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CC - Item 4G - Reimbursement Agreement with the City of Monterey Park for the Construction of New Avenue Rahabilitation ProjectROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: MAY 9, 2023 SUBJECT: REIMBURSEMENT AGREEMENT WITH THE CITY OF MONTEREY PARK FOR THE CONSTRUCTION OF NEW AVENUE REHABILITATION PROJECT SUMMARY The City of Monterey Park is planning to rehabilitate New Avenue alongside the border of City of Rosemead, between East Newmark Avenue and Garvey Avenue. New Avenue is a shared roadway at the centerline between the two cities. City of Rosemead staff coordinated with Monterey Park staff, and proposes to include City of Rosemead part of the roadway as part of the proposed improvements, for consistency. A reimbursement agreement with City of Monterey Park is prepared for the proposed improvements for Council's consideration. The project consists of resurfacing asphalt concrete roadways, curb & gutter, driveway approach repairs, manhole adjustments and striping. DISCUSSION The City of Monterey Park informed City of Rosemead staff that Monterey Park is planning to rehabilitate New Avenue between East Newmark Avenue and Garvey Avenue this year, as part of the City's Pavement Rehabilitation Program. The proposed project consists of resurfacing asphalt concrete roadways, curb & gutter, driveway approach repairs, manhole adjustments and striping. The project limits include New Avenue between East Newmark Avenue and Garvey Avenue. The subject roadway is a shared roadway between City of Rosemead and City of Monterey Park. Staff coordinated with Monterey Park staff, and staff recommends that roadway within Rosemead's jurisdiction to be included as part of this project. Including Rosemead's portion on this project will provide cost efficiencies, uniformity on the rehabilitation method on the entire street and economies of scale. As part of the improvements within City of Rosemead's jurisdiction, the project will rehabilitate approximately 53,000 square feet of asphalt roadway, and will pave approximately 510 tons of new asphalt concrete. The proposed construction will start in Summer 2023. AGENDA ITEM 4.G City Council Meeting May 9, 2023 Page 2 of 2 Per the reimbursement agreement, City of Monterey Park will be the lead agency, and will manage and inspect the project during construction, as outlined on the agreement. City of Rosemead will provide cost contribution for the segment within City of Rosemead boundaries. STAFF RECOMMENDATION It is recommended that the City Council: 1. Authorize the City Manager to execute a reimbursement agreement with City of Monterey Park for the construction of New Avenue Rehabilitation; 2. Authorize the City Manager to execute any amendment to the reimbursement agreement, provided that any increase in the City's contribution for the improvements is consistent with the executed agreement. FINANCIAL IMPACT The City of Rosemead's cost share for the proposed improvements is $152,095.05, which will be funded through Measure M Funds. ENVIRONMENTAL REVIEW The proposed work involves the rehabilitation of an existing public facility; therefore, the project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA). STRATEGIC PLAN IMPACT The project is consistent with the Strategic Plan's guiding principal for fiduciary responsibility of providing for transparency in financial management of City's finances and providing quality of life enhancement. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: BenK iVCity anager Attachment A: Reimbursement Agreement with City of Monterey Park Attachment B: Proiect Plans Attachment A Reimbursement Agreement with City of Monterey Park REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") is entered into as of , 2023 by and between the City of Monterey Park, a general law city and municipal corporation ("Monterey Park") and the City of Rosemead, a general law city and municipal corporation ("Rosemead") who agree as follows: 1. Recitals. This Agreement is made with reference to the following facts and circumstances: A. A road identified as "New Avenue" is located in both Monterey Park and Rosemead; B. Rehabilitation of the western portion of New Avenue, between East Newmark Avenue and Garvey Avenue, is part of Monterey Park's 2022-23 Annual Street Rehabilitation Project ("Project"); C. The Eastern portion of New Avenue lies within Rosemead's jurisdiction. To save time and resources, Rosemead believes it is in the public interest for Monterey Park to add the Eastern portion of New Avenue into the Project; and D. This Agreement is intended to establish the respective responsibilities for each city including, without limitation, Rosemead's reimbursement of costs to Monterey Park ("Rosemead's Costs"). 2. Term. This Agreement becomes effective 10 business days after the date it is fully executed and, unless otherwise terminated, remains effective until Monterey Park is fully reimbursed for Rosemead's Costs. 