*SPECIAL MEETING -REVISED -ENERGY AND ENVIRONMENT

Called by Committee Chair

*SPECIAL MEETING - REVISED - ENERGY AND ENVIRONMENT COMMITTEE

Wednesday, June 17, 2015

ROOM 1010, CITY HALL - 2:00 PM

200 NORTH SPRING STREET, LOS ANGELES, CA 90012

*Agenda revised to reflect the addition of closed session language to Item No. 1.

MEMBERS: COUNCILMEMBER FELIPE FUENTES, CHAIR

COUNCILMEMBER BOB BLUMENFIELD

COUNCILMEMBER TOM LABONGE

COUNCILMEMBER JOSE HUIZAR

COUNCILMEMBER PAUL KORETZ

(Adam Lid - Legislative Assistant - (213)-978-1076 or email [email protected])

Click here for agenda packets

Note: For information regarding the Committee and its operations, please contact the Committee Legislative Assistant at the phone number and/or email address listed above. The Legislative Assistant may answer questions and provide materials and notice of matters scheduled before the City Council. Sign Language Interpreters, Communication Access Real-Time Transcription (CART), Assistive Listening Devices, or other auxiliary aids and/or services may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting/event you wish to attend. Due to difficulties in securing Sign Language Interpreters, five or more business days notice is strongly recommended. For additional information, please contact the Legislative Assistant listed above.

ITEM NO. (1)

15-0488

Board of Water and Power Commissioners report and Resolution No. 015-197 relative to proposed Agreement Nos. 47334-5 and 47335-5 with Kiesel Law LLP and Paradis Law Group, PLLC, respectively, for services as special counsel for matters related the case of City of Los Angeles v. PricewaterhouseCoopers LLP, Los Angeles Superior Court Case No. BC574690.

Fiscal Impact Statement Submitted: No

Community Impact Statement: None submitted.

TIME LIMIT FILE - JUNE 25, 2015

(LAST DAY FOR COUNCIL ACTION - JUNE 24, 2015)

The Committee may recess into Closed Session, pursuant to Government Code Section 54956.9(d)(1), to confer with its legal counsel relative to the case of City of

Los Angeles v. PricewaterhouseCoopers LLP, Los Angeles Superior Court Case No.

Wednesday - June 17, 2015 - PAGE 1

BC574690 in connection with LADWP Agreement No. 47976 (the CISCON Contract), and related matters therein.

ITEM NO. (2)

12-0709

CD 10 Joint City Administrative Officer (CAO)/Economic and Workforce Development Department report relative to revised terms in connection with the direct sale of property located at 6000 Jefferson Boulevard to Coffee Bean and Tea Leaf for development.

Fiscal Impact Statement Submitted: Yes


ITEM NO. (3)

15-0671

CAO report relative to proposed agreement with B.J. Used Tire and Rubber Recycling, Inc. for the collection, transportation, and processing of used/waste tires for beneficial reuse for a term of five years with one five-year renewal option for a cost not exceed $400,000 per year.



TIME LIMIT FILE - JULY 30, 2015

(LAST DAY FOR COUNCIL ACTION - JULY 29, 2015)

ITEM NO. (4)

07-1332

CAO report relative to proposed contract with S. Groner Associates to provide assistance in implementing the Stormwater Public Education Program for a term of five years with two one-year renewal options at a cost not to exceed $3,150,000.



TIME LIMIT FILE - AUGUST 1, 2015

(LAST DAY FOR COUNCIL ACTION - JULY 31, 2015)

ITEM NO. (5)

14-0296


City Attorney report and Ordinance relative to amending LAMC Sections 64.00 and 64.30 to modify the City's wastewater treatment program to maintain consistency with the National Pretreatment Program established pursuant to the Federal Clean Water Act.

Fiscal Impact Statement Submitted: No


If you challenge this Committee's action(s) in court, you may be limited to raising only those issues you or someone else raised at the public

hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to, the public hearing. Any written

correspondence delivered to the City Clerk before the City Council's final action on a matter will become a part of the administrative record.

Materials related to an item on this agenda submitted to the committee after distribution of the agenda packet are available for public

inspection in the City Clerk's Office at 200 North Spring Street, Room 395, City Hall, Los Angeles, CA 90012 during normal business hours.




D Los Angeles ""V\1'" Department of

~-.-_P_. Water & Power

BOARD LETTER APPROVAL

DATE: April 21, 2015

RESOLUTION NO. ______ _

MARCIE L. EDWARDS General Manager

SUBJECT: Proposed Agreement between the City of Los Angeles, Department of Water and Power and Kiesel Law LLP (Agreement No.47334-5) and Paradis Law Group, PLLC (Agreement No. 47335-5) as Special Counsel for Matters Related to a Lawsuit Against PricewaterhouseCoopers LLP, City of Los Angeles v. PricewaterhouseCoopers LLP (PwC), Los Angeles Superior Court Case No. BC57 4690

SUMMARY

The Office of the City Attorney (City Attorney) is transmitting for your approval a proposed Contingent Fee Agreement (Agreement) between the City of Los Angeles (City) acting by and through the Los Angeles Department of Water and Power (Department) and Kiesel Law LLP (Agreement No. 47334-5) and Paradis Law Group, PLLC (Agreement No 47335-5), (collectively, Special Counsel), in connection with representation of the City in City of Los Angeles v. PricewaterhouseCoopers LLP (PwC), Case No. BC574690 in Los Angeles Superior Court, and related actions against PwC and possibly other entities, in connection with LADWP Agreement No. 47976 (the CISCON Contract) , and related matters therein. The Agreement provides for a term commencing January 1, 2015 and terminating upon resolution of the litigation .

