REQUEST FOR ACTION RFA-18-0484

Meeting Date: May 17, 2018

Prepared By: Niel Brooks

MEETING TYPE: Council Regular Meeting

TITLE: Resolution R18-377 Authorizing the Town Manager to Execute a Contract with
Highland Paving in the Amount of $478,296.00 for the Waterford Street
Rehabilitation Project

PURPOSE: To authorize the Town Manager to execute a contract with Highland Paving in the
amount of $478,296.00 for the Waterford Street Rehabilitation Project.

BACKGROUND: In 2017 the Town developed a plan to resurface portions of six (6) roads within the
Waterford and Magnolia Greens neighborhoods. The total length of road
rehabilitation is 3,600 linear feet and goes from the intersection of Olde Waterford
Way and Highway 17 to the intersection of Pine Harvest Drive and Grandiflora Drive.
This project is not a complete resurfacing of the roads, but rather a combination of
approaches to address the specific needs of problem areas. Work shall consist of
asphalt removal, subbase removal, base replacement, asphalt replacement, striping,
curb and gutter replacement, manhole adjustment, and water meter adjustment
depending on the needs of specific areas as identified by SEPI engineering in their
engineering report.

In early 2018 the project was put out for bid, but only one bid was received
from Highland Paving. Two other contractors declined to bid. The Town's
contract engineer on this project, SEPI, attributes this to the large amount of
work available to paving contractors, which is making it difficult to receive
multiple bids.

SUMMARY: This resolution would authorize the Town Manager to execute the contract with
Highland Paving for the resurfacing project so the work can move forward in this fiscal
year.

SUPPORT OF STUDIES NA
OR PLANS:

FINANCIAL: The contract is in the amount of $478,296.00. This amount is significantly higher than
the $197,443.00 currently available in the Waterford Resurfacing Capital Project
Fund. As such, $280,853.00 will need to be transferred from the Brunswick Forest &
Low Country Boulevard Intersection Capital Project Fund to allow the project to
continue in the current fiscal year. Remaining Powell Bill funds will then be allocated
in FY 2018/19 for the Brunswick Forest Project.

ALTERNATIVES: Town Council could choose to approve the resolution or choose to rebid the project.

Request for Action Page 1 of 12

RECOMMENDATION: Staff recommends approval of the resolution. If any additional issues relating to the
condition of the roads are identified, they will need to be addressed as part of this
project.

Request for Action Page 2 of 12

 Resolution R18-377
Introduced By: Niel Brooks
Date: May 17, 2018

Resolution Authorizing the Town Manager to Execute a Contract with Highland Paving
in the Amount of $478,296.00 for the Waterford Street Rehabilitation Project

WHEREAS, the Waterford Street Rehabilitation Project involves surface and subsurface removal
and replacement along six (6) roads within the Waterford and Magnolia Greens neighborhoods
totaling 3,600 linear feet; and

Whereas, the work shall consist of asphalt removal, sub-base removal, base replacement,
asphalt replacement, striping, curb and gutter replacement, manhole adjustment and water
meter adjustment; and

Whereas, the Town's engineer, SEPI, advertised for informal bids from qualified firm(s); and

Whereas, Highland Paving Co. was the low bid for the project and is capable of doing the work
in a manner consistent with the Town's expectations;

Therefore, Be It Resolved:
The Town Manager is hereby authorized to execute a contract with Highland Paving Co. in the
amount of $478,296.00 for the Waterford Street Rehabilitation Project.

Adopted by Town Council on this 17th day of May, 2018.

Brenda Bozeman, Mayor Sabrena Reinhardt, Town Clerk

Resolutions Page 3 of 12 Page 1 of 10

 B> @> @=
9
B? @F @D @A @@ @? >F
@B < ;
B@ B= @
E @C >D
8!$ >E >A >@ :
>C >B >>
>= 8)*$
*$ >? =F
=D
Page 4 of 12

=E =A
=C =B
=> =@
E F ==
'7' =? A
C B
D >
@ =
01234567 89446
6647  
'!  ! !
* ! ! "#$" #$#%%
Page 2 of 10

+ +$"%+$++"" &!'!$(
,,,$-./0.1201..3012$456 ')!*!! !
+ $&$" 
NORTH CAROLINA
BRUNSWICK COUNTY

CONTRACT FOR CONSTRUCTION SERVICES

(Resurface Roads)

THIS CONTRACT, made this the day of , 2018 by and between the
Town of Leland, North Carolina, a Municipal Corporation located in Brunswick County (hereinafter called
"Town"); and Highland Paving C0,, a corporation organized under the laws of the State of North Carolina,
with its principal of?ces in Leland, North Carolina (hereinafter called "Contractor").

