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21-0504_RT LAWRENCE CORPORATION_Agenda Report_E6City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Charlie View, Assistant City Manager PREPARED BY: Noreen Swiontek, Senior Management Analyst DATE: May 4, 2021 SUBJECT: Utility Department Contract Extensions Through Fiscal Year 2021- 2022 to Accommodate the Water and Sewer Utility Annexation Schedule RECOMMENDATION: 1.Waive the formal request for proposal process pursuant to Municipal Code Title 3, Chapter 4, Section 3-4.310 (e) for supplies and services associated with water and sewer utilities operations; and, 2.Approve and authorize the City Manager to execute one-year agreement extensions through June 30, 2022, at the current agreement rates for services and supplies related to the water and sewer operations with the following firms: •Brenntag Pacific Inc. for various chemical products; •JCI Jones Chemicals Inc. for various chemical products; •Sterling Water Technologies LLC for various chemical products; •King Lee Chemical Company for various chemical products; •Environmental Compliance Inspection Services (ECIS) for fats, oil, grease (FOG) and food service establishments NPDES inspection services increasing the agreement compensation $21,316 for one additional year; •RT Lawrence Corporation for lockbox services increasing the agreement compensation $4,000 for one additional year; •NCR Payment Solutions, FL, LLC for debit and credit card processing services in an amount not to exceed $165,000 annually; and, •Santa Margarita Water District for water meter reading services in an amount not to exceed $95,000 annually. 5/4/2021 E6 City Council Agenda Report May 4, 2021 Page 2 of 3 EXECUTIVE SUMMARY: The City continues to work toward transferring its water and sewer utility systems to the Santa Margarita Water District (SMWD). Several of the City’s agreements associated with water and sewer operations will expire on June 30, 2021. Staff has previously solicited for, and received, bids for supplies and services from the firms noted above. Conducting another bid solicitation process with the approaching transfer of the water and sewer utility systems to SMWD would not be practical. Each of the firms listed above have agreed to extend agreements with the City at the current rates established in their agreements. Staff recommends that the term of the City’s agreements for water and sewer utilities systems be extended to June 30, 2022, to ensure continued operational services until the annexation is complete. In the event that the City’s water and sewer systems are transferred to SMWD during the one-year term of the proposed amendments, the agreements would be assigned to the successor agency or terminated upon a 30-day notice as provided by the terms of the original agreements. FISCAL IMPACT: There are sufficient funds in the Utilities Department proposed budget for Fiscal Year 2021-22 to accommodate the execution of these amendments. ENVIRONMENTAL IMPACT: The recommended action would not be subject to CEQA pursuant to Section 15060(c)(3) of CEQA Guidelines because the action is not a project as defined in Section 15378 of the CEQA Guidelines, and the action would have no potential for resulting in physical change to the environment, directly or indirectly. PRIOR CITY COUNCIL REVIEW: Not applicable. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission or committee review. NOTIFICATIONS: Brenntag Pacific Inc. JCI Jones Chemicals Inc. Sterling Water Technologies LLC. King Lee Chemical Company Environmental Compliance Inspection Services RT Lawrence Corporation NCR Payment Solutions, FL, LLC Santa Margarita Water District City Council Agenda Report May 4, 2021 Page 3 of 3 ATTACHMENTS: Attachment 1 – Brenntag Pacific Inc. Amendment No. 1 Attachment 2 – JCI Jones Chemicals, Inc. Amendment No. 1 Attachment 3 – Sterling Water Technologies LLC Amendment No. 1 Attachment 4 – King Lee Chemical Company Amendment No. 3 Attachment 5 – Environmental Compliance Inspection Services Amendment No. 3 Attachment 6 – RT Lawrence Corporation Amendment No. 2 Attachment 7 – NCR Payment Solutions, FL, LLC Amendment No. 2 Attachment 8 – Santa Margarita Water District Amendment No. 2 61147.02100\33865454.2 Page 1 of 3 AMENDMENT NO. 1 AGREEMENT FOR PURCHASE OF CHEMICALS BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND BRENNTAG PACIFIC, INC. 1. Parties and Date. This Amendment No. 1 to the Agreement For Purchase of Chemicals is made and entered into as of this 1st day of July, 2021, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and Brenntag Pacific, Inc., a Delaware corporation with its principal place of business at 10747 Patterson Place, Santa Fe Springs, CA 90670 (“Supplier”"). City and Supplier are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 Agreement. The City and Supplier have entered into an agreement entitled “AGREEMENT FOR THE PURCHASE OF CHEMICALS” dated June 4, 2019, (“Agreement”) for the purpose of retaining the services of Supplier to provide Ammonium Hydroxide 19%, Sodium Permanganate 20%, and Sodium Bisulfite 25% to the City for use at its Groundwater Recovery Plant. 