HomeMy WebLinkAboutECOSCRAP, INC - Professional Services Contract - scrap old city vehicles per South Coast Air Quality Management District (SCAQMD) Rule 2202 8/17/96 - 1996-08-19(q3A
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CounciflAgency Meeting Held:_5'1(a�R
Deferred/Continued to:
O/Ap roved ❑ Conditionally Approved I, Denied
City Clerk's(Signature
Council Meeting Date: August 19, 1996
Department ID Number: AD 96-17
CITY OF HUNTINGTON BEACH
REQUEST FOR ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL
SUBMITTED BY: MICHAEL T. UBERUAGA, CITY ADMINISTR
PREPARED BY: Tian R. Smith, Management Assistant
SUBJECT: Old Vehicle Scrapping Contract to comply with Rule 2202
Statement of Issue, Funding source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Should the City of Huntington Beach contract with Eco-Scrap, Inc.
to provide old vehicle scrapping services to satisfy the City's Rule 2202 compliance
obligations?
Funding Source: Air Quality Unappropriated Fund Balance
Recommended Action: Motion to:
1. Appropriate $46,725.00 from the Unappropriated Air Quality Fund Balance and place in
Account Number E AQ AD 107-390 to fund the Professional Services Contract between the
City of Huntington Beach and Eco-Scrap, Inc., and
2. Approve the Professional Services Contract between the City of Huntington Beach and
Eco-Scrap, Inc. and direct the City Clerk and Mayor to execute the contract.
Alternative Actions :
1. Do not appropriate funds from the Unappropriated Air Quality Fund Balance and provide
direction to staff.
2. Do not approve the Professional Services Contract between the City of Huntington Beach
and Eco-Scrap, Inc. and provide direction to staff.
E-6
• REQUEST FOR ACTION •
MEETING DATE: August 19, 1996
DEPARTMENT ID NUMBER: AD 96-17
Analysis: On December 8, 1996, the South Coast Air Quality Management District (District)
rescinded Rule 1501 and approved Rule 2202. Rule 1501 mandated that employers with
100 or more employees at its sites must provide a ride share program for its employees.
The City of Huntington Beach complied with Rule 1501, and its predecessor Regulation XV,
since 1989.
Rule 2202 requires these employers to attain annual prescribed emission reductions. The
Rule also provides several options as to how an employer may obtain emission reductions.
Staff reviewed these options and concluded that participating in an "Old Vehicle Scrapping"
program would be the most cost effective option to undertake.
Staff recommended to City Council that the City participate in an "Old Vehicle Scrapping"
program and that the City's employee ride share program be discontinued. The City Council
approved the "Old Vehicle Scrapping" program recommendation at its February 5, 1996
meeting. It also approved the discontinuance of the employee ride share program at its
March 18, 1996 meeting.
The City then went to bid to secure a vendor that will provide professional services to
perform "Old Vehicle Scrapping". Two vendors replied with sealed bids. Staff is
recommending that the City contract with the vendor providing the higher bid for reasons
outlined in the attached July 24, 1996 memo from Administration to the Purchasing
Manager. Essentially, the difference in bid prices is insignificant in relation to the cost
savings the City will realize by contracting with either vendor. However, the recommended
vendor used the District approved method of calculations to establish the City's emission
reduction obligation, the work needed to achieve those emissions and the associated fee.
Funds were not made available to comply with Rule 2202 during the development of the FY
1995-96 budget because the change in the law was unforeseen. Funds budgeted for the
employee ride share program can not be used to comply with Rule 2202 and are still needed
to satisfy the program's outstanding credit liability attributable to accrued credits held by its
participants.
Therefore, staff recommends that the City enter into the attached professional services
contract with Eco-Scrap, Inc. to achieve compliance with Rule 2202 through an "old vehicle
scrapping" program. Staff further recommends that $46,725 be transferred from the
Unappropriated Air Quality Fund Balance into Account Number E AQ AD 107-390 to fund
this expenditure.
Attachment(s):
1. Professional Services Contract between the City of Huntington Beach
and Eco-Scrap, Inc.
0020327.01 -2- 07/31/96 1:19 PM
0 REQUEST FOR ACTION •
MEETING DATE: August 19, 1996 DEPARTMENT ID NUMBER: AD 96-17
2.
