AVALON CITY COUNCIL MEETING WHICH WILL ALSO INCLUDE
A MEETING OF THE CITY COUNCIL ACTING AS
THE HOUSING AUTHORITY
TUESDAY, APRIL 18, 2023 - 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361
AGENDA
Due to social distancing recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA) and the County of Los Angeles, and pursuant to findings made under AB 361, the CITY OF AVALON'S CITY COUNCIL SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.
Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in Oral Communication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of COVID-19. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to [email protected].
For the public's convenience, but not participation, the meeting can be viewed:
On local cable: Catalina Broadband Solutions channel 3
Streaming Online: www.cityofavalon.com/meetings
*Streaming on Facebook Live: www.facebook.com/CityOfAvalonOfficial Streaming on YouTube: https://www.youtube.com/CityofAvalonCA
FOR REMOTE PUBLIC PARTICIPATION
1) Join the Meeting via Phone Conference (Voice Only):
Phone Number: (669) 444-9171,
Meeting ID: 892 5478 7858
Passcode: 210927
When you would like to comment during the meeting enter *9 on the phone's key pad to activate the "raise hand" button at the time the Agenda Item is being presented for City Council consideration.
HOUSING AUTHORITYICITY COUNCIL AGENDA
APRIL 18, 2023
PAGE 2
CALL TO ORDER / ROLL CALL/ PLEDGE OF ALLEGIANCE / INVOCATION
ANNOUNCEMENTS / WRITTEN COMMUNICATIONS
DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT / CITY ATTORNEY REPORT
COUNCILMEMBER REPORTS / MAYOR REPORT
ORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken on non- agenda items at this meeting. Speakers should limit comments to two (2) minutes each.
PRESENTATIONS:
1. Finance Director Matthew Baker will provide an update on current year revenue estimates, beginning reserves for the upcoming fiscal year, and preliminary revenue estimates for the FY23-24 budget.
CONSENT CALENDAR
1. Warrants
Expenditures Submitted for Approval
• Warrants in the amount of $779,918.33.
• One payroll in the amount of $208,649.75.
• Four electronic fund transfers totaling $156, 100.96.
Recommended Action
Approve total expenditures for March 27, 2023 through April 7, 2023 totaling $1,144,669.04.
2. Housing Element Annual Progress Report
State law requires City General Plans to include a Housing Element that adequately plans to meet the housing needs for everyone in the community. Government Code §65400 mandates each elected board submit an annual progress report to the California Department of Housing and Community Development and the Governor's Office of Planning and Research on the status and progress of Housing Element implementation.
Recommended Action
Receive and file the Housing Element Annual Progress Report for 2022 and direct staff to submit the Housing Element Progress report to the California Department of Housing and Community Development.
HOUSING AUTHORITY/CITY COUNCIL AGENDA
APRIL 18, 2023
PAGE 3
GENERAL BUSINESS
3. Contract Assignment for the Operations, Management, Maintenance, and Monitoring of the City of Avalon Wastewater System
In early 2022, the current contractor for the operation management, maintenance, and monitoring of the City's wastewater system notified City Staff of their intention to exit the water and wastewater service market. Though the contractor indicated it could fulfill the remaining term of the agreement in order to better ensure a smooth operational transition, assigning the remaining term of the agreement to a qualified operator was in the City's best interests.
Recommended Action
1. Authorize the City Manager to assign the remaining term of an agreement with Montrose Water and Sustainability Services, Inc. for the operation, management, maintenance, and monitoring of the City of Avalon Wastewater System to PERC Water Corporation. 2. Authorize the City Manager to negotiate a contract extension with PERC Water Corporation for an additional three year term.
4. Contract Assignment for Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
With limited exceptions, for more than 30 years, a singular waterfront business has been contracted by the City for both the annual installation, maintenance and operation of the End Float located at the end of the City's float at the base of the Green Pleasure Pier, and the semi-exclusive shore boat franchise agreement. Recently, the principal operator from Catalina Coastal Tours indicated their desire to assign the remaining term of the Shore Boat Agreement to Catalina Coastal Shoreboat Services, LLC.
Recommended Action
Consider a request to assign the remaining term of the semi-exclusive shore boat franchise agreement with Catalina Coastal Tours, LLC to Catalina Coastal Shoreboat Service, LLC. Provide direction to Staff.
First Reading of an Ordinance Amendment Chapter 4-4. 1703 of the Vehicle Code Setting a Date for Mandating Electrification of Commercial Autoettes On December 14, 2022, the City Council held a Special City Council meeting to discuss vehicles in Avalon. By consensus, the City Council directed Staff to move forward on implementing a phased action plan to speed up the state established timeline for conversion from gas to electric vehicles by requiring new commercial autoettes to be electric.
Recommended Action
1. Introduce and waive the all further readings of an ordinance of the City of Avalon amending Chapter 4-4.103 of the Avalon Municipal Code, setting a date for mandating electrification of commercial autoettes. 2. Adopt a resolution waving registration and vehicle hearing fees for commercial autoettes converted to electric in advance of the January 1, 2024 deadline for a period of three years.
HOUSING AUTHORITY/CITY COUNCIL AGENDA
APRIL 18, 2023
PAGE 4
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Name of Case: Service Employees International Union, Local 721 v. City of Avalon Case Number: 23STCP00302
** The following item of Closed Session is the City Council acting as the Housing Authority.**
2. CONFERENCE WITH LEGAL COUNSEL - REAL PROPERTY NEGOTIATIONS Property: 128 Marilla Avenue
Agency Negotiator: City Manager
Negotiating Parties: City Manager and Captains Foundation Under Negotiation: Price and Terms of Payment
ADJOURN
NOTICE OF POSTING
1, Devin Elise Hart, declare that the City Council Agenda for Tuesday, April 18, 2023 was posted on Friday, April 14, 2023 on the City's website www.cityofavalon.com, and at City Hall, 410 Avalon Canyon Road.
Di Elise taut
Devin Elise Hart, Management Analyst
CITY OF AVALON CITY COUNCIL
MEETING DATE: April 18, 2023 AGENDA ITEM:
ORIGINATING DEP: Finance CITY MANAGER: DIM
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve total expenditures for March 27, 2023 through April 7, 2023 totaling $1,144,669.04.
REPORT SUMMARY: These disbursements through April 7h are comprised of warrants totaling $779,918.33, one payroll totaling $208,649.75, and other electronic fund transfers totaling $156,100.96.
ITEM DESCRIPTION AMOUNT
GF US BANK WARRANTS CK# 35792-35859 779,918.33
208,649.75
EFT - CALPERS MEDICAL 81,166.31 04/04/23
EFT - CALPERS RETIREMENT 37,082.12 03/28/23
EFT - CALPERS RETIREMENT
EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,284.11 TOTAL DISBURSEMENTS | $ 1,144,669.04
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY22-23 Budget.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS: Audit Certificate, Warrant List, US Bank Credit Card Detail
CITY OF AVALON
MARCH 27, 2023 - APRIL 7, 2023 DISBURSEMENTS
April 18, 2023
ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 35792 35859 779.918.33 03/31/23 PAYROLL 208,649.75 04/07/23
EFT • CALPERS MEDICAL 81,166.31 04/04/23
EFT - CALPERS RETIREMENT 37.082.12 03/28/23
EFT - CALPERS RETIREMENT 36,568.42 03/31/23
EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,284.11 04/07/23 TOTAL DISBURSEMENTS S 1,144,669.04
CERTIFICATE
IN ACCORDANCE WITH SECTION 32702
OF THE GOVERNMENT CODE, I CERTIFY
THAT THE ABOVE DEMANDS ARE ACCURATE
AND THAT FUNDS ARE AVAILABLE FOR
PAYMENT.
APPROVED AND AUDITED THIS
18TH DAY OF APRIL 2023 I CERTIFY UNDER PENALTY OF PERJURY
THAT THE FOREGOING IS TRUE AND
CORRECT.
AUDIT COMMITTEE - LISA LAVELLE EXECUTED THIS 18TH DAY OF APRIL 2023
AUDIT COMMITTEE - MARY SCHICKLING FINANCE DIRECTOR - MATTHEW BAKER
CITY OF AVALON
MARCH 27, 2023 - APRIL 7, 2023 DISBURSEMENTS
April 18, 2023
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
35792 03/31/2023 9,545.78 AMAZON CAPITAL SERVICES, INC. SUPPLIES - ALL DEPARTMENTS 35793 03/31/2023 324.00 ORIGINAL ANTONIO'S PIZZERIA INC SENIOR MEALS - 02/2023 35794 03/31/2023 200.00 ARELLANO, EVELYN DEPOSIT REFUND 35795 03/31/2023 3,777.66 AVALON FREIGHT SERVICES, LLC FREIGHT - ALL DEPARTMENTS 35796 03/31/2023 18,264.88 AVALON MOORING & DIVING SERVICE - HARBOR 35797 03/31/2023 635.75 BOBCAT OF LOS ANGELES, INC SUPPLIES - GARAGE 35798 03/31/2023 189.81 BRYAN-ZWICK, SANTIAGO RESISUE CHECKS 57445 & 57403 35799 03/31/2023 3,359.40 CATALINA BEVERAGE CO UPPLIES - ALL DEPARTMENT 35800 03/31/2023 2,169.75 CATALINA BROADBAND SOLUTIONS VTERNET - ALL DEPARTMENT 35801 03/31/2023 104,500.00 CATALINA CHAMBER OF COMMERCE TOT 04/2023 35802 03/31/2023 24,083.33 CATALINA COASTAL TOURS & FISHING CONTRACT SERVICES - 04/2023 35803 03/31/2023 1,171.00 CATALINA ISLAND CONSERVANCY PERMITS - HARBOR 35804 03/31/2023 1,722.73 CATALINA ISLAND MEDICAL CENTER EMPLOYEE SCREENINGS 35805 03/31/2023 899.31 CDW GOVERNMENT SUPPLIES - IT
35806 03/31/2023 65.58 CISNEROS, JUAN REIMB O/P COSTS
35807 03/31/2023 10,500.00 CIVICPLUS, LLC SERVICE - ADMINISTRATION 35808 03/31/2023 134,294.79 CO. OF LOS ANGELES SHERIFF'S DEPT. RESIDENT DEPUTY - 02/2023 35809 03/31/2023 5,095.17 COLLINS COLLINS MUIR & STEWARD, LLP LITIGATION COSTS - ADMINISTRATION 35810 03/31/2023 835.09 COOK, AMANDA RETIREE INSURANCE - 04/2023 35811 03/31/2023 230.50 DAPEER, ROSENBLIT & LITVAK,LLP SERVICE - VEHICLES 35812 03/31/2023 482.00 DEWEY PEST CONTROL SERVICE - CEMETERY, PUBLIC WORKS 35813 03/31/2023 327.54 DION & SONS MARINE FUELS INC FUEL - HARBOR 35814 03/31/2023 2.00 DIV OF ADMINSTRATIVE SERVICES QUARTERLY DUES - PLANNING 35815 03/31/2023 2,720.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35816 03/31/2023 1,680.88 ESG ENGINEERING SERVICE - PUBLIC WORKS 35817 03/31/2023 11,599.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35818 03/31/2023 180.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35819 03/31/2023 30,192.70 ESG ENGINEERING SERVICE - PUBLIC WORKS 35820 03/31/2023 9,614.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35821 03/31/2023 180.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35822 03/31/2023 180.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35823 03/31/2023 9,634.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35824 03/31/2023 3,040.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35825 03/31/2023 2,909.13 ESG ENGINEERING SERVICE - PUBLIC WORKS 35826 03/31/2023 14,822.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35827 03/31/2023 540.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35828 03/31/2023 540.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35829 03/31/2023 4,485.03 HAAKER SERVICE - WWTP/GARAGE
35830 03/31/2023 1,451.49 HINDERLITER, DE LLAMAS & ASSOCIATES SERVICE - FINANCE 35831 03/31/2023 279.00 ISLAND EXPRESS FREIGHT - GARAGE 35832 03/31/2023 19.80 ISLAND THREADZ UNIFORMS - FIRE
35833 03/31/2023 710.70 THE PRAETORIAN GROUP TRAINING - FIRE 35834 03/31/2023 224.37 LINDE GAS & EQUIPMENT INC. SERVICE - ADMINISTRATION 35835 03/31/2023 286.00 MANAGED HEALTH NETWORK SERVICE - ADMINISTRATION 35836 03/31/2023 469.12 MATTHEWS INTERNATIONAL CORPORATION SUPPLIES - CEMETERY 35837 03/31/2023 3,085.37 MCMASTER-CARR SUPPLIES - HARBOR 35838 03/31/2023 228,545.30 MONTROSE ENVIRONMENTAL SOLUTIONS CONTRACT SERVICES - 04/2023 35839 03/31/2023 414.00 ORIGINAL JACKS RESTAURANT & BAKERY SENIOR MEALS - 02/2023
CITY OF AVALON
MARCH 27, 2023 - APRIL 7, 2023 DISBURSEMENTS
April 18, 2023
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
35840 03/31/2023 104.02 PEDROZA, DANIEL REISSUE CHECK 57750 35841 03/31/2023 876.40 POINDEXTER, JAMES RETIREE INSURANCE - 01-04/2023 35842 03/31/2023 375.00 QUADIENT POSTAGE REFILL
35843 03/31/2023 1,126.87 QUILL CORP SUPPLIES - ALL DEPARTMENTS 35844 03/31/2023 908.91 RICOH AMERICAS CORP COPIER LEASE - PLANNING 35845 03/31/2023 138.75 ROSENOW SPEVACEK GROUP, INC SERVICE - SUCCESSOR AGENCY 35846 03/31/2023 5,000.00 JOHNSON CONTROLS FIRE PROTECTION LP ANNUAL FEE - FIRE 35847 03/31/2023 9,357.91 SIRIA'S CLEANING SERVICE 2ND HALF 03/2023 35848 03/31/2023 29.25 THOMPSON, DEVIN REIMB O/P COSTS
35849 03/31/2023 68,325.57 PARKING CONCEPTS, INC. CONTRACT SERVICES - 02/2023 35850 03/31/2023 999.80 ULINE SUPPLIES - PUBLIC WORKS
35851 03/31/2023 CORPORATE PAYMENT SYSTEMS VOID - MULTI STUB CHECK 35852 03/31/2023 16,771.87 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL 35853 03/31/2023 63.39 US JETTING SUPPLIES - GARAGE
35854 03/31/2023 15,208.33 VEGA, EDMUNDO CONTRACT SERVICES - 03/2023 35855 03/31/2023 1,602.93 WALTERS WHOLESALE ELECTRIC CO SUPPLIES - HARBOR 35856 03/31/2023 1,937.50 WARDAY, GUY REIMB O/P COSTS
35857 03/31/2023 127.96 WEST MARINE PRO SUPPLIES - HARBOR 35858 03/31/2023 5,751.85 WESTRIDGE ENVIRONMENTAL GROUP SUPPLIES - WWTP 35859 03/31/2023 733.06 WITMER PUBLIC SAFETY GROUP, INC. SUPPLIES - FIRE 779,918.33
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MARCH 31, 2023
April 18, 2023
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT HART 2/17/2023 299.07 WEST MARINE OUTRIGGER SUPPLIES RECREATION HART 2/20/2023 76.92 AVALON GAS STATION FUEL RECREATION HART 2/23/2023 219.04 CROWN AWARDS SOCCER AWARDS RECREATION HART 2/27/2023 86.44 AVALON GAS STATION FUEL RECREATION HART 2/27/2023 20.00 FREEONLINESURVEYS.COM SERVICE RECREATION HART 3/3/2023 34.98 CHETS HARDWARE TREMONT HALL MAINTENANCE RECREATION HART 3/6/2023 682.50 OTC BRANDS EASTER EGG HUNT SUPPLIES RECREATION HART 3/8/2023 125.92 AVALON GAS STATION FUEL RECREATION HART 3/8/2023 11.63 AVALON GAS STATION FUEL RECREATION
HART 3/9/2023 14.29 CHET'S HARDWARE TREMONT HALL MAINTENANCE RECREATION ALERIA 2/16/2023 88.09 FINNEY'S CRAFTHOUSE TRAVEL FIRE
ALEGRIA 2/17/2023 553.42 HILTON HOTELS LODGING FIRE
ALEGRIA 2/20/2023 98.56 AVALON GAS STATION FUEL FIRE
ALEGRIA 2/20/2023 69.08 AVALON GAS STATION FUEL FIRE
ALEGRIA 2/23/2023 113.28 CHET'S HARDWARE MAINTENANCE SUPPLIES FIRE ALEGRIA 2/23/2023 85.01 AVALON GAS STATION FUEL FIRE
ALEGRIA 2/23/2023 85.00 AVALON GAS STATION FUEL FIRE
ALEGRIA 2/28/2023 250.50 CATALINA EXPRESS BOAT TICKETS FIRE ALEGRIA 3/1/2023 (4.00) MASON BEACH INN CREDIT FIRE
ALEGRIA 3/1/2023 92.69 TACOS LOS CHOLOS TRAVEL FIRE
ALEGRIA 3/2/2023 69.31 OLIVE GARDEN TRAVEL FIRE
ALEGRIA 3/2/2023 18.82 CHICK-FIL-A TRAVEL FIRE
ALEGRIA 3/2/2023 175.92 HAMPTON INN GARDEN GROVE LODGING FIRE ALEGRIA 3/2/2023 146.66 HAMPTON INN GARDEN GROVE LODGING FIRE ALEGRIA 3/3/2023 15.74 EL POLLO LOCO TRAVEL FIRE
ALEGRIA 3/10/2023 83.54 AVALON GAS STATION FUEL FIRE
ALEGRIA 3/10/2023 109.41 AVALON GAS STATION FUEL FIRE
ALEGRIA 3/10/2023 86.46 AVALON GAS STATION FUEL FIRE
ALEGRIA 3/10/2023 144.09 AVALON GAS STATION FUEL FIRE
GONZALES 3/8/2023 20.52 HOMEBOUND TRAVEL TRANSIT
GONZALES 3/8/2023 83.50 CATALINA EXPRESS TRAVEL TRANSIT GONZALES 3/8/2023 4.25 STARBUCKS TRAVEL TRANSIT
GONZALES 3/8/2023 7.45 STARBUCKS TRAVEL TRANSIT
GONZALES 3/8/2023 16.00 AMB UNION STATION PARKING TRANSIT HART 3/1/2023 82.96 CYBERLYNK NETWORK IT SUBSCRIPTION ADMINISTRATION HART 3/1/2023 35.00 MAILGUN TECHNOLOGIES IT SUBSCRIPTION ADMINISTRATION CAMPBELL 2/17/2023 104.00 SENDHUB COMMUNICATIONS HUMAN RESOURCES CAMPBELL 2/27/2023 200.00 LIEBERT CASSIDY TRAINING HUMAN RESOURCES CAMPBELL 3/2/2023 28.28 AVALON GAS STATION FUEL HUMAN RESOURCES CAMPBELL 3/2/2023 172.81 AVALON GAS STATION FUEL HUMAN RESOURCES CAMPBELL 3/8/2023 63.75 AMAZON OFFICE SUPPLIES HUMAN RESOURCES CAMPBELL 3/15/2023 83.50 CATALINA EXPRESS TRAVEL HUMAN RESOURCES MAISTROS 3/9/2023 2,723.50 NATIONAL BUSINESS FURNITURE OFFICE FURNITURE ADMINISTRATION MAISTROS 3/15/2023 345.98 PRICELINE.COM LODGING ADMINISTRATION MAISTROS 3/15/2023 357.95 SOUTHWEST AIRLINES TRAVEL ADMINISTRATION SCHMIDT 2/16/2023 1,978.54 TOM SMITH MARINE BOAT MAINTENANCE HARBOR SCHMIDT 2/20/2023 1,464.47 RUGGED COMPUTING, INC. LAPTOP HARBOR SCHMIDT 2/23/2023 86.26 CHET'S HARDWARE MAINTENANCE SUPPLIES HARBOR SCHMIDT 2/27/2023 101.20 XTRATUFF FOUL WEATHER GEAR HARBOR SCHMIDT 3/1/2023 113.23 CHET'S HARDWARE MAINTENANCE SUPPLIES HARBOR SCHMIDT 3/1/2023 41.12 CHET'S HARDWARE MAINTENANCE SUPPLIES HARBOR SCHMIDT 3/7/2023 25.83 CHET'S HARDWARE MAINTENANCE SUPPLIES HARBOR SCHMIDT 3/14/2023 39.13 LOWE'S MAINTENANCE SUPPLIES HARBOR HERNANDEZ 3/10/2023 20.94 CHET'S HARDWARE FLOAT MAINTENANCE HARBOR MAINTENANCE HERNANDEZ 3/10/2023 199.51 AVALON GAS STATION FUEL HARBOR MAINTENANCE HERNANDEZ 3/13/2023 18.60 CHET'S HARDWARE FLOAT MAINTENANCE HARBOR MAINTENANCE HERNANDEZ 3/13/2023 94.56 CHET'S HARDWARE FLOAT MAINTENANCE HARBOR MAINTENANCE HERNANDEZ 3/13/2023 121.13 AVALON GAS STATION HARBOR MAINTENANCE
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MARCH 31, 2023
April 18, 2023
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT HERNANDEZ 3/15/2023 78.89 CHET'S HARDWARE FLOAT MAINTENANCE HARBOR MAINTENANCE RUBIO 3/13/2023 783.90 FELD FIRE VEHICLE MAINTENANCE GARAGE RUBIO 3/13/2023 197.72 AVALON GAS STATION FUEL GARAGE,
RUBIO 3/13/2023 164.85 AVALON GAS STATION FUEL GARAGE
HMIELAK 2/16/2023 40.53 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 2/17/2023 42.87 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 2/23/2023 18.37 PEBBLY BEACH BUILDING SUPPLY MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 2/23/2023 569.47 PEBBLY BEACH BUILDING SUPPLY SAND BAG SUPPLIES PUBLIC WORKS HMIELAK 2/24/2023 164.95 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 2/24/2023 91.12 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 2/24/2023 111.95 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 2/27/2023 226.72 CHET'S HARDWARE RESTROOM MAINTENANCE PUBLIC WORKS HMIELAK 2/27/2023 34.07 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 2/27/2023 7.00 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 2/27/2023 83.50 CATALINA EXPRESS TRAVEL PUBLIC WORKS HMIELAK 3/2/2023 87.32 CHET'S HARDWARE VEHICLE MAINTENANCE PUBLIC WORKS HMIELAK 3/2/2023 96.71 CHET'S HARDWARE VEHICLE MAINTENANCE PUBLIC WORKS HMIELAK 3/2/2023 97.13 EASYKEYS.COM LOCKS PUBLIC WORKS
HMIELAK 3/6/2023 7.24 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 3/9/2023 448.50 TOMMIE HOTEL LODGING PUBLIC WORKS HMIELAK 3/9/2023 72.01 CHET'S HARDWARE HARBOR MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 3/9/2023 25.64 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/9/2023 55.20 CHEVRON RENTAL CAR FUEL PUBLIC WORKS HMIELAK 3/10/2023 17.60 HILTON UNIVERSAL PARK PARKING PUBLIC WORKS HMIELAK 3/13/2023 157.10 TOMMIE HOTEL LODGING BALANCE PUBLIC WORKS HMIELAK 3/13/2023 224.54 ENTERPRISE RENT-A-CAR CAR RENTAL PUBLIC WORKS HMIELAK 3/13/2023 38.50 HILTON UNIVERSAL PARK PARKING PUBLIC WORKS HMIELAK 3/15/2023 24.37 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/15/2023 317.76 PEBBLY BEACH BUILDING SUPPLY SAND BAG SUPPLIES PUBLIC WORKS $ 16,771.87 CHECK 35852
CITY OF AVALON CITY COUNCIL
April 18, 2023 AGENDA ITEM: 2
MEETING DATE:
ORIGINATING DEP: Administration CITY MANAGER: они
PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Housing Element Annual Progress Report
RECOMMENDED ACTION(S): Receive and file the Housing Element Annual Progress Report for 2022 and direct staff to submit the Housing Element Progress report to the California Department of Housing and Community Development.
