HomeMy WebLinkAbout10 - Amendment No. Two to Agreement for Graffiti Abatement ServicesQ �EwPpRT
CITY OF
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z NEWPORT BEACH
<,FORN'P City Council Staff Report
February 9, 2021
Agenda Item No. 10
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Casey Parks, Utilities Manager, cparks@newportbeachca.gov
PHONE: 949-644-3011
TITLE: Amendment No. Two to Agreement with Urban Graffiti Enterprises,
Inc. for Graffiti Abatement Services
ABSTRACT:
The Utilities Department manages graffiti abatement services to remove 2,500-3,000
incidents of graffiti per year from public property or public view. Abatement services,
primarily done through contract resources, include graffiti and sticker removal, color
matching of painted surfaces, and participating in a countywide graffiti reporting system.
Staff is recommending a contract amendment with our existing vendor to extend the
service agreement term.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Approve Amendment No. Two with a nine-month extension to the Maintenance
Service Agreement with Urban Graffiti Enterprises, Inc. for graffiti abatement services
with a total increase in contract compensation of $210,000, and authorize the Mayor
and City Clerk to execute the agreement.
FUNDING REQUIREMENTS:
Sufficient funding is available in the adopted budget within the General Fund Storm
Drain/Street Sweeping Division account. Typically, graffiti abatement services have cost
approximately $105,000 per year. During the 2020 pandemic, graffiti removal needs
increased, and extra daytime and weekend graffiti removal was necessary and is
estimated to cost approximately $150,000. The increased expenditure in the Storm
Drain/Street Sweeping account, is being funded through savings in the account.
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Amendment No. Two to Agreement with Urban Graffiti Enterprises, Inc.
for Graffiti Abatement Services
February 9, 2021
Page 2
DISCUSSION:
The Utilities Department contracts out graffiti abatement services to remove 2,500-3,000
incidents of graffiti per year from public property, public right of way or private structures
immediately facing public property. Graffiti removals have increased over the years (up
from 1,500-2,000 in 2018). The City of Newport Beach (City) is aggressive in responding
to incidents and removing graffiti. This is believed to discourage future tags, thereby
controlling the further spread of graffiti and reducing other acts of defacement/vandalism
of property in the City. It is the Utilities Department's goal to remove graffiti the same day
or within 12-18 hours of being reported, i.e., the next morning. However, as originally
contracted, graffiti abatement services are not scheduled on the weekends and are
handled on Monday and Tuesday.
Graffiti incidents often occur in the high public contact areas such as public parking lots,
public restrooms, bike trails, city parks, beach areas and private walls immediately
adjacent to public property. These areas are known as "hotspots" and are regularly
inspected Monday through Friday by the graffiti contractor to proactively remove graffiti
and stickers prior to being reported by the public. Graffiti incidents are also often reported
by the public and other City staff through the City's graffiti hotline or online through the
City's Quest system.
Graffiti and stickers are removed by using spray paint remover compounds, sticker
remover compounds, pressure washing (usually on concrete), or painting over the
affected surfaces using a sprayer with the custom color matched on-site.
Urban Graffiti Enterprises, Inc. has been serving the City since 2016, is performing
satisfactorily, and is very responsive. The contractor provides regular staffing Monday
through Friday and call -out services on the weekends and evenings if requested by City
staff. The contractor is responsible for removing the graffiti and documenting incidents
through an online program that is managed by the Orange County Sheriff's Department.
The contractor photographs, maps and labels each graffiti incident. The corresponding
data is available for sharing with the Newport Beach Police Department and other
agencies to predict and analyze tagging patterns.
After the onset of the Covid-19 pandemic in the spring of 2020, increased incidents of
graffiti began to appear in the hotspot areas and staff asked Urban Graffiti to provide
weekend services. The enhanced services continued through the summer and fall of
2020. (Service levels have since returned to five days a week.) The additional costs
incurred were funded through other unspent savings in that division. The current
agreement with Urban Graffiti expires in June of 2021. However, due to the increased
service levels and increased expenditures, the remaining funding capacity in the
agreement is expected to be used by the end of February.
