AGENDA REPORT
Meeting Date: November 7, 2024
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Manu Dhaliwal, Associate Project Manager
Subject: AMENDMENT NO. 2 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 $484,000 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 $3,128,360 Attachments: 1. Amendment No. 2
RECOMMENDATION
Staff recommends City Council approve Amendment No. 2 to the contract with PALP, Inc. DBA Excel Paving Company for on-call pavement repair services in the amount of $440,000 over a final one (1) year contract term; approve a construction contingency of 10% in the amount of $44,000; and approve the issuance of a change purchase order to PALP, Inc. DBA Excel Paving Company in the amount of $484,000 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 various locations where utility maintenance was performed. The City currently has a backlog of locations in need of permanent repairs.
Meeting Date: November 7, 2024
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 and second years of the contract, PALP, Inc. DBA Excel Paving Company successfully repaired over 180 backlog locations throughout Beverly Hills and over 40 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 Construction on April 12, 2022, in the amount of $1,515,360, including contingency.
Amendment No. 1 to the contract was approved by City Council on November 7, 2023 in the amount of $429,000. City Council also awarded 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. The total contract amount to date is $2,644,360.
Staff recommends approval of Amendment No. 2 to PALP, Inc. DBA Excel Paving Company in the amount of $440,000 over a one (1) year contract term. Staff also recommends a 10% contingency allowance in the amount of $44,000 (for a total authorization of $484,000 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 $3,128,360.
FISCAL IMPACT
The proposed project budget summary table is below. A construction contingency allowance in the amount of $44,000 has been included in the purchase change order total amount of $440,000 for the one (1) year contract term.
Funds for this project are budgeted in Fiscal Year 2024-25 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 $ 484,000.00
TOTAL $ 484,000.00
Attachment 1
1 B0785-0001\3023801v2.doc
AMENDMENT NO. 2 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: Palp, Inc. DBA Excel Paving Company RESPONSIBLE PRINCIPAL Curtis P. Brown, III, President/CEO OF CONTRACTOR:
CONTRACTOR'S ADDRESS: 2230 Lemon Avenue
Long Beach, CA 90806
CONTRACTOR’S E.I.N./TAX I.D. NO.: 95-3672914
CITY'S ADDRESS: City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: Notice to Proceed: August 1, 2022
TERMINATION DATE: August 1, 2023, unless extended pursuant to Section 2 of the Agreement (Original Termination
Date)
August 1, 2024 (extended pursuant to Amendment
No. 1)
December 31, 2025 (extended pursuant to this
Amendment No. 2)
CONSIDERATION: 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
Amendment No. 2: Additional not to exceed
$484,000.00, including contingency, as more
particularly described in Exhibit B
Total: Not to Exceed $3,128,360.00
Docusign Envelope ID: 532EAA70-463F-4342-852D-A56584876027 2 B0785-0001\3023801v2.doc
AMENDMENT NO. 2 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. 2 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, as amended by Amendment No. 1, dated November 7, 2023, and identified as Contract No. 608-23 (“Agreement”).
RECITALS
A. CITY entered into a written agreement with CONTRACTOR to provide on-call pavement repairs, which was previously amended.
B. CITY and CONTRACTOR desire to further amend the Agreement to 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.
Section 2. The Consideration shall be amended as set forth on the cover page.
Section 3. 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 Docusign Envelope ID: 532EAA70-463F-4342-852D-A56584876027 3 B0785-0001\3023801v2.doc
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
No.
