SR 10-10-2023 5C
City Council
Report
City Council Meeting: October 10, 2023
Agenda Item: 5.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Facilities Maintenance
Subject: Approval of First Modification of Agreement with Best Contracting Services,
Inc. for Citywide Roofing Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing
Facilities), of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a first modification to
agreement 10854 in the amount not to exceed $854,620 with Best Contracting
Services, Inc., for citywide roofing contractor services. This would result in a
seven-year amended agreement through September 26, 2026, with a new total
amount not to exceed $1,229,620, with future funding contingent on Council
budget approval.
Summary
The City of Santa Monica’s Public Works Department contracts out roofing repair and
replacement services to maintain the structural integrity, safety, and appearance of City
facility roofs. On June 11, 2019, Council authorized the City Manager to split the award
of bid 4377 to Best Contracting Services, Inc., Letner Roofing, Inc., and Maverick
Roofing, Inc. Staff recommended a split award to ensure the City had access to the best
pricing, prompt response times, and applicable project expertise. However, Letner
Roofing and Maverick Roofing have been unresponsive to the City’s roofing repair
requests. Therefore, staff will terminate the agreements with Letner Roofing (agreement
10855) and Maverick Roofing (agreement 10856) and, upon approval of this item by
Council, would negotiate a first modification of agreement 10854 with Best Contracting
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Services, Inc. This first modification would result in a seven-year amended agreement
through September 26, 2026, with a new total amount not to exceed $1,229,620.
Discussion
The Public Works Department contracts out approximately 30 roofing projects annually.
These projects include roof repairs and replacements, leak mitigations, and installations
of coatings, gutters, roof drains, and skylights. It is necessary to contract out these
projects as City staff do not possess the required equipment, specialized skills, training,
and licensing.
On June 11, 2019 (Attachment A), Council authorized the City Manager to split the
award for bid 4377 and execute agreements as follows: 1) agreement #10854 with Best
Contracting Services (Attachment B) as the primary contractor for roofing projects that
contain a waterproofing component for a total amount not to exceed $375,000 over a
five-year period; 2) agreement #10855 with Letner Roofing (Attachment C) as the
primary contractor for large-scale roofing repairs and replacements for a total amount
not to exceed $580,650 over a five-year period; and 3) agreement #10856 with
Maverick Roofing (Attachment D) as the primary contractor for minor and urgent repairs
for a total amount not to exceed $275,000 over a five-year period. The total authority for
all agreements would not exceed $1,230,650.
Since the agreements were executed, Letner Roofing and Maverick Roofing have been
unresponsive to staff’s roofing repair requests while Best Contracting Services, Inc. has
been highly responsive. Agreement #10855 was executed on October 30, 2019 with
Letner Roofing and they have responded to one out of 20 project requests. On
November 11, 2022, staff received e-mail correspondence from Letner Roofing
requesting that the agreement be terminated. Agreement #10856 was executed on
August 29, 2019 with Maverick Roofing and they have not responded to any of the 17
project requests sent to them. Staff has attempted to contact Maverick Roofing but have
been unsuccessful. Agreement #10854 was executed on September 26, 2019, with
Best Contracting Services and they have satisfactorily provided roofing contractor
services for over 100 projects.
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Due to the unresponsiveness of the above-mentioned contractors, staff has expended
the total amount not to exceed with Best Contracting Services. Staff recommends
increasing contract 10854 by $854,620 and extending the contract by an additional two
years. This will ensure that staff has continued access to a dependable roofing
contractor to protect the City’s infrastructure. This recommendation would result in a first
modification of agreement 10854 in the amount of $854,620 with Best Contracting
Services, Inc. for a new total amount not to exceed $1,229,620 over a seven-year
period.
Environmental Review
The awards for roofing contractor services are categorically exempt from the California
Environmental Quality Act (CEQA) under Section 15301. Section 15301 of the CEQA
State Guidelines provides Class 1 (exiting facilities) exemption for projects that consists
of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration
of existing public or private structures, facilities, mechanical equipment, or topographical
features, involving negligible or no expansion of the existing or former use. The awards
for the roofing contractor services would not result in any modifications to existing
facilities. The existing facilities would be maintained and repaired with roofing contractor
services and the award of services would not expand or materially change existing
facilities or operations. Furthermore, none of the exceptions to Categorical Exemptions
set forth in the CEQA Guidelines, Section 15300.2, apply to this exemption. Therefore,
the project is categorically exempt as set forth in Section 15301 of the CEQA State
Guidelines.
Past Council Actions
Meeting Date Description
06/11/19 (Attachment A) Award Agreement for Citywide Roofing Contractor
Services
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Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from various funds to increase the
amount of agreement 10854 with Best Contracting Services, Inc. for citywide roofing
contractor services. Future year funding is contingent on Council budget approval.
Agreement Modification Request
Agreement # Current Authorized
Amount
Request
Amount Dept Account # Total Revised
Contract Amount
10854 $375,000 $854,620 Various Accounts $1,229,620
Prepared By: Kyla Johnson, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Staff Report_June 11, 2019
B. Best Contracting Services_Agreement 10854
C. Letner Roofing_Agreement 10855
D. Maverick Roofing_Agreement 10856
E. Best Contracting OAKS
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City Council Report
City Council Meeting: June 11, 2019
Agenda Item: 3.D
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Facilities Maintenance
Subject: Award Agreement for Citywide Roofing Contractor Services
Recommended Action
Staff recommends that City Council:
1. Award Bid #4377 to Best Contracting Services, Inc., Danny Letner Inc., dba
Letner Roofing and Maverick Roofing, Inc., all California-based companies, for
roofing contractor services for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with Best
Contracting Services, Inc. in an amount not to exceed $150,000 for two years,
with one additional three-year renewal option in the amount of $225,000, on the
same terms and conditions, for a total amount not to exceed $375,000 over a
five-year period, with future year funding contingent on Council budget approval;
3. Authorize the City Manager to negotiate and execute an agreement with Letner
Roofing, Inc., in an amount not to exceed $200,000 for two years, with one
additional three-year renewal option in the amount of $380,650, including a 15%
increase for year three and a 10% increase for years four and five, for a total
amount not to exceed $580,650 over a five-year period, with future year funding
contingent on Council budget approval;
4. Authorize the City Manager to negotiate and execute an agreement with
Maverick Roofing, Inc., in an amount not to exceed $110,000 for two years, with
one additional three-year renewal option in the amount of $165,000, on the same
terms and conditions, for a total amount not to exceed $275,000 over a five-year
period, with future year funding contingent on Council budget approval.
