February 24, 2026
Agenda Item No.5
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Jeff Boyles, Fire Chief - 949-644-3101, [email protected] PREPARED BY:
Lili Banuelos, Assistant Management Analyst - 949-644-3360, [email protected] Kyle Brodowski, Fleet and Facilities Superintendent - 949-718-3464, [email protected] TITLE:
Amendment No. One to On-Call Maintenance/Repair Services Agreement with South Coast Shipyard, Inc. for Rescue Boat Haul Out Services ABSTRACT:
The City of Newport Beach owns a fleet of three lifeguard rescue vessels (rescue boats) that are used to conduct marine rescue and patrol operations. Maintenance of the rescue boats is overseen by the Newport Beach Fire Department’s Lifeguard Division and the Municipal Operations Department’s Fleet Division. The City’s current contractor for rescue boat on-call haul out and maintenance services, South Coast Shipyard, Inc., was previously selected via a competitive bid process. Staff is requesting City Council approval to extend the term and increase the not-to-exceed amount of the agreement by an additional $150,000 for a new contract not-to-exceed amount of $270,000 RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to On-Call Maintenance/Repair Services Agreement with South Coast Shipyard, Inc. for Rescue Boat Haul Out Services (Contract No. 9428-1) to extend the term to June 30, 2028, and to increase the contract amount by $150,000, for a total not-to-exceed amount of $270,000, and authorize the Mayor and City Clerk to execute the Amendment.
DISCUSSION:
The Newport Beach Fire Department, through its Lifeguard Operations Division, operates three 29.5-foot, solid fiberglass hulled, twin-engine rescue boats manufactured by the Crystaliner Corporation. These boats are used to conduct marine rescue and patrol operations along the City’s coastline, and are crucial resources in incidents involving missing swimmers, vessels in distress, mass rescues, recovery efforts, dive team operations, and any other incident requiring a swift response in the ocean environment.
Large emergency boats have an expected replacement of 25 years per City Council Policy F-9. The existing hull design has proven to be incredibly durable; consistent maintenance and haul-out services, combined with engine maintenance performed by Municipal Operations Department mechanics, have extended the boats’ lifespans. Haul out services require that the vessel be removed from water to undergo various safety checks, including, but not limited to: examination of the vessel’s bottom paint and hull condition, a review of the rudder, driveshaft and various seals, cleaning/polishing of props, shafts, and anode studs, and removal and re-sealing of the deck. Any issues found are corrected via repair or replacement. Historically, haul out services and related repairs have been provided through local shipyards.
On March 13, 2023, a Request for Proposals (RFP) No. 23-60 for Rescue Boat Haul Out Services was posted to the City’s electronic bidding portal; approximately 118 vendors were automatically notified of the RFP. Four prospective bidders reviewed and/or downloaded the bid documents, and two vendors submitted responses. Only one bidder, South Coast Shipyard, Inc. (South Coast Shipyard) was deemed responsive, as the other bidder failed to include a complete response file. Following review of the responsive bid, South Coast Shipyard was awarded a three-year on-call maintenance agreement for a not-to-exceed amount of $120,000.
South Coast Shipyard continues to provide quality work, and staff remains satisfied with the contractor’s performance. Additionally, following a recent competitive bid process (Request for Bid No. 26-06), South Coast Shipyard was also awarded a contract to completely refurbish and repower one of the City’s rescue boats and install new engines in the other two rescue boats.
The current on-call agreement is set to expire on June 30, 2026, and is approximately 90% expended. In order to maintain current service levels and ensure continuity of service between the ongoing refurbishment and engine replacement projects with future haul out services, staff requests City Council approval of Amendment No. One to extend the term of the agreement to June 30, 2028, and increase the not-to-exceed amount of the agreement from $120,000 to $270,000 (an increase of $150,000). This increase will cover continued haul out services, on-call maintenance/unforeseen repairs, and possible engine work or modifications outside of the new engines’ manufacturer’s warranty. Additionally, the increase would accommodate rising parts and materials costs (wood, fiberglass, radio equipment, fuel tanks, etc.) from various suppliers. No changes to the labor rates are proposed, as the agreement already incorporates annual Consumer Price Index (CPI) adjustments.
FISCAL IMPACT:
Typical haul out services are approximately $5,000 per vessel and are done on an annual basis. As-needed repairs, replacements or modifications can include complete replacements of bilge pumps, engine removals and reinstallations, and large fiberglass hull repairs, and can cost upwards of $13,000 or more. The adopted budget includes sufficient funding for these services. It will be expensed to the Equipment Renovation account in the Municipal Operations Department, 7529032-911020.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Photos of Haul Out and Repair Services
Attachment B – Amendment No. One to On-Call MRSA with South Coast Shipyard, Inc.
Amendment No. One to On-Call Maintenance/Repair Services Agreement with South Coast Shipyard, Inc. for Rescue Boat Haul Out Services February 24, 2026
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