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Home My WebLink About09 - Beach Container Refuse Collection ServicePORT CITY OF O � _ i NEWPORT BEACH City Council Staff Report <i FO RN August 13, 2019 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Keith Hinckley, Senior Management Analyst khinckley@newportbeachca.gov PHONE: 949-718-3466 TITLE: Amendment No. One to Agreement with Rainbow Disposal Co., Inc. dba Rainbow Environmental Services (Rainbow) for Beach Container Refuse Collection Service ABSTRACT: The City utilizes a contractor to collect refuse from designated bins located on City beaches on a regularly scheduled basis. Due to an increase in service related to additional demand, the not -to -exceed amount in the City's current agreement with Rainbow has proved insufficient and thus increased contract spending authority is needed in order to allow necessary work to continue. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to the Agreement with Rainbow for Beach Container Refuse Collection Service to modify the compensation terms from an annual not -to - exceed to a contract not -to -exceed amount, increase the total not -to -exceed amount by $120,000.00 for a total not -to -exceed amount of $1,497,624.30, and authorize the Mayor and City Clerk to execute the agreement. FUNDING REQUIREMENTS: The current adopted operation budget includes sufficient funding for these services. It will be expensed to the Beach Refuse Collection account in the Public Works Department, 01090901-811031. 9-1 Amendment No. One to Agreement with Rainbow Disposal Co., Inc. dba Rainbow Environmental Services (Rainbow) for Beach Container Refuse Collection Service August 13, 2019 Page 2 DISCUSSION: The City entered into an agreement with Rainbow on April 30, 2011 upon successful completion of a 12 -week "Pilot Phase," with a scheduled termination date of December 31, 2020. Rainbow was later sold to Republic Services, Inc. (Republic) on August 26, 2014, and a Consent to Change in Control was executed with the City of Newport Beach on September 29, 2014. In order to keep the City beaches clean and safe, Rainbow currently provides trash collection and disposal services for 168 trash carts on City beaches from the Santa Ana River Jetty in West Newport to Corona del Mar State Beach with collection scheduled at two times per week in the winter and five times per week in the summer. During the summer months, an additional 8 carts are placed on the sand at Corona del Mar State Beach, and 2 are staged near the Dory Fishing Fleet and Market at the base of the Newport Pier due to the high number of visitors. This has resulted in a significant decrease in litter on the beaches and surrounding area. Rainbow cleans all of the carts 4 times per year at their Huntington Beach facility and makes all necessary repairs before returning the carts to Newport Beach. During the year, as trash carts require repairs, Rainbow either makes the repairs or replaces the trash carts. Staff has observed that the amount of trash, number of events and the number of carts has increased over the years covered by the current contract. Over the past several years, there has been an increase in warmer days, leading to longer peak beach seasons that resulted in an increased number of visitors to the beach, and thus increased amounts of trash. To accommodate this increased demand, additional pickup days were added as necessary within the week (6 pickup days versus 5). Staff also found it necessary to add more service carts on the beach at certain locations to address higher volumes of trash than originally estimated. At staff's request, Rainbow also now provides additional beach carts collection service for the two Junior Lifeguard events, the RVCA Surf Championships, and other events as needed based upon projected attendance. Due to the high number of visitors associated with certain events at the beach, utilizing Rainbow and the large beach carts has proved to be the best method to reduce litter and contain the refuse generated. Due to the cost for increases in services as discussed above, the not -to -exceed cost limit for the current contract is projected to be insufficient to reach the end of the contract term, which expires December 31, 2020. To accommodate this increased cost, staff recommends City Council approve Amendment No. One for the Rainbow Beach Container Refuse Collection contract and increase the total not -to -exceed amount by $120,000.00, putting the new total at $1,497,624.30. It should be noted that no changes are being made to the contracted billing rates. 9-2 Amendment No. One to Agreement with Rainbow Disposal Co., Inc. dba Rainbow Environmental Services (Rainbow) for Beach Container Refuse Collection Service August 13, 2019 Page 3 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A —Amendment No. One to Agreement with Rainbow. 