REPORT SUMMARY: State law requires City General Plans to include a Housing Element that adequately plans to meet the housing needs for everyone in the community.
The City of Avalon adopted Housing Element covers 2021-2029 which details statutory requirements, regulatory frameworks, and systems that encourage housing development.
Government Code §65400 mandates each elected board submit an annual progress report (APR) to the California Department of Housing and Community Development (HCD) and the Governor's Office of Planning and Research (OPR) on the status and progress of Housing Element implementation. The report provides OPR information to assist with identifying statewide trends in land use decision-making and how local planning activities relate to statewide planning goals and policies. APRs may also identify needed modification and improvements to General Plan guidelines.
Submitting the City's annual housing progress report to HCD fulfills statutory requirements to report housing planning and development progress in meeting local housing needs. Prior to submission, City Council must accept the report.
The annual progress report was prepared consistent with the guidelines from the State of California Department of Housing and Community Development.
FISCAL IMPACTS: None.
GOAL ALIGNMENT: Affordable Housing
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would be out of compliance with State guidelines.
FOLLOW UP ACTION: Submit the City's Housing annual progress report to the California Department of Housing and Community Development.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
• 2022 Housing Element Annual Progress Report
Jurisdiction Avalon ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 10/15/2021 - 10/15/2029
Table A2
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Project Identifier Unit Types Affordability by Household Incomes Certificates of
Moderate- # of Units Issued
# of Units Moderate- Occupancy or
Local Jurisdiction Unit Above Building Certificates of
Tenure Income Non Issued Income Non other forms of
Current APN Street Address Tracking ID* Moderate- Permits Date Deed Occupancy or Category Deed Building readiness
Restricted Income Issued Permits other forms of
Restricted see instructions)
readiness
Date Issued
7480-053-013 Loi 12 Hamilton Cove 22165| SFD 11/2/2022
7480-028-024 373 E Whittley 22063 ADU 5/21/2022
7480-027-004 201 E Whittley 22027| SFD 2/28/2022
7480-020-026 122 Vieudelou 22163 ADU 10/31/2022
7480-028-043 1326 W Whittley 22126| ADU 8/25/2022 8/25/2022
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Jurisdiction Avalon
Reporting Year 2022 (Jan. 1 - Dec. 31)
Table D
Program Implementation Status pursuant to GC Section 65583 Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
Name of Program Objective Timeframe in HE Status of Program Implementation A. Disseminate information via City website and
newsletter to homeowners regarding rehabilitation
standards and the Housing Rehabilitation Program.
1. Housing Rehabilitation B. Provide housing rehabilitation assistance to The City website was updated in 2022 with current program information.
Program 2021-2029 Program information was published in the annual City newsletter. Applied lower and moderate income households, including
for special housing funding. On-going.
extremely low income households.
C. Pursue additional funding from State and federal
programs.
A. Disseminate information on housing
rehabilitation assistance available to address code ode yan on sin reme senator or house al posite
2. Code Enforcement violations and other housing issues. 2021-2029 rehabilitation assistance. Reviewed code complaints quarterly to identify B. Conserve one unit per year for a total of eight
units during the planning period. areas for targeted outreach. On-going.
3. Nontransient Rental Investigate 100% of possible violations. 2021-2029 Reviewed Nontransient Rental Inspection Program to inspection Program evaluate effectiveness. On-going.
4. Preservation of At-Risk On-going.
Units B. Work with property owners intending to opt out of 2021-2029 the affordability covenants to ensure tenants
receive adequate notice.
A. Disseminate information to homeowners on the
First-Time Homebuyers Assistance Program via
5. First Time Homebuyers City website and newsletter. The City website was updated in 2022 with current program information.
B. Provide homeownership assistance to lower and 2021-2029 Applied for special housing funding. On-going.
Assistance moderate income households.
C. Pursue additional funding such as the
California Housing Finance Agency.
A. Identify the appropriate sources of funds (such
as inclusionary housing in-lieu fees and Transient The City maintains the Housing Trust Fund and has identified eligible
6. Housing Trust Fund Dunupancy Tax) to replenish the Housing Trust 2021-2029 programs/activities. Previously, the City has used the funds for down payment assistance for moderate income families. On-going.
B. Identify eligible program/ activities to be funded.
Jurisdiction Avalon
Reporting Year 2022 (Jan. 1 - Dec. 31)
ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Please update the status of the proposed uses listed in the entity's application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable.
Total Award Amount
65,000.00 Total award amount is auto-populated based on amounts entere $ Amount $ Cumulative Other
Task Awarded Task Status Notes
Reimbursement Funding
Kickoff meeting and review project 500
schedule In Progress None
Community Engagement 5000 In Progress None
Conduct environmental 15000
2062.5 In Progress None
assessment
Conduct utility and infrastructure 10000 In Progress None assessment
Prepare administrative draft 8000 In Progress
specific plan None
Public review of draft specific plan 8000 In Progress None Environmental compliance 13000 In Progress None
Study session and public hearing(s) 1500 In Progress None Finalize and adopt specific plan 2000 In Progress None
Conduct GPA and zoning code 2000 In Progress
updates. None
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2)
CITY OF AVALON CITY COUNCIL
MEETING DATE: April 18, 2023 AGENDA ITEM: 3
ORIGINATING DEP: Administration CITY MANAGER: DM
PREPARED BY: David Maistros, City Manager
Devin Hart, Management Analyst
SUBJECT: Contract Assignment for the Operations, Management, Maintenance, and Monitoring of the City of Avalon Wastewater System
RECOMMENDED ACTION(S): 1. Authorize the City Manager to assign the remaining term of an agreement with Montrose Water and Sustainability Services, Inc. for the operation, management, maintenance, and monitoring of the City of Avalon Wastewater System to PERC Water Corporation. 2. Authorize the City Manager to negotiate a contract extension with PERC Water Corporation for an additional three year term.
REPORT SUMMARY: In July 2012, the City of Avalon (City) entered into a five-year agreement with Montrose Water and Sustainability Services, Inc. (formally Environ Strategy Consultants, Inc.) for the operations, management, maintenance, and monitoring of the Wastewater Treatment Plant, collection system, and saltwater distribution system (Wastewater System). The agreement was initially extended for two, one-year extensions expiring on June 30, 2019. While negotiations of a renewed agreement were ongoing, City Council approved an initial sixty-two (62) day extension on July 2, 2019, an additional forty-five (45) day extension on September 17, 2019. An additional sixty (60) day extension was approved on October 15, 2019 and the agreement was extended an additional three (3) days ending on the date of the December 17, 2019 City Council meeting
On December 17, 2019, the City Council authorized a renegotiated agreement for a five (5) year period ending on December 15, 2024, unless terminated earlier for breach or by mutual agreement of the City and Montrose Water and Sustainability Services, Inc. (a division of Montrose Environmental Group, Inc. referred to herein as Montrose).
In early 2022, Montrose notified City Staff of their intention to exit the water and wastewater service market. Though Montrose indicated it could fulfill the remaining term of the agreement, Staff and Montrose agreed in order to better ensure a smooth operational transition, assigning the remaining term of the agreement to a qualified operator was in the City's best interests. Staff were approached by two firms interested in the assignment of the remainder of Montrose's agreement - PERC Water Corporation (PERC Water) and Water Quality Specialists. After an informal interview and vetting process, City Staff conducted a detailed analysis of the two firms and recommends assigning the remainder of the agreement (and potential 3 year extension) with PERC Water.
PERC Water has 25 years of experience in water infrastructure. During its tenure in the industry, PERC Water has designed more than 75 water infrastructure projects, and currently operates 27 water and wastewater facilities in California and Arizona.
To manage the City's Wastewater System, PERC Water will retain local key staff, as well as draw upon 54 certified professionals working in other facilities within their mainland operations.
PERC Water's service philosophy employs an all-inclusive "flat-fee" model which includes all required effort, time and skill it takes to manage and operate the system. The City's only monetary responsibility will be the cost of repair and replacement parts.
If City Council approves the assignment of the Wastewater System agreement, PERC Water will work cooperatively with Montrose and City Staff to draft and implement a Transition Plan that will detail a transition schedule. PERC Water anticipates a transition period of approximately 30 days.
Once the operational transition is complete, if authorized, City Staff would begin negotiating a new contract with PERC Water for a longer term. Any negotiated contact would be brought before City Council for final authorization.
GOAL ALIGNMENT: Infrastructure sustainability.
FISCAL IMPACTS: There will be no change to the budgeted sum through the remaining term of the contract - December 15, 2024.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Montrose will continue to operate the Wastewater System and no new firm will be identified to transition operations to in the future.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. Restated, Amended, and Extended Agreement for the Operation, Management, Maintenance, and Monitoring of the City of Avalon Wastewater System
2. PERC Water Executive Summary
) perc water
September 29, 2022
Mr. Bob Greenlaw, P.E.
Director of Public Works
City of Avalon
410 Avalon Canyon Road
P.O. Box 707
Avalon, CA. 90704
Mr. Greenlaw,
Following up on our most recent communication, PERC Water Corporation (PERC Water) has been working with Montrose Water and Sustainability Services, Inc. to transition the operations and maintenance service they currently provide to the City of Avalon to PERC Water. As you are aware, Montrose has decided to exit the water and wastewater services market and accordingly, PERC Water has been working with them to take assignment of their service agreements.
I am providing this summary of PERC Water's capabilities for your review and presentation to the City Council. This summary is intended to provide a short introduction of our corporate structure, ownership, capabilities, project approach and expertise. As the City's service provider, we will endeavor to provide outstanding service and exceed the City goals and expectations at all times.
Sincerely,
PERC Water Corporation
Sat-br,
Robert Nespeca
Vice President Asset Management
17520 Newhope Street, Suite 180 Fountain Valley, CA 92708 | Office: 714.352.7750 | Fax: 714.352.7765 | www.percwater.com
Mr. Bob Greenlaw, P.E. September 29, 2022
City of Avalon Page 3 of 5
Service Philosophy
PERC Water has been operating and maintaining water and wastewater systems for more than twenty years. We have always embraced the philosophy of sharing risk and responsibility with our clients as we provide our services. We provide our services at an all-inclusive "flat fee" basis which includes all the required effort, time, and skill it takes to operate and manage the systems. In this approach we assume full responsibility of all emergency response during off hours and the labor associated with system breakdowns and failures without any extra cost to the system owner. The owners only monetary responsibility is the cost of repair and replacement parts. This approach incentivizes us to operate and maintain systems as responsibly as possible with the long-term health, efficiency, and reliability of the systems as our primary goal.
PERC Water's Project Managers and onsite staff are motivated to find solutions to system breakdowns that limit future failures and promote reliable operation, avoiding off-hour call out response. The success of our approach is supplemented by our site-specific staffing plans. We develop and follow a staffing plan because this is the most effective way to ensure the appropriate number of operators are available and capable to operate and maintain the system while minimizing overtime cost.
Experience and Performance
PERC Water currently operates, maintains and manages 27 water and wastewater systems throughout California and Arizona. Our staff consists of experienced and dedicated individuals motivated to provide the highest quality service in partnership with our clients. As owners of wastewater treatment systems, PERC Water thinks like utility owners, which aligns our visions with Clients to operate and maintain assets as if they were our own and in line with the highest operational standards.
Our Operating Services Team provides a full suite of operational services as it pertains to water and wastewater systems. In addition to operating and maintaining facilities we provide specialized facility assessments, facility upgrades and capital improvements, commissioning and start up services for new and upgraded facilities, sewer collection system operation and maintenance, troubleshooting and correcting out of compliance facilities and preparing efficiency audit reports.
PERC Water also specializes in facility improvements through our Capital Improvement Team lead by Kyle Nelson, P.E. Mr. Nelson specializes in treatment process engineering, capital improvements, life cycle cost estimates, preliminary and detailed design, facility start-up and commissioning, and operation optimization practices.
Project Approach / Scope of Service
Our project approach will begin with a facility evaluation. Our team of facility experts will schedule a site visit to the facility to evaluate the condition of each component within the facility, its associated operational reliability and remaining operational life.
Mr. Bob Greenlaw, P.E. September 29, 2022
City of Avalon Page 5 of 5
Transition to PERC Water
Prior to the transition period we will meet with the existing Montrose onsite operations team and managers to discuss the details of transitioning to employment with PERC Water. Our initial discussions will include PERC Water's operating philosophy and project approach, staffing plan, company benefits package and compensation. Our goal is to recruit all current Montrose staff for ongoing operation.
Additionally, we will establish an experienced transition team to facilitate a seamless transition to PERC Water operation.
PERC Water will draft a Transition Plan to detail a mutually agreeable transition schedule. We will review the plan with the Montrose operations team and City staff to ensure all parties are in agreement anc allowing for a seamless transition of operations. We anticipate a transition period of 30 days. The Transition Plan will detail exactly how operational and regulatory responsibility will be addressed during We would propose during the first 14 days of the transition period the Montrose Operations team would lead the operation of the facility and also have regulatory responsibility. On day 15 the operational and regulatory responsibility will transition to PERC Water. During the remaining 15 days the current operator will remain onsite full time and provide support to PERC Water staff. Data transfer will be a detailed part of the plan to ensure all historical records are transferred to a permanent database providing access to all as appropriate.
