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Home My WebLink About109445 CONNELL RESOURCES 497786 MARTIN MARIETTA - CONTRACT - BID - 7377 ASPHALT SUPPLY (2)SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and Connell Resources, Inc., hereinafter referred to as "Service Provider". WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Service Provider agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of nine (9) pages and incorporated herein by this reference. 2. Contract Period. This Agreement shall commence upon signing, and shall continue in full force and effect until May 31, 2013, unless sooner terminated as herein provided. In addition, at the option of the City, the Agreement may be extended for additional one year periods not to exceed four (4) additional one year periods. Renewals and pricing changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 3. Delay. If either party is prevented in whole or in part from performing its obligations by unforeseeable causes beyond its reasonable control and without its fault or negligence, then the party so prevented shall be excused from whatever performance is prevented by such cause. To the extent that the performance is actually prevented, the Service Provider must provide written notice to the City of such condition within fifteen (15) days from the onset of such condition. 4. Early Termination by City/Notice. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Service Provider. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All Services Agreement Page 1 of 18 Original Bid price per ton in Column 1 for GR S (PG 64-22) with 20% RAP = $35.00/ton New May price per ton for GR S (PG 64-22) with 20% RAP = $ 36.56 /ton END OF SECTION Section 401 of the Standard Specifications is hereby revised as follows: • The following paragraph shall be deleted from Subsection 401.02 of the Standard Specifications: (a)(3) "A sufficient quantity of each aggregate for the Department to perform the tests specified in Section 3.2.1 of CP 52." • Subsection 401.02 is hereby revised to include the following: Requests made in writing by the Contractor for changes in the job mix formula shall be considered by the Engineer. A job mix formula shall be determined by the Contractor and submitted to the Engineer for approval a minimum of one week prior to the beginning of construction for each proposed change. The Contractor shall provide the Engineer with a report from an independent testing laboratory acceptable to the Engineer. The report shall state the Superpave properties, optimum oil content, job mix formula and recommended mixing and placing temperatures. The costs for all job mix formulas shall be the responsibility of the Contractor. If the Contractor uses more than three (3) job mix formulas for a type of plant mix pavement used, the City may charge the Contractor for testing and evaluation of the mix designs, including the costs for calibration. Mix design verification testing shall be the responsibility of the Contractor. A minimum of one verification per mix design or one per 10,000 ton of mix used shall be provided to confirm oil content, gradation, air voids, VMA, and stability. END OF SECTION Section 403 of the Standard Specifications is hereby revised as follows: Subsection 403.01 shall be amended to include the following: This work shall consist of supplying HMA to the City of Fort Collins. This material shall be picked up by The City of Fort Collins at the Contractor's asphalt plant. The material shall include Grading SX, Grading S, and Grading SG Hot Mix Asphalt, according to the current Colorado Department of Transportation Design Criteria and the Larimer County Urban Area Street Standards or as specified herein. Subsection 403.02 shall be amended to include the following: Services Agreement Page 10 of 18 Laboratory Mix Design - Superpave mix, Grading S, SX, SG - The mix design shall be prepared by an independent laboratory acceptable to the Engineer. The criterion for the mix design is as follows: o Designed according to most recent set of SUPERPAVE Specifications available at the time A request made in writing by the Contractor for changes in the job mix formula will be considered by the Engineer. The design mix for Grading S, SX, and SG shall conform to the current Larimer County Urban Area Street Standards and the following: Property Grading Grading - - Grading Test S' SG SXI',- :Method. ; CPL Minimum Dry Split Tensile 5109 205 (30) 205 (30) 205 (30) Strength, kPa (psi) Method B PG 58-28 PG 58-28 PG 58-28 Grade of Asphalt Cement PG 64-22 PG 64-22 PG 64-22 PG 