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HomeMy WebLinkAbout12 - Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property ServicesQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report April 28, 2020 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Joshua Rosenbaum, Senior Management Analyst, jrosenbaum@newportbeachca.gov PHONE: 949-644-3057 TITLE: Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property Services ABSTRACT - The City contracts for street sweeping services, which include weekly sweeping of all residential and commercial streets, parking lots, and extra sweepings. Frequent street sweeping is an effective practice to reduce debris and pollutants from entering the bay and ocean. The current service contract is set to expire at the end of May. A formal Request for Proposals (RFP) selection process was conducted and staff recommends the approval of a ten-year service agreement with Jonset Corporation dba Sunset Property Services to provide street sweeping services. RECOMMENDATIONS: 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 the Services Agreement with Jonset Corporation dba Sunset Property Services for street sweeping services for a ten-year term with the first year annual not -to -exceed amount of $775,000 and a total not -to -exceed amount of $8,885,000 over the ten-year agreement, and authorize the Mayor and City Clerk to execute the Agreement. FUNDING REQUIREMENTS: The adopted Fiscal Year 2019-20 budget includes sufficient funds for street sweeping services for the current fiscal year. These services will be expensed to the Contract Street Sweeping Services account in the Utilities Department, General Fund Account No. 0109062-811021. 12-1 Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property Services April 28, 2020 Page 2 The annual cost for the new service contract is $775,000. The existing service contract annual cost is approximately $500,000. The existing service provider was unable to commit to a contract extension at that price. For next year's Fiscal Year 2020-21 budget, this contract will require a program enhancement of approximately $275,000. The base contract cost for the first year of the Agreement is approximately $736,300, with a not -to -exceed limit of $775,000 to cover additional sweeping services including the summer schedule, special events, standby, and emergencies. Staff reviewed the rates of several other local agencies and determined that our existing rates were signficantly lower than the current market rates. Over the last several years, labor rates, regulations, insurance rates and requirements have all increased beyond standard inflationary costs. Coupled with the cost to purchase new sweepers, staff anticipated a cost increase and budgeted a placeholder of $115,000 in the current budget. This was unused and is being recognized as program savings this fiscal year toward the revenue shortfall due to the COVID-19 global pandemic. The onboarding and transition of the new service provider takes time as equipment and employees are procured and this will allow additional budget savings during the first year of the contract. DISCUSSION: The Utilities Department Storm Drain/Street Sweeping program division manages the street sweeping services contract, which covers weekly sweeping of the City's 720 curb miles of residential and commercial streets. Weekly street sweeping is one of the most important strategies to reduce pollutants entering the bay and ocean. The contract also includes additional sweeping services as needed for special events and the special summer schedule. The existing 10 -year agreement with the current contractor will expire on May 31, 2020. In anticipation, the Utilities and Finance Department issued a Request for Proposal (RFP) in January to solicit proposals for street sweeping services. The contract requires the service provider to purchase and use new Compressed Natural Gas (CNG) clean fuel sweepers to be compliant with South Coast Air Quality Management District regulations. These new sweepers will provide the City with the best long-term quality, performance, and efficiency to reduce pollutants entering the storm drain systems and to reduce noise. The new sweepers will also utilize the latest technology, including global positions systems, which allow staff monitoring capabilities at all times. Each sweeper will have decals indicating the vehicle is contracted to serve the City and will include the Utilities Department phone number for the community to report any concerns. The City received four proposals, and an evaluation panel reviewed and graded the proposals based on technical qualifications, experience, and the proposer's ability to perform and to deploy services which accounts for 50 percent of the evaluation criteria. The remaining 50 percent of the evaluation criteria compared pricing. This includes curb mile costs for weekly, monthly and annual sweeping for the City's five sweeping routes and hourly rates for as -needed sweeping services for special events and other occasions. 12-2 Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property Services April 28, 2020 Page 3 The proposals ranked as follows: Upon completion of the evaluation scoring, Sunset Property Services (Sunset) ranked the highest among the proposals. Sunset ranked second best in technical qualifications and best overall in cost review by a wide margin. Staff was initially concerned with Sunset's low pricing in comparison to the others. However, based on our discussions and research, Sunset confirmed their pricing structure with their low overhead and their pricing appears to be competitive with the market. Staff thoroughly interviewed Sunset's management and field personnel and contacted other agency references to review quality and pricing. Staff believes that Sunset Property is well-qualified, has performed satisfactory work for other municipalities in Orange County, can perform the work at the contract pricing and can meet the demanding requirements of the contract. Sunset's corporate office and yard is in Orange County (Irvine) and can provide a quick response for additional services. Sunset also previously performed well as the City's former alley sweeping service contractor. Due to the COVID-19 crisis, staff attempted to negotiate with the existing street sweeping service provider to continue its services with their existing 10 -year old equipment and existing pricing. Unfortunately, their existing pricing is believed to be well below market rate and they could not agree to an extension or another pricing structure less than Sunset's pricing. The existing provider intends to complete its services on May 31 sl and will not be available during the phasing in of the new contractor. The base contract annual cost is approximately $736,300, with a not -to -exceed limit of $775,000 to cover additional sweeping services including the summer schedule, special events, standby, and emergencies etc. Sunset and Utilities Department staff are in the process of developing the onboarding schedule. Procuring the new street sweepers will take some time and used or non -allocated sweepers are not easily found in the industry. Staff is developing a multi -resource strategy by using the City's retired backup sweeper to self -sweep, smaller sweepers from Sunset, and sweepers from the City's alley sweeping contractor. 12-3 TECHNICAL COST SCORE - TOTAL SCORE - OVERALL PROPOSER SCORE- MAX. 50 MAX. 100 RANK MAX. 50 (ANNUAL COST) Jonset Corporation dba 50.00 -90.67 40.67 1 Sunset Property Services ($736,291) 32.31- R.F. Dickson Co., Inc. 40.67 72.98 2 $1,139,286 27'70 Athens Services 45.00 72.70 3 $1,328,844 29.87 CR&R Incorporated 37.33 67.20 4 $1,232,442 Upon completion of the evaluation scoring, Sunset Property Services (Sunset) ranked the highest among the proposals. Sunset ranked second best in technical qualifications and best overall in cost review by a wide margin. Staff was initially concerned with Sunset's low pricing in comparison to the others. However, based on our discussions and research, Sunset confirmed their pricing structure with their low overhead and their pricing appears to be competitive with the market. Staff thoroughly interviewed Sunset's management and field personnel and contacted other agency references to review quality and pricing. Staff believes that Sunset Property is well-qualified, has performed satisfactory work for other municipalities in Orange County, can perform the work at the contract pricing and can meet the demanding requirements of the contract. Sunset's corporate office and yard is in Orange County (Irvine) and can provide a quick response for additional services. Sunset also previously performed well as the City's former alley sweeping service contractor. Due to the COVID-19 crisis, staff attempted to negotiate with the existing street sweeping service provider to continue its services with their existing 10 -year old equipment and existing pricing. Unfortunately, their existing pricing is believed to be well below market rate and they could not agree to an extension or another pricing structure less than Sunset's pricing. The existing provider intends to complete its services on May 31 sl and will not be available during the phasing in of the new contractor. The base contract annual cost is approximately $736,300, with a not -to -exceed limit of $775,000 to cover additional sweeping services including the summer schedule, special events, standby, and emergencies etc. Sunset and Utilities Department staff are in the process of developing the onboarding schedule. Procuring the new street sweepers will take some time and used or non -allocated sweepers are not easily found in the industry. Staff is developing a multi -resource strategy by using the City's retired backup sweeper to self -sweep, smaller sweepers from Sunset, and sweepers from the City's alley sweeping contractor. 