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Item No. 4AGENDA ITEM NO.4 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: May 17, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF MEMORANDUM OF UNDERSTANDING WITH THE CITY OF COVINA FOR THE CONSTRUCTION OF CITRUS AVENUE REHABILITATION PROJECT RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Authorize the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with the City of Covina for the construction of Citrus Avenue Rehabilitation Project as a cost share agreement; 2. Authorize the City Manager to execute any amendments to the MOU, provided that any increase in the City's contribution for the improvements is consistent with the executed MOU; 3. Adopt the resolution: RESOLUTION NO. 2022-54 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 BACKGROUND: The City of Covina (Covina) informed City of West Covina (West Covina) staff that Covina is planning to rehabilitate Citrus Avenue this year. The improvements will be made on Citrus Avenue between Workman Avenue to approximately 700 feet north of the Citrus Avenue and Workman Avenue intersection. Please see aerial (redline indicates West Covina City boundary): e jt 1 �'�� Y"MYfIVYl1Y' J1 ;0.F ()9 ken fOF dI RI.V eE�� RAy�S Subsequently, West Covina staff contacted Covina staff to incorporate the West Covina portion of the work in the project bid package construction bid as an additive alternate. Covina staff, as the lead agency, advertised the construction bid package for the proposed project and received bids on April 19, 2022. The proposed scope within West Covina City limits is included on the construction bid package as an additive alternate bid item. The proposed work includes 2" coldmill and overlay of existing asphalt roadway, reconstruction of existing concrete pavement, adjusting existing manhole covers to grade, and restoration of striping to match existing in kind. West Covina's not to exceed cost share for the project is $150,202.10 including construction costs as well as soft costs. Covina awarded the contract at their May 3, 2022, City Council meeting. DISCUSSION: In order to proceed with West Covina's portion of the street improvements, an MOU is required with Covina, and a budget amendment to appropriate $160,203 for the Citrus Ave. Rehabilitation Project. A draft MOU between West Covina and Covina has been prepared for approval by the City Council (Attachment No. 1). If approved, staff will continue to work with the City Attorney's Office and Covina to finalize the MOU. If the MOU is approved, Covina will act as leading agency on this project and West Covina will provide cost contribution for its portion of the project. The budget amendment is also attached (Attachment No. 2). LEGAL REVIEW: The City Attorney's Office has reviewed the resolution and approved it as to form. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Prepared by: Okan Demirici PE, CIP Manager Fiscal Impact FISCAL IMPACT: 1 ne toiiowInu Is ine DreaKaown oT me or vvesr Covina bnare or cosy as pe of Covina ;ct Management and Administration 10,000 Measure M fundinq is available and proposed to be used for this proiect as follows: Project No. Fund Name Account No. Current Budget Amount Requested Proposed Budget 22027 1 MEASURE M 235.80.7005.7200 $ $160,203 $160,203 Total $ $160,203 $160,20 Attachments Attachment No. 1- Mou Between West Covina and Covina Attachment No. 2 - Resolution No. 2022-54 (Budget Amendment) CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety Enhance City Image and Effectiveness Maintain Good Intergovernmental Relations A Creative and Active Communuty ATTACHMENT NO. 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF WEST COVINA AND THE CITY OF COVINA FOR CITRUS AVENUE REHABILITATION PROJECT THIS MEMORANDUM OF UNDERSTANDING ("MOU") is entered into this day of , 2022 ("Effective Date"), between the CITY OF WEST COVINA, a California municipal, hereinafter called "West Covina" and the CITY OF COVINA, a California municipal corporation, hereinafter called "Covina." West Covina and Covina are sometimes referred to herein as "Party" and collectively as the "Parties" or "Cities." RECITALS 1. Both West Covina and Covina desire to construct asphalt concrete roadway improvements on Citrus Avenue at or near the border shared by both Cities. The proposed roadway rehabilitation improvements are on Citrus Avenue between Workman Avenue to approximately 700 feet north of Citrus Avenue and Workman Avenue intersection. 2. The Citrus Avenue rehabilitation improvements include: (a) cold mill 2-inch thick existing pavement; (b) construct 2-inch thick pavement ARHM-GG-C (PG64-16); (c) adjust existing manhole covers to grade; (d) restore striping to match existing in kind, as depicted in detail in Exhibit "A," attached hereto and incorporated herein by this reference. The proposed roadway rehabilitation improvements are collectively referred to in this MOU as "Roadway Improvements". The design of the Roadway Improvements as set forth in Exhibit "A" is acceptable to both Cities. 3. The Parties desire that Covina, and not West Covina, shall have the responsibility and express authority/permission to construct or cause to be constructed all of the Roadway Improvements. 