Summary
To maintain the structural integrity, safety and appearance of City facility roofs, the
Facilities Maintenance Division contracts out roofing repair and replacement services.
Staff recommends a split award for Bid #4377 as follows: Best Contracting Services,
Inc., would be the primary contractor for roofing projects that contain a waterproofing
component for a total amount not to exceed $375,000 over a five-year period; Letner
Roofing would be the primary contractor for large-scale roofing repairs and
replacements for a total amount not to exceed $580,650 over a five-year period; and
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Packet Pg. 213 Attachment: Staff Report_June 11, 2019 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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Maverick Roofing Inc., would be the primary contractor for minor and urgent repairs, for
a total amount not to exceed $275,000 over a five-year period.
Discussion
The Facilities Maintenance Division contracts out approximately 30 roofing projects
annually. These projects include repairs, replacements, leak mitigation, and installing
coatings, gutters, roof drains and skylights. It is necessary to contract out these jobs as
in-house staff do not possess the necessary equipment, specialized skills, training and
licensing.
To ensure the City has access to the best pricing, prompt response times and
applicable project expertise, staff recommends splitting the award between Best
Contracting Services, Inc., Letner Roofing and Maverick Roofing, Inc. Best Contracting
Services, Inc. would primarily provide roofing services such as leak mitigation and
waterproofing as Best Contracting has satisfactorily provided such services for the City
over the past three years. Based on Letner Roofing’s extensive experience with multi-
million dollar projects, Letner Roofing would provide services for the City’s large-scale
projects that are often long-term, intricate and require a large workforce. Maverick
Roofing, Inc. has the lowest minimum call-out charge and fastest response time, thus
Maverick Roofing would perform urgent and minor repairs that require a prompt
response time and are small-scale in nature.
Vendor/Consultant Selection
Bid Data
Bid
Posting
Date
Bid Posted
On
Bid Advertised In (City
Charter & Municipal Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
1/31/2019 City's Online
Bidding Site Santa Monica Daily Press 28 5 2/22/2019
Submittals Received Selection Criteria
Best
Contracting
Services, Inc.
$85.00/hour
Municipal
Code
SMMC 2.24.072
$160.00/hour (OT)
Commercial
Roofing
Systems, Inc.
$109.00/hour
Evaluation
Criteria
Price, previous experience, ability to
deliver, quality of product, and
compliance with City specifications. $153.00/hour (OT)
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Packet Pg. 214 Attachment: Staff Report_June 11, 2019 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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Concrete
Construction
$130.00/hour
Best and
Lowest
Bidders
Best Contracting Services, Inc., Letner
Roofing and Maverick Roofing, Inc. $177.00/hour (OT)
Letner
Roofing
$104.84/hour
$137.45/hour (OT)
Maverick
Roofing, Inc.
$55.69/hour
$72.88/hour (OT)
Best Bidder Justification
Best Contracting Services, Inc. has satisfactorily provided roofing contractor services for
the City for the past three years. In addition, Best Contracting Services, Inc. has
continued to provide competitive pricing and dependable service. Letner Roofing was
the most experienced bidder by over 20 years, and their bid submittal yielded impressive
references. Letner Roofing has successfully completed multi-million-dollar projects for
the University of Southern California, Cedars-Sinai Medical Center, Irvine School District
and the University of California, Los Angeles. These organizations confirmed that Letner
Roofing provided satisfactory work and remained budget-conscious. Maverick Roofing,
Inc. has provided roofing contractor services for the City, as a subcontractor, for the past
year. Maverick Roofing has provided fast response times and the most competitive
pricing. Based on these criteria, Best Contracting Services, Inc., Letner Roofing and
Maverick Roofing, Inc., are recommended as the best bidders.
*Lowest bids were based on the general pricing total (regular time and overtime)
Financial Impacts and Budget Actions
Staff seeks authority to award agreements with Best Contracting Services, Inc., Letner
Roofing and Maverick Roofing, Inc. for roofing contractor services.
Agreement Requests
Contractor
Request
Amounts
FY 2019-20 Budget
Public Works Department
Account #
Total
Contract
Amounts
Best Contracting Services, Inc. $75,000 01500020.529480 $375,000
Letner Roofing $100,000 01500020.529480 $580,650
Maverick Roofing, Inc. $55,000 01500020.529480 $275,000
Future year funding is contingent on Council budget approval
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Packet Pg. 215 Attachment: Staff Report_June 11, 2019 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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Prepared By: Kyla Johnson, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Best Contracting Services Oaks Initiative Disclosure Form
B. Letner Roofing Co. Oaks Initiative Disclosure Form
C. Maverick Roofing Oaks Initiative Disclosure Form
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Packet Pg. 216 Attachment: Staff Report_June 11, 2019 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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Contract No. 10854 (CCS)
CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Contract”), entered into as of
_________________(“Execution Date”), by and between the CITY OF SANTA
MONICA, a municipal corporation (“City”), and Best Contracting Services Inc. (“Best
Contracting Services”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of the City.
B. Best Contracting Services is qualified to do business, and is doing business, in the
State of California. Best Contracting Services represents it has the background,
knowledge, experience and expertise necessary to provide the services set forth in this
Contract.
C. The City and Best Contracting Services desire to enter into an agreement for the Best
Contracting Services to provide contractual services to the City as set forth herein,
upon the terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
TERMS AND CONDITIONS
1. Term. This Agreement begins on the Execution Date and terminates two calendar
years after the Execution Date, unless sooner terminated in accordance with Section
14.
1.1 Option to Extend. The City, in its sole and complete discretion, shall have the
option to renew this agreement for (1) additional (3) year period (“Extension
Term”), in accordance with the schedule set forth in Exhibit B.
2. Best Contracting Services Services. Best Contracting Services will perform all of the
services (“Services”) described in Exhibit A, Scope of Services. Best Contracting
Services will complete the Services in accordance with Exhibit B, Budget.
