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HomeMy WebLinkAbout06 - Alley Sweeping ServicesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 September 9, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, 949 - 644 -3055 m harm on @city. n ewport- beach.ca. us SUBJECT. Professional Service Agreement With Sunset Property Services For Alley Sweeping Services ISSUES: Should the City execute a Professional Services Agreement with Sunset Property Services of Irvine for alley sweeping services? RECOMMENDATION: 1. Approve the agreement with Sunset Property Services for Alley Sweeping services on a twice- monthly basis. 2. Approve a budget amendment in the amount of $9,724 from the General Fund Unappropriated Reserves, to fund the increase in cost over the expiring contract for the remainder of the fiscal year. DISCUSSION: City staff currently sweeps over 200 miles of City streets each week, and selected business areas on a more frequent basis. This greatly reduces the amount of dirt, debris, and litter that would eventually impact water quality in the harbor and bay. Since 2002, approximately 33 miles of improved alleys have been swept on a twice- monthly basis. Alleyways in the City range from eight (8) to twenty (20) feet in width, and are in a narrow "T" configuration in beach and Balboa Island areas. These challenges necessitate the use of a relatively small sweeper that is capable of negotiating these challenging areas while effectively mitigating dust during cleaning. City staff sought proposals for alley sweeping services beginning June 10th. A mandatory pre - proposal meeting was held on June 13th and attended by eleven Agreement with Sunset Property Services forAlley Sweeping Services September 8, 2008 Page 2 vendors based throughout Los Angeles and Orange Counties. Four vendors submitted proposals by the July 8th deadline. A summary of the proposal prices is attached, and the lowest proposed price was furnished by CleanStreet, at an annual cost of $70,200. CleanStreet was invited to demonstrate the proposed sweeper to City Staff and it was determined that the equipment did not meet the City's performance requirements. With the second lowest proposed price of $72,000, TSCM was invited to demonstrate the capability of their proposed sweeper, however it was determined that the equipment did not have the required PM10 certification per AQMD Rule 1186. The purpose of this rule is to reduce the amount of dust (particulate matter) that is introduced into the air as a result of sweeping and grading operations. With the third lowest proposed price of $82,482 the current contractor, Sunset Property Services, was able to demonstrate that its proposed sweeper meets the City's performance requirement as well as the related AQMD Rules. Therefore, an agreement with Sunset Property Services is submitted for Council approval. The term of the agreement is for two (2) years and may be extended for three (3) additional one (1) year terms upon agreement of both parties. This agreement includes an annual rate adjustment based in proportion to changes in the Consumer Price Index of a maximum of 4.0% after each 12 month period. With the rate adjustment taken into consideration, Sunset Property Services represents the best value for the City's alley sweeping service needs. FUNDING: The proposed contract is $12,282 more per year than the current contract that the City has with Sunset Property Services and $9,724 more than anticipated in the budget. Consequently, staff is requesting a budget amendment in the amount of $9,724 from the General Fund Unappropriated Reserves into Account 3140 -8088 (Operations Support — Contract Services) to fund the difference over the remainder the fiscal year (September 15, 2008 through June 30, 2009). ENVIRONMENTAL REVIEW: This action requires no environmental review, as it is not a project pursuant to CEQA. Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 3 LEGAL REVIEW: The City Attorney's Office has reviewed this report and the attached agreement. Prepared 6Fx Maurice Turner Administrative Analyst General Services Director Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 4 Attachments: (1) Summary of Alley Sweeping Proposals (2) Professional Services Agreement with Sunset Property Services for Alley Sweeping Services (3) AQMD Rule 1186 PMjo Clarification Letter (4) CleanStreet Negative Performance Response Letter (5) TSCM Lack of PMjo Certification Letter (6) Sunset PMjo Certification Letter Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 5 ATTACHMENT 1 Summary of Alley Sweeping Proposals Total Difference Fuel Type 14,000 GVW Current Contractor $78,000 $7,800 Unleaded Under CleanStreet (Diesel) $70,200 - Diesel Under TSCM $72,000 $1,800 Unleaded Under Sunset Property Services $82,482 $12,282 Unleaded Under CleanStreet (Alternative Fuel) $85,800 $15,600 CNG Over Nationwide Environmental Services 1$125,720 1 $55,520 Unleaded