HomeMy WebLinkAbout24 - Street Sweeping ServicesCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 24
March 23, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, (949) 644 -3055
mharmon(a.newportbeachca.gov
SUBJECT: Vendor Selection for Contract Negotiations for Street Sweeping
Services
ISSUE:
Should the City Council select a vendor and direct staff to negotiate a five -year contract
to provide street sweeping services?
RECOMMENDATION:
Direct staff to negotiate a five -year contract (five -year initial contract with five (5)
optional one -year extensions) with Arakelian Enterprises, Inc., dba Athens Services, to
provide city -wide street sweeping services.
DISCUSSION:
Background
On January 12, 2010, City Council approved a Street Sweeping Request for Proposal
(RFP) document for distribution to a list of contractors on file with the General Services
Department, and authorized staff to return to Council with a selected firm if appropriate
(Attachment 1). This action by Council followed a Study Session report on September
22nd and a Finance Committee meeting regarding street sweeping on October 13th. A
copy of the January 12th agenda report, approved minutes, and a draft contract
reviewed by the Office of the City Attorney are attached.
Project Description/Term of Contract
The contractor will be required to perform sweeping services for 655 curb miles of City
streets on a weekly basis. Street sweeping equipment must be approved by the City
Vendor Selection for Contract Negotiations:
Street Sweeping Services
March 23, 2010
Page 2
and comply with all AQMD requirements for clean fuel (CNG /LNG) use. Contractor will
ensure curb -to -curb coverage, including turnouts and medians.
The contractor shall perform 150 curb miles of special event sweeps at no additional
cost for each contract year at the request of the City. The contractor shall also provide
250 curb miles of inclement weather sweeps at no additional cost to the City. Both
special event and inclement weather sweeping are in addition to the 655 curb miles of
weekly prescheduled sweeping services.
Experience has proven that a multi -year contract is the most cost - effective means to
have street sweeping services performed for both the City and the contractor. The term
of the proposed contract is for five years due to the large commitment of personnel and
equipment required to provide this service. At the conclusion of five years, the City will
hold an option to continue the agreement with five one -year extensions. An annual CPI
increase is included after the 15t year of service and is capped at a maximum of 3% per
year.
Proposal Process and Analysis
On January 21, 2010, a copy of the RFP was mailed to 22 companies on file with the
General Services Department. On February 2 "d, 14 companies attended a mandatory
pre -bid meeting to discuss the RFP requirements in detail. The deadline for submitting
a proposal to the City was February 19, 2010. Prior to this deadline, the City received
11 proposals to provide city -wide street sweeping services.
As indicated in Section 1.E of the RFP, costs /fees were not the sole criteria for selection
of a contractor. Evaluation criteria for the proposals also included background and
experience, and technical expertise given the scope of work required for this contract.
Cost Information:
Each proposal was required to provide two separate cost proposals - 1) Total Annual
Cost for Weekly Sweeping (52 sweeps per year per street), and, 2) Total Annual Cost
for Twice Monthly Sweeping (24 sweeps per year per street). As the following chart
indicates, Athens Services was the lowest, responsive proposal.
1) City Provided Service
2) Athens Services
3) Ware Disposal (alternative)
4) CR &R Inc.
5) Dickson Services
6) Ware Disposal
7) Cannon Pacific
8) Nationwide Environmental
9) CleanStreet
10) Sunset Property Service
11) Webco Sweeping
12) Rainbow Disposal
Vendor Selection for Contract Negotiations:
Street Sweeping Services
March 23, 2010
Page 3
PROPOSAL RESULTS
WEEKLY SERVICE (52 sweeps)
$852,000
$419,960
$442,510
$524,554
$544,440
$591,261
$629,735
$687,589
$711,419
$742,048
$878,551
$895,254
Background and Experience/Technical Expertise:
TWICE MONTHLY (24 sweeps)
N/A
$229,983
$178,525
$335,260
$301,536
$188,525
$408,470
$430,410
$386,476
$364,766
$415,383
$447,852
Athens Services has been providing street sweeping services for over 23 years.
Currently, 15 municipalities in Orange and Los Angeles Counties contract with Athens
for city -wide street sweeping services (600,000 residents and businesses).
In addition, and in regards to technical experience, the following five cities have
transitioned from municipal provided services to full contracts with Athens Services for
street sweeping: Placentia, Azusa, Pomona, Glendora, and Irwindale. Staff has
contacted these cities and they were very satisfied with the smooth transition to contract
sweeping, the reduced overall cost, and the continued high quality of service provided
by Athens. Athens experience in transitioning cities from municipal services to contract
services will be critical in the success of this agreement.
