HomeMy WebLinkAboutHuntington Beach Downtown Business Improvement District - HBDBID - 2009-06-15Council/Agency Meeting Held: o "
Deferred/Continued to:
*Ap rov d ❑ Conditionally Approved ❑ Denied
City e rk'9,0ignature
Council Meeting Date: 6/15/2009
Department ID Number: ED 09-18
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Co n it Members
SUBMITTED BY: Fred A. Wilson, City Admini r
PREPARED BY: Bob Hall, Deputy City Admin strator
Stanley Smalewitz, Director of Economic Development J
Travis K. Hopkins, PE, Director of Public . o s
SUBJECT: Downtown Maintenance Agreement
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The City of Huntington Beach and the Huntington Beach Downtown
Business Improvement District (HBDBID) propose to enter into an agreement delegating
authority to the HBDBID to manage a cleaning and maintenance pilot program in the
downtown.
Funding Source: Public Works account number 10085602.67450, funds currently budgeted
in the general fund for landscape and maintenance.
Recommended Action: Motion to:
1) Approve the Memorandum of Understanding between the City of Huntington Beach and
the Huntington Beach Downtown Business Improvement District (HBDBID) for a one (1)
year pilot program, with an option to renew not to exceed three (3) years.
2) Authorize a payment not to exceed $40,500, to be transferred to the HBDBID to manage
a cleaning and maintenance pilot program in the downtown.
Alternative Action(s):
1) Do not approve the Memorandum of Understanding between the City of Huntington
Beach and the Huntington Beach Downtown Business Improvement District (HBDBID) for
a one (1) year pilot program to manage a cleaning and maintenance pilot program in the
downtown.
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 6/15/2009 DEPARTMENT ID NUMBER: ED 09-18
Analysis: On January 24, 2009 the Downtown Economic Development Committee
reviewed a downtown cleaning maintenance concept and recommended staff develop an
agreement for City Council approval.
Historically, cleanliness and maintenance in the downtown area has been a major issue for
downtown businesses and residents. To address this issue, the city has increased funds by
810% since 2003. However, even with the elevated funds, current cleaning efforts are not
meeting the needs of the area as reported by downtown businesses. The problems increase
during the peak season due to the high foot traffic.
City staff has met with several property owners and HBDBID members to consider a
business model used in other Business Improvement Districts. Staff and the HBDBID
explored various options and obtained estimates for maintenance service in the downtown
area. The proposed model allows the HBDBID to align resources and responsibilities, and
provide increased services. The HBDBID can better manage the maintenance due to their
proximity, enhancing or adjusting services as needed.
The HBDBID has worked closely with City staff to develop an expanded scope of work and
determine the boundary which has been approved by the HBDBID (Attachment No. 2). A
major change will be the addition of dayporters on the first three blocks of Main Street from
Pacific Coast Highway to Orange Avenue where the highest volume of foot traffic exists.
Dayporters can address immediate spills or issues which in the current scope of work may
not be addressed until weekly sidewalk steam cleaning is conducted. It is anticipated that
the dayporters will eliminate some of the immediate issues.
The proposed Memorandum of Understanding (MOU) will allow the HBDBID to contract with
a vendor to provide the requested services. Estimated costs and terms were collected from
potential vendors. The terms of the MOU automatically renew on an annual basis and not to
exceed three years. Should the HBDBID choose not to renew the MOU for an additional
term, a written notice shall be provided to the city at least ninety days prior to the expiration
of the term. The HBDBID and the city will work closely together throughout the entire
process and conduct regularly scheduled inspections to ensure work is completed. At any
point, the HBDBID or the city may terminate the MOU by providing a 30-day written notice to
the other party.
The scope of work includes, but is not limited to:
• Cleaning of sidewalks and gutters
• Scrubbing of sidewalks with scrubber or high pressure/low volume washer with
recapture unit process known as zero discharge (regulated state and federal
guidelines - Title 22)
• Remove gum from surfaces
• Clean trash can lids as needed
• Address minor graffiti issues in conjunction with the city
• Conduct inspections of maintenance work
-2- 6/1/2009 2:44 PM
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 6/15/2009 DEPARTMENT ID NUMBER: ED 09-18
Should City Council approve the MOU, the HBDBID will conduct a public procurement
process as per the Huntington Beach Municipal Code. The recommendation provided by the
HBDBID shall be reviewed by city staff for final approval. In conjunction with city staff, the
HBDBID will conduct regular inspections of the work performed to ensure the terms of the
agreement are met.