Under Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 6 ATTACHMENT 2 Professional Services Agreement with Sunset Property Services for Alley Sweeping Services CITY OF NEWPORT BEACH Request for Proposal Alley Sweeping CONTRACTOR AGREEMENT THIS AGREEMENT, entered into this _ day of of 2008, by and between the City of Newport Beach, a Municipal Corporation and Charter City ( "City"), and, Jonset Corporations, a Corporation located at 16251 Construction Cir W, Irvine, CA ( "Contractor "), is made with reference to the following Recitals: RECITALS WHEREAS, the City desires to obtain contract services for the sweeping of approximately 33 miles of City alleyways. WHEREAS, on June 10, 2008 a Request for Proposals (RFP) requesting proposals for the sweeping of City alleyways was mailed to firms. WHEREAS, Jonset Corporations ( "Contractor ") has been deemed to be the most qualified to perform the work out of those firms which responded to the RFP. WHEREAS, the Contractor desires to enter into an Agreement to provide services to the City and acknowledges that the City has relied upon its representations and commits to faithfully perform the services required by this Agreement and in accordance with the terms and conditions of this Agreement. WHEREAS, the Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications relative to the type, common nature and frequency of work to be performed, is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified in this Agreement NOW, THEREFORE, the Parties agree as follows: 1. TERM Unless earlier terminated in accordance with Section 20 of this Agreement, the Term of this Agreement shall be for a period of two (2) years. The term shall commence on September 15, 2008, after City Council approval of this Agreement, and upon receipt and approval of all required insurance. The term of this Agreement shall automatically be extended for three (3) additional one (1) year terms (automatic extensions) with the extensions to automatically commence upon the expiration of the initial term or any extended term, unless the City notifies Contractor in writing at least thirty (30) days before the end of the initial term or any extended term, of its intent to terminate this 1 Agreement at the conclusion of the initial term or any extension. Time is of the essence in the performance of services under this Agreement. 2. CONTRACTOR DUTIES Contractor shall perform the services specifically described in, and in strict compliance with the Scope of Work ( "Contract Services ") as described in the RFP and the Contractor's proposal. The Contract Services shall be performed at least as frequently as specified in the RFP and Contractor's proposal. City shall have the right to alter frequency of maintenance as necessary to ensure highest industry standards of maintenance. Proposal Unit Prices and Total Annual Costs are contained in Exhibits A and B. All of the Exhibits are considered to be a part of, and are incorporated into, this Agreement. 3. WORKMANSHIP. SUPERVISION, AND EQUIPMENT A. The Contractor shall provide a work force sufficient to perform the Contract Services and all members of the work force shall be legally documented. B. All Contract Services shall be performed by competent and experienced employees. Contractor shall be responsible for compliance with all local, state, and federal laws and regulations. Contractor shall employ or retain, at its sole cost and expense, all professional and technical personnel necessary to properly perform Contract Services. C. The work force shall include a thoroughly skilled, experienced, and competent supervisor who shall be responsible for adherence to the specifications by directly overseeing the contract operations. All supervisory personnel must be able to communicate effectively in English (both orally and in writing). Any order given to supervisory personnel shall be deemed delivered to the Contractor. The supervisor assigned must be identified by name to ensure coordination and continuity. D. All Contractor personnel working at the outlined areas shall be neat in appearance and in uniforms as approved by the Operations Support Superintendent when performing Contract Services. All Contractor personnel shall wear identification badges or patches. Those contract employees working in or adjacent to traffic zones shall wear orange vests. Employees shall not remove any portion of their uniform while working within the City. Employees driving the Contractor's vehicles shall at all times possess and carry a valid Commercial Drivers License issued by the State of California. If the Contract Administrator determines that any person employed by the Contractor has failed or refused to carry out the terms of this Agreement, appears to be incompetent, acts in a disorderly, improper, or unsafe manner, or shows signs of intoxication or other impairment, instead of initiating termination for breach, the Contract Administrator may notify