AGENDA REPORT
Meeting Date: November 07, 2023
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Manu Dhaliwal, Associate Project Manager
Subject: APPROVAL OF AMENDMENT NO. 1 TO THE AGREEMENT
BETWEEN THE CITY OF BEVERLY HILLS AND PALP INC. DBA
EXCEL PAVING COMPANY FOR ON-CALL PAVEMENT REPAIRS
PROJECT; AND
APPROVAL OF ISSUANCE OF A CHANGE PURCHASE ORDER
IN THE AMOUNT OF $429,000.00 TO PALP INC., DBA EXCEL
PAVING COMPANY FOR THE PROJECT OVER A ONE (1) YEAR
CONTRACT TERM, FOR A TOTAL PURCHASE ORDER NOT-TOEXCEED AMOUNT OF $2,644,360 Attachments: 1. Amendment No. 1
RECOMMENDATION
Staff recommends City Council move to approve Amendment No. 1 to the contract with PALP, Inc. DBA Excel Paving Company for on-call pavement repair services in the amount of $390,000.00 over a one (1) year contract term, with one (1) additional oneyear renewal term available if extended again, in the total amount to be determined through future City Council budgetary process for the contract upon successful performance by the Contractor; approve a construction contingency of 10% in the amount of $39,000.00; and approve the issuance of a change purchase order to PALP, Inc. DBA Excel Paving Company in the amount of $429,000.00 for the project over the one (1) year contract term.
INTRODUCTION
The City of Beverly Hills operates and maintains water utility infrastructure throughout the City and in portions of West Hollywood. Ongoing maintenance and repair of the utility infrastructure requires the periodic removal of small areas of street pavement and sidewalks in the public right-of-way in order to access the utilities. Upon completion of the maintenance/repair work, the temporary restoration of paving is installed by City maintenance staff. This project will provide for permanent pavement restoration at Meeting Date: November 7, 2023
various locations where utility maintenance was performed. The City currently has a backlog of locations in need of permanent repairs.
DISCUSSION
During the course of repairing or upgrading the City’s water system, it is necessary to cut and trench streets and/or sidewalks. City crews make temporary patches, but permanent repairs of the asphalt pavement and concrete are beyond current staffing level capacity. This project will repair street and sidewalk infrastructure related to water system work within the City’s water service area. In the first year of the contract, PALP, Inc., dba Excel Paving Company successfully repaired over 150 backlog locations throughout Beverly Hills and over 20 backlog locations in West Hollywood. PALP, Inc., dba Excel Paving Company also provided emergency pavement repair services at multiple locations including North Hillcrest Road and Laurel Way.
City Council originally awarded this contract to PALP, Inc. DBA, Excel Paving Company on April 12, 2022 in the amount of $1,515,360, including contingency. City Council also approved a contract change order to PALP dba, Excel Paving Company on March 21, 2023 in the amount of $700,000 to reconstruct N. Hillcrest Road after a water main break.
Staff recommends approval of the contract change order to PALP, Inc. DBA Excel Paving Company in the amount of $390,000 over a one (1) year contract term. Staff also recommends a 10% contingency in the amount of $39,000.00 (for a total authorization of $429,000.00 over the one year) to continue to address pavement repairs throughout the City. If approved, this results in a purchase order not-to-exceed value of $2,644,360.
If the Contractor satisfactorily performs the required services to support the Public Works Department during the one (1) year contract extension period, staff recommends the contract be extended up to one (1) additional one-year term with PALP, Inc. DBA Excel Paving Company per unit prices with a maximum 3% cost of services increase specified therein in an amount to be determined through future City Council budgetary process for the third year of the contract. Staff will return to City Council for approval of the final oneyear term and change purchase order in Fiscal Year 2024/25.
ENVIRONMENTAL ASSESSMENT
This project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.), and the environmental regulations of the City. Pursuant to Section 15301(b)(c) (Existing Facilities) of the CEQA guidelines, the project is exempt from CEQA because it involves ongoing repair and maintenance of existing facilities involving no expansion of use. City Council approved the Categorical Exemption for this project on April 12, 2022.
FISCAL IMPACT
The proposed project budget summary table is below. A construction contingency allowance in the amount of $39,000.00 has been included in the purchase change order total amount of $429,000.00 for the one (1) year contract term extension. If extended by the City Manager or her designee for one additional year, the total purchase order amount shall be determined through future City Council budgetary process.