RESTATED, AMENDED, AND EXTENDED AGREEMENT FOR THE
OPERATION, MANAGEMENT, MAINTENANCE AND MONITORING OF THE
CITY OF AVALON WASTEWATER SYSTEM
This Restated, Amended, and Extended Agreement for the Operation, Management, Maintenance and Monitoring of the City of Avalon Wastewater System ("Agreement") is made by and between Montrose Water and Sustainability Services, Inc. (an affiliate of ES Engineering Services, LLC, successor to ES Engineering, Inc., formally Environ Strategy Consultants, Inc.), a Delaware corporation ("Contractor"), and the City of Avalon, a municipal corporation (City").
Contractor and City are collectively referred to in this Agreement as the "Parties" and individually as a "Party." The Parties enter into this Agreement in light of the following recited facts (each a "Recital").
RECITALS
A. The City owns the Wastewater System, as defined below, including, without limitation, the Wastewater Treatment Plant, the Collection System, the Saltwater Distribution System and the Low Flow Diverter System.
B. The Contractor represents to the City that it possesses the skill, knowledge, expertise and personnel to operate, manage, maintain and monitor the Wastewater System in accordance with the Contract Standards, as defined below.
C. City entered into that certain Agreement for the Operation, Management, Maintenance and Monitoring of the City of Avalon Wastewater System ("Agreement"), dated January 14, 2014 with Environ Strategy Consultants, Inc. In July 2014, Environ Strategy Consultants Inc., changed its name to ES Engineering, Inc. In July 2015, ES Engineering Services, LLC, a wholly owned subsidiary of Montrose Environmental Group, Inc., purchased substantially all the assets of ES Engineering, Inc. including the assumption of the Agreement.
In 2016, the parties amended, in part, Paragraphs II.B and Il.C related to the Term of the Agreement and Paragraphs III.B.3, IV.A, and IV.B related to the Scope of Services and Base Compensation in the Agreement ("First Amendment"). The First Amendment established, in part, an initial term ending June 30, 2019 and providing for an extended term of five (5) years.
E. On or about July 2, 2019, the Parties entered into an agreement to extend the Initial Term of the Agreement, as amended by the First Amendment, for a period of sixty-two (62) days, until August 31, 2019; on or about August 31, 2019, the Parties entered into a subsequent agreement to extend the Initial Term of the Agreement, as amended by the First Amendment, until October 15, 2019; and on or about November 12, the Parties entered into a subsequent agreement to extend the Initial Term of the Agreement, as amended by the First Amendment, until December 14, 2019.
F. The City and the Contractor wish to enter into this Agreement to restate, amend, and extend the terms and conditions under which the Contractor shall operate, manage, maintain, and monitor the Wastewater System during the Term of this Agreement. - I-
65059 00204132162057 7
NOW, THEREFORE, in consideration of the above Recitals, which are all incorporated into this Agreement by this reference, and of the mutual promises, covenants, undertakings and agreements set forth below, and for other good and valuable consideration, the mutuality, receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
DEFINITIONS
Throughout this Agreement, the following terms shall have the meanings set forth below:
Applicable Law means: (1) any federal, state or local statute, law, code, ordinance or regulation, including without limitation, the Clean Water Act (33 U.S.C. § 125l et seq.) and the Porter-Cologne Water Quality Control Act (Water Code, § 13000 et seq.); (2) any formally adopted and generally applicable rule, requirement, determination, standard, practice, policy, guidance, implementation schedule, or other order of any Governmental Body having appropriate jurisdiction over the Wastewater System; (3) any established interpretation of law or regulation utilized by an appropriate Governmental Body if such interpretation is documented in writing by such Governmental Body and generally applicable; (4) any Governmental Approval; and (5) any consent order or decree, settlement agreement or similar agreement between the City, the State and United States Environmental Protection Agency, the State Water Resources Control Board or Los Angeles Regional Water Quality Control Board or any other Governmental Body, including without limitation, the Los Angeles Regional Water Quality Control Board's Cease and Desist Order No. R4-2012-0077 and the indicator bacteria total maximum daily load ('TMDL") established therein. The items listed as (1) through (5) above constitute Applicable Law when they have the force or effect of law and are applicable from time to time to: (a) the siting, permitting, design, acquisition, construction, equipping, financing, ownership, possession, start-up, testing, operation, maintenance, repair, replacement or management of the Wastewater System; (b) the conveyance, treatment, storage or discharge of Influent and Effluent to and from the Wastewater System; (c) the air emissions from the Wastewater System; (d) the transfer, handling. processing, transportation or disposal of Residuals; (e) the health and welfare of individuals at or visiting the Wastewater System; and (f) any other transaction or matter contemplated hereby (including any of the foregoing which pertain to wastewater treatment, wastewater collection, Residuals and waste disposal, processing or marketing, health, safety, fire, environmental protection, labor relations, building codes, the payment of prevailing or minimum wages and non-discrimination).
Authorized Disposal Site(s) means the sanitary landfill or other waste disposal or management facility which is being operated at the time of disposal or delivery in accordance with Contract Standards, as evidenced by the absence of any significant regulatory sanctions or any significant enforcement actions with respect to material environmental matters.
Base Compensation means the amount established as compensation for all services provided pursuant to this Agreement, which amount is set forth in Exhibit A to this Agreement.
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65059 00204\32162057.7
BOD means the measure of the amount of oxygen required for the stabilization of decomposable carbonaceous organic matter and the bioxidation of nitrogenous material under aerobic conditions, the analysis of which shall conform to 40 C.F.R. part 136, unless other test procedures have been specified in a Permit.
Collection System means the City's sanitary sewer collection system and the real property on which the structures constituting part of such system are located, and consisting generally of eleven (11) miles of gravity sewers, one and one-quarter (1.25) miles of force mains, an unknown length of lateral collection pipes, two (2) Lift Stations, clean-outs, outlets, manholes, pumps, on-site generators, pipes, flowmeters, flow splitters, weirs and interceptors, and telemetry system together with all improvements thereto acquired, installed, constructed or reconstructed from time to time.
Contract Date means the date this Agreement becomes effective, which shall be December 15, 2019, or the first date thereafter on which all of the following are true: (a) Contractor has signed this Agreement and returned a signed copy to the City; and (b) the City has signed this Agreement and returned a fully executed copy to Contractor.
Contract Price means the dollar amount established as Base Compensation for the performance of work under this Agreement, as specified in Exhibit A to this Agreement.
Contract Standards means the standards, terms, conditions, methods, techniques, and practices imposed or required by: (1) Applicable Law; (2) the Performance Guarantees; (3) Permits; (4) Prudent Industry Practice; (5) applicable equipment manufacturers specifications; (6) applicable Insurance Requirements; and (7) any other standard, term, condition or requirement provided in this Agreement.
Contract Year means the fiscal year commencing on July 1 and ending on June 30 of each year.
Contractor's Representative means Jennifer Ferrari or her authorized designee, which designee shall be approved by the City in advance of any meeting or event.
Effluent means all treated wastewater discharged from the WWTP.
Emergency means an unplanned and unanticipated event, which threatens the continued functioning of the Wastewater System or threatens a violation of any Contract Standard.
Emergency Repair means an unplanned and unanticipated repair or maintenance activity, which must be conducted immediately to ensure the continued functioning of the Wastewater System.
Expected Electrical Demand means the amount of electricity in kilowatt hours per year used to operate, manage, maintain and monitor the Wastewater System, as provided in Paragraph IV.A of this Agreement.
Governmental Approval means all orders of approval, Permits, licenses, authorizations, consents, certifications, exemptions, registrations, rulings, entitlements and similar -3-
65059 00204\32162057.7
approvals issued by a Governmental Body of whatever kind and however described, which are required under Contract Standards to be obtained or maintained by any person with respect to the Wastewater System or to the services provided pursuant to this Agreement.
Governmental Body means any federal, State, regional or local legislative, executive, judicial, regulatory or other governmental board, agency, authority, commission, administration, court or other body, or any official thereof having jurisdiction over the Wastewater System, including without limitation the United States Environmental Protection Agency, the State Water Resources Control Board, and the Los Angeles Regional Water Quality Control Board.
Grit and Screenings means materials such as scum, grease and other solid waste generated at the WWTP other than Sludge.
Incident means the failure of a single unit of equipment, structure or improvement, or part thereof, constituting part of the Wastewater System, that causes an adverse impact either immediately or in the long term on the integrity or the functionality of that item or part thereof, and which failure is not the result of the Contractor's negligence or failure to perform its Normal Maintenance obligations.
Influent means all flows reaching the WWTP through the Collection System from all connected sources, including without limitation, residential, commercial, municipal sources, including the Low Flow Diverter System, and industrial sources, and all vactor truck waste delivered to the WWTP.
Insurance Requirements means any rule, regulation, code, or requirement issued by any insurance company that has issued a policy of Required Insurance under this Agreement, compliance with which is a condition to the effectiveness of such policy.
Lift Stations means the two (2) lift stations and the associated supervisory control and data acquisition and telemetry system, constituting a part of the City's Collection System, including the Lift Stations Sites and extending to the further of the check valve or five feet, together with all improvements thereto acquired, installed, constructed or reconstructed from time to time.
Lift Stations Sites means the parcels of real property on which the improvements constituting part of the Lift Stations are located.
Low Flow Diverter System means the system of pipes, valves and other equipment which diverts dry weather surface runoff and a portion of the first flush of stormwater to the Collection System for treatment at the WWTP, including but not limited to the lift station at the fuel dock by the Casino.
Maintenance Account means the amount of the Contract Price dedicated to Normal Maintenance activities as established in Paragraph IV.A of this Agreement. -4-
65059 00204132162057.7
Major Maintenance means reparative, corrective, or replacement activities required for operation continuity, safety and performance or to avert a failure of the equipment, vehicles or facilities or some component of the Wastewater System.
Normal Maintenance means routine inspections, maintenance, and preventative, reparative and corrective actions to address normal wear, tear and usage or required or recommended by the equipment or facility manufacturer or by the City or Contractor to maximize the useful life of equipment, vehicles and facilities, including but not limited to, the tasks specified in Paragraph III.D.I and III.D.2, cleaning and lubricating equipment, inspecting and adjusting equipment, performing janitorial services, maintaining plumbing, maintaining instrumentation, scheduling and tracking all preventative and corrective actions, and shall be limited to five-thousand dollars ($5,000.00) per Incident.
Operations and Management Report means the monthly and annual reports submitted to the City as required by Paragraph III.G of this Agreement.
Performance Guarantees means the performance requirements of this Agreement specifically set forth in Paragraph Ill of this Agreement.
Permit means any permit, order, decree, or similar document issued by any Governmental Body having jurisdiction over the Wastewater System, including without limitation Los Angeles Regional Water Quality Control Board Order No. R4-2019-0023 (NPDES Permit No. CA0054372), State Water Board Order No. 2006-0003-WQ, and State Water Board Order No. WQ 2008-0002-EXEC.
Proceedings means any administrative, civil or criminal, action, suit, litigation, arbitration, or other legal or equitable proceeding having a bearing on this Agreement or on the operation of any maintenance of the Wastewater System, and all appeals therefrom.
Program Managers means the Contractor's Representative and the person designated by the City with authority to approve changes to this Agreement identified herein as not requiring an amendment.
Prudent Industry Practice means those methods, techniques, standards and practices, which, at the time they are to be employed and in light of the circumstances known or reasonably believed to exist at such time, are generally recognized and accepted as prudent operation, maintenance, repair, replacement, monitoring and management practices in the municipal wastewater industry as observed in the United States.
Residuals means Sludge and Grit and Screenings.
Required Insurance means the insurance required to be provided by the Contractor in accordance with Paragraph VII of this Agreement.
Saltwater Distribution System means the system of pipes, valves, pumps, and other equipment, consisting in part, of a saltwater intake station, two saltwater reservoirs, 1wo -5-
65059 00204132162057.7
booster pump stations, and a network of distribution mains and fire hydrants, which distributes sea water through the City primarily for the purpose of toilet flushing.
Sludge means any solid, semi-solid or liquid residue, byproduct or other waste stream removed during the treatment of Influent by the WWTP other than Grit and Screenings.
State means the State of California.
Term means the five (5) year period beginning on the Contract Date, and ending on June 30, 2024, unless earlier terminated or extended by mutual agreement of the Parties.
Uncontrollable Circumstance means any act, event or condition that (1) is beyond the reasonable control of the Party relying on it as justification for not performing an obligation or complying with any condition required of such Party under this Agreement, and (2) materially expands the scope of, materially interferes with, or materially delays the performance of the Party's obligations under this Agreement to the extent that such act, event or condition is not the result of the intentional or negligent act, error, omission, failure to exercise reasonable diligence, or breach of this Agreement on the part of the Party claiming the occurrence of an Uncontrollable Circumstance. By way of example, Uncontrollable Circumstance shall include, but not be limited to, naturally occurring events such as landslides, underground movement, earthquakes, lightening, fire, hurricane, flood, epidemics, terrorism, sabotage and labor disputes. By way of example, Uncontrollable Circumstance shall not include any act, event or circumstance that would not have occurred if the Party had complied with its obligations under this Agreement, the consequences of error, neglect or omissions, impacts of prevailing wage or similar laws, fluctuations in market conditions or prices, weather conditions that should in the exercise of reasonable care be expected based on historical weather records, and power outages caused by Contractor fault.
Wastewater System means the WWTP, the Collection System, the Saltwater Distribution System, the Low Flow Diverter System and all vehicles, including a vactor truck, used to perform services under this Agreement.
Wastewater Treatment Plant or "WWTP" means the City's Wastewater Treatment Plant and the real property on which it is located. The WWTP consists generally of that separate and contiguous part of the Wastewater System comprising buildings, structures, equipment, the associated supervisory control and data acquisition and telemetry systems, the roads, grounds, fences and landscaping appurtenant thereto, utilized for preliminary treatment, primary treatment and secondary treatment of Influent, Effluent disinfection, Residuals treatment, laboratory functions and administration and management of the Wastewater System. The treatment system equipment consists, in part, of a rotating screen for removal of large particles, a trickling filter and activated sludge reactors for removal of organics, clarifiers for separation of solids, and a chlorination system. The WWTP is located at 123 Pebbly Beach Road, Avalon, California 90704 and discharges to the Pacific Ocean at latitude 33°, 20', 19" N, longitude 118°, 18", 40" W. -6-
65059.00204132162057.7
Wastewater Treatment Plant Site means the parcel(s) of real property on which the structures constituting the WWTP are located.
TERM
A. Effective Date. This Agreement shall become effective on the Contract Date.
Term. The Term of this Agreement shall be for a period of five (5) years, III. SCOPE OF SERVICES
A. Generally
1. General Operations, Management, Maintenance and Monitoring Responsibilities. Commencing on the Contract Date, Contractor shall operate, manage, maintain and monitor the Wastewater System on a twenty-four (24) hour per day, seven (7) day per week basis and shall collect, receive and treat Influent, discharge Effluent, handle, transfer, transport, manage, and dispose of Residuals, process and treat all Sludge, control odor, and otherwise operate, manage, maintain and monitor the Wastewater System in compliance with Contract Standards. Within forty-five (45) days after the Effective Date, Program Managers shall prepare an Implementation Plan with a schedule of responsibilities and responsible parties consistent with the terms of this Agreement. By way of example and not as a limitation, the Implementation Plan should specify how overtime requests will be processed and how Emergencies will be handled.
2. Minimum Personnel Requirements. Contractor shall operate, manage, maintain and monitor the Wastewater System with qualified personnel who meet federal and State licensing and certification requirements under a staffing plan which is consistent with the Contract Standards. At a minimum, the staffing plan shall include five (5) full-time employees, and (1) part-time operations and maintenance specialist, including a WWTP Plant Manager, operations personnel, two maintenance personnel, and a lab personnel, together with appropriate and sufficient off-site support. The staffing plan shall also identify the following information for each position: (a) title, (b) responsibilities, (c) licensing requirements, and (d) name of individual currently holding position. The WWTP Plant Manager shall hold a minimum Grade Ill Wastewater certification issued by the California State Water Resources Control Board. In addition to employing personnel who meet federal and State licensing and certification requirements, Contractor shall provide training programs to ensure compliance with Contract Standards. Contractor shall notify the City in writing when any position is filled or replaced.
Standard of Performance. Contractor shall operate, manage, maintain and monitor the Wastewater System in such a manner as to prevent Influent, Effluent and Residuals from contaminating, bypassing, releasing, discharging, leaking or spilling on or into the environment, in accordance with Contract Standards. -7-
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B. Specific Operations Responsibilities
1. Influent/Effluent Responsibilities
Effluent Responsibilities. Contractor shall operate, manage, maintain and monitor the Wastewater System on a twenty-four (24) hour per day, seven (7) day per week basis and shall collect, receive and treat Influent, discharge Effluent, handle, transfer, transport, manage, and dispose of Residuals, process and treat all Sludge, control odor, and otherwise operate, manage, maintain and monitor the Wastewater System in compliance with Contract Standards. Contractor shall not be responsible for collecting, receiving or treating Influent to the extent the Influent exceeds the WWTP design conditions through no fault of Contractor. The design conditions are as follows:
DESIGN CONDITIONS
PARAMETER DESIGN CONDITION
Average Influent Flow 1.2 mgd
250 mg/L
Influent BODS
2.502 Ibs/day
250 mg/L
Influent TSS
2.502 Ibs/day
Influent pH 6.0 - 9.0 standard units (SU)
Effluent Disposal. Contractor shall haul and dispose of Residuals at a disposal site(s) authorized by City and approved by the State. Contractor shall not store in esiduals on the WWTP Site in any manner that may violate Contract Standards. Contracto hall indemnify City, in accordance with Paragraph VIIB of this Agreement, for any and a liability arising out of the transportation and disposal of Residuals.
C. Recordkeeping. Contractor shall keep and maintain such logs, records, testing results and other documents as are necessary to comply with Contract Standards.
Odor Control Responsibilities
a. Odor Control Guarantee. Contractor shall operate, manage, maintain and monitor the Wastewater System so as to prevent or minimize the generation of odors and to comply with all limits and requirements established by Contract Standards.
Bioxide Program. Contractor shall implement the City's bioxide program. City shall provide bioxide to Contractor at the City's expense.
3. Emergency Response. At all times. Contractor shall be available to and shall respond promptly to all Emergencies, including any unauthorized release, discharge, leak or -8-
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spill of Influent, Effluent, or Residuals, regarding the Wastewater System, as required by Contract Standards. Contractor shall be responsible for all Emergency Repairs and for developing and implementing an Emergency Response Plan for the Wastewater System, as set forth in this Paragraph III.B.3.
