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HomeMy WebLinkAbout13 - Approve Amendment to Agreement for Restaurant Grease Control Device Inspection ServicesQ �EwPpRT O c — '9 CITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: February 25, 2020 Agenda Item No. 13 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov Joshua Rosenbaum, Senior Management Analyst, jrosenbaum@newportbeachca.gov 949-644-3057 TITLE: Approve Amendment No.1 to Agreement for Restaurant Grease Control Device Inspection Services with Environmental Compliance Inspection Services ABSTRACT: The Utilities Department is responsible for the regular permitting, monitoring and inspection of grease control devices and grease best management practices for restaurants located within the City's sewer service area. These responsibilities, which are a part of the City's Sewer System Management Plan and Municipal Code Chapter 14.30, are in place to minimize sanitary sewer overflows throughout the City. Following a competitive proposal process, the Utilities Department is requesting a five-year agreement with Jon Kinley dba Environmental Compliance Inspection Services for this service. 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.1 to the Agreement with Jon Kinley DBA Environmental Compliance Inspection Services for the grease control device inspection program for a total not -to -exceed compensation amount of $450,000 and for a five-year total term, and authorize the Mayor and City Clerk to execute the agreement. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for this Agreement. The costs for services under the Agreement will be expensed to the Wastewater Enterprise Fund program account in the Utilities Department, 7119061-851036. 13-1 Approve Amendment No.1 to Agreement for Restaurant Grease Control Device Inspection Services with Environmental Compliance Inspection Services February 25, 2020 Page 2 DISCUSSION: The State Water Resources Control Board requires every wastewater agency to adopt a Sewer System Management Plan (SSMP). The plan is an overview of the City procedures, protocols, and best management practices that minimize sewer spills and overflows. The City's SSMP was recently updated and adopted on November 19, 2019. One important component of the SSMP is the City's program to manage Fats, Oils, and Grease (also known as "FOG") generated from approximately four hundred food service establishments ("restaurants"). The SSMP coupled with Municipal Code 14.30 charge the Utilities Department with the regular permitting, monitoring, and inspection of grease control devices and grease best management practices in restaurants. The program is administered using a combination of City staff and contract forces to manage the program. Staff manages the overall program, the permitting system, and emergency response. A specialized environmental contractor is used to regularly visit the restaurants, to teach grease best management practices, to inspect documentation, to inspect grease control devices and to follow up with any non-compliance issues that are noted. The overall goal of the program is to eliminate or reduce sewer overflows and spills from the restaurants themselves or from the City's system. There is no fee to the business for this service. In January 2019, the City issued a formal Request for Proposals (RFP19-35) for Grease Control Device Inspection services and received two proposals. One from Jon Kinley dba Environmental Compliance Inspection Services (ECIS) and the other from Lynn Merrill & Associates. A review panel evaluated each of the two proposals to assess their technical qualifications and each firm exceeded the 70% threshold. EVALUATION SCORING ENVIRONMENTAL COMPLIANCE INSPECTION SERVICES LYNN MERRILL & ASSOCIATES, INC. TECHNICAL SCORE (OUT OF 60): 54 48 COST RATIO SCORE (OUT OF 40): 16.71 (Annual Cost Est.- $87,915) 40.00 ((Annual Cost Est -$36,720) AGGREGATE SCORE (OUT OF 100): 70.71 88 As the table shows, Lynn Merrill's proposed annual estimated costs were much lower than Jon Kinley dba ECIS. Utilities staff were concerned that the very low cost would not equate to the amount of time required to provide the high level of customer service education and inspection of restaurant grease traps, their records, and kitchen practices. To mitigate this concern, staff recommended contracting with both providers, giving each provider one-half of the City's food service establishments for a one-year trial period. In November of 2019, the City entered into a 1 -year agreement with Jon Kinley dba ECIS. Unfortunately, Lynn Merrill declined to enter into an agreement. 13-2 Approve Amendment No.1 to Agreement for Restaurant Grease Control Device Inspection Services with Environmental Compliance Inspection Services February 25, 2020 Page 3 The Utilities Department requests approval to amend the current 1 -year agreement with ECIS, for a total not -to -exceed contract amount of $450,000 and for an additional four years for a total five-year term. Annually, the scope of work includes approximately 475 kitchen inspections, over 1,000 inspections of grease traps and all the necessary follow-ups and re -inspections. ECIS has satisfactorily performed the grease control device inspection services as the incumbent contractor since 2011. ECIS has built a positive, personalized working relationship with the restaurant community and their efforts have reduced sewer overflows. ECIS comes highly recommended and brings experience from other sewer agencies, making their insight and expertise valuable to the City. 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. 1 to Agreement with Jon Kinley dba ECIS 13-3 ATTACHMENT A AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT WITH JON KINLEY DBA ENVIRONMENTAL COMPLIANCE INSPECTION SERVICES FOR GREASE CONTROL DEVICE INSPECTION SERVICES THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 25th day of February, 2020 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and JON KINLEY a sole proprietor doing business as ("DBA") ENVIRONMENTAL COMPLIANCE INSPECTION SERVICES, ("Consultant"), whose address is 33322 Marina Vista Drive, Dana Point, California 92629, and is made with reference to the following: RECITALS A, On November 15, 2019, City and Consultant entered into a Professional Services Agreement ("Agreement") for grease control device inspection services ("Project"). B. The parties desire to enter into this Amendment No. One to extend the term of the Agreement to November 14, 2024 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 November 14, 2024, unless terminated earlier as set forth herein." 2. 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 Four Hundred Fifty Thousand Dollars and 001100 ($450,000.00), 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 Three Hundred Seventy Five Thousand Dollars and 001100 ($375,000.00). 13-4 3. 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] Jon Kinley DBA Environmental Compliance Inspection Services Page 2 13-5 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: CITY OF NEWPORT BEACH, a California municipal corporation Date: By: By: Aaron C. Harp Pw Ll -,10 Will O'Neill City Attorney Mayor ATTEST: Date: By: Leilani I. Brown City Clerk CONSULTANT: Jon Kinley DBA Environmental Compliance Inspection Services, a sole proprietor doing business as ("DBA") Date: [END OF SIGNATURES] Jon Kinley DBA Environmental Compliance Inspection Services Page 3 13-6