2005-105 - Authorizing The Town Manager To Enter Into An Agreement With Republic Electric To Provide Underground Utility Locating ServicesRESOLUTION 2005 -105
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT
WITH REPUBLIC ELECTRIC
TO PROVIDE UNDERGROUND UTILITY LOCATING SERVICES
WHEREAS, it is in the best interest of the Town of Los Gatos to contract with
Republic Electric for underground utility locating services; and
WHEREAS, The Town is in need of underground utility locating services for
locating street lights, traffic signals, and storm drain facilities; and
NOW, THEREFORE, IT IS RESOLVED that the Town Council of the Town of
Los Gatos hereby approves the attached Agreement attached as (Exhibit A) with Republic
Electric to provide Underground Utility Locating Services; and
BE IT FURTHER RESOLVED that the Town Council does hereby authorize the
Town Manager to execute this agreement with Republic Electric providing Underground
Locating Services.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 3rd day of October, 2005 by the following vote:
COUNCIL MEMBERS:
AYES: Steve Glickman, Diane McNutt, Joe Pirzynski, Barbara Spector,
Mayor Mike Wasserman.
NAYS: None
ABSENT: None
ABSTAIN: None .
SIGNED: W M4 �
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
+CL.-ADM ISTR - OR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
AGREEMENT FOR UNDERGROUND FACILITY
LOCATING AND MARKING SERVICES
This agreement is made on , between Republic Electric, 371 Be[ Marin Keys
Boulevard, Suite 200, Novato, CA 94949 -5699 ( "Contractor "), and The Town of Los Gatos,
P. O. Box 949, Los Gatos, CA 95031 ( "Customer ").
ARTICLE 1: Locating and Marking Services
Section 1.1 — Retention of Contractor
Customer retains Contractor to perform, and Contractor agrees to perform, underground
facility locating and marking services (Services) for Customer underground facilities in the
service territory identified in Exhibit - A and made a part of this Agreement, and any other
territories that the parties may agree to in writing.
Section 1.2 — Scope of Services
1. Contractor agrees to receive all excavation notices, (Requests), directed to Customer
from any source, including requests generated through the One -Call Center.
2. Customer agrees to instruct the One -Call Center to transmit Requests involving
Customer's underground facilities directly to Contractor.
3. Contractor shall respond to and complete all locate requests in accordance with State
laws. Contractor shall, for each locate request, review the Customer's underground
facility maps, determine any conflict between the proposed excavation and Customer's
facilities, and where conflict exists locate and mark such facilities.
4. Contractor shall use paint, flags, or stakes as necessary to identify the location of
Customer's facilities. Such markings shall be placed at reasonable distances and shall
be in accordance with the APWA uniform color code guidelines.
5. Contractor agrees to perform the Services as promptly as possible, and to electronically
close out all locate requests.
6. Contractor shall maintain records of all requests for a period of Three (3) years, from the
date of receipt.
7. All Services shall be performed in a good and workman -like manner and in accordance
with all applicable laws, regulations and ordinances, and shall comply with the locating
procedures as from time to time adopted and approved by the National Utility Locating
Contractor's Association (NULCA).
8. Contractor shall designate a single point of contact between Contractor and Customer to
serve as liaison for receipt and distribution of Customer's underground facility maps, and
other administrative issues.
9. In the event Contractor encounters any Customer underground facilities that are
"Identifiable, but Unlocateable ", Contractor shall notify Customer after having exhausted
reasonable efforts to locate such facility. Customer will either assist Contractor or
complete said locates at no cost to Contractor.
10. An "Identifiable, but Un- locatable" facility is defined as a facility whose presence is
known but which can not be located with "Reasonable Accuracy" using electronic
devices designed to respond to the presence of such underground facilities.
Section 1.3 — Materials Provided by Customer
During the term of this Agreement, Customer agrees to furnish Contractor with adequate
copies of Customer's underground facility maps and records. This shall include all available
maps, measurements, charts, technical information and updates, which are necessary to
locate Customer's underground facilities.
Page 1
Exhibit A
All such materials furnished or disclosed to Contractor by Customer in the performance of
this Agreement shall remain the property of Customer. All copies of such information shall
be returned to Customer upon the termination of this Agreement. Unless such materials
were previously known to Contractor free of any obligation to keep them confidential, or
subsequently made public by Customer, such materials shall be kept confidential by
Contractor, shall be used only in the performance of Services under this Agreement and
may not be used for any other purpose except as may be agreed upon in writing by
Customer. This obligation of confidentiality shall survive the termination of this Agreement.