Emergency Repairs. During an Emergency, Contractor may
conduct any repair to any unit of equipment, even if the cost to repair such unit of equipment exceeds five-thousand dollars ($5,000.00), exclusive of labor and overhead, without obtaining prior approval from the City. Contractor must notify the City's Program Manager of an Emergency and secure prior approval for an Emergency Repair from the City's Program Manager unless the Emergency precludes obtaining such approval.
Emergency. Response Report. When prior approval is infeasible, within ten (10) days after completing an Emergency Repair, Contractor submit a report to the City describing the nature of the Emergency, any known or suspected cause of the Emergency, the nature of the repairs, the cost of equipment, materials and/or supplies required for the repair, the cost of any labor or staff time to respond to the Emergency, and the expected life of the repair.
C. Compensation for Emergency Repairs. Compensation for an Emergency Repair shall be as provided for in Paragraph IV.B.2 of this Agreement.
Emergency Response Plan. Contractor shall develop and
implement, as of the Contract Date, an Emergency Response Plan that complies with Contract Standards. As required by Contract Standards, but at a minimum, at least one time each year, Contractor shall review the Emergency Response Plan, update the plan to reflect any changes that have been identified, and review the Emergency Response Plan with personnel. At a minimum, the Emergency Response Plan shall address the following topics:
(i) Equipment failures, including mechanical failures and overflows;
(ii) Power failures;
(iii) Natural disasters and terrorism;
(iv) Coordinating with police, fire departments and other appropriate agencies;
(v) Notification of proper authorities, including the City and Governmental Bodies and the public;
(vi) Locations of the facilities, main breakers, and open channels;
(vii) Emergency contact information for utilities and Wastewater System personnel;
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(vill) Voltages at the facilities;
(ix) Toxic loadings in wastewater streams;
(x) Emergency equipment inventory;
(xi) Records preservation procedures;
(xii) Inventory and locations of chemicals, industrial waste, alternative supplies of parts, equipment, goods and
services;
(xili) Chain of command;
(xiv) Evacuation locations;
(XV) Priority repair list;
(xVI) Site maps; and
(xvii) Follow-up and closure procedures.
Response to Unauthorized Release, Discharge, Leak, Spill. On the occurrence of any unauthorized release of Influent, Effluent or Residuals into the environment from or in connection with its operation, management, maintenance and monitoring of the Wastewater System, Contractor shall take the following actions:
(i) Contractor shall notify all Governmental Bodies with jurisdiction over the Wastewater System in accordance
with Contract Standards and shall fulfill all applicable reporting requirements established by Contract Standards with respect thereto.
(ii) Immediately following the initial notification of the applicable Government Body(ies), or to the extent
practicable, concurrently therewith, Contractor shall notify the City of any such unauthorized release.
(iii) Contractor shall prepare a memorandum evidencing such notification and reporting and provide copies thereof to the City, together with any documents provided to the relevant Governmental Body(ies) regarding the release.
(iv) Contractor shall coordinate with the City and all
appropriate Governmental Bodies in effectuating the
prompt remediation of any unauthorized release in
accordance with Contract Standards. Contractor shall bear the cost associated with performing any such cleanup and -10-
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remediation measures, except to the extent such measures qualify as Major Maintenance.
4. Safety. Contractor shall administer a formal safety program including written procedures and policies, to ensure compliance with Contract Standards. Contractor shall hold periodic, but at least monthly, employee meetings on safety issues. The safety program shall include the following items:
a. Purpose, including safety goals, standards and guidelines; Safety coordinator designation and responsibilities, including monitoring new regulations relating to workplace safety; c. Description of safety programs;
d. Personal protective equipment;
e. Safety inspection program;
f. Spill prevention and control measures;
g. Preparation of a health and safety manual intended for dissemination to employees;
h. Hazard communications program. including information on chemical inventories, material safety data sheets, training, and hazardous material labeling;
i. Training programs;
j. Reporting of accidents;
Lock out/tag out;
1. Confined space entry;
m. Chemical handling; and
Fire protection.
Security. Contractor shall maintain reasonable security procedures and protocols to ensure security of the Wastewater System against security threats in compliance with Contract Standards. Fences and locks shall be maintained in neat order and with proper structural integrity.
License Management. Contractor shall ensure that all federal State and local approvals, licenses, and certifications necessary to operate, manage, maintain and monitor the Wastewater System are current and in full force and effect. The City shall be responsible for costs associated with obtaining permits, approvals, licenses and certifications necessary 65059 00204132162057.7
for operating the Wastewater System, but shall not be responsible for the costs associated with personnel certifications, licenses or approvals. Contractor shall be responsible for the costs associated with obtaining approvals, licenses and certifications for personnel.
C. Specific Management Responsibilities
Management System. Contractor shall procure, develop and/or utilize a computerized maintenance management system ("CMMS") and shall maintain, upgrade, replace and repair, as appropriate, such CMMS during the Term as required by Contract Standards. The CMMS shall be operational at all times, shall be kept up-to-date to account for removals from. additions to, and repairs and maintenance of the Wastewater System. Contractor shall make available all information maintained through, in or on the CMMS to the City at all reasonable times and shall retain such information, either in hard copy or electronic format, as required under Paragraph VI (Ownership and Maintenance of Documents) of this Agreement. The CMMS must integrate with the City's Geographical Information System for the Wastewater System.
Training. Contractor shall annually assess the competency of its staff and develop a plan to provide training to all personnel. The training assessment and program shall comply with all requirements of the Contract Standards, including, without limitation, Los Angeles Regional Water Quality Control Board's Cease and Desist Order No. R4-2012-0077.
CIWQS Management and Compliance. Contractor shall submit all data 'equired by Contract Standards to the California Integrated Water Ouality System.
D. Specific Maintenance Responsibilities
faintenance Generally. Contractor shall pertorm or cause to bi erformed all Normal Maintenance and Major Maintenance of the machinery, equipment structures, improvements and all other property constituting the Wastewater System, in accordance with Contract Standards and shall keep the Wastewater System in good working order, condition and repair at all times. For the avoidance of doubt, any repairs or maintenance required for City-owned computers, servers or IT-related equipment shall be handled as Normal or Major Maintenance and processed by the Contractor and City accordingly.
Normal Maintenance. Except as otherwise provided in the approved Normal Maintenance Schedule pursuant to Paragraph III.D.2.a of this Agreement, Contractor shall, at its sole cost, provide for all labor, wages, salaries, utilities, materials, supplies, equipment, spare parts, consumables, such as chemicals and lubricants, and services which are necessary for the inspection and Normal Maintenance of the Wastewater System, as required by Contract Standards.
Normal Maintenance Schedule. Within thirty (30) days after the Contract Date, Contractor shall prepare and submit to the City for approval a Normal Maintenance schedule for each major unit of equipment employed in the operation of the Wastewater System. Within thirty (30) days after receiving the proposed Normal Maintenance Schedule from Contractor, City shall either approve or request revisions to the proposed schedule. Contractor shall submit a revised schedule to the City within fifteen (15) days of -12-
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receiving such request for revisions, if any. Thereafter, the City may approve or request further evisions, subject to the timelines set forth above. On receiving written approval of the Norma Maintenance Schedule from the City, the Contractor shall implement the schedule. The Norma Maintenance Schedule shall include, at a minimum, routine and preventative maintenance of, but not limited to, the following:
(i) WWTP, Collection System, Saltwater Distribution System. and Low Flow Diverter System;
(ii) Collection System cleaning and televising ("CCTV"); City shall bear CCTV costs;
(iii) Collection System and water service taps repair and maintenance;
(iv) Updating system maps; City shall bear costs associated with third party work to update the Geographic Information System maps;
(v) Maintenance of vehicles and vactors; City shall bear costs associated with maintenance;
(vi) Inspection of lateral construction;
(vii) Maintenance of hydrants;
(vili) Maintenance of valves;
(ix) Flushing Saltwater Distribution System;
(x) Exercising Saltwater Distribution System valves and hydrants; and
(xi) Maintaining pumps and intake; City shall bear the cost f maintaining the under-water portion of the intake system lying with Avalon Harbor.
b. Normal Maintenance of Collection System and Saltwater Distribution System Lines. When Collection System and/or Saltwater Distribution System lines require Normal Maintenance, Contractor's duties shall be to uncover the area to be repaired. complete the necessary repair, backfill and restore the area.
Normal Maintenance of WWTP Appearance. Contractor shall maintain the WWTP in a clean, neat, orderly, and professional manner. Contractor shall submit a written proposal to modify or conduct any maintenance activity that modifies the appearance of the WWTP.
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Normal. Maintenance Warranty. Contractor shall complete all Normal Maintenance activities in a professional and workmanlike manner and shall warrant that all materials and equipment furnished under this Agreement shall be new, unless otherwise permitted by the City, and free of any defect whether provided by the Contractor or any subcontractor or supplier. The Contractor shall remedy at its expense any damage to the Wastewater System caused by any warranted work, negligent act or omission of Contractor or any subcontractor hired by Contractor.
3. Major Maintenance. City shall be responsible for Major Maintenance, for activities undertaken to significantly increase efficient capacity or expected service life, and for planned and non-routine expenditures that are otherwise budgeted for by the City. Except as otherwise provided in this Agreement for the provision of Emergency Repairs that also qualify as Major Maintenance, Contractor shall submit to the City a request for all Major Maintenance activities and shall obtain prior written approval from the City before undertaking any activity constituting Major Maintenance. A request for Major Maintenance shall describe the nature of the activity, the reason for the requested activity, the estimated cost of the activity together with documentation supporting the estimate, and whether the Contractor or another entity can undertake the activity. The City may approve, approve with modifications, or deny the requested Major Maintenance activity in writing, which writing may constitute the terms and conditions of a separate agreement. If approved or approved with modifications, City may coordinate the completion of such Major Maintenance activity with the Contractor, subject to the City's compliance with Applicable Law. City is under no obligation to engage Contractor in any Major Maintenance activity.
Recordkeeping. Contractor shall maintain a monthly log of and supporting records for all Normal and Major Maintenance activities, all customer service requests, all inspections, an inventory of all equipment and all spare parts available for Normal Maintenance activities and records of all requests to the City for Major Maintenance. Contractor shall make such records available to the City for inspection at all reasonable times.
Costs. Compensation for costs associated with Major Maintenance activities shall be as set forth in Paragraph IV.B.2 of this Agreement.
E. Specific Monitoring and Testing Responsibilities
Monitoring. Contractor shall develop and implement an inspection and monitoring program for the Wastewater System as required by Contract Standards. The inspection and monitoring program shall include surveillance of Wastewater System for main breaks, valve box damage, valve operability, visible damage to hydrants and other appurtenances, storage facilities and appurtenances, entry hatches, vent screens, overflows, storage infrastructure and facilities, and other appurtenances. The inspection and monitoring program shall include, but not be limited to the following activities:
a. Saltwater Distribution System. Contractor shall locate and repair leaks and breaks in the Saltwater Distribution System while minimizing service interruption and pedestrian and traffic inconvenience, make service connections utilizing the best techniques and - 14-
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devices available, and plan and carry out system flushes, including providing notice to customers. City shall cooperate with Contractor in providing notice to customers. b. Valves and Hydrants. Contractor shall implement a reasonable preventive maintenance and replacement program and schedule for valves and hydrants, which shall include annual inspection and testing to isolate areas in need of maintenance. Each December, Contractor shall submit a report of the past year's activities and propose a schedule for the upcoming year in the annual Operations and Management Report, pursuant to Paragraph G.2 of this Agreement.
Vehicles and Equipment. Contractor shall monitor vehicles and equipment used in the operation, management, maintenance and monitoring of the Wastewater System. Notwithstanding the foregoing, Contractor shall not be responsible for costs associated with the maintenance of vehicles and equipment that are not owned or provided by the Contractor.
2. Testing. Contractor shall perform all testing and monitoring required by Contract Standards. All testing and monitoring shall be conducted in a safe and accurate manner. Contractor shall accurately document the results of all tests and shall preserve all such documentation as required by Contract Standards. At a minimum, Contractor shall satisfy the a. create monitoring and testing reports for operating processes and environmental conditions;
b. complete and file all reports required by Contract Standards and provide a copy of such report to the City;
c. maintain the laboratory analysis and sampling program in accordance with the most current Environmental Laboratory Accreditation Program (ELAP) approved revision of the Standard Methods for the examination of Water and Wastewater analysis procedures and in accordance with Contract Standards;
d. perform or coordinate, as needed, sampling and bioassays required by the California Ocean Plan. A complete bioassay shall consist of both biological and chemical analyses required to test one specie per testing year. "Testing year" means the period beginning August 1 and ending July 31: The City shall bear the cost of the bioassay performed by a third party.
sample and analyze WWTP Influent, Effluent and receiving waters as required by Contract Standards; and
f. coordinate with the City's geographical information system to store, manage, analyze and map all spatially-referenced information.
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Recordkeeping. Contractor shall keep and maintain such logs, records, testing results and other documents as are necessary or appropriate to comply with Contract Standards.
Communication Responsibilities. Contractor shall communicate promptly and professionally with the City, Governmental Bodies, the public and others in accordance with Contract Standards. Contractor's communications responsibilities include the following:
Communication with City. Contractor shall communicate directly with appropriate City staff as needed to perform any work under this Agreement. Contractor's Representative shall attend City Council meetings and relevant committee meetings.
Contractor's Representative shall promptly respond to any communications initiated by the City.
Communication with Governmental Bodies. Contractor shall communicate, as required by Contract Standards, with Governmental Bodies and shall cooperate with the City in providing information in a prompt manner.
Communication with Public. Contractor shall receive and respond to customer service inquiries and complaints and shall coordinate with the City in its educational and outreach activities.
Reporting Responsibilities. Contractor shall submit to the City a monthly and an annual Operations and Management Report in December and shall fulfill other reporting requirements in accordance with Contract Standards.
1. The monthly Operations and Management Report shall include information on the following topics:
a. Wastewater treatment activities, including all testing and monitoring activities;
b. Lift Station activities;
c. Normal and Major Maintenance activities, including any inspections conducted and the results of those inspections; Training activities;
e. Budget and finance;
f. Administrative fines, penalties, and consent orders; g. Odor complaints and other community complaints;
Forecast of future activities or issues;
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i. Overtime hours worked during the month including dates and times worked, the employee incurring overtime hours, and the reason for each overtime hour; and
j. Other relevant information, including any Emergencies addressed.
2. The annual Operations and Management Report, due each December, shall include information on the following topics:
a. A summary of the information provided in the monthly reports; A summary of environmental, safety, and regulatory compliance; C. An assessment of the condition and remaining life of the Wastewater System, details of all modifications made, if any, and an analysis of the effectiveness of repairs, replacements, or upgrades;
An assessment of outstanding issues, including recommendations for changes to Wastewater System operations;
An inflow and infiltration report;
f. An operating budget summary;
g. A report on the disposal of all Residuals;
h. A report of the past year's preventative maintenance and replacement program for valves and hydrants and a schedule for the next year's maintenance and replacement program; and i. Any other relevant information.
3. Other Reporting Requirements
a. CIWOS Reporting. Contractor shall properly file reports and submit information utilizing the CIWQS system, as required by any Contract Standard.
Cease and Desist Order. Contractor shall, as directed by the City and in accordance with Contract Standards, submit all reports and information required by Los Angeles Regional Water Quality Control Board's Cease and Desist Order No. R4-2012-0077 to the appropriate Governmental Bodies and shall provide a copy to the City. - 17-
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IV. COMPENSATION
A. Base Compensation. Subject to subparagraph IV.B of this Agreement, below, relating to adjustments to Base Compensation, City shall pay Contractor the Base Compensation for all services provided pursuant to this Agreement and for all utilities associated with those services, except the cost of the electric utility, which cost the City pays directly. The amount of Base Compensation is set forth in Exhibit A to this Agreement. Contractor shall invoice City on a monthly basis in accordance with the Base Compensation set forth in Exhibit A, as well as any additional expenses or costs that are the responsibility of City pursuant to the terms hereof, and City shall pay the amounts set forth on such invoices within thirty (30) days of receipt thereof.
City may dispute an invoice in good faith, within thirty (30) calendar days of the invoice. City and Contractor shall work together to resolve any disputes as soon as reasonably possible. Upon resolution of the dispute, Contractor shall promptly credit or remit the amount owed to the City, if any.
1. Maintenance Account. On an annual basis, One-Hundred-Twenty- Thousand Dollars ($120,000.00) shall be dedicated to Normal Maintenance of the Wastewater System and shall be placed into a separate Maintenance Account, to be managed by the Contractor. Contractor shall submit to the City a detailed accounting of all items charged against the Maintenance Account on a monthly basis, including receipts and a description of the maintenance activity performed. Any funds remaining in the Maintenance Account at the end of each contract year of the Agreement shall be returned to the City. Any negative balance in the Maintenance Account at the end of each contract year shall be reimbursed to the Contractor by the City. Contractor's duty to engage in Normal Maintenance activities in accordance with Contract Standards shall survive any depletion of funds in the Maintenance Account. If additional funds are required beyond the annual amount of $120,000, City and Contractor will work to determine an additional amount to be added to the annual Maintenance account balance.
Additionally, any expenses for materials and equipment incurred after the $120,000 limit has been reached will be charged to the City at cost plus 10%. In no event shall expenses for labor be marked up.
(Reserved]
B. Adjustments to Base Compensation.
1. Overtime. Contractor shall implement a staffing plan that ensures the proper operation, management, maintenance, and monitoring of the Wastewater System on a twenty-four (24) hour per day, seven (7) days per week basis. Contractor shall pay for all overtime owed to its employees in accordance with applicable law. The Base Compensation includes 1,000 hours of overtime hours at a rate of $127.50 per hour. Any overtime incurred over 1,000 hours shall be a considered out of scope or extraordinary services, and such overtime charges shall be reimbursed by the City at the rate of $127.50 per hour. Additional Overtime requests for Normal Maintenance Activities must be consistent with the Implementation Plan pursuant to Paragraph III.A.I and be pre-approved by the City's Program Manager, or at the Program Manager's election, by City Council, except in the case of overtime during an Emergency, in which case approval for such overtime must be included the Emergency Response Report pursuant to Paragraph III.B.3.
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2. Major Maintenance and Emergency Repairs.
a. Compensation for Major Maintenance. Contractor shall be entitled to compensation for non-Emergency related Major Maintenance activities as set forth in the prior approval issued by the City pursuant to Paragraph III.D.3 Compensation for Emergency Repairs. Contractor shall be entitled to compensation for Emergency Repairs exceeding five-thousand dollars ($5,000.00) per unit of equipment per Incident. The parties acknowledge and agree the Base Compensation is required to ensure the proper operation, management, maintenance, and monitoring of the Wastewater System and shall not be adjusted for Emergency Repairs. Contractor shall be entitled to compensation for Emergency Repairs only after submitting and obtaining approval of an Emergency Response Report to the City on the form provided by the City. The Program Managers shall meet and confer to determine the appropriate method and amount of compensation for the Emergency Repairs, provided however, that the first priority for paying staffing and labor costs for and Emergency Repair shall be from Base Compensation, then as part of the 1,000 hours of Overtime included in Base Compensation, as set forth in Paragraph IV.B.I.
