CC SR 20211102 G - MOU with RHE for Silver Spur Road Rehab
CITY COUNCIL MEETING DATE: 11/02/2021
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to enter into a Memorandum of Understanding (MOU)
with the City of Rolling Hills Estates for rehabilitation of Silver Spur Road.
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor to execute a MOU with the City of Rolling Hills Estates, in a
form acceptable to the City Attorney, to rehabilitate Silver Spur Road within both
cities, of which, the City of Rancho Palos Verdes’ portion of the project is generally
located between Hawthorne Boulevard and Drybank Drive.
FISCAL IMPACT: The recommended Council action will result in an expenditure of up
to $455,000 for design and construction of renovations to the portion
of Silver Spur Road within the City of Rancho Palos Verdes.
Amount Budgeted: $455,000
Additional Appropriation: None
Account Number(s): 202-400-8848-8805 ($315,000) (Gas Tax Fund –Arterial Roadway Rehabilitation/Street Improvements)
220-400-8848-XXXX ($140,000) (Measure R Fund –Arterial Roadway Rehabilitation/Various Accounts)
ORIGINATED BY: James O'Neill, Project Manager
REVIEWED BY: Ramzi Awwad, Public Works Director
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Memorandum of Understanding with Rolling Hills Estates (page A-1)
B. Capital Improvement Program budget page for the project (page B-1)
BACKGROUND AND DISCUSSION:
In December 2020, the City of Rolling Hills Estates (RHE) approached Staff with the idea
of collaborating on rehabilitating Silver Spur Road generally between Hawthorne
Boulevard and Crenshaw Boulevard that includes portions within the cities of RHE and
Rancho Palos Verdes (RPV). Based on ensuing conversations, Staff proposed a project
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and associated budget that was adopted by the City Council as part of the Capital
Improvement Program for the Fiscal Year 2021-22.
RHE has agreed to serve as the lead agency for the overall project, which includes
segments of Silver Spur Road as well as residential streets in the RHE, and RPV would
be responsible only for the portion of Silver Spur Road within RPV city limits .
The project consists of rehabilitation of the roadway includ ing replacing/resurfacing the
existing asphalt, replacing damaged curbs and gutters, and replacing pavement
markings. The project may include replacing sections of sidewalk and improving drainage,
if such improvements are determined to be needed. The general limits of the project within
RPV are Silver Spur Road between Drybank Drive and Hawthorne Boulevard.
Good road conditions, with smooth pavement, are expected by the City’s residents and
businesses, and timely maintenance reduces the overall lifecycle costs of roadway
infrastructure. Road conditions are assessed through a triennial inspection and assigned
a calculated Pavement Condition Index (PCI) rating of Very Poor (0 -40), Poor (41-59),
Fair (60-74), Good (75-85) or Very Good (86-100). This section of Silver Spur Road was
inspected in 2019 and had segments with PCI ratings ranging from 66 -70 (all within the
“Fair” category).
Tonight, Staff is presenting a Memorandum of Understanding (MOU), for the C ity
Council’s consideration, that defines the partnership agreement between RHE and RPV
(Attachment A). Key points in the MOU are as follows:
• RHE will contract for engineering, management, construction, and inspection
services
• RPV will make all decisions for the project portion in RPV
• RPV will reimburse RHE for actual project costs associated with project portion in
RPV only
• RPV will review bids for construction for the project portion in RPV, and if bids are
higher than the engineer’s estimate, RPV may elect to
o Not move forward with construction
o Reduce the scope of construction to fit the budget
o Increase the budget
• RPV will participate in plan reviews, construction inspections, and change order
authorizations for the project portion in RPV
CONCLUSION:
Staff recommends partnering with RHE on the Silver Spur Road road rehabilitation project
that benefits both cities and would result in cost savings through economies of scale. If
deemed acceptable, this recommendation is accomplished by executing the MOU with
RHE.
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ALTERNATIVES:
In addition to Staff recommendation, the following alternative action are available for the
City Council’s consideration:
1. Do not execute the MOU and give alternative direction to Staff regarding the
project.
2. Take other action as deemed appropriate by the City Council.
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MEMORANDUM OF UNDERSTANDING
SILVER SPUR ROAD REHABILITATION PROJECT
(BETWEEN CRENSHAW BLVD. AND HAWTHORNE BLVD.)
THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is effective as of ________________,
2021, and is between the City of Rolling Hills Estates (“RHE”) and the City of Rancho Palos
Verdes (“RPV”). RHE and RPV are sometimes referred to as a “Party” and collectively as the
“Parties”.