3. Project Components: Rosemead's Costs. Rosemead's Costs is estimated to be $152,095.05 for all services related to the Project including, without limitation, environmental review; design professional services; construction; bidding; inspection services; and materials. However, Rosemead acknowledges that the actual amount of such costs and expenses may be different. It is anticipated that the Project will include sidewalk improvements; rehabilitation of existing pavement; repair of miscellaneous concrete surfaces; striping and any additional improvements identified by the parties. 4. Cooperation between the Parties. The respective Public Works Director for each party may undertake most decisions regarding the Project. Among other things, the Public Works Directors must agree on the specific design standards and project scope for any work performed within Rosemead's jurisdiction that constitutes part of Rosemead's Costs. Such concurrence 1 must occur before Monterey Park solicits bids or seeks proposals for professional services. 5. Monterey Park as Lead Agency; Selection of Contractors and Consultants. The Parties agree that Monterey Park will be lead agency for all aspects of the Project (including environmental review) and is responsible for Project management. Both Parties will cooperate, in the manner anticipated in Section 4, regarding selection of professional services; contractors will be awarded a contract in accordance with applicable law. Required Contract Clauses. As to any element of the Project affecting Rosemead's jurisdiction or Rosemead's Costs, Rosemead will be identified as an intended third -party beneficiary in all contracts executed by Monterey Park. Moreover, Rosemead will be listed as an "additional insured" for any insurance provided by consultants or contractors in accordance with Monterey Park's insurance requirements. 7. Permits. Rosemead agrees to issue a "no fee" permit for any work performed within its jurisdiction as may be required. For example, and not limitation, Rosemead will issue an encroachment permit and grading permit to the contractor constructing the Project. 8. Payment of Rosemead's Costs. Rosemead agrees to reimburse Monterey Park Rosemead's Costs within 30 days of receiving an invoice. Any dispute regarding Rosemead's Costs must be made within 10 business days of receiving an invoice. Upon request, Monterey Park must provide Rosemead with any supporting documentation within 10 business days. 9. Indemnification. Each Party, as an Indemnitor, agrees to protect, indemnify, and hold the other Party (the "Indemnitee") and its employees, officers and agents free and harmless from any and all losses, claims, liens, demands and causes of action of every kind including, without limitation, the amounts of judgment, interests, court costs, legal fees, experts fees, experts costs, and other expenses incurred by the Indemnitee arising in favor of any Party, including losses and claims regarding personal injuries, death, or damages to property, and without limitation by enumeration, all other claims or demands of every kind occurring or arising directly out of the negligent acts, errors or omissions of the Indemnitor in the performance of its obligations and duties under this Agreement, except when the injury to persons or damage to property are due or claimed to be due to the Indemnitee's negligence or willful misconduct. This provision is not intended to create any cause of action in favor of any third party against either Party to this Agreement, but is intended solely to provide for indemnification of a Party for liability for damages and injuries to third persons or property arising from the Indemnitor Party's negligent performance of this Agreement. Monterey Park and Rosemead waive the pro rata risk allocation contained in Government Code § 895.6. This Section survives termination or expiration of this Agreement. 10. Default and Termination. A. Notice of Default. If for any reason, a Party fails to fulfill in a timely and proper manner its obligation under this Agreement, or a Party has violated any of the terms or conditions of this Agreement, the non -violating Party must provide a Notice of Default to the violating Party setting forth the breached terms or conditions of this Agreement. The violating Party then has 30 days to cure the terms and conditions in the written notice. The Notice of Default must refer to this clause, specify the nature of the alleged default, and must specify the effective date of the termination if a breach does lead to termination. B. Failure to Cure. If the violating Party fails to cure and bring into compliance all terms specified, the non -violating Party then may terminate this Agreement without further notice to the violating Party. Monterey Park would then only receive reimbursement for Rosemead's Costs, if any are due, for the portion of the Project performed in compliance with this Agreement as of the termination date. 11. Compliance with Law. Both Parties will, at their sole cost and expense, comply with all of the requirements of all federal, state, and local authorities now in force, or which may hereafter be in force, pertaining to this Agreement. 