3.
Fiscal Impact Statement
July 24, 1996 memo from Administration to Purchasing Manager
0020327.01 -3- 07/31/96 1:19 PM
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
ECOSCRAP, INC. FOR OLD VEHICLE SCRAPPING
Table of Contents
Section
Page
1
WORK STATEMENT. 1
2
CITY STAFF ASSISTANCE 2
3
TIME OF PERFORMANCE 2
4
COMPENSATION 2
5
EXTRA WORK 2
6
METHOD OF PAYMENT 2
7
DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS 4
8
INDEMNIFICATION, DEFENSE, HOLD HARMLESS 4
9
WORKERS' COMPENSATION 5
10
INSURANCE 5
11
CERTIFICATES OF INSURANCE 6
12
INDEPENDENT CONTRACTOR 7
13
TERMINATION OF AGREEMENT 7
14
ASSIGNMENT AND SUBCONTRACTING 7
15
CITY EMPLOYEES AND OFFICIALS 7
16
NOTICES 8
17
IMMIGRATION 8
18
LEGAL SERVICES SUBCONTRACTING PROHIBITED 8
19
ATTORNEY FEES 9
20
ENTIRETY 9
Wccoacrap/s: &'96
•
•
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
ECOSCRAP, INC. FOR OLD VEHICLE SCRAPPING
THIS AGREEMENT is made and entered into this lq. day of
(,[.cc.cr. 4z , 1996, by and between the CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of California, hereinafter referred to as "CITY," and ECO-
SCRAP, INC., a California corporation, hereinafter referred to as "CONTRACTOR."
WHEREAS, CITY desires to engage the services of a contractor to scrap 1981 and
older vehicles in accordance with the South Coast Air Quality Management District's Mobile
Source Emission Reduction, Rule 1610; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of
HBMC Chapter 3.03 relating to procurement of professional service contracts has been
complied with; and
CONTRACTOR has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows:
1. WORK STATEMENT
CONTRACTOR shall provide all services as described in the CONTRACTOR'S
Proposal dated July 3, 1996, (hereinafter referred to as Exhibit "A"), which is attached hereto
and incorporated into this Agreement by this reference. Said services shall sometimes
hereinafter be referred to as "PROJECT."
CONTRACTOR hereby designates Director of client services, who shall represent it
and be its sole contact and agent in all consultations with CITY during the performance of this
Agreement.
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2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONTRACTOR in the
performance of this Agreement.
3. TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of the CONTRACTOR
are to commence as soon as practicable after the execution of this Agreement and all tasks
specified in Exhibit "A" shall be completed no later than three (3) years from the date of this
Agreement. These times may be extended with the written permission of the CITY. The time
for performance of the tasks identified in Exhibit "A" are generally to be as shown in the Scope
of Services on the Work Program/Project Schedule. This schedule may be amended to
benefit the PROJECT if mutually agreed by the CITY and CONTRACTOR.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY
agrees to pay CONTRACTOR a fee not to exceed Forty -Six Thousand, Seven Hundred
Twenty Five Dollars ($46,725).
5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A", or
changes in the scope of services described in Exhibit "A", CONTRACTOR will undertake such
work after receiving written authorization from CITY. Additional compensation for such extra
work shall be allowed only if the prior written approval of CITY is obtained.
6. METHOD OF PAYMENT
A. CONTRACTOR shall be entitled to progress payments toward the fixed
fee set forth herein in accordance with the progress and payment schedules set forth in
Exhibit "B."
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B. Delivery of work project: A copy of every technical memo and report
prepared by CONTRACTOR shall be submitted to the CITY to demonstrate progress toward
completion of tasks. In the event CITY rejects or has comments on any such product, CITY
shall identify specific requirements for satisfactory completion. Any such project which has not
been formally accepted or rejected by CITY shall be deemed accepted.
C. The CONTRACTOR shall submit to the CITY an invoice for each
progress payment due. Such invoice shall:
1) Reference this Agreement;
2) Describe the services performed;
3) Show the total amount of the payment due;
4) Include a certification by a principal member of the
CONTRACTOR'S firm that the work has been performed in accordance with the provisions of
this Agreement; and
completed.
