds attached hereto and incorporated by this reference, and WHEREAS, City desires to contract with Contractor to perform the services detailed in this contract, including the Proposal, and WHEREAS, Contractor has represented that it is fully qualified to assume and discharge such responsibility; NOW, THEREFORE, the parties hereto do agree as follows: 1. Scope of Services. City hereby employs Contractor to perfonn the work and provide the services and materials for the project identified as: Roadway Maintenance for Fiscal Years 2009 -2010 through 2013-2014, as described in these Plans and Specifications, attached hereto and incorporated herein by this reference; including miscellaneous appurtenant work. Such work shall be performed in a good and workmanlike manner, under the terms as stated herein and in these Plans and Specifications, and in accordance with the latest edition of the Joint Cooperative Committee, Southern California Chapters of the American Public Works Association and the Associated General Contractors of America, document entitled "Standard Specifications." In the event of any conflict between the terms of this agreement and any of the above-referenced documents, the terms of this agreement shall be controlling. The term of this contract shall be five (5) years with up to three (3) mutually agreed one (1) year extensions. 2. Compensation. In consideration of the services rendered hereunder, Contractor shall be paid according to the prices as submitted on the Bid Sheet of the Proposal, attached hereto as a part of these Plans and Specifications and in accordance with the Special Provisions. 3. Indc:jpendent Contractor. It is specifically understood and agreed by all parties hereto that Contractor is, for the purposes of this Agreement, an independent contractor and not an employee of the City. Accordingly, Contractor shall not be deemed the City's employee for any purpose whatsoever. Contractor shall not incur or have the power to incur any debt, obligation or liability whatever for or against City. 4. Assignment. This agreement may not be assigned by Contractor, in whole or in part, without the prior written consent of City. 5. Termination. This Agreement may be canceled by City at any time without penalty upon thirty (30) days' written notice. In the event of termination without fault of Contractor, City shall pay Contractor for all services rendered prior to date of termination, and such payment shall be in full satisfaction of all services rendered hereunder. H-4 \ ·•.\ 6. Worker's 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 3100 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake 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." 7. General Rate of Per Diem Wages. Pursuant to the Labor Code of the State of California, the Director of Industrial Relations has determined the general prevailing rate of wages and employer payments for health and welfare, vacation, pension and similar purposes applicable to the work to be done. This rate and scale are on file with the Director of Public Works and copies will be made available to any interested party on request. The Contractor to whom the contract is awarded, and the subcontractors under him must pay not less than these rates for this area to all workers employed in the execution of this contract. This contract is subject to the provision of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of ·the California Public Contract Code regarding the resolution of public works claims ofless than $375,000. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the contractor, for the response to such claims by the contracting public agency, for a mandatory meet and confer conference upon the request of the contractor, for mandatory non-binding mediation in the event of litigation is commenced, and for mandatory judicial arbitration upon the failure to resolve the dispute through mediation. This contract hereby incorporates the provisions of Article 1.5 as though fully set forth herein. 8. Suit; Recovery of Attorney Fees & Costs. Should either party bring any action to protect or enforce its rights hereunder, the prevailing party in such action shall be entitled to recover, in addition to all other relief, its reasonable attorneys fees and court costs. 9. Price Adjustments. The unit prices listed in the proposal sheets shall be applicable for the period from July 1, 2009 through June 30, 2010. Each July 1 the prices shall be increased by the Producer Price Index for Finished Goods for Los Angeles. IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above written. ::OF~~ Chairman H-5 ATTACHMENT B H-6 First Amendment to Agreement between The City of Rancho Palos Verdes and Hardy and Harper, Inc. This agreement is the first amendment to the Roadway Maintenance Project between the City of Rancho Palos Verdes ("CITY") and Hardy and Harper, Inc. ("CONTRACTOR"), dated May 5, 2009 ("Agreement"). This first amendment is retroactively effective as of July 1, 2014, and is being made to extend the term of the Agreement for one fiscal year. Section 1 . Section 1 of the Agreement is hereby amended to read as follows: "Scope of Services. City hereby employs Contractor to perform the work and provide t~e services and materials for the project identified as: Roadway Maintenance for Fiscal Years 2009-2010 through 2013-2014, as described in these Plans and Specifications, incorporated herein by this reference, including miscellaneous appurtenant work. As of July 1, 2014, any portion of the incorporated Plans and Specifications . regarding roadway repair work in the landslide area on Palos Verdes Drive South is omitted from the scope of service for this Agreement, and Contractor shall no longer complete that particular work under this Agreement. All work completed under this Agreement shall be performed in a good and workmanlike manner, under the terms as stated herein and in these Plans and Specifications, and in accordance with the 2009 edition of The Standard Specifications for Public Works Construction, which is incorporated herein by this reference. In the event of any conflict between the terms of this Agreement and any of the above-referenced documents, the terms of this Agreement shall be controlling. This Agreement shall commence on July 1, 2009, and shall expire on June 30, 2015, unless sooner terminated pursuant to Section 5 of this Agreement. Additionally, there are two (2) one-year options to extend the Agreement for FY2015-2016 and FY2016-2017 with the mutual written consent of both parties." Section 2. Section 9 of the Agreement is hereby amended to read as follows: "Price Adjustments. The unit prices listed in the proposal sheets shall be applicable for the period from July 1, 2009, through June 30, 2015. Each July 1st, the prices may be increased by the Producer Price Index for Finished Goods for Los Angeles." Section 3. Except as expressly amended by this amendment to the Agreement, all other provisions of the Agreement shall remain in full force and effect as written in the Agreement. Page 1 of2 H-7 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of August 19, 2014. ATTEST: City Clerk CITY OF RANCHO PALOS VERDES ("CITY") By: ___________ _ Mayor HARDY AND HARPER, INC. ("CONTRACTOR") Signature:---------- Printed Name:-------- Title:----------- Signature:---------- Printed Name: _______ _ Title:----------- Page 2 of2 H-8