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RPVCCA_CC_SR_2015_06_30_K_Street_Sweeping_Services_Joes_Sweeping_AgmtCITY OF MEMORANDUM PALOS VERDES TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: MICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORKS ,� DATE: JUNE 30, 2015 SUBJECT: AWARD AMENDMENT TO JOE'S SWEEPING, INC. CONTRACT FOR STREET SWEEPING SERVICES (In Support of 2014 City Council Goal #5: Government Efficiency, Fiscal Control and Transparency) REVIEWED: DOUG WILLMORE, CITY MANAGER®�6r Project Manager: Lauren Ramezani, Senior Administrative Analyst RECOMMENDATIONS 1. Approve Amendment #4, to the agreement to Joe's Sweeping Inc. d/b/a Nationwide Environmental Services for street sweeping services, extending the term effective July 1, 2015 through June 30, 2016 for an amount not -to -exceed $170,000. 2. Approve the assignment of the administration of the agreement with Joe's Sweeping, Inc. d/b/a Nationwide Environmental Services to EDCO Disposal Corporation (EDCO), 3. Authorize the Mayor and City Clerk to execute Amendment #4 to the agreement with Joe's Sweeping Inc. d/b/a Nationwide Environmental Services, for street sweeping services for FY 15-16. BACKGROUND On May 19, 2009, the City Council awarded a contract to Joe's Sweeping, Inc. d/b/a Nationwide Environmental Services (Nationwide) for the City's street sweeping services. The contract had an initial term of three years with three (3) one year optional extensions. On May 15, 2012, the City Council approved the First Amendment to the agreement, extending the agreement for one year. On April 2, 2013, the City Council approved the Second Amendment to the agreement, extending the term of the agreement for an additional year, terminating on June 30, 2014. On September 16, 2014, the City Council approved the Third Amendment to the agreement, extending the agreement until June 30, 2015. 1 Approve Amendment Street Sweeping Contract June 30, 2015 Page 2 DISCUSSION Nationwide has provided street sweeping services to the City for over 10 years. Frequent street sweeping is a best management practice for pollution prevention by reducing sediment, brake dust metals and overall debris in the roadway. It also helps the City stay in compliance with federal Municipal Separate Storm Sewer System (MS4) permitting. The current sweeping schedule of services is as follows: • Sweep Residential Streets once per month (12x/yr) • Sweep Non -Residential (Arterial) streets twice per month (24x/yr) • Sweep Western Avenue weekly (52x/yr) • Sweep City Parking Lots and Scenic Turnouts twice per month (24x/yr) • Sweep Citywide before Rainy Season (NPDES compliance) once annually (1x/yr) • Clean Bus Stops and Bus Shelters weekly (52x/yr) Additionally, Nationwide sweeps as directed: • PVIC and City Hall parking lots for City sponsored events • Impacted streets for cleanup and brush/debris removal after storms/inclement weather • Impacted streets for large roadway related events (i.e. marathons) Nationwide has agreed to the one year extension and has waived any eligible cost increases. The 4t" Amendment to Nationwide will authorize street sweeping services for FY 15-16. Additionally, on June 16, 2015 City Council approved assigning the administration of the street sweeping contract to EDCO Disposal Corporation (EDCO). EDCO is experienced with such contract administration duties and performs them for several other of their client cities such as La Mirada, Buena Park, La Palma and imperial Beach. The City would continue to make the determination of the needed sweeping frequencies and the budget for such sweeping. The street sweeping contract would remain separate from the residential solid waste contract. Starting July 1, 2015, EDCO would receive invoices for the street sweeping activities, handle day-to-day contract administration, oversee operations, and customer service. The cost of the street sweeping will be paid by the City, via an invoice from EDCO to the City. There will be no markups or additional EDCO administration costs added. Finally, staff plans to implement a competitive bid/proposal process with the intent of awarding a new contract commencing July 1, 2016. All subsequent sweeping contracts, for the duration of EDCO's residential solid waste agreement, would also be assigned to EDCO for contract administration. Staff requests the Council's for: 1) approval and the Mayor's execution of this amendment, and 2) assignment of the administration of the sweeping contract to EDCO. FISCAL IMPACT The newly adopted FY 15-16 Street Maintenance -Non Pavement and Storm Water Quality Programs' budgets have sufficient funds to cover the approved expenditure. Attachments: 1- Original Contract for Street Sweeping Services to Joe's Sweeping, Inc. (page 3) 2- First, Second and Third Amendments to Joe's Sweeping, Inc. (page 6) 3- Draft Fourth Amendment to Joe's Sweeping, Inc. (page 13) 2 Attachment 1 CITY OF RANCHO PALOS VERDES CONTRACT FOR: STREET S'W'EEPING SERVICES FISCAL YEAR 2009/10-2010/11-2011/12 THIS AGREEMENT is made and entered this Nineteenth day of May . 