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Amendment No. Two to Agreement with Urban Graffiti Enterprises, Inc.
for Graffiti Abatement Services
February 9, 2021
Page 3
In anticipation of the current contract's expiration, staff recently issued a request for
proposals for a new service contract. Unfortunately, the pricing portion of the proposals
came in significantly higher than the existing contract's unit costs (approximately 45%
higher). When discussing the increase with potential bidders, they noted that several
changes in state laws and rules have dramatically increased their costs. Instead of
entering a new contract, staff recommends extending the existing contract with Urban
Graffiti by one year at the previously negotiated pricing as an interim measure.
Therefore, staff is recommending that the existing agreement be amended to extend the
term to March of 2022 and that the total contract compensation be increased by $210,000
for the remaining term. It is not expected that the entire amount will be necessary as this
was previously negotiated in November based upon a 15 -month, 7 -day a week service
level. However, this does give staff the ability to ramp up service levels during the peak
visitor times and extend the service term by several months, if necessary. Prior to the
expiration of the agreement in 2022, staff will issue a new request for proposals.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Amendment No. Two to the Maintenance/Repair Agreement with Urban
Graffiti Enterprises, Inc for Graffiti Abatement Services.
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ATTACHMENT A
AMENDMENT NO. TWO TO
MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH URBAN GRAFFITI ENTERPRISES, INC. FOR
GRAFFITI ABATEMENT SERVICES
THIS AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES
AGREEMENT ("Amendment No. Two") is made and entered into as of this 9th day of
February, 2021 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("City"), and URBAN GRAFFITI
ENTERPRISES, INC., a California corporation ("Contractor"), whose address is P.O. Box
2383 Covina, California 91722, and is made with reference to the following:
RECITALS
A. On June 14, 2016, City and Contractor entered into a Maintenance/Repair
Services Agreement ("Agreement') for maintenance and/or repair services for City
("Project').
B. On October 1, 2018, City and Contractor entered into Amendment No. One to the
Agreement ("Amendment No. One") to increase the total compensation.
C. The parties desire to enter into this Amendment No. Two to reflect additional
Services not included in the Agreement, as amended, to extend the term of the
Agreement to March 31, 2022, to increase the total compensation, and to amend
the Insurance section of the Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on March 31, 2022, unless terminated earlier as set forth herein."
2. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be amended and replaced in its entirety, as of the
date of this Amendment No. Two, with Exhibit A attached hereto and incorporated herein
by reference ("Services" or "Work"). The City may elect to delete certain Services within
the Scope of Services at its sole discretion.
3. COMPENSATION TO CONSULTANT
Exhibit B to the Agreement shall be amended and replaced in its entirety, as of the
date of this Agreement No. Two, with Exhibit B attached hereto and incorporated herein
by reference ("Billing Rates").
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Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "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. Contractor's
compensation for all Work performed in accordance with this Agreement, including all
reimbursable items and subconsultant fees, shall not exceed Six Hundred Eighty Four
Thousand Four Hundred Eighty Dollars and 00/100 (684,480.00), without prior written
authorization from City. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City."
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. Two,
including all reimbursable items and subconsultant fees, in an amount not to exceed Two
Hundred Ten Thousand Dollars and 001100 ($210,000.00).
4. INSURANCE REQUIREMENTS
Exhibit C to the Agreement shall be amended and replaced in its entirety, as of the
date of this Amendment No. Two, with Exhibit C attached hereto and incorporated herein
by reference.
5. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Urban Graffiti Enterprises, Inc. Page 2
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IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTOR)VEY�S OFFICE
Date: /° /?V/ 7-0
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WRIES I
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ATTEST:
Date:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By.
Will O'Neill
Mayor
CONTRACTOR: URBAN GRAFFITI
ENTERPRISES, INC., a California
corporation
Date: % z%Z-d
By:
J a einoso
resident
Date:_���/
By:
Maffa- G iterrez 77
Secretary
[END OF SIGNATURES]
Attachments: Exhibit A -- Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
Urban Graffiti Enterprises, Inc. Page 3
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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.
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.
Urban Graffiti Enterprises, Inc. Page C-4
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EXHIBIT A
SCOPE OF SERVICES
Urban Graffiti Enterprises, Inc. Page A-1 10-8
SCOPE OF SERVICES
Graffiti Abatement Services
1) Contractor is required to attend training by the Orange County Sheriff's Department on how
to utilize Tracking Automated and Graffiti Reporting System (TAGRS).