3. City Services. The City agrees to:
16.1 Make available to Best Contracting Services any currently existing documents,
data or information required for the performance of the Services.
16.2 Designate a representative authorized to act on behalf of City.
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Packet Pg. 217 Attachment: Best Contracting Services_Agreement 10854 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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16.3 Promptly examine and render findings on all documents submitted for staff
review by Best Contracting Services.
4. Compensation. The City will compensate Best Contracting Services for the Services
performed in an amount not to exceed $150,000 as set forth in Exhibit B.
4.1 Total Amount Not To Exceed. In the event the City exercises the (1)
additional (3) year renewal option, the total amount for the Term and Extension
Term shall not exceed $375,000, as set forth in Exhibit B.
5. Invoices. Best Contracting Services will invoice the City for the Services in accordance
with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this
Agreement, must be in writing and will be deemed served when delivered personally,
by email, or on the third business day after deposit in the United States mail, postage
prepaid, registered or certified, addressed as follows:
6.1 All notices, demands, requests or approvals to the City:
Facilities Maintenance Division
City of Santa Monica
2500 Michigan Avenue
Santa Monica, California 90404
Attention: Shidan Adlparvar
Re: Contract No. 10854
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No. 10854
6.2 All notices, demands, requests or approvals to Best Contracting Services:
Best Contracting Services
19027 S. Hamilton Avenue
Gardena, CA 90248-4408
Attention: Candys Simpkins
cruffin@bestcontracting.com; 310-328-6969 Ext. 243
Re: Contract No. 10854
7. Independent Parties. Both parties to this Agreement will be acting in an independent
capacity and not as agents, employees, partners, or joint venturers of one another.
Neither the City nor its officers or employees will have any control over the conduct
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of Best Contracting Services or any of Best Contracting Services’ agents, employees, or
subcontractors, except as otherwise provided in this Agreement.
8. Integrated Contract. This Agreement represents the full and complete understanding
of every kind or nature whatsoever between the parties. Any preliminary negotiations
and agreements of any kind or nature are merged into this Agreement. No oral
agreement or implied covenant may be held to vary the provisions of this Agreement.
This Agreement may be modified only by written agreement signed by City and Best
Contracting Services, and approved as to form by the City Attorney.
9. Insurance. Prior to commencing work, Best Contracting Services must procure,
maintain and pay for insurance against claims for injuries to persons or damage to
property that may arise from or in connection with the performance of the Services by
Best Contracting Services or Best Contracting Services’ agents, representatives,
employees or subcontractors for the duration of this Agreement. Best Contracting
Services must obtain insurance that, at a minimum, meets the requirements for
insurance set forth in Exhibit C, Insurance Requirements and Verifications.
10. Defense and Indemnification.
10.1 Best Contracting Services agrees to defend, indemnify, protect, and hold
harmless the City, its agents, officers, boards and commissions, and employees
(collectively, “City”) from and against any and all liability, claims, demands,
damages, or costs, including but not limited to attorney’s fees, or payments for
injury to any person or property (collectively, “Losses”) caused or claimed to be
caused by the act, errors, and/or omissions of Best Contracting Services, or
Best Contracting Services’ employees, agents, officers, and subcontractors. Best
Contracting Services’ responsibilities under this Section 10.1 include liability
arising from, connected with, caused by, or claimed to be caused by the active
or passive negligent acts or omissions of the City, which may be in combination
with the acts or omissions of Best Contracting Services, its employees, agents or
officers, or subcontractors; provided, however, that Best Contracting Services’
duty to defend, indemnify, protect and hold harmless shall not include any
Losses arising from the sole negligence or willful misconduct of the City.
Notwithstanding Best Contracting Services’ obligation to defend City
hereunder, City has the right to conduct its own defense and seek
reimbursement for reasonable costs of defense from Best Contracting Services,
if City chooses to do so.
10.2 Enforcement Costs. Best Contracting Services agrees to pay any and all costs
the City incurs enforcing the indemnity, defense and hold harmless provisions
set forth in Section 10.1.
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Packet Pg. 219 Attachment: Best Contracting Services_Agreement 10854 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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11. Prohibition Against Transfers.
11.1 Best Contracting Services may not assign, hypothecate, or transfer this
Agreement or any interest therein directly or indirectly, by operation of law or
otherwise without the prior written consent of City. Any attempt to do so
without the City’s consent will be null and void, and any assignee, hypothecatee
or transferee acquires no right or interest by reason of such attempted
assignment, hypothecation or transfer.
11.2 The sale, assignment, transfer or other disposition of any of the issued and
outstanding capital stock of Best Contracting Services or of any general partner
or joint venturer or syndicate member of Best Contracting Services, if a
partnership or joint venture or syndicate exists, which results in changing the
control of Best Contracting Services, will be construed as an assignment of this
Agreement. Control means 50% or more of the voting power of the
corporation.
12. Permits and Licenses. Best Contracting Services, at its sole expense, must obtain and
maintain during the term of this Agreement all required business and professional
permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any
subsequent breach of the same or any other term, covenant, or condition of this
Agreement.
14. Default and Termination.
14.1 If Best Contracting Services fails or refuses to perform any of the provisions of
this Agreement, and if the default is not cured within a period of five days after
the City’s written notice of default specifying the nature of the default, City may
immediately terminate this Agreement by written notice to Best Contracting
Services.
14.2 The City has the option, at its sole discretion and without cause, of terminating
this Agreement by giving ten days’ written notice to Best Contracting Services.
Upon termination of this Agreement, City will pay Best Contracting Services
any compensation earned and unpaid up to the effective date of termination.
15. Compliance with Law. Best Contracting Services must comply with all laws of the
State of California and the United States, and all ordinances, rules and regulations
enacted or issued by City including, but not limited to, Articles 2 and 3, Division 2,
Part 7, Chapter 1 of the Labor Code, State of California related to prevailing wage,
apprentices, penalties and certified payroll.
16. Registration with the Department of Industrial Relations; Compliance Monitoring.
16.1 No contractor or subcontractor may be listed on a bid proposal for a public works
project (submitted on or after March 1, 2015) unless registered with the
Department of Industrial Relations pursuant to Labor Code section 1725.5 [with
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limited exceptions from this requirement for bid purposes only under Labor
Code section 1771.1(a)].