City Council approval is required .

RECOMMENDATION

It is recommended that the Board of Water and Power Commissioners adopt the attached Resolution authorizing execution of the Agreement.

BACKGROUND

This professional services contract is being recommended as a sole source due to the fact that competitive bidding at this juncture would not be practical or advantageous for LADWP, as time is of the essence. Further, Kiesel Law LLP and Paradis Law Group,


PLLC are highly experienced attorneys in this area of law, and no lawyers have greater familiarity with the underlying facts at this time than they do. Further, the Legal Division does not have personnel with the expertise rn the prosecution of civil claims for fraud in the context of the professional service agreement at issue here. The term of the contingency agreement commenced on January 1, 2015 and terminates upon resolution in litigation. The firms will advance all costs, and have agreed to share a contingency payment if successful in obtaining and collecting a recovery. The firm has no conflict of interest in representing the City and/or the Department.

CITY ATTORNEY

The Office of the City Attorney reviewed and approved the Resolution as to form and legality.

ATTACHMENTS

Resolution Agreement Nos. 47334-5/47335-5



FORM GEN. 160

Date:

To:

From:

Subject:

SUMMARY

ClTY OF LOS ANGELES INTER-DEPARTMENTAL CORRESPONDENCE

May 21, 201 5

The Council

Miguel A Santana ~ J G. D City Administrative Officer :::J --r, Jan Perry

CAO File No. Council File No. Council District:

0150-10295-0000 12-0709 10

General Ma~ag r rEcon7 a~ Workforce Development Department

REVISED T'ERMs-foR DIRECT SALE OF PROPERTY LOCATED AT 6000 JEFFERSON BOULEVARD TO COFFEE BEAN AND TEA LEAF FOR DEVELOPMENT

On October 23, 2012, Council determined that the City had no further municipal use for a vacant 3.6-acre property located at 6000 Jefferson Boulevard (Property) (C.F. 12-0709). On December 12, 2014, Council approved direct sale of the Property to a limited liability corporation controlled by Sunny Sassoon, Executive Chairman of the Board for International Coffee and Tea, LLC (Buyer) for the fair market value of $7, 150,000 less a potential credit not to exceed $300,000 for remediation costs. The Council determination found that the sale and its associated terms were of economic benefit and best served the public interest. The Council's actions directed the City Attorney, in collaboration with the Economic and Workforce Development Department, to draft and execute documents necessary to transact the sale.

This report proposes to modify and finalize the terms of sale of the Property to the Buyer serving the same economic development purpose and for the same development proposal anchored by a campus that consolidates Coffee Bean and Tea Leaf's (Coffee Bean) headquarters and production facilities at the Property.

The terms of the transaction adopted by Council for direct sale of this Property were described in detail in a November 14, 2014 joint report from the Office of the City Administrative Officer and the Economic and Workforce Development Department. The terms originally proposed remain the same, with a few revisions to address issues related to financing the development that were not incorporated into the original deal terms, and to provide the City additional security related to the economic development benefits. Revisions to the deal points are summarized here, and further described in Attachment A:

• The Buyer has agreed to an expedited construction schedule, reducing the term for completion of the first phase of development from thirty-six (36) months to twenty-four (24) months. This revision reflects the City's desire to realize the economic benefits of the development in the most expeditious timeframe possible and reduces the term of risk related to the City's repurchase option and any associated development opportunity loss.

• The Buyer has also agreed to extend the City's right to repurchase the Property through the second phase of development, granting the City a vested right in the Property for a total of five (5) years.


-2 - CAO File No. 0150-10295-0000

• In order for the Buyer to obtain conventional lending for construction of improvements, the City must provide for terms of subordination or enter into an intercreditor arrangement. The revised terms proposed here retain the City's right to record a covenant in first position on the Property providing the strongest protection of the City's public benefit requirements and economic interests. An intercreditor agreement will be executed between the City and any construction or permanent lender providing that in an event of uncured default and foreclosure, the City agrees to terminate its covenant for payment of $1 million as fulfillment of the Buyer's obligations contained in the covenant.

• The original transfer provisions did not contemplate an allowable transfer of the property by the Buyer without the City's consent during the term of the 10-year covenant, and did not provide further recourse for the City after the tennination of its right to repurchase at the end of year 5. These new proposed terms incorporate a provision for the Buyer to sell or transfer the Property with clear title in the event the Buyer is compelled to sell as the result of bankruptcy or a corporate merger/acquisition that impacts Coffee Bean's lease of the Property, leading to the Buyer's inability to meet the City's covenant requirements. As consideration for the release of the City's covenant triggered by these potential events, the City would receive a 50% share of all profit on sale up to $1 million. These provisions would remain in place until the covenant is naturally extinguished when the Buyer fulfills all the public benefit provisions and the City issues a Final Certificate of Completion.

The current recommendation will authorize the Economic and Workforce Development Department (EWDD) to enter into a Purchase and Sale Agreement with the Buyer and all associated documents including intercreditor agreements, open escrow. and provide the Buyer a nine-month due diligence period, with an option to extend for an additional nine months, during which the Buyer will investigate the Property for environmental contamination, and apply for and receive entitlements for development.

These recommendations are consistent with the guidance and advice of the City Attorney regarding the sale of City-owned property to serve the public interest or necessity. Administrative Code Section 7.27 provides that the City may determine that the public interest is best served by the direct sale of property without notice of sale or advertisement for bids. The Project will serve the public interest through providing economic development benefits to the City including the retention of existing jobs, the addition of net new jobs to the City, facilitating the expansion of an established company in the City, and moving a public property onto the tax rolls and into productive use.

