RPVCCA_CC_SR_2012_05_15_F_PW_Maintenance_Labor_For_Streets_&_Rights_Of_Way_ContractMEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
TOM ODOM,DIRECTOR OF PUBLIC WORK~~·
MAY 15,2012 U
AWARD THREE-YEAR MAINTENANCE CONTRACT FOR:
PUBLIC WORKS MAINTENANCE LABOR FOR STREETS
AND RIGHTS OF WAY TO HARDY &HARPER INC.,
(In Support of 2012 City Council Goal #5:Review
Existing Contracts/Consultants).
CAROLYN LEHR,CITY MANAGER a9-
Staff Coordinator:Emilio Blanco,Maintenance Superintendent 83.
RECOMMENDATION
1.Award a three-year maintenance contract with (3)one-year options to renew by
mutual agreement for Public Works Maintenance Labor for Streets and Rights of
Way to Hardy and Harper Inc.,in the amount of $160,000,for the total base bid
and authorize an additional 15%contingency of $24,000 for unanticipated repairs
and emergencies for a total contract amount of $184,000.
2.Authorize the Mayor and City Clerk to execute a three-year maintenance contract
with (3)one-year options to renew by mutual agreement;to Hardy and Harper Inc,
for Public Works Maintenance Labor for Streets and Rights of Way for fiscal-year
2012/2013,2013/2014,and 2014/2015.
BACKGROUND
On November 14,2011 City Staff began the process of improving the street
maintenance specifications.This process included making the Public Works
Maintenance Labor for Streets and Rights of Way bid strictly a street maintenance bid
for Public Works.The scope of work increased technical specifications,recommended
safety for highway workers and improved Best Management Practices (BMP'S)for pot-
hole repair and sidewalk deviation patching and grinding.This process will help
improve tracking of expenses and differentiate accountability of contractors for
improved street maintenance throughout the city's roadways.
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DISCUSSION
The Public Works Maintenance Labor for Streets and Rights of Way was advertised
and sealed bids were received on May 2,2012 and opened at 10:30 a.m.respectively.
The following table summarizes the bids received:
HARDY AND HARPER INC.
EXCEL PAVING CO.
W.A.RASIC
CONSTRUCTION
$160,000
$179,000
$202,340
Hardy and Harper Inc.,is the lowest responsive bidder for the Public Works
Maintenance Labor for Streets and Rights of Way Contract.
Based on the total base bid for Public Works Maintenance Labor for Streets and Rights
of Way and compared to the current contract amount,the recommended action will
result in a total savings of $10,000,annually.
ALTERNATIVE
An alternative recommendation is to reject all bids and re-advertise the Public Works
Maintenance Labor for Streets and Rights of Way.This alternative will delay the project
by several months and may not result in obtaining lower bids.
FISCAL IMPACT
The adopted FY 2012-2013 budget provides adequate funding for the staff
recommendation.The funding source for this contract is Street Maintenance-Non
Pavement Budget Program.
The City Attorney has reviewed and approved the attached Maintenance contract
forms.
Attachments:
•Exhibit A:Contract for Public Works Maintenance Labor for Streets and
Rights of Way.
•Exhibit B:Contractor Base Bid Proposal
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'Exhibit A
PUBLIC WORKS MAINTENANCE AGREEMENT
FOR STREETS AND RIGHTS OF WAY
TillS AGREEMENT ("Agreement")is made and entered this 15th 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:
1.Scope of 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 PUBLIC 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 "Greenbook"),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 ofany conflict between the terms ofthis 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 sum 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.