Strategic Plan Goal:
C-2 Provide quality public services with the highest professional standards to meet
community expectations and needs, assuring that the city staff is sufficiently staffed and
equipped overall.
Environmental Status: N/A
Attachment(s):
-3- 6/1 /2009 2:22 PM
ATTACHMENT #1
1 '' • f � 'i, ih i=
This Memorandum of Understanding (the "MOU") is entered into by and between the
City of Huntington Beach (hereinafter "the City"), a California municipal corporation, and the
Huntington Beach Downtown Business Improvement District (hereinafter "HBDBID"), a
California non-profit corporation, for the cleaning of the sidewalks, plazas and paseos on
Main Street within the HBDBID boundaries. This is a first -year pilot program, a partnership
between the City and the HBDBID for a one-year trial period.
RECITALS
VaffiREAS, the City and HBDBID have a common interest of providing and
enhancing tourist experiences in the downtown along with increased maintenance, cleanliness
and preservation of Main Street; and
The City has expended significant resources toward the improvement of the sidewalks
and general appearance of the City's downtown areas, including the Main Street area, through
the installation of sidewalks, street lighting, aesthetic improvements and displays; and
The City and the HBDBID have a common interest in protecting, promoting and
maintaining the downtown as a healthy and growing area for commerce and an attractive and
safe place for public enjoyment; and
The HBDBID has expertise and opportunity to provide maintenance management that
is necessary to keep the City's Main Street area of the BID attractive, clean and safe, and the
HBDBID is willing to enter into an agreement with the City to carry out those objectives; and
The City has identified processes necessary to satisfy its contracting requirements
when employing maintenance management contractors, including, pursuant to Charter section
612, it will not require the payment of prevailing wages for street and sidewalk cleaning
services; and
The City and the HBDBID have met to discuss maintenance standards within the
downtown area of Huntington Beach, specifically portions of Main Street described herein
and identified ways to accomplish their mutual objectives of providing enhanced cleaning and
information in the downtown area. As a result, the parties have committed to work toward the
achievement of those mutual objectives.
NOW THEREFORE, based on the foregoing Recitals, 'the City and the HBDBID
agree as follows:
08-1949.001/34246
RESPONSIBILITIES OF THE HBDBID
The HBDBID shall, in general, provide, either directly or indirectly (i.e. via an
agreement with a duly -qualified contractor or contractors) for the enhanced maintenance of
certain downtown areas as well as "day porter" services.
Specific maintenance services to be provided include, but are not limited to:
GEOGRAPHIC AREA
• Main Street from Pacific Coast Highway (PCH) to Pecan Avenue
(Excluding the third block on the west side of Main Street)
• Walnut Avenue between 3rd Street and 5th Street
• Olive Avenue between 3rd Street and 5th Street
(Excluding the third block on the west side of Main Street)
• Orange Avenue between 3rd and 5th Street
(Excluding the third block on the west side of Main Street)
• Main Street from North of Orange Avenue and Pecan Street
See map (attached hereto as Exhibit A and incorporated hereby by reference).
Maintain as needed:
® The Public Right of Ways on PCH between the El Don Liquor building and
Oceanview Promenade
• The Public Right of Way between Oceanview Promenade and Perq's
• The Z-Park Area
• The alley between the second block west of Main Street and 5th Street
• The alley between the third block east of Main Street and 3rd Street
DAY PORTERS FOR MAIN STREET (PCH TO ORANGE AVENUE)
• Communication either by radio or cell phone with BID designee
• Must be able to respond to immediate cleaning issues
• Day porter must be easily identified by the public with bright shirt color and surf
emblem name tag
• Day porter should be aware of all ground floor retail/store/service locations
• Coordinate hours with the Huntington Beach Downtown Business Improvement
District (HBDBID). May require change of shift hours or, in some cases, extended
hours.
• Ensure that areas identified herein are cleaned by close of any events.