Further Council actions will be necessary to complete the transaction and convey the Property, once the Project has received entitlement and completed environmental review pursuant to the California Environmental Quality Act (CEQA}. The current actions to enter into the Purchase and Sale Agreement are accordingly subject to completion of the CEQA review.

RECOMMENDATIONS

That the City Council, subject to the approval of the Mayor, approve the revised terms of sale for the City-owned property at 6000 Jefferson Boulevard to a limited liability corporation controlled by Sunny Sassoon, Executive Chairman of the Board for International Coffee and Tea, LLC, and authorize EWDD and the City Attorney to finalize and execute the necessary documents to memorialize these terms, including but not limited to the Purchase and Sale Agreement, Covenant. and future intercreditor agreements.


-3- CAO File No. 0150-10295-0000

FISCAL IMPACT STATEMENT

The proposed sale is for City-owned property located at 6000 Jefferson Boulevard in Council District 10 to Coffee Bean for the fair market value of approximately $7, 150,000. The property is no longer needed for municipal purposes, pursuant to Council determination (C. F. 12-0709). Sale proceeds will be deposited into the Solid Waste Resources Revenue Fund. The proposed transaction is in accordance with Charter Section 385 {Sale of Property), and Los Angeles Administrative Code Sections 7.27 and 7.27.2.

BACKGROUND

The Property: 6000 Jefferson Boulevard The Bureau of Sanitation acquired a 5.1-acre property at 6000 Jefferson Boulevard from Chevron in 1996 for the purpose of constructing a solid resources management facility for the West Los Angeles wasteshed. However, the property was never developed for that purpose. In 2010, a 1.5-acre portion of the parcel was developed as an air treatment facility. The remaining Property, measuring approximately 156,816 square feet (3.6 acres), is partially paved with asphalt but is otherwise unimproved, and is currently used by Bureau of Sanitation for storage of empty containers and vehicles. The Property has been formally subdivided, and has been determined by Council to have no further use for municipal activity (C. F. 12-0709).

The Property is zoned M1-1VL for Limited Industrial use, and is located within .5 miles of the La Cienega/Jefferson station of the Metro Expo Line light rail, providing mass transit options for workers and visitors. The Property is also located adjacent to the Hayden Tract. an industrial tract in Culver City that has seen significant private-sector investment in the past two decades as it has transitioned from an underutilized industrial district into a jobs-rich mix of uses including office, creative office, light manufacturing, advertising and technology. Coffee Bean's campus, with a mix of office and light manufacturing, may serve to jump-start an expansion of similar private-sector investment in Los Angeles' nearby industrial properties.

The Buyer International Coffee & Tea LLC (Coffee Bean) is a privately-held company established in 1963 and based in Los Angeles. Coffee Bean will enter into a long-term lease for the property and is one of the world's largest specialty coffee and tea retailers, with nearly 1,000 stores operating worldwide employing over 5, 100 workers. One hundred and sixty-eight of these stores are in Southern California, where the company employs over 2,000 workers.

A limited liability corporation controlled by Sunny Sassoon, Executive Chairman of the Board for Coffee Bean, will acquire the property for lease to Coffee Bean for development and operation.

The Project and Economic Benefits The Project's minimum scope will include development of a 50,000 square foot facility housing office and light manufacturing space. Construction may be phased over a 5-year period with at least 25,000 square feet to be constructed within the first two years. The following table describes the economic impacts estimated to be created by development of the minimum Project.


-4- CAO File No. 0150-10295-0000

Summary: Estimated Economic Impacts*

Estimated Construction Jobs Created: 121 Total Permanent Jobs Created: 200 Estimated Gross Property Tax: Year 1 $271,500 (19% Received by City of Los Angeles: $51,585)

Estimated NPV of Gross Property Tax: 30 years $3,680,765 (19% Received by City of Los Angeles: $699,345)

Estimated Utility User Tax: Year 1 $16,236 (Revenue to the City of los Angeles)

Estimated NPV of Utility User Tax: 30 years $259,000 {Revenue to the City of Los Angeles)

Business Tax Revenue: not estimated at this time

*The figures provided in the table above are for estimation purposes only; actual fiscal impact or job creation may be higher or lower than these estimates. Standardized formulas were used to generate these figures and are based on accepted econometric practices and basic tax calculations taken from research performed by a variety of sources, including the Los Angeles Economic Roundtable, California Redevelopment Association, International Council of Shopping Centers, US Department of Housing and Urban Development, CRA/LA, and the City and County of Los Angeles.

Coffee Bean intends to develop additional facilities on the Property as it consolidates operations on the campus over a 5-year period, for a total of approximately 100,000 square feet of office and light manufacturing space for 400 permanent employees. The job and revenue impacts of this larger project would be significantly higher than the estimated figures provided in the table above. The sale will contribute to the economic development of the City by moving a public property onto the tax rolls as a site for employment and economic activity, and by providing a location for the consolidation and expansion of a Los Angeles-based company that has a critical need to relocate to larger facilities.

Attachment A: Revised Deal Points

MAS:JP/JR:JS 05150048


Property:

Buyer:

Seller:

Lessor:

Lessee:

ATTACHMENT A

Final Deal Terms for 6000 Jefferson Boulevard

6000 Jefferson Blvd., Los Angeles, CA 90016

A single-asset, special-purpose Delaware limited liability company; whose manager will be Sunny Sassoon and members to be among select shareholders of International Coffee & Tea LLC (Coffee Bean)

City of Los Angeles (City)

The Buyer

The Coffee Bean & Tea Leaf (CBTL)

Purchase Price: Appraised Fair Market Value (FMV). February 2014 appraisal indicates a fee simple value of $7, 150,000. Appraisal may be updated prior to close of escrow, which may result in a revised FMV reflecting site conditions discovered through due diligence.