Contractor, who shall take immediate remedial action, which may include removing the employee from the job site. Prior to returning a removed employee to work within the City, the Contractor shall provide in writing the reason for the individual's behavior and the means used to prevent this behavior from occurring again. In no event shall Contractor fail to prevent, prohibit, or resolve problems 2 with its employees working after receiving notice of same from the City. Violation of this section by Contractor shall be a material breach of this Agreement and may result in the City terminating the Agreement or temporarily suspending services hereunder, with Contractor being liable for any resulting costs incurred by the City. No action to terminate or suspend shall be taken by City until after Contractor is provided notice and afforded an opportunity to respond or refute the allegations, except that the Contract Administrator may immediately suspend services hereunder if he finds such action reasonably appropriate to protect the public safety, health or welfare. E. All work shall be performed in accordance with the highest maintenance standards. F. Complaints received by the City regarding the Contractor's performance will be transmitted to the Contractor's office in writing, by telephone or facsimile, and handled by the Contractor's Supervisor. All complaints are to receive a follow -up response within twenty-four (24) hours following notification of the Contractor. A report of the Contractor's investigation and the corrective action taken shall be made promptly by the Contractor to the Contract Officer. Repeat complaints may be handled by a joint visit to the site by a City Inspector and the Contractor's Supervisor. Complaints received directly by the Contractor shall be submitted in writing to the City on the day such complaints are received. Contractor shall maintain a log of complaints received and corrective actions implemented which shall be submitted to the City within ten (10) days following the end of the month. G. All vehicles and equipment used in conjunction with the work shall be in good working order and have appropriate safety guards (mowers, etc.). All vehicles shall bear the identification of the Contractor and clearly post "Serving the City of Newport Beach." All vehicles used to perform work under this Agreement shall remain exempt from AQMD Rule 1186.1. If Contractor proposed to use non - alternative fuel sweepers in its response to the request for proposal, the Contractor shall only use non - alternative fuel sweepers that are under 14,000 GVW, and therefore exempt from AQMD Rule 1186.1 in performing the work. H. Contractor shall provide a manager to coordinate work with the City Administrator and ensure satisfactory performance of Contract Services. The manager shall coordinate work crews on a daily basis to ensure compliance with the terms of this Agreement. I. Work within the City by utility and construction companies may be progressing concurrently with the work under this Agreement. It is the responsibility of the Contractor to be informed of work planned by these parties and to coordinate street sweeping work accordingly. J. The Contractor warrants that it has familiarized itself with all City's streets and curbs at the time of commencement of this Agreement. Contractor is also familiar with all existing installations, both public and private, in the area where services shall be performed under this Agreement. Contractor shall provide adequate safeguards to prevent damage to existing structures and improvements. Structures 3 or improvements of any kind, whether public or private, which are removed, damaged or destroyed in the course of work shall be replaced and/or repaired, at the Contractor's expense, to the original condition and to the satisfaction of the City. Failure to have such damages repaired in a timely manner will result in the City deducting from the Contractor's payment the cost to perform the necessary remedial work. K. The Contractor shall at all times use good sweeping practices as dictated by standards within the sweeping industry and will make adjustments to its equipment as necessary. The Contractor must exercise due care so as to prevent spilling, scattering, or dropping of debris during the sweeping activity and shall immediately clean up any such spillage, dropping, or scattering. Sweeping practices include, but are not limited to the following: (1) Sweeping speed shall be adjusted to street conditions with a maximum speed of six (6) miles per hour; and (2) patterned concrete medians, intersections, and crosswalks shall be swept at a maximum speed of three (3) miles per hour. The Contract Officer may require the installation of sweeping speed monitoring devices to record actual vehicle speed during sweeping. Sweepers shall be operated as close to parked cars or other obstacles as safety allows. L. The City may use a Parking