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HomeMy WebLinkAbout13 -Amendment On-Call M/RSA for Asphalt and Concrete Street RepairsQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report November 14, 2023 Agenda Item No. 13 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, P.E, Assistant City Engineer msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Approval of Amendment No. 2 to On -Call Maintenance and Repair Agreements for Asphalt and Concrete Street Repairs Services with Hardy & Harper, Inc. ABSTRACT: Staff utilizes on -call contractors to perform needed supplemental asphalt pavement and concrete replacement services to keep the City of Newport Beach's roadways in good working condition. On November 15, 2022, the City Council approved a three-year contract with Hardy & Harper for these services. On April 18, 2023, Amendment No. 1 was executed with Hardy & Harper. The Public Works Department is requesting approval of Amendment No. 2 to the On -Call Maintenance and Repair agreement as the contract capacity is nearly expended. RECOMMENDATIONS: 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. 2 to the On -Call Services Agreement with Hardy & Harper, for as -needed asphalt and concrete street repair services for an additional not -to - exceed amount of $500,000, and authorize the Mayor and City Clerk to execute the agreement. DISCUSSION: On November 15, 2022, the City Council approved an On -Call Maintenance and Repair agreement with Hardy & Harper for a three-year term and a $300,000 contract capacity. On April 18, 2023, Amendment No. 1 was executed with Hardy & Harper for $75,000 for additional concrete sidewalk grinding services. Since the original contract approval, several large needs arose for asphalt pavement work or repairs that were not anticipated when the contract was prepared. For example, due to a large number of water main breaks over this past year, almost $200,000 in asphalt repairs were assigned to the Hardy & Harper contract. 13-1 Approval of Amendment No. 2 to On -Call Maintenance and Repair Agreements for Asphalt and Concrete Street Repairs Services with Hardy & Harper, Inc. November 14, 2023 Page 2 The contract with Hardy & Harper is approaching a year old with two more years to go, yet most contract funding capacity has been expended. Staff is requesting a $500,000 amendment for the remaining two years of the contract. This will allow the City of Newport Beach to continue to use this firm to provide cost-effective asphalt maintenance repairs for the remaining two years of the contract. FISCAL IMPACT: Funding for the work done under this on -call agreement will be expensed to the Public Works operating accounts for asphalt and concrete replacement, various Capital Improvement Program (CIP) project accounts and Utility Department operating accounts. The Public Works Roadway Maintenance Division typically spends approximately $130,000 a year on on -call miscellaneous asphalt pavement work and another approximately $70,000 a year on miscellaneous concrete repairs and grinding (not including planned and budgeted CIP street maintenance and rehabilitation projects). The Utilities Department also estimates it will need approximately $100,000 a year for miscellaneous asphalt pavement repair work associated with its on -going utility trenching work. 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 — Service Agreement Amendment No. 2 with Hardy & Harper, Inc. 13-2 ATTACHMENT A AMENDMENT NO. TWO TO . ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH HARDY & HARPER, INC. FOR ON -CALL ASPHALT AND CONCRETE STREET REPAIR SERVICES. THIS AMENDMENT NO. TWO TO ON -CALL MAINTENANCE%REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 14th day of November, 2023 ("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 32! Rancho Circle, Lake Forest, California 92630, and is made with reference to the following: RECITALS A. On. November 15, 2022, City and Contractor entered into an i On -Call Maintenance/Repair Services Agreement ("Agreement") to engage Contractor to perform asphalt and concrete street maintenance and/or repair service for City ("Project"). B. On April 18, 2023, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") to reflect additional services not previously included in the Agreement and to increase the total compensation. i C. The parties desire to enter into this Amendment No. Two to increase ithe total compensation. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: . 1. COMPENSATION TO CONSULTANT 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 Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Contractor's compensation for all Work' performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Eight Hundred .Seventy Five Thousand Dollars and 00/100 ($875,000.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment No. Two, including all reimbursable items and subconsultant fees, in an amount not to exceed Three Hundred Thousand Dollars and 00/100 ($500,000.00). Hardy & Harper, Inc. Amd #2- Page 1 13-3 2. 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 anO effect. i [SIGNATURES ON NEXT PAGE] Hardy & Harper, Inc: Amd #2 ! Page 2 13-4 IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: !o --3 / - 23 By: aro C. MS C Attor ey 111412-? ATTEST: Date: al Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Noah Blom Mayor CONTRACTOR: HARDY & HARPER, INC., a California corporation Date: By: Michael Murray Vice President Date: By: Kristen Paulino Secretary [END OF SIGNATURES] Hardy & Harper, Inc. Amd #2 Page 3 13-5