12. Waiver of Breach. Any express or implied waiver of a breach of any term of this Agreement will not constitute a waiver of any further breach of the same or other term of this Agreement. 13. Notices. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Agreement or by law to be served on or given to either party to this Agreement by the other party will be in writing and will be deemed served when personally delivered to the parry to whom they are directed, or in lieu of the personal service, upon deposit in the United States Mail, certified or registered mail, return receipt requested, postage prepaid, addressed to: Rosemead at: xx Email: xx City at: Ron Bow City Manager 320 W Newmark Ave Email: rbow@montereypark.ca.gov Either party may change its address for the purpose of this Section by giving written notice of the change to the other parry. 14. Electronic Siqnatures. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature. 15. Governing Law. This Agreement has been made in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this Agreement will be in Los Angeles County. 16. Partial Invalidity. Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this Agreement will remain in effect, unimpaired by the holding. 17. Integration. This instrument and its attachments constitute the sole agreement between Monterey Park and Rosemead respecting the matters above and correctly sets forth the obligations of Monterey Park and Rosemead. Any Agreement or representations respecting the Project not expressly set forth in this instrument are void. 18. Construction. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party. 19. Authority/Modification. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. 1.2 City of Monterey Park Ron Bow, City Manager APPROVED AS TO FORM: Karl H. Berger, City Attorney 5 City of Rosemead UN APPROVED AS TO FORM: Rachel Richman, City Attorney EXHIBIT "A" DESCRIPTION OF SERVICES BID SCHEDULE For 2022.2023 Street Rehabilitation at Various Locations, Specification No. 2022.017 Bid Item No. Description Quantity Unit Unit Bid Total Bid ROSEMEAD Remove existing pavement to 2.5" depth. Existing depth of asphalt concrete,; subbase, and subgrade varies by location. Some street segments include fabric material. Contractor shall remove portion of AC, subbase, or 1 native material to 52,475 SF $0.44 $23,089.00 $11,544.50 2.5" depth as part of �{ this work, full width of street , complete and in place (including removal/re- compaction of A. exposed base or native). Work locations are shown on Appendix 4. Location Index, Project Group B. Furnish and install 1.5" thick (ARHM) 2 asphalt rubberized 510 TON $138.00 $70,380.00 $35,190.00 hot mix complete and in place. Furnish and install 2.5" thick asphalt concrete AC Type B level Course 3 including tapering 801 TON $105.00 $84,105.00 $42,052.50 from 1" at gutter edge to 2.5" at 5' from gutter edge as shown on Appendix 0 7 4. Location Index, Detail B. Adjust manhole 4 covers to grade, 8 EA $1,200.00 $9,600.00 $2,400.00 complete and in lace. Adjust water valves 5 to grade, complete 13 EA $900.00 $11,700.00 $7,200.00 and in place. Remove existing curb and gutter and replace with SPPWC 6 Standard A2-8 PCC 15 LF $100.00 $1,500.00 $1,500.00 Curb and Gutter complete and in r" lace. Install Limit Line/Stop 7 Bar per Caltrans 1 EA $560.00 $560.00 ,,i $280.00 Standard Plan A24E. Install Double Yellow No Passing Zone per 8 Caltrans Standard" 538 LF $3.00 $1,614.00 $807.00 Plan A20A Detail 22 including Type D RPMs. Install Yellow Center 9 Line/Skip Line per P82 LF $2.00 $564.00 vzt $282.00 Caltrans Standard. A20A Detail 2. Install Channelizing 10 Line per Caltrans 212 LF $3.00 $636.00 $318.00 Standard Plan A20D Detail 38A. �` Install Thermoplastic High Visibility 11 YellowlWhite Basic 1 EA $1,349.00 $1,349.00 $674.50 Crosswalk per Caltrans Standard Plan A24F. Install Type IV(L) 12 and/or TypelV(R) 2 EA $140.00 $280.00 $140.00 Arrow per Caltrans Standard Plan A24A. Furnish and install 13 Traffic Loop 18 EA $450.00 $8,100.00 $5,400.00 Detection, complete and in place 7 Remove existing driveway approach and replace with 14 SPPWC Standard 2 110-2 Driveway Approaches complete and in Construction EA $4,000.00 $8,000.00 $8,000.00 btotal $ 221,477.00 ; : $ 115,788.50 10% $ 22,147.70 $ 11,578.85 20% $ 44,295.40 $ 23,157.70 Total $ 243,624.70 $ 150,525.05 1/2 New Avenue $ 1,570.00 Crosswalk Rosemead Total $ 152,095.05 2. California Environmental Quality Act (CEQA) documentation. It is anticipated, based on the preliminary scope of the Project that the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt. 3. 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