Section 1.4 — Materials Provided by Contractor; Independent Contractor
During the term of this Agreement, Contractor agrees to provide sufficient qualified staff and
personnel, office and field equipment, transportation and supplies as are necessary to fulfill
its obligations under this Agreement, and shall furnish and maintain any and all state,
county and municipal licenses or permits which apply to the Services to be performed by
Contractor. Contractor hereby represents and agrees that it is engaged in an independent
business; that it will perform Services under this Agreement as an independent contractor
and none of its workers, agents or employees shall under any circumstance be construed
as an employee of Customer; that it has and hereby retains the right and responsibility to
exercise control and supervision of the Services and full control over the employment,
direction, compensation and discharge of all persons assisting it in performing the Services;
that it will be solely responsible for the payment of its employees and for the payment of all
federal, state, county and municipal taxes and contributions pertaining thereto; and that it
will be responsible for its own acts and for the acts of its employees, agents, and
subcontractors while performing Services under this Agreement. Nothing contained in this
Agreement shall create or be construed as creating the relationship of employer and
employee, or partnership or joint venture, between Customer and Contractor, or between
Customer and any person or persons employed or engaged by Contractor.
ARTICLE 11: Compensation for Services
Section 2.1 — Compensation for Services
In full and complete payment for the performance of Services under this Agreement,
Customer shall pay to Contractor the amounts set forth on (Exhibit -B Price Schedule)
attached to this Agreement. Customer shall compensate any service performed by
Contractor at the request of Customer, which is not provided on the Exhibit - B Schedule, at
the rates determined from time to time between the parties. Contractor shall invoice
Customer each week for the work performed the prior week. All invoices shall be due and
payable, and Customer shall pay the Compensation due, within thirty (30) days of the date
of the invoice.
ARTICLE 111: Term and Termination
Section 3.1 — Term of the Contract
The term of this Agreement shall be for one (1) year and begin on October 1, 2005 and
shall expire on September 30, 2006. The parties acknowledge that Contractor needs a
start -up period to inspect the materials received from Customer and to prepare to provide
the Services, and Customer shall provide all relevant materials to Contractor as soon as
practical after the execution of this Agreement. Contractor shall perform work at the prices
outlined in attached Exhibit B - Schedule of Pricing. Adjustments to said Schedule shall be
made once per year on the anniversary date of this agreement if needed. Such adjustments
shall be equal to any increase in the National Consumer Price Index (CPI) for the twelve-
month period ending two months prior to the anniversary of this contract.
Page 2
Section 3.2 — Termination
This Agreement, and the obligations of the parties, maybe terminated prior to the end of the
term only under the following circumstances and only in accordance with the following
procedures:
1. By either party after ten (10) days prior written notice in the event of the bankruptcy or
insolvency of a party, or in the event of the appointment of a receiver for the assets of a
party; or
2. By the non - breaching party after thirty (30) days prior written notice to the breaching party,
and after compliance with the procedures set forth in Section 3.3 of this Agreement, in the
event of a material breach by a party of its obligations under this Agreement; or
