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Home My WebLink About05 - Amendment M/RSA for On-Call Vessel Towing ServicesQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 11, 2023 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Paul Blank, City Harbormaster - 949-270-8159, pblank@newportbeachca.gov PREPARED BY: Melanie Franceschini, Management Analyst, mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Amendment No. Two to On -Call Maintenance/Repair Services Agreement with Pacific Towing, LLC for On -Call Vessel Towing Services /_1 16"t I:7_T91 6 In order to maintain the safety and integrity of Newport Harbor and various public harbor facilities, the Harbor Department seeks approval to enter into Amendment No. Two to the On -Call Maintenance/Repair Services Agreement with Pacific Towing, LLC for On -Call Vessel Towing Services. Staff worked with the Purchasing Division to issue a Request for Proposals (RFP) solicitation in October 2020, which concluded in December 2020. In October 2021, the Harbor Department entered into two separate towing agreements, each with a 3-year term. At this time, given the volume of towing work requested of the contractors and above average severe weather -related needs, the Harbor Department requests the City Council's approval to increase the not -to -exceed (NTE) of the Pacific Towing, LLC agreement to $150,000. RECOMMENDATIONS: 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 to On -Call Maintenance/Repair Services Agreement with Pacific Towing, LLC for On -Call Vessel Towing Services at a not -to -exceed amount of $150,000 through September 30, 2024, and authorize the Mayor and City Clerk to execute the amendment. DISCUSSION: The Harbor Department is responsible for the safety and integrity of Newport Harbor, which includes assisting patrons in need and keeping the waterways clear for the public's use. On October 1, 2021, the Harbor Department entered into an on -call maintenance and repair services agreement with Pacific Towing, LLC for on -call vessel towing services at a not -to -exceed amount of $60,000 through September 30, 2024. 5-1 Amendment No. Two to On -Call Maintenance/Repair Services Agreement with Pacific Towing, LLC for On -Call Vessel Towing Services July 11, 2023 Page 2 Given the inclement, severe and stormy weather conditions Newport Beach has endured in the past six months, the Harbor Department has had to rely more on Pacific Towing, LLC's services to assist harbor users. The contractor has been very proactive and collaborative in assessing the weather conditions and knowing when its services may be necessary. Pacific Towing, LLC has been responsive to requests for services and also assists with non-traditional towing requests, such as removing large debris impacting navigation. These non-traditional towing requests are typically completed in a timelier manner and at a reduced cost, than activating the Harbor Public Works Departments' staff and equipment. The increase in service in 2022 and early 2023 required the Harbor Department in February 2023 to request Amendment No. One with Pacific Towing, LLC for On -Call Vessel Towing Services at a not -to -exceed amount of $75,000, increasing compensation limits by $15,000. The Harbor Department is once again close to reaching the not -to -exceed amount of the existing agreement and is seeking the City Council's approval for Amendment No. Two, which would increase the contract by $75,000, for a not -to -exceed amount of $150,000. The additional, unforeseen workload given recent storms and weather conditions, coupled with Pacific Towing, LLC's high -quality service, responsiveness and cost-effective rates, will provide for continued work with the contractor through the contract's term. The Harbor Department continues to have an on -call agreement with the secondary firm awarded an agreement through RFP 21-20; however, the service levels, responsiveness and costs differ from that of Pacific Towing, LLC, resulting in an on -call agreement that is not frequently utilized. FISCAL IMPACT: The adopted budget includes sufficient funding for this purchase. It will be expensed to the Professional Services account in the Harbor Department, 10045451-811008. 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 On -Call Maintenance/Repair Services Agreement 5-2 ATTACHMENT A AMENDMENT NO. TWO TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH PACIFIC TOWING, LLC FOR ON -CALL VESSEL TOWING SERVICES THIS AMENDMENT NO. TWO TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 11th day of July, 2023 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and PACIFIC TOWING, LLC, a California limited liability company doing business as ("DBA") TOWBOATUS NEWPORT BEACH ("Contractor"), whose address is 1100 South Coast Highway, Suite 206A, Laguna Beach, California 92651, and is made with reference to the following: RECITALS A. On October 1, 2021, City and Contractor entered into a Maintenance/Repair Services Agreement ("Agreement") to perform on -call maintenance and/or repair services for City ("Project"). B. On February 16, 2023, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") to increase the total compensation due to higher volume of services than originally anticipated. C. At the time of entering into the Agreement, Contractor's address on file with the California Secretary of State was 31321 Brooks Street, Laguna Beach, California 92651, but Contractor has since updated its address on file with the California Secretary of State to be 1100 South Coast Highway, Suite 206A, Laguna Beach, California 92651. D. The parties desire to enter into this Amendment No. Two to increase the total compensation due to higher volume of services than originally anticipated, and to update the Notices section of the Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. 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 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 subcontractor fees, shall not exceed One Hundred Fifty Thousand Dollars and 00/100 ($150,000.00), 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." 5-3 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 subcontractor fees, in an amount not to exceed Seventy Five Thousand Dollars and 00/100 ($75,000.000). 2. NOTICES Section 23.3 of the Agreement is amended in its entirety and replaced with the following: 23.3 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: David LaMontagne Pacific Towing, LLC 1100 South Coast Hwy, Suite 206A Laguna Beach, CA 92651 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Contract shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Pacific Towing, LLC DBA TowboatUS Newport Beach Page 2 5.4 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: ',-/2 Z / Z-3 By. ��oc ron C. Harp 6 Zf Z3 City Attorney ATTEST: Date: In Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Noah Blom Mayor CONTRACTOR: Pacific Towing, LLC, a California limited liability company doing business as TOWBOATUS NEWPORT BEACH Date: Bv: David LaMontagne Managing Member [END OF SIGNATURES] Pacific Towing, LLC DBA TowboatUS Newport Beach Page 3 5-5