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HomeMy WebLinkAboutC34242 Extension Commercial-Residential Street Sweeping Contract No. C34242 STAFF REPORT , k- CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: May 10, 2018 PREPARED BY: David Reyes, Jr., Street Maintenance Supervisork REQUEST: Approve a second one-year extension for Contract No. C34240 with M & M Sweeping, Inc., for Commercial and Residential Street Sweeping in the amount of $140,809.56. Recommendation By Minute Motion: 1. Approve a second, one-year extension for Contract No. C34240 with M & M Sweeping, Inc., for Commercial and Residential Street Sweeping in the amount of $140,809.56; and 2. Authorize the Mayor to execute the contract. Funds are available in the General Fund Account No. 1 1 0431 0-4332000, Street Repair and Maintenance. Strategic Plan This is an on-going street sweeping function which contributes to our goal of providing a uniquely beautiful desert environment in highly visible areas of the City. Background The National Pollutant Discharge Elimination System (NPDES) permit requires the reduction of pollutants by Source Control Best Management Practices (BMPs), and the reduction of litter accumulation. In addition, the South Coast Air Quality Management District (SCAQMD) requires that sediment be removed from paved public roadways. Street sweeping is considered one of the most effective methods to achieve compliance with the NPDES and SCAQMD requirements. Therefore, the subject contract, which includes the biweekly sweeping of all public streets in the City, was awarded to M & M Sweeping, Inc., by City Council on May 14, 2014, for a term of two years, with an option for two, one-year extensions. City Council approved the first, one-year extension; however, it is set to expire on June 30, 2018. M & M Sweeping has agreed to a second, one-year extension commencing July 1, 2018, at the current annual contract amount of $11,734.13 per month or $140,809.56. May 10, 2018 - Staff Report Approve C34242 with M & M Sweeping, 2nd Extension Page 2 of 2 M & M's performance has met City standards, so staff recommends approval of this extension. Fiscal Analysis The contract amount is included within the FY 18/19 operating budget; therefore there is no anticipated fiscal impact. LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER REVIEW it_ typtitvok Robert W. Hargre s imothy R o asson, P.E. t Moore Lauri Aylaian City Attorney Indepen en nterim Director of Finance City Manager Director of Public Works CONTRACTOR: M & M Sweeping, Inc. P.O. Box 878 Thousand Palms, California 92276 CONTENTS: C34242, Second Amendment to C34240 Payment and Performance Bonds Letter from M & M Sweeping, Inc. CONTRACT NO. C34242 SECOND AMENDMENT TO AGREEMENT WHEREAS, the City of Palm Desert ("City") and M & M Sweeping, ("Contractor"), entered into an agreement, dated May 14, 2015, for Commercial and Residential Street Sweeping ("Agreement"), the parties wish to amend the Agreement effective July 1, 2018. NOW, THEREFORE, the parties agree as follows: A. Term is amended to add the following paragraph to the end of the existing section, as amended. "The term of this Agreement is extended, and shall include the time period from July 1, 2018, through June 30, 2019." B. All other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the 10th day of May 2018. CITY OF PALM DESERT M & M SWEEPING, INC. A Municipal Corporation Contractor Sabby Jonathon, Mayor City of Palm Desert Attest: Approved as to Content: Rachelle D. Klassen, City Clerk Timothy R. Jonasson, P .E. CITY OF PALM DESERT, CALIFORNIA Independent Interim Director of Public Works Approved as to Form: Robert W. Hargreaves, ESQ. City Attorney CONTRACT NO. C34242 CONTRACTOR NOTARY ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } } SS County of Riverside } On , 20 , before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) Contract No. C34242 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (sometimes referred to hereinafter as "City") has awarded to M & M Sweeping, Inc. (hereinafter designated as the "CONTRACTOR/PRINCIPAL"), an agreement dated May 10, 2018, described as follows: COMMERCIAL AND RESIDENTIAL STREET SWEEPING, CONTRACT NO. C34242 (hereinafter referred to as the "Contract"); and WHEREAS, said CONTRACTOR is required to furnish a bond in connection with said Contract, and pursuant to Section 9100 of the California Civil Code; NOW, THEREFORE, we, M & M Sweeping, Inc., the undersigned CONTRACTOR, as Principal, and a corporation organized and existing under the laws of the State of , and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Palm Desert and to any and all persons, companies or corporations entitled to file stop payment notices under Section 9100 of the California Civil Code, in the sum of One Hundred Forty Thousand Eight Hundred Nine and 56/100 Dollars ($140,809.56), said sum being not less than one hundred percent (100%) of the total amount payable by the said City under the terms of the said Contract, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if said CONTRACTOR, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, implements, machinery or power used in, upon, for or about the performance of the Public Work contracted to be done, for any work or labor of any kind, or for bestowing skills or other necessary services thereon, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of said CONTRACTOR and his or its Subcontractors pursuant to Revenue and Taxation Code Section 18663 with respect to such work and labor the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorney's fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in the Civil Code Section 9100 as to give a right of action to such persons or their assigns in any suit brought upon this bond. 1 Contract No. C34242 It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification, in, to or of any contract plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and the original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that the claimant is a person described in the Civil Code Section 9100, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned, including but not limited to the provisions of Sections 2819 and 2845 of the California Civil Code. