HomeMy WebLinkAbout05 - Amendment to On-Call M/RSA for Rescue Boat Haul Out ServicesQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
February 24, 2026
Agenda Item No.5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jeff Boyles, Fire Chief - 949-644-3101, jboyies@nbfd.net
PREPARED BY: Lili Banuelos, Assistant Management Analyst - 949-644-3360,
Banuelos@nbfd.net
Kyle Brodowski, Fleet and Facilities Superintendent - 949-718-
3464, kbrodowski@newportbeachca.gov
TITLE: Amendment No. One to On -Call Maintenance/Repair Services
Agreement with South Coast Shipyard, Inc. for Rescue Boat Haul
Out Services
ABSTRACT:
The City of Newport Beach owns a fleet of three lifeguard rescue vessels (rescue boats)
that are used to conduct marine rescue and patrol operations. Maintenance of the rescue
boats is overseen by the Newport Beach Fire Department's Lifeguard Division and the
Municipal Operations Department's Fleet Division. The City's current contractor for
rescue boat on -call haul out and maintenance services, South Coast Shipyard, Inc., was
previously selected via a competitive bid process. Staff is requesting City Council
approval to extend the term and increase the not -to -exceed amount of the agreement by
an additional $150,000 for a new contract not -to -exceed amount of $270,000
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. One to On -Call Maintenance/Repair Services Agreement
with South Coast Shipyard, Inc. for Rescue Boat Haul Out Services (Contract No.
9428-1) to extend the term to June 30, 2028, and to increase the contract amount by
$150,000, for a total not -to -exceed amount of $270,000, and authorize the Mayor and
City Clerk to execute the Amendment.
DISCUSSION:
The Newport Beach Fire Department, through its Lifeguard Operations Division, operates
three 29.5-foot, solid fiberglass hulled, twin -engine rescue boats manufactured by the
Crystaliner Corporation. These boats are used to conduct marine rescue and patrol
operations along the City's coastline, and are crucial resources in incidents involving
Amendment No. One to On -Call Maintenance/Repair Services Agreement with South
Coast Shipyard, Inc. for Rescue Boat Haul Out Services
February 24, 2026
Page 2
missing swimmers, vessels in distress, mass rescues, recovery efforts, dive team
operations, and any other incident requiring a swift response in the ocean environment.
Large emergency boats have an expected replacement of 25 years per City Council
Policy F-9. The existing hull design has proven to be incredibly durable; consistent
maintenance and haul -out services, combined with engine maintenance performed by
Municipal Operations Department mechanics, have extended the boats' lifespans. Haul
out services require that the vessel be removed from water to undergo various safety
checks, including, but not limited to: examination of the vessel's bottom paint and hull
condition, a review of the rudder, driveshaft and various seals, cleaning/polishing of
props, shafts, and anode studs, and removal and re -sealing of the deck. Any issues found
are corrected via repair or replacement. Historically, haul out services and related repairs
have been provided through local shipyards.
On March 13, 2023, a Request for Proposals (RFP) No. 23-60 for Rescue Boat Haul Out
Services was posted to the City's electronic bidding portal; approximately 118 vendors
were automatically notified of the RFP. Four prospective bidders reviewed and/or
downloaded the bid documents, and two vendors submitted responses. Only one bidder,
South Coast Shipyard, Inc. (South Coast Shipyard) was deemed responsive, as the other
bidder failed to include a complete response file. Following review of the responsive bid,
South Coast Shipyard was awarded a three-year on -call maintenance agreement for a
not -to -exceed amount of $120,000.
South Coast Shipyard continues to provide quality work, and staff remains satisfied with
the contractor's performance. Additionally, following a recent competitive bid process
(Request for Bid No. 26-06), South Coast Shipyard was also awarded a contract to
completely refurbish and repower one of the City's rescue boats and install new engines
in the other two rescue boats.
The current on -call agreement is set to expire on June 30, 2026, and is approximately
90% expended. In order to maintain current service levels and ensure continuity of service
between the ongoing refurbishment and engine replacement projects with future haul out
services, staff requests City Council approval of Amendment No. One to extend the term
of the agreement to June 30, 2028, and increase the not -to -exceed amount of the
agreement from $120,000 to $270,000 (an increase of $150,000). This increase will cover
continued haul out services, on -call maintenance/unforeseen repairs, and possible
engine work or modifications outside of the new engines' manufacturer's warranty.
Additionally, the increase would accommodate rising parts and materials costs (wood,
fiberglass, radio equipment, fuel tanks, etc.) from various suppliers. No changes to the
labor rates are proposed, as the agreement already incorporates annual Consumer Price
Index (CPI) adjustments.
