HomeMy WebLinkAbout09 - Approval of Amendment No. Three to Agreement for Beach Container Refuse Collection ServiceQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
September 27, 2022
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: Micah Martin, Deputy Public Works Director
mmartin@newportbeachca.gov
PHONE: 949-644-3055
TITLE: Approval of Amendment No. Three to Agreement for Beach
Container Refuse Collection Service with Rainbow Disposal Co., Inc.
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The City of Newport Beach (City) utilizes a contractor to collect refuse from designated
bins located on City beaches on a regularly scheduled basis. The current contract with
Rainbow Disposal Co. (Rainbow) for this service was approved in January 2011 and
expires on December 31, 2022. Rainbow has since merged with Republic Services, Inc.
(Republic). Staff is requesting an amendment to the current agreement with Republic to
extend the term until February 28, 2026 with annual Consumer Price Index (CPI)
adjustments through the extended term. This amendment will also require an increase to
the not -to -exceed amount to provide for the additional years of service.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(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;
b) Approve Amendment No. Three to Agreement with Republic Services, Inc. for Beach
Container Refuse Collection Service to modify the compensation terms, increase the
total not -to -exceed amount by $1,153,439 for a total not -to -exceed amount of
$3,051,063, and extend the term to February 28, 2026; and
c) Authorize the Mayor and City Clerk to execute the amendment.
DISCUSSION:
To keep the City beaches clean and safe, Republic currently provides trash collection and
disposal services for trash carts on City beaches from the Santa Ana River Jetty in West
Newport to Corona del Mar State Beach. Collection services are provided for 170 trash
carts scheduled two times per week in the winter, and for 204 trash carts scheduled five
times per week in the summer.
9-1
Approval of Amendment No. Three to Agreement for Beach Container
Refuse Collection Service with Rainbow Disposal Co., Inc.
September 27, 2022
Page 2
Over the past few years, warmer weather has arrived earlier than usual. Summer crowds
have arrived at City beaches earlier in the season and the volume of visitors has remained
high later into the fall months. Also, since the pandemic, staff has seen an uptick in the
number of beach visitors. Staff added refuse carts and increased collections to keep the
beaches free of litter and debris. Twenty-four additional carts were placed on the sand at
Newport Pier during the summer months and 10 were placed at the Corona del Mar State
Beach. Collection days were expanded up to seven days a week depending on volume
and demand during peak summer months. This has helped decrease excessive litter and
overflowing trash receptacles on the beaches and surrounding areas. Staff has also seen
an increase in the need for additional cart cleanings due to sanitation needs, graffiti and
excessive use.
The original contract rate was set in 2011, only accounting for the collection of material in
beach carts. The contract was amended in 2019 to separate the cost associated with the
emptying or `tipping' of carts, and the cleaning of carts. The contract was further amended
in 2020 to account for the added cost of an extended peak season. Throughout the
contract and ensuing amendments, rates were capped by a 3% maximum escalator,
though CPI had exceeded this rate at times. As the contract term was set to conclude at
the end of 2022, the City negotiated a contract extension with representatives of Republic.
This negotiation resulted in a 3% CPI increase to existing rates, effective October 1, 2022,
followed by a February 1, 2023 implementation of adjusted rates for cart tipping and
cleanout to compensate for increased operation costs. Throughout the remainder of the
contract term, the rates for cart tip and cleanout shall only increase by a maximum of 3%
annually as per the original contract terms. The 2023 level of service for the emptying, or
`tipping', of carts, as well as two annual cart cleanouts is estimated to be $364,961.
Tip Rate
Cart Cleanout Rate
Current Rate
$6.81
$17.39
October 2022 - 3% Increase
$7.02
$17.91
February 2023 - Adjusted
$7.55
$19.34
The not -to -exceed contract amount also accommodates increased services as needed,
up to seven days per week if necessary. The increase provides flexibility to add and
service additional refuse carts on an as -needed basis. This includes up to 8,000 service
collections during the life of the contract and the supplemental cleaning of up to 3,000
carts or a mixture thereof.
As part of the City Council Working Group on Solid Waste and Recycling issues, staff has
been tasked with consolidating various refuse contracts to improve efficiency and
management, where feasible. By extending this Beach Container Refuse Collection
Service agreement with Republic, the planned end of the contract will align with the
Refuse Container Removal Services contract (street refuse can collection), currently
assigned to CR&R, allowing the potential to merge the two refuse collection contracts in
2026.