4. The City of West Covina desire to contribute financially to the construction of the Roadway Improvements within City of West Covina city limits, the area defined as Citrus Avenue between Workman Avenue and approx. 700 north of Citrus Avenue, including the actual costs of construction and the cost to administer the construction contract, as set forth in this MOU. 5. The Parties desire to divide the ongoing maintenance responsibilities and costs related to the Pedestrian Improvements in the manner set forth in this MOU. Page 67 of 74 ATTACHMENT E NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1. CONSTRUCTION OF ROADWAY IMPROVEMENTS. Covina shall have the sole responsibility to construct and install and/or cause to be constructed and installed all Roadway Improvements within six (6) months after award of a contract to the contractor. West Covina hereby, agrees to cooperate with Covina, as may be necessary, and respond to reasonable inquiries and requests from Covina throughout the construction phase of this MOU. Covina agrees to install the Roadway Improvements as they are shown in Exhibit A. In the event a modification to the design becomes necessary due to changed conditions or later discovered conditions, Covina shall advise West Covina of the design change, modification, construction and the costs of such change or modification and shall obtain West Covina's written approval prior to Covina's approval of any design change or modification. 2. COST ALLOCATION OF CONSTRUCTION SERVICES. All costs associated with the construction of the Roadway Improvements within City of West Covina city limits, , the area defined as Citrus Avenue between Workman Avenue and approx. 700 north of Citrus Avenue, including actual costs of construction and all costs incurred by Covina to let and administer any construction contract, shall be paid by West Covina. The Cost Estimate for the construction of the Roadway Improvements is set forth in Exhibit `B," attached hereto and incorporated herein by this reference. In no event shall West Covina's share of the costs of the Roadway Improvements exceed One Hundred Fifty Thousand Two Hundred Two Dollars and Ten Cents ($150,202.10) without prior written approval of both Cities memorialized by an amendment to this MOU. 3. PAYMENT OF CONSTRUCTION COSTS. A. Covina agrees to submit to West Covina invoices for construction and construction administration costs, in triplicate (and with supporting documentation satisfactory to Covina), that are itemized and specify (i) the particular construction service rendered; (ii) the total cost thereof; and (iii) that dollar amount which represents fifty percent (50%) of the total cost to reflect the total amount to be contributed by West Covina for the construction of the Roadway Improvements. B. West Covina shall submit payment to Covina for the full amount showing due on any and all invoices submitted by Covina pursuant to this MOU, thirty (30) days following West Covina's receipt of an invoice. C. In the event that West Covina disputes the amounts stated on any itemized invoice, West Covina shall submit along with payment of the full amount showing due, including the amount in dispute, a written notice of such dispute and the basis for the dispute. The Parties shall endeavor to resolve any such disputes within a reasonable time after Covina's receipt of a notice of dispute and payment. Any adjustments in the invoice amount upon resolution of the dispute will be credited to future invoices, or returned if no invoices are forthcoming. Page 68 of 74 ATTACHMENT E 4. MAINTENANCE. West Covina and Covina shall each perform and pay the cost of all operation and maintenance services, as necessary, for the proper operation, maintenance and repair of the Roadway Improvements, and any portion thereof, situated within their respective city limits. 5. INDEMNITY. West Covina and Covina both mutually agreed to indemnify, defend and hold harmless each other and their respective officers, agents, volunteers, servants and employees from any and all claims, demands, liabilities, debts, damages, suits, losses, actions and causes of action, of whatever kind, nature or sort, including, but not by way of limitation, wrongful death, personal injury or damage to property, the expenses of the defense of said parties and the payment of attorneys' fees in any such claim or action, occurring or resulting, in any way, from the actual or alleged negligent acts or omissions or willful misconduct of either party arising out of the performance of services by either party, or their officers, agents, volunteers, servants and employees, in connection with the performance of this MOU. 6. TERM. This MOU shall be deemed to have become effective on the Effective Date and shall expire on December 31, 2022. 7. NOTICE. Any notice required or permitted to be sent to each party shall be sent by regular mail, addressed as follows: City of West Covina 1444 West Garvey Avenue South West Covina, CA 91790 ATTN: City Manager City of Covina 125 E. College Street Covina, CA 91723 ATTN: Rafael M. Fajardo City Engineer 9. GOVERNING LAWNENUE. This MOU shall be governed by the laws of the State of California. Any action or proceeding between the Parties concerning the interpretation of this MOU shall be instituted and prosecuted in the Los Angeles County Superior Court, Pomona Courthouse. 