9-3 ATTACHMENT A AMENDMENT NO. ONE TO AGREEMENT FOR BEACH CONTAINER REFUSE COLLECTION SERVICE WITH RAINBOW DISPOSAL CO., INC. THIS AMENDMENT NO. ONE TO BEACH CONTAINER REFUSE COLLECTION SERVICE AGREEMENT ("Amendment No. One") is made and entered into as of this 13th day of August, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and RAINBOW DISPOSAL, CO., INC., a California corporation ("Contractor"), whose address is 17121 Nichols Lane, Huntington Beach, California 92647, and is made with reference to the following: RECITALS A. On January 11, 2011, City and Contractor entered into an Agreement for Beach Container Refuse Collection Service ("Agreement") for refuse collection, disposal and maintenance services for beach containers on a regular basis ("Project"). B. The parties desire to enter into this Amendment No. One to increase the total compensation based upon an unanticipated increase in the volume of Services; to update the Administration and Notices sections of the Agreement; and to add sections related to No Attorneys Fees and Counterparts. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SERVICES TO BE PERFORMED Exhibit B to the Agreement shall be supplemented as of the Effective Date, to include the Billing Rates and Services, attached hereto as Exhibit B and incorporated herein by reference ("Services" or "Work"). Exhibit B to the Agreement and Exhibit B to this Amendment No. One shall collectively be known as "Exhibit B." The City may elect to delete certain Services within the Scope of Services at its sole discretion. 2. COMPENSATION TO CONSULTANT Section 4 of the Agreement shall be amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a not -to -exceed basis in accordance with the provisions of this Section and the billing Rates attached hereto as Exhibit B and incorporated herein by reference. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed One Million Four Hundred Ninety Seven Thousand Six Hundred Twenty Four Dollars and 30/100 ($1,497,624.30), without prior written amendment to the Agreement. Contractor shall submit all invoices for scheduled collection services and refuse container replacement to City on a monthly basis. City shall pay invoices with thirty (30) days after receipt and approval by the City. Payment shall be deemed made when deposited in the United States mail, first class postage pre -paid, and addressed to Contractor as specified in Section 19 entitle 'Notices'. " The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. One, including all reimbursable items and subconsultant fees, in an amount not to exceed One Hundred Twenty Thousand Dollars and 00/100 ($120,000.00). 3. ADMINISTRATION Section 11(A) of the Agreement shall be amended in its entirety and replaced with the following: "This Agreement will be administered by the Public Works Department. City's Facilities Maintenance Supervisor or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement." 4. NOTICES Section 19 of the Agreement shall be amended in its entirety and replaced with the following: "All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Deputy Director of Public Works Municipal Operations Division City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Chris Kentopp Rainbow Disposal Co., Inc. 17121 Nichols Lane Huntington Beach, CA 92647" Rainbow Disposal Co., Inc. Amendment No. One Page 2 9-5 5. NO ATTORNEYS' FEES Section 31 is added to the Agreement as follows: "31. NO ATTORNEYS FEES In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees." 6. COUNTERPARTS Section 32 is added to the Agreement as follows: "32. COUNTERPARTS This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument." 7. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Rainbow Disposal Co., Inc. Amendment No. One Page 3 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 7 �1 Z�ZOI By: F-t,f, Aaron C. Harp 1Il"�•�ti �q City Attorney ATTEST: Date: an Leilani I. Brown City Clerk Attachments CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Diane B Mayor Dixon CONTRACTOR: RAINBOW DISPOSAL CO., INC., a California corporation Date: By: Chris Kentopp General Manager [END OF SIGNATURES] Exhibit B — Schedule of Billing Rates Rainbow Disposal Co., Inc. Amendment No. One Page 4 9-7 EXHIBIT B SCHEDULE OF BILLING RATES Rainbow Disposal Co., Inc. Amendment No. One Page B-1 9.8 04:I11.1r■_ 3 BILLING RATES Summer Season 178 Bins Total Cost Summer (14 Weeks) Non -Summer Season 168 Bins Total Cost Non -Summer (38 Weeks) Area #1 (50 Bins) $18,635.05 Area #1 (42 Bins) $18,555.62 Area #2 (31 Bins) $13,754•.44 Area #2 (31 Bins) $13,695.82 Area #3 (20 Bins) $8,873.83 Area #3 (20 Bins) $8,836.01 Area #4 (15 Bins) $6,655.37 Area #4 (15 Bins) $6,627.01 Area #5 (25 Bins) $10,204.91 Area #5 (23 Bins) $10,161.41 Area #6 (37 Bins) $16,416.59 Area #6 (37 Bins) $16,346.62 C •