12-3 Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property Services April 28, 2020 Page 4 Staff anticipates that the transition will take four to six months and during this time period some of the frequencies of non -posted sweeping routes will be reduced. For example, some arterials which are swept daily will be reduced to twice a week. This will also allow the City to save funds during FY 2020-21, which will be beneficial as the City looks to manage expenditures over the next several months in response to COVID-19. During the course of the contract, staff will review and monitor the Contractor's performance on a routine basis to ensure a high level of service is being provided to the community. The contract includes performance metrics to maintain the high service level including equipment metrics, sweeping speeds, water usage, complaint resolutions and deductions/liquidated damages for unsatisfactory performance levels. 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 —Services Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property Services 12-4 ATTACHMENT A MAINTENANCE/REPAIR SERVICES AGREEMENT WITH JONSET CORPORATION DBA SUNSET PROPERTY SERVICES FOR STREET SWEEPING SERVICES THIS MAINTENANCE/REPAIR SERVICES AGREEMENT ("Agreement') is made and entered into as of this 28th day of April, 2020 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and JONSET CORPORATION, a California corporation doing business as ("DBA") SUNSET PROPERTY SERVICES ("Contractor"), whose address is 16251 Construction Circle West, Irvine, California 92606, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Contractor to perform maintenance and/or repair services for City ("Project'). C. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the maintenance and/or repair services described in this Agreement. D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by City for the Project, is familiar with all conditions relevant to the performance of services, and has committed to perform all work required for the compensation specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the Effective Date, and shall terminate on May 31, 2030, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED 2.1 Contractor shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). As a material inducement to City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and Contractor is experienced in performing the Work contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow community professional standards with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances, in performing the Work required hereunder, and that all materials will be of good quality. 12-5 2.2 Contractor shall perform all Work required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project. 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Contractor shall perform the Services in accordance with the schedule included in Exhibit A. In the absence of a specific schedule, the Services shall be performed to completion in a diligent and timely manner. The failure by Contractor to strictly adhere to the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein, not later than two (2) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.4 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 4.1 City shall pay Contractor for the Services on a time and expense 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. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Seven Hundred Seventy Five Thousand Dollars and 001100 ($775,000.00) per year, subject to the CPI adjustment allowed per year under this Agreement, without prior written amendment to the Agreement. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Eight Million Eight Hundred Eighty Five Thousand Dollars and 001100 ($8,885,000.00) for the for the term of the Agreement, without prior written amendment to the Agreement. 4.2 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 Jonset Corporation dba Sunset Property Services Page 2 12-6 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 3.0% of the Billing Rates in effect immediately preceding such adjustment, whichever is less. 4.3 Contractor shall submit monthly invoices to City describing the Work performed the preceding month. Contractor's bills shall include the name and/or classification of employee who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Contractor no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.4 City shall reimburse Contractor only for those costs or expenses specifically identified in Exhibit B to this Agreement, or specifically approved in writing in advance by City. 4.5 Contractor shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with Exhibit B. 5. PROJECT MANAGER 5.1 Contractor shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Contractor has designated Andrea Howhannesian to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. Jonset Corporation dba Sunset Property Services Page 3 12-7 6. ADMINISTRATION This Agreement will be administered by the Utilities. City's Utilities Manager 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. 7. CITY'S RESPONSIBILITIES To assist Contractor in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's Work schedule. 8. TYPE AND INSTALLATION OF MATERIALS/STANDARD OF CARE 8.1 Contractor shall use only the standard materials described in Exhibit A in performing Services under this Agreement. Any deviation from the materials described in Exhibit A shall not be installed or utilized unless approved in advance and in writing by the Project Administrator. 8.2 All of the Services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Contractor certifies that the Work conforms to the requirements of this Agreement, all applicable federal, state and local laws and legally recognized professional standards. 8.3 Contractor represents and warrants to City that it has, shall obtain and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.4 Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. RESPONSIBILITY FOR DAMAGES OR INJURY 9.1 City and all officers, employees and representatives thereof shall not be responsible in any manner for any loss or damage to any of the materials or other things used or employed in performing the Project or for injury to or death of any person as a result of Contractor's performance of the Services required hereunder; or for damage to Jonset Corporation dba Sunset Property Services Page 4 12.8 property from any cause arising from the performance of the Project by Contractor, or its subcontractors, or its workers, or anyone employed by either of them. 9.2 Contractor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause arising from Contractor's Work on the Project, or the Work of any subcontractor or supplier selected by Contractor. 9.3 To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent and/or willful acts, errors and/or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 9.4 Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. 9.5 Contractor shall perform all Work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Contractor shall be liable for any private or public property damaged during the performance of the Work by Contractor or its agents. 9.6 To the extent authorized by law, as much of the money due Contractor under and by virtue of the Agreement as shall be considered necessary by City may be retained by it until disposition has been made of such suits or claims for damages as aforesaid. 9.7 The rights and obligations set forth in this Section shall survive the termination of this Agreement. 10. INDEPENDENT CONTRACTOR 10.1 It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of Jonset Corporation dba Sunset Property Services Page 5 12.9 conducting the Work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Contractor or its employees. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall have the responsibility for and control over the means of performing the Work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance of the Work or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the Services. 