Athens Services has proposed to use Compressed Natural Gas (CNG) sweepers, and
they will fuel this equipment at the new CNG Station located in the City Yard. The City
Vendor Selection for Contract Negotiations:
Street Sweeping Services
1 March 23, 2010
Page 4
receives a $0.10 royalty payment for each gasoline gallon equivalent (GGE) of fuel sold
from the station, so this revenue to the City will further reduce the overall cost of the
contract.
In addition, the clean- burning CNG sweepers used by the contractor will replace the
older diesel equipment that is currently being used by the City, which will improve air
quality and reduce noise levels in the community.
Financial Review
Funding for this agreement will be included in the Fiscal Year 2010 -11 budget. The
current annual cost for street sweeping services, with City personnel and equipment, is
approximately $915,000 per year (Attachment 2). Based on the proposal from Athens
Services of $419,960, this agreement would represent a savings of approximately
$250,000 in FY 2011 (transition year), and $450,000 to $500,000 per year in
subsequent years. Over the 10 -year term of this agreement, the total cost savings by
contracting with Athens Services will be approximately $5,800,000.
In addition to the ongoing operational savings listed above, staff has identified
significant one -time cost savings. Currently, the City's Equipment Replacement
Reserve Fund includes $600,000 for the future replacement of City owned street
sweepers. These funds would be transferred back to the General Fund if Council
approves an outside contract for these services.
Recommendation
Based on the evaluation of bids using the criteria above, City staff believes the proposal
from Athens Services will provide the best value for the City in terms of cost and service
level.
Following City Council's direction to negotiate the terms of the contract with Athens
Services, staff will enter into a 2 -week negotiation period to discuss the terms in the
agreement. The terms will include the phased or transition plan, storage of sweeping
equipment, fueling at City Yard, maintenance and repair schedules, use of Global
Positioning Systems (GPS) on each sweeper, and possible route changes. During this
period, both parties will have the ability to negotiate all terms, with the exception of cost.
Following the negotiation period, staff will return to the City Council on April 27th for the
final approval of the agreement and execution of the contract. The targeted start date
for this project is June 1, 2010.
Vendor Selection for Contract Negotiations:
Street Sweeping Services
March 23, 2010
Page 5
Service Level - Weekly vs. Twice Monthl
Due to the competitive proposals, potential water quality issues, wind /sand problems in
beach and bay areas, significant tree litter in Newport Beach, and resident expectations,
staff is strongly recommending that weekly street sweeping be continued. Changing to
a twice- monthly sweeping schedule would also require changing several hundred signs
for streets that are currently posted (restricted parking on sweep days), and require a
significant learning curve for residents already familiar with our weekly schedules.
Environmental Review:
This project does not require environmental review
Public Notice:
This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers the item).
Legal Review
The City Attorney's Office has reviewed the Request for Proposal document and Draft
Agreement (Attachment 3).
General Services Director
Attachments
1) January 12 City Council Staff Report
2) Analysis of Current Street Sweeping Cost
3) Draft Agreement
TO
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Attachment 1
Agenda Item No. 15
January 12, 2010
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, 949 - 644 -3055
mharmon@newportbeachca.gov
SUBJECT: CITY WIDE STREET SWEEPING: REQUEST FOR PROPOSAL
(RFP)
ISSUES:
Should the City consider contract street sweeping?
RECOMMENDATION:
Staff recommends that the City Council take the following action: 1) approve the
attached Street Sweeping Request for Proposal (RFP) document for distribution to
the list of contractors on file with the General Services Department, 2) authorize staff
to return to Council with a recommendation on how street sweeping services are to
be provided and a selected firm, if appropriate.
DISCUSSION:
At the September 22 "d, 2009, Council Study Session, staff presented information on
the current street sweeping program which is performed with City personnel and
equipment. The presentation (Attachment A) included discussion on costs, vehicle
condition and replacement, recent municipal contracts, and a proposed pilot
program. Due to the age and condition of the current fleet of street sweepers, and
the high cost of purchasing Air Quality Management District (AQMD) compliant
equipment, staff recommended that the City seek proposals from commercial
sweeping contractors to conduct a six -month pilot program within the City. The
intent of the pilot program was to determine the comparative costs associated with
contract sweeping, the challenges involved with posted streets, and the level or
quality of service that would be received.
