HomeMy WebLinkAbout11 - Amendment No. Two to Agreement for Beach Container Refuse Collection ServiceQ �EwPpRT
CITY OF
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z NEWPORT BEACH
<,FORN'P City Council Staff Report
October 13, 2020
Agenda Item No. 11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Micah Martin, Deputy Director of Public Works,
MMartin@newportbeachca.gov
PHONE: 949-644-3055
TITLE: Amendment No. Two to Agreement for Beach Container Refuse
Collection Service with Rainbow Disposal Co., Inc.
ABSTRACT:
The City utilizes a contractor to collect refuse from designated bins located on City
beaches on a regularly scheduled basis. The current contract with Rainbow Disposal
Co., Inc. for this service was approved in January 2011 and expires on December 31,
2020. Staff is requesting an amendment to the current agreement with Rainbow Disposal
Co., Inc. (Rainbow) to extend the term by two years to December 31, 2022 while holding
the current billing rates with CPI adjustment only. This amendment will also require an
increase to the not -to -exceed cost amount in order to provide for these additional years
of services.
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;
b) Approve Amendment No. Two to Agreement with Rainbow Disposal Co., Inc. for
Beach Container Refuse Collection Service to modify the compensation terms to
increase the total not -to -exceed amount by $400,000.00 for a total not -to -exceed
amount of $1,897,624.30, and extend the contract to December 31, 2022; and
c) Authorize the Mayor and City Clerk to execute the amendment.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this purchase. It will be
expensed to the Refuse Beach Trashcan Collection account in the Public Works
Department, 0108051-811031.
Amendment No. Two to Agreement for Beach Container Refuse Collection Service
with Rainbow Disposal Co., Inc.
October 13, 2020
Page 2
DISCUSSION:
In order to keep the City beaches clean and safe, Rainbow currently provides trash
collection and disposal services for 168 trash carts on City beaches from the Santa Ana
River Jetty in West Newport to Corona del Mar State Beach with collection scheduled two
times per week in the winter and five times per week in the summer. During the summer
months, additional carts are placed on the sand at Corona del Mar State Beach, and at
the Newport Pier due to the high number of visitors and concentrated amount of trash.
This has helped decrease excessive litter and overflowing trash receptacles on the
beaches and surrounding areas.
During certain years, our beaches receive increased summer crowds and/or warm
weather arrives early or extends later into fall months. To address these changes in
conditions staff will occasionally need to add refuse carts and/or increase collections in
order to keep the beaches free of litter and debris. This year, due to the COVID-19
Pandemic and an unseasonably early -to -long summer, staff has seen a large increase in
refuse in our beach areas as a result of a high number of visitors and stay -home residents.
By increasing Rainbow to a seven day a week schedule and adding more of their large
beach carts, as well as supplementing trash pickup and collection service with City staff,
we were just able to keep up with the daily amount of refuse generated.
As such, in addition to the $185,000 per year necessary to provide their base level of
service, the not -to -exceed contract amount also includes an additional $15,000 per year
to accommodate a modest level of increased services as needed. Staff recommends City
Council approve Amendment No. Two for the Rainbow Beach Container Refuse
Collection contract and increase the total not -to -exceed amount by $400,000, placing the
new contract total at $1,897,624.30, and extending the term by two years to December
31, 2022. It should also be noted that the contracted billing rates are remaining the same
and include an annual adjustment factor of CPI or 3%, whichever is less. As part of the
City Council Working Group on Solid Waste and Recycling issues, staff has been tasked
with consolidating various refuse contracts to improve efficiency and management, where
feasible. By extending the agreement with Rainbow, staff will be able to continue to study
the feasibility of merging this service with another existing contract or make the decision
to go back out to RFP.
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.
11-2
Amendment No. Two to Agreement for Beach Container Refuse Collection Service
with Rainbow Disposal Co., Inc.
October 13, 2020
Page 3
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 Agreement with Rainbow Disposal Co., Inc.
11-3
ATTACHMENT A
AMENDMENT NO. TWO TO
AGREEMENT FOR BEACH CONTAINER REFUSE COLLECTION SERVICE
WITH RAINBOW DISPOSAL CO., INC.
THIS AMENDMENT NO. TWO TO BEACH CONTAINER REFUSE COLLECTION
SERVICE CONTRACT ("Amendment No. Two") is made and entered into as of this 13th
day of October, 2020 ("Effective Date"), by and between the CITY OF NEWPORT
BEACH, a California municipal corporation and charter city ("City"), and RAINBOW
DISPOSAL, CO., INC., a California corporation ("Contractor"), whose address is 17121
Nichols Lane, Huntington Beach, CA 92647, and is made with reference to the following:
RECITALS
A. On January 11, 2011, City and Contractor entered into an Agreement for Beach
Container Refuse Collection Service ("Agreement") for refuse collection, disposal
and maintenance services for beach containers on a regular basis ("Project").
B. On August 13, 2019, City and Contractor entered into Amendment No. One to the
Agreement ("Amendment No. One") to increase the total compensation based
upon an unanticipated increase in the volume of services, to amend the
Administration and Notices sections of the Agreement, and to add sections related
to No Attorneys Fees and Counterparts.
C. The parties desire to enter into this Amendment No. Two to increase the total
compensation based upon an unanticipated increase in the volume of services, to
update Exhibit B, extend the term of the Agreement to December 31, 2022, amend
Hold Harmless section, and update Insurance requirements.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows -
1 .
ollows: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, 2022, unless terminated earlier as set forth herein."