2.2 Amendment Purpose. The City and Supplier desire to amend the Agreement to extend the term of the Agreement through June 30, 2022. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 22 of the Agreement. 3. Terms. 3.1 Amendment. Section 1 of the Agreement is hereby amended in its entirety to read as follows: Attachment 1 Page 1 of 3 61147.02100\33865454.2 Page 2 of 3 1. Agreement Duration. This Agreement shall commence on July 01, 2019 and shall be in effect up to and including June 30, 2022. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1. 3.4 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5 Counterparts. This Amendment No. 1 may be signed in counterparts, each of which shall constitute an original. [Signatures on Next Page] Attachment 1 Page 2 of 3 61147.02100\33865454.2 Page 3 of 3 SIGNATURE PAGE FOR AMENDMENT NO. 1 AGREEMENT FOR PURCHASE OF CHEMICALS BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND BRENNTAG PACIFIC, INC. CITY OF SAN JUAN CAPISTRANO Approved By: Benjamin Siegel City Manager Date Attested By: Maria Morris, City Clerk Approved As To Form: City Attorney BRENNTAG PACIFIC, INC. Signature Name Title Date Laura Tua Municipal Bid Manager April 14, 2021 Attachment 1 Page 3 of 3 Attachment 2 Page 1 of 3 Attachment 2 Page 2 of 3 Attachment 2 Page 3 of 3 Attachment 3 Page 1 of 3 Attachment 3 Page 2 of 3 Attachment 3 Page 3 of 3 Attachment 4 Page 1 of 3 Attachment 4 Page 2 of 3 Attachment 4 Page 3 of 3 61147.02100\33865965.2 Page 1 of 6 AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT FOR FAT’S, OILS AND GREASE (FOG) AND FOOD SERVICE ESTABLISHMENT (FSE) NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) INSPECTION SERVICES BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ENVIRONMENTAL COMPLIANCE INSPECTION SERVICES 1. Parties and Date. This Amendment No. 3 to the “Professional Services Agreement For Fats, Oils and Grease (FOG) and Food Service Establishment (FSE) National Pollution Discharge Elimination System (NPDES) Inspection Services” is made and entered into as of this 1st day of July, 2021 by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and Environmental Compliance Inspection Services, a Sole Proprietorship, with its principal place of business at 33322 Marina Vista Dr. Dana Point, CA 92629 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 Consultant. The City and Consultant have entered into an agreement entitled “Professional Services Agreement For Fats, Oils and Grease (FOG) and Food Service Establishment (FSE) National Pollution Discharge Elimination System (NPDES) Inspection Services” dated September 5, 2017 (“Agreement”) for the purpose of retaining the services of Consultant to provide FOG and FSE NPDES Inspections. 2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to extend the term and increase the not-to-exceed compensation amount under the Agreement. The parties have heretofore entered into Amendment No. 1 dated September 5, 2019 and Amendment No. 2 dated July 1, 2020. 2.3 Amendment Authority. This Amendment No. 3 is authorized pursuant to Section 23 of the Agreement. 3. Terms. Attachment 5 Page 1 of 6 61147.02100\33865965.2 Page 2 of 6 3.1 Amendment. Section 1 of the Agreement is hereby amended in its entirety to read as follows: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibits A, A-1, and A-2. 3.2 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as follows: 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for services specified in Exhibits A, A-1, and A-2 in accordance with the Schedule of Charges set forth in Exhibits B, B-1, and B-2, respectively. b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of One Hundred Nineteen Thousand Eight Hundred and Sixty Dollars ($119,860). This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. 3.3 Amendment. Section 5 of the Agreement is hereby amended in its entirety to read as follows: 5. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). Consultant shall complete the services required hereunder on or before June 30, 2022. The Notice to Proceed shall set forth the date of commencement of work. 3.4 Continuing Effect of Agreement. Except as amended by Amendment No. 1, Amendment No. 2, and this Amendment No. 3, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 3. From and after the date of this Amendment No.3, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by Amendment No. 1. Amendment No. 2, and this Amendment No. 3. 3.5 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 3. 