City Wide Street Sweeping: Request for Proposal
January 12, 2010
Page 2
On October 13th, 2009, staff presented a draft RFP to the Finance Committee for
review and comment. The draft RFP has two significant changes from our original
recommendation that envisioned merely a pilot project. First, we know propose a
RFP for sweeping the entire City on a long -term, multi -year contract, and forgo the
pilot program concept. The main reason for this is the time involved in preparing a
RFP, analyzing bids, and awarding a contract for a term as short as six months. In
lieu of a pilot program, staff recommends that a contract, if appropriate, be awarded
for the entire City with a phased -in approach to implementation. This approach will
allow for an incremental changeover of service provider so that issues and problems
within one area can be resolved prior to the start of service in a different area of the
City.
Secondly, we now propose that respondents offer two service alternatives; one for
bi- monthly sweeping and one for the weekly sweeping schedule that we now do.
Several cities have moved to a bi- monthly program to reduce operational costs.
However, when considering changing the weekly sweeping of residential and
commercial streets in Newport Beach, we will want to consider the change's impact
on water quality issues, storm /tide clean -up, and posted street enforcement/sign
changes.
The Finance Committee supported the draft RFP, including the two changes noted
above, and directed staff to return to the full Council for approval.
Bid / Proposal Analysis
As stated in the attached RFP (Attachment B), staff will be analyzing each proposal
received based on the following criteria: Background and Experience, Technical
Expertise, Management Plan, and their Proposed Cost. A committee of various
department staff members, including Administrative Services and Public Works
Departments, will be formed to analyze each bid and determine a recommendation
for City Council consideration.
FUNDING:
There is no financial impact due to the release of the RFP.
ENVIRONMENTAL REVIEW:
This action requires no environmental review, as it is not a project pursuant to
CEQA.
LEGAL REVIEW
The City Attorney's Office has reviewed the attached RFP and approved as to form.
City Wide Street Sweeping: Request for Proposal
January 12, 2010
Page 3
Prepared /Submitted by:
General Services Director
Attachment: (A) September 22, 2009, Power Point Presentation
(B) Request for Proposal (RFP) for City Wide Street Sweeping Services
Street Sweeping Cost Comparision for FY 2010 - 2013
Attachment 2
Notes:
PER$ Increases - Annual employer PIERS contribution rates: 8.275% 15.406% 16.780% 18.480%
CNG Requirement - AQMD mandates newly purchased sweepers must meet alternative fuel requirement
Hauling & Disposal - City staff will maintain the operation of the hauling & disposal of debris
Transition - 43% of sweeping will be done by City staff during the phased implmentation in FY11
% of Miles by Phase
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
FY 11
Employer PERS Contribution Rate
18.48%
FY 10 FY 11 FY 12 FY 13
City vs Contract Annual Cost
FY 12
FY 13
March 15, 2010
B
CC �phasedimplementation)
$
334,14631
$:
-__._
$
Contract
261,865.83
$
432,558.80
$
445,535.56
4is oral
,
_$
$
—7-2,-6-58.-7-0-
$
_72-J65-8--.76-
2 658.70
$
72,658.70
$
76.673:64_$__
6673.04
$
77,766.77
Revenue From Other Agencies
_ _
$
_75,743.20
__(24.000._00)
$
_ (24 000.00)
$
(24,000:00)
Total
$
720,414.05
�$l
- 557,890.54
$
571,961.04
Net Savings
$
256,977.12 1
$
459,934.80
$
493,913.94
Notes:
PER$ Increases - Annual employer PIERS contribution rates: 8.275% 15.406% 16.780% 18.480%
CNG Requirement - AQMD mandates newly purchased sweepers must meet alternative fuel requirement
Hauling & Disposal - City staff will maintain the operation of the hauling & disposal of debris
Transition - 43% of sweeping will be done by City staff during the phased implmentation in FY11
% of Miles by Phase
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
FY 11
Employer PERS Contribution Rate
18.48%
FY 10 FY 11 FY 12 FY 13
City vs Contract Annual Cost
FY 12
FY 13
March 15, 2010
Attachment 3
CITY OF NEWPORT BEACH
STREET SWEEPING
CONTRACTOR AGREEMENT
THIS AGREEMENT, entered into this _th day of of 2010, by and between the
City of Newport Beach, a Municipal Corporation and Charter City ( "City "), and,
[Contractor Name], a California Corporation doing business as ( "DBA ") [Contractor
Name] located at [Contractor Address] ( "Contractor "), is made with reference to the
following Recitals:
RECITALS
WHEREAS, the City desires to obtain contract services for the sweeping of 655
curb miles of City streets on a weekly basis.
WHEREAS, on January _, 2010 a Request for Proposals (RFP) requesting
proposals for the sweeping of City streets was mailed to firms.