9-2
Approval of Amendment No. Three to Agreement for Beach Container
Refuse Collection Service with Rainbow Disposal Co., Inc.
September 27, 2022
Page 3
Both contracts require specialized equipment and merging both contracts will spread
initial capital costs over both services and provide consistency in the service and contract
administration.
Staff recommends that the City Council approve Amendment No. Three for the Republic
Beach Container Refuse Collection contract and increase the total not -to -exceed amount
by $1,153,439, placing the new contract total at $3,051,063, and extending the term by
approximately three years, to February 28, 2026. The contracted billing rates include an
annual adjustment factor of CPI or 3%, whichever is less.
FISCAL IMPACT:
The adopted budget includes sufficient funding for this amendment. It will be expensed
to the Refuse Beach Trashcan Collection account in the Public Works Department,
0108051-811031.
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. Three
9-3
ATTACHMENT A
AMENDMENT NO. THREE TO
AGREEMENT FOR BEACH CONTAINER REFUSE COLLECTION SERVICE
WITH RAINBOW DISPOSAL CO., INC.
THIS AMENDMENT NO. THREE TO BEACH CONTAINER REFUSE
COLLECTION SERVICE AGREEMENT ("Amendment No. Three") is made and entered
into as of this 27th day of September, 2022 ("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
on file with the Secretary of State is 18500 North Allied Way, Phoenix, Arizona 85054,
with a local address of 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. On August 13, 2019, City and Contractor entered into Amendment No. One to the
Agreement ("Amendment No. One") to increase the total compensation based
upon an unanticipated increase in the volume of services, to amend the
Administration and Notices sections of the Agreement, and to add sections related
to No Attorneys Fees and Counterparts.
C. On October 13, 2020, City and Contractor entered into Amendment No. Two
("Amendment No. Two") to increase the total compensation based upon an
unanticipated increase in the volume of services, to update Exhibit B, extend the
term of the Agreement to December 31, 2022, amend Hold Harmless section, and
update insurance requirements.
D. The parties desire to enter into this Amendment No. Three to increase the total
compensation, update the Scope of Services, amend the Schedule of Billing
Rates, and extend the term of the Agreement to February 28, 2026.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on February 28, 2026, unless terminated earlier as set forth herein."
2. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be amended in its entirety and replaced to include
the Scope of Services, attached hereto as Exhibit A and incorporated herein by reference
("Services" or "Work"). The City may elect to delete certain Services within the Scope of
Services at its sole discretion.
3. COMPENSATION TO CONTRACTOR
Exhibit B to the Agreement shall be supplemented to include the Schedule of
Billing Rates, attached hereto as Exhibit B and incorporated herein by reference
("Services" or "Work"). Exhibit B to the Agreement, Exhibit B to Amendment No. One,
Exhibit B to Amendment No. Two and Exhibit B to this Amendment No. Three shall
collectively be known as "Exhibit B."
Section 4 of the Agreement is 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 Schedule of 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 and subconsultant fees,
shall not exceed Three Million Forty Five Thousand Five Hundred Five
Dollars and 73/100 ($3,045,505.73), without prior written authorization
from City. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City.
Upon the first anniversary of the Effective Date and upon each anniversary
of the Effective Date thereafter, the billing rates set forth in Exhibit B ("Billing
Rates") shall be adjusted in proportion to changes in the Consumer Price
Index, subject to the maximum adjustment set forth below. Such adjustment
shall be made by multiplying the Billing Rates in Exhibit B by a fraction, the
numerator of which is the value of the Consumer Price Index for the
calendar month three (3) months preceding the calendar month for which
such adjustment is to be made, and the denominator of which is the value
of the Consumer Price Index for the same calendar month immediately prior
to Effective Date. The Consumer Price Index to be used in such calculation
is the "Consumer Price Index, All Items, 1982-84=100 for All Urban
Consumers (CPI-U)", for the Los Angeles -Riverside -Orange County
Metropolitan Area, published by the United States Department of Labor,
Bureau of Labor Statistics. If both an official index and one or more unofficial
indices are published, the official index shall be used. If said Consumer
Price Index is no longer published at the adjustment date, it shall be
constructed by conversion tables included in such new index. In no event,
however, shall the amount payable under this Agreement be reduced below
the Billing Rates in effect immediately preceding such adjustment. The
maximum adjustment increase to the Billing Rates, for any year where an
adjustment is made pursuant to this Section, shall not exceed the Consumer
Price Index or 2.0% of the Billing Rates in effect immediately preceding such
adjustment, whichever is less."