Control Officer to cite vehicles for parking during street sweeping hours. The Contractor shall coordinate sweeping activities with the Parking Control Officer. All costs for coordination are the responsibility of the Contractor, and no additional compensation will be allowed. M. The City may at various times and locations temporarily install portable traffic counting equipment of the type which is activated by vehicles coming in contact with a hose placed in the roadway. Caution shall be used by the Contractor to avoid damaging said equipment. If the Contractor, while in the performance of his contract duties, damages or causes to be damaged any of the aforementioned traffic counting equipment or appurtenances, the Contractor shall bear the entire cost for the restoration, repair, inspection, testing or replacement of said damaged equipment. 4. COMPENSATION TO CONTRACTOR City shall pay Contractor the sum of $6,873.50 year in 12 equal installments. Contractor shall submit invoices to City on a monthly basis. City shall pay invoices within thirty (30) days after receipt 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 entitled "Notices ". Upon the first anniversary of the Commencement Date and upon each anniversary of the Commencement Date thereafter, the Rate to be paid by the City as set forth in Exhibit A shall be adjusted in proportion to changes in the Consumer Price Index, subject to the 3.0% maximum adjustment increase set forth below. Such adjustment shall be made by multiplying the original Rate by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made and the denominator of which is the value 4 of the Consumer Price Index. for the same calendar month one (1) year prior. For example, if the adjustment is to occur effective June 1, 2009, the index to be used for the numerator is the index for the month of March 2009 and the index to be used for the denominator is March 2008. The "Consumer Price Index" to be used in such calculation is the Consumer Price Index, All Urban Consumers (All Items) for the Los Angeles Anaheim Riverside Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics (1982 84 = 100). If both an official index and one or more unofficial indices are published, the official index shall be used. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new index. In no event, however, shall the amount payable under this agreement be reduced below the Rate in effect immediately preceding such adjustment. The maximum increase to the Rate, for any year where an adjustment is made in proportion to changes in the Consumer Price Index, shall not exceed 3.0% of the Rate in effect immediately preceding such adjustment. 5. INDEPENDENT CONTRACTOR It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall have the responsibility for and control over the means of performing the work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the. 6. EXAMINATION OF WORK SITES City makes no representation regarding the order or condition of any area or location for which Contractor is to provide services. City has also made no representation that the site or location of work will be free from defects, apparent or hidden, at the commencement of, or at any time during the term of the Agreement. 7. HOLD HARMLESS To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents and employees (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, attorney's 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 work performed or services provided under this Agreement (including, without limitation, defects in workmanship and/or materials) or Contractor's presence or activities conducted performing the work (including the negligent and/or willful acts, errors and/or omissions of Contractor, its principals, officers, 9 agents, employees, vendors, suppliers, Contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 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 attorney's 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 the Contractor. 8. 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City's at all times during the term of this Agreement. B. Sioature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. i. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California; however, in no event shall the Employer's Liability Insurance be less than one million dollars ($1,000,000) per occurrence. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. ii. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. C iii. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the 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 two million dollars ($2,000,000) combined single limit for each occurrence. E. Endorsements. Each general liability, employer's liability and automobile liability insurance policy shall be endorsed with the following specific language: i. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self - insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timelv Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. G. Additional 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. 