• Clearing of debris and clutter from sidewalks and gutters
• Clean all debris by tree wells, planters
• Monitor exterior of City -owned cigarette ash receptacles
• Clean the top lids of trash receptacles
08-1949.001/34246 2
AS REQUIRED
® Cleaning of sidewalks and gutters
• Clean out exterior of trash can receptacles
* Scrubbing of sidewalks with scrubber or high pressure/low volume washer with
recapture unit process known as zero discharge (regulated state and federal
guidelines - Title 22)
• Remove gum from surfaces
® Clean trash can lids as needed
® Address minor graffiti issues (stickers on trash, signs, etc., and report major
graffiti issues to the City, in conjunction with City staff)
® Conduct inspections of maintenance work
Schedules and other details regarding the above mentioned tasks shall be determined by the
HBDBID and contractor and set forth in a writing that must be approved by the Director of
Public Works or his/her designee.
2. RESPONSIBILITIES OF THE CITY
Under this MOU, the City:
A. Will provide an employee from the Public Works Department to assist the
HBDBID with questions that may arise from time to time.
B. Will conduct informal inspections on a weekly basis to determine whether the
tasks contemplated in this MOU are being accomplished.
C. Will conduct a formal inspection with a HBDBID representative on a monthly
basis.
D. Will review maintenance invoices from the HBDBID and the selected vendor
on a monthly basis.
3. DISBURSEMENT OF FUNDING
At the sole discretion of the City, One Hundred Sixty -Two Thousand Dollars
($162,000) in Fiscal Year 2008/2009 (pro rated to the effective date of this MOU) may be
appropriated to fund this pilot program. A portion of the funding (if any) shall be available to
the HBDBID on a monthly basis. The HBDBID may request reimbursement as follows:
A. The first month the City may provide approximately three months payment in
the amount of Forty Thousand Five -Hundred ($40,500.00) upon execution of
this MOU, which includes cost of maintenance and administrative fees. After
the first month, the HBDBID may submit a reimbursement request for costs
incurred by the HBDBID for performing services hereunder. Such
reimbursement requests shall be in a form acceptable to the City, and include
08-1949.001/34246
substantiation for amounts requested, including copies of invoices and other
documentation as may be required by the City.
B. The fee for administration of this MOU shall not exceed 15% (fifteen percent)
of the total contract amount in any given year. In the event the contract
amount (One Hundred Sixty Two Thousand Dollars ($162,000) increases
beyond the two percent in any given year, the City may at its sole discretion
either limit the administrative fee to a two -percent increase above the original
contract amount of One Hundred Sixty -Two Thousand Dollars ($162,000)
(compounded from any additional increase) or provide ten percent of One
Hundred Sixty Two Thousand Dollars ($162,000) for that year.
C. Upon receipt of such a reimbursement request, the City shall review the
request, and upon approval, which may be withheld at the sole discretion of the
City, issue reimbursement to the HBDBID within thirty (30) days after receipt
of the request.
D. The HBDBID must create a new bank account to deposit funds contemplated
herein that is separate from other funds. The account number shall also be
provided to the City in order to deposit monies electronically.
E. If the City, at its sole discretion, decides that the reimbursement request is
without merit (in whole or in part), then, within fifteen (15) days after receipt
of the reimbursement request, the City will notify the HBDBID in writing the
reason for the denial together with any partial payment if applicable.
F. In no case shall the total amount reimbursed to the HBDBID for the services
performed hereunder during any fiscal year exceed the amount appropriated
for these purposes by the City Council.
G. In the event the City denies a reimbursement request in whole or in part, the
HBDBID shall be responsible for any and all cost incurred by third -party
contractor(s) or subcontractor(s) in performing services contemplated herein.
In future fiscal years, City may consider funding for the services contemplated under
this MOU. However, appropriation of such funding, in whole or in part, is at the sole
discretion of the City. In the event City decides not to fund the program, this MOU will
terminate with no further obligations including payment by the City (as provided in Section
8). To assure that the City is not obligated to contractors or subcontractors of the HBDBID,
any agreements entered into between the HBDBID and contractors shall include a clause that
requires termination of the agreement between HBDBID and any contractor or subcontractor
(if any) if the City ends this MOU (in addition to the indemnification, hold harmless and
insurance requirements).
08-1949.001/34246 4
4. INDEMNIFICATION DEFENSE HOLD HARMLESS
HBDBID hereby agrees to protect, defend, indemnify and hold harmless City, its
officers, elected or appointed officials, employees, agents, and volunteers from and against
any and all, claims, damages, losses, expenses, judgments, demands defense costs, and
incidental or consequential damage or liability of any kind or nature, however caused,
including third -party contract liability or those resulting from death or injury to HBDBID's
employees and damage to HBDBID's property, arising directly or indirectly out of the
obligations or operations herein undertaken by HBDBID, caused in whole or in part by any
negligent act or omission of the HBDBID, any subcontractors, anyone directly or indirectly
employed by any of them or anyone for whose acts any of them may be liable, including but
not limited to concurrent active or passive negligence, except where caused by the active
negligence, sole negligence, or willful misconduct of the City. HBDBID will conduct all
defense at its sole cost and expense and City shall approve selection of HBDBID's counsel.