Purpose: Buyer will develop the Property as corporate headquarters of CBTL, consolidating other primary operations of CBTL on the Property (Project).

Escrow Period: Commencing on full execution of a Purchase and Sale Agreement drafted by the City, escrow period should be for nine (9) months, to be extended upon Buyer's request for up to nine (9) additional months, during which time Buyer will secure entitlements for development, at Buyer's sole cost. Escrow can close following City's approval of entitlements and CEQA review.

Escrow Deposit: Deposit sum of $100,000 - $90,000 of which is refundable - to be applied towards Purchase Price, subject to the following:

a) Buyer's discretionary approval of customary due diligence of the Property, including its satisfaction with (i) City's approval of all entitlements for development of the Project. (ii) Phase I, and if necessary Phase II, Environmental Assessment Report(s), (iii) Geology Report regarding condition of the soils;

b) Terms of a satisfactory Purchase & Sale Agreement between the City and Buyer; and

c) Terms of a satisfactory Covenant Agreement between the City and Buyer, for CBTL to construct the Project and to house 200 living wage jobs in the Project, for a duration of not. less than ten (10) years. The Covenant Agreement will require self-reporting from CBTL on an annual basis regarding employment numbers.

Due Diligence: During the escrow period, Seller will provide Buyer all available site documentation and right of entry to perform site testing, at Buyer's cost. If it is

1


determined that environmental remediation is necessary to complete the Project, the City, at its sole discretion, can either:

a) Perform the required remediation before conveyance of the property to the Buyer, or

b) Discount remediation costs from the Purchase Price, up to a 'maximum level of $300,000, for Buyer to perform remediation, accept all liability, and indemnify the City against future claims related to environmental issues.

If necessary remediation costs are expected to surpass $300,000, City and Buyer shall negotiate in good faith, for a period not to exceed 60 days, to identity funds to pay for the estimated costs of remediation. If funds are not identified within this period, either party may terminate the Purchase and Sale Agreement.

Development: The phased Project will include between 50,000 and 100,000 square feet of office and industrial space.

Transfer Provisions:

Development of at least one Phase of the Project including 25,000 to 50,000 square feet shall be completed, as evidenced by the City's issuance of a Preliminary Certificate of Occupancy (COO}, within twenty tour (24) months from close of escrow. Development of additional Phases, including an additional 25,000 to 50,000 square feet will be completed, as evidenced by the City's issuance of a Preliminary COO, within sixty (60) months from close of escrow, subject to reasonable extension of Project completion period by the City.

Within twenty-four (24) months from close of escrow, if Buyer cannot show evidence of substantial progress (such as issuance of construction permits and start of construction) toward completion of the first Phase, the City shall have the right to re-purchase the property from the Buyer at the Fair Market Value.

The City's right to repurchase the property from the Buyer at Fair Market Value shall continue an additional thirty-six (36) months through the second Phase of development. The City may act on its right to repurchase only if the Buyer has not shown substantial progress towards development of an additional 25,000 square feet in this second Phase of development. The City's right to repurchase the Property will terminate at the earlier of: 1) evidence of 50.000 square feet of office and industrial space being available for occupancy, or 2) sixty (60) months after close of escrow. The FMV shall be based on Property having marketable title.

Except for Permitted Transfers, the property cannot be sold or otherwise transferred to a third party during the term of the covenant without the City's consent. If the Buyer is compelled to sell the Property as the result of bankruptcy or corporate merger/acquisition impacting the CBTL lease on the Property after the Right to Repurchase period has expired but prior to fulfilling all requirements of the covenant, the City will agree to a Transfer of the Property and a removal of the City covenant provided that the City receives a 50% share of all profit on sale up to $1 million. Profit shall be determined based on value above the original Purchase Price plus reasonable and customary construction costs, certified by the City of Los Angeles at the City's cost in consultation with the Buyer.

2


Buyer Cooperation:

lntercreditor Agreement:

Buyer agrees to cooperate fully and reasonably with the City and City Attorney's Office in order to keep the City harmless from third-party legal actions related to the approval of the transaction, including environmental review, the terms of the agreement and development and use of the Development.

The City covenant will be recorded in first position at the close of escrow. The City agrees to enter into an intercreditor agreement with the construction lender containing reasonable notice and cure provisions and agreement that in an event of default and foreclosure the City will terminate its covenant for payment of $1 million as fulfillment of Buyer's obligations contained in the covenant. These provisions are extinguished along with the covenant once a Final Certificate of Completion is issued by the City to the Buyer noticing the Buyer's natural fulfillment of all public benefit obligations.

3


0150-10357-0000

TRANSMITTALCOUNCIL FILE NO.DATETO

The Council

COUNCIL DISTRICTALL

FROM

The Mayor

Personal Services Contract with B.J, Used Tire and Rubber Recycling, Inc. For the Collection. Transportation, and Processing of Used/Waste Tires

For Beneficial Reuse

Approved and transmitted for your consideration. See the CifyAdfTfinrstrafcve Officer report attached.

/ > 1 J ^7/

! /S"

MAYOR

MAS:WKP:06150113(

CA.O FA9-1


Report FromOFFICE OF THE CITY ADMINISTRATIVE OFFICER

Analysis of Proposed Contract($25,000 or Greater and Longer than Three Months)

C D No. CAO File No.: 0150-10357-0000To: The Mayor Date:05-28-2015 ALL

Contracting Department/Bureau: Contact: Ronaldo Milo, (213) 485-3568

Reference: Transmittal from the Soa-'d of Public Works dated February 9, 2015; referred for report on February 12, 2015.