2002,, by and between the CITY OF RANCHO PALOS VERDES, hemina#ierrefetred to as "City" and ATIONWII)E ENVIRONMENTAL SERVICL�S DIV. OF JQE'S SWEEPING, )NQ., hereinafter referred to as "Contractor." WJTNESSETH: WHEREAS, Contractor and Contractor's Surety are providing the bonds attached hereto and incorporated by this reference, and WHEREAS, City desires to contract with Contractor to perform the services detailed in this contract, including the Proposal, and WHEREAS, Contractor has represented that it is fully qualified to assume and discharge such responsibility, NOW, THEREFORE, the parties hereto do agree as follows: Scope of Services. C,`ityhereby employs Contractor to perform ifae work and provide the services and materials for the project identified as: STMT SWEEPING SERV=,S FISCAL A0 Z009/10-2010/kl 7011!12 as described in these -Plans and Specifications, attached hereto and incorporated herein bythisreference, including miscellaneous appurtenant work. Suchwork shall be performed in a good and workmanlike manner, under the terms as stated herein and in these Plans and Specifications, and in accordanct: with the latest edition of the Joint Coopembve Committee, Southern California Chapters of the American Public Works Association and the Associated General Contractors of America, document entitled "Standard Specifications," in the event of any conflict between the tenrts of this agreement and any of the above -referenced documents, the terms of this agreement shall be controlling. Ia. Term: The contract shall commence on ruly 1, 2009 and shall continue in full force and effect through and iuclu ttglunt 30, 2012 unless 4arller term1natlon as provided in Section 5 herein. The contract may be extended to three (3) additionalvne year terms by tntfttrai consent of both parties. 2. Compensation, In consideration of the services rendered hereunder, Contractor shall be paid according to the prices as submitted on the Bid Sheet of the Proposal, attached hereto as apart of these Plans and Specifications and in accordance with the Special Provisions. 3. I.,lr dnendem Contractor, It is speci fimlly understood and agreed by all parties hereto that Contractor is, for the purposes of this Agreement, an independent contractor and not an employee of the City. Accordingly, Contractor shall not be deemed the City% employee for any purpose whatsoever. Contractor shall not incur or have the power to incur any debt, obligation or liability whatever for or against City. 4. Assiarurrent. This agreement may not be assigned by Contractor, in whole or in part, witbout the prior written consent of City. 3 Termination. This Aweementrnay be canceled by City at anytime without penalty upon thirty- (30) days' written notice. In the event of termination without fault of Contractor, the City shall pay Contractor for all services rendered prior to date of termination, and such payment shall be in full satisfaction of all services rendered hereunder. Workers' Compensation Insurance. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, the Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to under take self- insurance in accordance with the provisions of that code, and I will complywith such provisions before commencing the performance of the work of this contract." Dispute Resolution. This contract is subject to the provision of Article 1.5 (commencing at Section 20104) of'Division 2, part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the contractor, for the response to such claims by the contracting public agency, for a mandatory meet and confer conference upon the request of the contractor, for mandatory non-binding mediation in the event of litigation is commenced, and formandstoryjudicial arbitration upon the failure to resolve the dispute through mediation. This contract hereby incorporates the provisions of Article 1,5 as though fully set forth herein. quit:ltecoveryof.A#ornevFees&Costs. Shou)deither partybringany action toprotectonenforceits rights hereunder, the prevailing party insuoh action shall be entitled to recover, in addition to all other relief, its reasonable attorney fees and court costs. Insurance Reouimments. The Contractor shall at all braes, during the term of this contract, carry, maintain and keep in full force and effect, a policy orpolicies of (1) general liability insurance with an insurance company admitted to wtiteinsuranee in California, or carriers witha rating ot, or equivalent to, AND by A. M. Best & Company to, and approval by, the Director of Public Works and City Attorney, within minimum linnits of One Million Dollars ($1,000,000,00) combined single limit coverage with an aggregate of T-wo Wlion Dollars (52,000,000.00) against arty injury, death, loss or damage as a result of wrongfW or negligent acts or omissions by The Contractor, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) automotive liability insurance With a minimum combined single limits. coverage of One Million Dollars ($1,000,000.00) with an aggregate of Two Million Dollars ($2,000,000.00); and (3) woiker's compensation insurance as required by law. The Contractor shall at all lima during the term of this contract carry, maintain and keep in full force and effect a policy or policies of Workers' Compensation insurance and shall provide to the City evidence of such coverage in the form set forth herein. The City, its officers, employees, attorneys, and volunteers shall be named as additional insured on the policy (ies) as to comprehensive general liability, property damage, and worker's compensation coverages. 1. All insurance policies shallprovide that the insurance coverage shall not be von -renewed, canceled, reduced, or otherwise modified (except through addition of additional insured to thepolicy)by the insurance carrier without the insurance carrier giving the City thirty (30) day's prior written notice thereof. The Contractor agrees that it will not cancel, reduce or otherwise modify said insurance coverage. L" i 2. The Contractor agrees that if it does not keep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost, the City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of the Contractor and the cost of such insurance may be deducted, at the option of the City, from payments due the Contractor. 3. The Contractor shall submit to the City (1) insurance certificates indicating compliance with the minimum wurker' compensation insurance requirements above, and (2) insurance policy endorsements above, not less than one (1) day prior to beginning of performance under this Agreement. Endorsements must be execttted on the City's appropriate standard forms entitled "Additional Insured Endorsement," copies ofwhich are attached hereto. 4. Upon the request of the Director of Public Works, or his authorized representative, the Contractor shall provide written notice to tht Director of Public Works indicating all litigation and claims (past, current, or anticipated) between the Contractor and any claimants that may affect the aggregate insurance coverage. 10. Licensed in accordance with the City of Rancho Palos Verdes: License No, 09 0003214 Date Issued: ;7— �!'L(d9 IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above written. CITY 9rRAYCHOEqES By: _ Mayor ATTEST: n City Clerk CONTRACTOR: By: •9'jfl{�11L� . Printed Name Date 5 Attachment 2 First Amendment to Agreement between The City of Rancho Palos Verdes and Nationwide Environmental Services div. of Joe's Sweeping, Inc, This agreement Is the first amendment to the Street Sweeping Maintenance Services between the City of Rancho Palos Verdes ("CITY") and Nationwide Environmental Services div. of Joe's Sweeping, Inc. ("CONTRACTOR"), dated May 19, 2009 ("Original Agreement"). This first amendment Is effective as of July 1, 2012 and is being made to extend the term of the Agreement for one year. Section 1. 1 a, Term: of Agreement Is hereby amended to read as follows: "This Agreement shall commence on July 1, 2012 and shall expire on June 30, 2013, unless sooner terminated pursuant to Section 5 of this Agreement. Additionally, there are two (2) one-year options to renew the Agreement for FY 2013-2019 and 2014- 20`15 0142015 with the mutual written consent of both parties." Section 2. Except as expressly amended by this amendment to the Original Agreement, Section 1 Scope of Services: and all other provisions of the Agreement shall remain In full force and effect as written in the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. ATTEST: By: l� Y d City Clerk CITY OF RANCHO PALOS VERDES ('CITY") By: V,�Y Mayor NATIONWIDE ENVIRONMENTAL SERVICE div. OF JOE'S SWEEPING, INC. ('CONTRA Signature: Printed Name: Ani samuelian Title: Vice President no Second Amendment to Agreement between the City of Rancho Palos Verdes and Nationwide Environmental Services Div. of Joe's Sweeping, Inc. This agreement Is the second amendment ("Second Amendment") to the street sweeping services agreement between the City of Rancho Palos Verdes ("City") and Nationwide Environmental Services Div. of Joe's Sweeping, Inc. ("Contractor"), dated May 19, 2009 ("Agreement"). The first amendment, which was effective July 1, 2012, extended the term of the Agreement for one year, This Second Amendment is effective as