10.2 Contractor agrees and acknowledges that no individual performing Services or Work pursuant to this Agreement shall: work full-time for more than six (6) months; work regular part-time service of at least an average of twenty (20) hours per week for one year or longer; work nine hundred sixty (960) hours in any fiscal year; or already be a CalPERS member. 11. COOPERATION Contractor agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with Contractor on the Project. 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. BONDING 15.1 For any Letter Proposal accepted by City of over Twenty Five Thousand Dollars and 00/100 ($25,000.00), Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement: (1) a Labor and Materials Payment Bond in the amount of one hundred percent (100%) of the total amount to be paid Contractor as Jonset Corporation dba Sunset Property Services Page 6 12-10 set forth in any Letter Proposal accepted by City of over Twenty Five Thousand Dollars and 00/100 ($25,000.00), and in the form attached hereto as Exhibit D which is incorporated herein by this reference; and (2) a Faithful Performance Bond in the amount of one hundred percent (100%) of the total amount to be paid Contractor as set forth in any Letter Proposal accepted by City of over Twenty Five Thousand Dollars and 00/100 ($25,000.00), and in the form attached hereto as Exhibit E which is incorporated herein by this reference. 15.2 The Labor and Materials Payment Bond and Faithful Performance Bond shall be issued by an insurance organization or surety (1) currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, (2) listed as an acceptable surety in the latest revision of the Federal Register Circular 570, and (3) assigned a Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide: Property - Casualty. 15.3 Contractor shall deliver, concurrently with City's approval of any Letter Proposal over Twenty Five Thousand Dollars and 00/100 ($25,000.00), the Labor and Materials Payment Bond and Faithful Performance Bond, a certified copy of the "Certificate of Authority" of the Insurer or Surety issued by the Insurance Commissioner, which authorizes the Insurer or Surety to transact surety insurance in the State of California. 16. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Contractor is a partnership or joint -venture or syndicate or cotenancy, which shall result in changing the control of Contractor. Control means fifty percent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 17. SUBCONTRACTING The subcontractors authorized by City, if any, to perform Work on this Project are identified in Exhibit A. Contractor shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. Jonset Corporation dba Sunset Property Services Page 7 12-11 18. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents"), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractor's expense, provide such Documents to City upon prior written request. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. 20. RECORDS Contractor shall keep records and invoices in connection with the Services to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Contractor shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 21. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Contractor shall not discontinue Work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or his/her designee with respect to such disputed sums. Contractor shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 22. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other contractors in connection with the Project. 23. CONFLICTS OF INTEREST 23.1 Contractor or its employees California Political Reform Act of 1974 (the sea., which (1) require such persons tc may be subject to the provisions of the "Act") and/or Government Code §§ 1090 et disclose any financial interest that may Jonset Corporation dba Sunset Property Services Page 8 12-12 foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 23.2 If subject to the Act and/or Government Code §§ 1090 et seq., Contractor shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 24. NOTICES 24.1 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. 24.2 All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Utilities Manager Utilities Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 24.3 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Andrea Howhannesian Jonset Corporation dba Sunset Property Services 16251 Construction Circle West Irvine, CA 92606 25. CLAIMS Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Contractor in writing as unsettled at the time of its final request for payment. Contractor and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Contractor shall be required to file any claim Contractor may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). Jonset Corporation dba Sunset Property Services Page 9 12-13 26. TERMINATION 26.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 26.2 Notwithstanding the above provisions, City shall have the right, at its sole and absolute discretion and without cause, of terminating this Agreement at any time by giving no less than seven (7) calendar days' prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for Services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 27. LABOR 27.1 Contractor shall conform with all applicable provisions of state and federal law including, but not limited to, applicable provisions of the federal Fair Labor Standards Act ("FLSK) (29 USCA § 201, of seq.). 27.2 Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of this Agreement, Contractor shall immediately give written notice to City, and provide all relevant information. 27.3 Contractor represents that all persons working under this Agreement are verified to be U.S. citizens or persons legally authorized to work in the United States. 27.4 To the fullest extent permitted by law, Contractor shall indemnify, defend, and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees from loss or damage, including but not limited to attorneys' fees, and other costs of defense by reason of actual or alleged violations of any applicable federal, state and local labor laws or law, rules, and/or regulations. This obligation shall survive the expiration and/or termination of the Agreement. 28. STANDARD PROVISIONS 28.1 Recitals. City and Contractor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference. 28.2 Compliance with all Laws. Contractor shall, at its own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter Jonset Corporation dba Sunset Property Services Page 10 12-14 enacted. In addition, all Work prepared by Contractor shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 28.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 28.4 Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 28.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 28.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 28.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. 28.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 28.9 Controllinq Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 28.10 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 28.11 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. 28.12 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. Jonset Corporation dba Sunset Property Services Page 11 12-15 [SIGNATURES ON NEXT PAGE] Jonset Corporation dba Sunset Property Services Page 12 12-16 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: Cf L Z/ 2 a Z By:- X ,- L� " Aaron C. Harp City Attorney ATTEST: Date: In Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Will O'Neill Mayor CONTRACTOR: Jonset Corporation dba Sunset Property Services, a California corporation Date- By.- John ate: By:John D. Howhannesian President Date: A Andrea Howhannesian Secretary [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Exhibit D — Labor and Materials Payment Bond Exhibit E — Faithful Performance Bond Jonset Corporation dba Sunset Property Services Page 13 12-17 EXHIBIT A SCOPE OF SERVICES I. DEFINITIONS The following is an explanation of terms frequently referred to: ■ "City" - Refers to the City of Newport Beach. ■ "Project" - The provision of street sweeping services contracted under this Agreement. ■ "Contractor" - Refers to the Jonset Corporation, a California corporation doing business as Sunset Property Services. ■ "Contract" or "Agreement" —This agreement for services between the City and the Contractor. ■ "Curb Mile" - The term "curb mile" shall equal 5,280 feet, be length, of street (curb to curb) by the width of the sweeper (approximately eight feet) and is the measurement used to determine compensation under this contract. Compensation shall be as follows: a street one (1) linear mile long with: (Center medians will be included in all curb miles and the contractor shall be responsible for making four passes. Two outside and two inside.) 