9. PROHIBITION AGAINST TRANSFERS OR ASSIGNMENT A. Contractor may not assign any right or obligation of this Agreement or any interest in this Agreement without the prior written consent of City. Any attempted or purported assignment without consent of City shall be null and void. Contractor acknowledges that these provisions relative to assignments are commercially reasonable and that Contractor does possess special skills, abilities, and personnel uniquely suited to the performance of Contract Services and any assignment of this Agreement to a third party, in whole or in part, could 7 10. jeopardize the satisfactory performance of Contract Services. Contractor may not employ any subcontractors unless specifically authorized by City. B. The sale, assignment, transfer, or other disposition of any of the issued and outstanding capital stock of Contractor, of the interest of any general partner or joint venture which shall result in changing the control of Contractor, shall be construed as an assignment of this Agreement. A. All Contractor's books and other business records, or such part as may be used in the performance of this Agreement, shall be subject to inspection and audit by any authorized City representative during regular business hours. B. No report, information, or other data given to or prepared or assembled by Contractor pursuant to this Agreement may be made available to any individual or organization without prior approval by City. C. Contractor shall, at such time and in such form as City may require, provide reports concerning the status or cost of services required by this Agreement. D. The Contractor is required to keep a daily log of all streets swept, including the name and location of the streets and the number of curb -miles swept, along with a description of any special services performed. The log shall be signed by the Supervisor on a daily basis. Each month, a report shall be prepared from the daily log, giving a brief description of all routine, special event, and emergency activities. The log report shall be attached to the monthly invoice submitted to the Contract Officer. A phone log will be submitted monthly of all calls from the City of Newport Beach General Services Department and the City of Newport Beach Police Department to the Contractor, whether or not those calls require a request for service and a description of the action taken from the City call. E. Contractor shall keep records and invoices in connection with its work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records. Contractor shall maintain and allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment under this Agreement. 11. ADMINISTRATION A. This Agreement will be administered by the General Services Department. The General Services Director or his/her designees shall be considered the City's Administrator and shall have the authority to act for the City under this Agreement. The Administrator or his/her authorized representative shall represent the City in all matters pertaining to the services to be rendered pursuant to this Agreement. E B. City shall furnish to Contractor maps, ordinances, data, and other existing information as may be requested by Contractor necessary for Contractor to complete the work contemplated by this Agreement. City also agrees to provide all such materials in a timely manner. 12. INCREASE OR DECREASE IN SCOPE OF WORK A. Contractor shall perform additional /emergency services as requested by the Administrator. The Administrator may give verbal authorization for additional/emergency services, prior to performance of the work, up to One Thousand Dollars ($1,000.00). Contractor must obtain written authorization from the City Administrator prior to the performance of any additional/emergency services that exceed One Thousand Dollars ($1,000.00). Additional services, may be billed in accordance with the per mile unit cost proposed by the Contractor Exhibit C. B. City reserves the right to withdraw certain locations from the Scope of Work to be performed by Contractor pursuant to this Agreement. City shall notify Contractor in writing of its intent to do so at least thirty (30) days prior to the effective date of withdrawal of any location. In the event a location is withdrawn from the scope of services, compensation to Contractor shall be reduced in accordance with the Contractor's unit costs specified in Exhibit C. In the event the location is withdrawn for a period of less than a full two (2) year term, Contractor's compensation shall be reduced on a prorated basis. 13. DISPUTES PERTAINING TO PAYMENT FOR WORK Should any dispute arise respecting whether any delay is excusable, or its duration, or the value of the work done, or of any work omitted, or of any extra work which Contractor may be required to do, or respecting any payment to Contractor during the performance of the Agreement, such dispute shall be decided by the City Manager and his decision shall be final and binding upon Contractor and his sureties. 