3. By either party, for any reason with thirty (30) days prior written notice to other party.
Section 3.3 — Procedures for Termination for Breach
In the event a party in good faith believes that the other party has breached its obligations
under this Agreement, the non - breaching party shall provide a written notice to the
breaching party specifying in reasonable detail the breach, which is alleged to have
occurred. If the party receiving the notice agrees that the breach has occurred, it shall be
given ten (10) days after the receipt of the notice to cure such breach or, in the event such a
breach can not be cured, to develop and submit to the other party policies or procedures, or
to take other action, to ensure that such a breach will not occur in the future. In the event
the party receiving the notice does not agree that the breach has occurred, such party shall
request in writing a meeting of their respective general managers to discuss the facts and
circumstances alleged to have resulted in the breach and to determine whether such a
breach has occurred. Such a meeting shall occur within five (5) days of the receipt of such a
request. At the meeting, the parties shall cooperate with each other and act in good faith to
resolve the dispute and their differences. In the event the meeting of the general managers
does not resolve the dispute as to whether a breach has occurred, a second meeting shall
be held between the parties and shall be attended by the general managers and the next
highest position within the applicable party with authority over the subject matter of this
Agreement. At the second meeting, the parties shall again cooperate with each other and
act in good faith to resolve the dispute and their differences. In the event the second
meeting of the parties does not resolve the dispute, the question of whether a breach has
occurred under this Agreement shall be submitted to binding mediation. A single mediator,
selected by the parties, shall conduct the mediation. If the parties cannot agree on the
mediator, each party shall submit three (3) selections for mediators, and the mediator shall
be selected by lot from the six (6) names submitted. The decision of the mediator shall be
rendered within ten (10) days of the mediation session, and shall be conclusive as to the
question of whether a breach 'has occurred under this Agreement. The costs and expenses
of the mediation shall be shared equally between the parties; provided, however, that each
party shall pay their own fees and expenses of their respective counsel, witnesses and
experts, if applicable. If the mediator determines that a breach has occurred, the breaching
party shall be entitled to cure the breach, or to establish procedures to ensure that another
similar breach will not occur, consistent with the first paragraph of this Section. The parties
acknowledge and agree that the foregoing provisions are intended to provide a process of
resolving disputes between them without the necessity of terminating this Agreement. The
parties hereby confirm their agreement to make diligent and good faith attempts to
cooperate with each other throughout the term of this Agreement, and to resolve all
differences in a fair and equitable manner.
Page 3
Section 3.4 —Transition of Contractors
Upon the termination of this Agreement, the parties agree to reasonably cooperate with
each other as is necessary to effect an orderly transition of the business contemplated in
this Agreement. In furtherance of this provision:
1. Contractor agrees to deliver to the Customer at or prior to the date of such termination the
materials supplied to Contractor pursuant to Section 1.3 of this Agreement, and to provide
Customer with all Requests received for which Services have not been performed as of the
date of termination; and
2. Customer agrees not to solicit or offer employment to the employees or agents of
Contractor for a period of 12 months following the termination of this agreement; and
3. The parties mutually agree to meet, prior to the proposed date of termination, to coordinate
between them the transition of unperformed Requests and ongoing major projects for which
Contractor has been providing Services. Contractor shall be entitled to, and Customer shall
pay, continued Compensation, pursuant to this Agreement, for any Services performed after
the termination, but at the request of Customer and in connection with the transition of the
business contemplated to another contractor. In the event Customer does not request any
additional Services in connection with such transition, the termination of this Agreement
shall relieve Contractor from all obligations to provide Services. Termination of this
Agreement shall not, however, relieve either party of any obligation to the other which arose
prior to the date of such termination.
ARTICLE IV: Insurance
Section 4.1 — Contractor's Insurance
Contractor shall maintain throughout the term of this Agreement the following insurance
coverage, and upon request shall provide to Customer certificates or policies evidencing the
following coverage:
1. Workers' compensation coverage in accordance with the laws of the State of Service
2. Commercial general liability insurance with the following minimum limits of liability:
• $1,000,000 Each occurrence
• $2,000,000 General aggregate
• $2,000,000 Products aggregate
• $1,000,000 Personal & advertising injury
3. Contractual liability insurance with minimum limits of $1,000,000.
4. Comprehensive automobile liability insurance with the minimum limits of liability at
$1,000,000 Combined single limit.
All insurance policies shall be written by reputable companies, authorized to issue insurance in
the State where work is performed., and shall name Customer as an additional insured party by
primary insured endorsement to such policies. Each policy shall provide that it will not be
canceled or amended except after thirty (30) days advance written notice to Customer, mailed
to the address indicated in this Agreement.
Page 4
ARTICLE V: Indemnification and Liabili
Section 5.1 — Indemnification by Contractor
Not withstanding the provisions of Section 5.4 herein, Contractor shall be liable for any
claim, lawsuit or damage to the property or facilities of Customer that results from an error
or omission by Contractor in locating and marking Customer's underground facilities. The
Contractor shall indemnify, defend and hold harmless the Customer and its officers,
directors, affiliates, agents, and employees from and against all claims, actions, damages,
losses, and expenses, including reasonable attorneys' fees and disbursements, arising out
of or resulting from a breach of this Agreement or the performance of the Services
performed under this Agreement, provided that such claim, action, damage, loss or expense
is caused in whole or in part by any act or omission of the Contractor, or any subcontractor
of the Contractor, or anyone directly or indirectly employed by any of them, or anyone for
whose acts any of them may be liable, regardless of whether or not it is caused in part by a
party indemnified hereunder.