16.2 No contractor or subcontractor may be awarded a contract for public work on a
public works project (awarded on or after April 1, 2015) unless registered with
the Department of Industrial Relations pursuant to Labor Code section 1725.5.
16.3 This project is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.
17. Discrimination. Best Contracting Services may not discriminate in the provision of
services hereunder because of race, color, religion, national origin, ancestry, sex, age,
sexual orientation, marital status, AIDS or disability.
18. Nuisance. Best Contracting Services may not maintain, commit, or permit the
maintenance or commission of any nuisance in connection with the performance of
services under this Agreement.
19. Records.
19.1 Best Contracting Services must maintain complete and accurate records with
respect to costs, expenses, receipts and other such information required by the
City for any services provided where compensation is on the basis of hourly
rates, subcontractor costs, or other direct costs. Best Contracting Services must
keep the records, together with supporting documents, separate from other
documents and records and maintain them for a period of three years after
receipt of final payment.
19.2 Best Contracting Services must maintain records in sufficient detail to permit an
evaluation of the Services and in accordance with generally accepted accounting
principles. Best Contracting Services must clearly identify all records and make
them readily accessible to the City. At the City’s request, Best Contracting
Services must provide records in an electronic format and, if necessary, access to
any proprietary software to view such electronic records.
19.3 Best Contracting Services must allow the City to have free access to Best
Contracting Services’ books and records and to inspect all work, data,
documents, proceedings and activities related to this Agreement. The City has
the right to examine or audit Best Contracting Services’ records, and Best
Contracting Services agrees to cooperate with any examination or audit of its
records. If a City audit discloses an error of 5% or more in information reported
by Best Contracting Services, Best Contracting Services agrees to pay the cost of
the City’s audit computed on the basis of four times the direct payroll of the
audit staff completing the audit and audit report.
20. Work Product; Reports.
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20.1 Any work product prepared or caused to be prepared by Best Contracting
Services or any subcontractor for this Agreement will be the exclusive property
of City. No work product given to or prepared by Best Contracting Services or
any subcontractor pursuant to this Agreement may be made available to any
individual or organization by Best Contracting Services without prior written
approval by City.
20.2 At the City’s request, Best Contracting Services must furnish reports concerning
the status of the Services.
21. Standard of Care. Best Contracting Services agrees to provide all Services, including
services performed by any subcontractor, in a manner consistent with the level of care
and skill ordinarily exercised by members of Best Contracting Services’ profession
currently practicing in the same locality under similar conditions.
22. Subcontractors.
22.1 If Best Contracting Services proposes to have any subcontractor perform any
part of the Services, Best Contracting Services must submit a request for
approval in writing, describing the scope of work to be subcontracted, the name
of the proposed subcontractor, and the total price or hourly rates used in
preparing an estimated cost for the subcontractor’s services. The City, in its sole
discretion, may grant or deny the request.
22.2 Best Contracting Services will be responsible for the quality of any
subcontractor’s work. Every subcontract or agreement of any kind entered into
between Best Contracting Services and any subcontractor (or between any
subcontractor and others) must contain the following provision:
This agreement is consistent with all terms and conditions of
the Agreement No. 10854 (CCS) entered into between the City
of Santa Monica and Best Contracting Services
on^^____________________.
23. Governing Law. The laws of the State of California, without regard to any choice of
law provisions, will govern this Agreement.
24. Venue and Jurisdiction. The City and Best Contracting Services agree that the
Services will take place in Los Angeles County. Any litigation arising out of this
Agreement may only be brought in either the United States District Court, Central
District of California, or the Superior Court of California, County of Los Angeles,
West District, as appropriate. The parties agree that venue exists in either court, and
each party expressly waives any right to transfer to another venue. The parties further
agree that either court will have personal jurisdiction over the parties to this
Agreement.
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Packet Pg. 222 Attachment: Best Contracting Services_Agreement 10854 (5910 : 1st Modification of Contract for Citywide Roofing Service)
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25. Survival of Provisions and Obligations. Any provision of this Agreement, which by its
nature must be exercised after termination of this Agreement, will survive termination
and remain effective for a reasonable time. Any obligation that accrued prior to
termination of this Agreement will survive termination of this Agreement.
26. Exhibits. The following exhibits are incorporated by reference into this Contract as
though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
In witness whereof, the parties have caused this Agreement to be executed the day and
year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
Best Contracting Services Corporation
#VENDOR
By: ________________________________
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Lane Dilg
8/23/2019
City Attorney
Kayhan Fatemi
9/16/2019
Best Contracting Services, Inc.
Executive V.P.
9/26/2019
City Manager
Rick Cole
9/26/2019
City Clerk
Denise Anderson-Warren
5.C.b
Packet Pg. 223 Attachment: Best Contracting Services_Agreement 10854 (5910 : 1st Modification of Contract for Citywide Roofing Service)
Exhibit A
Scope of Services
1. GENERAL. Best Contracting Services, Inc. shall provide roofing repair and
replacement services at various City facilities. Work may include roof replacements or
repairs on a wide variety of roof types, emergency call outs for leak mitigation, and associated
work involving coatings, flashings, gutters, HVAC unit replacements (roof work only),
parapet well, roof drains/ scuppers, and skylights. Jobs shall be quoted individually and
requested as required (no guaranteed usage).
2. APPROVAL OF WORK. Best Contracting Services, Inc. shall provide a written
proposal with pricing for approval for all jobs requested by Facilities Maintenance staff. All
work under this contract must be authorized by the Carpenter Crew Leader, Facilities
Supervisor or Facilities Services Administrator. City staff shall approve all jobs in writing
prior to the start of work (generally in the form of an e-mail approval) with the exception of
emergency work requested by staff to address a clear and present hazard to the public, City
staff, the environment and/or City property. A written proposal or invoice shall be
submitted to the City with accurate cost information as soon as is practicable after
emergency work approval based on a verbally provided cost estimate.