Purpose of Contract: For tne collection, transportation, and processing of used/waste tires for beneficial reuse.

Contract Term Dates: Five years from the date of execution with one renewal option for an adaitic-nal five years and second renewal option for an additional six months on a month- Jo-month_basis for a total potential term of 1Q.5 years.________

Type of Contract: ( X } New contract { ) Amendmenta

Contract/Amendment Amount $4,000,000

Proposed amount $AQQQ,0Q0 + Pror award(s) $0 Source of funds: Fronf funding wi! be provided by the Solid Waste Resources Revenue Fund and ail eligible expenditures wi1/ be reimbursed from CaiRecyae grants, General City Purposes, and Council District Funds. See report for additcnai

_ information._____________________________________ ___________ __________________ ____........ ...................................Name of Contractor: B.J Used Tire and Rubber Recycling. Inc.

Total $4,000,000

Address: 1170 Hastings Ranch Drive, Pasadena, CA 91107N/A* j S. Contractor nas complied witn:

__ i__ a Equal Fmploymt. Oppty./Affim Action b.Good Faith Effort Outreach”

No YesYes No N/A’X1 Council has approved tee purpose______

2. Appropriated funds are available________3. Charter Section I022_?ndmgs completed^ c- Proposals have beer requested __

' 5. Risk Msnagament rovow completed__S. Stoical (’revisions ‘or Cny Contracts mefuded 7 Worsforce that resides n the City

XXX c. Equal Benefits Ordinance ___

d. Conliaofor Re spans bility Ordinancee. Siavery Disclosure Orcma-ice__

XXXXX

f Didder Certification CEC Form 50 XX'N/A - not applicable «<k Contracts over $; 00,0000%

COMMENTS

In accordance with Executive Directive No. 3, the Board of Public Works (Board), on behalf of the Bureau of Sanitation (Bureau), is requesting authority to execute a Personal Services Agreement with B.J. Used Tire and Rubber Recycling, Inc. (Contractor) for the collection, transportation, and processing of used/waste tires for beneficial reuse for a five year period with one renewal option for an additional five years and a second renewal option for an additional six months on a month-io- month basis for a total potential term of 10.5 years at a cost not to exceed $4.0 million (or $400,000 per year). In accordance with Los Angeles Administrative Code Section 10.5 (a), Council approval is required to execute the proposed contract as the term of the contract exceeds three years.

The California Tire Recycling Act of 1989 (Assembly Bill 1843) created the Tire Recycling Program to reduce landfill disposal of used tires, increase recycling of tires into secondary uses, and promote secondary markets for used tire byproducts, tire shredding, and energy recovery. The Act also established the California Tire Fee, a $1.75 fee assessed on the sale of new tires, and created the California Tire Recycling Management Fund for the deposit of such revenues, The California Department of Resources Recycling and Recovery (CalRecycle) administers this Fund and awards grants to local governments to support activities that reduce the number of used or waste tires going to landfills.

.. j.

nrmi!

YTtTc*r06150113j AnalystWI 7 /toAC 661 Rev 6/200? is


CAC File No.0150-10357-0000

Page2

To support this legislation, the City implemented the Waste Tire Recycling Program, which provides the following services:

* Collection of abandoned used/waste tires in residential areas and afong public right-of-ways;* Six amnesty events per year where City residents may drop off up to nine used/waste tires per......tnpXpufsuaMTd'Califdrhla FuMcKesodTcesXb'de'XPRCJ'Secfidh T?6742954)~a1“n6~ cost;..........* City residents may drop off up to four used/waste passenger tires at any of the Bureau’s six

district yards per calendar year;* South Los Angeles Alley Cleanup Program, which addresses the most blighted alleyways in

Council Districts 8, 9, 10, and 15;* Council District 1 Keep It Clean Campaign, which addresses abandoned waste in alleyways,

streets, and vacant lots in Council District 1; and* Clean Streets Program (C.F. 13-0852-S1), which provides additional alleyway and abandoned

waste cleanups on a citywide level.

Through these services, the Bureau annually collects approximately 26,000 used/waste tires (or 325 tons). The Bureau stores these tires at its six district yards and requires a private hauler to collect them from its facilities and transport them to CaiRecycie certified waste tire processing facilities for recycling and beneficial reuse. Used/waste tires can be re-treaded for reuse or resale or recycled into new rubber products such as artificial turf, ground cover for playgrounds, running tracks, athletic fields, or slurry sea! for repaving City streets.

Since the implementation of this program and as the program has expanded over the years, different contractors have provided this service. Currently, the services are being performed through a Letter of Agreement (LOA) with the Contractor that expires on June 30, 2015.

Contractor Selection Process

In accordance with Charter Section 1022, the Personnel Department determined that City employees possess the skills and expertise to perform the work proposed to be contracted. However, this Office determined that the work proposed to be contracted can be performed more feasibly by contractor than City employees as there is insufficient existing City staff to perform the work proposed to be contracted and additional staff cannot be employed and trained in a timely manner to meet the Bureau’s needs. As such, on July 3, 2013, the Board authorized the Bureau to distribute a Request for Proposals (RFP) and negotiate a contract with the highest scoring bidder. The Bureau received three proposals and each proposal was evaluated on the following criteria:

* Prior Experience (15 points)* Responsiveness to RFP (20 points)* Technical/Safety Requirements (25 points)* Financial Requirements (15 points)* Proposed Service Fee and Revenue Sharing (25 points)

One of the proposers did not meet the Business Inclusion Program (BiP) requirements and their proposal was deemed non-responsive. Among the remaining proposals, the Contractor received the highest score and on February 9, 2015. the Board approved the Bureau’s request to execute the proposed contract.


