HomeMy WebLinkAbout11 - Amendment to Services Agreement for the Newport Terrace Landfill Gas Control SystemQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
June 10, 2025
Agenda Item No. 11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst - 949-644-3057
josenbaum@newportbeachca.gov
TITLE: Amendment to Services Agreement with American International
Environmental, Inc. for the Newport Terrace Landfill Gas Control
System
ABSTRACT:
The Utilities Department oversees the operation, maintenance and monitoring of a landfill
gas control system at the closed Newport Terrace Landfill, a former City of Newport Beach
landfill located on 19t" Street. American International Environmental, Inc. (AIE), a City
contractor, provides regular maintenance services. The existing agreement expires in
July, and staff recommends City Council approval of a one-year agreement extension.
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 the Professional Services Agreement with American
International Environmental, Inc. for Newport Terrace Landfill Gas Control System
Operations and Maintenance Services, which extends the contract for one additional
year to June 30, 2026, and increases the contract amount by $75,000, and authorize
the Mayor and City Clerk to execute the Agreement.
DISCUSSION:
The Newport Terrace residential community is located at the northeasterly corner of
19t" Street and Balboa Boulevard, along the City's westerly boundary with Costa Mesa.
The property was acquired by the City and used as a solid waste disposal site (landfill) in
the 1950s and early 1960s. It was sold to a private company in the early 1970s and
developed with residential condominium units on both sides of the former landfill. A gas
collection system was installed as part of the residential project's construction, and
Newport Condominium Association (NCA) was initially responsible for the system's
operation and maintenance.
By October 2004, that responsibility evolved into litigation between the NCA and the City,
which culminated in a Settlement and License Agreement in November 2006. The
agreement established that the City would be responsible for: 1) the design and
construction of an upgraded system, and 2) the ongoing operation and maintenance
(O&M) of the system after construction was completed. The agreement also provided that
the construction and O&M costs would be shared equally between the City and the NCA.
Amendment to Services Agreement with American International Environmental, Inc.
for the Newport Terrace Landfill Gas Control System
June 10, 2025
Page 2
Construction began in September 2007 and was completed in May 2008, with formal
acceptance by the City Council on May 27, 2008. Under the terms of the Settlement and
License Agreement, the NCA is obligated to reimburse the City for 50% of the actual costs
incurred. Reimbursement for ongoing costs occurs on a monthly basis.
Since the Settlement Agreement, the City has utilized contract services to provide routine
monthly operation, maintenance, monitoring services and laboratory analysis services.
AIE also provides routine maintenance repairs to the landfill gas control complex system.
The Utilities Department originally entered into an agreement with AIE in July 2021
following a competitive selection process. AIE and its principal have provided technical
assistance and inspections for the Newport Terrace closed landfill gas control system for
many years, including under a previous contractor. The Utilities Department is pleased
with AIE's satisfactory performance over the course of the first four years of the
agreement. Staff recommends City Council approval to extend the agreement through
June 30, 2026, and to increase the agreement's compensation limit by $75,000.
FISCAL IMPACT:
The proposed new fiscal year 2025-26 budget includes sufficient funding for this
amendment to the agreement. The contract services are expensed to the Environmental
Liability Fund across two accounts: Contract Services account 16003-811008 and
Equipment Maintenance and Repair account 16003-851010. Revenues or
reimbursements for one-half of the costs incurred paid by NCA to the City are posted to
the Environmental Liability Fund revenue account 16001-511090.
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 the Professional Services Agreement with
American International Environmental, Inc.
11-2
ATTACHMENT A
AMENDMENT NO. TWO TO
PROFESSIONAL SERVICES AGREEMENT
WITH AMERICAN INTERNATIONAL ENVIRONMENTAL, INC. FOR
NEWPORT TERRACE LANDFILL GAS CONTROL SYSTEM OPERATIONS AND
MAINTENANCE SERVICES
THIS AMENDMENT NO. TWO TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. Two") is made and entered into as of this 10th day of June, 2025
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and AMERICAN INTERNATIONAL
ENVIRONMENTAL, INC., a California corporation ("Consultant"), whose address is 3301
East Miraloma Avenue, Suite 191, Anaheim, California 92806, and is made with reference
to the following:
RECITALS
A. On July 13, 2021, City and Consultant entered into a Professional Services
Agreement (Contract No. C-8734-1) ("Agreement") to engage Consultant to
provide environmental engineering services for the operations and maintenance
of Newport Terrace Landfill Gas Control System ("Project").
B. On June 25, 2024, City and Consultant entered into Amendment No. One to the
Agreement ("Amendment No. One") to extend the term of the Agreement to June
30, 2025, to increase the total compensation, and to update Section 25.3 of the
Notices section.
C. The parties desire to enter into this Amendment No. Two to extend the term of the
Agreement to June 30, 2026, 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 June 30, 2026, 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 Six Hundred Sixty Eight
Thousand Dollars and 001100 ($668,000.00), 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."
American International Environmental, Inc. Page
11-3
The total amended compensation reflects Consultant'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
Seventy Five Thousand Dollars and 00/100 ($75,000.00).
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]
American International Environmental, inc. Page 2 11-4
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:
By:
A n C. Harp
City Attorneyti�
ATTEST:
Date:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Joe Stapleton
Mayor
CONSULTANT: AMERICAN
INTERNATIONAL ENVIRONMENTAL,
INC., a California corporation
Date:
By:
Kambiz Jozitehrani
Chief Executive Officer
Date:
By:
Shery Vosoughkia
Chief Financial Officer
[END OF SIGNATURES]
American International Environmental, Inc. Page 3 11-5