3. CONTRACTORS LICENSE / REGISTRATION WITH THE STATE OF
CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS. Best Contracting
Services, Inc. shall maintain a valid C-39 California Roofing Contractors License during the
term of this agreement. Best Contracting Services, Inc. must have appropriate certifications
to work on certain roof material (e.g. Sika Sarnafil). If required, Best Contracting Services,
Inc. shall maintain a valid registration as a Public Works contractor on the Department of
Industrial Relations website: http://www.dir.ca.gov/Public-Works/PublicWorks.html
4. PERFORMANCE OF WORK. Work dates / times shall be coordinated in advance
with City Carpentry staff who shall facilitate access to City locations. The City may opt to
provide materials and/or labor to assist with various work.
5. PREVAILING WAGE / CERTIFIED PAYROLL RECORDS. The City shall notify
Best Contracting Services, Inc. of projects to be performed under this contract where
prevailing wage must be paid and certified payroll records must be submitted. Certified
payroll records shall be submitted electronically via the State Department of Industrial
Relations’ electronic Certified Payroll Reporting (eCPR) system, and if requested, to
Facilities Maintenance staff.
6. WASTE MATERIALS DISPOSAL. Best Contracting Services, Inc. shall remove any
trash and waste materials generated by work performed under this contract unless
otherwise specified by Facilities Maintenance staff.
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Exhibit B
Budget
I. Labor Rates. Jobs shall be quoted individually with specifications provided by Facilities
Maintenance Division staff using the labor rates noted below (per Bid 4377).
Contract Term Regular Labor Rate
(Per Hour)
Overtime Labor Rate
(Per Hour)
Years 1 & 2 $ 85 $ 160
II. Additional Pricing.
2.1.1. The after-hours / weekend labor rate (otherwise known as Overtime) shall
be applicable for work completed Friday – Monday after 4 p.m.
2.1.2. The minimum call-out charge shall be $2,000.
III. Total Compensation.
3.1.1. The City will compensate Best Contracting Services, Inc. for the services
performed in an amount to exceed $150,000 for the Contract Term.
3.1.2. Extension Term: (1) additional (3) year renewal option; the total amount
for the Term and Extension Term shall not exceed ($375,000).
IV. Invoices. Best Contracting Services, Inc. shall invoice the City per job under Net 30
terms.
Extension Term Regular Labor Rate
(Per Hour)
Overtime Labor Rate
(Per Hour)
Years 3,4 &5 $ 85 $ 160
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Exhibit C
Insurance Requirements
Contractual Services Agreement Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against
claims for injuries to persons or damages to property that may arise from or in connection
with the performance of the work hereunder by the Contractor, its agents, representatives,
employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01
covering CGL on an “occurrence” basis, including products and completed operations,
property damage, bodily injury and personal and advertising injury, with limits of no
less than $1,000,000 per occurrence. If a general aggregate limit applies, either the
general aggregate limit shall apply separately to this project/location (Insurance Services
Office Form CG 25 04) or the general aggregate limit shall be twice the required
occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any
auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 (non-owned),
with limits of no less than $1,000,000 per accident for bodily injury and property
damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State
of California, with Statutory Limits and Employers’ Liability Insurance with limits of
no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
If the Contractor maintains broader coverage or higher limits than the minimums shown
above, the City of Santa Monica requires and shall be entitled to the broader coverage or
higher limits maintained by the Contractor. Any available insurance proceeds in excess of
the specified minimum limits of insurance and coverage shall be available to the City of
Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following
provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials,
employees and volunteers are to be covered as additional insureds on the CGL
policy with respect to liability arising out of work or operations performed by or on
behalf of Contractor including materials, parts, or equipment furnished in
connection with such work or operations. CGL coverage can be provided in the
form of an endorsement to the Contractor’s insurance (at least as broad as
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Insurance Services Office Form CG 20 10 11 85, or if not available, through the
addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37).
b. Primary Coverage: For any claims related to this Agreement, the Contractor’s
insurance shall be primary coverage as least as broad as Insurance Services Office
Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials,
employees and volunteers. Any insurance or self-insurance maintained by the City
of Santa Monica, its officers, officials, employees or volunteers shall be in excess of
the Contractor’s insurance and shall not contribute with it.
c. Notice of Cancellation: Each insurance policy required herein shall state that
coverage shall not be cancelled except after notice has been given to the City of
Santa Monica.
d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a
waiver of any right of subrogation which any insurer of said Contractor may acquire
against the City of Santa Monica by virtue of payment of any loss. Contractor agrees
to obtain any endorsement that may be necessary to affect this waiver of
subrogation, but this provision applies regardless of whether or not the City of Santa
Monica has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation
in favor of the City of Santa Monica for all work performed by the Contractor, its
employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The
City of Santa Monica may require the Contractor to purchase coverage with a lower
retention or provide satisfactory proof of ability to pay losses and related investigations,
claim administration, and defense expenses within the retention. The policy language shall
provide, or be endorsed to provide, that the self-insured retention may be satisfied by either
the name insured or the City of Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a
current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of
Santa Monica.
Verification of Coverage
Contractor shall furnish the City of Santa Monica with original certificates and amendatory
endorsements (or copies of the applicable policy language effecting coverage provided by
this clause). All certificates and endorsements are to be received and approved by the City
of Santa Monica before work commences. However, failure to obtain required documents
prior to the work beginning shall not waive the Contractor’s obligation to provide them.
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The City of Santa Monica reserves the right to require complete, certified copies of all
required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Contractor, for any reason, fails to maintain insurance coverage which is required
pursuant to this Agreement, the same shall be deemed a material breach of contract. The
City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages
from the Contractor resulting from said breach.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all
the requirements stated herein. All exceptions must be approved in writing by the Risk
Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does
not have employees. The Contractor must, however, execute the City’s Workers’
Compensation Coverage Exemption Declaration Form.
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Contract No. 10855 (CCS)
CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Contract”), entered into as of
_________________ (“Execution Date”), by and between the CITY OF SANTA
MONICA, a municipal corporation (“City”), and Danny Letner Inc. (“Letner Roofing
Co.”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of the City.
B. Letner Roofing Co. is qualified to do business, and is doing business, in the State of
California. Letner Roofing Co. represents it has the background, knowledge,
experience and expertise necessary to provide the services set forth in this Contract.
C. The City and Letner Roofing Co. desire to enter into an agreement for the Letner
Roofing Co. to provide contractual services to the City as set forth herein, upon the
terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
TERMS AND CONDITIONS
1. Term. This Agreement begins on the Execution Date and terminates two calendar
years after the Execution Date, unless sooner terminated in accordance with Section
14.
