HomeMy WebLinkAbout10 - Marina Management Services - Amendment to AgreementTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
October 24, 2017
Agenda Item No. 10
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Raymund Reyes, Acting Administrative Analyst
rreyes newportbeachca.gov
PHONE: 949-644-3325
TITLE: Marina Management Services — Amendment to Agreement with
Basin Marine and Budget Amendment
ABSTRACT:
Marina Park features a visitor friendly marina with 23 public boat slips with full amenities.
In 2015, the City entered into Professional Services Agreement with Basin Marine, Inc. to
operate the marina at Marina Park through October 31, 2017. Staff recommends
approval of Amendment No. 1 to the Professional Services Agreement with Basin Marine,
Inc. to extend the term and contract value to continue marina management services at
Marina Park through December 2018 or until such services might be incorporated into the
new Harbor Operations Division.
RECOMMENDATION:
a) Determine that the action is exempt from 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
because it will not result in a physical change to the environment, directly or indirectly;
b) Approve Budget Amendment No. 18BA-009 appropriating $137,700 from the
Tidelands Fund unappropriated fund balance to Account 1008014-811044 for Marina
Management Services at Marina Park for the balance of FY 2017-18; and
c) Approve Amendment No. 1 to the Professional Services Agreement with Basin
Marine, Inc. to extend the term to December 31, 2018, and increase compensation by
$214,200, for a total contract value of $581,400, for Marina Management Services at
Marina Park.
10-1
Marina Management Services — Amendment to Agreement
with Basin Marine and Budget Amendment
October 24, 2017
Page 2
FUNDING REQUIREMENTS:
The Budget Amendment records and appropriates $137,700 in increased expenditure
appropriations from Tidelands Fund unappropriated fund balance to Account
No. 1008014-811044 for Marina Management Services at Marina Park.
DISCUSSION:
With the introduction of visitor slips at Marina Park in 2015, a formal maintenance and
management program (including contract staffing) was implemented through an
agreement with Basin Marine, Inc. Basin Marine provides customer and concierge
services, reservations, insurance verification, light maintenance, daily inspections of
marina and visitor facilities, operation of sanitary sewage pumpout, and general safety.
The current budget for Harbor Operations includes funding for Basin Marine to provide
marina management at Marina Park for three months only during FY 2017-18. With the
transition of mooring related and on -water harbor operations from the County of Orange
to the City on July 1, 2017, a number of line items within the Harbor Resources budget
were moved into a new budget division for Harbor Operations. This new operating budget
was based on preliminary assumptions of how the new Division might function and
anticipated marina management would possibly move from contract services to oversight
by City staff within the Harbor Operations Division.
Presently, staff is reviewing the current and futures needs of Harbor Operations and
expects to present its findings to the City Council later this year. Since the current
agreement expires October 31, staff recommends approval of the contract amendment
to provide services through December, 2018. This should allow the City ample time to
determine best service format for this program. Basin Marine has agreed to extend its
contract through December 2018 for the same monthly fee of $15,300. The agreement
is summarized as follows:
Description
FY 15-16
FY16-17
FY17-18
FY18-19
Total
Contract
Months Per Fiscal Year
8
12
4
Original Agreement
$122,400
$183,600
$61,200
$367,200
Months Per Fiscal Year
8
6
Amendment 1
$122,400
$91,800
$214,200
Total Agreement as
Amended (Proposed)
$122,400
$183,600
$183,600
$91,800
$581,400
10-2
Marina Management Services — Amendment to Agreement
with Basin Marine and Budget Amendment
October 24, 2017
Page 3
Marina Park offers visitors a stay up to 30 days. Unlike other moorings and anchorage
options in Newport Harbor, Marina Park offers full amenities for slip tenants: Wi-Fi,
laundry, showers and restroom, water and electrical, sanitary sewer pumpouts, on-site
restaurant, and parking. Revenue from slip rentals at Marina Park offset management
costs, has steadily been increasing, and will soon achieve full cost recovery.
Tidelands Revenue
FY2016
Actual
FY2017
Actual
FY2018
Projected
Marina Park Slips
$45,274
$133,461
$150,000
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).
ATTACHMENTS:
Attachment A — Budget Amendment
Attachment B — Amendment No. 1 to Professional Services Agreement
10-3
City of Newport Beach
BUDGET AMENDMENT
2017-18
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
_ Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
if from unappropriated fund balance
EXPLANATION:
ATTACHMENT A
NO. BA- 18BA-009
AMOUNT -,r $137.700.00 1
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from Tidelands Fund unappropriated fund balance for the Basin Marine contract
to perform marina management services at Marina Park.
ACCOUNTING ENTRY:
Increase in Budgetary Fund Balance
7(
Decrease in Budgetary Fund Balance
Fund
No effect on Budgetary Fund Balance
ONE-TIME?
300000
Ld
Yes
C.
