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HomeMy WebLinkAbout09 - Amendment No. Three to On -Call M/RSA with Erosion Control Applications, IncQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report May 11, 2021 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Steffen Catron, Field Superintendent II, scatron@newportbeachca.gov PHONE: 949-644-3011 TITLE: Amendment No. Three to On -Call Maintenance and Repair Services Agreements with Erosion Control Applications, Inc. ABSTRACT: The City of Newport Beach's (City's) Big Canyon Water Reservoir is one of the largest potable water reservoirs in the county. Years ago, a floating cover was placed on the reservoir to better protect the water quality and reduce evaporation. Utilities Department staff performs routine maintenance on the cover and contracts with a specialized service provider for specialty repairs. Staff is recommending a contract amendment with the City's existing vendor, Erosion Control Applications, Inc., increasing the agreement limits by $140,000 and extending the term to December 31, 2022. 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. Three to the On -Call Maintenance and Repair Services Agreement with Erosion Control Applications, Inc., increasing the contract compensation limit by $140,000 and extending the term to December 31, 2022. DISCUSSION: Big Canyon Water Reservoir was constructed in 1959 and is one of three potable reservoirs operated by the City. Big Canyon is the largest potable (drinkable water) reservoir in the county and provides Newport Beach with approximately 30 days of emergency water supply. In 2005, a floating cover was installed to keep contaminates and pollutants from entering the water reservoir. Unfortunately, that cover rapidly deteriorated and was replaced through a warranty settlement. In 2014, a new chlorosulfonated polyethylene (CSPE) cover was installed. With regular maintenance and repairs, this cover is estimated to have a 20 to 25 -year lifespan. 9-1 Amendment No. Three to On -Call Maintenance and Repair Services Agreements with Erosion Control Applications, Inc. May 11, 2021 Page 2 The Utilities Department's licensed staff performs routine and regular inspections, maintenance, and repairs on the floating cover. The floating cover was built with the ability to expand and contract as water levels change in the reservoir. These expansion points require frequent maintenance and account for most of the wear and tear on the cover. Department staff has the tools and abilities to make minor repairs. However, a specialty service contractor with the appropriate certifications, experience and tools is required to make many of the annual repairs. The City has been working with specialty contractor, Erosion Control Applications, Inc. (ECA), exclusively since 2017. A $75,000 on-call maintenance and repair agreement with ECA was executed on December 31, 2017. This was executed as a single source contract because of ECA's extensive knowledge of the City's floating cover, its capabilities to make repairs to this type of cover, and ECA's ability to quickly respond because of their proximity to Newport Beach. On May 23, 2019, the City Manager executed Amendment No. One, which increased the contract by $45,000, under the authorization provided through City Council Policy F-14. On December 19, 2019, the City executed Amendment No. Two to extend the term of the contract from December 31, 2019 to July 1, 2021. As part of the City's routine inspections, staff noted additional repairs are needed this summer and next winter to best maintain the life of cover. This will include the temporary shutdown of the reservoir next winter. This is the result of normal wear of the cover, but outside of City staff's capabilities because this type of repair requires special equipment and processes. ECA is prepared to make these repairs. Staff believes that amending the single source agreement with ECA is the safest, timeliest, and most cost-effective method to complete future work and staff is therefore seeking a third amendment. Amendment No. Three would cover the cost of necessary repairs over the next 18 months. The term would be extended to December 31, 2022. The Amendment (see Attachment) would increase the contract limit by $140,000, bringing the total contract limit to $260,000. With this extension, ECA will also maintain its original rates for the five-year period. FISCAL IMPACT: The adopted budget includes sufficient funding anticipated for this agreement. Funds for this contract are programmed annually into numerous water maintenance and repair accounts, within the Water Enterprise Fund, account No. 7019052. 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. 9-2 Amendment No. Three to On -Call Maintenance and Repair Services Agreements with Erosion Control Applications, Inc. May 11, 2021 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. Three to On -Call Maintenance/Repair Services Agreement with Erosion Control Applications, Inc. for Big Canyon Reservoir Floating Cover Repairs 9-3 ATTACHMENT A AMENDMENT NO. THREE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH EROSION CONTROL APPLICATIONS, INC. FOR BIG CANYON RESERVOIR FLOATING COVER REPAIRS THIS AMENDMENT NO. THREE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Three") is made and entered into as of this 11th day of May, 2021 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and EROSION CONTROL APPLICATIONS, INC., a California corporation ("Contractor"), whose address is 901 E. Orangethorpe Avenue, Anaheim, California 92801, and is made with reference to the following: RECITALS A. On December 31, 2017, City and Contractor entered into an On -Call Maintenance/Repair Services Agreement ("Agreement') to engage Contractor to perform on-call maintenance and/or repair services for City ("Project'). B. On May 23, 2019, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") due to a higher volume of Work than was original anticipated. The parties entered into Amendment No. One to reflect the additional Services or Work not anticipated in the Agreement, and to increase the total compensation. C. On December 10, 2019, City and Contractor entered into Amendment No. Two to the Agreement ("Amendment No. Two") to extend the term of the Agreement to July 1, 2021, amend the Administration, Conflicts of Interest, Notices and Claims sections. D. The parties desire to enter into this Amendment No. Three to reflect additional Services not included in the Agreement, as amended, to extend the term of the Agreement to December 31, 2022, increase the total compensation, and update Insurance requirements. 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, 2022, unless terminated earlier as set forth herein." 2. COMPENSATION TO CONTRACTOR 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 Letter Proposal 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 Two Hundred Sixty Thousand Dollars and 001100 ($260,000.00), without prior written amendment to the Agreement." The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment No. Three, including all reimbursable items and subconsultant fees, in an amount not to exceed One Hundred Forty Thousand Dollars and 001100 ($140,000.00). 3. INSURANCE Exhibit C of the Agreement shall be deleted in its entirety and replaced with Exhibit C, attached hereto and incorporated herein by reference. Any reference to Exhibit C in the Agreement shall hereafter refer to Exhibit C attached hereto. 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] Erosion Control Applications, Inc. Page 2 9-5 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 4/! slzozi By: L lv Aaron C. Harp 3\ City Attorney r $,_ ATTEST: Date: IM CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Brad Avery Mayor CONTRACTOR: APPLICATIONS, corporation Date: Bv: EROSION CONTROL INC., a California Leiiani I. Brown Nicolas Gonzalez City Clerk Chief Executive Officer Date: By: Christopher Fore Treasurer [END OF SIGNATURES] Attachments: Exhibit C — Insurance Requirements Erosion Control Applications, Inc. Page 3 9-6 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 vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. Erosion Control Applications, Inc. Page C-1 9_7 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation.t 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 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. Erosion Control Applications, Inc. Page C-2 9.8 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. 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. Erosion Control Applications, Inc. Page C-3 9-9 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. Erosion Control Applications, Inc. Page C-4 9-10