64-28 Voids in the Mineral CP 48 (a) (a) (a) Aggregate (VMA) % minimum Voids Filled with Asphalt (a) (a) (a) (VFA) % Al MS-2 (a) Current CDOT Design Criteria Subsection 403.05 is revised to include the following: The accepted quantities will be paid for at the contract unit price for each of the pay items listed below: Pay Item Unit 403.10 HMA GR SX (PG 58-28) 20% RAP Ton 403.15 HMA GR SX (PG 64-22) 20% RAP Ton 403.20 HMA GR S (PG 58-28) 20% RAP Ton 403.25 HMA GR S (PG 64-22) 20% RAP Ton 403.30 HMA GR S (PG 64-28) 20% RAP Ton Services Agreement Page 11 of 18 403.35 HMA GR SG (PG 58-28) 20% RAP Ton 403.40 HMA GR SG (PG 64-22) 20% RAP Ton The above prices and payments shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in providing Hot Mix Asphalt materials, complete, as specified in these specifications, and as directed by the Engineer. END OF SECTION Section 109 of the Standard Specifications is hereby revised as follows DESCRIPTION The Colorado Department of Transportation "Standard Specifications for Road and Bridge Construction", latest revision, and the current Larimer County "Urban Area Street Standards" (hereafter referred to as the "Standard Specifications") are made a part of the Contract by this reference, except as revised herein, and are hereby adopted as the minimum Standard Specifications of Compliance for this project. Subsection 109.06 shall be amended to include the following: 2. Price adjustments shall be paid on a monthly basis for asphalt cement included in the work with the following conditions: H Payment shall be based on the pay item quantities under Section 403, Hot Mix Asphalt, and per the invoice for pay items when asphalt cement is included in the accepted quantities. I Price adjustments may be either positive or negative dollar amounts. The intention of the monthly price adjustment is to account for direct price increases or decreases due to asphalt cement costs only. Any asphalt cement price decreases will also be passed on to the City in the form of a price reduction. J Vendor will be required to submit HMA monthly pricing including the asphalt cement supplier quote for the upcoming month no later than the 2ntl to the last business day of each month. K In the event a Vendor does not submit new monthly pricing for the upcoming month, no material will be purchased from that Vendor for that month. L No payments will be made to the Vendor without receipt of the asphalt cement suppliers' invoice as verification of the asphalt cement price deviation from the original per ton bid price. The prices submitted for verification shall be for delivered asphalt cement for the respective month of invoicing. M Asphalt cement cost adjustments shall not be made for any invoices falling wholly after the expiration of contract time. Services Agreement Page 12 of 18 N No payment will be allowed for any HMA material that is deemed to not meet the specifications. The asphalt cement cost adjustment shall be the sum of the individual adjustments for each of the pay items. No adjustment shall be made for asphalt cement costs on items other than those shown above. EXAMPLE: The bid price per ton listed in Column 1 shall be valid and held firm for the entire month of April 2012. The price listed in Column 2 will be the "Price Adjustment Factor' and shall remain fixed throughout the term of the contract. • Bidders will be required to state the April 2012 asphalt cement price per ton. This will be the base price per ton. Price increases based on the cost of asphalt cement will be allowed per the following The Vendor must use the amount stated for Item A (April 2012 asphalt cement cost per ton) as a base. If the per ton cost of asphalt cement rises, the amount of increase (the new cost per ton less the base amount shown in Item A) will be calculated as "Increment Units" that will be factored into the formula below to establish the amount of allowable increase for a ton of finished product. Each "Increment Unit" will equal $10.00 (example; a per ton increase of $35.00 for asphalt cement will result in 3.5 Increment Units). Partial increment units of 0.50 and above will be rounded up; partial units of 0.49 and below will be rounded down. This formula shall be used to calculate the allowable price increases for each finished product: Allowable increase = number of Increment Units x Price Adjustment Factor Note: The above calculation will also be utilized for any price decreases. Item 'A': The following bid price is based on the April 2012 price for: Asphalt cement (PG 64-22) 300.00 /ton MIX DESIGN COLUMN 1 COLUMN 2 Mix Design