Meeting Date: November 7, 2023
Funds for this project are budgeted in Fiscal Year 2023/24 Capital Improvement Program (CIP Project No. 00195 – Street and Sidewalk Improvements, Water Enterprise Fund) as follows:
Shana Epstein,
Director of Public Works
Approved By
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
80006003-850000-00195 Water Enterprise $ 429,000.00
TOTAL $ 429,000.00
Attachment 1
1 AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND PALP, INC. DBA EXCEL PAVING
COMPANY FOR ON-CALL PAVEMENT REPAIRS PROJECT
NAME OF CONTRACTOR:
RESPONSIBLE PRINCIPAL
OF CONTRACTOR:
CONTRACTOR'S ADDRESS:
CONTRACTOR’S E.I.N./TAX I.D. NO.:
CITY'S ADDRESS:
COMMENCEMENT DATE:
TERMINATION DATE:
CONSIDERATION:
B0785-0001\2881270v2.doc
Palp, Inc. DBA Excel Paving Company
Curtis P. Brown, III, President & CEO
2230 Lemon Ave., Long Beach, CA 90606
95-3672914
City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
Notice to Proceed: August 1, 2022
August 1, 2023, unless extended pursuant to
Section 2 of the Agreement (Original
Termination Date)
August 1, 2024 (extended pursuant to this
Amendment No. 1)
Original Agreement:
Not to exceed $2,215,360.00
Amendment No. 1: Additional not to exceed
$429,000.00, including contingency, as more
particularly described in Exhibit B
Total not to exceed: $2,644,360.00
DocuSign Envelope ID: 37FBE251-6E84-464D-BD51-658A580336ED 2 B0785-0001\2881270v2.doc
AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND PALP, INC. DBA EXCEL
PAVING COMPANY FOR ON-CALL PAVEMENT REPAIRS
PROJECT
This Amendment No. 1 is to that certain Agreement between the City of Beverly Hills (hereinafter called “CITY) and Palp, Inc. dba Excel Paving Company (hereinafter called “CONTRACTOR”) dated April 12, 2022 and identified as Contract No. 244-22 (“Agreement”).
RECITALS
A. CITY and CONTRACTOR entered into an agreement for on-call pavement repairs.
B. CITY and CONTRACTOR desire to amend the Agreement to update the holiday schedule, increase the consideration and extend the termination date.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Termination Date shall be amended as set forth on the cover page above.
Section 2. The Consideration shall be amended as set forth on the cover page above.
Section 3. Subsection (a) of Section 2-03.1, “Special Work Requirements” shall be amended as set forth below:
DocuSign Envelope ID: 37FBE251-6E84-464D-BD51-658A580336ED 3 B0785-0001\2881270v2.doc
“(a) The Contractor is prohibited from working on the following days in City of Beverly Hills:
HOLIDAY 2023 2024
New Year's Day Jan 2 (Mon) Jan 1 (Mon)
Martin Luther King Day Jan 16 (Mon) Jan 15 (Mon)
President's Day Feb 20 (Mon) Feb 19 (Mon)
Passover April 5 (Wed) April 22 (Mon)
Good Friday April 7 (Fri) March 29 (Fri)
Memorial Day May 29 (Mon) May 27 (Mon)
Independence Day July 4 (Tues) July 4 (Thurs)
Labor Day Sept 4 (Mon) Sept 2 (Mon)
Rosh Hashanah Sept 15-17 (Fri-Sun) Oct 2-4 (Wed-Fri)
Yom Kippur Sept 25 (Mon) Oct 11-12 (Fri-Sat)
Veteran's Day Nov 10 (Fri) Nov 11 (Mon)
Thanksgiving Day Nov 23-24 (Thurs-Fri) Nov 28-29 (Thurs-Fri) Christmas Day Dec 25 (Mon) Dec 25 (Wed)
”
Section 4. Pursuant to the Contract Documents, excluding the first year of the Agreement, the Contract shall have a maximum 3% cost of services increase for every year the Contract is in effect. The maximum 3% cost of service increase does not apply to the allowance items for the entire duration of the Contract. The general line items shall therefore be increased by 3% as set forth in the chart below:
Item
Num Section Description
Unit of
Measure Quantity Original
Bid Item
Original -Line
Total
Renewal Bid
Item with 3%
Increase
1 BH Repairs
Pothole or section repair 8" PG
64-10 HMA SF 9000 $50.00 $450,000.00 $51.50
2 BH Repairs Pothole or section repair 8" concrete
(including dowels)
SF 300 $120.00 $36,000.00 $123.60
3 BH Repairs Pothole or section repair AC over
concrete (including dowels)
SF 300 $165.00 $49,500.00 $169.95
4 BH Repairs AC 2" grind & cap SF 3000 $23.00 $69,000.00 $23.69 5 BH Repairs R/R 4" sidewalk SF 500 $55.00 $27,500.00 $56.65 DocuSign Envelope ID: 37FBE251-6E84-464D-BD51-658A580336ED 4 B0785-0001\2881270v2.doc
Section 5. Except as specifically amended by this Amendment No. 1, the remaining provisions of the Agreement shall remain in full force and effect.