1.1 Option to Extend. The City, in its sole and complete discretion, shall have the
option to renew this agreement for one (1) additional 3-year period (“Extension
Term”), in accordance with the schedule set forth in Exhibit B.
2. Letner Roofing Co. Services. Letner Roofing Co. will perform all of the services
(“Services”) described in Exhibit A, Scope of Services. Letner Roofing Co. will
complete the Services in accordance with Exhibit B, Budget.
3. City Services. The City agrees to:
16.1 Make available to Letner Roofing Co. any currently existing documents, data or
information required for the performance of the Services.
16.2 Designate a representative authorized to act on behalf of City.
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16.3 Promptly examine and render findings on all documents submitted for staff
review by Letner Roofing Co.
4. Compensation. The City will compensate Letner Roofing Co. for the Services
performed in an amount not to exceed $200,000 as set forth in Exhibit B.
4.1 Total Amount Not To Exceed. In the event the City exercises the one (1)
additional 3-year renewal option, the total amount for the Term and Extension
Term shall not exceed $580,650, as set forth in Exhibit B.
5. Invoices. Letner Roofing Co. will invoice the City for the Services in accordance with
Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this
Agreement, must be in writing and will be deemed served when delivered personally,
by email, or on the third business day after deposit in the United States mail, postage
prepaid, registered or certified, addressed as follows:
6.1 All notices, demands, requests or approvals to the City:
Facilities Maintenance Division
City of Santa Monica
2500 Michigan Avenue
Santa Monica, California 90404
Attention: Shidan Adlparvar
Re: Contract No. 10855
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No. 10855
6.2 All notices, demands, requests or approvals to Letner Roofing Co.:
Letner Roofing Co.
1490 N. Glassell Street
Orange, CA 92867
Attention: Dennis Olson
rzazueta@letner.com; 310-328-6969 Ext. 243
Re: Contract No. 10855
7. Independent Parties. Both parties to this Agreement will be acting in an independent
capacity and not as agents, employees, partners, or joint venturers of one another.
Neither the City nor its officers or employees will have any control over the conduct
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of Letner Roofing Co. or any of Letner Roofing Co.’s agents, employees, or
subcontractors, except as otherwise provided in this Agreement.
8. Integrated Contract. This Agreement represents the full and complete understanding
of every kind or nature whatsoever between the parties. Any preliminary negotiations
and agreements of any kind or nature are merged into this Agreement. No oral
agreement or implied covenant may be held to vary the provisions of this Agreement.
This Agreement may be modified only by written agreement signed by City and Letner
Roofing Co. and approved as to form by the City Attorney.
9. Insurance. Prior to commencing work, Letner Roofing Co. must procure, maintain
and pay for insurance against claims for injuries to persons or damage to property that
may arise from or in connection with the performance of the Services by Letner
Roofing Co. or Letner Roofing Co.’s agents, representatives, employees or
subcontractors for the duration of this Agreement. Letner Roofing Co. must obtain
insurance that, at a minimum, meets the requirements for insurance set forth in
Exhibit C, Insurance Requirements and Verifications.
10. Defense and Indemnification.
10.1 Letner Roofing Co. agrees to defend, indemnify, protect, and hold harmless
the City, its agents, officers, boards and commissions, and employees
(collectively, “City”) from and against any and all liability, claims, demands,
damages, or costs, including but not limited to attorney’s fees, or payments for
injury to any person or property (collectively, “Losses”) caused or claimed to be
caused by the act, errors, and/or omissions of Letner Roofing Co. , or Letner
Roofing Co. ’ employees, agents, officers, and subcontractors. Letner Roofing
Co. ’ responsibilities under this Section 10.1 include liability arising from,
connected with, caused by, or claimed to be caused by the active or passive
negligent acts or omissions of the City, which may be in combination with the
acts or omissions of Letner Roofing Co. , its employees, agents or officers, or
subcontractors; provided, however, that Letner Roofing Co. ’ duty to defend,
indemnify, protect and hold harmless shall not include any Losses arising from
the sole negligence or willful misconduct of the City. Notwithstanding Letner
Roofing Co.’s obligation to defend City hereunder, City has the right to
conduct its own defense and seek reimbursement for reasonable costs of
defense from Letner Roofing Co. if City chooses to do so.
10.2 Enforcement Costs. Letner Roofing Co. agrees to pay any and all costs the
City incurs enforcing the indemnity, defense and hold harmless provisions set
forth in Section 10.1.
11. Prohibition Against Transfers.
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11.1 Letner Roofing Co. may not assign, hypothecate, or transfer this Agreement or
any interest therein directly or indirectly, by operation of law or otherwise
without the prior written consent of City. Any attempt to do so without the
City’s consent will be null and void, and any assignee, hypothecatee or
transferee acquires no right or interest by reason of such attempted assignment,
hypothecation or transfer.
11.2 The sale, assignment, transfer or other disposition of any of the issued and
outstanding capital stock of Letner Roofing Co. or of any general partner or
joint venturer or syndicate member of Letner Roofing Co. , if a partnership or
joint venture or syndicate exists, which results in changing the control of Letner
Roofing Co. , will be construed as an assignment of this Agreement. Control
means 50% or more of the voting power of the corporation.
12. Permits and Licenses. Letner Roofing Co. at its sole expense, must obtain and
maintain during the term of this Agreement all required business and professional
permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any
subsequent breach of the same or any other term, covenant, or condition of this
Agreement.
14. Default and Termination.
14.1 If Letner Roofing Co. fails or refuses to perform any of the provisions of this
Agreement, and if the default is not cured within a period of five days after the
City’s written notice of default specifying the nature of the default, City may
immediately terminate this Agreement by written notice to Letner Roofing Co.
14.2 The City has the option, at its sole discretion and without cause, of terminating
this Agreement by giving ten days’ written notice to Letner Roofing Co. Upon
termination of this Agreement, City will pay Letner Roofing Co. any
compensation earned and unpaid up to the effective date of termination.
15. Compliance with Law. Letner Roofing Co. must comply with all laws of the State of
California and the United States, and all ordinances, rules and regulations enacted or
issued by City including, but not limited to, Articles 2 and 3, Division 2, Part 7,
Chapter 1 of the Labor Code, State of California related to prevailing wage,
apprentices, penalties and certified payroll.