1) No medians would measure two (2) curb mile. 2) Painted median would measure three (3) curb miles 3) Raised/curbed medians would measure four (4) curb miles. ■ "Linear Mile" - the measurement of actual miles driven in order to satisfactorily clean streets to the City standard, which may require multiple passes depending on condition and width of street. ■ "Curb -to -Curb" - the area within curb limits of the street including medians, intersections, and street ends. ■ "Holiday" - all days observed by the City as holidays including: New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving (including the Friday after), Christmas Eve, Christmas Day, New Year's Eve. ■ "Inclement Weather" - refers to the weather conditions that prohibit the effective operation of sweeping operations. ■ "Debris" - refers to all litter, rubbish, leaves, sand, dirt, silt, garbage, and all other foreign material, excluding hazardous materials, to be removed from paved streets with a mechanical street sweeper. Jonset Corporation dba Sunset Property Services Page A-1 12-18 ■ "Street" - refers to all paved dedicated public rights-of-way within the existing or future corporate limits of the City. ■ "Re -sweep" - sweep required when previous sweeps are deemed by the City to be below standard/unacceptable or when a street or sections of a street are missed during regularly scheduled operation. All costs for re -sweeps shall be borne by the Contractor. ■ "Special Sweep" - sweep involving unusual conditions such as traffic hazards, parades, special events, and similar events billed at an hourly rate including travel time. Prior approval from Utilities Director, Utilities Manager or designee is required. ■ "Sweeping Speed": sweeper operator must maintain a speed between five (5) and seven (7) miles per hour while the sweeping broom is lowered in the operating position. Optimal sweeping speed for a TYMCO is five (5) miles per hour. A slower speed may be required under certain conditions where large quantities of debris are present (i.e. sand, gravel, glass, heavy leaves, etc.) Actual sweeping speed may vary depending upon conditions and locations. II. SCOPE OF WORK The work to be performed under this Agreement consists of providing street sweeping services for the City, in pre -designated areas of the City, on City determined schedules/routes, and at City selected hours of each day of the week. All work shall comply with all other applicable air and water pollution prevention regulations, including South Coast Air Quality Management District ("AQMD") Rules 1186 and 1186.1. III. STREET SWEEPING EQUIPMENT 1. Equipment Quantity Requirements. Quality and quantity of the equipment used by the Contractor for the sweeping of the streets shall be sufficient to perform the work required herein within the hours of work specified herein, and an absolute minimum of five (5) New Tymco Conventional CNG Street Sweepers and one (1) back-up sweeper shall be provided. Pick -Up Heads will include Broom Assist Head (BAH) function. Primary sweepers shall have a regenerative air system and shall be used primarily, for the City under this Agreement, as long as it does not affect the services or scheduled routes for the City, as an exception if needed. The back-up sweeper shall be a regenerative air street sweeper equivalent, with BAH functionality, AQMD Rule 1186.1 compliant, and shall be made available in case of breakdown of primary sweeper(s). Regenerative air street sweepers shall be used for the posted sweeping of residential streets/ arterial streets. All sweeping equipment used by Contractor for the City shall have the same curb mile cost. All equipment used by Contractor for the City shall meet City requirements and standards. Jonset Corporation dba Sunset Property Services Page A-2 12-19 2. Alternative Fuel Equipment. City requires that alternative fuel vehicles be used in the sweeping of its streets. Contractors shall provide test -proven documentation to verify the fuel's clean - burning efficiency. All equipment used in performance of this'Contract shall be in compliance with AQMD Rule 1186.1. All proposals, documentation, and literature shall be included with completed specifications and contract documents prior to closing date and time. 3. Equipment Identification. All street sweeping vehicles shall have safety features and shall be painted a uniform color and shall bear in legible letters the Contractor's name and the following wording: "Contracted to Serve the City of Newport Beach Street Sweeping — (949) 644-3011 " City is to issue formal approval on the format and information used by Contractor. The equipment identification on sweeper does not require the inclusion of the City Seal. Unless expressly allowed by the City Council of the City, the official seal of the City shall not be used by the Contractor. 4. Type and Capacity. Arterial and residential sweepers must be capable of sweeping a minimum eight (8) foot width as measured from the outside edge of the gutter broom in a single pass along the curb. Street sweepers must have a maximum hopper capacity of seven (7) cubic yards. All sweepers must be equipped with a right and left -gutter broom for median work. Contractor is required to have vacuum/regenerative air or combination vacuum/broom (BAH) type municipal sweepers available for this Agreement. Alternative street sweepers will be considered if capable of meeting City requirements and standards. The type used in specific areas will be at the discretion of the City providing performance standards are met. Sample types include Tymco 600 regenerative air sweepers, and Tymco 600 regenerative air sweeper with a broom -assisted head BAH and their equivalents. All Street sweepers shall have operational directional traffic control devices mounted on the rear of vehicle's hopper. Additionally, a 360 degree, LED light safety beacon of comparable traffic safety light is required to be placed on roof of truck cap or atop hopper. Sweeper equipment operators shall wear protective clothing, equipment, and a current ANSI/ ISEA safety vest at all times. Jonset Corporation dba Sunset Property Services Page A-3 12-20 5. Maintenance. Equipment shall be maintained both visually and operationally. Paint and body of street sweeper shall be maintained in good condition with no visible rust or body damage. Vehicle engines shall be routinely maintained as to insure a high level of service during street sweeping operations and must comply with all State or California Department of Motor Vehicles CAL -OSHA and all other applicable codes required by the State, County and City. The street sweepers or any relief sweeper used to perform this Contract work shall: A. Be a standard full-size motorized sweeper. B. Be a Tymco 600 regenerative air sweeper, or industry equivalent, with dual gutter brooms, left and right. C. Age of Equipment — 1) All sweepers shall be no more than two years old at the start of the contract; and 2) new model 2020 street sweepers shall be used within 6 months of route phase-in implementation. D. Be maintained in top running condition, including arriving clean for each daily schedule. E. The Contractor shall allocate a minimum of one (1) relief sweeper to perform the contract work in the event the primary street sweeper is unavailable. F. The Contractor shall not be permitted to drain, washout, or clean hopper into any gutter, storm drain, public street, alley or City owned parking lot. The street sweepers or any relief sweeper shall be equipped with the following: A. Amber/ LED dome lights. B. DMV night traveling amber/LED side, rear, and top lights. C. An on -board City water meter (provided at no -charge to the Contractor), with pre -arranged times for reading and billings between the Contractor and City Utilities Department. The Contractor shall include in their monthly billing the amount of water used during that month for their sweeping operation. (City water meter remains the property of the City throughout the term of the contract and shall be returned to the City within ten (10) business days of contract termination. City reserves the right to withhold payment of the Contractor's final invoice until all water meters provided to Contractor are returned to the City.) D. Dual side gutter brooms having no less than 5 -inch long bristles. Keep Pick -Up head curtain functional. Jonset Corporation dba Sunset Property Services Page A-4 12-21 E. A set of road trouble fluorescent triangles. F. A mechanically attached sign on each street sweeper reading: "Contracted to Serve the City of Newport Beach Street Sweeping — (949) 644-3011 " G. The Contractor is to provide the decal(s) for each of their Street Sweepers assigned to the City and place one decal on the driver side and one on passenger side doors. Contractor is to submit the decal for City review and approval prior to attaching decals on sweeper. H. The sweeper shall also be identifiable with the company name on each side along with Contractor's office telephone number. I. All street sweepers shall conform to the most current AQMD regulations. J. Adequate water systems for dust control. The Contractor is required to utilize water for all sweeping operations under