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
_______________________________
JULIAN A. GOLD, M.D.
Mayor of the City of Beverly Hills, California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
[Signatures continue]
6 BH Repairs R/R cross or alley gutter SF 500 $80.00 $40,000.00 $82.40 7 BH Repairs R/R curb & gutter LF 200 $220.00 $44,000.00 $226.60 8 BH Repairs R/R commercial curb & gutter LF 200 $234.00 $46,800.00 $241.02 9 BH Repairs R/R alley approach SF 2000 $45.00 $90,000.00 $46.35 10 BH Repairs Adjust water meter box to grade EA 50 $700.00 $35,000.00 $721.00 11 BH Repairs
Weekend/night differential allowance
(Labor differential & labor mark-up) ALW 1 $5,000.00 $5,000.00 $5,000.00 12 WEHO Repairs
Pothole or section repair 8" PG
64-10 HMA SF 5000 $52.00 $260,000.00 $53.56
13 WEHO Repairs Pothole or section repair 8" concrete
(including dowels)
SF 500 $100.00 $50,000.00 $103.00
14 WEHO Repairs
Pothole or section repair AC over
concrete (including dowels)
SF 300 $164.00 $49,200.00 $168.92
15 WEHO Repairs R/R 4" sidewalk SF 300 $82.00 $24,600.00 $84.46 16 WEHO Repairs R/R curb & gutter LF 200 $230.00 $46,000.00 $236.90 17 WEHO Repairs Adjust water meter box to grade EA 40 $700.00 $28,000.00 $721.00 18 WEHO Repairs Traffic control plan (allowance) ALW 1 $6,000.00 $6,000.00 $6,000.00 19 WEHO Repairs Permit (allowance) ALW 1 $6,000.00 $6,000.00 $6,000.00 20 WEHO Repairs
Weekend/night differential allowance
(Labor differential & labor mark-up) ALW 1 $15,000.00 $15,000.00 $15,450.00 Total $1,377,600.00
DocuSign Envelope ID: 37FBE251-6E84-464D-BD51-658A580336ED 5 B0785-0001\2881270v2.doc
CONTRACTOR: Palp, Inc. DBA Excel
Paving Company
CURTIS P. BROWN, III
President/Chief Executive Officer
DAVID A. DRUKKER
Vice President/Chief Financial Officer
APPROVED AS TO FORM: APPROVED AS TO CONTENT
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
SHARON L’HEUREUX DRESSEL
Risk Manager
DAREN GRILLEY
Assistant Director of Public Works/City Engineer
DocuSign Envelope ID: 37FBE251-6E84-464D-BD51-658A580336ED ~ R.. ~~ ~
Certificate Of Completion
Envelope Id: 37FBE2516E84464DBD51658A580336ED Status: Sent Subject: Complete with DocuSign: Palp, Inc. dba Excel Paving Company (244-22) Amendment No. 1 Source Envelope:
Document Pages: 5 Signatures: 6 Envelope Originator:
Certificate Pages: 3 Initials: 0 Erin Justus
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.169
Record Tracking
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10/31/2023 9:52:12 AM
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Curtis P. Brown, III
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David A. Drukker
[email protected]
Vice President
Excel Paving
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Sharon Dressel
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Daren Grilley
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Shana E. Epstein
[email protected]
Director of Public Works
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Logan Phillippo
[email protected]
Real Property Development Manager
City of Beverly Hills
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