Materials and equipment needed for an Emergency Repair may be charged to the City at cost plus 10%. In no event shall expenses for labor or staff be marked up.
3. Changes in Scope of Work or Services. Prior to commencing a change in the scope of services or type of service to be provided by Contractor, Contractor and City shall mutually agree in writing to the nature of the change in the scope of services and/or type of service and the adjustment to Contractor's Base Compensation for such change. The adjustment to the Base Compensation may be an agreed upon lump sum price, unit price or other agreed upon cost basis.
4. Review of Base Compensation. The amount established as Base Compensation shall be valid for the Term of the Agreement; provided, however, that Contractor shall be entitled to:
a. an automatic annual increase of the Annual Operations Fee portion of the Base Compensation in the amount of three percent (3%) on each anniversary of this Agreement; and
an annual increase in the amount of any increase in cost incurred by Contractor in obtaining the Pollution Liability Insurance required herein.
Contractor may request from the City, in writing, an adjustment to Base Compensation not otherwise provided for in this Agreement, by submitting any documentation supporting the request for an adjustment together with the request. The City shall consider, approve, approve with modifications, which modifications may include an amendment to any term of the Agreement, or deny any such request within thirty (30) days of receiving the request, in its sole discretion. The City has no obligation to approve or approve with modifications any request for adjustment to Base Compensation. Any adjustment to Base Compensation must be made pursuant to a written amendment to this Agreement.
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V. REMEDIES AND DISPUTE RESOLUTION
A. Remedies for Nonperformance
Unauthorized Release, Discharge, Leak, Spill. On the occurrence of any unauthorized release, discharge, leak or spill of Influent, Effluent or Residuals into the environment from or in connection with Contractor's operation, management, maintenance or monitoring of the Wastewater System, City shall have the right to pursue any remedy available to it under this Agreement, at law or in equity. The City's pursuit of such remedy does not excuse Contractor's obligation to remedy the release, discharge, leak or spill as required by Contract Standards. Notwithstanding the foregoing, Contractor shall not be liable to the City for any unauthorized release, discharge, leak or spill of Influent, Effluent or Residuals into the environment to the extent resulting from deficiencies in the Wastewater System design, engineering or construction performed by third parties not procured or managed by Contractor or from the City's failure to approve or conduct any Major Maintenance request submitted by Contractor pursuant to Section III.D.3.
Discharge Resulting in Proceedings. In the event administrative, civil or criminal proceedings are commenced as a result of a violation of Contract Standards caused in whole or part by the negligent error or omission of Contractor, its employees or its subcontractors, Contractor shall be responsible for any fine, penalty or other damage imposed on Contractor or the City to the extent such fine, penalty or other damage imposed results from the negligent error or omission of Contractor. Contractor shall actively participate, and require by contract that its subcontractors actively participate, any hearing or other proceeding before any Governmental Body having authority to impose a fine or penalty, or revoke or modify any Permit, including but not limited to providing expert testimony where appropriate. Contractor shall have the right to challenge, administratively or in court, any fine imposed by a Governmental Body. In no event shall Contractor's payment of a fine relieve Contractor from the performance of any responsibility or obligation under this Agreement.
3. Liquidated Damages.
a. Contractor shall be subject to liquidated damages for failing to perform the following obligations pursuant to this Agreement:
(i) reporting any material violation of any Contract Standard as required;
(ii) keeping monthly maintenance logs as required by
Paragraph III.D of this Agreement:
(iii) attending City meetings as reasonably requested, with adequate advance written notice from the City;
(iv) providing any reports required by Contract Standards within three (3) days after the due date;
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(v) maintaining proper certification as required by any Governmental Body in order to perform the services
contemplated herein;
(vi) responding in a reasonable manner to alarms, customer service inquiries relating to the services being performed hereunder, complaints or emergencies; and
(vii) properly sampling, testing, monitoring or reporting the results of any test as required by Contract Standards.
City shall notify Contractor in writing of any failure to perform any responsibility under this Agreement which may give rise to the payment of liquidate damages. Contractor shall have the right to cure any failure of subparagraphs a(i)-(vii) of this (i) $1,000 for the first failure to perform in any Contract Year; (ii) $2,000 for the second failure to perform in any Contract Year;
(iii) $3,000 for the third failure to perform in any Contract Year;
(iv) $4,000 for the fourth failure to perform in any Contract Year;
(v) $5,000 for the fifth and any subsequent failure to perform in any Contract Year.
C. Contractor shall have the right to contest the occurrence of any lleged violation or failure to cure. In no event shall the payment of liquidated damages reliev 'ontractor from the performance of any particular obligatio Damage to Wastewater System. Contractor shall be liable for all damage to the Wastewater System to the extent caused in whole or in part by the negligent error or omission of Contractor, its employees or its subcontractors and shall cause the damaged equipment or facilities to be repaired or replaced at its sole cost and expense (to the extent of Contractor's responsibility therefore in accordance with this Paragraph).
Other remedies. In addition to those remedies set forth above, the City shall be entitled to terminate the Agreement or pursue any other remedy available in law or equity.
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B. Dispute Resolution.
1. Continued Service. In the event any dispute relating to this Agreement arises between the Parties, Contractor shall continue to provide and perform all services required by Contract Standards pending a subsequent resolution of such dispute.
Informal Dispute Resolution Procedures. The Parties shall attempt to resolve any dispute relating to this Agreement using the informal dispute resolution procedures set forth herein before initiating formal dispute resolution procedures. Informal dispute resolution procedures are as follows:
In the event one Party identifies a dispute relating to this greement, that Party shall notify the other Party, pursuant to Paragraph IX.C of this Agreemer I writing of the nature of the dispute, and shall request an opportunity to meet and confer wit the other Party.
Within ten (10) days of receiving notice of a dispute, the Party receiving such notice shall respond to the notice by arranging a date and time to confer with the Party who submitted the notice.
At the date and time so arranged, the Parties shall attempt in good faith to reach a mutual understanding and resolution of the disputed item. The date and time may be continued, as needed, to provide sufficient time for consideration of the issues and may be conducted, in part, through electronic or telephonic means of communication. Once the Parties reach agreement, they shall confirm their mutual understanding in a writing called a "Memorandum of Understanding" signed by both Parties.
3. Formal Dispute Resolution Procedures. If, after engaging in informal dispute resolution procedures, the Parties are unable to reach a mutual understanding and confirm that understanding in a written Memorandum of Understanding, either Party may declare that the informal negotiations have been exhausted and request non-binding mediation, as follows:
Requesting Mediation. Either party may request non-binding mediation of any dispute arising under this Agreement. The non-requesting party may decline the request in its sole discretion. If there is concurrence that any particular matter shall be mediated, the provisions of this Paragraph V.B.3 of this Agreement shall apply. b. The Mediator. The mediator shall be mutually acceptable to the Parties and shall have no current or on-going relationship with either Party. The mediator shall have full discretion as to the conduct of the mediation.
C. Mediation Process. Each Party shall participate in good faith in the mediator's program to resolve the dispute until and unless the Parties reach agreement with respect to the disputed matter or one Party determines in its sole discretion that its interests are not being served by the mediation. Any mediated resolution or agreement shall be confirmed in a writing signed by both Parties.
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d. Mediation Costs. Each Party shall pay one-half (1/2) of the mediation costs.
4. Judicial Resolution of a Dispute. If there is no concurrence that a particular matter shall be mediated or if a Party determines that mediation is not serving its interests, either Party may initiate judicial legal or equitable proceedings in compliance with Contract Standards.
VI. OWNERSHIP AND MAINTENANCE OF DOCUMENTS
Contractor shall maintain copies of all testing and monitoring results, all maintenance logs, all customer complaints, all correspondence relating to services provided under this Agreement, and all other documents prepared under, required by, or used in the performance of services under this Agreement. All copies shall be maintained at Contractor's expense and shall immediately become and remain the property of the City. On request, Contractor shall immediately provide or make available to the City any such document. Contractor shall retain all such documents for a period of five (5) years after receipt of final payment under this Agreement, as it may hereafter be amended and/or extended. At least thirty (30) calendar days prior to any destruction of documents at the conclusion of the five (5) year retention period, Contractor shall notify the City, which shall either agree to the destruction or authorize the records to be forwarded to the City for further retention.
VII. INSURANCE AND INDEMNITY
A. Insurance. Contractor shall, at Contractor's sole expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of work hereunder and the results of that work by the Contractor, Contractor's agents, representatives, employees, or subcontractors. Contractor shall procure and maintain insurance in the forms and amounts set forth as follows:
1. Commercial General Liability / Comprehensive Public Liability The Contractor shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance / Comprehensive Public Liability Insurance, in a form and with insurance companies acceptable to the City.
b. Coverage for Commercial General Liability
Insurance/Comprehensive Public Liability Insurance shall be at least as broad as the following:
(i) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001)
c. Commercial General Liability Insurance/Comprehensive Public Liability Insurance must include coverage for the following:
(i) Bodily Injury and Property Damage
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(ii) Personal Injury
(iii) Premises/Operations Liability
(iv) Products/Completed Operations Liability
(v) Aggregate Limits that Apply per Project
(vi) Explosion, Collapse and Underground (UCX) exclusion deleted
(vii) Contractual Liability with respect to this Agreement (viii) Broad Form Property Damage
(ix) Independent Consultants Coverage
All such policies shall name the City of Avalon, its City Council, and each council member thereof, its officers, employees, appointed officials and agents as Additional Insureds under the policy. Policies shall contain a provision stating that the Contractor's policies are primary insurance and that the insurance of the City or any named additional insureds shall not be called upon to contribute to any loss. e. All such policies must include waiver of the right of recovery because of payments made for injury or damages arising out of Contractor's work pursuant to this Agreement.
Notice of cancellation or change of coverage. Insurance afforded by this policy shall not be cancelled or changed so as to no longer meet the specified City insurance requirements. Contractor shall provide five (5) days advanced written notice to the City of any cancellation or change in any insurance policy. Such notice shall be made by certified mail, return receipt requested to the City at the address specified in the Contract Documents.
g. The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City.
Automobile Liability
At all times during the performance of the work under this Agreement the Contractor shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
b. Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 0001 (ed. 6/92) covering automobile liability, Code 1 (any auto).
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C. The automobile liability program may utilize deductibles, but not a self-insured retention, subject to written approval by the City.
All such policies shall name the City of Avalon, its City Council, and each council member thereof, its officers, employees, appointed officials and agents Policies shall contain a provision stating that the
Contractor's policies are primary insurance and that the insurance of the City or any namec additional insureds shall not be called upon to contribute to any loss.
3. Workers' Compensation/Employer's Liability
At all times during the performance of the work under this Agreement and for 24 months following the date of Project completion and acceptance by the City, the Contractor shall maintain workers' compensation in compliance with applicable statutory requirements and Employer's Liability Coverage in amounts indicated herein.
Such insurance shall include an insurer's Waiver of Subrogation in favor of the City and will be in a form and with insurance companies acceptable to the City.
C. If insurance is maintained, the workers' compensation and employer's liability program may utilize either deductibles or provide coverage excess of a self- insured retention, subject to written approval by the City.
Before beginning work, the Contractor shall furnish to the City satisfactory proof that Contractor has taken out for the period covered by the work under this Agreement, full compensation insurance for all persons employed directly by Contractor to carry out the work contemplated under this Agreement. all in accordance with the "Workers' Compensation and Insurance Act," Division IV of the Labor Code of the State of California and any acts amendatory thereof. Contractor shall require all subcontractors to obtain and maintain. for the period covered by the work under this Agreement, worker's compensation of the same
4. Contractors Pollution Liability Insurance
At all times during the performance of the work under this Agreement, Contractor shall maintain Contractor's Pollution Liability coverage, in a form and (i) Additional insured endorsement. Insurance afforded by this policy shall apply to the City, City Council, and the officers, agents, appointed officials and employees of the City, volunteers, individually and collectively, as additional insured.
(ii) Primary insurance endorsement. Insurance afforded by the additional insured endorsement shall apply as primary insurance -25-
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and other insurance maintained by the City, its officers, agents, volunteers, and employees shall be excess only and not
contributing with insurance provided under this policy. (iii) Waiver of the right of recovery because of payments made for injury or damages arising out of Contractor's work pursuant to this Agreement.
Notice of cancellation or change of coverage. Insurance afforded by this policy shall not be cancelled or changed so as to no longer meet the specified City insurance requirements. Contractor shall provide five (5) days advanced written notice to th City of any cancellation or change in any insurance policy. Such notice shall be made b Cecilet mail, return receipt requested to the City ar the address spocified in the Contract Excess Liability Insurance. At all times during the performance of the work under this Agreement, Contractor shall maintain excess liability insurance above the required Commercial General, Automobile and Employer's Liability insurance in a form and with insurance companies acceptable to the City.
Minimum Policy Limits Required. The following insurance limits are required for each policy required by the Agreement and must not be diluted by any of Contractor's other projects or events outside of this Agreement. An umbrella or excess liability policy meeting all requirements of this Paragraph VII may be used in conjunction with primary coverage limits to meet the minimum limit requirements herein; provided however, that the minimum policy limit set forth below must available even where a single event may be covered by multiple policies.
Minimum Policy Limits
Commercial General $15,000,000 per
Liability occurrence/$15,000,000 aggregate for
bodily injury, personal injury and
property damage per policy period
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage per policy
period
Worker's Compensation/ Statutory requirements / $2,000,000 Employer's Liability per occurrence or disease per policy period
Pollution Liability $15,000,000 per occurrence and
$15,000,000 aggregate per policy
period
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Excess Liability $5,000,000 per occurrence and
aggregate per policy period
If Contractor maintains additional coverage or higher limits than those indicated herein, then the City is entitled to additional coverage or higher limits maintained by the Contractor.
7. Evidence Required.
Prior to execution of the Agreement, the Contractor shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 2010 (or insurer's equivalent) signed by the insurer's representative, Certificate of Insurance (most recent version of Acord Form 25 or equivalent), and Additional Insured Endorsement verifying compliance with the requirements above. All evidence of insurance shall be signed by a properly such insurance.
8. Qualifying Insurers
All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(i) Insurance carriers shall be qualified to do business in California and maintain an agent for process within the state. Such insurance carrier shall have not less than an 'A" policyholder's rating and a financial rating of not less than "Class VIl" according to the latest Best Key Rating Guide.
9. Additional Insurance Provisions
The foregoing requirements as to the types and limits of insurance coverage to be maintained by Contractor, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
b. If at any time during the life of the Agreement, the Contractor fails to maintain in full force any insurance required by the Agreement documents the City may terminate the Agreement, procure insurance and withhold from payments of the Base Compensation or Charge to Contractor the cost of such insurance, or pursue any other remedy available under this Agreement, at law or in equity.
C. The Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. -27-
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d. The City may require the Contractor to provide complete copies of all insurance policies in effect for the duration of the Project. e. Neither the City, nor its City Council, nor any member thereof, nor any of the directors, officers, employees, appointed officials, agents or volunteers shall be personally responsible for any liability arising under or by virtue of the Agreement.
B. Indemnity
To the fullest extent permitted by law, Contractor agrees to indemnify, defend, (with independent counsel approved by the City) and hold harmless the City and its officers. employees and elected and appointed officials, and volunteers (each, an "Indemnified Party") from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses. and defense costs, including but not limited to reasonable attorneys' fees, court costs and costs of alternative dispute resolution) regardless of nature or type, expressly including but not limited to those arising from bodily injury or property damage, arising out of or resulting from any negligent error or negligent or wrongful act or omission of the Contractor, Contractors agents, officers, employees, subcontractors, or independent consultants hired by Contractor under this Agreement. The Contractor's indemnity obligations shall be limited to the extent liability is caused or contributed to by the active negligence or omission or willful misconduct of an Indemnified Party. In such case, the Contractor's indemnification obligation shall be reduced in proportion to the Indemnified Party's share of liability for its active negligence or willful misconduct, if any. The acceptance or approval of the Contractor's work by an Indemnified Party shall not relieve or reduce the Contractor's indemnification obligation. The provisions of this Paragraph shall survive completion of the work under this Agreement or the termination of this Agreement and are not limited by the provisions relating to insurance. In no event shall Contractor be responsible for any indirect, consequential, special or punitive damages arising out of, in connection with or as a result of this Agreement. Except in the event of willful misconduct or reckless and intentional actions of Contractor, Contractor's aggregate liability to City shall not exceed the greater of (a) an amount equal to the total fees paid or payable to Contractor under this Agreement and (b) the amount recovered or recoverable under the insurance required herein.
VIII. TERMINATION
For Cause. Any party may terminate this Agreement for material breach and Contractor may terminate in the circumstances set forth in subparagraph A.l of this paragraph, provided that written notice of the breach or circumstance has been given, with a demand to cure, and the party has failed to cure the breach circumstance or to begin acting diligently to cure the breach or circumstance within ninety (90) days of such notice.
1. Contractor may terminate this Agreement for cause under this Section VIII.A. in the event any of the following occurs:
a. City Manager or other City representative fails to approve an Emergency Repair and the conditions in subparagraph (c) arise; or -28-
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b. A Major Maintenance request submitted by Contractor is not approved by City and the conditions in subparagraph (c) arise; and The existence of (a) or (b) above results in unsafe working conditions for Contractor's personnel according to the laws and regulations of the Occupational Safety and Health Administration or other applicable laws or regulations or otherwise and/or results in Contractor needing to devote materially more resources (personnel and/or maintenance) to perform the services contemplated hereunder such that the Base Compensation provided for herein would not yield profit for Contractor.
B. Post-termination procedures.
City's Actions to Ensure Continuity of Service. On or in anticipation of any termination of this Agreement, including expiration of the Term, City may take any and all actions necessary or desirable to operate, manage, maintain and monitor the Wastewater System, including entering into negotiations or contracts with other operators and contractors.