WHEREAS, [Contractor Name] ( "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:
TERM
Unless earlier terminated in accordance with Section 20 of this Agreement, the Term
of this Agreement shall be for a period of five (5) years. The term shall commence on
April _, 2010, 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 five (5) 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
Agreement at the conclusion of the initial term or any extension. Time is of the essence
in the performance of services under this Agreement.
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's
Description of Project (attached as Exhibit A) 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. Total Annual Costs
and Unit Price are contained in Exhibits B and C. Exhibits A -C 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 Contractor shall establish, implement and maintain written operating procedures
designed to ensure the work forces' utilization of techniques generally accepted for
cities of the size and nature of the City of Newport Beach. A current copy of the
operating procedures shall be provided to the Operations Support Superintendent.
D. 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.
E. 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 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.
F. All work shall be performed in accordance with the highest maintenance standards.
G. 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.
H. 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 conform to AQMD
Rule 1186.1.
I. 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.
J. 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.
K. 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 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.
The Contractor shall at all times use good sweeping practices as dictated by the highest
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,
3
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. Standards,
schedules, and frequencies may be modified from time to time as deemed necessary by
the City for the proper maintenance of the sites. Due to different street widths
throughout the City, street sweeping may require slower travel speed and /or multiple
passes by the sweeper, in many cases, to ensure curb -to -curb coverage of the street.
Streets with raised medians (commercial and residential) shall have their curb - gutter
perimeter swept, including turnouts. Street grade striped medians shall be swept in their
entirety. All deposits within intersections shall be removed as part of the sweeping
operations. Each street shall be swept clean to the adjacent property line. Swept clean
means minimal debris residual or tailings. Any sweeper used must not blow debris onto
private property.
L. 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.
M. 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.
N. 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 an amount not to exceed $ year in 12 equal
monthly 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 B -C 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 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,
2010, the index to be used for the numerator is the index for the month of March 2010
and the index to be used for the denominator is March 2009. 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.
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, 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 at all times during the term of this
Agreement.
B. Signature. 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 Reauirements
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
3
i
separately to the work to be performed under this Agreement, or the general
aggregate limit shall be at least twice the required occurrence limit.
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:
L The City, its elected or appointed officers, officials, employees, agents and
volunteers are to be covered as additional insured's 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. Timely 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
7
EM
11
performance of Contract Services and any assignment of this Agreement to a third
party, in whole or in part, could 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.
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.
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 work,
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.
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,
IN
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.
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:
10
20. TERMINATION /DEFAULT
21
22.
23.
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 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.
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.
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.
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
11
term, covenant or condition contained herein whether of the same or a different
character.
24. 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
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.
29. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement and the
Scope of Work or any other attachments attached hereto, the terms of this Agreement
shall govern.
12
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the
day and year first written above.
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
By:
��
Leonie H. MKifiill,
Assistant City Attorney
ATTEST:
Leilani Brown,
City Clerk
Attachment:
Exhibit A — Scope of Work
Exhibit B — Total Annual Cost Form
Exhibit C — Unit Price Form
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
Mark Harmon
Director, General Services Dept
CONTRACTOR
By:
(Corporate Officer)
Print Name:
M
(Financial Officer)
Print Name:
13
Ian-
i "!,et ing
" � e
U
P'Pi.�
ea.,�,
Process, City Costs, Proposal Results,
Cost Worksheet, Recommended Contractor,
Benefits of Contracting Service, Next Steps
March 23, 2010
S
r s. GeSS (Sep} _ Oct)
• September 22, 2009 - Study Session Report
• Current Program: City Sweeping Service / Frequency
• Cost of City Provided Service
• Vehicle Condition and Replacement Cost
• Pilot Program with Private Sweeping Company
• October 13, 2009 — Finance Committee
• Draft Request for Proposal (RFP)
• Staff Recommended Three Changes:
• No Pilot Program
• Include Twice - Monthly (24 Sweeps) Proposals
• Phased Implementation
March 23, 2010
Pr ces (Jan - Feb
• January 12, 2010 — City Council Meeting
• Approved RFP for Distribution to Private Companies
• Return to Council with Selected Firm
• February 2, 2010 — 14 Companies Attend
Mandatory Pre - Proposal Meeting
• Maps of Phased Implementation Plan / Routes
• Equipment Requirements — Compressed Natural Gas (CNG)
• Storage of Equipment and Dumping of Debris in City Yard
' March 23, 2010
at Cosy
Employer PERS Contribution Rate
.. 16.78% 18.48%
Notes:
PERS Increases - Annual employer PERS contribution rates: 8.275% 15.406% 16.780% 18.480%
CNG Requirement - AOMD mandates newly purchased sweepers must meet alternative fuel requirement
Hauling & Disposal - City staff will maintain the operation of the hauling & disposal of debris
Transition - 43% of sweeping will be done by City staff during the phased implementation in FY11
March 23, 2010
Salaries &Benefits
$
378 470.75
$
404,812.72
$
409,611.57
$
415 549.01
Equipment Maintenance & Replacement
$
364,167.12
$
386 459.58
$
419313.56.