5) For all payments include an estimate of the percentage of work
Upon submission of any such invoice, if CITY is satisfied that
CONTRACTOR is making satisfactory progress toward completion of tasks in accordance with
this Agreement, CITY shall promptly approve the invoice, in which event payment shall be
made within thirty (30) days of receipt of the invoice by CITY. SUCH approval shall not be
unreasonably withheld. If the CITY does not approve an invoice, CITY shall notify
CONTRACTOR in writing of the reasons for non -approval, within seven (7) calendar days of
receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be
suspended until the parties agree that past performance by CONTRACTOR is in, or has been
brought into compliance, or until this Agreement is terminated as provided herein.
3AdEcwmpl818196
D. Any billings for extra work or additional services authorized by the CITY
shall be invoiced separately to the CITY. Such invoice shall contain all of the information
required above, and in addition shall list the hours expended and hourly rate charged for such
time. Such invoices shall be approved by CITY if the work performed is in accordance with the
extra work or additional services requested, and if CITY is satisfied that the statement of hours
worked and costs incurred is accurate. Such approval shall not be unreasonably withheld.
Any dispute between the parties concerning payment of such an invoice shall be treated as
separate and apart from the ongoing performance of the remainder of this Agreement.
7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS.
CONTRACTOR agrees that all materials prepared hereunder written or
electronic, including all calculations of credits, records required of SCAQMD licensed
scrappers and any records required by the SCAQMD for purposes of an audit, shall be turned
over to CITY upon termination of this Agreement or upon PROJECT completion, whichever
shall occur first. In the event this Agreement is terminated, said materials may be used by
CITY in the completion of PROJECT or as it otherwise sees fit. Title to said materials shall
pass to the CITY upon payment of fees determined to be earned by CONTRACTOR to the
point of termination or completion of the PROJECT, whichever is applicable. CONTRACTOR
shall be entitled to retain copies of all data prepared hereunder.
B. INDEMNIFICATION, DEFENSE, HOLD HARMLESS
CONTRACTOR shall indemnify and save and hold harmless CITY, its officers
and employees, from any and all liability, including any claim of liability and any and all losses
or costs arising out of the negligent performance of this Agreement by CONTRACTOR, its
officers or employees.
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CONTRACTOR shall comply with all of the provisions of the Workers'
Compensation Insurance and Safety Acts of the State of California, the applicable provisions
of the Califomia Labor Code and all amendments thereto; and all similar state or federal acts
or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all
claims, demands, payments, suits, actions, proceedings and judgments of every nature and
description, including attorneys' fees and costs presented, brought or recovered against CITY,
for or on account of any liability under any of said acts which may be incurred by reason of any
work to be performed by CONTRACTOR under this Agreement.
CONTRACTOR shall obtain and furnish evidence to CITY of maintenance of
statutory workers' compensation insurance and employers' liability in an amount of not less
than $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease,
policy limit.
10. INSURANCE
In addition to the workers compensation insurance and CONTRACTOR's
covenant to indemnify CITY, CONTRACTOR shall obtain and furnish to CITY, a policy of
general public liability insurance, including motor vehicle coverage covering the PROJECT.
Said policy shall indemnify CONTRACTOR, its officers, agents and employees, while acting
within the scope of their duties, against any and all claims of arising out of or in connection
with the PROJECT, 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 $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 $1,000,000. Said policy shall name CITY, its officers, and
5
3& Ecmcrap/8i8196
•
•
employees as Additional Insureds, and shall specifically provide that any other insurance
coverage which may be applicable to the PROJECT shall be deemed excess coverage and
that CONTRACTOR's insurance shall be primary.
Under no circumstances shall said abovementioned insurance contain a self -insured
retention, or a "deductible" or any other similar form of limitation on the required coverage.
11. CERTIFICATES OF INSURANCE
Prior to commencing performance of the work hereunder, CONTRACTOR shall
furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverages as required by this Agreement; said certificates shall:
provide the name and policy number of each carrier and policy;
2. shall state that the policy is currently in force;
3. shall promise to provide that such policies will not be canceled or modified
without thirty (30) days prior written notice of CITY; and
4. shall state as follows: "The above detailed coverage Is not subject to any
deductible or self -insured retention, or any other form of similar type
limitation. "
CONTRACTOR shall maintain the foregoing insurance coverages in force until
the work under this Agreement is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverages shall not
derogate from the provisions for indemnification of CITY by CONTRACTOR under the
Agreement. CITY or its representative shall at all times have the right to demand the original
or a copy of all said policies of insurance. CONTRACTOR shall pay, in a prompt and timely
manner, the premiums on all insurance hereinabove required.