RECITALS
A. RHE intends to proceed with its FY 2021-22 Annual Street Rehabilitation
Project, which includes the rehabilitation of Silver Spur Road in the City’s commercial
district, located between Crenshaw Blvd. and Hawthorne Blvd. RHE’s portion of the
project on Silver Spur Rd. is generally stated to be located between Crenshaw Blvd and
Drybank Drive ("RHE Street Rehabilitation Project"). It should be noted that this same
project in RHE, includes other residential streets to be rehabilitated that are NOT in the
scope of this MOU. RPV’s portion of the project is generally located between Drybank
Drive and Hawthorne Blvd ("RPV Project Portion"). The RHE Street Rehabilitation
Project and RPV Project Portion are collectively referred to as the “Project.”
B. RHE has obtained three proposals for professional engineering services for
Design, Construction Management and Inspection for the Project. RHE intends to retain
the services of Willdan Engineering for the Project, as more particularly described in the
proposal ("Proposal") prepared by Willdan Engineering ("Willdan"), which is attached and
incorporated by this reference.
C. RPV agrees to pay its share of Willdan’s services for the RPV Project
Portion, including the preparation of engineered drawings, bid assistance for the Project,
construction management and inspection services to be performed by Willdan. RPV will
also be responsible to pay RHE for the actual Project costs in RPV, upon award of the
construction contract to the lowest and most responsible bidder for the Project.
D. RHE will serve as the lead agency and will be responsible for making all
final decisions for the RHE Street Rehabilitation Project. RPV will serve as the lead
agency and will be responsible for making all final decisions for the RPV Project Portion.
E. The Parties desire to work cooperatively to benefit both agencies with lower
construction bids and cost efficiencies from using the same consultant design engineer
and construction management firm and coordinating staff. Accordingly, the Parties desire to
incorporate the RPV Project Portion into the overall RHE Street Rehabilitation Project.
AGREEMENT
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NOW, THEREFORE, the Parties in consideration of the mutual promises set forth
in this MOU, agree as follows:
1. Purpose of Memorandum of Understanding. The purpose of this MOU is for
the Parties to work cooperatively to incorporate the RPV Project Portion into the RHE
Street Rehabilitation Project. RPV will provide funds to RHE for all costs associated with
designing, constructing, coordinating with utilities, inspecting and managing, and
administering bids and payments for the RPV Project Portion.
2. Responsibilities of the Parties.
2.1 RHE. RHE agrees to do the following:
(a) Provide design plans and specifications, inspection services,
construction management services, utility coordination, and community outreach services
for the RPV Project Portion.
(b) Prepare bid documents including bid schedule, contract, general
conditions, and special provisions for the purpose of entering into a construction contract for
the Project, subject to reasonable review and approval by RPV for the final RPV Project
Portion only, in accordance with Section 2.2(b) below.
(c) Advertise for bids and award a construction contract that includes
the RPV Project Portion (as an Additive Alternative Bid, in the event that RPV chooses not to
move forward with construction of their portion of the Project) as part of the RHE Street
Rehabilitation Project.
(d) Notify RPV of the lowest responsive and responsible bidder for
the RHE Street Rehabilitation Project and provide an itemized bid abstract of costs for the RPV
Project Portion. If the portion of the bid for the RPV Project Portion is greater than the
engineer's estimate submitted by Willdan, RHE will consult with RPV on various options such
as authorizing an increased budget or reducing the scope of work via a negotiated change
order with the bidder in order to allow RHE to proceed with awarding the contract and to
prevent a delay in the start of construction activities.
(e) Require the lowest responsive and responsible bidder for the
RHE Street Rehabilitation Project that is awarded the contract (the "Project Contractor") to
indemnify and hold harmless both RPV, its officers, employees, and agents and RHE, its
officers, employees, and agents to the same extent; require the Project Contractor to obtain
an insurance policy that names RPV, its officers, employees, and agents as additional
insureds for general and automotive liability policies and to waive any subrogation rights
against RPV, its officers, employees, and agents to the same extent RHE requires such
contractor to obtain a policy that adds RHE as an additional insured and waives subrogation
rights as to RHE; and require Project Contractor to obtain any insurance policy required by
law, such as workers compensation insurance.
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(f) Administer the RHE Street Rehabilitation Project design and
construction contracts.
(g) Invite RPV to participate in inspections and walkthroughs and
meetings with the Project Contractor during the construction of the RPV Project, and to work
with Project Contractor in good faith to address any of RPV's concerns about the work
pertaining to the RPV Project Portion.
(h) Provide RPV with requested information from Project Contractor's
accounts and records and RHE's accounts and records, within five business days of the
request, to identify and account for all costs pertaining to the RPV Project Portion to assure
proper accounting for all funds.
(i) Deduct only RPV-approved construction contract and
construction management costs, including inspection services and community outreach
services, relating to the RPV Project Portion from RPV's deposits with RHE.