of July 1, 2013, and is being made to extend the term of the Agreement for one year more year. Section 1. Section 1 a of the Agreement is hereby amended to read as follows: "Term of Contract. This Agreement shall commence on July 1, 2009 and shall terminate on June 30, 2014, unless sooner terminated pursuant to Section 5 of this Agreement. Additionally, there is one (1) one-year option to renew the Agreement for fiscal year 2014-2015 with the mutual written consent of both parties." Section 2. Section 2 of the Agreement is hereby amended to read as follows: "Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of one hundred and seventy thousand dollars ($170,000,00) each fiscal year in accordance with the prices reflected on the Bid Sheet of the Proposal, which is attached hereto as Exhibit "A" and incorporated herein by this reference" Section 3. Section 9(1) of the Agreement is hereby amended to read as follows: "All insurance policies shall provide that the insurance coverage shall not be cancelled or modified (except through addition of additional insured to the policy) by the Insurance carrier without the insurance carrier giving the City thirty (30) days prior written notice thereof. Additionally, Contractor shall provide notice to the City within three business days if it receives a cancellation or policy revision notice from the insurer. Contractor agrees that it will not cancel, reduce or otherwise modify said insurance coverage." Section 4. Section 9(3) of the Agreement is hereby amended to read as follows: The Contractor shall submit to the City: (1) copies of the entire insurance policy for all required insurance; (2) insurance certificates indicating compliance with the minimum workers' compensation insurance requirements above, and (3) insurance policy endorsements above, not less than one (1) day prior to beginning of performance under this Agreement. Endorsements must be executed on the City's appropriate standard forms titled "Additional Insured Endorsement," copies of which are attached hereto. R6876-001)1\1 642106v1.dm 7 Section 5. Section 10 of the Agreement is hereby added to read as follows: "Notice. Except as otherwise required by law, any payment, notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hared or overnight courier service during City's regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Les M. Jones Ii, Interim Public Works Director City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONTRACTOR: Never Samuelian Nationwide Environmental Services Div. of Joe's Sweeping, Inc. 11914 F�rnt S r nt Nr_)rwalk , CA 906,90 Section 6. The Attachment titled "Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution" is hereby amended to read as stated in Exhibit B, which is attached hereto and Incorporated herein by this reference. Section 7. Except as expressly amended by this amendment to the Agreement, all of the other provisions of the Agreement shall remain in full force and effect as written In the Agreement. [Signatures on next page.j 86876-0001 \1642106vtdw E • IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year written below. Dated: April -�D , 2013 NATIONWIDE ENVIRONMENTAL SERVI E5 DIV. 0 �IOE'S SWEEPII�TG INC. 'Conk actor") By: Printed Name: Ani samuelian Title: yjQe. pzesident By: Printed Name: Suzy samuelian Title: Corporate secret-ary CITY OF RANCHO PALOS VERDES ("CIV) ByC �L:22:2 � Ma or ATTEST: By: Aad, 4wa e `��� 3 City Clerk R6876-000111542106v1.doc 4 i t Third Amendment to Agreement between the City of Rancho Palos Verdes and Nationwide Environmental Services Div. of Joe's Sweeping, Inc. This agreement is the third amendment ("Third Amendment") to the street sweeping services agreement between the City of Rancho Palos Verdes ("City") and Nationwide Environmental Services Div. of Joe's Sweeping, Inc. ("Contractor"), dated May 19, 2009 ("Agreement'). The first.amendment, which was effective July 1, 2012, extended the term of the Agreement for one year. The second amendment, which was effective July 1, 2013, likewise extended the term of the Agreement for one year. This Third Amendment is in effect as of September 16, 2014, and is being made to extend the term of the Agreement for one more year. Sedflon 1. The name of the Contractor is hereby amended from "Nationwide Environmental Services Div. of Joe's Sweeping, Inc." to "Joe's Sweeping, Inc. d/b/a Nationwide Environmental Services.' Section 2. Section 1 a of the Agreement is hereby amended to read as follows: "Term of Contract. This Agreement shall commence on July 1, 2009, and shall terminate on June 30, 2015, unless sooner terminated pursuant to Section 5 of this Agreement," Section 3. Section 10 of the Agreement Is hereby amended to read as follows: "Notice. Except as otherwise required by law, any