6
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12. INDEPENDENT CONTRACTOR
CONTRACTOR is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor. CONTRACTOR shall secure at its expense, and be
responsible for any and all payments of all taxes, social security, state disability insurance
compensation, unemployment compensation and other payroll deductions for CONTRACTOR
and its officers, agents and employees and all business licenses, if any, in connection with the
services to be performed hereunder.
13. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike
manner. CITY may terminate CONTRACTOR'S services hereunder at any time with cause,
such cause deemed the failure of CONTRACTOR to obtain the mobile source emission
reduction credits by September 30, 1996 or CONTRACTOR's non-compliance with any other
provision of this agreement, and whether or not PROJECT is fully complete. Any termination
of this Agreement by CITY shall be made in writing through the City Administrator, notice of
which shall be delivered to CONTRACTOR as provided herein.
14. ASSIGNMENT AND SUBCONTRACTING
This Agreement is a personal service contract and the supervisory work
hereunder shall not be delegated by CONTRACTOR to any other person or entity without the
consent of CITY.
15. CITY EMPLOYEES AND OFFICIALS
CONTRACTOR shall employ no CITY official nor any regular CITY employee in
the work performed pursuant to this Agreement. No officer or employee of CITY shall have
any financial interest in this Agreement in violation of the applicable provisions of the California
Govemment Code.
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16. NOTICES
Any notices or special instructions required to be given in writing under this
Agreement shall be given either by personal delivery to CONTRACTOR'S agent (as
designated in Section I herein above) or to CITY'S Administrator, as the situation shall warrant,
or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in
the United States Postal Services, addressed as follows:
TO CITY: TO CONTRACTOR:
CITY ADMINISTRATOR
Attn: Brian Smith
2000 Main Street
Huntington Beach, CA 92647
17. IMMIGRATION
ECO SCRAP, INC.
Attn: Beth Adkisson
376 South Valencia Avenue
Brea, CA 92621
CONTRACTOR shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of
the United States Code regarding employment verification.
18. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONTRACTOR and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside
the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to
Huntington Beach City Charter § 309, the City Attorney is the exclusive legal counsel for CITY;
and CITY shall not be liable for payment of any legal services expenses incurred by
CONTRACTOR.
8
3WEcoscr*818195
19. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and provisions of
this agreement or to secure the performance hereof, each party shall bear its own attorney's
fees.
20. ENTIRETY
The foregoing, and Exhibit "A" attached hereto, set forth the entire Agreement
between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by and through their authorized offices the day, month and year first above written.
ECOSC
CITY OF HUNTINGTON BEACH, A
municipal corporation of the State of
California
Ronald J. Mertz, P si 5 t
Mayor
By:
Gilbe . Davis, Chief Financial Officer ATTEST:
G
City Clerk
APPROVED AS TO ORM:
$ y�; City AttornlWy
L��bs 1,✓� �T G ,
REVIEWED, INITIATED AND APPROVED:
ity Administra or
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CRTIFI ATE OF
DATE (mmmaivvli„
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sinnuaER ..
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
LOCKTON INSURANCE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
BROKERS, INC.
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
655 South Hope Street
COMPANIES AFFORDING COVERAGE
Los Angeles, CA 90017
COMPANY
213-689-0065
A NAT'L UNION FIRE INS CO
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COMPANY
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'NDICAT ED,NOT WIT HST ANDINGANYREOUIREVENT,TERMORCONDITIONOF ANYCONT PACT OROTHERDOCUMENT WITHRESPECT TOWHICHTHIS
CERTIFICATE MAYBE ISSUED ORMAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREINIS SUBJECT TO ALL THE TERMS,
XCLUS'ONS AND CONDITIONS OP SUCH POLICIES LIMITS SHOWNMAY
HAVE BEEN REDUCED BY PAID CLAMS.
a TYPEOFINSURANCE POLICY NUMBER
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THE CITY OF HUNTINGTON BEACH, ITS OFFICERS AND EMPLOYEES ARE NAMED AS
ADDITIONAL INSUREDS AS THEIR INTEREST MAY APPEAR. ADDITIONAL INSURED
ENDORSEMENT ATTACHED.
