CC SR 20180619 D - Landslide Rd Maint ExtRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/19/2018
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to approve the third amendment to the agreement
between the City of Rancho Palos Verdes and Hardy & Harper, Inc., for Palos Verdes
Drive South Landslide Road Maintenance.
RECOMMENDED COUNCIL ACTION:
(1) Approve the Third Amendment to the Agreement; and,
(2) Authorize the Mayor and City Clerk to execute the Third Amendment to the
Agreement with Hardy & Harper Inc., for Palos Verdes Drive South Landslide
Road Maintenance extending the term of the agreement to June 30, 2019,
subject to approval as to form by the City Attorney.
FISCAL IMPACT: This work is included in the proposed FY18-19 municipal budget.
Amount Budgeted: $600,000
Additional Appropriation: None requested
Account Number(s): 215-400-8302-8010 ($18,000)
215-400-8302-8010 ($582,000)
ORIGINATED BY: Ron Dragoo, PE, Principal Engineer
REVIEWED BY: Elias Sassoon, PE Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Agreement with Hardy & Harper, Inc. (page A-1)
B. Draft Third Amendment to Agreement (page B-1)
C. Second Amendment to Agreement (page C-1)
D. First Amendment to Agreement (page D-1)
BACKGROUND AND DISCUSSION:
On October 4, 2011, the City Council authorized an agreement (“Agreement”) with
Hardy & Harper, Inc. (“Contractor”) for the maintenance of Palos Verdes Drive South
through the active landslide area (Attachment A). The annual value of the contract was
$491,375.00. The First Amendment, which was effective July 1, 2016, extended the
term for one year (Attachment D). The Second Amendment (“Second Amendment”) to
the Agreement between the City and the Contractor, was effective July 1, 2017, and
extended the term for one additional year (Attachment C). The proposed Third
Amendment (“Third Amendment”) to the Agreement between the City and the
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Contractor, if approved, will be effective July 1, 2018, and will extend the term for one
additional year (Attachment B). There are three (3) 1-year extensions available under
the Agreement, and Staff recommends approval of this third and final extension.
The executed contract value for the base years of this agreement was $2,456,875,
with an annual not-to-exceed amount of $491,375 (the total actual expenditure on
the base years of the agreement was $2,446,339). Final expenditures this year are
anticipated to equal the budget authorization for FY17-18 of $582,000. It is
expected that the entire amount budgeted for this work in FY18-19 will be expended
to repair Palos Verdes Drive South within the active landslide area due to
movement associated with the rains this past winter and the resultant increased
landslide movement.
At the current rate, the potential contract value is $4,226,875 if all three, one-year
options were authorized at the current annual not-to-exceed amount. The proposed
amendment will authorize the not-to-exceed amount of $600,000 for FY18-19 which
is within the proposed budget amount of $600,000.
The prices bid to perform this work in 2011 were very competitive, so Hardy &
Harper requested an adjustment to the rates proposed in their 2011 proposal, which
the City Council approved through the Second Amendment.
Staff has 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 work performed and is flexible in
addressing community needs. Staff recommends approval of the Third Amendment
to the Agreement with Hardy & Harper, Inc., which will extend the term for one year,
through June 30, 2019. The funding source for the contract is within the
“Infrastructure Improvements Department, Proposition C” budget program and
included in the FY18-19 proposed budget.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative action is available for
the City Council’s consideration:
1. Direct Staff to advertise the project and receive proposals at current
construction rates for the work. Staff does not recommend this alternative.
The current pricing is based on bids received in 2011 (modified to
accommodate costs associated with the Chandler landfill closure) and
which appear to be lower than the current prices being bid on other
projects with similar work items. As such, there is uncertainty as to
whether or not a better (or lower) cost would be received.
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A-1
A-2
A-3
A-4
A-5
A-6
AMENDMENT NO. 3
TO AGREEMENT FOR CONTRACTUAL SERVICES
THIS AMENDMENT TO THE AGREEMENT FOR CONTRACTUAL SERVICES
(“Amendment”) by and between the CITY OF RANCHO PALOS VERDES (“City”) and
HARDY AND HARPER, INC., a California corporation (“Contractor”) is effective as of the 19th
day of June, 2017.
RECITALS
A. City and Contractor entered into that certain Agreement for Contractual Services
dated October 4, 2011 (“Agreement”) whereby Contractor agreed to provide Landslide Road
Maintenance Services for Rancho Palos Verdes Drive South.
B. On July 1, 2016, the City and Contractor entered into that certain Amendment No.
1 (“First Amendment”) to the Agreement in order to extend the term of the Agreement by one
year, to expire on June 30, 2017 and to increase the Contract Sum to $2,976,875.
C. On July 1, 2017, the City and Contractor entered into that certain Amendment No.
2 (“Second Amendment”) to the Agreement in order to extend the term of the Agreement by one
year, to expire on June 30, 2018 and to increase the Contract Sum to $3,626,875. On June 20,
2017, the City approved an increase in the bid prices from 2011 due to the fact Chandlers dumpsite
has closed, and Contractor has increased costs due to this closure. Specifically, the increases are
25% for items 1-1 through 1-5, and 45% for the removal portion of items 1-6 through 1-9.
E. City and Contractor now desire to enter into this Amendment No. 3 to the
Agreement (“Third Amendment”) to extend the term of the Agreement until June 30, 2019,
establish a not-to-exceed amount for this extended term of $600,000, and increase the total
Contract Sum to $4,226,875.
TERMS
1. Contract Changes. The Agreement is amended as provided herein (new text is
identified in bold italics, deleted text in strikethrough).
THE RATE INCREASE WAS APPROVED IN AMENDMENT 2 - I
REFERENCED THE APPROVAL ABOVE, I DON’T THINK IT IS NEEDED IN THIS
AMENDMENT. PLEASE ADVISE IF THE LANGUAGE IS NEEDED IN THIS
AMENDMENT.