2. Contractor's Actions to Ensure Continuity of Service. On any termination of this Agreement, including expiration of the Term, Contractor shall, at the request of the City provide for an effective continuity of service and the smooth and orderly transition of management to the City or to a subsequent operator designated by the City. Such service shall be for a period of up to one hundred twenty (120) days and shall include providing technological advice and support and delivering any plans, drawing, renderings, operating manuals, computer programs, data, software licenses, software, spare parts, documents and any other information useful or necessary for the continued operation, management, maintenance and monitoring of the Wastewater System. Unless specifically owned by Contractor, all data, software licenses and software shall be surrendered to the City. In addition, Contractor shall take the following actions:
promptly provide the City and any subsequent operator with a one- time training program relating to the operation, management, maintenance and monitoring of the Wastewater System;
b. promptly take all action necessary to protect and preserve the Wastewater System;
promptly remediate any unauthorized release, discharge, leak or spill in accordance with Contract Standards;
promptly deliver to City a list of all supplies, materials, machinery, equipment, property and special order items delivered or fabricated but not yet incorporated into the Wastewater System;
promptly provide the City with a reasonable supply of chemicals and spare parts in light of the nature and condition of the Wastewater System; -29-
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t. promptly provide the City with a list of all files relevant to the Wastewater System and access and security codes with instructions and demonstrations showing how to open and change such codes;
g. promptly provide the City with all documents, books, records and other materials relating to the performance of work under this Agreement; promptly provide the City with copies of any contracts, together with a statement of the items ordered and not yet delivered for each contract, the expected delivery date of all such items, the total cost of each contract and the terms of payment, and the estimated cost of canceling each contract;
promptly assign to the City any contract that the City elects, in writing and in its sole discretion, to have assigned to it; j. enter into no further contracts or contracts unless the City directs otherwise;
manufactures or contractor: and promptly transfer to the City all warranties given by any promptly take such other actions as may be necessary to effectuate and confirm the foregoing matters, to ensure the continued operation of the Wastewater System, or as may be necessary or desirable to minimize the City's costs.
Payment of Certain Costs.
By Contractor. If the City terminates this Agreement for cause, Contractor shall be obliged to pay the costs and expenses of undertaking its obligations under subparagraph 2 of this Paragraph. If Contractor fails to perform any material obligation, the City may perform such obligation and the Contractor shall pay on demand all reasonable costs incurred by City in the performance thereof.
By City. If termination is due to a material breach by City, the City shall pay the Contractor a pro-rated amount of Base Compensation due and owing on the termination date and shall pay all reasonable costs and expenses incurred by the Contractor in satisfying its obligations under subparagraph 2, of this Paragraph.
IX. GENERAL CONTRACT PROVISIONS
Law and Venue. This Agreement and disputes arising out of or relating to this Agreement shall be governed by the laws of the State of California. Any action or proceeding arising out of or relating to the Agreement or the Parties' relationship shall be brought in a State court situated in the County of Los Angeles, California.
Amendments. Any and all requested changes and/or additions to this Agreement must be submitted in writing to the City Manager, clearly defining the requested amendment and any associated cost. The City Manager is hereby authorized to and may, in his or her sole -30-
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discretion, approve amendments pertaining to day-to-day operations of the Facility, such as hours of operation, maintenance and plumbing, personnel problems, insurance and similar matters. No amendment is effective unless in writing and signed by an authorized representative of each Party.
Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective Parties may provide in writing for this purpose. Notices shall be in writing and delivered in person or by certified mail, return receipt, postage prepaid. Until otherwise notified in writing of a change, all notices and communications shall be sent to the respective Parties as follows:
CITY: City Manager
City of Avalon
410 Avalon Canyon Road
P.O. Box 707
Avalon, CA 90704
Phone: (310) 510-0220
Fax: (310) 510-0901
With a copy to: Scott Campbell
City Attorney
c/o Best Best & Krieger LLP
300 South Grand Avenue, 25th Floor
Los Angeles, CA 90071
CONTRACTOR: Jennifer Ferrari
Montrose Water and Sustainability Services,
Inc.
1 Park Plaza, Suite 1000
Irvine, CA 92614
Attn: Jennifer Ferrari
With a copy to: Montrose Environmental Group, Inc.
Attn: Legal Department
1 Park Plaza, Suite 1000
Irvine, CA 92614
D. Independent Contractor Status. Contractor is and shall at all times remain as to the City a wholly independent contractor. Neither the City nor any of its agents shall have control over the conduct of the Contractor and how it performs daily tasks, except as herein set forth. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are in any manner the agents of the City of Avalon except to the extent authorized by this Agreement or by the City Manager.
Integration. This Agreement supersedes any and all other agreements, either oral or written, between the parties and contains all of the covenants and agreements between the -3I-
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parties. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement or promise not contained in this Agreement shall not be valid, binding or relied upon in any way.
Any modification or amendment to this Agreement will be effective only if signed by the party to be charged.
Severability. If any clause or provision is this Agreement is ruled invalid by any court of competent jurisdiction, the invalidity shall not affect any of the remaining provisions herein, and this Agreement shall be construed and enforced as if such invalid portion did not exist.
G. Waiver. The waiver by a party of any breach or violation of any term, covenant, or condition of this Agreement or of any provision, ordinance or law shall not be deemed to be a waiver of any earlier or later breach or violation of any term, covenant, or condition of this Agreement or of any provision, ordinance or law.
H. Counterparts. This Agreement may be executed in counterparts.
Drafting Responsibility. Neither party shall be held to a higher standard than the other party in the interpretation or enforcement of this Agreement, as a whole or any portion hereof, based on drafting responsibility.
Attorneys Fees. In any action brought to declare the rights and obligations provided for herein or to resolve a dispute arising in relation to this Agreement or to enforce the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys fees in an amount to be determined by the court.
Assignment or Transfer. Contractor shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
L. Force Majeure. Contractor shall use all best efforts, in accordance with Contract Standards to continue operating, managing, maintaining and monitoring the Wastewater System in the event of an Uncontrollable Circumstance. Neither party shall be held liable or responsible to the other party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from an Uncontrollable Circumstance. (Signatures on following page]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates listed below:
Date: MONTROSE WATER AND
SUSTAINABILITY SERVICES, INC., a
Delaware corporation
By:_
Name:
Title
Date:
CITY OF AVALON, a municipal corporation
By:_
Name:
Title_
BEST BEST & KRIEGER LLP
By:_
APPROVED AS TO FORM: Name:
Title
Date:
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EXHIBIT A
BASE COMPENSATION AND CONTRACT PRICE
The amount of compensation for all services provided pursuant to this Agreement is ONE- MILLION-FOUR-HUNDRED -TWENTY THOUSAND DOLLARS ($1.420,000.00) per year ("Base Compensation"). This Base Compensation is further allocated as follows:
Annual Operations Fee $1,107,500.00
Maintenance Account (Account held by City) $120,000.00
Overtime $127,500.00
Pollution Liability Insurance $65,000.00
Total Base Compensation $1,420,000.00
Base Compensation shall be invoiced by Contractor on a monthly basis, and payable by City within 30 days of receipt of each invoice.
EXHIBIT A
65059 00204 32162057 7
CITY OF AVALON CITY COUNCIL
MEETING DATE: April 18, 2023 AGENDA ITEM:
ORIGINATING DEP: Administration CITY MANAGER: DuM
PREPARED BY: David Maistros, City Manager
Devin Hart, Management Analyst
SUBJECT: Contract Assignment for Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
RECOMMENDED ACTION(S): Consider a request to assign the remaining term of the semi- exclusive shore boat franchise agreement with Catalina Coastal Tours, LLC to Catalina Coastal Shoreboat Service, LLC. Provide direction to Staff.
REPORT SUMMARY: With limited exceptions, for more than 30 years, a singular waterfront business has been contracted by the City for both the annual installation, maintenance and operation of the End Float located at the end of the City's float at the base of the Green Pleasure Pier, and the semi-exclusive shore boat franchise agreement.
On March 15, 2017, the City of Avalon (City) entered into a five-year Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement (hereafter "Shore Boat Agreement") with Catalina Coastal Tours, LLC dba Catalina Coastal Tours and Fishing. The Agreement established specific hours of operation, a fee schedule, and annual $239,000 subsidy provided from the City to the Contractor in monthly installments. The Agreement also included two 5 year renewal terms, but only guaranteed the subsidy for the initial 5-year term.
On December 4, 2018, the City Council authorized the release of a request for proposals for qualified waterside business parties to contract to build and operate an end float for exclusive use at the base of the City-owned float at the end of the Green Pleasure Pier. Only one proposal was received by the January 2019 deadline. On March 19, 2019 the City Council waived all irregularities and awarded a contract to Catalina Island Coastal Tours and Fishing for the building and operating of the End Float.
As outlined in the March 19, 2019 Staff Report regarding the End Float Award: "The main criteria for evaluation and the impetus for the solicitation of the End Float was to alleviate congestion within the harbor, which Staff believes would be accomplished if the lease is awarded to Catalina Island Coastal Tours & Fishing. They currently hold the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with the City. They propose to operate both the Shore Boat operations and their fishing charters off of this End Float, opening up the existing docks experiencing congestion currently."
In March 2021, the City Council approve an amendment to the Shore Boat Agreement with Catalina Coastal Tours granting a 5-year renewal term, increasing the fee schedule, and increasing the annual subsidy by $50,000 (approximately 20%) to $289,000.
Recently, the principal operator from Catalina Coastal Tours indicated their desire to assign the remaining term of the Shore Boat Agreement to Catalina Coastal Shoreboat Services, LLC. An introductory letter was received on April 10, 2023 from Catalina Coastal Shoreboat Services, LLC outlining their qualifications and interest in the assignment.
Concerns exist regarding the assignment of the remainder of the Shore Boat Agreement. Most significantly, it is unclear how the assignment will impact congestion in Avalon Harbor. With current dock loads, the Harbormaster has indicated adding shore boat operations to City-owned floats will not be possible. Having two different entities control the Shore Boat Agreement and the End Float Lease may not be in the best interests of the City.
Further, though the proposed assignee has visited Avalon Harbor to observe operations, they have no history as waterside permit holders.
The City Council has three potential actions it may consider regarding this assignment request:
1. Deny the request.
2. Request more information from Catalina Coastal Tours and Catalina Coastal Shoreboat Services regarding the assignment and continuity of operations.
3. Allow the assignment on a trial basis with conditions to guarantee managerial and operational consistency.
4. Allow the assignment without conditions.
GOAL ALIGNMENT: Not aligned.
FISCAL IMPACTS: There will be no change to the budgeted sum through the remaining term of the contract.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Undetermined.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
2. First Amendment to the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
3. Letter of Introduction from Catalina Coastal Shoreboat Services, LLC
4. March 19, 2019 Staff Report
•
ORIGINAL
CITY OF AVALON
SEMI-EXCLUSIVE SHORE BOAT FRANCHISE AND
SHORE BOAT SERVICES PROVIDER AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 15' - day of MARCH - 2017 "Effective Date") by and between the City of Avalon, a municipal organization organize inder the laws of the State of California with its principal place of business at 410 Avalo Canyon Road, Avalon, California 90704 ("City") and Catalina Coastal Tours, LLC, a California limited liability company, d/b/a Catalina Coastal Tours & Fishing with its principal place of business at 105 Pebbly Beach Road, Avalon, California 90704 (Contractor"). City and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Background.
Avalon Bay on Santa Catalina Island ("Harbor") and the City facilities serve as a primary point of ingress and egress for large numbers of people. The relatively small size of the Harbor and the City's facilities make it necessary to control and coordinate businesses operating in the Harbor to avoid undue congestion, to assure against hazard, excessive noise and traffic, and to prevent confusion and injury. It is necessary and vital to the safe and efficient movement of people that the number, nature and scope of businesses on the City's facilities in the Harbor be regulated to protect the public health, safety and welfare. A semi-exclusive franchise for shore boat services is vital and necessary to the public safety and welfare and the proliferation of such services within the limited area available would cause excessive traffic, congestion and confusion.
Shore boat service is an integral part of Avalon Harbor and a vital necessity for City residents and persons visiting City, and supports City attractions, hotels and restaurants.
Contractor.
Contractor desires to perform and assume responsibility for the provision of certain shore boat services required by City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing passenger carrying services to public clients and is familiar with the plans of City.
Project.
City desires to engage Contractor to render such shore boat services for City ("Project"), also referred to as "Services" as set forth in this Agreement.
Semi-exclusive Franchise.
Contractor shall be granted, under this Agreement, a semi-exclusive franchise to operate shore boat services in City waters.
65059.00003129601680.2
•
2.5 Annual Subsidy.
2.5 Definitions.
Terms used in this Agreement, and not otherwise defined herein, shall have the mily Musicial Coth in Chapter 2- Harbor Regulations, Article 1, Section 10-2.101 of the
3. TERMS.
3.1 Scope of Services and Term; Grant of Exclusive Franchise; Annual Subsidy
3.1.1 General Scope of Services: Contractor promises and agrees to furnish to City all labor, materials, tools, equipment, services, vessels, and incidental and customary work necessary to fully and adequately supply the shore boat services necessary for the Project, herein referred to as "Services". All vessels operated by Contractor as part of the Services shall be driven only by properly licensed operators.
Said operators shall be either (1) employees of Contractor, or (2) under contact to Contractor as lessee-operators, or (3) under contract to Contractor as owner-operators.
The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. Exhibit "A" also details the number, type and age of the vessels for operation of the Services to be provided and maintained, in good operating service and repair, by Contractor throughout the term of this Agreement.
Contractor shall replace, as necessary, any such vessels in order to provide the Services as required herein. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term: The term of this Agreement shall be as follows:
The term of this Agreement shall be five (5) years commencing as of the Effective Date (the "Initial Term"). The term may be extended, pursuant to a written amendment to this Agreement, for an additional five (5) years, in the discretion of Contractor. After the first five (5) year extension, the term may be extended, pursuant to a written amendment to this Agreement, for an additional five (5) years in the discretion of either Party.
3.1.3 Semi-Exclusive Franchise:
Except for shore boat/water-taxi services furnished by cruise ships or such services by other providers specifically requested by cruise ships, which shall be subject to City's reasonable approval, City hereby grants Contractor for the term of this Agreement the exclusive authority, right and privilege to operate and maintain a shore 65059.0000312960E680.2
boat/water-taxi service and to transport passengers and personal baggage and goods for hire over and upon City waters for services that originate in and end in City waters. City waters shall mean waters within the City limits or within the boundaries of the tidelands and submerged lands granted to, or under lease to, City. privileges and immunities that it now has under the law to fully patrol and police its waters, and to provide for shore boat services during any period that Contractor is in breach of this Agreement. The granting of this Agreement shall in no way interfere with the right of City to fully use said waters for any public purpose. Operations of Contractor shall in no way interfere with the exercise of the police power of City or with the
3.1.4 Annual Subsidy:
In order to assist in the provision of the Services for the benefit of City residents and visitors, City shall provide a subsidy to Contractor during the Initial Term of Two Hundred Thirty Nine Thousand Dollars ($239,000) annually ("Annual Subsidy"). The Annual Subsidy amount for the first year of the Initial Term is based on an anticipated start date for the Services of March 1, 2017 ("Anticipated Start Date"). Should the Services not commence on the Anticipated Start Date, the Annual Subsidy for the first year of the Initial Term shall be reduced in the amount of Six Hundred Fifty Four Dollars ($654) a day from the Anticipated Start Date until the date the Services are actually commenced. Any such reduction shall be made to the first payment to Contractor of one quarter of the Annual Subsidy amount, as detailed below.
The purpose of the Annual Subsidy is to assist Contractor with its operational requirements for the Services as shown in Exhibit "C" , attached hereto and incorporated herein by reference, which sets forth Contractor's justification for the Annual Subsidy. One quarter of the Annual Subsidy amount (reduced as provided above) shall be paid within fourteen days after the Effective Date; and thereafter, beginning with the fourth month of the Initial Term, one twelfth of the Annual Subsidy amount shall be paid to Contractor on a monthly basis, by the fifteenth (15th) day of each month, in equal monthly installments. City shall have the right to withhold payment of the Annual Subsidy, or any portion thereof, if Contractor is not performing the Services in accordance with the terms of this Agreement. In addition, City may deduct from the Annual Subsidy any amounts owed by Contractor to City under this Agreement and not timely paid by Contractor. Unless otherwise approved pursuant to an amendment to this Agreement, no subsidy shall be provided for any extension term of this Agreement.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates: Independent Contractor: The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel 65059.00003129601680.2
performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services: Contractor shall perform the Services expeditiousiy, within the term of this Agreement, and in accordance with the schedule attached to this Agreement as Exhibit "B" and incorporated herein by reference ("Schedule"), and any other schedules agreed upon by the Parties. Contractor represents that it has the professional and technical personnel and the required number of vessels to perform the Services in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
Conformance to Applicable Requirements: All Services of Contractor shall be subject to the approval of City.
3.2.4 City's Representative: City hereby designates the Harbor Master, or his or her designee, to act as its representative for the performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative: Contractor will designate a designee to for the performance of this Agreement ("Contractor's
Representative"). Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Agreement. Contractor's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services: Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, City consultants and other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees: Contractor shall pertorm all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the protessional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and 65059.000031296016802
subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from City, any services necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein. Any employee of Contractor or its subcontractors who is determined by City to be uncooperative, incompetent, , a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to City, shall be promptly removed from the Project by Contractor and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.8 Laws and Regulations: Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services including, but not limited to, all rules and regulations of the U.S. Coast Guard, all ordinances, resolutions and laws of City, and all Cal/OSHA requirements, and shall give all notices required by law.
Contractor shall be liable for all violations of such laws and regulations in connection with Services. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to City, Contractor shall be responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, Its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.9 Insurance: Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "D" attached to and incorporated herein by reference.
3.2.10 Safety: Contactor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees and passengers appropriate to the nature of the Services and the conditions under which the Services are to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all passengers, employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined procedures, trenching and shoring, equipment and other safety • devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.3 Contractor Fees and Payments; Rates of Fare.
3.3.1 Harbor Use Fee: Contractor shall pay to City a harbor use fee of 7% 65059.00003\29601680.2
gross revenues generated in operating the Services ("Harbor Use Fee"). The Harbor Use Fee shall be reported and paid utilizing the "Harbor Use form" provided by City, unless otherwise specified by the City Finance Department. Payment of the Harbor Use Fee shall be made in such frequency as required by the City Finance Department, and in accordance with all other requirements of the City Finance Department.
3.3.2 Mooring Lease Fee: Contractor shall pay to City an annual lease mooring fee of One Thousand, Three Hundred Nine Dollars ($1,309.00) each, for up to (3) three 30' moorings for the shore boat operation. The Mooring Lease Fee is adjustable, and may be increased by City upon prior notice to Contractor. Payment of the Mooring Lease Fee shall be made within thirty (30) days of receipt of an invoice for such fee by Contractor from City.