Method Price Adjustment Factor SHRP N DESIGN 75 OR 100 GR S (PG 64-22) with 20% RAP $ 3500 /ton $ 0.39 /ton The following example illustrates a price adjustment using the above examples: Services Agreement Page 13 of 18 April per ton cost of asphalt cement = $300.00 May per ton cost of asphalt cement = $335.00 Note: the `Price Adjustment Factor' (PAF) in Item `A' will always be the figure that is subtracted from each respective increase per ton cost of asphalt cement. Increment Units = $335.00 - $300.00 divided by $10.00 = 3.5 (rounded up to 4.0) 4.0 Increment Units x $0.39 Price Adjustment Factor = $1.56 Original Bid price per ton in Column 1 for GR S (PG 64-22) with 20% RAP = $35.00/ton New May price per ton for GR S (PG 64-22) with 20% RAP = $ 36.56 /ton END OF SECTION Section 401 of the Standard Specifications is hereby revised as follows: • The following paragraph shall be deleted from Subsection 401.02 of the Standard Specifications: (a)(3) "A sufficient quantity of each aggregate for the Department to perform the tests specified in Section 3.2.1 of CP 52." • Subsection 401.02 is hereby revised to include the following: Requests made in writing by the Contractor for changes in the job mix formula shall be considered by the Engineer. A job mix formula shall be determined by the Contractor and submitted to the Engineer for approval a minimum of one week prior to the beginning of construction for each proposed change. The Contractor shall provide the Engineer with a report from an independent testing laboratory acceptable to the Engineer. The report shall state the Superpave properties, optimum oil content, job mix formula and recommended mixing and placing temperatures. The costs for all job mix formulas shall be the responsibility of the Contractor. If the Contractor uses more than three (3) job mix formulas for a type of plant mix pavement used, the City may charge the Contractor for testing and evaluation of the mix designs, including the costs for calibration. Mix design verification testing shall be the responsibility of the Contractor. A minimum of one verification per mix design or one per 10,000 ton of mix used shall be provided to confirm oil content, gradation, air voids, VMA, and stability. END OF SECTION Services Agreement Page 14 of 18 Section 403 of the Standard Specifications is hereby revised as follows: Subsection 403.01 shall be amended to include the following: This work shall consist of supplying HMA to the City of Fort Collins. This material shall be picked up by The City of Fort Collins at the Contractor's asphalt plant. The material shall include Grading SX, Grading S, and Grading SG Hot Mix Asphalt, according to the current Colorado Department of Transportation Design Criteria and the Larimer County Urban Area Street Standards or as specified herein. Subsection 403.02 shall be amended to include the following: Laboratory Mix Design — Superpave mix, Grading S, SX, SG - The mix design shall be prepared by an independent laboratory acceptable to the Engineer. The criterion for the mix design is as follows: Designed according to most recent set of SUPERPAVE Specifications available at the time A request made in writing by the Contractor for changes in the job mix formula will be considered by the Engineer. The design mix for Grading S, SX, and SG shall conform to the current Larimer County Urban Area Street Standards and the following: Property „ .,, "Test YGradvig. Grading Grading Method ' IS' : SG SX CPL Minimum Dry Split Tensile 5109 205 (30) 205 (30) 205 (30) Strength, kPa (psi) Method B PG 58-28 PG 64-22 PG 58-28 PG 58-28 Grade of Asphalt Cement PG 64-28 PG 64-22 PG 64-22 Voids in the Mineral CP 48 (a) (a) (a) Aggregate (VMA) % minimum Voids Filled with Asphalt (a) (a) (a) (VFA) % Al MS-2 Services Agreement Page 15 of 18 (a) Current CDOT Design Criteria Subsection 403.05 is revised to include the following: The accepted quantities will be paid for at the contract unit price for each of the pay items listed below: Pay Item Unit 403.10 HMA GR SX (PG 58-28) 20% RAP Ton 403.15 HMA GR SX (PG 64-22) 20% RAP Ton 403.20 HMA GR S (PG 58-28) 20% RAP Ton 403.25 HMA GR S (PG 64-22) 20% RAP Ton 403.30 HMA GR S (PG 64-28) 20% RAP Ton 403.35 HMA GR SG (PG 58-28) 20% RAP Ton 403.40 HMA GR SG (PG 64-22) 20% RAP Ton The above prices and payments shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in providing Hot Mix Asphalt materials, complete, as specified in these specifications, and as directed by the Engineer. END OF SECTION Services Agreement Page 16 of 18 EXHIBIT B CONTRACT SUM BID SCHEDULE 2012 CITY OF FORT