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Home My WebLink About12 - Amendment No. One with Hardy & Harper, Inc. for On -Call Asphalt Repair ServicesTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report July 9, 2019 Agenda Item No. 12 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Micah Martin, Deputy Director of Public Works — Municipal Operations Division mmartin(a)_newportbeachca.gov PHONE: 949-644-3059 TITLE: Amendment No. One with Hardy & Harper, Inc. for On -Call Asphalt Repair Services ABSTRACT: Staff utilizes on-call contractors to perform asphalt repair services in order to keep the City's roadways safe and in good condition. At the July 11, 2017 City Council meeting, Council approved two (2) agreements for asphalt repair services with Hardy & Harper, Inc. and NPG, Inc. Staff now requests an amendment to the current agreement with Hardy & Harper to increase the total not -to -exceed to $600,000 as well as extend the contract end date to June 26, 2022. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to the current on-call maintenance/repair services agreement with Hardy & Harper, Inc. to increase the not -to -exceed amount by $400,000 for a total amount not -to -exceed $600,000, extend the term of the agreement to June 26, 2022, and authorize the Mayor and City Clerk to execute the amendment. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for these services. It will be expensed to various operating or Capital Improvement Program budget accounts in the Public Works Department associated with the required work. 12-1 Amendment No. One with Hardy & Harper, Inc. for On -Call Asphalt Repair Services July 9, 2019 Page 2 DISCUSSION: On July 11, 2017, the former General Services Department brought an agreement before City Council for asphalt repair services with Hardy & Harper, Inc. The staff report for that agreement stated that the agreement would be for a term of three years with a total amount not -to -exceed $200,000 per year, however, the agreement itself stated just a total not -to -exceed amount of $200,000, missing the language that indicated "per year." Due to this staff error, staff now seeks to remedy this oversight and increase the not -to -exceed amount to the originally desired total of $600,000. Hardy & Harper has a history of working with the City prior to their current agreement, as they also held a contract from 2013-2015 for asphalt repair services and currently hold a five-year on-call agreement for sidewalk grinding services with the City. This current on- call agreement for asphalt repair services includes asphalt paving, asphalt overlay, pothole patching, seal coating, crack filling and emergency repairs, all of which are necessary to ensure the City's roadways remain safe and in excellent condition. In order to complete necessary work around the City and continue to provide the current level of asphalt patching and maintenance service for the City's thoroughfares, staff requests City Council approve Amendment No. One with Hardy & Harper, Inc. to increase the contract authority by $400,000, for a total amount not -to -exceed $600,000, and extend the term of the agreement to June 26, 2022. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A —Amendment No. One 12-2 ATTACHMENT A AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH HARDY & HARPER, INC. FOR ASPHALT REPAIR SERVICES THIS AMENDMENT NO. ONE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 9th day of July, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and HARDY & HARPER, INC, a California corporation ("Contractor"), whose address is 1312 East Warner Avenue, Santa Ana, CA, 92705 and is made with reference to the following: RECITALS A. On June 27, 2017, City and Contractor entered into an On -Call Maintenance/Repair Services Agreement ("Agreement") for Contractor to perform on-call maintenance and/or repair services for City ("Project"). B. The parties desire to enter into this Amendment No. One, to extend the term of the Agreement to June 26, 2022, increase the total compensation, and update the Administration, Conflicts of Interest, Notices and Claims Section. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on June 26, 2022, unless terminated earlier as set forth herein." 2. COMPENSATION TO CONTRACTOR Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Letter Proposal and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Six Hundred Thousand Dollars and 001100 ($600,000.00), without prior written amendment to the Agreement." The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. One, including all reimbursable items and subconsultant fees, in an amount not to exceed Four Hundred Thousand Dollars and 00/100 ($400,000.00). Hardy & Harper, Inc. Page 1 12-3 3. ADMINISTRATION Section 6 of the Agreement is amended in its entirety and replaced with the following: "This Agreement will be administered by the Public Works Department. City's Public Works Director or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement." 4. CONFLICTS OF INTEREST Section 24 of the Agreement is amended in its entirety and replaced with the following: "24.1 Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et seq., which (1) require such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 24.2 If subject to the Act and/or Government Code §§ 1090 et seg., Contractor shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section." 4. NOTICES Section 25.2 of the Agreement is amended in its entirety and replaced with the following: "25.2 All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Public Works Director Public Works Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658" 5. CLAIMS Section 26 of the Agreement is amended in its entirety and replaced with the following: "26.1 Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation Hardy & Harper, Inc. Page 2 12.4 under or arising out of this Agreement except those previously made in writing and identified by Contractor in writing as unsettled at the time of its final request for payment. Contractor and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Contractor shall be required to file any claim Contractor may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 26.2 To the extent that Contractor's claim is a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, the Parties agree to follow the dispute resolution process set forth therein. Any part of such "Claim" remaining in dispute after completion of the dispute resolution process provided for in Public Contract Code section 9204 or any successor statute thereto shall be subject to the Government Claims Act requirements requiring Contractor/Consultant to file a claim in strict conformance with the Government Claims Act. To the extent that Contractor's claim is not a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, Contractor shall be required to file such claim with the City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.)." 6. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Hardy & Harper, Inc. Page 3 12-5 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORt4EY'5 OFFICE Date. (a 1 25 2-0 By: ,,,W -.Aaron C. Harp 25�a City Attorney ATTEST- Date- By: TTEST:Date: By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Diane B. Dixon Mayor CONSULTANT: Hardy & Harper, Inc., a California corporation Date- By- Steve ate: By:Steve Kirschner Vice President Date: By: Kirsten S. Paulino Secretary [END OF SIGNATURES] Hardy & Harper, Inc. Page 4 12-6