(j) Confer with RPV without delay on all change orders and
construction contract claims associated with the RPV Project Portion and obtain RPV's
approval, which will not be unreasonably withheld, as to all such change orders and any
payments of construction contract claims.
(k) Provide RPV with a monthly progress report, which includes at
a minimum a final pay estimate of costs for the RPV Project Portion and a monthly
balance update for the account in which RPV deposits funds with RHE for purposes of the
RPV Project Portion that reflects the amount and substance of deductions by RHE.
(I) Refund RPV the remainder of any deposit (except 5%
retention held for construction contracts) within 14 days of substantial completion of the
RPV Project Portion.
(m) Remain responsible for its own costs for the RHE Street
Rehabilitation Project.
(n) Work cooperatively and in good faith with RPV to implement
the RHE Street Rehabilitation Project.
2.2 RPV. RPV agrees to do the following:
(a) Provide RHE and its contractors with temporary access to
RPV's right of way and easements for performance of the RPV Project Portion, while
retaining all rights, obligations, and liabilities with respect to the facilities subject to the
RPV Project Portion except as otherwise set forth in this MOU. RPV may reasonably
condition such temporary access as it deems necessary.
(b) Review bids, and if the total of the bid items for the RPV
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Project Portion exceeds the engineer's estimates, direct RHE which option RPV would like
to proceed with, either authorizing an increased budget or reducing the scope of work via a
negotiated change order, within two business days in order to allow RHE to proceed with
awarding the contract without any delay.
(c) Provide direction and authorization to RHE on how to proceed
with change orders and construction contract claims as soon as possible, but no later
than three business days after request by RHE.
(d) Submit an initial deposit in the amount of $42,506,
representative of 100% of the Proposal for Professional Engineering Services for Design,
Construction Management and Observation as provided by Willdan for the RPV Project
Portion, within 14 days after receipt of invoice from RHE. Submit payment for 100% of
the bid award amount to be agreed upon by RPV for the construction costs for the RPV
Project Portion within 14 days after receipt of invoice from RHE, which invoice will be
submitted at the time of the notice of award of contract.
(e) Review monthly progress reports from RHE for the RPV
Project Portion and provide any requested changes or approvals within two business days
unless RPV has requested information from Project Contractor's accounts and records or
RHE's accounts and records in which case RPV will provide any requested changes or
approvals within two business days of receipt of the requested information.
(f) Attend pre-construction meetings and construction meetings
with RHE and the Project Contractor wherein the RPV Project Portion is to be discussed.
(g) Submit any additional, approved costs for Willdan's services
or construction costs within 14 days after receipt of invoice from RHE.
(h) Provide written confirmation to RHE that the RPV Project
Portion is substantially complete.
(i) Provide written confirmation directly to the Project Contractor
that RPV accepts the completed work for the RPV Project Portion.
(j) Work cooperatively and in good faith with RHE to implement
the RHE Street Rehabilitation Project.
3. Mutual Indemnification.
3.1 RPV hereby agrees to indemnify, defend, assume all liability for and
hold harmless RHE and its officers, employees, agents and representatives, to the
maximum extent allowed by law, from all actions, claims, suits, penalties, obligations,
liabilities, damages to property, costs and expenses (including without limitation any fines,
penalties, judgments, actual litigation expenses and attorneys' fees), environmental claims
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or bodily and/or personal injuries or death to any persons ("Claims Against RHE"), arising
out of or in any way connected to the negligence or willful misconduct of RPV, its officers,
agents or employees in connection with or arising from any of the activities under this MOU,
except to the extent Claims Against RHE are indemnified by the contractors pursuant to
Section 2.1(e) above.
3.2 RHE hereby agrees to indemnify, defend, assume all liability for and
hold harmless RPV and its officers, employees, agents and representatives, to the
maximum extent allowed by law, from all actions, claims, suits, penalties, obligations,
liabilities, damages to property, costs and expenses (including without limitation any fines,
penalties, judgments, actual litigation expenses and attorneys' fees), environmental claims
or bodily and/or personal injuries or death to any persons ("Claims Against RPV"), arising
out of or in any way connected to the negligence or willful misconduct of RHE, its officers,
agents or employees in connection with or arising from any of the activities under this MOU,
except to the extent Claims Against RPV are indemnified by the contractors pursuant to
Section 2.1(e) above.
4. No Waiver. The waiver by any Party of any breach or violation of any
requirement of this MOU will not be deemed to be a waiver of any such breach in the
future, or of the breach of any other requirement of this MOU.