3.Term.This Agreementshall commence on July 1,2012 and shall remain in effect until the tasks
described herein are completed to the City's approval,but in no event later than June 30,2015,unless
sooner terminated pursuant to Section 13 ofthis Agreement.Additionally,there shall be three (3)one-
year options to renew the Agreement with the mutual written consent of both parties.Ifnot 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.Force Majeure.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,labor
stoppages or slowdowns,freight embargoes,unusually 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.In consideration ofthe services rendered hereunder,City shall pay Contractor a notto
exceed amount of One Hundred Eighty Four Thousand dollars ($184,000)in accordance with the
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prices as submitted in Contractor's Proposal,attached hereto as Exhibit "B"and incorporated herein
by this reference.
7.Payments.City shall make payments within thirty (30)days after receipt ofan 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%)
ofthe percentage of actual work completed plus a like percentage ofthe value ofmaterial 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 fmal completion and acceptance of the
Project.However,at any time after fifty percent (50%)of the work has been completed,if the City
Council ofthe 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.
8.Substitute Security.
a.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 shall,at
the request of any subcontractor performing more than five percent (5%)ofContractor'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 ofretention 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."
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10.Audit.The City or its representative shall have the option ofinspecting 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 ofthe
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 Disputes.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 underthe 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 ofthe 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 oftermination 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 oflnsurance;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 ofthe Clayton Act (15 U.S.C.Sec.15)or under the
Cartwright Act (Chapter 2 (commencing with Section 16700)of Part 2 ofDivision 7 ofthe California
Business and Professions Code)arising from purchases ofgoods,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.Ifthe 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 II,or Class
III 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 ifthe 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
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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
firm(s),utilizing specialized locating equipment and/or 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 ofthe 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 oflabor 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 et seq.,which is incorporated herein by this
reference.
22.Nondiscriminatory Employment.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.
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23.Debarred,Suspended or Ineligible Contractors.Contractor shall not be debarred throughout the
duration ofthis 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 force 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 shall 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 ofInterest.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 1090 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 ofthe receipt ofany 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 ofthis Agreement shall be controlled
by and construed under the laws ofthe 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
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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 Terms,Rights and Remedies.Waiver by either party of anyone 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 day ofdelivery
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 may be 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 ofthis Agreement shall
continue in full force and effect.
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IN WITNESS WHEREOF,the parties hereto have executed the within Agreementthe day and year fIrst above
written.
CITY OF RANCHO PALOS VERDES
By:_
Mayor
ATTEST:
By:_
City Clerk
Dated:__'--_
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APPROVED AS TO FORM:
By:_
City Attorney
("CONTRACTOR")
By:_
Printed Name:_
Title:_
By:_
Printed Name:_
Title:_
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Exhibit B
CrTY OF RANCHO PALOS VERDES
NAME OF COMPANY:Hardy &Harper,Inc °
To the Honorable Mayor and Members of the City Council:
In compliance with the Notice Inviting Sealed Bids,the undersigned hereby agrees to
enter into a contract to furnish alf labor and equipment for the project identified as;
PUBLIC WORKS MAINTENANCE LABOR FOR STREETS AND RIGHTS OF
WAY in accordance with the specifications and plans in the Contract Documents which
are on file in the Public Works Department of the City of Rancho Palos Verdes to the
satisfaction and under the direction of the Director of Public Works at the folloWing
places and prices:
PUBLIC WORKS MAINTENANCE LABOR FOR STREETS AND RIGHTS OF WAY
BASE BID
ITEM DESCRIPTION,UNIT ESTHvlATED COST TOTAL
NO.Two employees,one truck t"IIO days per week QUANTITY PER COSTHOUR
1.Leadworker wi stakebed truck and cellula,r phone 1000 HRS $'0 $fOI@·~
2.Laborer 1000 HRS $10 $10,000
COST PER HOUR TOTAL (add items 1-2)
$"0 't,(),000 ..
~
-.
\
BASE BID TOTAL COST (add items 1.-2)TOTAL COST i 1'0 ,000.00
BASE BID TOTAL COST AMOUNT IN WORDS:
O/}(.,ttvttrl.",J 'jo,tty 1hj\JSq.,)W)1'1'J 6~
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