EIIEESSEIH:
1. Pyose

The Town hereby employs the Contractor to furnish all labor, materials and equipment to perform
all work in manner and form as speci?ed by the plans, speci?cations and documents consisting of, but not
limited to: Advertisement, Instructions to Bidders, General Conditions, Supplementary Conditions,
Technical Specifications, Proposal and Af?davit, Contract and Performance and Payment Bonds, which
are incorporated as if fully set out, together with all other documents identi?ed in the General Conditions
and any other documents essential to completion of the work, for the following:

Town of Leland Waterford Rehabilitation Project

2. Term of Contract/Liquidated Damages

The Contractor shall commence the work to be performed under this contract within ten (10) days
of receipt of a written order from the Town Manager or his designee,and shall complete all work hereunder
within 45 calendar days of the date of beginning. The Contractor further agrees to pay, as liquidated
damages, the sum of $500.00 for each consecutive calendar day thereafter as hereinafter provided in the
Supplementary General Conditions.

3. Extra Work

In the event extra work is necessary, not set forth or contemplated in this contract, the Contractor
agrees to faithfully perform all such work under a written change order from the Town, setting forth and
describing fully the work to be done and in compliance with all provisions of the General Conditions. The
Town hereby agrees to pay to the Contractor, for any such extra work, upon presentation of properly
prepared, itemized statements of cost computed in accordance with the written change order and in
accordance with the General Conditions.

Page 5 of 12 Page 3 of 10
4. Pa ent

A. Payment to the Contractor will be in accordance with Article 9 of the General Conditions.

B. The Town agrees to pay the Contractor for the faithful performance of this contract, subject
to any additions or deductions as provided for the Speci?cations or Proposal, and in
accordance with the prices as set forth, subject to any additions which may be due under
Paragraph 3 of this Agreement, Unit Prices and/or lumpsum price, as set forth in the
Proposal, the total cost is $478,296.00.

C. Retainage.

C.1. The Town shall retain ?ve percent (5%) of any periodic payment due the Contractor.

C.2. When the project is ?fty percent (50%) complete, the Town, with the prior written
consent of the surety, shall not retain any further retainage from periodic payments
due the Contractor if the Contractor continues to perform satisfactorily and any
nonconforming work identi?ed in writing prior to that time by the Town has been
corrected by the Contractor and accepted by the Town.

C.3. If the Town determines the Contractor's perfonnance is unsatisfactory, the Town may
reinstate retainage for each subsequent periodic payment application up to the
maximum amount of ?ve percent (5%).

C.4. The project shall be deemed ?fty percent (50%) complete when the Contractor‘s
gross project invoices, excluding the value of materials stored off—site,equal or
exceed ?fty percent (50%) of the value of the contract, except the value of materials
stored on-site shall not exceed twenty percent (20%) of the Contractor's gross project
invoices for the purpose of detennining whether the project is ?fty percent (50%)
complete.

C.5. Within 60 days of submission of a pay request and upon (i) receipt of a certificate of
substantial completion from the architect or engineer or (ii) the Town receives
bene?cial occupancy or use of the project, and with the prior written consent of the
surety, all remaining retainage shall be released to the Contractor. Provided that the
Town in its sole discretion may retain up to two-and-one-halftimes the value of any
remaining work to secure completion or correction of that work.

5. Perfonnance and Pament Bonds

Performance and payment bonds shall be provided as set forth in the General Conditions. It is agreed
that if at any time after the execution of this contract and the surety bonds attached, the Town shall deem
the surety or sureties upon such bonds to be unsatisfactory, or if for any reason such bonds cease to be
adequate for the purposes intended, the Contractor shall, at his expense, within ?ve days after receipt of
notice from the Town to do so, furnish an additional bond or bonds in such form and amount, and with such
surety, or sureties, as shall be satisfactory to the Town.