This indemnity shall apply to all claims and liability regardless of whether any insurance
policies are applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by HBDBID.
5. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY
INSURANCE
Pursuant to California Labor Code Section 1861, HBDBID acknowledges awareness
of Section 3700 et seq. of this Code, which requires every employer to be insured against
liability for workers' compensation; HBDBID covenants that it will comply with such
provisions prior to commencing performance of the work hereunder.
HBDBID shall require all subcontractors to provide such workers' compensation and
employer's liability insurance for all of the subcontractors' employees. HBDBID shall furnish
to City a certificate of waiver of subrogation under the terms of the workers' compensation
and employer's liability insurance and HBDBID shall similarly require all subcontractors to
waive subrogation.
6. INSURANCE
In addition to the workers' compensation and employer's liability insurance and
HBDBID's covenant to defend, hold harmless and indemnify City, HBDBID shall obtain and
furnish to City, a policy of general public liability insurance, . including motor vehicle
coverage covering the Project/Service. This policy shall indemnify HBDBID, its officers,
employees and agents while acting within the scope of their duties, against any and all claims
arising out or in connection with the Project/Service, and shall provide coverage in not less
than the following amount: combined single limit bodily injury and property damage,
including products/completed operations liability and blanket contractual liability, of One
Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which
includes a designated general aggregate limit, the aggregate limit must be no less than One
Million Dollars ($1,000,000) for this Project/Service. This policy shall name City, its
officers, elected or appointed officials, employees, agents, and volunteers as Additional
08-1949.001/34246
Insureds, and shall specifically provide that any other insurance coverage which may be
applicable to the Project/Service shall be deemed excess coverage and that HBDBID's
insurance shall be primary.
Under no circumstances shall said above -mentioned insurance contain a self -insured
retention without the express written consent of CITY; however an insurance policy
"deductible" of $5,000.00 is permitted.
7. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED
ENDORSEMENTS
Prior to commencing performance of the work hereunder, HBDBID shall furnish to
City certificates of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverages as required by this MOU; the certificates shall:
a. provide the name and policy number of each carrier and policy;
b. state that the policy is currently in force; and
c. promise to provide that such policies will not be canceled or modified without
thirty (30) days' prior written notice of City.
HBDBID shall maintain the foregoing insurance coverages in force until the work
under this MOU is fully completed and accepted by City.
The requirement for carrying the foregoing insurance coverages shall not derogate
from the HBDBID's defense, hold harmless and indemnification obligations as set forth under
this MOU. City or its representative shall at all times have the right to demand the original or
a copy of all the policies of insurance. HBDBID shall pay, in a prompt and timely manner,
the premiums on all insurance hereinabove required.
HBDBID shall provide a separate copy of the additional insured endorsement to each
of HBDBID's insurance policies, naming City, its officers, elected and appointed officials,
employees, agents and volunteers as Additional Insureds, to the City Attorney for approval
prior to any payment hereunder.
8. TERMINATION AND RENEWAL
HBDBID, upon the default hereunder by the City, may terminate this MOU by
providing at least thirty -days' (30-days') written notice to the City. Services provided
hereunder shall continue until the date of termination. Reimbursement for said services may
be requested by the HBDBID up to ninety (90) days after the date of termination. Any and all
reimbursement requests not received by that date shall not be reimbursed and neither party
shall have any further obligation hereunder.
City may terminate this MOU with or with out cause at its sole discretion and at any
time by providing at least thirty (30) days' written notice to the HBDBID.
08-1949.001/34246 6
In the event either party terminates this agreement, the HBDBID shall be responsible
for any and all incurred costs remaining to contractors or subcontractors entered into to
further this MOU. In addition, the HBDBID will immediately return any unused funds
disbursed by the City in furtherance of this MOU.
In the event of termination, the HBDBID will no longer be responsible for the
downtown maintenance contemplated in this agreement.