FISCAL IMPACT:
Typical haul out services are approximately $5,000 per vessel and are done on an annual
basis. As -needed repairs, replacements or modifications can include complete
replacements of bilge pumps, engine removals and reinstallations, and large fiberglass
Amendment No. One to On -Call Maintenance/Repair Services Agreement with South
Coast Shipyard, Inc. for Rescue Boat Haul Out Services
February 24, 2026
Page 3
hull repairs, and can cost upwards of $13,000 or more. The adopted budget includes
sufficient funding for these services. It will be expensed to the Equipment Renovation
account in the Municipal Operations Department, 7529032-911020.
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).
ATTACHMENTS:
Attachment A — Photos of Haul Out and Repair Services
Attachment B — Amendment No. One to On -Call MRSA with South Coast Shipyard, Inc.
a
SeaWatch III Haulout
Port side view
Deck build
Console view
Attachment B
AMENDMENT NO. ONE TO
ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH SOUTH COAST SHIPYARD, INC.
FOR RESCUE BOAT HAUL OUT SERVICES
THIS AMENDMENT NO. ONE TO ON -CALL MAINTENANCE/REPAIR
SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this
24th day of February, 2026 ("Effective Date"), by and between the CITY OF NEWPORT
BEACH, a California municipal corporation and charter city ("City"), and SOUTH COAST
SHIPYARD, INC., a California corporation ("Contractor"), whose address is 223 21 st
Street, Newport Beach, CA 92663, and is made with reference to the following:
RECITALS
A. On July 1, 2023, City and Contractor entered into a Maintenance/Repair Services
Agreement (Contract No. C- 9428-1) ("Agreement") to perform fixed and on -call
rescue boat haul out services for City ("Project").
B. The parties desire to enter into this Amendment No. One to extend the term of the
Agreement to June 30, 2028, increase the total compensation, revise the
Contractor's Project Manager, update the City's Project Administrator, revise
notice information for both parties, and update the 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 June 30, 2028, 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 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 and subcontractor fees,
shall not exceed Two Hundred Seventy Thousand Dollars and 00/100 ($270,000.00),
without prior written authorization from City."
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subcontractor fees, in an amount not to exceed One
Hundred Fifty Thousand Dollars and 00/100 ($150,000.00).
3. PROJECT MANAGER
Section 5.1 of the Agreement is amended in its entirety and replaced with the
following: "Contractor shall designate a Project Manager, who shall coordinate all phases
of the Project. The Project Manager shall be available to City at all reasonable times
during the Agreement term. Contractor has designated John Lauritzen to be its Project
Manager. Contractor shall not remove or reassign the Project Manager or any personnel
listed in Exhibit A or assign any new replacement personnel to the Project without the
prior written consent of City. City's approval shall not be unreasonably withheld with
respect to the removal or assignment of non -key personnel."
4. ADMINISTRATION
Section 6 of the Agreement is amended in its entirety and replaced with the
following: "This Agreement will be administered by the Fire Department. City's Assistant
Chief of Lifeguard Operations or designee shall be the Project Administrator and shall
have the authority to act for City under this Agreement. The Project Administrator shall
represent City in all matters pertaining to the Services to be rendered pursuant to this
Agreement."
5. NOTICES
Section 23.2 of the Agreement is amended in its entirety and replaced with the
following: "All notices, demands, requests or approvals from Contractor to City shall be
addressed to City at:
Attn: Fire Administrative Manager
Fire Department
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660"
Section 23.3 of the Agreement is amended in its entirety and replaced with the
following: "All notices, demands, requests or approvals from City to Contractor shall be
addressed to Contractor at:
Attn: John Lauritzen
South Coast Shipyard, Inc.
223 21 S' Street
Newport Beach, CA 92663"
6. INSURANCE REQUIREMENTS
As of the Effective Date of this Amendment No. One, 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 and
Amendment No. One shall hereafter refer to "Exhibit C" attached hereto.
