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Attachment 1 Page 1 of 9 AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND THE CITY OF SAN JOSE FOR THE PAVEMENT REHABILITATION OF NATIONAL AVENUE FROM SAMARITAN DRIVE TO 350 FEET SOUTH OF CARLTON AVENUE This Agreement (herein “Agreement”) is made and entered into this ___ day of ____________, 2019, (herein the “Effective Date”) by and between the Town of Los Gatos, a California, municipal corporation (herein “TOWN”), and City of San Jose, a California, municipal corporation (herein “CITY”). The TOWN and CITY may be referred to herein individually or collectively as the “Parties”. RECITALS WHEREAS: A. TOWN and CITY find that it is in the public interest to resurface the roadways at National Avenue (between Samaritan Drive and 350 feet south of Carlton Avenue) over which the TOWN and CITY have dual jurisdiction; B. It is in the public interest for TOWN and CITY to complete the PROJECT in a cooperative and economical manner by constructing both TOWN and CITY portions of the PROJECT together; and C. Each Party has agreed to perform its portion of the work as described herein, under its direction. In consideration of the above referenced recitals and the following mutual covenants, agreements and obligations of the parties, TOWN and CITY agree as follows: AGREEMENT PROVISIONS 1. PROJECT DESCRIPTION: The Town of Los Gatos is planning to have its contractor resurface the roadway at National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue over which the TOWN and CITY have dual jurisdiction. The plan calls for resurfacing a total of 0.66 miles of National Avenue between Samaritan Drive and Los Gatos-Almaden Road, which is owned and maintained by the Town of Los Gatos. The TOWN has included the section of National Avenue that is maintained by the CITY in their project with the understanding that the CITY would pay for the work via this cost sharing agreement. This section of roadway is in need of rehabilitation given its current condition. Based on StreetSaver, the pavement management system database used by the TOWN, the average pavement condition index on National Avenue is 38. ATTACHMENT 1 Page 2 of 9 The work to be performed under this Agreement within the CITY will consist of wedge grinding the asphalt concrete, cold-in-place recycling the top 4 inches of the asphalt concrete, and then overlaying it with 1.75 inches of rubberized hot mix asphalt along with, and adjustment of existing utilities box and manholes. The work to be performed is more fully described in the document entitled “Scope of Work and Schedule of Performance” set forth in Exhibit A and Exhibit B, attached and incorporated by reference. Approximately 50% of National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue is within the TOWN jurisdiction and 50% is within the CITY’s jurisdiction. 2. TOWN’S OBLIGATIONS: TOWN agrees as follows: A. To act as the lead agency to administer the design and construction of the PROJECT. Administration shall include preparation of specifications, contract documents and cost estimate; notification of local business; coordination with various agencies; preparation of all necessary environmental documents; obtaining permits; obtaining bids; awarding the construction agreement; administering the construction agreement; providing materials control and inspection services; and making progress payments to the contractor. B. To provide CITY with final specifications and contract documents for the PROJECT. C. To pay TOWN’s share of the PROJECT cost. The Project cost is defined as the actual amount paid to the contractor plus ten percent (10%) for TOWN’s engineering, construction and other administrative services. D. To cause the contractor to provide a warranty period of at least two (2) years from the acceptance date, consistent with Town of Los Gatos Construction Agreement. E. To cooperate with CITY should CITY raise any issues concerning contractor’s work in CITY’s jurisdiction that requires correction prior to acceptance or within the warranty period. F. The designated project manager for TOWN for the duration of the PROJECT is Kevin Selfridge (phone number: 408-827-3549). TOWN’s project manager shall have all the necessary authority to review and approve and accept technical and professional work within the scope of the Agreement and shall serve as the principal point of contact with CITY. CITY may request documentation of such costs, and may review the original invoices and weight certificates or request copies of same, which shall be provided within a reasonable time. Page 3 of 9 3. CITY’S OBLIGATION: CITY agrees as follows: A. To pay CITY’s share of the PROJECT cost to TOWN. CITY’s share of the Cost is 100%, of the PROJECT Cost, up to a maximum amount of $275,000, for the CITY-owned portion of the road, which is located in the TOWN on National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue. Any changes to the scope of work as identified by TOWN or CITY that is beyond the PROJECT description identified in this Agreement that may increase design or construction costs shall receive prior written approval and agreement on a funding plan from both TOWN and CITY. TOWN will not authorize its contractors to perform work which would result in any additional cost above and beyond the agreed amount as set forth in this Agreement without prior agreement and written approval from CITY. B. To pay its share of the PROJECT cost within forty-five (45) business days of receiving and approving the detailed invoice from TOWN, provided that the following conditions are met: 1. The PROJECT has been completed and CITY has approved the portion of the work in its jurisdiction. Acceptance by CITY shall be made in writing to TOWN; and 2. The detailed invoice sets forth the cost of construction of all PROJECT work based on the actual contract unit prices paid and negotiated change order(s), if any. C. The designated project manager for CITY for the duration of the PROJECT is Binh Tran (phone number: 408-794-6457). CITY’s project manager shall have all the necessary authority to direct technical and professional work within the scope of the Agreement and shall serve as the principal point of contact with TOWN. 4. TERM OF AGREEMENT: Unless otherwise modified by a written amendment to this Agreement, the term of this Agreement shall be one (1) year from the Effective Date or until the PROJECT acceptance by both parties and final payments of all outstanding balances. 