this Contract. When using water, all nozzles, depending upon conditions and as needed to mitigate dust control, will be operational and in use. K. Automatic vehicle location device (vehicle location and management system [e.g., global positioning system]). L. Every street sweeper shall have back-up camera(s) and collision avoidance technology, or other technology for similar safety measures if available by equipment manufacturer at the time of purchase. If after -market technology safety equipment is to be used, Contractor shall get City approval for such equipment, and the City shall reimburse Contractor for the purchase and installation of the after -market safety equipment on City assigned street sweepers. M. Loss of Hydraulic Pressure — All street sweepers shall have the ability to detect a drop in hydraulic oil loss pressure with an on -board automatic shut- off device. IV. GLOBAL POSITIONING EQUIPMENT AND SOFTWARE 1. The Contractor shall provide automatic vehicle location device (vehicle location and management system [e.g., GPS]) on all street sweeper units, including subcontractors. This device shall be placed on all sweeping equipment at the Contractor's cost. 2. The Contractor shall provide associated software programs, which will report all street sweeping activity. The associated software shall be provided at no Jonset Corporation dba Sunset Property Services Page A-5 12-22 cost to the City including monthly monitoring charges. The Contractor shall provide software and licensing for two work stations and all associated IT services required to install, maintain, and update this software. Software shall be capable of being operated on computers utilizing the Microsoft Windows 10 operating system as well as any newer version Microsoft Windows operating system. 3. Software shall be capable of demonstrating real-time location, speed and path of travel of equipment equipped with GPS systems. Software shall be capable of recording and printing daily activity logs indicating actual miles traveled, ground speed of equipment, the location of equipment at any given time and any other information that is suitable for documenting actual work performed by the Contractor under this agreement. 4. The Contractor shall provide adequate training on an annual basis for City staff in the operation and use of this system and allow the City street sweeping division employees access to log -in from City offices. 5. Should any device fail, or need repair, the Contractor shall immediately report that the GPS is inoperative to City. If the Contractor's software or monitoring website fails, the Contract Administrator shall immediately notify the Contractor. The Contractor shall repair any non -operational portion of the system within two (2) business days or liquidated damages may be deducted from payments due the Contractor for each twenty-four (24) hour period, or portions thereof, that the system is unavailable to the City. Should vendor or web -based system related issues outside of Contractor's control occur, then the Contractor shall notify City upon receiving notice from vendor about such issues which may or may not result in the suspension of deductions. 6. The GPS equipment and web -based system or related software shall be installed on Contractor's new TYMCO 600 Sweeper within 90 days of taking ownership of said vehicle into Contractor fleet. Contractor is responsible for all costs associated with the purchase and installation of the GPS equipment and web -based system or related software onto the TYMCO 600 sweepers. During the phase-in period of the five City street sweeping routes, Contractor shall equip any assigned non -new Street Sweepers with GPS equipment and web - based system or related software prior to commencement of a new street sweeping route. V. STREET SWEEPING SPEED Street sweepers shall, depending upon conditions, be operated at speeds between five (5) and (7) seven miles per hour as will be indicated on tachograph or Global Positioning System charts, covered hereinafter. Reviews by the City shall be made of all tachograph or Global Positioning System charts to check sweeping start — stop times, miles swept, and sweeping speeds. If at any time the City determines that sweeping Jonset Corporation dba Sunset Property Services Page A-6 12-23 speed has exceeded seven (7) miles per hour, the Contract Administrator may require the Contractor to re -sweep any part of, or the entire sweeping route in question at no additional cost to the City. The only exception to the above street sweeping speed condition is that no more than ten (10) miles per hour is allowed on arterial highways with center medians. Contractor may operate the street sweeper between 10 to 13 miles per hour on the following major arterial segments, including medians, within City limits.- 1. imits: 1. Coast Highway; 2. Jamboree Avenue; 3. MacArthur Avenue; 4. Newport Coast Drive; and 5. San Joaquin Hills Road. VI. EQUIPMENT MALFUNCTIONS The equipment operator shall immediately stop in the event of equipment spillage such as a spillage of gasoline, diesel, motor oil, engine coolant, or hydraulic oil. Street Sweeper operator/ driver shall carry equipment and materials necessary, (with the exception of kitty litter products), to properly dispose of spilled material such that it does not reach the storm water system. A call for assistance must be made and the area cleaned within three hours. Failure to affect a proper cleanup will result in the City responding with City personnel and equipment and/or contractors for hazardous materials handling. Any and all cleanup costs created as a result of action(s) by a third -party will be borne by the City. On the day of any spill due to street sweeper malfunction, the street sweeper operator is to pressure wash and recover (i.e. vacuum water used) the area of the spill. VII. WORKING HOURS All sweeping activities shall be completed by 2:00 P.M., Monday through Friday unless the Utilities Department Manager gives prior approval. Typically sweeping occurs no earlier than 4:00 A.M., except in designated areas in which sweeping begins at 3:00 A. M. VIII. LEVEL OF MAINTENANCE All work shall be performed in accordance with the highest maintenance standard. Standards, schedules, and frequencies may be modified from time to time as deemed necessary by the City for the proper maintenance of the sites. Due to different street widths throughout the City, street sweeping may require slower travel speed and/or multiple passes by the sweeper, in many cases, to ensure curb -to -curb coverage of the Jonset Corporation dba Sunset Property Services Page A-7 12-24 street. Streets with raised medians (commercial and residential) shall have their curb - gutter perimeter swept, including turnouts and dead zones. Street -grade striped medians shall be swept in their entirety. All deposits within intersections shall be removed as part of the sweeping operations. Each street shall be swept clean to the adjacent property line. Swept clean means minimal debris residual or tailings. Any sweeper used must not blow debris onto private property nor drain water onto the street from the rear hopper. Sweeper shall travel with the direction of traffic at all times. A significant number of City streets are posted no parking for street sweeping during designated hours on various days of the week. It is imperative that the Contractor maintain a firm schedule for sweeping posted streets, as the Contractor is required to coordinate sweeping operations with Parking Control Officers ("PCO") from the Newport Beach Police Department. In regards to routes with a PCO, the street sweeper operator should make their best effort to stay behind the ticketing PCO; however, in the cases where the PCO stops their vehicle to issue a parking citation, the street sweeper may continue on with the designated route and the PCO will catch up to the street sweeper. The Contractor is required to sweep parking lots, including the City Utilities and Corporation Yards. Contractor is responsible for sweeping everything that is open and allows safe driving around parked vehicles. Contractor shall be required to push out corners and around parking bumpers with a broom or electric blower so the sweeper can sweep the debris. An acceptable alternative to hand sweeping, for locations such as street ends and portions of parking lots, will be considered. Any alternative must be approved by the Utilities Manager. The Contractor is required to correct deficiencies within the time specified by the City. Re -sweeps of the deficient area will not be billed to the City. If noted deficient work has not been completed, payment for subject deficiency shall be withheld for current billing period and shall continue to be withheld until deficiency is corrected, without right to retroactive payments. Non -Sweeping for Inclement Weather. Non -sweeping days due to a City Holiday or if City requests Contractor not to sweep on a regularly scheduled street sweeping day, are not to be deducted