TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
DATE: JUNE 24, 2025
SUBJECT: AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH OCEAN BLUE ENVIRONMENTAL SERVICES, INC.
EXECUTIVE SUMMARY
The City Council will consider approving an amendment to the professional services agreement with Ocean Blue Environmental Services, Inc. The amendment is needed to increase the total compensation of the original agreement to accommodate the increasing need for encampment clean-up services, as they have become more prevalent throughout the City and region over the last few years.
RECOMMENDATION
That the City Council:
Approve the Amendment No 1. with Ocean Blue Environmental Services, Inc. in the amount of $666,097 for FY 2024-2025 for hazardous waste removal and mitigation services;
2. Authorize the Mayor to execute Amendment No. 1 in a form approved by the City Attorney.
On March 28, 2023, the City Council approved a professional services agreement with Ocean Blue Environmental Services, Inc. in the amount of $160,000 for hazardous materials management, spill response, mitigation, abatement, and disposal, as well as encampment clean-ups. Ocean Blue Environmental, Inc. is a State -licensed hazardous waste removal and transportation firm who can provide the City with a 24-hour, year- round response to all emergency hazardous material spills occurring in the City. Ocean Blue has extensive experience in spill response and currently services Los Angeles County Public Works, US Coast Guard, Environmental Protection Agency (EPA), California Fish and Wildlife and numerous Fire Department Hazardous Material Response Teams.
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH OCEAN BLUE ENVIRONMENTAL SERVICES, INC.
PAGE 2
The City piggybacked off the existing hazardous material response contract executed between Ocean Blue and the City of Vernon that covers a term of 3 years. Cost for services are based on proposed rates received by the City of Vernon's Request for Proposal published on July 26, 2022. Numerous other cities, such as Inglewood, Redondo Beach, and Pico Rivera have also utilized similar contracts for Ocean Blue's hazardous waste response services. The contract with Ocean Blue is used for 24-hour on-call/service response based on emergencies and situational need.
The combined effort of the City of Downey Public Works Maintenance/Utilities Divisions and the Fire Department are routinely tasked to abate the abandonment of various chemical products discarded into the public right-of-way; whereas, the Fire Department is assigned to emergency response for active releases of hazardous materials into the environment, specifically spills onto the City roadways, municipal separate storm sewer systems (MS4), and storm drain system. Over the course of a calendar year, these City Departments respond to dozens of calls for mitigation, abatement, and disposal of materials in the public right of way.
ANALYSIS
Over the last several years, encampments have become a larger concern throughout the region. The frequency and size of encampments within the City has increased dramatically over the last few years. As a result, Ocean Blue Environmental services have been deployed to address encampment clean-ups, which typically contain biohazardous waste. Ocean Blue Environmental Services staff is properly trained and licensed to handle these materials.
The City will need to amend the contract compensation continue to provide encampment clean-ups at the current level of service. The contract with Ocean Blue Environmental Services, Inc. will need to be amended to a total of $666,097 in Fiscal Year 2024-2025 and up to a budgeted amount of $650,000 for the Fiscal Year 2025-2026.
CITY COUNCIL PRIORITIES
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
Approval of the recommended action will result in an additional expenditure of up to $506,097 during FY 2024-2025 for a total expenditure of $666,097.
The City's adjusted Fiscal Year 2024-2025 operating budget includes adequate funds under the account numbers below to cover the environmental services expenses under Amendment No. 1 for FY 2024-2025.
Account No. Funding Source I Amount
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH OCEAN BLUE ENVIRONMENTAL SERVICES, INC.
PAGE 3
10-4-3110-0665
Maintenance and Facilities
$628,597
65-4-3121-0360
Civic Center Maintenance
$37,500
Total Funding:
$666,097
ATTACHMENTS
Attachment A: Amendment No. 1 to the Professional Services Agreement with Ocean Blue Environmental Services, Inc.
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES
AGREEMENT WITH OCEAN BLUE ENVIRONMENTAL
SERVICES, INC. FOR ON -CALL EMERGENCY HAZARDOUS
MATERIAL REMOVAL SERVICES
THIS AMENDMENT No. 1 ("Amendment") is entered into this 1st day of June, 2025, by and between the City of Downey, a California municipal corporation and charter city ("City') with its principal place of business at 11111 Brookshire Avenue, Downey, CA 90241 and Ocean Blue Environmental Services, a California corporation, with its principal place of business at 925 West Esther Street, Long Beach, CA 90813 ("Contractor"). City and Contractor are sometimes individually referred to as the "Party' and collectively as the "Parties".
WHEREAS, City and Contractor entered into a Professional Services Agreement ("Agreement") on February 14, 2023 for on -call emergency hazardous material removal services; and
WHEREAS, the parties desire to make certain amendments to the Agreement as set forth herein; and
WHEREAS, the Parties intend to be bound by the terms and provisions of the Agreement as it is amended herein.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, the Parties agree as follows:
Section 1. AMENDMENTS.
A. City and Contractor hereby amend Section 3.1.2 ("Term"), of the Agreement to read as follows:
3.1.2 Term. The term of this Agreement shall be from February 14, 2023 to June 30, 2026, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The City Manager is authorized to extend this Agreement for two 1-year terms.
B. City and Contractor hereby amend Section 3.3 ("Fees and Payments") Subsection 3.3.1 to read as follows:
"3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates Contractor provided to Los Angeles County under Contract No. 003149 which rates are set forth in Attachment 2 attached hereto and incorporated herein by reference. The total compensation for the period July 1, 2024 through June 30, 2025 shall not exceed Six Hundred Sixty -Six Thousand Ninety -Seven and 001100 Dollars ($666,097.00) without written approval of the City.
The total compensation for the period July 1, 2025 through June 30, 2026 shall not exceed Six Hundred Fifty Thousand and 00/100 Dollars ($650,000.00) without written approval of the City.
Extra Work may be authorized, as described below, and if authorized, said Extra Work will be compensated at the rates and manner set forth in this Agreement." Section 2. The rights, obligations and fees of the Parties under the Agreement shall not otherwise be amended, altered or revised except as expressly provided for herein and all
other terms of the Agreement shall remain in full force and effect.
Section 3. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.
TO EFFECTUATE THIS AMENDMENT, the Parties have caused their duly authorized representatives to execute this Amendment on the dates set forth below.
CITY OF DOWNEY,
a California municipal corporation
and charter City
Dorothy Pemberton, Mayor Pro Tem
Date:
ATTEST:
Maria Alicia Duarte, CMC, City Clerk
APPROVED AS TO FORM:
By: — vx."' �� Tl�x
JohiVM. Funk, City Attorney
OCEAN BLUE ENVIRONMENTAL
SERVICES, INC.
a California Corporation
ee, President
Date: (0 1 '
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