W)
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from Tidelands Fund unappropriated fund balance for the Basin Marine contract
to perform marina management services at Marina Park.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund
Object
100
300000
REVENUE ESTIMATES
C.
EXPENDITURE APPROPRIATIONS
Amount
Description Debit
Tidelands Fund - Fund Balance $137,700.00
Descri
Description
Org/Object 1008014-811044 Harbor Operations - Marina Park Marine Mgmt
Org/Object
Org/Object
Org/Object
Signed:
Financ
Signed:
Ad
Signed
Approval: Finance Dir-ttor
native Approval: City Man er
City Council Approval: City Clerk
" Automatic
Credit
$137,700.00
1'- 12 -
Date
l o X -
Date
Date
10-4
ATTACHMENT B
AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT
WITH BASIN MARINE, INC. FOR
MARINA MANAGEMENT AT MARINA PARK
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 24th day of October, 2017
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and BASIN MARINE, INC., a California
corporation ("Consultant"), whose address is 829 Harbor Island Drive, Suite A, Newport
Beach, California 92660, and is made with reference to the following:
RECITALS
A. On October 27, 2015, City and Consultant entered into a Professional Services
Agreement ("Agreement") to engage Consultant for marina management services
for Marina Park ("Project").
B. The parties desire to enter into this Amendment No. One to reflect additional
Services not included in the Agreement, to extend the term of the Agreement to
December 31, 2018, and to increase the total compensation.
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 December 31, 2018, unless terminated earlier as set forth herein."
2. SERVICES TO BE PERFORMED
The Section entitled, "Staffing" on Exhibit A to the Agreement is amended in its
entirety and replaced with the following:
"STAFFING
• Provide sufficient and qualified staff to provide top-notch customer
service both in the marina environment and in the office.
• City expects marina staff to be flexible between performing both
office work and work in the marina environment.
• Personnel will be trained to be able to accept reservations, accept
credit cards, obtain necessary documentation as well as perform dock
duties.
10-5
• Regular staffing should be at least one person per day with the option
for additional persons.
• Two (2) dock persons shall cover the seven (7) days per week during
office hours and overtime as required.
• Clerical personnel shall also be required to maintain records.
• Marina Park slips are open and available to the public seven (7) days
a week.
• Service during office hours with flexibility for peak season, holidays,
etc. Eight (8) hours per day, seven (7) days per week during regular office
hours (8:00 a.m. — 5:00 p.m.) with flexibility for peak season, holidays, etc.
Minimum thirty (30) minute lunch (scheduling to be based on office staffing
levels and appropriate coverage) and two (2) 10-15 minute breaks during
morning/evening hours.
• Twenty-four (24)/ seven (7) service is not required."
Further, Exhibit A to the Agreement shall be supplemented to include the Scope
of Services, attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Exhibit A to the Agreement and Exhibit A to this Amendment No. One shall
collectively be known as "Exhibit A." The City may elect to delete certain Services within
the Scope of Services at its sole discretion.
3. COMPENSATION TO CONSULTANT
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant 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. Consultant's
compensation for all Work performed in accordance with this Agreement, including all
reimbursable items and subconsultant fees, shall not exceed Five Hundred Eighty One
Thousand Four Hundred Dollars and 00/100 ($581,400.00), 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 Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed Two
Hundred Fourteen Thousand Two Hundred Dollars and 00/100 ($214,200.00).
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Basin Marine, Inc. Page 2
10-6
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: j�/la/17
By.
Aaron C. Harp kkw^ 101"Ir"
City Attorney
ATTEST:
Date:
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Kevin Muldoon
Mayor
CONSULTANT: Basin Marine, Inc., a
California corporation
Date:
By: By:
Leilani I. Brown David L. New
City Clerk President
Date:
By:
Derek J. New
Secretary/Treasurer/Vice President
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Basin Marine, Inc. Page 3
10-7
EXHIBIT A
SCOPE OF SERVICES
Consultant's additional Services in accordance with this Amendment No. One shall
include, but are not limited to, the following, under the Section entitled
"ADMINISTRATION":
All Dock Personnel
• Respond to public inquiries regarding available Marina Park Rental moorings,
vacant moorings, etc.
• Process sub -permits and payments (credit card, cash, check) for rental moorings,
including validation of registration and insurance according to City policies.
• Utilize City -provided software and data for billing, record keeping, records, etc. of
mooring rentals.
• In addition to credit card payments, process cash, check payments for Marina Park
slips.
• Direct questions concerning mooring administration (including but not limited to,
mooring transfers, code compliance, general inquiries, etc.) and requests as
related to non -emergency harbor operations to appropriate Harbor Operations
staff.
• Direct all emergency calls to the Orange County Sheriffs Department and/or the
Newport Beach Police Department as necessary.
Basin Marine, Inc. Page A-1 10-8