Page 6 of 12 Page 4 of 10
6. Insurance; Proof of Coverage

The Contractor shall take out and maintain, during the life of this contract, all insurance required
under Article 11 of the General Conditions and Supplementary General Conditions, and shall, at execution
of this contract, attach to each of the counterparts thereof documentary proof of compliance in the form of
a Certi?cate from his insurer, stating the amount, policy numbers, and kinds of insurance carried.

7. Release and Indemnity

To the fullest extent permitted by law, the Contractor shall release, indemnify, keep and save
harmless the Town, its agents, officials and employees, from any and all responsibilityor liability for any
and all damage or injury of any kind or nature whatever (including deathresulting therefrom) to all persons,
whether agents, of?cials or employees of the Town or third persons, and to all property proximately caused
by, incident to, resulting from, arising out of, or occurring in connection with, directly or indirectly, the
performance or nonperforrnance by Contractor (or by any person acting for the Contractor or for whom the
Contractor is or is alleged to be in any way responsible), whether such claim may be based in whole or in
part upon contract, tort (including alleged active or passive negligence or participation in the wrong), or
upon any alleged breach of any duty or obligation on the part of the Contractor, its agents, of?cials and
employees or otherwise. The provisions of this Section shall include any claims for equitable relief or for
damages (compensatory or punitive) against the Town, its agents, of?cials, and employees including
alleged injuly to the business of any claimant and shall include any and all losses, damages, injuries,
settlements, judgments, decrees, awards, fines, penalties, claims, costs and expenses. Expenses as used
herein shall include without limitation the costs incurred by the Town, its agents, of?cials and employees,
in connection with investigating any claim or defending any action, and shall also include reasonable
attorneys’ fees by reason of the assertion of any such claim against the Town, its agents, officials or
employees. The Contractor expressly understands and agrees that any performance bond or insurance
protection required by this contract, or otherwise provided by the Contractor, shall in no way limit the
Contractor‘s responsibility to release, indemnify, keep and save harmless and defend the Town as herein
provided. The intention of the parties is to apply and construe broadly in favor of the Town the foregoing
provisions subject to the limitations, if any, set forth in N.C.G.S. 22B-l.

8. Personnel

It is mutually agreed that Contractor is an independent Contractor and not an agent of the Town,
and as such the Contractor shall not be entitled to any Town employment bene?ts, such as, but not limited
to, vacation, sick leave, insurance, workmen‘s compensation, or pension and retirement bene?ts.

9. Con?ict of Interest

No paid employee of the Town shall have a personal or ?nancial interest, direct or indirect, as a
contracting party or otherwise, in the performance of this contract.

Page 7 of 12 Page 5 of 10
10. Non-Waiver of Rights

It is agreed that the Town's failure to insist upon the strict performance of any provision of this
contract, or to exercise any right based upon a breach thereof, or the acceptance of any performanceduring
such breach, shall not constitute a waiver of any rights under this contract.

1 1. Contract Disputes

Disputes shall be addressed in the manner set forth in the General Conditions. Provided, that any
required mediation shall be in accordancewith the Rules for Mediation as establishedfor the General Courts
of Justice in the State of North Carolina and the General Conditions are deemed amended to so provide.

12. Assignment of Contract

It is mutually agreed by the parties hereto that this contract is not transferable by either party to this
contract without the written consent of the other party to this contract.

13. Subcontracts

The Contractor shall utilize no subcontracts for carrying out the services to be performed under this
contract without the written approval of the Town.

14. Entire Agreement

The contract constitutes the entire understanding of the parties.

15. Binding Effect

The contract shall be binding upon the heirs, successors, assigns, agents, officials, employees,
independent contractors, and subcontractors of the parties.

16. Continuing Obligation

The parties will make and execute all further instruments and documents required to carry out the
purposes and intent of the contract.

17. Reference

Use of the masculine includes feminine and neuter, singular includes plural; and captions and
headings are inserted for convenience of reference and do not de?ne, describe, extend or limit the scope of
intent of the contract.

Page 8 of 12 Page 6 of 10
l 8. lntemretation
All of the terms and conditions contained herein shall be interpreted in accordance with the laws of
the State of North Carolina. In the event of a con?ict between the various terms and conditions contained
herein or between these terms and other applicable provisions, then the more particular shall prevail over
the general and the more stringent or higher standard shall prevail over the less stringent or lower standard.