10. AMENDMENTS. Only a writing executed by the parties hereto or their respective successors and assigns may amend this MOU. 11. WAIVER. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this MOU shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in Page 69 of 74 ATTACHMENT E respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 12. SEVERABILITY. If any provision of this MOU is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this MOU, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both Parties agree to substitute such provision(s) through good faith negotiations. 13. COUNTERPARTS. This MOU may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. [SIGNATURES ON FOLLOWING PAGE] Page 70 of 74 ATTACHMENT E IN WITNESS WHEREOF, the Parties hereto have caused this MOU to be executed by and through their respective authorized officers, as of the date first above written. Date Approved as to Form: Thomas P. Duarte, City Attorney Date Approved as to Form: City Attorney City of West Covina, a Municipal Corporation By David N. Carmany, City Manager ATTEST: Lisa Sherrick, Assistant City Clerk City of Covina, a Municipal Corporation By City Manager ATTEST: City Clerk Page 71 of 74 ATTACHMENT EXHIBIT A DESIGN Page 72 of 74 ATTACHMENT E EXHIBIT B COST ESTIMATE Page 73 of 74 ATTACHMENT E City of Covina Citrus Avenue Rehabilitation Project West Covina Cost Estimate Base Bid Item Description Unit Oty, I GentryBrothers Unit Price Total Alternate No. 1 - Citrus Avenue West Covina 1 Cold M 112 inch e ist n AC Pavement SF . 21,160 $ 1.00 $ 21,160.00 ConstConstruct 1-inch AC Pavement Levelinq.��!�2 ruct ......... 1�� .............................. : j�� .............................. :$ 93.00 .................................. $ 12,276.00 ........................;...._Ton Construct 2-inch AC Pavement ARHM-CG-C ........... ........................................................................................................... ...... .............................. . .................................. $ 27,825.00 . .... ..... ..... ......... Remove, dispose, and construct 8-inch thick PCC pavement per sppwc 4 3,100 $ 17.00 $ 52,700.00 RC ................................................................................................................. SF .. ...... ........... .............................. ................... ..... .................................. :Adjust existing water/gas valve can/ irrigation meter boxt/pull box cover 5 2 $ 175.00 $ 350.00 : grade ...................................................................................................... :to ... . .................................................... EA ..................... .............................. .............................. .................................. MIjust manhole frame and cover to rade pers p cstd plan205-2. ........... 4 ...................................................................... ..... 9 p ................................... EA ..................... 1 .............................. $ .............................. 600.00 $ 600.00 .................................. :Signing and Striping pavement markings, Complete in place per Plans 7 1 $ 8,000.00 $ 8,000.00 !and Specifications LS Total (Alternate Bid No. 1) $122,911.00 Contingencies $ 12,291.10 Design (CEJ Engineers Inc.) $ 5,000.00 Inspection Fee (CEJ Engineers Inc.) $ 10,00000 Grand Total $150,202.10 Page 74 of 74 ATTACHMENT E ATTACHMENT NO.2 RESOLUTION NO.2022-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2021, AND ENDING JUNE 30, 2022 (CONSTRUCTION OF CITRUS AVENUE REHABILITATION PROJECT) WHEREAS, the City Manager, on or about May 18, 2021, submitted to the City Council a proposed budget for the appropriation and expenditure of funds for the City for West Covina for Fiscal Year 2021-22; and WHEREAS, following duly given notice and prior to budget adoption, the City Council held public meetings, considered and evaluated all comments, and on June 15, 2021 adopted a budget for the fiscal year commencing July 1, 2021 and ending June 30, 2022; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves Budget Amendment No. 063, attached hereto as Exhibit A, for Fiscal Year 2021-22. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED AND ADOPTED this 17th day of May 2022. APPROVED AS TO FORM Thomas P. Duarte City Attorney Dario Castellanos Mayor ATTEST Lisa Sherrick Assistant City Clerk I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2022-54 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 17th day of May 2022, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk EXHIBIT A BUDGET AMENDMENT Exhibit A CITY OF WEST COVINA BUDGET AMENDMENT Date: 5/17/2022 Requested by: Okan Demirici Dept/Div: Engineering EXPENDITURES BA # 063 Posted By: Date Posted: Fiscal Year: 2021-2022 Amount: 160,203.00 Description: Citrus Ave Rehab Account Number Dept/Account Description Current Budget Proposed Amendment Amended Budget 235.80.7005.7200 STREETS - 22027.235.7200 Citrus Ave Rehab 160 203.00 160 203.00 160 203.00 1 160 203.00 REVENUES Account Number Account Description Current Budget Proposed Amendment Amended Budget APPROVALS City Council Approval Date (if required, attach minutes): Dept Head Approval: Date: Finance Director: Date: Funds Available? ❑ Yes ❑No ❑ Approval Not Required City Manager: Date: (if over $100,000) ❑ Approved ❑ Denied