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20 . PRINCIPAUCONTRACTOR: SURETY: M & M Sweeping, Inc. (Typed Name of CONTRACTOR) (Typed Name of Surety) By: By: (Signature) (Signature of Attorney-in-Fact) (Typed Name and Title) (Typed Name of Attorney-in-Fact) (Signature must be notarized) (Signature must be notarized) The rate of premium on this bond is $ per thousand. The total amount of premium charged: $ (the above must be filled in by corporate surety). IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or 2 Contract No. C34242 project is financed, in whole or in part, with federal, grant or loan funds, it must also appear on the Treasury Department's most current list (Circular 570 as amended). Any claims under this bond may be addressed to: Surety Agent or Representative for service of process in California if different than Surety Name: Name: Address: Address: City/State/Zip Code: City/State/Zip Code: Telephone No.: Telephone No.: SURETY ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ) County of ) On before me, , personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 3 Contract No. C34242 PRINCIPAL ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document." State of California ) County of ) On before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 4 Contract No. C34242 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That whereas the City of Palm Desert has awarded to M & M Sweeping, Inc., hereinafter designated as the "Principal", a contract for: COMMERCIAL AND RESIDENTIAL STREET SWEEPING CONTRACT NO. C34242 WHEREAS, said Principal is required under the terms of said contract to furnish a good and sufficient bond for the performance of said contract: NOW THEREFORE, WE, M & M Sweeping, Inc., the Principal, and as Surety, are held and firmly bound unto the City of Palm Desert hereinafter called the City, in the penal sum of One Hundred Forty Thousand Eight Hundred Nine and 56/100 Dollars ($140,809.56), being 100% of the contract amount in lawful money of the United States of America for the payment of which sum well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force an effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney's fees, incurred by the City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if the Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by a defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of the Contractor remains. Nothing herein shall limit the City's rights or the Contractor or 1 Contract No. C34242 Surety's obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Whenever the Contractor shall be, and is declared by the City to be in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City's option: a. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or b. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages, for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to the Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. c. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages, for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to the Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligation in the event of default by the Contractor. Surety shall not utilize the Contractor in completing the Project nor shall Surety accept a bid from the Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City's objection to the Contractor's further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice to any such change extension of time, alteration or addition to the terms of the Contract Documents or to the Project. • Contract No. C34242 IN WITNESS WHEREOF, identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on this day of , 20 . M&M Sweeping, Inc. SURETY PRINCIPAL BY: BY: (Signature must be notarized) (Signature must be notarized) INSURANCE COMPANY and/or AGENT Name: Address: City/State/Zip Code: Telephone No.: 3 Contract No. C34242 SURETY ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ) On before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 4 Contract No. C34242 PRINCIPAL ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ) On before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 5 M (s42.... C;O\P.O. til RI.(878 l ION, CR(SIdr n[IA! • Cc MM1 R( IA! san Thousand PalrnsA 9?276-0878 SWEEPING Tel (760) 343.3003 , Inc. Fax (760)343.1125 Cell (760)250.4053 or (858)382.0992 March 23,2018 I Mr. David Reyes Street Maintenance Supervisor City of Palm Desert 73510 Fred Waring Drive Palm Desert,CA 92260 Re:Contract Extension—C34241 Dear David, M&M Sweeping would like to extend its contract with the City of Palm Desert.All terms, conditions and pricing will remain the same. We appreciate your business and look forward to continuing our relationship. Sincerely, Richaf?d Jule President and CEO M&M Sweeping, Inc.