from the monthly invoice. Following inclement weather, Contractor crews will spend additional time to handle the excessive debris and associated costs caused by a change in the weather. Contractor would issue a credit of 50% for service(s) that are cancelled due to inclement weather, i.e. rain, excessive wind, etc. If, in the judgment of the City, the level of maintenance is less than that specified herein (including but not limited to: excessive speed leading to insufficient cleaning of the streets and gutters, not using water creating dust, worn out pick-up head skirts blowing dust, our of adjustment/worn out BAH brooms, etc.), the City shall, at its option, in addition to or in lieu of other remedies provided herein, withhold appropriate payment from the Contractor until services are rendered in accordance with specifications set forth within this document and providing no other arrangements have been made between the Jonset Corporation dba Sunset Property Services Page A-8 12-25 Contractor and the City. Failure to notify of a change and/or failure to perform an item or work on a scheduled day may result in deduction of payment for that date or week. Payment will be retained for work not performed until such time as the work is performed to City standard. Liquidated Damages and Deductions. Citywide street sweeping services require a high level of dependable, reliable and comprehensive service throughout the City of Newport Beach. Should the Contractor perform these services at an unsatisfactory level or not at all, then the City will impose liquidated damages or invoice deductions for non- performance and/or not meeting the maintenance of effort required to perform the scope of services under the contract. Contractor acknowledges that the actual damages likely to result from a breach of this Agreement are difficult to ascertain on the date this Agreement was entered into and may be difficult for the City to prove in the event of a breach. Therefore the Contractor and the City intend that the payment of liquidated damages, as described below, would serve to reasonably compensate the City for the City's actual damages sustained, and not as a penalty, due to any breach described below by Contractor of its obligations under this Agreement and the Contractor agrees to pay this amount to the City for each incident of material breach, as described below, of this Agreement. The following list of items may result in the imposition of liquidated damages or invoice deductions after the third (3rd) violation within three-month non -rolling period. For the first violation, the City shall notify Contractor by informal email to the Contractor Project Administrator and for the second (2nd) violation, the City shall send a formal letter to the Contractor informing them of the violation and the next one shall be subject to liquidated damages and/or invoice deductions. The imposition of any liquidated damages and/or deductions shall be suspended for the first six months (the "grace period") from the date Contractor starts to sweep Route 1. For any new route that is phased -in after the six-month "grace" period, liquidated damages or deductions shall be suspended for sixty (60) days. Performance Failure Liquidated Damages to be Paid to City by Contractor GPS Technology Failure On the 3rd violation of a quarter, $100/per da Excessive Speeding during Speed % over allowed speed Sweeping Operations (i.e. equals % deducted from daily Brooms down) route cost Failure to Sweep Route Deduction of actual daily route cost, plus 10% per route da Sweeper Equipment Failure On the V violation of a quarter, 10% deduction per Equipment route da Jonset Corporation dba Sunset Property Services Page A-9 12-26 IX. SCHEDULES 1. Phased Implementation. A. The sweeping operations shall be implemented utilizing a phased -in route approach in which Contractor shall assume incremental responsibility of sweeping areas of the city over the course of approximately five (5) months. The City shall only pay for the phase(s) or "routes" actually assigned to and being swept by the Contractor. B. A phase-in timeframe of thirty (30) days for each new street sweeping route shall be implemented. The phase-in timeframe may be accelerated (i.e. less than 30 days), or extended if necessary, upon mutual agreement of the City and Contractor. C. Existing contractor shall remain responsible for areas of the city that are not specifically assigned to new contract staff until notified by the Utilities Manager. 2. Annual Schedule. A. The City shall provide the Contractor an annual schedule indicating the time frames when items of work shall be accomplished per the performance requirements. B. The Contractor shall complete the schedule for each functional area in a manner that shall correspond to the weekly schedule. 3. Monthly Schedule. A. Monthly schedule forms shall be provided by the Contractor indicating the major items of work to be performed in accordance with the performance requirements and further delineate the time frames for accomplishment by day of the week and by morning and afternoon. These schedule forms shall be based on the street sweeping route and turn -by -turn schedule the City provides the Contractor. B. The Contractor shall complete the schedule for each item of work and each area of work. C. The Contractor shall only adjust its schedule to compensate for all holidays and rainy days with approval of the Utilities Manager. Jonset Corporation dba Sunset Property Services Page A-10 12-27 X. RECORDS AND SCHEDULE The Contractor shall keep accurate records concerning all of its employees or agents and provide the City with names and telephone numbers of emergency contact employees. The Contractor shall complete a monthly maintenance report indicating work performed and submit this completed report to the Utilities Manager. This report should also contain a description of work performed, including man-hours, equipment, and any additional work, which the contractor deems to be beyond the scope of the contract. Payment for this work will not be authorized unless the additional work and the costs thereof are first approved by the City. A phone log shall be submitted monthly of all calls from the City of Newport Beach Utilities Department and the City of Newport Beach Police Department to the Contractor, whether or not those calls require a request for service, and a description of the action taken from the City call. The Contractor shall permit the City to inspect and audit its books and records regarding City -provided services at any reasonable time. XI. WATER The Contractor shall be issued water meter(s), which must be utilized when filling equipment from City fire hydrants. The City shall pay for the City water used by the Contractor during street sweeping operations. Contractor shall return all city water meters provided within ten (10) working days of contract termination, or the City reserves the right to withhold the final monthly invoice payment until all water meters are returned to the City. XII. DISPOSAL Sweeping debris shall be disposed of at the Public Works Municipal Operations Corporation Yard. The City shall be responsible for disposal fees. XIII. EMERGENCY SERVICES The Contractor shall provide the City with names and telephone numbers of at least two qualified persons who can be called by City representatives when emergency maintenance conditions occur during hours when the Contractor's normal work force is not present in the City. These Contractor representatives shall respond to said emergency within thirty (30) minutes from receiving notification. XIV. CONTRACTOR'S OFFICE Contractor is required to maintain an office within a one (1) hour response time of the job site and provide the office with phone service during normal working hours. During all other times, a telephone answering service shall be utilized and the answering service shall be capable of contacting the Contractor by radio or cell phone. Contractor shall have Jonset Corporation dba Sunset Property Services Page A-11 12.28 a maximum response time of thirty (30) minutes to all emergencies. The on-site storage of equipment used exclusively for providing service within the City shall be permitted. Contractor shall have full responsibility for maintaining an office and a yard. All Contractor employees assigned to work for the City under this contract shall be able to read, write and speak in fluent English. XV. SUPERVISION OF CONTRACT All work shall meet with the approval of the City of Newport Beach Utilities Department. There shall be a minimum of one monthly meeting with the Contractor and the City representative to determine progress and to establish areas needing attention. A status report of activities performed and maintenance issues addressed by the Contractor shall be submitted in writing to the City on a weekly basis. Any specific problem area which does not meet the conditions of the specifications set forth herein shall be called to the attention of the Contractor