2) Contractor will monitor the City's graffiti hotline daily, take photos of the graffiti (before and
after removal); upload the photos to TAGRS and input information regarding the size,
location, description and cost of repair the same day the work is completed. The Utilities
Manager or designee will then verify information and complete report.
3) Contractor will be responsible for supplying and paying for the communication device(s)
and/or service(s) necessary to complete the uploading of the required information to TAGRS.
4) Contractor will be required to submit an activity report to the Utilities Manager, or designee.
i) The activity report is a list including the location of the graffiti, type, date, and the
number of hours that it took to complete the work.
ii) The activity report will be submitted daily via email to the Utilities Manager or
designee's office at (7:30 a.m.). At this time the City will provide the Contractor with
additional work assignments, if necessary.
iii) Invoices should be submitted on a weekly basis.
5) Contractor is required to respond by phone or email to initial requests for graffiti removal by
City within one hour.
6) Contractor must be available for same day response, including after hours, weekends, and
holidays.
7) Contractor is responsible for supplying all materials necessary to perform the services
requested in this scope of work, including, but not limited to: paint, graffiti/adhesive remover
and other cleaning supplies.
S) Contract will utilize appropriate method of covering or removing graffiti considering the
particular surface and conditions such as painting, pressure washing, wet sandblasting
and/or non -corrosive solvent removal (environmentally safe).
9) Where color -matching is specified, all paints used shall match existing colors to the
satisfaction of the City. The Contractor shall receive no additional compensation to repaint in
matching color.
10) Normal working hours shall be between the hours of 7:00 a.m. and 4:30 p.m., Monday
through Thursday and 7:00 a.m. to 3:30 p.m. on Fridays.
11) All correspondence shall be addressed to Utilities Manager, Utilities Department, City of
Newport Beach, 949 West 16' Street, Newport Beach, California 92663.
EXHIBIT B
SCHEDULE OF BILLING RATES
Urban Graffiti Enterprises, Inc. Page B-1 10-10
SCHEDULE OF BILLING RATES
;Monthly Serrnce.Pncng*,:
Cost per Month
All inclusive graffiti
abatement service $8,180.00
*Monthly service pricing rate is for the Services, and includes incidental service beyond the
daily scheduled hours Monday through Friday, and any weekend/holiday emergency graffiti
abatement. Extra Work pricing is for Extra Work, as determined by City in its sole and absolute
discretion, that is extreme and beyond those contemplated by an included in the Monthly
service pricing.
Non EmergencyWeekend"Prta�g*f(Ilndudes semces an both 5atu�day and Sunday]
, a
Cost` P,e� Weekend
All inclusive graffiti
0270.
abatement service $1,270.00
'Extra Work�Pntang*
u t \
Holly Rate3 After Hours iRatelMiitfrurr�\Hours Notecez
Steam Cleaning
$84.00 $120,00 4 4
Sandblasting 4 4
$ 84.00 $120.00
Graffiti Removal $78.00 $108,00 4 4
Sticker Removal $48.00 $60.00 4 4
Other: $78.00 $108.00 4 4
1. After Hours Hate shall be anytime outside of the normal business hours of Monday —Friday, 7:00 am —4:30
pm,
2. Notice is the amount of time the contractor needs to report to the job site after the initial request by the
Manager.
3, Hourly rate shall include allmaterials, tools, insurances, vehicles, transportation, etc. necessary to do the
Work requested in the Scope of Services. For larger projects requiring the use of additional paint, the unit
prices for paint maybe used along with the hourly rate.
Spray Paint (Can] ,
Pain[ (Q'uartj
Palnf(I GdNnnJ
: Palnt'5 Gallonj`
Unit Prices
$10.00
$6.00
$15.00
$60.00
1. After Hours Hate shall be anytime outside of the normal business hours of Monday —Friday, 7:00 am —4:30
pm,
2. Notice is the amount of time the contractor needs to report to the job site after the initial request by the
Manager.
3, Hourly rate shall include allmaterials, tools, insurances, vehicles, transportation, etc. necessary to do the
Work requested in the Scope of Services. For larger projects requiring the use of additional paint, the unit
prices for paint maybe used along with the hourly rate.
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
Urban Graffiti Enterprises, Inc. Page C-1
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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. 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
Urban Graffiti Enterprises, Inc. Page C-2
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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 pari 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.
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