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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL
CITY OF HUNTINGTON BEACH
30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMEDTOTHELEFT.
2000 MAIN STREET
HUNTINGTON BEACH, CA 92648
rTI40RIZED. P 1 000229000
ATTN I.BRIAN SMITH
ACaAq
POLICY NUMBER: RM L001216753
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - DESIGNATED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE Re: ECo-SCRAP, INC.
Name of Person or Organization:
The City of Huntington Beach, its Officers and Employees
(if no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown
in the Schedule as an insured but only with respect to liability arising out of your operations or premises
owned by or rented to you.
CG 20 26 1185 Copyright, Insurance Services Office, Inc. 1984 13
•
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LOCKTON INSURANCE BROKERS INC.
655 South Hope Street
Los Angeles CA 90017
(213) 689-0542 FAX (213) 689-0550
DATE: August 14, 1996
TO: BRIAN SMITH
COMPANY: City of Huntington Beach
FAX NUMBER: 714/536-5233
FROM: Lisa Bullock
NUMBER OF PAGES (INCLUDING THIS PAGE): 3
SUBJECT: UNOCAL
Certificate of Insurance
Brian,
Attached is a copy of the required Certificate of Insurance (Additional Insured Endorsement
included) for the Eco-Scrap project.
This is also to advise you that there have been no claims made against the Professional Liability
coverage, therefore, the amount requested $500,000/AGG is available should you have a claim.
If you have any additional questions, please contact me.
Sincerely,
Lisa Bullock
Technical Assistant
CERTIFICATE OF WORKERS'
COMPENSATION INSURANCE
Union Oil Company of Califomia, dba
Unocal _
P.O. Box 2390
Brea, Callfornia 92822-2390
July 31, 1996
This is to certify that Union Oil Company of California, dba Unocal, is self -insured
under the provisions of the state of California Workers' Compensation Law and has in
its files the required approvals.
This coverage will not be cancelled except on 30 days advance written notice to you.
To: City of Huntington Beach By: �
2000 Main Street
Huntington Beach, CA 92648 Cf aldwell
Attn: Brian R.smith era' Compensation Advisor
0 EXHIBIT A •
S. V.0 A%
July 3, 1996
Mr. Richard Arnadril
Central Service Manager
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Dear Mr. Amadril:
ECO-SCRAP, Inc. is pleased to submit our proposal to the City of Hungtington Beach as
a South Coast Air Quality Management District (SCAQMD) Rule 2202 Old -Vehicle
Scrapping Option.
ECO-SCRAP, Inc. proposes to provide Mobile Source Emission Reduction Credits
(MSERCs) obtained from scrapping 1981 and older vehicles in accordance with Rule
1610.
ECO-SCRAP offers a full, turn -key program. We make it easy and hassle -free. We
obtain the cars to be scrapped, process all required paperwork and acquire the mobile
source credits for equivalency compliance. We have a proven track record scrapping over
12,000 vehicles.
Old vehicle scrapping offers the following key benefits.-
* Reduce compliance cost per regulated employee
* Meet emission reduction target for 3 years
* Reduce compliance paperwork/administration
* Receive credit for historical rideshare programs
* Bank surplus emission credits for up to five years
The information and rates shown in this proposal are exclusive to the City of Huntington
Beach, and may not be transferred. This information is to be kept confidential and cannot
be shared with others without the express written permission of ECO-SCRAP, Inc.
If 1 can answer any questions, or clarify any information presented in our proposal, please
call me at (714)577-2910.
Sincerely,
BETH AL'kl[�gi)N
P: , 0-C. � - 1 CIO
REQUEST FOR PROPOSAL
CITY" OF HUNTINGTON BEACH
SUBMITTED BY
ECO-SCRAP, INC.
A Unocal Company
July 3, 1996
PROPOSAL REQUEST
CITY OF HUNTINGTON BEACH
.Tune 3, 1996
]narrative:
ECO-SCRAP, Inc proposes to provide Mobile Source Emission Reduction Credits
(MSERC) obtained from vehicles scrapped in accordance with Rule 1610 as a cost-
effective, emissions reduction equivalency.