5. Notices. Any notice or other communication ("Notice") which either Party may
desire to give to any other Party under this MOU must be in writing and may be given by any
commercially acceptable means, including via first class Certified Mail, personal delivery or
overnight courier, to the Party to whom the Notice is directed at the address of the Party as set
forth below, or at any other address as that Party may later designate by Notice. Any Notice
shall be deemed received immediately if delivered by hand, on the third day from the date it is
postmarked if delivered by first-class mail, Certified and postage prepaid, return receipt
requested, and on the next business day if sent via nationally recognized overnight courier.
RHE: City of Rolling Hills Estates
4045 Palos Verdes Drive North
Rolling Hills Estates, CA 90274
Attention: City Manager
RPV: City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
Attention: City Manager
6. Interpretation. This MOU will be interpreted, construed, and governed according
to the laws of the State of California. Each Party has had the opportunity to review this MOU
with legal counsel. The Agreement will be construed simply, as a whole, and in accordance with
its fair meaning. It will not be interpreted strictly for or against either party.
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7. Third-Party Beneficiaries. Nothing contained in this MOU will be construed to
create any rights in third parties and the Parties do not intend to create such rights.
8. Attorneys' Fees. In the event that any Party commences legal action of any kind
or character to either enforce the provisions of this MOU or to obtain damages for breach
thereof, the prevailing party in such litigation will be entitled to all costs and reasonable
attorneys' fees incurred in connection with such action.
9. Severability. If any provision of this MOU, or any portion thereof, is found by
any court of competent jurisdiction to be unenforceable or invalid for any reason, such
provision will be severable and will not in any way impair the enforceability of any other
provision of this MOU.
10. Amendment of MOU. This MOU may be amended at any time by mutual
agreement of the Parties. Any amendment must be in writing and signed by both Parties.
11. Entire Agreement. This MOU constitutes the entire agreement between the Parties
relating to the subject of this MOU and supersedes all previous agreements, promises,
representations, understandings and negotiations, whether written or oral, among the Parties
with respect to the subject matter hereof.
[Signatures on the following page.]
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THE UNDERSIGNED AUTHORIZED REPRESENTATIVES OF the Parties hereby
execute this Agreement as follows:
CITY OF ROLLING HILLS ESTATES, a
municipal corporation
By: ________________________________
Greg Grammer, City Manager
Attest:
By: ________________________________
Lauren Pettit, City Clerk
CITY OF RANCHO PALOS VERDES, a
municipal corporation
By: _________________________________
Eric Alegria, Mayor
Attest:
By: ____________________________________
Teresa Takaoka, City Clerk
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FY2021-22 Capital Improvement Program
8800 Series Right-of-Way Improvements Project Code: 8848
Pavement Management Program – Arterial Roadway Rehabilitation
Silver Spur Road (South of Hawthorne Boulevard)
As part of the Arterial Roadways Rehabilitation Program, this project
consists of rehabilitating the section of Silver Spur Road, from Hawthorne
Boulevard to the city limit, and consist of:
‐ Resurfacing the existing asphalt
‐ Replacing damaged asphalt
‐ Replacing damaged curbs, gutters and sidewalks
‐ Replacing pavement markings
‐ Improving drainage (if needed)
Project Cost Estimates
Prior FYs FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY TBD Totals
Planning N/A $0 $0 $0 $0 $0 $0 $0
Engineering N/A $45,000 $0 $0 $0 $0 $0 $45,000
Environmental N/A $0 $0 $0 $0 $0 $0 $0
Management N/A $20,000 $0 $0 $0 $0 $0 $20,000
Construction N/A $320,000 $0 $0 $0 $0 $0 $320,000
Contingency N/A $35,000 $0 $0 $0 $0 $0 $35,000
Inspection N/A $35,000 $0 $0 $0 $0 $0 $35,000
N/A $455,000 $0 $0 $0 $0 $0 $455,000
Funding
202 (Gas Tax) N/A $315,000 $0 $0 $0 $0 $0 $455,000
220 (Meas. R) N/A $140,000 $0 $0 $0 $0 $0 $455,000
N/A $455,000 $0 $0 $0 $0 $0 $455,000
Estimated annual operating cost None
Estimated Schedule:
Engineering and Construction in Fiscal Year 2021-22
Project Location Map Background and Justification:
Good road conditions with smooth pavement are expected by the City’s
residents and businesses.
Timely maintenance reduces the overall lifecycle costs of roadway
infrastructure.
Road conditions are assessed through a triennial inspection and assigned
a calculated Pavement Condition Index (PCI) rating of Very Poor (0‐40),
Poor (41‐59), Fair (60‐74), Good (75‐85) or Very Good (86‐100)
This section of road was inspected in 2019 and had segments with PCI
ratings ranging from 66 to 70 (all within the “Fair” category).
This project will be included in a larger project, in which the City
will partner with Rolling Hills Estates and a segment in their city, to
realize cost savings through economies of scale.
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