16. Registration with the Department of Industrial Relations; Compliance Monitoring.
16.1 No contractor or subcontractor may be listed on a bid proposal for a public works
project (submitted on or after March 1, 2015) unless registered with the
Department of Industrial Relations pursuant to Labor Code section 1725.5 [with
limited exceptions from this requirement for bid purposes only under Labor
Code section 1771.1(a)].
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16.2 No contractor or subcontractor may be awarded a contract for public work on a
public works project (awarded on or after April 1, 2015) unless registered with
the Department of Industrial Relations pursuant to Labor Code section 1725.5.
16.3 This project is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.
17. Discrimination. Letner Roofing Co. may not discriminate in the provision of services
hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual
orientation, marital status, AIDS or disability.
18. Nuisance. Letner Roofing Co. may not maintain, commit, or permit the maintenance
or commission of any nuisance in connection with the performance of services under
this Agreement.
19. Records.
19.1 Letner Roofing Co. must maintain complete and accurate records with respect
to costs, expenses, receipts and other such information required by the City for
any services provided where compensation is on the basis of hourly rates,
subcontractor costs, or other direct costs. Letner Roofing Co. must keep the
records, together with supporting documents, separate from other documents
and records and maintain them for a period of three years after receipt of final
payment.
19.2 Letner Roofing Co. must maintain records in sufficient detail to permit an
evaluation of the Services and in accordance with generally accepted accounting
principles. Letner Roofing Co. must clearly identify all records and make them
readily accessible to the City. At the City’s request, Letner Roofing Co. must
provide records in an electronic format and, if necessary, access to any
proprietary software to view such electronic records.
19.3 Letner Roofing Co. must allow the City to have free access to Letner Roofing
Co.’s books and records and to inspect all work, data, documents, proceedings
and activities related to this Agreement. The City has the right to examine or
audit Letner Roofing Co.’s records, and Letner Roofing Co. agrees to cooperate
with any examination or audit of its records. If a City audit discloses an error of
5% or more in information reported by Letner Roofing Co., Letner Roofing
Co. agrees to pay the cost of the City’s audit computed on the basis of four
times the direct payroll of the audit staff completing the audit and audit report.
20. Work Product; Reports.
20.1 Any work product prepared or caused to be prepared by Letner Roofing Co. or
any subcontractor for this Agreement will be the exclusive property of City. No
work product given to or prepared by Letner Roofing Co. or any subcontractor
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pursuant to this Agreement may be made available to any individual or
organization by Letner Roofing Co. without prior written approval by City.
20.2 At the City’s request, Letner Roofing Co. must furnish reports concerning the
status of the Services.
21. Standard of Care. Letner Roofing Co. agrees to provide all Services, including
services performed by any subcontractor, in a manner consistent with the level of care
and skill ordinarily exercised by members of Letner Roofing Co. ’ profession currently
practicing in the same locality under similar conditions.
22. Subcontractors.
22.1 If Letner Roofing Co. proposes to have any subcontractor perform any part of
the Services, Letner Roofing Co. must submit a request for approval in writing,
describing the scope of work to be subcontracted, the name of the proposed
subcontractor, and the total price or hourly rates used in preparing an estimated
cost for the subcontractor’s services. The City, in its sole discretion, may grant or
deny the request.
22.2 Letner Roofing Co. will be responsible for the quality of any subcontractor’s
work. Every subcontract or agreement of any kind entered into between Letner
Roofing Co. and any subcontractor (or between any subcontractor and others)
must contain the following provision:
This agreement is consistent with all terms and conditions of
the Agreement No. 10855 (CCS) entered into between the City
of Santa Monica and Letner Roofing Co.
on^^____________________.
23. Governing Law. The laws of the State of California, without regard to any choice of
law provisions, will govern this Agreement.
24. Venue and Jurisdiction. The City and Letner Roofing Co. agree that the Services will
take place in Los Angeles County. Any litigation arising out of this Agreement may
only be brought in either the United States District Court, Central District of
California, or the Superior Court of California, County of Los Angeles, West District,
as appropriate. The parties agree that venue exists in either court, and each party
expressly waives any right to transfer to another venue. The parties further agree that
either court will have personal jurisdiction over the parties to this Agreement.
25. Survival of Provisions and Obligations. Any provision of this Agreement, which by its
nature must be exercised after termination of this Agreement, will survive termination
and remain effective for a reasonable time. Any obligation that accrued prior to
termination of this Agreement will survive termination of this Agreement.
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26. Exhibits. The following exhibits are incorporated by reference into this Contract as
though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
In witness whereof, the parties have caused this Agreement to be executed the day and
year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
Letner Roofing Co. Corporation
By: ________________________________
DocuSign Envelope ID: 777F02F3-2FCE-41A5-B231-B5E5B3FD16F2
10/23/2019
City Attorney
Lane Dilg
Jose Romero
Rick Cole
City Manager
10/30/2019
City Clerk
Denise Anderson-Warren
10/31/2019
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Exhibit A
Scope of Services
1. GENERAL. Letner Roofing Co. shall provide roofing repair and replacement services
at various City facilities. Work may include roof replacements or repairs on a wide variety
of roof types, emergency call outs for leak mitigation, and associated work involving
coatings, flashings, gutters, HVAC unit replacements (roof work only), parapet well, roof
drains/ scuppers, and skylights. Jobs shall be quoted individually and requested as required
(no guaranteed usage).
2. APPROVAL OF WORK. Letner Roofing Co. shall provide a written proposal with
pricing for approval for all jobs requested by Facilities Maintenance staff. All work under
this contract must be authorized by the Carpenter Crew Leader, Facilities Supervisor or
Facilities Services Administrator. City staff shall approve all jobs in writing prior to the start
of work (generally in the form of an e-mail approval) with the exception of emergency work
requested by staff to address a clear and present hazard to the public, City staff, the
environment and/or City property. A written proposal or invoice shall be submitted to the
City with accurate cost information as soon as is practicable after emergency work approval
based on a verbally provided cost estimate.