Vehicle scrapping is cost-effective because of the relatively low market value of qualifying
old vehicles and the relatively high level of emissions that can be reduced by taking those
vehicles off the Southland highways. There are approximately 1.8 million qualifying pre-
1982 vehicles registered in the four county SCAQMD area. These older vehicles can emit
50 to 100 times more pollution per mile than new vehicles and account for a
disproportionately high portion of all mobile emission sources in Southern California.
Qualifications:
ECO-SCRAP, Inc. is a wholly owned subsidiary of Unocal Corporation, a 100 year old
company. Unocal first demonstrated the viability of old -car buyback programs in 1990
with its pioneering SCRAP" (South Coast Recycled Auto Program) demonstration
project. Unocal SCRAP® was awarded the President's Environment and Conservation
Challenge Award in 1992. Since Unocal began vehicle scrapping in 1990, the program has
eliminated more than 13 million pounds of potential air pollution from the SCAQMD.
ECO-SCRAP, Inc., was incorporated in California on July 17, 1995 to help employers in
Southern California use old vehicle scrapping programs to reduce air pollution and meet
emission reduction goals. ECO-SCRAP provides a turn -key service. We worked closely
with the SCAQMD in Rule development and on an on -going basis.
ECO-SCRAP, Inc. is a licensed scrapper, License 280274.
November 17, 1995, ECO-SCRAP was awarded by the South Coast Air Quality District
the first Air Quality Investment Program, representing approximately 718 vehicles.
Bank, trade and clients references are attached to this package.
ECO-SCRAP's President, Ronald J. Mertz, is a 30-year veteran of Unocal. The
company's team brings highly -trained, experienced (a combined total of over 90 years of
employment with Unocal), well-equipped professionals, together with proprietary
software and proven processes to their clients.
•
ECO-SCRAP Proposal
Page 2
Title & Name
President
Ronald J. Mertz 714-577-2908
Director, Client Services
Beth Adkisson 714-577-2910
Operations Manager
Vidal Arista 714-577-2913
Internal Operations Supervisor
Brian Mayer 714-577-291 1
Coordinator -Administration
Ofelia Calderon -Ayala 577-2912
Administrative Assistant
Adriana Courseault 577-2909
Qualifications
30 Year Unocal Employee, General Mgr.
Automotive Services -
25 Year Unocal Employee, Mktg. Specialist
Sales Mgr. and Product Mgr_f SCAQMD
interface experience
Chemical Engineer, 10 years Unocal exp.,
SCAQMD interface experience - fixed
emissions
Previous SCRAP project supervisor,
SCAQMD & DMV interface experience
13 yrs. of increasing responsibility in record
retention & administration
6 year employee of Unocal
ECO-SCRAP has a complete training manual that is followed by all employees with all
appropriate health and safety elements covered therein.
Scope of Work:
ECO-SCRAP, Inc. will manage the process of old vehicle scrapping in its entirety. This
operation, including an extensive software package, has been fine-tuned and fully tested by
processing over 12,000 vehicles through the old vehicle buyback programs that Unocal
successfully completed in conjunction with SCAQMD.
A. Itemize Work:
l . Program advertising
a. On -going Press Releases and related articles on the Old Vehicle
Scrapping Program
b. T.V., F. S.I., Flyers and display ads advertising the program
2. Vehicle purchase appointments
a. 24 hour recording of SCAQMD/ECO-SCRAP's qualifications
ECO-SCRAP Proposal
Page 3
b. Telephone bank (6-8 employees) Monday -Friday accepting
calls to pre-qualify/screen and set appointments
c. The telephone registration will be followed by a confirmation
letter reiterating program requirements, specifying documents
the owner must bring with the car, providing directions to the
scrap site and verifying the appointment date and time.
3. Qualifying vehicles to be purchased
a. To qualify vehicles must be:
*Pre-1482 model years
*Registered for at least 2 years to an address
in the Los Angeles, Riverside and Orange Counties
or non -desert portions of San Bernardino County.
*Title must be free of liens
*May not be dismantled (windows, bumpers,
doors, fenders, etc. must be present)
*Must be fully functional and driven under
its own power to the program site.
b. Vehicle information is sent to Department of Motor Vehicles (DMV)
to verify that the car meets appropriate registration requirements.