Section 5.2 — Third Party Claims
Promptly after the receipt by a party to this Agreement of notice of any claim, action, suit or
proceeding by any person who is not a party to this Agreement (collectively, an "Action ")'
which is subject to indemnification, such party (the "Indemnified Party ") shall give
reasonable written notice to the party from whom indemnification is claimed (the
"Indemnifying Party "). The Indemnified Party's failure to so notify the Indemnifying Party of
any such matter shall not release the Indemnifying Party, in whole or in part, from its
obligations to indemnify under this Agreement, except to the extent the Indemnified Party's
failure to so notify actually prejudices the Indemnifying Party's ability to defend against such
Action. The Indemnified Party shall be entitled, at the sole expense and liability of the
Indemnifying Party, to exercise full control of the defense, compromise or settlement of any
such Action unless the Indemnifying Party, within a reasonable time after the giving of such
notice by the Indemnified Party, shall:
1. Admit in writing to the Indemnified Party, the Indemnifying Party's liability to the Indemnified
Party for such Action under the terms of this Agreement;
2. Notify the Indemnified Party in writing of the Indemnifying Party's intention to assume the
defense, and;
Retain legal counsel reasonably satisfactory to the Indemnified Party to conduct the
defense of such Action.
The Indemnified Party and the Indemnifying Party shall cooperate with the party assuming
the defense, compromise or settlement of any such Action in any manner that such party
reasonably may request. If the Indemnifying Party so assumes the defense of any such
Action, the Indemnified Party shall have the right to employ separate counsel and to
participate in (but not control) the defense, compromise, or settlement, but the fees and
expenses of such counsel shall be the expense of the Indemnified Party unless:
a. The Indemnifying Party has agreed to pay such fees and expenses,
b. Any relief other than the payment of money damages is sought against the Indemnified
parry or
c. The Indemnified Party shall have been advised by its counsel that there may be one or
more legal defenses available to it, which are different from or additional to those
available to the Indemnifying Party, and in any such case the fees and expenses of such
separate counsel shall be borne by the Indemnifying Party.
Page 5
No Indemnified Party shall settle or compromise or consent to entry of any judgment with
respect to any such Action for which it is entitled to indemnification hereunder without the
prior written consent of the Indemnifying Party, unless the Indemnifying Party shall have
failed, after reasonable notice, to undertake control of such Action in the manner provided
above in this Section. No Indemnifying Party shall, without the written consent of the
Indemnified Party, settle or compromise or consent to entry of any judgment with respect to
and such Action in which any relief other than the payment of money damages is sought
against any Indemnified Party unless such settlement, compromise or consent includes as
an unconditional term thereof the giving by the claimant, petitioner or plaintiff, as applicable,
to such Indemnified Party of a release from all liability with respect to such Action.
Section 5.3 — Liability for Damaged Facility
In the event of any damage to Customer's underground facility, which in the opinion of
Customer may be related to the Services performed hereunder, Customer shall immediately
(after making the site safe) but no later than 12 hours notify Contractor to investigate such
damage, and Contractor shall submit a written investigation report to Customer within 10
business days. If Contractor is notified of damage later than 12 hours, Contractor will still
investigate but will not be held liable to Customer's underground facility. Should the
investigation reveal that the damage resulted directly from an error or omission of
Contractor, or because Contractor failed to properly mark the location of such facility within
reasonable accuracy as defined herein, Contractor shall reimburse Customer for repair and
restoration costs of said facility not to exceed $1,000 per incident. Contractor shall not be
responsible for down time/ delays due to any facility damages.
ARTICLE VI: Miscellaneous Provisions
Section 6.1 — Amendments
Any amendments, modifications and supplements to this Agreement must be in writing and
signed by an authorized representative of both parties. The term "this Agreement" shall be
deemed to include any future amendments, modifications and supplements. All such
amendments, modifications and supplements shall not, unless specifically referred to, be
construed to adversely affect vested rights or causes of action, which have accrued prior to
the effective date of such amendment, modification or supplement.
Section 6.2 — Entire Agreement
This Agreement and any and all amendments, modifications or supplements hereto, shall
constitute the entire agreement between the parties with respect to the subject matter of
this Agreement and shall supersede any and all agreements, bids, or other understandings
between the parties concerning such subject matter.