14. REIMBURSEMENT FOR EXPENSES Contractor shall not be reimbursed for expenses unless authorized in writing by City Administrator. 15. LABOR A. Contractor shall conform with all applicable provisions of State and Federal law including, applicable provisions of California Labor Code, and the Federal Fair Labor Standards Act. B. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of this Agreement, Contractor shall immediately give notice to City, including all relevant information. Vj C. This agreement shall be paid in accordance Section 1770 of the California State Labor Code and in accordance with the terms of the Southern California Master Labor Agreement, which has established a prevailing rate of per diem wages to be paid in the performance of this agreement. The Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the contract. A copy of said determination is available by calling the prevailing wage hotline number (415) 703 -4774, and requesting one from the Department of Industrial Relations. All parties to the contract shall be governed by all provisions of the California Labor Code Relating to prevailing wage rates (Sections 1770 -7981 inclusive). 16. NONDISCRIMINATION BY CONTRACTOR Contractor represents and agrees that it does not, and will not, discriminate against any subcontractor, consultant, employee or applicant for employment based on race, religion, color, sex, handicap, national origin, or other basis that violates the federal or state constitution or federal or state law. Contractor's obligation not to discriminate shall apply, but not be limited to, the following: employment, upgrading, demotion, transfers, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 17. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other contractors in connection with the work. 18. CONFLICTS OF INTEREST A. The Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose financial interest that may foreseeable be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeable financially affect such interest. The Contractor will provide a completed disclosure form noting the above. Contractor will comply with the Act and relevant City Resolutions. B. If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for termination of this Agreement by the City. The Contractor shall indemnify and hold harmless the City for any claims for damages resulting from the Contractor's violation of this Section. 19. NOTICES All notice, demands, requests or approvals to be given under this Agreement must be given in writing and will be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. 10 All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: General Services Department City of Newport Beach 3300 Newport Boulevard PO Box 1768 Newport Beach, CA 92658 -8915 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: 20. TERMINATION/DEFAULT A. In the event Contractor fails or refuses to timely perform any of the provisions of this Agreement in the manner required or if Contractor violates any provisions of this Agreement, Contractor shall be deemed in default. If such default is not cured within a period of two (2) working days, or if more than two (2) working days are reasonably required to cure the default and Contractor fails to give adequate assurance of due performance within two (2) working days after Contractor receives written notice of default from City, City may terminate the Agreement forthwith by giving written notice. City may, in addition to the other remedies provided in this Agreement or authorized by law, terminate this Agreement by giving written notice of termination. B. This agreement may be terminated without cause by City upon thirty (30) days written notice. Upon termination, City shall pay to Contractor that portion of compensation specified in the Agreement that is earned and unpaid prior to the effective date of termination. The Contractor may only terminate the Agreement in the event of nonpayment by the City. In the event of nonpayment of undisputed sums by the City, Contractor shall give the City thirty (30) days written notice thereof and the City shall have fifteen (15) working days to cure the alleged breach. C. In addition to, or in lieu of, remedies provided in this Agreement or pursuant to law, City shall have the right to withhold all or a portion of Contractor's compensation for contract services if, in the judgment of the City Administrator, the level of maintenance falls below appropriate landscape or hardscape 11 maintenance standards and/or Contractor fails to satisfactorily perform contract services. City shall have the right to retain funds withheld until the City Administrator determines that contract services are performed as well and as frequently as required by this Agreement. 