AO Fife Nc.0150-10357-0000

r> Page3

Scope of Work

Under the terms of the contract, the Contractor will provide the following services:

• Collect up to 52,000 used/waste tires per year from the Bureau's six district yards or other City..... departmeoti5oatioiis^n'“ari''as-rieeded~'bas]S';..................................................................................• Provide roll-off boxes for the storage of used/waste tires;• Transport used/waste tires to certified waste tire processing facilities pursuant to PRC Section

No. 42951; and• Maintain all valid waste tire hauler licenses and registration pursuantto PRC Section No. 42954.

Compensation for Services

Pursuant to Article 4.5, the Contractor will be compensated on a cost per tire basis as follows:

Cost Per TireType of Used/Waste Tire Without Rim With Rim$1.50S2.00$4.66

$5.00Passenger Tire U^tTrud<Tire $6.00Truck Tire $7.00Off-Road/Tractor/Forklift Tire $40.00 $45.00

Article 4,5 also provides reduced rates if the Bureau delivers the used/waste tires to the Contractor's facility instead of having the Contractor pick up the tires from the City’s facilities.

The contract ceiling is $4.0 million over 10 years or $400,000 per year and provides for the collection and transportation of 52,000 tires per year. The Bureau is assuming that it wiJi collect 26,000 tires per year and that other City departments will piggyback on this contract to remove an additional 26,000 tires per year. The annual cost ceiling was calculated using the following assumptions:

Funding Source Annual Estimated j No. of Tires !

Programl Funding Amt-

Waste Tire Cleanup/Waste Tire Drop-Offf Waste tire Amnesty Events............ ...; South LA Alley Cleanup______________: GDI Keep It Clean Campaign ................: Citywide Clean Streets Program_______

Ca I Recycle Grant CaiRecycle Grant CalRecycie Grant CD1 Funds

I $ 50,000 6,500 i30.000 3,900 I

5,200 [40,00010,000 1,300

General City Purposes 70,000 | 9,100_______ _____________ Subtotal : $_200,000100% Contingency for Other City Departments $ 200,000

26,00026,000

TOTAL.i..$ 400,000 j 52,000

As of May 2015, the Bureau has expended $31,863 for the collection and transportation of 12,369 used/waste tires in the current fiscal year under the existing LOA with the Contractor. Therefore, the $200,000 cost ceiling provides sufficient capacity to cover the Bureau’s annual expenditures and any unanticipated workload increases such as the expansion of the Citywide Clean Streets Program as proposed in the 2015-16 Budget.


CAO File Nc.0150-10357-0000

Page4

Source of Funds

The Bureau is proposing to use the Sofid Waste Resources Revenue Fund (SWRRF) to front-fund the costs of this contract and use CalRecycle grants, Generaf City Purposes funds, or various Council District funds to reimburse SWRRF for all eligible costs. Sufficient funds are available within SWRRF

r"first year costs of tire.eontractand' subsequent'"yearfunding 'wiltbe'provldetflhrougtrthe City’s annual budget, which is subject to Mayor and Council approval. The Bureau will continue to apply for the annual CalRecycle Local Government Waste Tire Amnesty grant, which pays for public events for citizens to drop off waste tires, and the CalRecycle Local Government Tire Cleanup grant, which funds the collection, removal, transportation, recycling, and disposal of waste tires from areas where illegal dumping has occurred along public right-of-ways. The financial solvency of these grant funds are unknown at this time and Section 10.2.2 of the proposed contract includes a financial liability clause that limits the City’s annual financial obligation to the amount approved in the budget. Waste tires within commercial and multi-family (greater than four units) properties will be collected and removed by the franchise haulers in accordance with the California Tire Recycling Act, and these costs are not included in this contract. In addition, under the franchise agreement, franchise haulers will continuously provide outreach and education and inform the customers of the programs and services available to them.

It should be noted that SWRRF can front-fund the costs of the contract but is not an eligible funding source, Although SWRRF pays for residential bulky item pickup services, used/waste tires are not considered bulky items and, therefore, SWRRF is not an eligible funding source for this contract

Compliance with City Contracting Requirements

The Contractor has complied with all City contracting requirements and the Bureau reports that the City Attorney has approved the contract as to form.

RECOMMENDATION

That the Council authorize the Board of Public Works, on behalf of the Bureau of Sanitation, to execute the proposed Personal Services Contract with B.J. Used Tire and Rubber Recycling, Inc. for the collection, transportation, and processing of used/waste tires for beneficial reuse for a five year period with one renewal option for an additional five years and a second renewal option for an additional six months on a month-to-month basis at a cost not to exceed $4.0 million.


Funding for the proposed contract is provided by CalRecycle grants. General City Purposes, and various Council District funds and no additional Generaf Fund appropriation is required. Sufficient funds are available to support the first year costs of the contract and future year funding will be provided through the City’s annual budget process, which is subject to Mayor and Council approval. Additionally, the contract contains a Financial Liability Clause, which limits the City’s annual financial obligation to the amount approved in the budget. Therefore, the recommendation in this report complies with the City’s Financial Policies as sufficient funds are available to support proposed expenditures.

MAS WKP 06150113


0150-10370-0000

TRANSMITTALDATE COUNCIL FILE NC.•>

The Council it ,'.V

COUNCIL DISTRICTFROMThe Mayor

tPersonal Services Contract with S. Groner Associates

For Specialized Services Related to the Stormwater Public Education Program

Approved and trahssVnitted for your consideration.See the City Adnirni^ratU/e Officer repprOattached.

\

! // IAYOR/

MAS EMM:06150128!

CAO .40.