2. COMPENSATION TO CONTRACTOR
Exhibit B to the Agreement shall be supplemented to include the Schedule of
Billing Rates, attached hereto as Exhibit B and incorporated herein by reference
("Services" or "Work"). Exhibit B to the Agreement, Exhibit B to Amendment No. One and
Exhibit B to this Amendment No. Two shall collectively be known as "Exhibit B."
Section 4 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Contractor for the Services on a not -to -exceed basis in
accordance with the provisions of this Section and the billing Rates attached hereto as
Exhibit B and incorporated herein by reference. Contractor's compensation for all
11-4
Services performed in accordance with this Agreement, including all reimbursable items,
shall not exceed One Million Eight Hundred Ninety Seven Thousand Six Hundred
Twenty Four Dollars and 30/100 ($1,897,624.30) without prior written amendment to
the Agreement. Contractor shall submit all invoices for scheduled collection services and
refuse container replacement to City on a monthly basis. City shall pay invoices with thirty
(30) days after receipt and approval by the City. Payment shall be deemed made when
deposited in the United States mail, first class postage pre -paid, and addressed to
Contractor as specified in Section 19 entitle 'Notices'."
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 Four
Hundred Thousand Dollars and 00/100 ($400,000.00).
3. HOLD HARMLESS/RESPONSIBILITY FOR DAMAGES OR INJURY
Section 7 of the Agreement is amended in its entirety and replaced with the following
7.1 City and all officers, employees and representatives thereof and all persons
and entities owning or otherwise in legal control of the property upon which Contractor
performs the Project and/or Services 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 property from any cause arising from
the performance of the Project and/or Services by Contractor, or its subcontractors, or its
workers, or anyone employed by either of them.
7.2 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 and/or Services, or the
Work of any subcontractor or supplier selected by Contractor.
7.3 To the fullest extent permitted by law, Contractor shall indemnify, defend and
hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers, employees, and any person or entity owning or otherwise in legal control of
the property upon which Contractor performs the Project and/or Services contemplated
by this Agreement (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,
Rainbow Disposal Co., Inc. Page 2
11-5
subcontractors, anyone employed directly or indirectly by any of them or for whose acts
they may be liable or any or all of them).
7.4 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.
7.5 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.
7.6 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.
7.7 The rights and obligations set forth in this Section shall survive the termination
of this Agreement."
4. INSURANCE
Section 8 of the Agreement is hereby amended in its entirety and replaced with:
"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 E, 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]
Rainbow Disposal Co., Inc. Page 3
11-6
IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 4% ?o,I 2oT.,o
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:lg,-. "A, ; - By:
Aaron C. Harp Will O'Neill
City Attorney 0.9 Mayor
P
ATTEST:
Date:
Leilani I. Brown
City Clerk
Attachments
CONTRACTOR: RAINBOW DISPOSAL
CO., INC., a California corporation
Date:
By:
Chris Kentopp
General Manager
[END OF SIGNATURES]
Exhibit B — Schedule of Billing Rates
Exhibit E — Insurance Requirements
Rainbow Disposal Co., Inc. Page 4
11-7
EXHIBIT B
SCHEDULE OF BILLING RATES
Rainbow Disposal Co., Inc. Page B-1 11-8
Exhibit B
Billing Rates
Amendment No. Two — Beach Container Refuse Collection Services
TIP RATE
$6.54
CART CLEANOUT RATE
$16.71
11-9
EXHIBIT E
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, employees, and
any person or entity owning or otherwise in legal control of the property
upon which Contractor performs the Project and/or Services
contemplated by this Agreement.
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 two million dollars
($2,000,000) per occurrence, four million dollars ($4,000,000) 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).
Rainbow Disposal Company, Inc., a Republic Services Company Page E-1 11-10
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 vehicles, in an amount not less than ten million dollars
($10,000,000) combined single limit each accident.
D. Pollution Liability Insurance. If required, Contractor shall maintain a
policy providing contractor's pollution liability ("CPL") coverage with a
total limit of liability of no less than five million dollars ($5,000,000) per
loss and ten million dollars ($10,000,000) in the aggregate per policy
period. Claims -made policies require a 5 -year extended reporting
period. The CPL policy shall include coverage for cleanup costs, third -
party bodily injury and property damage, including loss of use of
damaged property or of property that has not been physically injured or
destroyed, resulting from pollution conditions caused by contracting
operations. Coverage as required in this paragraph shall apply to
sudden and non -sudden pollution conditions resulting from the escape
or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals,
liquids, or gases, waste materials, or other irritants, contaminants, or
pollutants. The CPL shall also provide coverage for transportation and
off -Site disposal of materials. The policy shall not contain any provision
or exclusion (including any so-called "insured versus insured" exclusion
or "cross -liability" exclusion) the effect of which would be to prevent, bar,
or otherwise preclude any insured or additional insured under the policy
from making a claim which would otherwise be covered by such policy
on the grounds that the claim is brought by an insured or additional
insured against an insured or additional insured under the policy.
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, employees, and any person or entity owning or otherwise in
legal control of the property upon which Contractor performs the Project
and/or Services contemplated by this Agreement 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
Rainbow Disposal Company, Inc., a Republic Services Company Page E-2 11-11
provide that City, its City Council, boards and commissions, officers,
agents, volunteers, employees, and any person or entity owning or
otherwise in legal control of the property upon which Contractor
performs the Project and/or Services contemplated by this Agreement
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 Aqreements 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 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
Rainbow Disposal Company, Inc., a Republic Services Company Page E-3 11-12
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.
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
Rainbow Disposal Company, Inc., a Republic Services Company Page E-4 11-13
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.
Rainbow Disposal Company, Inc., a Republic Services Company Page E-5 11-14