21. COMPLIANCE WITH LAW All services rendered hereunder by Contractor shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. 23. LICENSES, FEES, PERMITS AND ASSESSMENTS Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes penalties or interest levied, assessed or imposed against City hereunder. 22. WAIVER A waiver by City of any breach of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein whether of the same or a different character. 23. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties concerning the services to be provided under this Agreement. All preliminary negotiations and agreements of whatsoever kind or nature are merged in this Agreement. No verbal agreement or implied covenant shall be held to vary the provisions hereon. Any modification of this Agreement will be effective only by written execution signed by both City and Contractor. 25. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. 26. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 27. CONTROLLING LAW AND VENUE 12 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 28. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 24. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. ATTEST: LaVonne Harkless, City Clerk APPROVED AS TO FORM: Aaron Harp, Assistant City Attorney 13 CITY OF NEWPORT BEACH A Municipal Corporation By: Mayor Contractor By: Title: EXHIBIT A CITY OF NENNTORT BEACH Request for Proposal Alley Sweeping AttachnlentE: Proposal Form - 4fferoatire -Fyte4 � Jn1_y e, zoos -- ____ -- .7OHN D. HOWHANNESIAN Date PRESIDENT SUNSET PROPERTY SERVICES 14 Number of of Sweeps per Year 24 i 24 LOCATIONS Annual Cost per Location Annual Cost per Location Area t (NewWrI HeigbW'Dover Arm) Area 2 (Santa Ana River Jetty to Superior Avenue) Area 3 (Superior Avenue IQ Newport Pier) Area 4 (Newport Pier to Balboa Pier) Area 5 (Balboa IslandBalboa Picr/Balboa Peninsula) Area 6(Corona del Azar) $ 17, 410.94 i i $ 5,097.39 i $ $.18.179 . 03 .__. $ $ 10,509 45 S 16. 179.03 $ $ _ S 16,047.06 � Total Annual Cost 5,482.00 S Jn1_y e, zoos -- ____ -- .7OHN D. HOWHANNESIAN Date PRESIDENT SUNSET PROPERTY SERVICES 14 EXHIBIT B CITY OF NEWPORT BEACH Request for Proposal Alley Sweeping Attachment F. Unit Prices A. The Contractor agrees that for requested and/or required changes in the scope of work, including additions and deletions on work not performed, the Contract Sum shall be adjusted in accordance with the following unit prices, where the City elects to use this method in determining costs. B. Contractor is advised that the unit prices will enter into the determination of the contract award. Unreasonable prices may result in rejection of the entire bid proposal. Unit prices listed below refer to all items installed and the Construction Documents and include all costs connected with such items; including but not limited to, materials, labor, overhead, and profit for the contractor. C. The unit price quoted by the Contractor shall be those unit prices that will be charged or credited for labor and materials to be provided regardless of the total number units and/or amount of labor required for added or deleted items of work. D. All work shall be performed in accordance with specifications described in the RFP. FUNCTION COSTIUNIT OF MEASURE Alley Sweeping S 95.00 /mile of alley swept 15 Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 7 ATTACHMENT 3 AQMD Rule 1186 PMIO Clarification Letter South Coast Air Quality Management District LIS65 Copley Drtve, Diamond Bar, CA 91765-4178 r . i (909) 396 -2000 • �egmd.£ov August 6, 2008 Maurice Turner Admunrstrzruve Analyst General Services Departmett City of Newport Beach, CA 592 Superior Avenue Newport Beech, CA 92663 Subject: SCAQMD Rule 1186 Clstif catioa Dear Maurice Turner. Thank you for your inquiry regarding the South Coast Air Quality Management District (AQMD) Rule 1186 — PM 10 Emisnum; from Paved and Unpaved Roads," Ltvcstock operations. As discussed, paragraph (d)C2) of AQMD Rule I I M requites local govctnments that contract for meet swceputg equipment or street sweeping services for routine street sweeping on public roads to acquire and use only certified street sweeping equipment To clarify implc_nema ^on questions, the rule also provides definitions for routine street sweeping iparagraph (e)(17)), paved roads [Paragraph (c)(14)), and certified meet sweeping equipment [paragraph (c)(2)). In closing, if a local government conducts routine meet swccping on a paved road within the boundaries of the AQMD, Rule 1186 requires use of ecrtill od stn:ct sweeping egrupmea6 regardless of the gross vehicle weight of the street sweeper. If you have my questions or if you need additional information, please contact me at (909) 396 -3106 or Mike Laybourn of my staff at (909) 396.1066. Sind Tracy A. Goss, P E. Program Supervisor, PM Strategies Plarmin& Rule Dcvelopmctr% and Area Sources Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 8 ATTACHMENT 