Report FromOFFICE OF THE CITY ADMINISTRATIVE OFFICER

Analysis of Proposed Contract($25,000 or Greater and Longer than Three Months)

C.D. No.! To. the Mayor Date: i r* AO File No.: 0150-10370-000005-26-1 rAil

ContractTig Department/Bureau' Public Works/Bureau of Sanitation Contact: Joyce Neal Arnaro. (323) 342-1570

Reference: Transmittal from the Board cf Public Worxs dated February 25, 201 e- referred for report on February 26, 2015.O,

Purpose of Contract: To provide specialized ser/ices related to the Stormwater Public Education Program

; Type of Contract: (X) New contract () Amendment Contract Term DatesFive years effective at the dote of execution with two one-year I renewal options for a total of seven years. ____ j

| Contract/Amendment Amount: $3,150,000

Proposed amountj 3,1 oO.OOO + Prior award(s) $ 0 Total $ 3,150,000

Source of funds; Stormwater Pollution Abatement Fund 511 Name of Contractor: S. Grocer Associates

Address: 100 W. Broad, Suite 290, Long Beach, CA 90302■T

8. Ccrt:actor has complies with:a. Equal Empfoymt. Oppfy./Affum. Actionb. Good Faith Effort Outreach**

NoYes N/A* i Yes i No N/A*1. Council has approved the putposs2. Aporooralecf funds are available

barter Ssctiqn 1C22 findings completer.i 4 Pro 'cais oa/e beer, requested

X XX X

__o_Equal Benefits Ordinanced. Contractor Responsibility Ordinancee. Slavery Disclosure Ordinance __f. Bidder Certificator CEC Form 50

‘N/A - not applicable

X XX X iXS Risk Management review completed

5 jvjPr i jiorifi for City Csuracis included J Work'i: ' "............ '

XX X

Contracts over $100,000L. t resides_in_!he Ctly__ 0 % J

COMMENTS

The Board of Public Works (Board), on behalf of the Bureau of Sanitation (Bureau), is requesting authority to execute a personal services contract with S. Groner Associates (Groner) for assistance in implementing a Stormwater Public Education Program as required by the City of Los Angeles’ (City) National Pollutant Discharge Elimination System (NPDES) Permit. The proposed contract will be five years with two one-year extension options for a total of seven years, and a cost ceiling of $3.15 million. In accordance with Los Angeles Administrative Code Section 10.5(b), Council approval is required to execute the proposed contract as the term of the contract exceeds three years.

Background

The City's storm drain system is designed to prevent flooding by collecting stormwater runoff from urbanized areas and conveying it to regional receiving waters such as lakes, rivers, creeks and the ocean through a municipal separate storm sewer system (MS4). The state of California and the Federal Government require municipalities that discharge into receiving waters to obtain an NPDES Permit. These permits are periodically updated with additional requirements for managing and monitoring MS4 discharge. On December 28, 2012, the City was issued an updated NPDES Permitwh’Ch contained continued provisions for a stormwater management program. The stormwater

r\ i /! *i

/ City Administrative Cf!

f-.~ T,4tT

fficerAnalyst j :-5150l28EMMCAO Rev 5/2007 /


CAO Fife No.0150-10370-0000

Page2

management program requirements incfude a public information and participation program (PIPP). The objectives of the PIPP are as follows:

• To measurably increase the knowledge of the target audiences about the MS4, the adverse impacts of stormwater pollution on receiving waters and potential solutions to mitigate the impacts;

• To measurably change the water disposal and stormwater pollution generation behavior of target audiences by developing and encouraging the implementation of appropriate alternatives: and,

• To involve and engage a diversity of socio-economic groups and ethnic communities in Los Angeles County to participate in mitigating the impacts of stormwater pollution.

Historically, the Bureau has used outside vendors to assist with the Los Angeles Stormwater Public Education Program. In April 2001, the Board of Public Works (Board) approved the execution of Contract No. 101488 with Groner for Stormwater and Used Oil Recycling public education programs. In April 2007, upon the expiration of the contract, the Bureau issued a new Request for Proposals (RFP) for outreach services and executed Contract No. 111642 With Groner for Stormwater and Used Oil Recycling public education programs. The most recent contract with Groner expired in May 2012 and the Bureau has issued a Task Order Solicitation (TOS) for outreach services as a stopgap measure using an existing pre-qualified on-cal! contract with Brown & Caldwell. The current TOS will expire on August 18, 2015 and the Bureau is requesting to once again execute a contract with Groner for stormwater outreach services.

Contractor Selection Process

On December 11, 2012, in accordance with Charter Section 1022, this Office determined that the work proposed for contracting can be performed more feasibly by a contractor due to a lack of both City staff and technical expertise required for certain aspects of the program. On July 23, 2012, the Board of Public works authorized the Bureau to distribute an RFP for specialized stormwater public education services. The Bureau received bids from four vendors, two of which were deemed non- responsrve for failure to pass requirements for the Business Inclusion Program. The Bureau evaluated and scored the remaining two responses based on the following criteria:

Percentagei Evaluation Criteria _ __________________________ _... .......■ Track record and/or demonstrated skills and ability to provide the City withMthe scope of services being requested ............ ............ ............... .....................j Proposal’s Innovation________________________ __ ___________ ______; Demonstrated flexibility and leadership skills_____ __________________ __| Industry knowledge and demonstrated creativity and ability to apply that | knowledge to a municipal government or similar environment Proposal's cost and demonstrated ability and commitment to completeprojects within budget __ ___ ___ ________ __ _

'TOTAL..... ................... ..... ........ "*

20%

15%15%30%

-■•-r20%

100%

Based on staffs evaluation, Groner received the highest score with a total of 91 points and on February 26, 2015, the Board approved the Bureau’s recommendation to execute the proposed contract with Groner. Groner has complied with all applicable City contracting procedures, laws, and policies. The City Attorney has reviewed and approved the contract as to form.