3.6 Severability. If any portion of this Amendment No. 3 is declared invalid, illegal, or Attachment 5 Page 2 of 6 61147.02100\33865965.2 Page 3 of 6 otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Attachment 5 Page 3 of 6 Attachment 5 Page 4 of 6 61147.02100\33865965.2 Page 5 of 6 EXHIBIT A-2 REVISED SCHEDULE OF SERVICES Consultant shall complete all required Bi-Annual Grease Control Devise Inspections spaced out to occur every 6 months and to begin at a city approved month once the contract is awarded. Consultant will provide updated Excel format inspections database to the City FOG Program Manager within two weeks of the inspection program completion. Consultant shall complete the required ANNUAL FES-NPDES inspection to begin at a city approved month once the contract is awarded. Consultant will provide the updated Excel format inspections database to the City FOG/NPDES Program Manager within two weeks of the inspections program. Attachment 5 Page 5 of 6 61147.02100\33865965.2 Page 6 of 6 EXHIBIT B-2 SCHEDULE OF CHARGES Item No. Description Quantity Unit Cost Total Annual Item Cost Total Cost for Two Years 1.1 Grease Control Device Inspections (Bi- annual) 199 Lids/devices $ 17 per lid $6,766 ($3,383 X 2) NA 1.2 Food Service Establishment (FSE) NPDES Inspections (annual) 180 FSE’s $ 80 per FSE $ 14,400 NA Project Total $21,166 NA Total In Writing: The total Annual (2021-22) cost for the GCDI Program will be Six thousand seven hundred and sixty six dollars per year. The total Annual (2021-22) cost for the FSE-NPDES Program will be Fourteen thousand four hundred dollars per year. Hourly Rate for any meeting(s), consultation or other work relevant to the Scope of Work as required by this proposal shall be Seventy-Five dollars ($75) per hour. Attachment 5 Page 6 of 6 Page 1 of 3 AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND RT LAWRENCE CORPORATION 1. Parties and Date. This Amendment No. 2 to the Professional Services Agreement is made and entered into as of this 1st day of July, 2021, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and RT Lawrence Corporation, a California Corporation, with its principal place of business 7740 Painter Avenue, Suite 100, Whittier, California 90602 (“Contractor”). City and Contractor are individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 Contractor. The City and Contractor have entered into an agreement entitled “Professional Services Agreement” dated July 1, 2015, (“Agreement”) for the purpose of retaining the services of Contractor to provide Lockbox Services. 2.2 Amendment Purpose. The City and Contractor desire to amend the Agreement to extend the term for an additional one-year term ending June 30, 2022. All other terms and conditions will remain the same as noted in the original agreement. 3. Terms. 3.1 Amendment. The following sections of the Agreement are hereby amended in their entirety to read as follows: Section 2 - Term. This Agreement shall commence on the effective date and shall terminate, and all services required hereunder shall be completed, no later than June 30, 2022, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual written consent, extend the term of this Agreement, if necessary, to complete the Services. Attachment 6 Page 1 of 4 Page 2 of 3 Section 3 - Compensation. Total compensation for services under this Agreement shall not exceed $59,000 for the seven-year term of the agreement, as amended, at the rates set forth in Exhibit C of the original agreement, the effective date of which was July 1, 2015. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2. 3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Attachment 6 Page 2 of 4 Attachment 6 Page 3 of 4 Page 3 of 3 SIGNATURE PAGE FOR AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND RT LAWRENCE CORPORATION CITY OF SAN JUAN CAPISTRANO Approved By: Ben Siegel City Manager Date Attested By: Maria Morris, City Clerk Approved As To Form: City Attorney RT LAWRENCE CORPORATION Signature Name Title Date John Phillips Director 4/13/2021 Attachment 6 Page 4 of 4 Attachment 7 Page 1 of 4 Page 2 of 3 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2. 3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Attachment 7 Page 2 of 4 Attachment 7 Page 3 of 4 Attachment 7 Page 4 of 4 Page 1 of 3 AMENDMENT NO. 2 TO THE PERSONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SANTA MARGARITA WATER DISTRICT 1. Parties and Date. This Amendment No. 2 to the Personal Services Agreement is made and entered into as of this 1st day of July, 2021, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and Santa Margarita Water District, a public agency with its principal place of business at 26111 Antonio Parkway, Rancho Santa Margarita, CA 92688, (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 The City and Consultant have entered into an agreement entitled “Personal Services Agreement dated February 17, 2015, (“Agreement”) for the purpose of retaining the services of Consultant to provide Municipal Water Meter Reading Services. 2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to extend the Term. 2.3 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 2 of the Agreement. 3. Terms. 3.1 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as follows: The Term of the Agreement shall commence on the effective date and shall terminate, and all services required hereunder shall be completed, no later than June 30, 2022. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No.2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No.2. From and after the date of this Amendment No.2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2. Attachment 8 Page 1 of 4 Page 2 of 3 3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Attachment 8 Page 2 of 4 Attachment 8 Page 3 of 4 Attachment 8 Page 4 of 4