3.3.3 Rates of fare. The rates of fare for the transportation of persons and baggage and personal goods for the Services authorized by this Agreement are as set forth in Exhibit "A". Fare amounts set forth in Exhibit "A" include the total price to be charged to passengers, inclusive of the Harbor Use Fee and any other City taxes/fees.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection: Contractor shall maintain complete and accurate records with respect to all fares collected 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 and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all such records for a period of three (3) years from the termination date of
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Termination for Convenience: Following the Initial Term, City may terminate the whole or any part of this Agreement without cause by giving Contractor six (6) months' prior written notice which clearly expresses City's intent to terminate the Agreement, and specifies the effective date of such termination.
Termination For Cause: City may, by written notice to
Contractor, terminate the whole or any part of this Agreement for cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination.
3.5.1.3 Effect of Termination; Additional Services: Termination of this Agreement for any or no reason, in accordance with the provisions above, shall be without liability to City. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 65059.00003129601680.2
3.5.2 Delivery of Notices. All notices permitted or required under this Ager adres as he respective paris may paris a her or is press oral such CONTRACTOR:
Catalina Coastal Tours & Fishing
0 Box 1812
Avalon, CA 90704
Attn: Scott Gorelczenko
Phone: (310) 513-3566
CITY:
City of Avalon
P.O. Box 707
410 Avalon Canyon Road
Avalon, CA 90704
Attn: Harbor Master
Phone: 310 510-0535
Fax: 310 510-2640
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3 Confidentiality: All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without the prior written consent of City, be used by Contractor for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Contractor which is otherwise known to Contractor or is generally known, or has become known, to the related industry shall be deemed confidential. Contractor shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts: The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees: If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 65059 00003129601680.2
3.5.6 Indemnification: To the fullest extent permitted by law, Contractor shall defend, indemnify and hold City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or relating to any alleged acts, errors, or omissions of Contractor, its officials, officers, employees, agents, and Contractors arising out of or in connection with the performance of the Services, including without limitation the payment of all consequential damages, expert witness fees, and attorneys' fees and other related costs and expenses. Contractor shall defend, at Contractor's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents, or volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Contractor shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by City, its directors, official's officers, employees, agents, or volunteers.
3.5.7 Entire Agreement: This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
3.5.8 Governing Law: This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence: Time is of the essence for each and every provision of this Agreement.
3.5.10 Successors and Assigns: This Agreement shall be binding on the successors and assigns of the parties.
3.5.11 Assignment or Transfer: Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.5.12 Construction; References; Captions: Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, 65059.00003\29601680.2
employees, agents, and volunteers except as otherwise specified in this Agreement. The
3.5.13 Amendment; Modification: No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.14 Waiver: No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver benefit, privilege, or service voluntarily given or performed by a Party shall give the othe Party any contractual rights by custom, estoppel, or otherwise.
3.5.15 No Third Party Beneficiaries: There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.5.16 Invalidity: Severability: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.5.17 Prohibited Interests: Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.5.18 Equal Opportunity Employment: Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation or identity or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Contractor shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 65059.00003129601680.2
3.5.20 Authority to Enter Agreement: Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.5.21 Counterparts: This Agreement may be signed in counterparts, each of which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required: Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein. vithout prior written approval of City. Subcontracts, if any, shall contain a provisio naking them subiect to all provisions stipulated in this Agreement [Signatures on following page]
65059.00003129601680.2
SIGNATURE PAGE
EXCLUSIVE SHORE BOAT FRANCHISE AND
SHORE BOAT SERVICES PROVIDER AGREEMENT
CITY OF AVALON CATALINA COASTAL TOURS,
LLC D/B/A/ CATALINA COASTAL
TOURS & FISHING
03-15-17 or these llage 3/5417
City нируде
Name: Sharon Gorelezenko
Attest:
The: Owner
Damellode 03/15117
city Clerk
[If Corporation, TWO
SIGNATURES, President OR Vice
President AND Secretary, AND
CORPORATE SEAL OF CONTRACTOR
REQUIRED]
Approved as to Form:
3/10/17 Name: Scott M. Gorelezenko
City Attorne Date
Title: Ersonal Manayer
65059.00003129601680.2
EXHIBIT "A"
SCOPE OF SERVICES, VESSEL DETAILS, RATES OF FARE
AND OTHER REQUIREMENTS
1. Services.
taxis, and shall obtain such certificate as may be legally required. b. Place of Business. Contractor shall maintain a place of business in the City so that Contractor may be contacted by telephone at all times. Mechanical means of answering may be provided, but messages must be checked at frequent intervals. All shore boats must be equipped with VHF capabilities.
Contractor currently maintains a location of business at 105 Pebbly Beach Road. This location is staffed seven (7) days a week from 0900-1700 with an office manager, and is considered Contractor's home base for operations. This location is equipped with a VHF radio and phone system to maintain communication with captains and vessels.
After normal operating hours, the phone system is forwarded to Captain Scott Goreiczenko for 24 hour 7 day a week coverage. Contractor shall notify City of any changes to the identified Captain, or to the location of Contractor's business. c. Staffing. Contractor has a current staff of three captains, and anticipates adding an additional three captains to its full time staff. Contractor shall maintain a staff level sufficient to provide the Services in accordance with the Schedule, and all other requirements contained in this Agreement.
d. Ticketing. Contractor shall also provide a ticketing location for purchasing a "convenience card" or "locals discount card" allowing purchase of bulk rides using credit, debit or cash as set forth in the fees section of this Agreement. e. Call Box Stations. Contractor shall install and maintain a "call box" station on the Green Pier, and may install and maintain a "call box" station on the Cabrillo Mole, to allow passengers to contact Contractor for Services during all times of operation. Calls made via the "call box" shall be forwarded to Contractor's cell phone and shall be answered during operating hours of the Services as set forth in Exhibit "B". f. Dock Space. City will make dock space available for a shore boat operation. 65059.00003129601680.2
2. Vessels.
a. New Vessels. Contractor shall provide two (2) 2017 24' WingCat Shore Boats (the "New Vessels"), as depicted below, which are designed to carry as many as twenty one (21) passengers, and are manufactured in San Diego, California. Contractor shall obtain from the United States Coast Guard ("US"), a certificate of inspection ("COl") upon completion, which COl shall dictate the final number of passengers. If the number is less than 18, another New Vessel shall be provided by Contractor. These vessels have a single Evenrude out-board gas engine, and shall be outfitted with VHF radios and all required safety equipment per the USCG. Contractor shall make its best efforts to ensure that the New Vessels are in operation and being used to provide the Services by June 15, 2017.
MULTI-PURPOSE VESSEL
Y7 20x:sva
M***12:001*
65059.00003129601680.2
b. Interim Use and Backup Vessels. The Parties agree that until the New Vessels have been delivered to Contractor, Contractor shall utilize its current fleet of three (3) Uninspected Passenger Vehicles ("UPV), sometimes referred to as the "Back-up Vessels". . The Back-up Vessels are all gas powered, and were built in 2005, 2006 and 2008. Two of these vessels, "Mojo" and "C-Star", have single out-board motors "Diversity" has a single in-board engine. The Back-up Vessels have engines that are between six (6) to thirteen (13) months old. These vessels shall be operated as six (6) passenger vessels, and shall be available to assist during peak demand in the summer months if the New Vessels are insufficient to meet demand. Contractor has represented to City that the Back-up Vessels are not required by the USCG to possess a COl provided that they are operated with no more than six (6) passengers, and one (1) crew, aboard. Notwithstanding the foregoing, it shall be Contractor's obligation to comply with all legal requirements related to use and operation of the Back-up Vessels.
Until the New Vessels are delivered to Contractor, Contractor may moor the Back-up Vessels at the two (2) 30' moorings leased by Contractor for the New Vessels pursuant to Section 3.3.2 of the Agreement.
c. California Public Utilities Commission ("PUC") Vessel Common Carrier Certificate.
Contractor acknowledges the requirement to meet the PUC requirements for a Vessel Common Carrier certificate/permit ("Certificate"), if applicable. Contractor has represented to City that the vessels to be used in performance of the Services are not required to carry a Certificate. Notwithstanding the foregoing, it shall be Contractor's obligation to comply with the PUC requirements for a Certificate, and to obtain such Certificate if legally required. Contractor shall timely obtain and furnish to City a ruling from the PUC with a determination as to whether or not Contractor is required to obtain a Certificate to operate the Services in City.
d. Maintenance and Repair of Vessels. Contractor shall, at all times, maintain the vessels used in performance of the Services in attractive condition, and in good and safe operating service and repair.
[Exhibit "A" continued on following page]
65059.000031296016802
3. Foo Schedule.
Unless otherwise approved by the Harbor Master, in writing, Contractor shall charge the following fees (rates of fare) for shore boat use.
Fee Schedule
Type Description
In Harbor Per Passenger
Outside Harbor Per Passenger
* Resident Commuter Card 10 Trips Inside Harbor
* Resident Commuter Card $45.00 10 Trips outside Harbor Convenience Card $40.00 10 Trips inside Harbor
Convenience Card 10 Trips outside Harbor
65059.00003129601680.2
EXHIBIT "B"
SCHEDULE OF SERVICES
Unless otherwise approved in writing by the Harbor Master, Contractor shall provide the Services in accordance with the following schedule ("Schedule").
The times set forth below represent the first and last time on each day of the week specified that the shore boat leaves the dock.
Shoreboat Schedule
Month Sun-Thursday Friday-Saturday # of Boats
*January 0800-2200 0800-2400 1
*February 0800-2200 0800-2400 1
** March 0800-2200 0800-2400
** April 0800-2200 0800-2400
**May 0800-2200 0700-0200
** June 0700-2400 0700-0200
**July 0700-2400 0700-0200
**August 0700-2400 0700-0200
September 0700-2400 0700-0200
*October 0700-2400 0700-0200
*November 0800-2200 0800-2400 1
*December 0800-2200 0800-2400 1
* Slower months 1 boat per shift
** 2 boats Scheduled 1000-1800
Additional 3rd and 4th vessels avall on as needed basis Notwithstanding the number of boats identified in the Schedule, Contractor shall provide a sufficient number of vessels to ensure that no passenger will be required to wait longer than ten minutes for Services. Contractor shall provide the number of boats specified in the above Schedule using the New Vessels and, as needed, using its Back- up Vessels to meet additional demand.
The Service area shall include any and all mooring areas controlled by City and anchorage area within the vicinity of City.
65059.00003129601680.2
EXHIBIT "C"
BASIS FOR SUBSIDY
Subsidy Requirement $239,000
Shoreboat RevenueS 200,000.00 Based on 50,000 riders
City Subsidy $ 239,000.00
Gross Revenue Total | $ 439,000.00
Costs
Boat Financing $ 70,000.00|36 month term
Labor $ 221,500.00 (7500 Hours Annually includes taxes) Fuel $ 18,000.00
Maint $ 12,510.00
Insurance $ 17,000.00
Mooring $ 2,618.00
Bottom Service $ 1,680.00
Rent $ 3,000.00
Harbor Tax 7% $ 14,000.00
Motor Replacement $ 9,000.00 3 year replacement program Taxes $ 28,000.00
Booking CC Fees $ 3,000.00
Miscl Exp $ 10,000.00 Accounting/ Banking / Marketing
Total Exp. $ 410,308.00
Net Profit $ 28,692.00
Note: All figures based on annual totals
65059.000031296016802
EXHIBIT "D"
INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage to comply with these requirements. If that existing coverage supplement or endorse the existing coverage to do so. Contractor acknowledges tha he insurance coverage and policy limits set forth in this section constitute the minimun amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City.
Contractor shall provide the following types and amounts of insurance:
Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $5,000,000 per occurrence. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit.
B. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Contractor owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. City will waive the foregoing business auto coverage requirement for non-owned automobiles if Contractor will not be utilizing automobiles in the performance of this Agreement. If Contractor or Contractor's employees will use personal autos in any way on this project, Contractor shall provide evidence of persona auto liability coverage for each such person
C. Vessel Protection and Indemnity (P&I) with liability limits of at least $5,000,000 per occurrence. The P&l policy must include, at a minimum, general, legal, and pollution liability coverage, and shall be written on a form acceptable to City.
1. Pollution liability coverage limits under the P&l policy shall be, at minimum, as follows:
$500,000 per claim covering Contractor's activities under this Agreement for liability arising out of a sudden, accidental and gradual pollution if 65059.00003129601680 2
vessels with outboard fuel tanks are utilized, and $1,000,000 per claim if vessels with in- board fuel tanks are utilized
(b) Pollution legal liability, of no less than $1 million, applicable to bodily injury; property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; cleanup costs; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims; all in connection with any loss arising from Contractor's activities under this Agreement.
Contractor may satisfy the requirements of this section through the purchase of multiple policies as necessary.
If the P&l policy contains a general aggregate limit, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limits specified above.
D. Contactor shall maintain, during the term of this Agreement, Workers' Compensation insurance for all of employees as required by Labor Code section 3700 of the State of California, Employers Liability with limits of $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy. The insurer shall agree to waive all rights of subrogation against City, its officers, officials, and employees for losses arising from work falling within the terms of this Agreement.
For clarification, pursuant to California law, all of Contractor's employees performing under this Agreement must be covered under Worker's Compensation insurance.
Contractor's employees that are captain and crew are subject to the Jones Act. Any Contractor employees involved in land based operation in and around water (dock) and/or involved in the maintenance and repair of boats must be covered under USL&H.
Insurance procured pursuant to these requirements shall be written by insurers that are licensed carriers in the state of Califomia and with an A.M. Bests rating of A- or better and a minimum financial size VII.
1. Contractor agrees to have its insurer endorse the third party general liability molovees and agents
edition prior to 1992. Contractor also agrees to require all contractors, and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contractor, or Contractor's employees, or agents, from waiving the right of subrogation prior to a loss. Contractor agrees to waive subrogation rights 65059.00003129601680.2
against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.
5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent.
7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Contractor's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contractor or deducted from sums due Contractor, at City option.
8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of suspension, cancellation, voidance or reduction in coverage imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate.
9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contractor or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other Insurance or self insurance available to City.
65059.00003129601680.2
10. Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of Contractor Contractor agrees to monitor and review all such coverage and assumes al responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.
11. Contractor agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contractor's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to City. At that time City shall review options with Contractor, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.
12. City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving Contractor ninety (90) days advance written notice of such change. If such change results in substantial cost to Contractor, City will negotiate additional compensation proportional to the increased benefit to City.
13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.
14. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.
15. Contractor will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to his agreement. This obligation applies whether or not the agreement is canceler or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.
16. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter 65059.00003129601680.2
from Contractor's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.
17. The provisions of any workers' compensation or similar act will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.
18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all- inclusive.
19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.
20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.
21. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
22. All insurance shall be written on an occurrence-made form, except the pollution liability policy which is on a claims-made form of insurance requiring Contractor to provide proof of coverage (extending reporting) for a minimum of three (3) years following termination of this Agreement.
Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 65059.00003129601680.2
ORIGINAL
FIRST AMENDMENT TO CONTRACT AGREEMENT FOR
CITY OF AVALON SEMI-EXCLUSIVE SHORE BOAT FRANCHISE AND
SHORE BOAT SERVICES PROVIDER AGREEMENT
This FIRST Amendment is made effective March 15, 2022 to the Contract Agreement by and between the City of Avalon ("City) and Catalina Coastal Tours, ILC, a California limited liability company, d/b/a Catalina Coastal Tours & Fishing ("Contractor") dated the 15" day of March 2017.
The terms and conditions of the Agreement are amended as follows:
2.5 Annual Subsidy.
Provided that the Contractor is operating in accordance with the terms of the Agreement, City shall provide a subsidy to Contractor during the Renewal Term (defined below) in the amount of Two Hundred Eighty-Nine Thousand Dollars ($289,000) annually.
3.1.2 Term.
The term of this First Arendment shall be five (5) years commencing March 15, 2022 and ending on March 15, 2027. After this Renewal Term, the term may be extended, pursuant to a written amendment to this Agreement, for an additional five (5) years if notice is provided by either party no earlier than March 15, 2026 and no later than September 15, 2026 and upon terms agreed to by the parties.
Exhibit A - Fee Schedule
Unless otherwise approved by the Harbor Master, in writing, Contractor shall charge the following fees (rates of fare) for shore boat use.
Type Price Description
In Harbor $5.00 Per Passenger
Outside of Harbor $7.00 Per Passenger
Resident Commuter Card $45.00 10 Trips inside Harbor
Resident Commuter Card $63.00 10 Trips outside Harbor
Convenience Card $50.00 10 Trips inside Harbor
Convenience Card $70.00 10 Trips outside Harbor
Except as modified above, all terms and conditions of the Agreement shall remain in effect.
CITY OF AVALON
Nomie Aladde
By:
Denise A. Radde
City Manager and City Clerk
CATALINA COASTAL TOURS, LLC D/B/A CATALINA COASTAL TOURS & FISHING Son Made.
By: By:
ignature Signature
Scott we. Goretrenko Sharon Carelerenko
Name (Print) Name (Print)
CATALINA COASTAL SHOREBOAT SERVICE, LLC
10 April 2023
VIA EMAIL ONLY
Mr. David Maistros, City Manager
Ms. Devin Hart, Management Analyst
City of Avalon
P.O. Box 707
Avalon, CA 90704
RE: Introduction of Catalina Coastal Shoreboat Service, LLC Dear Mr. Maistros and Ms. Hart:
As a brief introduction, l am Larry Southerland, President and Co-Owner of Catalina Coastal Shoreboat Service, LLC (CCSS). I understand from recent correspondence that you have had with Scott Gorelczenko, that both your office and the City Council require additional information to better allow the City to consider the proposed assignment of the shore boat contract from Catalina Coastal Tours and Fishing to my company. As such, I provide the following:
Who We Are/Familiarity with the Contract.
Catalina Coastal Shoreboat Service, LLC (CCSS) is a Service-Disabled Veteran Owned Small Business (SDVOB) established in 2023 to provide a seamless transition from Catalina Coastal Tours and Fishing's present shore boat operations to our own. I have personally read all contract documents, have been on island on multiple occasions actively learning (with my staff) the shore boat operations, and understand all contract requirements.
It is our intention to retain all present/existing management and employees of the company with an eye towards increasing efficiencies and expanding services/modernizing the fleet (developing/building a larger capacity WingCat) to better serve the City of Avalon. CCSS has a self- contained back-of-house operation which will be providing all administrative, HR, and accounting services for on-island operations. Scott Gorelczenko will remain our on island General Manager and boat captain. The proposed assignment will be seamless and neither the City, its residents, or guests will notice any operational change from that currently provided with the same staff, fleet, and procedures being left unaltered. Upon approval, we will move our on-island operations to the same office currently utilized by Catalina Coastal Tours and Fishing.
Our Experience.