4. On -site vehicle inspection
a. Paperwork is checked for completeness
*Title *Registration *V1N (vehicle identification number)
*Owner identification
b. Vehicles are functionally and visually inspected according to
requirements established by SCAQMD. During this process
Inspectors from the SCAQMD may be present to validate this
process and document vehicle inspection.
5. Acceptance of Sellers car
a. Payment (pre-printed check) is given to Seller
b. After purchase of the vehicle, 3% of the vehicles can be held back
from scrapping for vintage or classic car enthusiasts
6. Documentation Processing
a. Authorized DMV representatives will work on -site with ECO-SCRAP
personnel in completing the transactions and issuing the non -recourse
junk certificates.
b. All required paperwork will be sent to DMV and AQMD
7. Certification of Credits
a. Mobile Source Emission Reduction Credits (MSERCs) will be
issued for all qualifying vehicles and deposited in ECO-SCRAP's
account.
b. MSERCs will be transferred by SCAQMD as appropriate.
•
•
ECO-SCRAP Proposal
Page 4
B. Methodology of Work:
It is our recommendation, regardless of which vendor you select, that
you (or the vendor on your behalf) request a Multi -Site filing. The
reason for this, is Site 020853 has excess credits that can be applied to
Site 033395, thereby reducing the number of emission credits required
for 1996 compliance.
We offer two options for 3 year compliance: See attached Spreadsheets
for calculation details.
Option 1:
Combines the two sites and utilizes your most recent AVR data. This Option
would require a survey in years 1997 and 1998 to calculate the exact AVR
in those years.
Option 2•
Combines the two sites, uses the most recent AVR data for 1996 and assumes a
"worst case scenario' in 1997 and 1998 by using a default AVR (approved by
the District of 1.1). This Option would require no surveys in future years.
If awarded the contract, ECO-SCRAP will complete future filing forms
(filing costs are the responsibility of the City), act as a liaison between the City of
Huntington Beach and the South Coast Air Quality Management District.
ECO-SCRAP will provide ongoing consultation regarding Rule 2202 compliance
specifically and District actions generally.
C. Timeline:
From advertising to acquiring the cars to providing emission credits, the entire
process can be completed within two months.
D. Sab-contracting:
ECO-SCRAP, Inc. has contracted with Ecology Auto Wrecking to
provide the final physical service process of vehicle scrapping.
Ecology Auto Wrecking, Inc.
13780 Imperial Highway
Santa Fe Springs, CA 90670
310-921-9974
EPA ID# CAL 000 013 807 NPDES Permit #CA0056928
ECO-SCRAP Proposal
Page 5
Cost for Services:
Option 1: $29,783
Option 2: $46,725
Costs shail remain in force for 90 days from the date of this proposal.
Schedule of Payment:
The terms as described in the bid package (30 days of City Council acceptance of
completed work) is acceptable with ECO-SCRAP
Proposal submitted July 3, 1996
ECO-SCRAP, Inc.
I&& alie�' ��
Beth Adkisson
Director, Client Services
711196
ECO-SCRAP, Inc.
R2202 Evaluation
Old Vehicle Scrapping
City of Huntington Beach - Multi -Site
LINE
Section IV - Site Information
2
Employees in Windows
657
1996
3
AQIP Cost
Triennial
$ 82,125
4
CCVR
126
Section V - ERT Calculation
s
Performance Target Zone
2
1996
VOC
NOx
CO
Reduction Factors
4.9
3.4
39.4
6
3,219
2,234
25,886
7
Emission Factors
20
14
161
8
VTEC from Rideshare
2,520
1,764
20,286
9
ERT
699
470
5,600
Three year total
4,238
3,145
32,987
MSERC Cost
$29,783
Cost per EmployeelYear
$15.11
OPTION 1
657 1 1997 1 II 657 1 1998
126 1 li 126
1997
1998
VOC
NOx
CO
VOC
NOx
CO
6.45
4.83
49.86
5.84
4.42
45.14
4,238
3,173
32,758
3,837
2,904
29,657
19
14
146
17
13
132
2,394
1,764
18,396
2,142
1,638
16,632
1,844
1,409
14,362
1 1,695
1,266
13,025
•
13
7I1196
ECO-SCRAP, Inc.