COLLINS ASPHALT SUPPLY CONTRACT Hot Mix Asphalt Pricing (FOB Plant) ITEM ITEM ESTIMATED UNIT NO. DESCRIPTION QUANTITY PRICE 403.10 HMA GR SX (PG 58-28) 20% RAP 100 tons $ y9 • so /ton 403.15 HMA GR SX (PG 64-22) 20% RAP 100 tons $ 18. -sa /ton 403.20 HMA GR S (PG 58-28) 20% RAP 100 tons $ '49 - W /ton 403.25 HMA GR S (PG 64-22) 20% RAP 12,850 tons $ y-4 oo /ton 403.30 HMA GR S (PG 64-28) 20% RAP 100 tons $ 61 . o_ /ton 403.35 HMA GR SG (PG 58-28) 20% RAP 6,675 tons $ `l3 - oO /ton 403.40 HMA GR SG (PG 64-22) 20% RAP 36,645 tons $ `4 7 . re /ton Note: The quantities listed above are estimates only. The City of Fort Collins reserves the right to modify the quantities for any or all Items listed. IN ADDITION TO THE BID SCHEDULE PRICES FOR EACH MIX DESIGN LISTED ABOVE, VENDORS MUST SUBMIT THE FOLLOWING COSTS FOR APRIL 2012: Asphalt Cement (PG 58-28) $ SsU — /ton Asphalt Cement (PG 64-22) $ S`/U /ton Asphalt Cement (PG 64-28) $ /ton Price Adjustment Factor: GR SX (PG 58-28) 20% RAP $ . q6 /ton GR SX (PG 64-22) 20% RAP $ . ly /ton GR S (PG 58-28) 20% RAP $ . ` 57 /ton GR S (PG 64-22) 20% RAP $ . `15 /ton GR S (PG 64-28) 20% RAP $ • q7 /ton GR SG (PG 58-28) 20% RAP $ . 39 /ton GR SG (PG 64-22) 20% RAP $ 38 /ton Services Agreement Page 17 of 18 EXHIBIT C INSURANCE REQUIREMENTS 1. The Service Provider will provide, from insurance companies acceptable to the City, the insurance coverage designated hereinafter and pay all costs. Before commencing work under this bid, the Service Provider shall furnish the City with certificates of insurance showing the type, amount, class of operations covered, effective dates and date of expiration of policies, and containing substantially the following statement: "The insurance evidenced by this Certificate will not be cancelled or materially altered, except after ten (10) days written notice has been received by the City of Fort Collins." In case of the breach of any provision of the Insurance Requirements, the City, at its option, may take out and maintain, at the expense of the Service Provider, such insurance as the City may deem proper and may deduct the cost of such insurance from any monies which may be due or become due the Service Provider under this Agreement. The City, its officers, agents and employees shall be named as additional insureds on the Service Provider's general liability and automobile liability insurance policies for any claims arising out of work performed under this Agreement. 2. Insurance coverages shall be as follows: A. Workers' Compensation & Employer's Liability. The Service Provider shall maintain during the life of this Agreement for all of the Service Provider's employees engaged in work performed under this agreement: Workers' Compensation insurance with statutory limits as required by Colorado law. 2. Employer's Liability insurance with limits of $100,000 per accident, $500,000 disease aggregate, and $100,000 disease each employee. B. Commercial General & Vehicle Liability. The Service Provider shall maintain during the life of this Agreement such commercial general liability and automobile liability insurance as will provide coverage for damage claims of personal injury, including accidental death, as well as for claims for property damage, which may arise directly or indirectly from the performance of work under this Agreement. Coverage for property damage shall be on a "broad form" basis. The amount of insurance for each coverage, Commercial General and Vehicle, shall not be less than $500,000 combined single limits for bodily injury and property damage. In the event any work is performed by a subcontractor, the Service Provider shall be responsible for any liability directly or indirectly arising out of the work performed under this Agreement by a subcontractor, which liability is not covered by the subcontractor's insurance. Services Agreement Page 18 of 18 ccKlidn CONRFI ACORD,. CERTIFICATE OF LIABILITY INSURANCE D TE o,z THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Flood & Peterson Ins., Inc. CONTACT NAME: Nikki MOsbru Cker CONK Eat970-266-7123 ma No: 970-506-6823 P. 0. Box 578 Greeley, CO 80632 970 356-0123 AODR",. nikki.mosbrucker@fpinsurance.com CR FTC full cert USTOMER ID #: INSURER(S) AFFORDING COVERAGE NAIC # INSURED Connell Resources, Inc. 7785 Highland Meadows Parkway Fort Collins, CO 80526 INSURER A: Travelers Insurance Company INSURERS: PinnacOl Assurance INSURER C INSURER 0: INSURE0. E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE L POLICY NUMBER POLICY EFF MwDDIYYYY POLICY EXPLTR M' MMIDDYY LIMBS (A GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE F OCCUR DTC04794N532- IND11 6101/2011 06/0112012 EACH OCCURRENCE S1 000 000 PREMISES Eeoaunence s300000 MED EXP (Any one person) $10000 PERSONAL B ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE POLICY LIMIT APPLIES PER: PRO LOC X JECT PRODUCTS-COMPIOP AGG s2,000,000 $ A AUTOMOBILE 1XXX LIABILITY ANYAUTO ALL OWNED AUTOS SCHEDULED AUTOS AUTOS NON -OWNED AUTOS Drive Other Car DT8104794N532- TIL71 6/01/2011 06/0112012 COMBINED SINGLE LIMIT (Eeecciden) $1000000 BODILY INJURY(Per person) S BODILY INJURY(Per ecddent) s PROPERTY DAMAGEHIRED (Per acodenl)S S $ A UMBRELLA LIAR EXCESS LIAR X OCCUR CLAIMS -MADE DTSMCUP4794- N532TIL11 6/01/2011 06/0112012 EACH OCCURRENCE $1D0000Do- AGGREGATE $10000000 DEDUCTIBLE RETENTION S S B WORKERS COMPENSATION ANDEMPLOYERS' LIABILITY YIN ANY PROPRIETOWPARTNEWEXECUTIVE OFFICERIMEMBER EXCLUDED? n (Mandatory in NH) 11 yes, aeScribe under DESCRIPTION OF OPERATIONS below NIA QD29651 6/D112D11 D6/D71201 X WC STATU- OTH- ER E.L. EACH ACCIDENT $500,000 E.L. DISEASE - EA EMPLOYEE $500,000 E.L, DISEASE -POLICY LIMIT 11501,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ANZCh ACORD 101, Additional Remerka Schedule, II more space is raRWnd) RE: 7737 Asphalt Supply Services Agreement Certificate holder is named as additional insured, but only as respects liability arising out of work performed by the named insured (Excluding Workers' Compensation). A waiver of subrogation applies. City of Fort Collins Purchasing Division PO Box 580 Fort Collins, CO 80522 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE 01988-2009 ACORD CORPORATION. All rights reserved. ACORD 25 (2009109) 1 off #S697004IM615935 The ACORD name and logo are registered marks of ACORD 7n notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: City: Copy to: Service Provider: City of Fort Collins City of Fort Collins Connell Resources, Inc. Attn: Purchasing Attn: Kathleen Maddux Attn: John Warren PO Box 580 PO Box 580 7785 Highland Meadows Pkwy, Suite 100 Fort Collins, CO 80522 Fort Collins, CO 80522 Fort Collins, CO 80528 In the event of early termination by the City, the Service Provider shall be paid for services rendered to the date of termination, subject only to the satisfactory performance of the Service Provider's obligations under this Agreement. Such payment shall be the Service Provider's sole right and remedy for such termination. 5. Contract Sum. The City shall pay the Service provider for the performance of this Contract, subject to additions and deletions provided herein, per the attached Exhibit "B", consisting of one (1) pages, and incorporated herein by this reference. 6. City Representative. The City will designate, prior to commencement of the work, its representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the services provided underthis agreement. All requests concerning this agreement shall be directed to the City Representative. 7. Independent Service provider. The services to be performed by Service Provider are those of an independent service provider and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Service Provider's compensation hereunder for the payment of FICA, Workmen's Compensation or other taxes or benefits or for any other purpose. 8. Personal Services. It is understood that the City enters into the Agreement based on the special abilities of the Service Provider and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Service Provider shall neither assign any responsibilities nor delegate any duties arising under the Agreement without the prior written consent of the City. Services Agreement Page 2 of 18 9. Acceptance Not Waiver. The City's approval or acceptance of, or payment for any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement or cause of action arising out of performance of this Agreement. 10. Warranty. a. Service Provider warrants that all work performed hereunder shall be performed with the highest degree of competence and care in accordance with accepted standards for work of a similar nature. b. Unless otherwise provided in the Agreement, all materials and equipment incorporated into any work shall be new and, where not specified, of the most suitable grade of their respective kinds for their intended use, and all workmanship shall be acceptable to City. C. Service Provider warrants all equipment, materials, labor and other work, provided under this Agreement, except City -furnished materials, equipment and labor, against defects and nonconformances in design, materials and workmanship/workwomanship for a period beginning with the start of the work and ending twelve (12) months from and after final acceptance under the Agreement, regardless whether the same were furnished or performed by Service Provider or by any of its subcontractors of any tier. Upon receipt of written notice from City of any such defect or nonconformances, the affected item or part thereof shall be redesigned, repaired or replaced by Service Provider in a manner and at a time acceptable to City. 11. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default thereof. 12. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting party commences legal or Services Agreement Page 3 of 18 equitable actions against the defaulting party, the defaulting party shall be liable to the non - defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred because of the default. 13. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 14. Indemnity/Insurance. a. The Service Provider agrees to indemnify and save harmless the City, its officers, agents and employees against and from any and all actions, suits, claims, demands or liabilityof any character whatsoever brought or asserted for injuries to or death of any person or persons, or damages to property arising out of, result from or occurring in connection with the performance of any service hereunder. b. The Service Provider shall take all necessary precautions in performing the work hereunder to prevent injury to persons and property. c. Without limiting any of the Service Provider's obligations hereunder, the Service Provider shall provide and maintain insurance coverage naming the City as an additional insured under this Agreement of the type and with the limits specified within Exhibit C, consisting of one (1) page, attached hereto and incorporated herein by this reference. The Service Provider before commencing services hereunder, shall deliver to the City's Director of Purchasing and Risk Management, P. O. Box 580 Fort Collins, Colorado 80522 one copy of a certificate evidencing the insurance coverage required from an insurance company acceptable to the City. 15. Entire Aoreement. This Agreement, along with all Exhibits and other documents incorporated herein, shall constitute the entire Agreement of the parties. Covenants or representations not contained in this Agreement shall not be binding on the parties. 16. Law/Severability. The laws of the State of Colorado shall govern the construction Services Agreement Page 4 of 18 interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. 17. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Service Provider represents and agrees that: a. As of the date of this Agreement: 1. Service Provider does not knowingly employ or contract with an illegal alien who will perform work under this Agreement; and 2. Service Provider will participate in either the e-Verify program created inPublic Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the "e-Verify Program") or the Department Program (the "Department Program"), an employment verification program established pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment eligibility of all newly hired employees to perform work under this Agreement. b. Service Provider shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. c. Service Provider is prohibited from using the e-Verify Program or Department Program procedures to undertake pre -employment screening of job applicants while this Agreement is being performed. d. If Service Provider obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Service Provider shall: 1. Notify such subcontractor and the City within three days that Service Provider has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and Services Agreement Page 5 of 18 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Service Provider shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. e. Service Provider shall comply with any reasonable request by the Colorado Department of Labor and Employment (the "Department") made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. f. If Service Provider violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Service Provider shall be liable for actual and consequential damages to the City arising out of Service Provider's violation of Subsection 8-17.5-102, C.R.S. g. The City will notify the Office of the Secretary of State if Service Provider violates this provision of this Agreement and the City terminates the Agreement for such breach. Services Agreement Page 6 of 18 ATTEST: City Clerk �d'T4+7 '1011114NIM CITY OF FORT COLLINS, COLORADO a municipal corporation By: James B. O'Neill