$
458 424.97
Fuel
$
68 574.40
$
61 716.96
$
63 568.47
$
65 475.52
Disposal
$
55,191.50
$
72 658.70
$
72 ,658.70
$
72 658,70
Hauling
$
71,813.71
$
75 743.20
$
76 673.04
$
77 766.77
Revenue From OtherA envies
$
(24,000M)
$
24,000M)
; $
24000.00
$
24 000.00
Total
914,217.47
977 391.16
'
1,017,825.34
1,065,874.98
Employer PERS Contribution Rate
.. 16.78% 18.48%
Notes:
PERS Increases - Annual employer PERS contribution rates: 8.275% 15.406% 16.780% 18.480%
CNG Requirement - AOMD mandates newly purchased sweepers must meet alternative fuel requirement
Hauling & Disposal - City staff will maintain the operation of the hauling & disposal of debris
Transition - 43% of sweeping will be done by City staff during the phased implementation in FY11
March 23, 2010
p
i, Iroposal Results
city
$8527420
$432, 460
Athens Services
$419,960
$0
Ware Disposal (Alternative)
$442,510
$22,550
CR&R
$524,554
$1047594
Dickson
$544,440
$1241480
Ware Disposal
$5917261
$171,301'
Cannon Pacific
$629,735
$2097775
Nationwide Environmental Services
$6877589
$2677629
CleanStreet
$711,419
$291,459
Sunset
Property Service
$7429048
$322,088
Webco Sweeping
$8787551
$4581591
Rainbow
Disposal
$8951254
$4751294
Weekly Service Recommended
rlliOIRII March 23, 2010
Notes:
PERS Increases - Annual employer PERS contribution rates: 8.275% 15.406% 16.780% 18.480%
CNG Requirement - AQMD mandates newly purchased sweepers must meet alternative fuel requirement
Hauling & Disposal - City staff will maintain the operation of the hauling & disposal of debris
Transition - 43% of sweeping will be done by City staff during the phased implementation in FY11
`' March 23, 2010
$ 334 146.31
.aroWrtts
$ -
ak 2a4. d.+� „5
$
City (phased implementation) '-
Contract
$ 261 865.83
$ 432 558.80
$ 445 535.56
Disposal -
$ 72 658.70
$ 72 658.70
$ 72`658.70
Hauling
$ 75-,743-.2-0-
$ 76 673.04
$ 77 766.77
Revenue From OtherA encies
$ 24 000.00
$ 24 000.00
24000.00
Total
720,414.05
557 890.54
571,961 *04
Net Savings
$ 256 977.12
$ 459 934.80
$ 493 913.94
Notes:
PERS Increases - Annual employer PERS contribution rates: 8.275% 15.406% 16.780% 18.480%
CNG Requirement - AQMD mandates newly purchased sweepers must meet alternative fuel requirement
Hauling & Disposal - City staff will maintain the operation of the hauling & disposal of debris
Transition - 43% of sweeping will be done by City staff during the phased implementation in FY11
`' March 23, 2010
R eco m nd ed Contractor,
• Athens Services
• Lowest Responsive Bid
• 23 years of municipal street sweeping experience
• 15 municipalities in Orange and LA Counties
• Clean Fuel CNG Equipment
• Global Positioning System (GPS) in fleet for live tracking
• City-to-Private Transition Experience (5 cities)
• Letters of Recommendation
March 23, 2010
Bto3nefilts of CQnfracting Service
• Cost Savings: $5.8M over 10 -year Term of Contract
• $600,000 Transfer from Fleet Replacement to General Fund
• Clean Air Fleet Replaces Older Diesel Equipment
• CNG Fuel Use from City Yard
Royalty payments
• 150 Curb Miles Special Event Sweeping
No additional cost
• 250 Miles of Inclement Weather Sweeping
No additional cost
• Significant Cost Savings while Maintaining Weekly Service
• Reduction of 3 Positions
March 23, 2010
y e z v. teps �
• Meet with Athens representatives to negotiate
• March 24 — April 20
• Recommend that Council approve contract
April 27
• Projected Start Date
• June 1
''` March 23, 2010