(a) Section 2 “Compensation” is hereby amended as follows:
“Compensation. In consideration of the services rendered hereunder, Contractor
shall be paid according to the prices submitted in the Bid Sheet of the Proposal, attached
hereto as a part of these Plans and Specifications and in accordance with the Special
Provisions. However, for Type 1 services provided from July 1, 2017, until June 30, 2018,
Contractor shall be paid according to the prices set forth in Exhibit “A” to Amendment
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01203.0006/383882.1 -2-
No. 2 to this Agreement. Total compensation for the services provided under this
Agreement shall not exceed Two Million Nine Hundred and Seventy-Six Thousand Eight
Hundred and Seventy-Five Dollars ($2,976,875) Three Million Six Hundred Twenty Six
Thousand Eight Hundred Seventy Five Dollars ($3,626,875) (“Contract Sum”). Total
compensation for the services provided from July 1, 2016, until June 30, 2017, shall not
exceed Five Hundred and Twenty Thousand Dollars ($520,000). Total compensation for
the services provided from July 1, 2017, until June 30, 2018, shall not exceed Six
Hundred Thousand Dollars ($600,000).”
(b) Section 10 “Term” is hereby amended as follows:
“Term. This Agreement shall commence on October 4, 2011, 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, 201789, unless sooner terminated pursuant to Section 5
of this Agreement. Additionally, this is the final renewal to the there shall be two (2) one
(1) one-year options to renew the Agreement at the existing rates with the mutual written
consent of both parties. If not renewed prior to the June 30, 201789, the Agreement may
continue on a month-to-month basis under the same terms and conditions for a maximum
period not to exceed six (6) months or until renewed or awarded to a new contractor,
whichever is less.”
2. Continuing Effect of Agreement. Except as amended by this Agreement, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after
the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall
mean the Agreement, as amended by this 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 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 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 Amendment.
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5. Authority. The persons executing this Agreement on behalf of the parties hereto
warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute
and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party
is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement
does not violate any provision of any other Agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and year first-above written.
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
____________________________________
Brian Campbell, Mayor
ATTEST:
_________________________________
Emily Colborn, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
_________________________________
Dave Aleshire, City Attorney
CONTRACTOR:
HARDY AND HARPER, INC., a California
corporation
By: ________________________________
Name: Insert
Title: Insert
By: ________________________________
Name: Insert
Title: Insert
Address: ____________________________
______________________________
______________________________
Two corporate officer signatures required when Contractor 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. CONTRACTOR’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 CONTRACTOR’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
STATE OF CALIFORNIA )
COUNTY OF XXXX )
On ______________________ before me,
Date Here Insert Name and Title of Officer
personally appeared
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
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.
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01203.0006/383882.1
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
STATE OF CALIFORNIA )
COUNTY OF XXXX )
On ______________________ before me,
Date Here Insert Name and Title of Officer
personally appeared
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
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.
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01203.0006/383882.1
EXHIBIT “A”
BID PRICES FOR TYPE ONE ITEMS OF WORK FROM JULY 1, 2017 TO JUNE 30, 2018
ITEM
NO.
DESCRIPTION ESTIMATED
QUANTITY
UNIT UNIT PRICE EXTENDED
AMOUNT
1-1 4” Asphalt remove and
reconstruct per location (1-500
SF)
5,500 SF 6.125 33,687.50
Per additional inch in depth of
asphalt removal and
replacement (1-500 SF)
2,000 SF 1.25 2,500
1-2 4” Asphalt remove and
reconstruct per location (501-
1000 SF)
5,500 SF 5.125 28,187.50
Per additional inch in depth of
asphalt removal and
replacement (501-1000 SF)
2,000 SF 1.25 2,500
1-3 4” Asphalt remove and
reconstruct per location (1,001-
2,000 SF)
5,500 SF 4.50 24,750
Per additional inch in depth of
asphalt removal and
replacement (1,001-2,000 SF)
2,000 SF 1.25 2,500
1-4 4” Asphalt remove and
reconstruct per location (>2,000
SF)
4,000 SF 3.75 15,000
Per additional inch in depth of
asphalt removal and
replacement (>2,000 SF)
1,000 SF 2.50 2,500
1-5 AC Cold Milling less than 3” 5,000 SF 1.25 6,250
AC Fill less than 3” 5,000 SF 4.125 20,625
1-6 AC Cold Milling greater than
3” to 6”
5,000 SF 1.45 7,250
AC Fill greater than 3” to 6” 5,000 SF 4.30 21,500
1-7 AC Cold Milling greater than
6” to 8”
3,500 SF 2.03 7,105
AC Fill greater than 6” to 8” 3,500 SF 5.00 17,500
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1-8 AC Cold Milling greater than
8” to 10”
3,500 SF 2.90 10,150
AC Fill greater than 8” to 10” 3,500 SF 6.30 22,050
1-9 AC Cold Milling greater than
10” to 12”
3,500 SF 4.06 14,210
AC Fill greater than 12” 3,500 SF 7.00 24,500 (262,765)
1-10 Skin Patching
Up to 2”
50,000 SF 2.10 105,000.00
1-11 Traffic Striping & Raised
Pavement Markers
8 EA 2,500.00 20,000.00
1-12 Full day flagging operations 8 EA 1,800.00 14,400.00
1-13 Half day flagging operations 8 EA 900.00 7,200.00
1-14 Changeable Message Sign 5 EA 150.00 750.00
1-15 Flowable Fill (sand/concrete
slurry)
20 YD 50.00 1,000
Subtotal Type One Work 411,115
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C-1
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
D-1
D-2
D-3
D-4
D-5