The original term of this MOU shall be one year, commencing on" /IUA)6- /S,
unless terminated as provided herein. Should HBDBID and City fully and faithfully perform
all the terms and conditions of this MOU for the full original term the MOU shall
automatically renew on an annual basis for a period not to exceed three years from the
effective date of this MOU, unless earlier terminated as provided herein. Should the
HBDBID choose not to renew this MOU for an additional annual term, written notice shall be
provided to the City at least ninety (90) days prior to the expiration of the term (not
withstanding either parties' ability to terminate the agreement as provided above).
9. DEFAULT AND CURE
Should either party allege default by the other party of its obligations hereunder, then
the alleging party shall provide a written notice ("Notice of Default") to the other party
("Defaulting Party") including a description of the default and recommended actions to cure
said default. The Defaulting Party shall, in good faith, attempt to cure the default within 15
days of receipt of the Notice of Default_
Failure to cure the default to the reasonable satisfaction of the other party shall be
cause for termination of this MOU under Section E hereof.
10. INTENT
The City and the HBDBID are committed to actively pursuing the items specified
within this MOU toward the increased vitality of the Downtown area of Huntington Beach.
The parties agree the general terms of services set forth in this MOU form the basis for the
specific maintenance services required and which shall be developed by the City, HBDBID,
and the contractor employed to perform specific maintenance services.
08-1949.001l34246 7
11. EFFECTIVE DATE
The effective date of this MOU shall be the date it is signed on behalf of the City and
Agency.
IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed by
and through their authorized officers on E /� 72009.
HUNTINGTON BEACH DOWNTOWN
BUSINESS IMPROVEMENT DISTRICT
By:�/_
print name
ITS: (circle one) Chairman/PresidentNice President
AND
ITS: (circle
Officer/Asst.
Financial
REVIEWED PROVED:
Ci d inistrator
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
Califorri
Mayor
j.
.I,
l'lerk kilo (Coe)
Jf
INITIATED AND AP RO D
Director of Economic De ment
APPROVED AS TO FORM:
City Attorney
Exhibits:
A. Map of the Downtown Business Improvement District
08-1949.001/34246 8
U,
scan Ave.
Legend
_
Z park
0
Sidewalk and street
boundaries/Sidewalk
Steaming
Alley
_
10 ft' Public Right of Way
ATTACHMENT #2
scan Ave.
Legend
_ Z park
Sidewalk and street
boundaries/Sidewalk
Steaming
Alley
_ 10 ft' Public Right of Way
I:Z_Z
INITIATING DEPARTMENT:
Economic Development and Public Works
SUBJECT:
Downtown Maintenance Agreement
COUNCIL MEETING DATE:
June 15, 2009
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits &legislative draft if applicable)
Attached
❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Tract Map, Location Map and/or other Exhibits
Attached
Not Applicable
❑
Contract/Agreement (w/exhibits if applicable)
Attached
(Signed in full by the City Attorney)
Not Applicable
❑
Subleases, Third Party Agreements, etc.
Attached
❑
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000)
Attached
❑
Not Applicable
Bonds (If applicable)
Attached
❑
Not Applicable
Staff Report (If applicable)
Attached
❑
Not Applicable
Commission, Board or Committee Report (If applicable)
Attached
❑
Not Applicable
Findings/Conditions for Approval and/or Denial
Attached
❑
Not Applicable
�EXPLANATION"FORMISS-ING-ATTACHM:ENTS
REVIEWED
RETURNED
FOR RDED
Administrative Staff
Deputy City Administrator (Initial)
City Administrator (Initial)
( )
)
City Clerk
( )
7EX&LANATION•- RETURN OF
(Below, Space For. City, Clerk's Use Only)
RCA Author: Punongbayan X5183
City ®f Huntington Beach
2000 Main Street ® Huntington Beach, CA 92648
OFFICE OF THE CITY CLERIC
JOAN L. FLYNN
CITY CLERK
June 17, 2009
Huntington Beach Downtown Business Improvement District (HBDBID)
Attn: Bill Cuppy, Vice -President
412 Olive Avenue
PO Box 149
Huntington Beach, CA 92648
Dear Mr. Cuppy:
Enclosed for your records a copy of the Memorandum of Understanding between the City
of Huntington Beach and the Huntington Beach Downtown Business Improvement District
for the cleaning of the sidewalks, plazas and paseos on Main Street within the HBDBID
boundaries.
Sincerely,
JF:pe
Enclosure
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