Section 6.3 — Severability
In the event that one or more clauses, covenants, or provisions contained in this Agreement
are found by a court of competent jurisdiction to be invalid and unenforceable, such finding
shall not affect the validity or enforceability of the remainder of this Agreement, which shall
remain in full force and effect, in accordance with its terms, and such invalid or
unenforceable provision shall be deemed limited or modified as necessary to make the
same valid or enforceable so as to give effect to the intent of the parties as expressed
herein to the maximum extent possible.
Section 6.4 — Waiver
The waiver by either party of the breach of any provision of this Agreement shall not operate
or be construed as a waiver of any other or subsequent breach hereof. The waiver of any
provision of this Agreement shall not operate or be construed as a waiver of any other
provision of this Agreement.
Page 6
Any waiver of a provision of this Agreement or a breach hereof shall not be effective unless
the waiver is in writing and is signed by an authorized representative of the waiving party,
and the waiver shall be effective only for the specific purpose for which it was given.
Section 6.5 — Notices
All notices and other communications to be given in accordance with this Agreement shall
be deemed to have been duly given.
On the day of delivery if personally delivered to the person being served or to an
appropriate officer of any corporate party being served, or if sent by facsimile or e -mail with
confirmation of receipt, or
2. On the day of signature or refusal of the receipt if mailed by United States certified mail,
return receipt requested, postage prepaid, to the parties at the following addresses:
To Customer:
Town of Los Gatos
P.O. Box 949
Los Gatos, CA 95031
Phone: 408.399.5770
Fax: 408.354.8529
To Contractor:
Republic Electric
371 Bel Marin Keys Blvd. Suite 200
Novato, CA 94949 -5699
Phone: 415.884.3000
Fax: 415.884.4800
Section 6.6 — Assignment
Neither this Agreement, nor the rights and obligations hereunder, may be assigned by the
parties hereto without the prior written consent of the other party. In the event of a permitted
assignment hereunder, the rights and obligations of this Agreement shall inure to the benefit
of, and be binding upon, the party's successors and assigns.
Section 6.7 — Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which shall constitute the same agreement.
Section 6.8 — Governing Law
This Agreement shall be governed by, and construed in accordance with, the laws of the
State of California. Venue for any action concerning this Agreement shall be in Superior
Court of Santa Clara County, California.
Section 6.9 — Additional Terms
The additional terms if any, included on Schedule 6.9 hereto, if any, are hereby incorporated
into this Agreement and shall be deemed to be a part hereof.
Section 6.10 — Headings
The Article and Section headings used in this Agreement are inserted for convenience of
reference only, and shall not be construed as confining or limiting in any way the scope or
intent of the provisions of this Agreement.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized representatives effective as of the date and year first written above.
TOWN OF LOS GATOS
Debra J. Figone, Town Manager
REPUBLIC ELECTRIC
James A. Wagner, P.E.,
Vice President, Engineering
RECOMMENDED BY:
John E. Curtis
Director of Parks and Public Works
APPROVED AS TO FORM:
Orry Korb, Town Attorney
ATTEST:
Marlyn Rasmussen
Clerk Administrator
Page 8
Republic
Electric
CA Lic: 647754
September 12, 2005
Kevin Rohani
Town of Los Gatos
41 Miles Ave.
Los Gatos, CA 95031
Job Name: Underground Mark and Locate Services
Job Location: Citywide
Dear Mr. Rohani:
We offer to perform the following work, on the terms and conditions stated below and on the
reverse side hereof, and at the prices shown, as follows:
Perform underground mark and locate services for traffic signal and streetlight facilities on an as
needed basis. Our response to the each request will be within 48 hours. Republic Electric's
responsibility will be to respond with a qualified electrician and the proper equipment, and our
liability for damage to underground facilities due to inaccurate markings will be limited to
$1,000.00 per occurrence. This price assumes that each call will be for a maximum of 30OFT along
a roadway.
Labor, Materials and Equipment ....... $50.00
REPUBLIC ELECTRIC
J es A. Wagner, P.E.
VP Engineering
Exhibit B
(415) 884 -3000 Fax (415) 884 -4800 • 371 Bel Marin Keys Blvd., Suite 200 • Novato, CA 94949 -5699
BOSTON • DALLAS • LOS ANGELES • SACRAMENTO • SAN DIEGO • SAN FRANCISCO