Default AVR in yrs. 97198
SINE I Section IV -Site Information
R2202 Evaluation
Old Vehicle Scrapping
City of Huntington Beach - Multi -Site
OPTION 2
2
Employees in Windows
657
1996
657 1 1997
657
1 1998
3
AQIP Cost
Triennial
$ 82,125
4
CCVR
126
59.73
F
59.73
Section V - ERT Calculation
6
Performance Target Zone
2
1996
1997
1998
VOC
NOx
CO
VOC
NOx
CO
VOC
NOx
CO
Reduction Factors
4.9
3.4
39.4
6.45
4.83
49.86
5.84
4.42
45.14
6
3,219
2,234
25,886
. 4,238
3,173
32,758
3,837
2,904
29,657
7
Emission Factors
20.
14
161
19
14
146
17
13
132
s
VTEC from Rideshare
2,520
1,764
20,286
1,135
836
8,721
1,015
776
7,1184
9
ERT
699
470
5,600
3,103
2,337
24,037
2,821
2,127 T
21,773
Three year total 1 6,623
MSERC Cost
Cost
4,934 61,410
646,725
$23.71
J
N
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Michael T. Uberuaga, City Administrator
From: Robert J. Franz, Deputy City Administrator
Subject: FIS 96-58 Old Vehicle Scrapping Contract to Comply With
Rule 2202
Date: July 31, 1996
As required by Resolution 4832, a Fiscal Impact Statement has been
prepared for $47,725.00 for Old Vehicle Scrapping Contract to Comply
With Rule 2202.
If the City Council approves this request the estimated unreserved,
undesignated fund balance of the Air Quality Fund will be reduced to
$103,839. ,
Robert J. Franz,
Deputy City Administrator
EXriIBI
SERVICE AGREEMENT
ECO-SCRAP, Inc.
A Unocal Company
ECO-SCRAP, Inc.
376 South Valencia Avenue
Brea, California 92621
Telephone (714) 577-2909
*Remittances for ECO-SCRAP, Inc. should be sent to
ECO-SCRAP
CDL-49006
Dept. 7549-ES
Los Angeles, California 90088-7549
FAC4r✓ a ,:o-
C100-ACT NC-
033395
1877
p. ME T T=R;"S
30 DAYS FROM DATE OF INVOICE
ius-,.: LR S NAB.._
CITY OF HU'NTI NGTON BEACH
.-CR=SS
2000 MAIN ST.
HUNTINGTON BEACH; CA 92648
CCNTAc-
BRIAN 7AITH
T=L=?hO.';E NC =iiCSIVILE N1,.
714--536-5221
This Agreement (''Agreement'') is made as of this 19TH day of J'IUL Y between
ECO-SCRAP, Inc., a California corporation ("ECO-SCRAP '') and CITY OF HUNTINGTON BEACH
(''Customer'')
Customer understands that it is their sole responsibility to determine the number of Vehicle Trip Emission Credits
(' VTECs") to offset, and to anticipate and allow for any increases that may need to be offset in future years.
MSRECs will be issued in the name of CITY OF �'.I !TINGTON BEACH
for a — year period in accordance with RULES 2202 and 1610 provisions:
Total lbs. of:
6.623 VOC 4,934 NOx, and 51.410
MSERCs Fee
CO.
10% of MSERCs Fee payable upon execution of this Contract (Payable to ECO-SCRAP, Inc.)
RULE 2202 Fee (Submitted with Registration Form, payable to AQMD) $
MSERCs Fee Final Payment (Payable to ECO-SCRAP. Inc.)
332.80
$ 46,725.
* $ 4.672.
. $ 42.053.
THE TERMS AND CONDITIONS ON THE REVERSE SIDE ARE PART OF THIS AGREEMENT. BY SIGNING ACCEPTANCE BLOCK
BELOW, CUSTOMER ACKNOWLEDGES THAT THEY HAVE READ, UNDERSTAND, AND ACCEPT THESE TERMS A�10 CONDITIONS..
ECO-SCRAP. Inc.
cL'C1'"R it
.TY OF HUNTINGTON BEACH
NA41L VIDAL AR = STA
,.nr.•E --
T OPERA.TIO':S MXIAGER
IT E
DATE
_UL 19. 1996
DATE
FORM ESAA]i iaC1- 3-96) F31KT5D :h U.S A.