Other entities founded/operated by the owners of CCSS include:
Magpie Enterprises Inc., a Service-Disabled Veteran Owned Small Business (SDVOSB) founded to develop innovative solutions for our customers by providing the highest quality multi-disciplinary 16880 West Bernardo Drive. Ste. 250 San Diego. CA 92127 | (619) 300-7658 technical services for the Submarine community including supporting the development and operation of the US and NATO Subsea rescue systems. Our ownership, senior management and staff are all veterans of the United States Navy and have on average 35 plus years of experience in all aspects of submarine design, operations, maintenance, and rescue as well as Naval engineering, small boat fabrication and repair, port operations and casualty response. Magpie's ability to serve our customers is based on the multi-faceted talents, experience, capabilities, and initiative of our people. Magpie successfully held the NAVSEA Submarine Rescue Contract and engaged in multiple subsea rescue/recovery operations. Additionally, subsidiaries of Magpie Enterprises, Inc. previously held several security boat/barrier contracts (San Diego) and port operations contracts (Joint Base Pearl Harbor Hickam, Hawaii) with the Department of Defense.
Magpie Boat Works, LLC, (MBW) is a full-service boat construction, overhaul and refit facility. Located at the southern part of the San Diego Bay in Chula Vista MBW specializes in refits, repairs and new construction of boats up to 50 meters long and builds the WINGCAT line of vessels like those presently used by Catalina Coastal Tours & Fishing in their shore boat operations within Avalon Harbor. MBW specializes in the construction of aluminum and steel hull workboats, engine repowers, custom fabrications and more. Specific to the commercial and government sectors, MBW also provides highly specialized services including new construction and custom metal fabrications of vessels ranging from minesweepers, training support crafts, patrol boats, dive boats, workboats, and barges.
Our Owners/Operators.
I am the President and Co-owner of CCSS and the other described entities. Since founding Magpie Enterprises in 2005, I have been directly involved in the development of all operational policies, procedures, strategic planning, and marketing efforts. Moreover, I serve as the principal contact for all customers and oversees performance timetables, quality assurance, partner relations, and the internal administration of the company including personnel, fiscal responsibility, and operational practices. Previously, I cultivated a successful career with the U.S. Navy retiring as a Commander. In my 32 years in the U.S. Navy, I held increasingly senior positions - that facilitated the development of my extensive capacities in all facets of material, maintenance, submergence rescue vehicle and engineering management.
Gary Southerland is the Vice President and CFO and Co-owner of CCSS and Magpie Enterprises Inc., having supported numerous large contracts including the U.S. Navy Submarine Rescue Contract. His responsibilities have expanded from logistical and fiscal management support for the Submarine Rescue Decompression/Recompression System to that of comprehensive global inventory control and global movement of the submarine rescue system in support of exercises, emergencies and the global sourcing of support vessels. Gary retired from the U.S. Navy as a Commander. His career began as a supply officer onboard the USS Louisville (SSN-724) where he started to develop his experience in supply support management. In 1991, his leadership and supply management skills were enhanced in his successful tour at the Naval Supply Depot, Subic Bay, Philippines - followed by a tour as a Material Officer on the USS Abraham Lincoln (CVN-72). Gary further nurtured his talents by earning a Master of Arts in Business Administration and Financial Management at the Naval Post Graduate School in 1997.
16880 West Bernardo Drive. Ste. 250 San Diego. CA 92127 | (619) 300-7658 Certification of Good Standing/Financial Capability.
The owners of Catalina Coastal Shoreboat Service, LLC are seasoned business operators. In our nearly 20 years of operations neither the company or any of its principals/members or employees have ever been or are currently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in any transaction with any local, state, or federal department or agency. In fact, the owners of CCSS through their various other entities both previously held and currently hold multiple federal contracts. I attach for your reference a Certificate of Good Standing from the California Secretary of State.
We have performed an assessment of the projected income and expenses for the period April 2023 through March 2024 and have determined that the income for operations provide adequate reserves for historical/projected expenses using actual and historical data. Projected expenses included general maintenance, with the expectation that future expenses for new engines and new boats would be required to maintain full operations to support the City contract. The company intends to use profits/capital to purchase and maintain boats for volume of visitors to the island in peak seasons.
Future projections include similar results with the ability to maintain a positive cash flow to provide assurance to management and the City that this business venture will be profitable and the service to the general public will maintain current standards with the anticipated future enhancements from newer equipment which will be more efficient providing confidence of continued operations for years Should you require any additional information, please advise so that we may provide same. I look forward to meeting you and the City Council at a future date. very runyours
outherland
cc: Scott Gorelczenko
Attachment - Certificate of Good Standing
16880 West Bernardo Drive. Ste. 250 San Diego. CA 92127 | (619) 300-7658 Secretary of State
Certificate of Status
1, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:
Entity Name: Catalina Coastal Shoreboat Service LLC
Entity No.: 202355516168
Registration Date: 03/07/2023
Entity Type: Limited Liability Company - CA
Formed In: CALIFORNIA
Status: Active
The above referenced entity is active on the Secretary of State's records and is authorized to exercise all its powers, rights and privileges in California.
This certificate relates to the status of the entity on the Secretary of State's records as of the date of this certificate and does not reflect documents that are pending review or other events that may impact status.
No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.
IN WITNESS WHEREOF, I execute this certificate and affix 0 F
THE ST the Great Seal of the State of California this day of April 10, 2023.
2 ш
SHIRLEY N. WEBER, PH.D.
CALIFORNI Secretary of State
Certificate No.: 098759541
To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov.
CITY OF AVALON CITY COUNCIL
MEETING DATE: March 19. 2019 ADENDA ITEM:
ORIGINATING DEP: Harbor Department CITY MANAGER:
PREPARED BY: Harbor Master
SUBJECT: Award Contract - End Float RFP
RECOMMENDED ACTION(S): Waive any irregularities and award the Pleasure Pier End- Float Project RFP contract to Catalina Island Coastal Tours & Fishing for the building and operating an End Float on the Green Pleasure Pier.
REPORT SUMMARY: Authorization was granted at the December 4, 2018 City Council Meeting for Staff to solicit proposals for the building and operating a float at the end of the Green Pleasure Pier. Staff developed the Request for Proposals (RFP) scope and drafted the RFP documents, the terms of which align with other City RFPs and was approved by the City Attorney's office.
The RFP was issued to the public on December 5, 2018. City Staff conducted a mandatory Job Walk to review the scope and terms stipulated in the RFP on January 4, 2019.
Representatives from two businesses were in attendance, Catalina Island Coastal Tours & Fishing and Catalina Classic Cruises. After advertising the RFP for five weeks & 2 days, the RFP closed on January 18, 2019 and the City received one proposal from Catalina Coastal Tours & Fishing.
The proposal has been thoroughly reviewed by City Staff; staff considered the respondent's proposal based on completeness of their proposal to meet City requirements and expectations as defined in the RFP. The respondent was required to include in their Proposal the following information:
A. Nature of Waterside Business: Describe Respondent's interest and commitment in performing this service. An officer of the Respondent who is authorized to contractually bind the firm and to negotiate an agreement with the City shall sign the letter. Provide name, title, address, email, and telephone number of this officer.
B. Synopsis. Proposal shall include a synopsis covering the relevant features of Respondent's proposal.
C. Business Plan and Approach and Equipment: Equipment needs for occupying and utilizing the property will require the use and possible building a Float on which the contracted business will base its operations. The float will have to meet the specifics size dimensions listed in the contract.
D. Experience and Reputation: The qualifications and experience of Contractor's personnel who will be overseeing services and managing operations.
E. Benefits to City: Any other matters that show that the Respondent will be in the best interest of the city.
The main criteria for evaluation and the impetus for the solicitation of the End Float was to alleviate congestion within the harbor, which Staff believes would be accomplished if the lease is awarded to Catalina Island Coastal Tours & Fishing. They currently hold the Semi-exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with the City. They propose to operate both the Shore Boat operations and their fishing charters off of this End Float, opening up the existing docks experiencing congestion currently.
Based on the completeness of their application and ability to relieve congestion, Staff recommends City Council waive any irregularities and award the contract to Catalina Coastal Tours & Fishing (CCTF). Staff is requesting City Council provide direction on the term negotiations as detailed in CCTF's proposal:
1. Effective start date May 2020 through October 2040. The contract term stated in the RFP is for Ten (10) years, with two additional Five (5) year options. The respondent is requesting a twenty (20) year term, presumably making the prospect of construction of a new float more economically feasible.
2. End Float 80' mooring provided at "No Charge" for the first 7 years.
3. On year 8 mooring will be charged "Going Leased Mooring Rate" for the applicable space. The current annual lease mooring rate for an 60' vessel or greater is $3262. thus they are requesting a $22,834.00 waiver for this term. Staff is agreeable to this request.
4. Approval to moor up to 4 Company vessels on the End Float overnight, then move 1a City moorings. in the off season. Three of the four vessels CCTF currently owns are subject to the Shoreboat Franshise Agreement which provides 3 leased moorings annually. Company is requesting that a fourth vessel, not covered by the Franchise Agreement, pay the prorated annual leased mooring fee for 6 months while the End Float is in place, then nightly mooring fees for the 6 months the End Float is not in place. Staff requests that the End Float agreement state that these four vessels (and not other vessels) tie overnight at the End Float during the six months the End Float is in place. During that time, if weather precludes the four vessels from being tied to the End Float, the three shoreboats be moved to moorings at no additional charge and that the fourth vessel be moved to a mooring and pay the nightly mooring fee.
5. A float will be constructed at CCTF expense as required in the RFP in time for FY2020 Staff is agreeable for the reasons stated above, provided the float and operations are in place prior to May 15, 2020 (subject to weather).
G. If the City exercises 60 Day Termination in the first 5 years a "Early Cancellation" fee of $30,000.00 will be paid to CCTE. Staff is not agreeable to this term and recommends Council not authorize this request as it provides little coverage on the City's end in the event the lessee is not performing according to the City's expectations. Staff recommends moving forward with the standard lease terms.
Staff is requesting authorization to enter into a contract with the terms as stated in the RFP (attached) and additionally prescribed above. The Contractor or City may terminate the agreement with sixty (60) days' written notice to either party.
FISCAL IMPACTS: Unknown.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Cily of Avalon will not have a contractor in place for the summer of 2020 to collect the increase harbor use fees anticipated.
FOLLOW UP ACTION: Implement City Council direction. Execute a contract agreement with Catalina Costal Tours & Fishing.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda.
ATTACHMENTS:
1. City of Avalon Request for Proposal- End Float Project
2. Catalina Costal Tours & Fishing Contract Proposal
CITY OF AVALON CITY COUNCIL
MEETING DATE: April 18, 2023 AGENDA ITEM: 5
ORIGINATING DEP: Administration CITY MANAGER: AMM
PREPARED BY: David Maistros, City Manager
Devin Hart, Management Analyst
SUBJECT: First Reading of an Ordinance Amendment Chapter 4-4.1703 of the Vehicle Code Setting a Date for Mandating Electrification of Commercial Autoettes
RECOMMENDED ACTION(S): 1. Introduce and waive the all further readings of an ordinance of the City of Avalon amending Chapter 4-4. 103 of the Avalon Municipal Code, setting a date for mandating electrification of commercial autoettes. 2. Adopt a resolution waving registration and vehicle hearing fees for commercial autoettes converted to electric in advance of the January 1, 2024 deadline for a period of three years.
REPORT SUMMARY: On December 14, 2022, the City Council held a Special City Council meeting to discuss vehicles in Avalon.
By consensus, the City Council directed Staff to move forward on implementing a phased action plan to speed up the state established timeline for conversion from gas to electric vehicles by requiring new commercial autoettes to be electric.
After consideration, Staff propose the following:
1. Amend the Avalon Municipal Code (AMC), Chapter 4-4.1703, requiring all new commercial autoettes to be electric as of January 1, 2024.
2. Adopt a resolution, waving current vehicle hearing fees and City registration fees for commercial autoettes that are brought to the Island in advance of the January 1, 2024 deadline for a period of three years.
3. Continue to work with Southern California Edison and other Island stakeholders to establish significant charging infrastructure throughout the City.
Per Chapter 4-4.1703, types of Vehicle Permits Commercial, one commercial autoette permit may be granted to any business license holder located within the City limits without being subject to a waiting period as long as it meets certain criteria. Added to the criteria, effective January 1, 2024, those commercial autoettes must also be electric.
Additionally, the amendment corrects a typo in Section 6. Previously, per this section of the AMC, commercial autoette permits were required to have off street parking between the hours of 12:00 a.m. and 6:00 p.m. With this amendment, the section is corrected to between the hours of 12:00 a.m. and 6:00 a.m.
GOAL ALIGNMENT: Congestion and infrastructure.
FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Avalon Municipal Code will not be amended.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. Ordinance
2. Resolution
ORDINANCE NO. _
AN ORDINANCE OF THE CITY OF AVALON AMENDING
TITLE 4, CHAPTER 4, ARTICLE 17 OF THE AVALON
MUNICIPAL CODE, REQUIRING ALL NEW COMMERCIAL
AUTOETTES TO BE ELECTRIC BY JANUARY 1, 2024
WHEREAS, The Council has determined that there are special problems existing in the City relating to the size and nature of the streets and the characteristics and nature of the City itself; and,
WHEREAS, In view of these special problems, the Council hereby determines that special rules regulating the size, number, noise, speed, and classes of vehicles used, permitted, or operated on the streets under its jurisdiction are necessary; and WHEREAS, the State of California has recognized transportation as the single largest source of global warming emissions and air pollution in the State; and WHEREAS, the Sate established legislation that will require all new vehicles sold in the State to be zero-emission by 2035; and
WHEREAS, the City Council recognizes gas vehicles as having a harmful effect on Island-life contributing to noise and emission issues; and WHEREAS, the City Council desires to begin to take a measured approach to ensure future compliance with the State's goals to increase the number of zero-emission vehicles in use; and
WHEREAS, the City Council wishes to require all new commercial autoettes to be electric by January 1, 2024; and
WHEREAS, the City wishes to now amend its Municipal Code.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON DOES ORDAIN AS FOLLOWS:
Section 1. The recitals set forth above are hereby adopted as the findings of the City Council in connection with the adoption of this Ordinance.
Section 2. Avalon Municipal Code section 4-4.1703 (c) is amended to read as follows (new language is underlined, removed language is struck):
4-4.1703 Types of Vehicle Permits
(c) Commercial Autoette Permits. One commercial autoette permit may be granted to any person, organization, partnership, trust or corporation for use in connection with a commercial enterprise located within the City limits or within three miles of the City limits, without being subject to a waiting period, as follows:
(1) The following findings must be made in an affirmative manner:
a. The commercial autoette for which a permit is requested is necessary to the proper functioning of the commercial enterprise.
b. The commercial enterprise has no other vehicles, autoette or other source of transportation that can reasonably satisfy its transportation requirements, including resident vehicles and autoettes. c. That the autoette measures no more than 130 inches in length, including the front and rear bumpers.
d. The commercial enterprise is a significant source of income to the applicant and not a side business or hobby, or the Hearing Officer determines that shared use of the autoette by two or more businesses owned by the permittee is consistent with the purposes and goals of this chapter, or the autoette is to be used on a full-time basis or an exclusive basis for a business venture or ventures by the permittee. e. Effective January 1, 2024 all new commercial autoettes must be certified electric vehicles.
(2) An applicant for a commercial autoette permit shall hold a City of Avalon Business License at all times the permit is in effect.
(3) A commercial autoette permit shall be valid for a period of one year only and at the expiration of said period a new commercial autoette permit may be issued only on timely application therefor and after all of the findings set forth in subsection (c)(1) and (2) are made.
(4) The Hearing Officer or City Council may add conditions to the permit to assure that the applicant complies with the purposes and intent of this article and the regulations adopted pursuant thereto.
(5) Commercial autoettes permitted under this subsection (c) shall be provided by the permittee with overnight off-street parking and shall not be parked on any public street or right-of-way between the hours of 12:00 a.m. and 6:00 a.m. p.m. (6) Noncommercial institutional uses or entities may be issued a commercial autoette permit pursuant to the provisions of this paragraph but need not hold a City business license.
Section 5. Severability. If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, such decisions shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional.
Section 6. CEQA Exemption. The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15358 (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Moreover, the City Council finds that this Ordinance is also exempt under CEQA pursuant to Guidelines Section 15061(b)(3) (there exists no possibility that the activity will have a significant adverse effect on the environment) because this Ordinance will not cause a change in any of the physical conditions within the area affected by the Ordinance.
Section 7. Certification. The City Clerk of the City of Avalon shall certify the passage and adoption of this Ordinance and shall cause the same, or a summary thereof, to be published and/or posted in the manner required by law.
Section 8. Effective Date. This Ordinance shall become effective on July 1, 2023.
INTRODUCED at a regular meeting of the City Council of the City of Avalon on the 18'h day of April, 2023, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Avalon on this day of , 2023, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Ann H. Marshall, Mayor
ATTEST:
Gabrielle Morones, Deputy City Clerk
APPROVED AS TO FORM:
Scott Campbell
Best Best & Krieger, LLP
RESOLUTION NO. _
AN RESOLUTION OF THE CITY OF AVALON
ESTABLISHING INCENTIVES TO VOLUNTARY
ELECTRIFICATION OF COMMERCIAL AUTOETTES IN
ADVANCE OF JANUARY 1, 2024
WHEREAS, The Council has determined that there are special problems existing in the City relating to the size and nature of the streets and the characteristics and nature of the City itself, and,
WHEREAS, In view of these special problems, the Council hereby determines that special rules regulating the size, number, noise, speed, and classes of vehicles used, permitted, or operated on the streets under its jurisdiction are necessary; and WHEREAS, the State of California has recognized transportation as the single largest source of global warming emissions and air pollution in the State; and WHEREAS, the Sate established legislation that will require all new vehicles sold in the State to be zero-emission by 2035; and
WHEREAS, the City Council recognizes gas vehicles as having a harmful effect on Island-life contributing to noise and emission issues; and WHEREAS, the City Council desires to begin to take a measured approach to ensure future compliance with the State's goals to increase the number of zero-emission vehicles in use; and
WHEREAS, during the April 18, 2023 regular City Council Meeting, the City Council introduced and waived all further readings of an ordinance requiring all new commercial autoettes to be electric by January 1, 2024; and WHEREAS, the City Council wishes to incentivize early compliance with the ordinance by waiving vehicle hearing and city registration fees.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON DOES RESOLVE AS FOLLOWS:
1. All existing or new commercial autoettes that are replaced with certified electric oratig and city shine registration es, as established or til me ella is fee schedule, waived for a period of three years.
PASSED, APPROVED AND ADOPTED on the 18'h day of April, 2023, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Ann H. Marshall, Mayor
ATTEST:
Gabrielle Morones, Deputy City Clerk