3. CONTRACTORS LICENSE / REGISTRATION WITH THE STATE OF
CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS. Letner Roofing Co.
shall maintain a valid C-39 California Roofing Contractors License during the term of this
agreement. Letner Roofing Co. must have appropriate certifications to work on certain roof
material (e.g. Sika Sarnafil). If required, Letner Roofing Co. shall maintain a valid
registration as a Public Works contractor on the Department of Industrial Relations
website: http://www.dir.ca.gov/Public-Works/PublicWorks.html
4. PERFORMANCE OF WORK. Work dates / times shall be coordinated in advance
with City staff who shall facilitate access to City locations. The City may opt to provide
materials and/or labor to assist with various work.
5. PREVAILING WAGE / CERTIFIED PAYROLL RECORDS. The City shall notify
Letner Roofing Co. of projects to be performed under this contract where prevailing wage
must be paid and certified payroll records must be submitted. Certified payroll records
shall be submitted electronically via the State Department of Industrial Relations’
electronic Certified Payroll Reporting (eCPR) system, and if requested, to Facilities
Maintenance staff.
6. WASTE MATERIALS DISPOSAL. Letner Roofing Co. shall remove any trash and
waste materials generated by work performed under this contract unless otherwise
specified by Facilities Maintenance staff.
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Exhibit B
Budget
I. Labor Rates. Jobs shall be quoted individually with specifications provided by Facilities
Maintenance Division staff using the labor rates noted below (per Bid 4377).
Contract Term Regular Labor Rate
(Per Hour)
Overtime Labor Rate
(Per Hour)
Years 1 & 2 $ 104.84 $ 137.45
II. Additional Pricing.
2.1.1. The after-hours / weekend labor rate (otherwise known as Overtime) shall
be applicable for work completed on Saturday and Sunday – between 3
p.m. and 7 a.m.
2.1.2. The minimum call-out charge shall be $1,800.
III. Total Compensation.
3.1.1. The City will compensate Letner Roofing Co. for the services performed
in an amount to exceed $200,000 for the Contract Term.
3.1.2. Extension Term: one (1) additional 3-year renewal option; the total
amount for the Term and Extension Term shall not exceed $580,650.
IV. Invoices. Letner Roofing Co. shall invoice the City per job under Net 30 terms.
Extension Term Regular Labor Rate
(Per Hour)
Overtime Labor Rate
(Per Hour)
Year 3 $120.57 $ 158.07
Year 4 $ 132.63 $ 173.88
Year 5 $ 145.89 $ 191.27
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Exhibit C
Insurance Requirements
Contractual Services Agreement Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against
claims for injuries to persons or damages to property that may arise from or in connection
with the performance of the work hereunder by the Contractor, its agents, representatives,
employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01
covering CGL on an “occurrence” basis, including products and completed operations,
property damage, bodily injury and personal and advertising injury, with limits of no
less than $1,000,000 per occurrence. If a general aggregate limit applies, either the
general aggregate limit shall apply separately to this project/location (Insurance Services
Office Form CG 25 04) or the general aggregate limit shall be twice the required
occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any
auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 (non-owned),
with limits of no less than $1,000,000 per accident for bodily injury and property
damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State
of California, with Statutory Limits and Employers’ Liability Insurance with limits of
no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
If the Contractor maintains broader coverage or higher limits than the minimums shown
above, the City of Santa Monica requires and shall be entitled to the broader coverage or
higher limits maintained by the Contractor. Any available insurance proceeds in excess of
the specified minimum limits of insurance and coverage shall be available to the City of
Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following
provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials,
employees and volunteers are to be covered as additional insureds on the CGL
policy with respect to liability arising out of work or operations performed by or on
behalf of Contractor including materials, parts, or equipment furnished in
connection with such work or operations. CGL coverage can be provided in the
form of an endorsement to the Contractor’s insurance (at least as broad as
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Insurance Services Office Form CG 20 10 11 85, or if not available, through the
addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37).
b. Primary Coverage: For any claims related to this Agreement, the Contractor’s
insurance shall be primary coverage as least as broad as Insurance Services Office
Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials,
employees and volunteers. Any insurance or self-insurance maintained by the City
of Santa Monica, its officers, officials, employees or volunteers shall be in excess of
the Contractor’s insurance and shall not contribute with it.
c. Notice of Cancellation: Each insurance policy required herein shall state that
coverage shall not be cancelled except after notice has been given to the City of
Santa Monica.
d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a
waiver of any right of subrogation which any insurer of said Contractor may acquire
against the City of Santa Monica by virtue of payment of any loss. Contractor agrees
to obtain any endorsement that may be necessary to affect this waiver of
subrogation, but this provision applies regardless of whether or not the City of Santa
Monica has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation
in favor of the City of Santa Monica for all work performed by the Contractor, its
employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The
City of Santa Monica may require the Contractor to purchase coverage with a lower
retention or provide satisfactory proof of ability to pay losses and related investigations,
claim administration, and defense expenses within the retention. The policy language shall
provide, or be endorsed to provide, that the self-insured retention may be satisfied by either
the name insured or the City of Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a
current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of
Santa Monica.
Verification of Coverage
Contractor shall furnish the City of Santa Monica with original certificates and amendatory
endorsements (or copies of the applicable policy language effecting coverage provided by
this clause). All certificates and endorsements are to be received and approved by the City
of Santa Monica before work commences. However, failure to obtain required documents
prior to the work beginning shall not waive the Contractor’s obligation to provide them.
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The City of Santa Monica reserves the right to require complete, certified copies of all
required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Contractor, for any reason, fails to maintain insurance coverage which is required
pursuant to this Agreement, the same shall be deemed a material breach of contract. The
City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages
from the Contractor resulting from said breach.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all
the requirements stated herein. All exceptions must be approved in writing by the Risk
Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does
not have employees. The Contractor must, however, execute the City’s Workers’
Compensation Coverage Exemption Declaration Form.
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5.C.d
Packet Pg. 241 Attachment: Maverick Roofing_Agreement 10856 (5910 : 1st Modification of Contract for Citywide Roofing Service)
5.C.e
Packet Pg. 242 Attachment: Best Contracting OAKS (5910 : 1st Modification of Contract for Citywide Roofing Service)
5.C.e
Packet Pg. 243 Attachment: Best Contracting OAKS (5910 : 1st Modification of Contract for Citywide Roofing Service)