Description Unit of
Measure Quantity Original Bid Item
Original
Line Total
Extension 1
Bid Item
with 3%
Increase
Extension 2
Bid Item
with 2.87%
Increase
City of Beverly Hills Repairs
1 Pothole or section repair 8"
PG 64-10 HMA SF 9000 $50.00 $450,000.00 $51.50 $52.98
2 Pothole or section repair 8"
concrete (including dowels) SF 300 $120.00 $36,000.00 $123.60 $127.15 3 Pothole or section repair AC
over concrete (including
dowels)
SF 300 $165.00 $49,500.00 $169.95 $174.83
4 AC 2" grind & cap SF 3000 $23.00 $69,000.00 $23.69 $24.37 5 R/R 4" sidewalk SF 500 $55.00 $27,500.00 $56.65 $58.28 6 R/R cross or alley gutter SF 500 $80.00 $40,000.00 $82.40 $84.76 7 R/R curb & gutter LF 200 $220.00 $44,000.00 $226.60 $233.10 8 R/R commercial curb &
gutter
LF 200 $234.00 $46,800.00 $241.02 $247.94
9 R/R alley approach SF 2000 $45.00 $90,000.00 $46.35 $47.68 10 Adjust water meter box to
grade EA 50 $700.00 $35,000.00 $721.00 $741.69
11 Weekend/night differential
allowance (Labor
differential & labor markup)
ALW 1 $5,000.00 $5,000.00 $5,150.00 $5,297.81
City of West Hollywood Repairs
12 Pothole or section repair 8"
PG 64-10 HMA SF 5000 $52.00 $260,000.00 $53.56 $55.10
13 Pothole or section repair 8"
concrete (including dowels) SF 500 $100.00 $50,000.00 $103.00 $105.96 14 Pothole or section repair AC
over concrete (including
dowels)
SF 300 $164.00 $49,200.00 $168.92 $173.77
15 R/R 4" sidewalk SF 300 $82.00 $24,600.00 $84.46 $86.88 16 R/R curb & gutter LF 200 $230.00 $46,000.00 $236.90 $243.70 17 Adjust water meter box to
grade EA 40 $700.00 $28,000.00 $721.00 $741.69
18 Traffic control plan
(allowance) ALW 1 $6,000.00 $6,000.00 $6,000.00 $6,000.00 19 Permit (allowance) ALW 1 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Docusign Envelope ID: 532EAA70-463F-4342-852D-A56584876027 4 B0785-0001\3023801v2.doc
Item
No.
Description Unit of
Measure Quantity Original Bid Item
Original
Line Total
Extension 1
Bid Item
with 3%
Increase
Extension 2
Bid Item
with 2.87%
Increase
20 Weekend/night differential
allowance (Labor
differential & labor markup)
ALW 1 $15,000.00 $15,000.00 $15,450.00 $15,893.42
Total $1,377,600.00
Section 4. Except as amended by this Amendment and previous amendments, the remaining provisions of this Agreement shall remain in full force and effect.
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
LESTER J. FRIEDMAN
Mayor
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
CONSULTANT: Palp, Inc. dba Excel Paving
Company
CURTIS P. BROWN, III
President/Chief Executive Officer
DAVID A. DRUKKER
Vice President
[Signatures continue]
Docusign Envelope ID: 532EAA70-463F-4342-852D-A56584876027 Curlis e fx()WIA<) Ill
5 B0785-0001\3023801v2.doc
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
_____________________________
DAREN GRILLEY
Assistant Director of Public Works/
City Engineer
_____________________________
SHARON L’HEUREUX DRESSEL
Risk Manager
_____________________________
ANTHONY RODSTEIN
Purchasing Services Manager
Docusign Envelope ID: 532EAA70-463F-4342-852D-A56584876027 Certificate Of Completion
Envelope Id: 532EAA70463F4342852DA56584876027 Status: Sent Subject: Complete with Docusign: Palp, Inc. dba Excel Paving Company (244-22) Amendment No. 2 Source Envelope:
Document Pages: 5 Signatures: 7 Envelope Originator:
Certificate Pages: 3 Initials: 0 Erin Justus
AutoNav: Enabled
EnvelopeId Stamping: Enabled
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
Status: Original
10/4/2024 10:29:33 AM
Holder: Erin Justus
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Curtis P. Brown, III
[email protected]
president
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David A. Drukker
[email protected]
Vice President
Excel Paving
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Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
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Sharon L'Heureux Dressel
[email protected]
Risk Manager
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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Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
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(None)
Sent: 10/22/2024 11:37:53 AM
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Nancy Hunt-Coffey
[email protected]
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Lester J. Friedman
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