ll, CPPO, FNIGP Direct r Purchasing and Risk Management --jDate:_ CONNELL/RESIOURCES INC CORPRKATE/d� PRESIDENT OR VICE PRESIDENT /p/ Date: r//aDl'� ATTEST /�(Corporate Seal) SST. CORPORVE SECRETARY Services Agreement Page 7 of 18 EXHIBIT A SCOPE OF WORK Section 109 of the Standard Specifications is hereby revised as follows DESCRIPTION The Colorado Department of Transportation "Standard Specifications for Road and Bridge Construction", latest revision, and the current Larimer County "Urban Area Street Standards" (hereafter referred to as the "Standard Specifications") are made a part of the Contract by this reference, except as revised herein, and are hereby adopted as the minimum Standard Specifications of Compliance for this project. Subsection 109.06 shall be amended to include the following: 1. Price adjustments shall be paid on a monthly basis for asphalt cement included in the work with the following conditions: A Payment shall be based on the pay item quantities under Section 403, Hot Mix Asphalt, and per the invoice for pay items when asphalt cement is included in the accepted quantities. B Price adjustments may be either positive or negative dollar amounts. The intention of the monthly price adjustment is to account for direct price increases or decreases due to asphalt cement costs only. Any asphalt cement price decreases will also be passed on to the City in the form of a price reduction. C Vendor will be required to submit HMA monthly pricing including the asphalt cement supplier quote for the upcoming month no later than the 2ntl to the last business day of each month. D In the event a Vendor does not submit new monthly pricing for the upcoming month, no material will be purchased from that Vendor for that month. E No payments will be made to the Vendor without receipt of the asphalt cement suppliers' invoice as verification of the asphalt cement price deviation from the original per ton bid price. The prices submitted for verification shall be for delivered asphalt cement for the respective month of invoicing. F Asphalt cement cost adjustments shall not be made for any invoices falling wholly after the expiration of contract time. G No payment will be allowed for any HMA material that is deemed to not meet the specifications. The asphalt cement cost adjustment shall be the sum of the individual adjustments for each of the pay items. No adjustment shall be made for asphalt cement costs on items other than those shown above. Services Agreement Page 8 of 18 EXAMPLE: The bid price per ton listed in Column 1 shall be valid and held firm for the entire month of April 2012. The price listed in Column 2 will be the "Price Adjustment Factor" and shall remain fixed throughout the term of the contract. • Bidders will be required to state the April 2012 asphalt cement price per ton. This will be the base price per ton. • Price increases based on the cost of asphalt cement will be allowed per the following: The Vendor must use the amount stated for Item A (April 2012 asphalt cement cost per ton) as a base. If the per ton cost of asphalt cement rises, the amount of increase (the new cost per ton less the base amount shown in Item A) will be calculated as "Increment Units" that will be factored into the formula below to establish the amount of allowable increase for a ton of finished product. Each "Increment Unit" will equal $10.00 (example; a per ton increase of $35.00 for asphalt cement will result in 3.5 Increment Units). Partial increment units of 0.50 and above will be rounded up; partial units of 0.49 and below will be rounded down. This formula shall be used to calculate the allowable price increases for each finished product: Allowable increase = number of Increment Units x Price Adjustment Factor Note: The above calculation will also be utilized for any price decreases Item `A': The following bid price is based on the April 2012 price for: Asphalt cement (PG 64-22) 300.00 /ton MIX DESIGN COLUMN 1 COLUMN 2 Mix Design Method Price Adjustment Factor SHRP N DESIGN 75 OR iGb; GR S (PG 64-22) with 20% RAP $ 3500 /ton $ 0.39 /ton The following example illustrates a price adjustment using the above examples: April per ton cost of asphalt cement = $300.00 May per ton cost of asphalt cement = $335.00 Note: the `Price Adjustment Factor' (PAF) in Item `A' will always be the figure that is subtracted from each respective increase per ton cost of asphalt cement. Increment Units = $335.00 - $300.00 divided by $10.00 = 3.5 (rounded up to 4.0) 4.0 Increment Units x $0.39 Price Adjustment Factor = $1.56 Services Agreement Page 9 of 18