5. OWNERSHIP AND MAINTENANCE: A. Upon completion of all work under this Agreement, ownership and title to all materials, equipment and appurtenances installed as a part of the PROJECT within the Town limits of Los Gatos will automatically be vested in TOWN, and all materials, equipment and appurtenances installed as a part of the PROJECT within the CITY limits will be vested in CITY, and no further agreement will be necessary to transfer ownership. B. This Agreement does not change any authority or responsibility between TOWN and CITY with regard to maintenance, operation or further repair responsibility. Page 4 of 9 6. CONTRACTOR SHALL BE AN INDEPENDENT CONTRACTOR: Any contractor(s) hired by either Party to perform the work included in the PROJECT shall not be an agent or employee of either Party and will perform such work as independent contractor. All persons employed by or contracted with such contractor(s) to furnish labor and/or materials in connection with the work in the PROJECT shall not be employees of either Party in any respect. 7. TERMINATION: Once TOWN has awarded the construction contract for the PROJECT, the Agreement can be terminated only upon the mutual written consent and terms acceptable to both parties. 8. NO PLEDGING OF EITHER TOWN’S CREDIT: Under no circumstances shall either TOWN or CITY have authority or power to pledge the credit of the other public entity or incur obligation in the name of the other public entity. 9. NO THIRD PARTY BENEFICIARY: This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever. 10. AMENDMENTS: No alternation or violation of the terms of this Agreement shall be valid unless made in writing and signed by the parties and incorporated into this Agreement 11. NOTICES: Notices are to be sent as follows: To TOWN: Kevin Selfridge Town of Los Gatos 41 Miles Avenue Los Gatos, CA 95030 To CITY: Binh Tran City of San Jose Department of Transportation Infrastructure Maintenance Division 1404 Mabury Road San José, CA 95133 Page 5 of 9 12. SEVERABILITY CLAUSE: In case any one or more of the provisions contained herein shall, for any reason, be held invalid, illegal, or unenforceable in any respect, it shall not affect the validity of the other provisions which shall remain in full force and effect. 13. ENCROACHMENT PERMITS: Both Parties to this Agreement will cooperate and /or provide access to its consultants, engineers and contractors for the PROJECT in the jurisdictional boundaries of each Party. Contractor shall obtain street opening permit from CITY and CITY shall provide such a permit at no cost. 14. HOLD HARMLESS/INDEMNIFICATION: Neither of the respective Parties, employees, officers, agents and assigns shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by the other party in connection with the PROJECT. It is understood and agreed that pursuant to California Government Code Section 895.4, the respective Parties shall fully indemnify and hold the other harmless from any liability imposed for injury (as defined in Government Code Section 810.8) by reason of anything done or omitted to be done by TOWN or CITY in connection with any work, authority or jurisdiction delegated to the respective Party under this Agreement. This hold harmless and indemnification provision shall apply to any activities, error or omission of the respective Party and/or the Party’s officers, employees, agents, consultants or contractor or any person or entity acting or omitting to act for or on behalf of said TOWN or such person or entities as are specifically authorized and empowered by the respective Party to act for the Party. 15. CAPTIONS: The captions of the various sections, paragraphs and subparagraphs of this Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation of this Agreement. 16. INSURANCE REQUIREMENTS: It is mutually understood that during the term of the construction activities on the PROJECT, TOWN will require the successful contractor to carry commercial general liability in amounts of not less than Ten Million Dollars ($10,000,000); automobile liability in an amount not less than One Million Dollars ($1,000,000); and, a Workers’ Compensation Insurance policy with policy limits in an amount not less than One Million Dollars ($1,000,000). 17. STATUTES AND LAW GOVERNING CONTRACT: This Agreement shall be governed and construed in accordance with the statues and laws of the State of California. Page 6 of 9 18. WAIVER: The Parties’ waiver of any term, condition or covenant, or breach of any term, condition or covenant shall not be construed as a waiver of any other term, condition or covenant or breach of any other term, condition, or covenant. 19. ENTIRE AGREEMENT: This Agreement contains the entire Agreement between TOWN OF LOS GATOS and CITY OF SAN JOSE to the PROJECT. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. 20. OTHER AGREEMENTS: This Agreement shall not prevent either Party from entering into similar agreements with others. The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives. It is intent of the Parties that this Agreement shall become operative on the effective date. Page 7 of 9 The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this Agreement shall become operative on the Effective Date. TOWN OF LOS GATOS, CALIFORNIA, a California municipal corporation APPROVED AS TO FORM: _____________________________________ By: _____________________________________ ROBERT SCHULTZ LAUREL PREVETTI Town Attorney Town Manager CITY OF SAN JOSE, CALIFORNIA, a California municipal corporation APPROVED AS TO FORM: _____________________________________ By: _____________________________________ JON CALEGARI Deputy City Attorney Deputy City Manager ATTEST: ______________________________________ NAME Title Page 8 of 9 EXHIBIT “A” SCOPE OF WORK AND SCHEDULE OF PERFORMANCE The work to be performed under this Agreement within CITY will consist of wedge grinding the asphalt concrete, cold-in-place recycling the top 4 inches of the asphalt concrete, and then overlaying it with 1.75 inches of rubberized hot mix asphalt along with, and adjustment of existing utilities box and manholes of the CITY portion of National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue (herein the “PROJECT”). Approximately 50% of National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue is within the TOWN jurisdiction and 50% is within the CITY’s jurisdiction. The Town-owned portion is the southbound lane on National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue. The City-owned portion is the northbound lane on National Avenue between Samaritan Drive and 350 feet south of Carlton Avenue. Town to provide striping/marking plan for the City’s portion of National Avenue. The service agreement documents are herein incorporated to this Agreement by reference. Page 9 of 9 EXHIBIT “B” PROJECT LOCATION MAP