SOUTH COAST SHIPYARD, INC. Page 2
7. 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]
SOUTH COAST SHIPYARD, INC. Page 3
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: �r1�
By:
Aa C. Harp n
City Attorney
ATTEST:
Date:
Lena Shumway
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Lauren Kleiman
Mayor
CONTRACTOR: SOUTH COAST
SHIPYARD, INC., a California
corporation
Date:
By:
Peter Stewart
Chief Executive Officer and President
Date:
By:
Michelle Stewart
Secretary
[END OF SIGNATURES]
Attachments: Exhibit C — Insurance Requirements
SOUTH COAST SHIPYARD, INC. Page 4
EXHIBIT C
INSURANCE REQUIREMENTS — MAINTENANCE/REPAIR/JANITORIAL SERVICES
Provision of Insurance. Without limiting Consultant's indemnification of City,
and prior to commencement of Work, Consultant shall obtain, provide and
maintain at its own expense during the term of this Contract, policies of
insurance of the type and amounts described below and in a form satisfactory
to City. Consultant agrees to provide insurance in accordance with
requirements set forth here. If Consultant uses existing coverage to comply and
that coverage does not meet these requirements, Consultant 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. Consultant shall maintain Workers'
Compensation Insurance providing statutory benefits and Employer's
Liability Insurance with limits of at least one million dollars ($1,000,000)
each employee for bodily injury by accident and each employee for
bodily injury by disease in accordance with the laws of the State of
California.
Consultant 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. Consultant shall maintain commercial
general liability insurance, and if necessary excess/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 bodily
injury, property damage, 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. Consultant shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
SOUTH COAST SHIPYARD, INC. Page C-1
covering bodily injury and property damage for all activities of Consultant
arising out of or in connection with Work to be performed under this
Contract, 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 for each accident.
D. Excess/Umbrella Liability Insurance. If any Excess or Umbrella Liability
policies are used to meet the limits of liability required by this contract,
then said policies shall be "following form" of the underlying policy
coverage, terms, conditions, and provisions and shall meet all of the
insurance requirements stated in this contract, including, but not limited
to, the additional insured and primary & non-contributory insurance
requirements stated herein. No insurance policies maintained by the
City, whether primary or excess, and which also apply to a loss covered
hereunder, shall be called upon to contribute to a loss until the
Consultant's primary and excess/umbrella liability policies are
exhausted.
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 Contract shall be endorsed to waive subrogation against
City, its City Council, boards and commissions, officers, agents,
volunteers and employees, or shall specifically allow Consultant or
others providing insurance evidence in compliance with these
requirements to waive their right of recovery prior to a loss. Consultant
hereby waives its own right of recovery against City, and shall require
similar written express waivers and insurance clauses from each of its
subcontractors.
B. Additional Insured Status. All liability policies including general liability,
excess/umbrella liability, and automobile liability, if required, but not
including professional liability, shall provide or be endorsed to provide
that City, its City Council, boards and commissions, officers, agents,
volunteers and employees shall be included as additional insureds
under such policies.
C. Primary and Non -Contributory. Consultant's insurance coverage shall
be primary insurance and/or the primary source of recovery with respect
to the City, its City Council, boards and commissions, officers, agents,
volunteers and employees. All liability coverage shall apply on a primary
basis and shall not require contribution from any insurance or self-
insurance maintained by City.
SOUTH COAST SHIPYARD, INC. Page C-2
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days' notice of cancellation or nonrenewal of coverage (except
for nonpayment for which ten (10) calendar days' notice is required) for
each required coverage.
5. Additional Agreements Between the Parties. The parties hereby agree to
the following:
A. Evidence of Insurance. Consultant 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. All of
the executed documents referenced in this Contract must be returned
to City within ten (10) regular City business days after the date on the
"Notification of Award". Insurance certificates and endorsements 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 Contract. 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, Consultant 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. The City reserves the right at any
time during the term of the Contract to change the amounts and types
of insurance required by giving Consultant ninety (90) calendar days'
advance written notice of such change. If such change results in
substantial additional cost to Consultant, City and Consultant may
renegotiate Consultant's compensation.
C. Right to Review Subcontracts. Consultant agrees that upon request, all
agreements with subcontractors or others with whom Consultant 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. Consultant shall require and verify that
all subcontractors maintain insurance meeting all the requirements
stated herein, and Consultant 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
SOUTH COAST SHIPYARD, INC. Page C-3
CG 20 38 04 13.
D. Enforcement of Agreement Provisions. Consultant acknowledges and
agrees that any actual or alleged failure on the part of City to inform
Consultant 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
Consultant maintains higher limits than the minimums shown above, the
City requires and shall be entitled to coverage for higher limits
maintained by the Consultant. Any available proceeds in excess of
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 Consultant or any subconsultant
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 Consultant'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
Consultant or reimbursed by Consultant upon demand.
H. Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Consultant's performance under this Contract, 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.
Consultant's Insurance. Consultant 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.
SOUTH COAST SHIPYARD, INC. Page C-4