4 CleanStreet Negative Performance Response Letter 0 CleanStreet Cleenin� Your Fnm�nnmen6 August 5, 2008 Mr. Mark Harmon Director of General Services Department City of Newport Beach 3300 Newport Boulevard PO Box 1768 Newport Beach, CA 92658 RE: Cleanstreet's Demonstration Dear Mr. Harmon, I am writing to apologize for our unsatisfactory demonstration on the alley cleaning. We take a lot of pride in our knowledge and competence at CleanStreet. We operate over 100 Tymco Air sweepers. We are fully expert on these sweepers. We operate just a couple of the smaller Tymcos. We have never been big fans of the smaller Tymco capabilities. We are obviously not up to speed on the proper adjustment of these smaller sweepers. I am sorry for wasting you and your staff's time. I assure you that your experience with CleanStreet is very unusual and is not typical. Sincerely, CLEANSTMETA17 J Coste/ /0 C f Executive Officer Cell: (310) 740 -1602 Office: (800) 225 -7316 x103 JC:seg 1937 West 169th Street, Gardena, California 90247 (800) 225 -7316 C lean Streer. com E-mail; info ®Clean Street,com Fax: (310) 538 -8015 Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 9 ATTACHMENT 5 TSCM Lack of PM,o Certification Letter Front: flank J. Pappano [maigo her k.pappenoOtsarmp com] Sent: Friday, August OB, 200611:47 AM To: Harmon, Mark; 'frank pappano' Sukfat: RE: AQMD 1186 PM10letka Thank you Mark I spoke to Hke and another person regarding the rules including 1186.1 aftema0ve fuel weight exemption along with 1186 clarfficalilon as we spoke about the otlrer day. I could purchase a PM10 qualified sweeper however t Ore weight requirement Is over 17,600 The GV W gran it must be alternative fuel. The some vehkb with sbarnative fuel is $ 250,000.00.1 thank you far your consideration and follow, up. From: Harrno% Mark [niaMD:nden m@dty.nw4x)rt-beoch.ra.us] Sent: f4idady, August 08, 200810:03 AM To: Frank pappeno; frank.papparmftarioorp corn Subject; FIN. AQMD 1186 PM1O lather Good morning Frank, Piano we the letter below from the ACIAD concerning the PM-10 Rule. Unfortunately. Oar weight of go sleet sweeping equipment being proposed for a qty conl ad does not provide for an exemption of the PM -10 requirement. Obviously, I cannot recommended a contractor for a City service knowing that this world violate Air Distct rules. 1 will put" irformadon In a formal later and sand to your oftoe today. Please call meal (949) 644.3665 if you have any questorm Thanks for the rime and effort you put into biddbg this service to the city. Sincerely, Mark Harmon Agreement with Sunset Property Services for Alley Sweeping Services September 9, 2008 Page 10 ATTACHMENT 6 Sunset PM10 Certification Letter z s August 8, 2008 Mr. Maurice Turner SENT VIA E -MAIL Ante ', Administfative Analyst City of Newport Beach General Services Department 592 Superior Avenue Newport Beach, CA 92663 -3884 Re: 2008 RFP�AIIey Sweeping Dear Maurice: Per your e-mail request to John Howhannesian today, I have attached a copy of the moat current PM,certified vehicles as provided by the Air Quality Management District (AQMDI- This document was downloaded lust recently from the internet. Sweeper manufacturer, TYMCO must abide by the regulations set forth by the various agencies in the design of all sweepers and each sweeper is thoroughly checked before shipping by the appropriate authorities TYMCO representatives and their distribution representatives regularty attend AQMD meetings to ensure conformity to their requirements. Sunset Property Services has had TYMCO sweepers since 1987 and we have not had any incidents of non - compliance with this manufacturer. Please contact me should you need any further information Sincerely. 1 9eMa L Kaye J Operations Manager /dk or,,,ye cowry Attachment IR$1 COruhlcEOn ci c fta 11N CA �12 (909) 3515151 (9491 M14371 FU City of Newport Beach NO. BA- 09BA -008 BUDGET AMENDMENT 2008 -09 AMOUNT: $9,7za.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND �X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues NX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations from General Fund fund balance for the additional costs associated with the new contract for alley sweeping services. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description General Fund - Fund Balance Description Amount Debit Credit $9,724.00 " Signed: �� �fic% �t�i�fi��, i fn —o2 —C) Financi I Approval: Adminis five Services Director Date Signed: Administrative Ap oval: City Manager ate Signed: City Council Approval: City Clerk Date Description Division Number 3140 General Services - Operations. Support Account Number 8088 Contract Services $9,724.00 Division Number Account Number Division Number Account Number Division Number Account Number Signed: �� �fic% �t�i�fi��, i fn —o2 —C) Financi I Approval: Adminis five Services Director Date Signed: Administrative Ap oval: City Manager ate Signed: City Council Approval: City Clerk Date