19. Saving Clause

If any section, subsection, paragraph, sentence, clause, phrase or portion of this contract is for any
reason held invalid, unlawful, or unconstitutional by any court of competent jurisdiction, such portion shall
be deemed severable and such holding shall not affect the validity of the remaining portions hereof.

20. Other Laws and Regulations

Contractor will comply with any and all applicable federal, state and local standards, regulations,
laws, statutes and ordinances including those regarding toxic, hazardous and solid wastes and any
pollutants; public and private nuisances; health or safety; and zoning, subdivision or other land use controls.
Contractor will take all reasonably necessary, proper or required safety, preventative and remedial measures
in accordance with any and all directives from the North Carolina Department of Human Resources, the
United States Environmental Protection Agency, the North Carolina Department of Environmental
Management, Health Departments, and any other federal, state or local agency having jurisdiction, to insure
the prompt prevention or cessation (now or in the future) of violations of either the applicable provisions of
such standards, regulations, laws, statutes, and ordinances or any permits or conditions issued thereunder.

21. Amendments

This contract shall not be modi?ed or otherwise amended except in writing signed by the parties.

22. Non-Discrimination

Contractor will take affirmative action not to discriminate against any employee or applicant for
employment or otherwise illegally deny any person participation in or the bene?ts of the program which is
the subject of this contract because of race, creed, color, sex, age, disability or national origin. To the extent
applicable, Contractor will comply with all provisions of Executive Order No. 11246, the Civil Rights Act
of 1964, (P.L. 88-352) and 1968 (P.L. 90-284), and all applicable federal, state and local laws, ordinances,
rules, regulations, orders, instructions, designations and other directives promulgated to prohibit
discrimination. Violation of this provision, after notice, shall be a material breach of this contract and may
result, at Town‘s option, in a termination or suspension of this contract in whole or in part.

23. E-Veri? Reguirements

As a condition of payment for services rendered under this contract, Contractor shall comply with
the requirements of Article 2 of Chapter 64 of the North Carolina General Statutes (requirement that
employers use E-Verify). Further, if Contractor provides the services to the Town utilizing a subcontractor,

Page 9 of 12 Page 7 of 10
Contractor shall require the subcontractor to comply with the requirements of Article 2 of Chapter 64 of the
North Carolina General Statutes as well. Contractor shall verify by affidavit compliance with the terms of
this section upon request of Town.

IN WITNESS WHEREOF, the Town has caused this contract to be duly executed in its name and
behalf and the Contractor has caused this contract to be duly executed in its name and behalf and its
corporate seal to be hereunto affixed, and attested to.

TOWN OF LELAND, NORTH CAROLINA

BY:
David Hollis, Town Manager
ATTEST:

Sabrena Reinhardt, Town Clerk

(SEAL)

Approved as to Form:

John C. Wessell III, Town Attorney

This instrument has been pre~auditedin the manner required by the Local Government Budget and Fiscal
Control Act.

HIGHLAND PAVING

BY:
(President, Highland Paving)

Page 10 of 12 Page 8 of 10
NORTH CAROLINA
BRUNSWICK COUNTY

I, the undersigned Notary Public of the County of and State aforesaid,certify

that SABRENA REINHARDT personally came before me this day and acknowledgedthat she is Town Clerk
of the Town of Leland, North Carolina, and that by authority duly given and as an act of the municipal
corporationthe foregoing instrument was signed in its name by David Hollis, Town Manager, sealed with its
corporate seal, and attested by herself as its Town Clerk.

WITNESS my hand andNotaiial stamp or seal this day of 2018.

Notary Public
My commission expires:

Notary's Printed or Typed Name

(AFFIX STAl\/[P OR SEAL)

Page 11 of 12 Page 9 of 10
NORTH CAROLINA
COUNTY

I, the undersigned Notary Public of the County of and State aforesaid,

certify that personally came before me this day and
acknowledged that (s)he is the Presidentof Highland Paving, a corporation,and that by authority
duly given and as the act of such entity, (s)he signed the foregoing instrumentin its name on its behalf as its
act and deed.

WITNESS my hand and Notarial stamp or seal this day of , 2018.

Notary Public
My commissionexpires:

Nota1y's Printed or Typed Name

(AF FIX STAMP OR SEAL)

Page 12 of 12 Page 10 of 10