Rainbow Disposal Co., Inc. Page 2
9-5
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. Three,
including all reimbursable items and subconsultant fees, in an amount not to exceed One
Million One Hundred Forty Seven Thousand Eight Hundred Eighty One Dollars and
43/100 ($1,147,881.43).
4. 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. Page 3
9-6
IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to
be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:. V 1 i/ Z Z
T
By:
a on C. Harp g 10s TA-Ll
City Attorney
ATTEST:
Date:
Leilani I. Brown
City Clerk
Attachments
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
Kevin Muldoon
Mayor
CONTRACTOR: RAINBOW DISPOSAL
CO., INC., a California corporation
Date:
By:
David Hauer
Market Vice President
[END OF SIGNATURES]
Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Rainbow Disposal Co., Inc. Page 4 s 7
EXHIBIT A
SCOPE OF SERVICES
Furnish all labor, equipment, materials and supervision to perform maintenance as
described herein including, but not limited to, the following-
1 . Furnish containers according to City -approved specification.
2. Collect refuse from designated containers and area immediately surrounding
designated containers on beach on a regularly scheduled basis.
3. Notify City Operations Support Superintendent within 2 hours of bulky items or
hazardous materials in designated containers and area immediately surrounding
designated containers on the beach.
4. Clean interior and exterior of all employed containers on beach twice yearly. Once
between May 1-31 and again between Labor Day and September 30. Any service
requests for cleaning over and above the annual schedule listed above shall be
charged the cart clean -out rate listed on Exhibit B — Schedule of Billing Rates.
5. Remove/repair/clean graffiti of/on designated containers on the beach within 24
hours of notice.
6. Summer Season Schedule shall commence on the Sunday preceding March 15th
and shall continue until the first Saturday after September 15th, (27 weeks total).
The Non -Summer Season Schedule shall commence for the remaining 25 weeks of
the year.
7. The Summer Season Schedule service days shall be: Monday, Tuesday, Friday,
Saturday and Sunday. The City may request additional service days (Wednesday
and/or Thursday) upon request.
8. The Non -Summer Season Schedule service days shall be Monday and Friday.
9. Contractor shall properly collect and dispose of all solid waste collected by taking it
to a fully permitted Orange County ("County") certified/licensed landfill or to a fully
permitted licensed transfer station, which is lawfully authorized to accept that
specific type of solid waste material and has been approved by the City. Contractor
agrees to assist the County in verifying tonnage collected by Contractor and
providing information required by the County. Contractor will provide, upon request,
refuse tonnage collected within the County, and outside the County (if relevant to
confirming tonnage origination), separated by jurisdiction, by load type (residential,
commercial, roll -off box), and by facility to which it was delivered (specify which
landfill or transfer station). Contractor will provide customer service levels and route
Rainbow Disposal Co., Inc. Page A-1 9-8
lists. Contractor will cooperate with County audits to verify reported origin of tonnage
by making records and personnel available to the County and/or its auditors.
10. Contractor shall abide by all applicable legislation as it pertains to waste hauling and
diversion requirements. This includes, but is not limited to, California Senate Bill No.
1383, Short -Lived Climate Pollutants law. Contractor will be required to transport all
non -organic material collected to an approved Material Recover Facility for
processing. Where applicable and pre -approved, an organics diversion program
must be implemented. Contractor must demonstrate the ability to provide this
service, provide the location(s) where this service will be provided, and the name
and address of any location(s) where the collected organic waste will be taken for
processing.
Rainbow Disposal Co., Inc. Page A-2 9-9
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EXHIBIT B
SCHEDULE OF BILLING RATES
Rates Effective October 1, 2022:
TIP RATE
$7.02
CART CLEANOUT RATE
$17.91
Rates Effective February 1, 2023:
TIP RATE
$7.55
CART CLEANOUT RATE
$19.34
Rainbow Disposal Co., Inc. Page B-1 9-16