Loading...
HomeMy WebLinkAboutE-7 Staff Report - 2018 Willdan Agreement AmendmentCONSENT ITEM E-7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: APRIL 2, 2018 SUBJECT: CONSIDERATION OF A LETTER AGREEMENT AMENDMENT WITH WILLDAN ENGINEERING TO EXTEND THE CONTRACT FOR 1 YEAR SUMMARY: On October 18, 2016, the City Manager entered into a Letter Agreement with Willdan Engineering (Willdan) for contract building inspection and plan check services specifically related to Lagunitas Brewing Company. The term of the agreement was from October 18, 2016 through December 31, 2017. The City would like to extend the agreement, however the contract now exceeds the $25,000 threshold and only the City Council can approved agreements over $25,000. The City Council is being asked to authorize the City Manager to extend the Letter Agreement with Willdan Engineering for one year, expiring on December 31, 2018. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Authorize the City Manager to execute the agreement amendment, in a form acceptable to the City Attorney, on behalf of the City. DISCUSSION: On October 18, 2016, the City Manager entered into a letter agreement with Willdan Engineering (Willdan) for contract building inspection and plan check services. The agreement was to help expedite these services for the Lagunitas Brewing Company project. The installation of the brewing equipment is complex and there was a need to be more flexible with inspections and plan checking. Willdan has been providing these services for the last 16 months with no issues. APPROVED CITY COUNCIL 4/2/2018 Letter Agreement Amendment – Willdan Engineering April 2, 2018 Page 2 FISCAL IMPACT: There is no fiscal impact associated with executing the agreement amendment. Consultant services will be funded by building permit fees, which may exceed $25,000. Prepared by: Reviewed and Approved Kurt E. Christiansen, FAICP Louie F. Lacasella Economic and Community Development Director Senior Management Analyst Reviewed and Approved: Daniel Bobadilla, P.E. Acting City Manager Attachment: 1) Letter Agreement 45635.01000\8513162.1 APRIL 3, 2018 Mr. James M. Guerra Director of Building and Safety Willdan Engineering 13191 Crossroads Parkway North, Suite 405 City of Industry, CA 91746 Dear Mr. Guerra: Letter Agreement for Building Inspection and Plan Check Services This letter shall be our Agreement (“Letter Agreement”) Extension regarding the Building Inspection and Plan Check Services described below (“Services”) to be provided by Willdan Engineering (“Contractor”) as an independent contractor to the City of Azusa (the “City”) for the City’s Lagunitas Brewing Company (“Project”). Contractor is retained as independent contractor and is not an employee of the City. City and Contractor are sometimes referred to herein as “Party” or “Parties.” The Services to be provided include the following: Plan Check and Building Inspection Services for the Lagunitas Brewing Company project located at Todd Avenue Services on the Project shall begin immediately and shall be completed by December 31, 2018, unless extended by the City in writing. Contractor shall perform all Services under this Letter Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California, and consistent with all applicable laws. Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Letter Agreement. Attachment 1 Willdan Engineering April 3, 2018 Page 2 of 6 45635.01000\8513162.1 Contractor has represented to the City that certain key personnel will perform and coordinate the Services under this Letter Agreement. Should one or more of such personnel become unavailable, Contractor may substitute other personnel of equal competence upon written approval of the City. In the event that the City and Contractor cannot agree as to the substitution of key personnel, the City shall be entitled to terminate this Letter Agreement for cause. The key personnel for performance of this Letter Agreement are as follows: [INSERT NAMES] Compensation shall be based on the actual amount of time spent in adequately performing the Services, and shall be billed at the hourly rate(s) as follows: • Inspection rate is $110 per hour with a two (2) to four (4) hour minimum depending on the needs of the developer. • Plan check rate is $120 per hour per architectural, life safety and electrical, plumbing and/or mechanical plan changes. • Structural plan revisions is $140 per hour, two (2) hour minimum for any plan revision. The total compensation shall not exceed $ 50,000 [FIFTY THOUSAND] without written approval of the City Council. Contractor’s invoices shall include a detailed description of the Services performed. Invoices shall be submitted to the City on a monthly basis as performance of the Services progresses. The City shall review and pay the approved charges on such invoices in a timely manner. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. [INSERT “IF” OR “SINCE” AS APPLICABLE] the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and [INSERT “IF” OR “SINCE” AS APPLICABLE] the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Letter Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Willdan Engineering April 3, 2018 Page 3 of 6 45635.01000\8513162.1 Contractor shall provide proof of commercial general liability and automobile insurance to the City in amounts and with policies, endorsements and conditions required by the City for the Services. If Contractor is an employer or otherwise hires one or more employees during the term of this Project, Contractor shall also provide proof of workers compensation coverage for such employees, which meets all requirements of State law, with endorsements and conditions required by the City. The City may terminate this Letter Agreement at any time with or without cause. If the City finds it necessary to terminate this Letter Agreement without cause before Project completion, Contractor shall be entitled to be paid in full for those Services adequately completed prior to the notification of termination. Contractor may terminate this Letter Agreement only upon 30 calendar days’ written notice to the City only in the event of City’s failure to perform in accordance with the terms of this Letter Agreement through no fault of Contractor. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged negligent or other wrongful acts, errors or omissions of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor’s Services, the Project or this Letter Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Contractor’s Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. Contractor’s obligation to indemnify shall survive expiration or termination of this Letter Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, or volunteers. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements; all emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD), the California Air Resources Board (CARB) or other governmental agencies; and all water quality laws, rules and regulations of the Environmental Protection Agency, the State Water Resources Control Board, the Santa Ana Regional Water Quality Control Board and the City. By executing this Letter Agreement, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. Contractor shall maintain records of its compliance, including its verification of each employee, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The Willdan Engineering April 3, 2018 Page 4 of 6 45635.01000\8513162.1 City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements. To the same extent and under the same conditions as Contractor, Contractor shall require all of its subcontractors, sub-subcontractors and consultants performing any work relating to the Project or this Letter Agreement to make the same verifications and comply with all requirements and restrictions provided herein. Contractor's failure to comply or any material misrepresentations or omissions relating thereto shall be grounds for terminating this Letter Agreement for cause. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. Finally, Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment in violation of state or federal law. As provided for in the indemnity obligations of this Letter Agreement, Contractor shall indemnify City against any alleged violations of this paragraph, including, but not limited to, any fines or penalties imposed by any governmental agency. This Letter Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Letter Agreement, the action shall be brought in a state or federal court situated in Los Angeles County, State of California. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Letter Agreement, the prevailing Party shall be entitled to recover all reasonable fees and costs incurred, including reasonable attorney's fees, as determined by the court. Contractor shall not assign, sublet, or transfer this Letter Agreement or any rights under or interest in this Letter Agreement without the written consent of the City, which may be withheld for any reason. This Letter Agreement may not be modified or altered except in writing signed by both parties. Except to the extent expressly provided for in the termination paragraph, there are no intended third party beneficiaries of any right or obligation of the Parties. This is an integrated Letter Agreement representing the entire understanding of the parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. Since the Parties or Willdan Engineering April 3, 2018 Page 5 of 6 45635.01000\8513162.1 their agents have participated fully in the preparation of this Letter Agreement, the language of this Letter Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. The captions of the various paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Letter Agreement. Contractor warrants that the individual who has signed this Letter Agreement has the legal power, right and authority to make this Letter Agreement and bind the Contractor hereto. If you agree with the terms of this Letter Agreement, please indicate by signing and dating two originals where indicated below and return both to the undersigned. Once the documents are fully executed, one original will be returned to you for your records. [SIGNATURES ON NEXT PAGE] Willdan Engineering April 3, 2018 Page 6 of 6 45635.01000\8513162.1 CITY OF AZUSA WILLDAN ENGINEERING Approved by: Reviewed and Accepted by Contractor: Daniel Bobadilla Acting City Manager Signature Attest: Name Jeffery Lawrence Cornejo Jr. City Clerk Title Approved as to Form: Date Best Best & Krieger LLP City Attorney