and if not corrected, payment to the Contractor shall not be made until condition is corrected in a satisfactory manner as set forth in the specifications. Contractor Supervisor shall follow the street sweeper operator for quality control and assurance to ensure sweeper meets the requirements and standards of the City. The Contractor Supervisor or designee shall also roam throughout the City by vehicle for at least four (4) hours of each sweeping day, once all five City sweeping routes are phased - in and become responsibility of Contractor, if needed. XVI. CORRESPONDENCE All correspondence shall be addressed as required under Section 24 of the Agreement. XVII. SPECIFICATIONS This Scope of Services is intended to cover all labor, material and standards of workmanship to be employed in the work called for in this work plan or reasonably implied by terms of same. Work or materials of a minor nature which may not be specifically mentioned, but which may be reasonably assumed as necessary for the completion of this work, shall be performed by the Contractor as if described in the specifications. XVIII. MEET AND CONFER After the second year of the contract term, if the demonstrable costs for insurance, environmental compliance, equipment, fuel, or labor costs due to new laws, cause an increase in the overall operating costs of Contractor's operation dedicated to this contract in excess of ten percent (10%) over the previous year, Contractor may request that the parties agree to meet and confer over the increases with the aim of providing Contractor with an adjustment that will realize the parties' reasonable expectations in contracting. Jonset Corporation dba Sunset Property Services Page A-12 12.29 For purposes of this paragraph, the burden shall be on the Contractor to establish with proof the baseline of operation, the increase in operating costs, and how the parties could not reasonably have anticipated the increase in operating costs. The "meet and confer" between the parties does not guarantee any amendment to this Agreement. Jonset Corporation dba Sunset Property Services Page A-13 12-30 ATTACHMENT A: DETAILED MAPS Jonset Corporation dba Sunset Property Services Page A-14 12-31 g Street Sweeping route 1 sT City of Newport goo ch f December 12, 2019 J J� Ty 1' aR W - � NEWPORT ! J SHORES - K 15TH ST IN �, X61, )6 O i • ' \ ham I 1Z :'SANTA ANA:l \b RIVER JETTY HOSPITAL RD 0 I 5 NORTH \�,\ STAR 41, pC�F o ASIN ',DC7/Y f OR IV J V r NEWPORT DUNES LINDA ISLE 'l+Monday 4:30 A.M. \+Tuesday 4:30 A.M. Wednesday 4:30 A.M. ' Thursday 4:30 A.M. 'L+Friday 4:30 A.M. Monday & Friday 4:30 A.M. -"—Monday & Wednesday 4:30 A.M. Monday, Wednesday & Friday 4:30 A.M. —\—Monday through Friday (Daily) 4:30 A.M. i Monday - 28.3 miles Tuesday - 2.4.9 miles Wednesday - 26.5 miles Thursday 21.6 miles Friday - 29.3 miles INH. , yo SNF �D\/nJ HARBOR uoD C/ ISLAND e� PENINSULAe� ti3�o \ � �AORT LIDO CSOL LINAND BALSDA 1&4 ,, BAY 4i W 'r'o ISLE ISLAND 7 > _ t` ¢ o Lu NEWPORT „~yl �_ 70 PARK AVE z Z PIER 2 a BALBOA ISLAND x ro GHANNEC a \ �e ---_EAST BALBOA PIER PACIFIC OCEAN 12-32 Street Sweeping Route 2 _- City of Newport Beach December 13, 2019 ' r�—�T —II !� �!wc 1 I_ C° - N£WPPRr . 9� t SrrORES Monday - 30.2 miles Tuesday - 27.7 miles Wednesday - 34.4 miles Thursday 33.7 miles Friday - 27.6 miles INH N `ti Monday 4:30 A.M. —N- Tuesday 4:30 A.M. 4� Wednesday 4:30 A.M. Thursday 4:30 A.M. Friday 5:00 A.M. Monday & Friday 4:30 A.M. 1Ii � "N 'X�� . � P `tip Monday &Wednesday 4:30 A.M. Monday, Wednesday & Friday 4:30 A.M. Monday through Friday (Daily) 4:30 A.M. ? �S UPPER -V NEWPORT BAY -Y Avf MAprxfRs DRr IN.. AL \� Nr1fy d 15-11A R -A, f Ra �q c aaei cR / A yoo 'v x z 'y a o�� a i4 i p A C � N FASHION " STy dt = AIEGE° ISLANO of'� a AM1 M1bq� s A HAA -A 2 a AACrrA _E4 nP/r 3Q LIPe ¢r 1<NP C� � i .ixa� ZY x ap PENlH6LiA A,E�na- B,A Sr ; Y r �� •v+ 14o "EST r r.rAxP aAlaaA LI DO rgStANa i 1 r e JaAOUIN T N!(l5 vrER " 6ALBOA ISLAND 04 P^i® RA „„r � 0 EAST y Ge PACIFIC OCEAN ,z wP, F 9IL a �eReRA 12-33 Monday 4:30 A.M. a Street Sweeping Route 3 City of Newport Beach Tuesday 4:30 A.M. December 12, 2019 _1J �`� /"�,•\.!;•' ` Wednesday 5:00 A.M, 4 dAx vrF ��� UPPER ,+ Thursday 5:00 A.M. i Y ap e — — i— Ji � y \\ f� '�- Friday 4:30 A.M. I _ NEWPORT --Monday & Friday 4;30 A.M. ----._. IL I-. — \ ' , j BAY Monday & Wednesday 4:30 A.M. Monday, Wednesday & Friday 4:30 A.M. ``r -j-_ I � �l>. \� `; t � �, Monday through Friday (Daily) 4:30 A.M. I .`. Y'-!�� /\`/ � \ \ �. %• Ye w "' \ sero \ y-/�`/, ����: ` s` �Z l / 49 I }5TH 6T W i yJQ kvSPITAt RD - �\ �r \ /, lOr'A•„ °P Ao y nQ c '\Ry\�-0 RrcR ° if' yr g GIl LYAY W 9 � r ° Tx iu RNrNO ?+� Q' O I� Bx SfA � J T v° VyEsr1 ` hovHiir � . FASHION N p4P¢r2 aW$° NEWP a SAry o AlOG EORT A ISLAND a[e RAR60R O aq�,rFr El CSF T9 W¢ O gS PEDRsutA lfiLAN6 D0. Y n .. •y _ R zAP° h'ESr ~FW ORr LIDO �seANo 9AEHOA Isit a 2 W o a 3 ISLE ssArvO ° \•..' RD ao �/anwtr. NE—ORT R PIER 9~ - ^ SA 18DA !BLAND r C$Dq CNANNE4 i 8-L9 A ear 5 . f, r K P W OrtS [L "CROA • "61 J PACIFIC OCEAN °cFTa `PPS °'ee WF06F en 81G J CORONA C Monday - 28.5 milesF x ° �{ Tuesday - 26.2 miles nE Newroer q° caAsr Wednesday - 19.9 miles i `aR—A M Thursday 28.15 miles N�� 1. --= S,rDAFs Ax 12-34 A—` Street Sweeping Route A City of Newport Beoch December 12, 2019 74�� 71-111 7 IT LT 11 UPPER NEWPORT BAY Monday 4:30 A.M. —\—Tuesday 4:30 A.M. Wednesday 5;00 A.M. Thursday 5:00 A.M. ti Friday 4:30 A.M. Monday & Friday 4:30 A.M. Monday & Wednesday 4:30 A.M. Monday, Wednesday & Friday 4:30 A.M. Monday through Friday (Daily) 4-30 A.M. C T v� '7- _4� IV' ar e w FAS"[ON NEWPORT RIVGE iSLAND IS, jSLE R - RD -ILLS14ax RD BALBOA ISLAND Dt9 NIDD. 041'04 EAST PlEp OA DD !L Monday - 24.8 miles Tuesday - 35 miles PACIFIC OCEAN Wednesday - 25.5 miles Thursday - 31.9 miles Friday - 28.5 miles ell 1FW­" r COAST 4b 12-35 Street Sweeping Route 5 City of Newport Beach ... ..... ..... UPPER Monday - 37.4 miles Tuesday - 47.7 miles Wednesday - 34.5 miles Thursday - 36.2 miles Friday - 31.7 miles E N ! !.!WFC%T_ v JA Monday 4:30 A.M. Tuesday 3:00 A.M. Wednesday 4;30 A.M. Thursday 3:00 A.M. Friday 3:00 A.M. Monday & Friday 4:30 A.M. Monday & Wednesday 4:30 A.M. Monday, Wednesday & Friday 4:30 A.M. Monday through Friday (Daily) 4:30 A.M. wnppr Nleat 12-36 NEWPORT BAY r\ P 40 8—.A —A,D of PACIFIC OCEAN let, Monday - 37.4 miles Tuesday - 47.7 miles Wednesday - 34.5 miles Thursday - 36.2 miles Friday - 31.7 miles E N ! !.!WFC%T_ v JA Monday 4:30 A.M. Tuesday 3:00 A.M. Wednesday 4;30 A.M. Thursday 3:00 A.M. Friday 3:00 A.M. Monday & Friday 4:30 A.M. Monday & Wednesday 4:30 A.M. Monday, Wednesday & Friday 4:30 A.M. Monday through Friday (Daily) 4:30 A.M. wnppr Nleat 12-36 `� BAYiy1, Street Sweeping Summer/Holiday % tri City of Newport Beach Pecember 11, 2019 RO J gfS \ t. AVE t j h{ARSNERS f)Ro 1 640 ` •J'Q4 SHORES O _ S / % web l r j 61 SORO Opp �U 1 _ ,1 ly O BCNITA A ANAQ I10 JETTY _ I 9J HOSPITAL Rp •.` /• •.� %. C(�� O� NORTH Q `�-a`�� sa BEACH p 4 A.y GHwAY 2 ��h F A.� y /e9 y T6ASIa N�o¢�� o a Jam¢ v ti'L'r3 wasr VP 2 NEWP.Rrm FASHIONDUNES y W ISLAND 'I G O O O LINDA 3; ,�'6� C• ISIE y si v R�NF( SPK 2$ r HARBORC K AgCrFi c"6 LIDO ISLAND d,9 5 \ PENINSULA N 9 ST ty Ll v r• L ,L•�RO I. FWPOR BAY ISLAND L 5ALB.A ISLE EST LIAO ISLAND e Y jj w i ao JOA NEWPORTr' ' h P PARK AVE rc 9rt P PIER w s W y BALBOA ISLAN0 a B J4 ti P Cl1n NNE -i Or t 8r k a� z _ 4D SPR a� s EAST BALBOA P 1 ER O �Ir qG O� i OL,Fq Fop PACIFIC OCEAN HE WE➢GE m BIO `Q CORONA f M Fgsr LITTLE < t CORONA NB ,;� a �.�• o. CAMEO SHORES 12-37 EXHIBIT B SCHEDULE OF BILLING RATES ROUTE Daily Route Cost* (Weekly Sweeps) Weekly Route Cost (Weekly Sweeps) Monthly Route Cost* (Weekly Swee s Route 1 (130.60 curb miles) $ 513.78 $ 2,568.90 _$ 11,131.90 Route 2 (153.30 curb miles) $ 603.08 $ 3,015.41 $ 13,066.78 Route 3 (102.75 curb miles) $ 505.27 $ 2,021.09 $ 8,758.06 Route 4 (145.70 curb miles) $ 573.18 $ 2,865.92 $ 12,418.99 Route 5 (187.50 curb miles) $ 737.63 $ 3,688.13 $ 15,981.90 Total Annual Cost $736,291.40 Annual Per Curb Mile Cost (Total Annual Cost/720 Curb miles) $ 19.67 *Averages Hourly Regular Rate Hourly Overtime (Holidays WORK DESCRIPTION Normal Work Day Weekends, and Atter 4:30pm Monday — Friday) Curb mile for additional scheduled sweeps (i.e. annexation) $ 130.00 $ 185.00 Curb mile for additional special sweeps (i.e. event, emergency) $ 130.00 $ 185.00 Jonset Corporation dba Sunset Property Services Page B-1 12-38 EXHIBIT C INSURANCE REQUIREMENTS — MAINTENANCE/REPAIR/JANITORIAL SERVICES 1. Provision of Insurance. Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Contractor agrees to provide insurance in accordance with requirements set forth here. If Contractor uses existing coverage to comply and that coverage does not meet these requirements, Contractor agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers and employees. B. General Liability Insurance. Contractor shall maintain commercial general liability insurance and, if necessary, umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, products -completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented Jonset Corporation dba Sunset Property Services Page C-1 12-39 vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. tion. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers and employees or shall specifically allow Contractor or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subcontractors. B. Additional Insured Status. All liability policies including general liability, products and completed operations, excess liability, pollution liability, and automobile liability, if required, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers and employees shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days notice of cancellation (except for nonpayment for which ten (10) calendar days notice is required) or nonrenewal of coverage for each required coverage. 5. Additional Agreements Between the Parties The parties hereby agree to the following: A. Evidence of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of Jonset Corporation dba Sunset Property Services Page C-2 12-40 insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Contractor sixty (60) calendar days advance written notice of such change. If such change results in substantial additional cost to Contractor, City and Contractor may renegotiate Contractor's compensation. C. Right to Review Subcontracts. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13. D. Enforcement of Agreement Provisions. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. F. Self-insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. Jonset Corporation dba Sunset Property Services Page C-3 12-41 G. City Remedies for Non -Compliance. If Contractor or any subcontractor fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Contractor's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Contractor or reimbursed by Contractor upon demand. H. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. I. Contractor's Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Jonset Corporation dba Sunset Property Services Page C-4 12-42 EXHIBIT D CITY OF NEWPORT BEACH BOND NO. LABOR AND MATERIALS PAYMENT BOND WHEREAS, the City of Newport Beach, State of California, has awarded to hereinafter designated as the "Principal," an agreement for maintenance and/or repair services, in the City of Newport Beach, in strict conformity with the Agreement on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Agreement and the terms thereof require the furnishing of a bond, providing that if Principal or any of Principal's subcontractors, shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the Work agreed to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same to the extent hereinafter set forth. NOW, THEREFORE, We the undersigned Principal, and, duly authorized to transact business under the laws of the State of California, as Surety, (referred to herein as "Surety") are held and firmly bound unto the City of Newport Beach, in the sum of Dollars ( ), lawful money of the United States of America, said sum being equal to 100% of the amount of any Letter Proposal accepted by City of over Twenty Five Thousand Dollars and 00/100 ($25,000.00), payable by the City of Newport Beach under the terms of the Agreement; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal or the Principal's subcontractors, fail to pay for any materials, provisions, or other supplies, implements or machinery used in, upon, for, or about the performance of the Work contracted to be done, or for any other work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the Principal and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, then the Surety will pay for the same, in an amount not exceeding the sum specified in this Bond, and also, in case suit is brought to enforce the obligations of this Bond, a reasonable attorneys' fee, to be fixed by the Court as required by the provisions of Section 9554 of the Civil Code of the State of California. The Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Section 9100 of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this Bond, as Jonset Corporation dba Sunset Property Services Page D-1 12-43 required by and in accordance with the provisions of Sections 9500 et seq. of the Civil Code of the State of California. And Surety, for value received, hereby stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Agreement or to the Work to be performed thereunder shall in any wise affect its obligations on this Bond, and it does hereby waive notice of any such change, extension of time, alterations or additions to the terms of the Agreement or to the Work or to the specifications. In the event that any principal above named executed this Bond as an individual, it is agreed that the death of any such principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the above named Principal and Surety, on the day of , 20 Name of Contractor (Principal) Name of Surety Address of Surety Telephone APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 0 Aaron C. Harp City Attorney Authorized Signature/Title Authorized Agent Signature Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BE ATTACHED Jonset Corporation dba Sunset Property Services Page D-2 12-44 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of }ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. (seal) State of California County of }ss. On 20 before me, Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) Jonset Corporation dba Sunset Property Services Page D-3 12-45 EXHIBIT E CITY OF NEWPORT BEACH BOND NO. FAITHFUL PERFORMANCE BOND The premium charges on this Bond is $ , being at the rate of $ thousand of the Agreement price. WHEREAS, the City of Newport Beach, State of California, has awarded to hereinafter designated as the "Principal," an agreement for maintenance and/or repair services in the City of Newport Beach, in strict conformity with the Agreement on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Agreement and the terms thereof require the furnishing of a Bond for the faithful performance of the Agreement. NOW, THEREFORE, we, the Principal, and , duly authorized to transact business under the laws of the State of California as Surety (hereinafter "Surety"), are held and firmly bound unto the City of Newport Beach, in the sum of ( ) lawful money of the United States of America, said sum being equal to 100% of the amount of any Letter Proposal accepted by City of over Twenty Five Thousand Dollars and 00/100 ($25,000.00), to be paid to the City of Newport Beach, its successors, and assigns; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, or the Principal's heirs, executors, administrators, successors, or assigns, fail to abide by, and well and truly keep and perform any or all the Work, covenants, conditions, and agreements in the Agreement and any alteration thereof made as therein provided on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to its true intent and meaning, or fails to indemnify, defend, and save harmless the City of Newport Beach, its officers, employees and agents, as therein stipulated, then, Surety will faithfully perform the same, in an amount not exceeding the sum specified in this Bond; otherwise this obligation shall become null and void. As a part of the obligation secured hereby, and in addition to the face amount specified in this Performance Bond, there shall be included costs and reasonable expenses and fees, including reasonable attorneys fees, incurred by City, only in the event City is required to bring an action in law or equity against Surety to enforce the obligations of this Bond. Surety, for value received, stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Agreement or to the Work to be performed thereunder shall in any way affect its obligations on this Bond, and it does hereby waive Jonset Corporation dba Sunset Property Services Page E-1 12-46 notice of any such change, extension of time, alterations or additions of the Agreement or to the Work or to the specifications. This Faithful Performance Bond shall be extended and maintained by the Principal in full force and effect for one (1) year following the date of formal acceptance of the Project by City. In the event that the Principal executed this bond as an individual, it is agreed that the death of any such Principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the day of , 20 Name of Contractor (Principal) Name of Surety Address of Surety Telephone APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: Aaron C. Harp City Attorney Authorized Signature/Title Authorized Agent Signature Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BE ATTACHED Jonset Corporation dba Sunset Property Services Page E-2 12-47 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of --Iss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. (seal) State of California County of I ss. On 20 before me, , Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) Jonset Corporation dba Sunset Property Services Page E-3 12-48