payment, notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during City's regular business hours or (b) on the third business dayfollowing deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Michael Throne, Public Works Director City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONTRACTOR: Never Samuelian Joe's Sweeping, Inc. 11914 Front Street Norwalk, CA 90650" P6876.0001 \16421060 .doc 10 Section 4. The following Section 11 is hereby added to the Agreement: "Licensed in accordance with the City of Rancho Palos Verdes under "Nationwide Environmental Services," license number 3274-14, which was issued on January 9, 2014, Section 6. The following Section 12 is added to the Agreement: "Fictitious Business Name Statement. Joe's Sweeping, Inc. has provided to the City a copy of its Fictitious Business Name Statement to utilize the name Nationwide Environmental Services. This Fictitious Business Name Statement was filed with the County of Los Angeles on November 10, 2009, and thus will expire on November 9, 2014. The Contractor shall file a new Fictitious Business Name Statement with the County of Los Angeles before November 9, 2014 and shall immediately provide the City with a copy of the new flied Fictitious Business Name Statement, marked by the County of Los Angeles, or the City'shaii have the discretion to immediately terminate the Contract." Section 6. Contractor shall obtain new faithful performance and payment bonds to cover the period of time from September 16, 2014 through June 30, 2015, each in an amount that is not less than the total compensation amount of this Third Amendment; In lieu of a new faithful performance bond, Contractor may submit proof from the surety company that the existing faithful performance bond has been extended for duration of the new term. All bonds must be submitted using the required forms, which are attached hereto and incorporated herein by this reference, or in any other form approved bythe City Attorney." Section 7. Except as expressly amended by this amendment to the Agreement, all of the other provisions of the Agreement shall remain in full force and effect as written In the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment as of the date and year written below. [Signatures on next page] R6676 -000W 5421060 -doc 11 Dated: September_, 2014 A'T TES`t gy:_JAou i City Clerk R6876*001\1 &421 06\1 1,doo JOE'S SWEEPING, d/b/a NATIONWE EN R NMENi SERVI(' hS "Co ra or") EY. Printed Name: Title zo Printed Title: CITY OF RANCHO PALOS VERDES 12 Attachment # 3 Fourth Amendment to Agreement between the City of Rancho Palos Verdes and Joe's Sweeping, Inc. This agreement is the fourth amendment ("Fourth Amendment") to the street sweeping services agreement between the City of Rancho Palos Verdes ("City") and Joe's Sweeping, Inc. d/b/a Nationwide Environmental Services ("Contractor"), dated May 19, 2009 ("Agreement"). The First Amendment, which was effective July 1, 2012, extended the term of the Agreement for one year. The Second Amendment, which was effective as of July 1, 2013, extended the term of the Agreement for an additional year, among other changes. The Third Amendment, which was effective September 16, 2014, extended the term of the Agreement for an additional year, amended the Agreement to reflect Contractor's name change, and made other changes. This Fourth Amendment, which is effective July 1, 2015, will extend the term for one year. Section 1. Section 1 a of the Agreement is hereby amended to read as follows: "Term of Contract. This Agreement shall commence on July 1, 2009 and shall terminate on June 30, 2016, unless sooner terminated pursuant to Section 5 of this Agreement." Section 2. City has assigned responsibility for administering the Agreement to EDCO Disposal Corporation (EDCO), City's authorized residential solid waste collector. Contractor shall submit all invoices and other communications to EDCO. EDCO is responsible for day-to-day contract administration, overseeing operations, and customer service. Contractor acknowledges that EDCO is authorized by City to provide direction to Contractor in the implementation of the Agreement, to the extent such direction is consistent with the Agreement. Section 3. Except as expressly amended by this Fourth Amendment to the Agreement, all of the other provisions of the Agreement, as previously amended by the First, Second, and Third Amendments, shall remain in full force and effect. R6876 -000111542106v3. doc 13 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year written below. Dated: June , 2015 JOE'S SWEEPING, INC., d/b/a NATIONWIDE ENVIRONMENTAL SERVICES ("Contractor") By: Printed Name: Title: Date: ATTEST: By: City Clerk CITY OF RANCHO PALOS VERDES ("City") Mayor R6876-0001 \15421060.doc 14