CAO File No0150-10370-0000

Page3

Scope of Work

Under the terms of the contract, Groner wfll provide the City with support on all aspects of the Stormwater Public Education Program. Services include but are not limited to the following:

maintenance and expansion of the tos Angeles Stormwater website, blog, quarterly e-newsletter, Facebook page, YouTube channel, and Twitter account;

2. Develop and implement pollutant specific outreach, which includes the following;• Develop a pollutant specific outreach program that focuses on watershed specific

pollutants of concern and target audiences including automotive owners, dog and horse owners, and gardeners;

• Implement a pollutant specific program that focuses on placing outreach materials at the point-of-purchase in retail stores citywide, including but not limited to home improvement centers, garden centers, dog groomers, veterinary offices and feed stores;and,

• Develop and implement a voluntary residential low impact development outreach program.

3. Assist with community and media relations including outreach and community event coordination for stormwater capital improvement projects;

4. Develop and maintain the City’s school education program, provide assistance with the City’s sponsorship of Kids Ocean Day;

5. Conducl business outreach and employee training for the Watershed Protection Division's environmental compliance business inspection program;

6 Assist with NPDES MS4 municipal stormwater permit compliance efforts by contributing to the NPDES Municipal Stormwater Permit Annual Report; and,

7. Provide program management and contract administration including assistance with specialized and technical support services for activities related to the stormwater public education program as directed and as needed.

mass media.marketing1, Provide

Compensation for Services

Pursuant to Article 10 of the proposed contract, the Bureau will issue Task Orders for specific projects as outlined in the scope of work. Depending upon the type of services required, each project will include an estimated number of hours or cost ceiling to complete a job and can be billed on a lump sum basis, a cost reimbursement plus 10 percent profit basis, or an hourly billing rate basis. The City shall designate the payment mechanism in each Task Order to be issued under the contract based on whichever method the Bureau estimates will be most cost effective. Payments made for Task Orders issued under a lump sum payment mechanism shall be made upon the satisfactory completion of the tasks or milestones set forth in the Task Order. For Task orders billed on a cost reimbursement plus profit or hourly billing rate basis, Groner shall submit monthly invoices with supporting document to the City and the City shall remit payment upon review and agreement of the amounts. Under Article 10.1.8 of the proposed contract, the following contractor employee hourly rates include salary, benefits, genera! and administrative overhead and other business expenses incurred by the contractor:


PageCAO Hie No.0150-10370-0000 4

Hourly Billing Rate ($/hr) $189700 .......

! PositionProject DirectorGraphic Designer $154.00

$154.00$154.00

Research DirectorS. Groner Associates Multimedia Programmer II

1 Project Manager ____ __.........| Information Manager ___ _________i Project Coordinator_____ _____ ___Socia! Media Coordinator ___ ___ _Web Programmer______ ________Administrative Manager_______ _______Graphic Designer ______________

j Outreach Specialist ______________

00$131.00$129.00$129.00$129.00$118.00$118.00sioaoo

RECOMMENDATION

That the Council authorize the Board of Public Works, on behalf of the Bureau of Sanitation, to execute the proposed Personal Services Contract with S. Groner Associates to provide assistance in implementing the stormwater public education program for a term of five years with two one-year renewal options for a total of seven years, at a cost not to exceed $3,150,000.


There is no General Fund impact and sufficient funds are available within the Stormwater Pollution Abatement Fund to support the first year costs of the proposed contract. Future year funding will be provided through the City's annual budget process and subject to Mayor and Council approval, The recommendation in this report complies with the City's Financial Policies as ongoing revenue will support ongoing expenditures.

MA S.EMM. 06150128


City of Los AngelesOFFICE OF THE

BOARD OF PUBLIC WORKSBOARD OF PUBLIC WORKS

MEMBERSCALIFORNIA

KEVIN JAMESPRESIDENT

200 NORTH SPRING STREET ROOM 361, CITY HALL

LOS ANGELES, CA 90012 (213) 978-0261

(213) 978-0278 FaxMONICA RODRIGUEZ

VICE-PRESIDENT

MATT SZABOPRESIDENT PRO TEMPORE

JAMES A. GIBSONEXECUTIVE OFFICER

MICHAEL DAVISCOMMISSIONER

http://www.bpw.lacity.orgERIC GARCETTI

MAYORBARBARA ROMERO

COMMISSIONER

February 25, 2015

#1 BOS/BCA

Mayor Eric Garcetti Room No. 305 City HallAttn: Mandy Morales

Subject: AUTHORITY TO AWARD AND EXECUTE A PERSONAL SERVICES CONTRACT WITH S. GRONER ASSOCIATES, INC. FOR SPECIALIZED SERVICES RELATED TO THE STORMWATER PUBLIC EDUCATION PROGRAM

As recommended in the accompanying report of the Directors of the Bureaus of Sanitation and Contract Administration, which this Board has adopted, the Board of Public Works requests approval and forwarding to the City Council for approval and authorization to execute a Personal Services Contract with S. Groner Associates, Inc. to provide specialized services related to the City of Los Angeles Stormwater Public Education Program.

It is further requested, that the Board find MIG, Inc. and O’Rorke, Inc. non-responsive for failing to pass the Business Inclusion Program.

FISCAL IMPACT

Funding in the amount of $3,150,000 will be made available in the Stormwater Pollution Abatement Fund, as follows:

• Fund 511 - Account No. 50LX65 Amount - $50.000Amount -$3,100,000

$3,150,000• Fund 511 - Future FY budgets

Total

Respectfully submitt)

Janjefs A. Gibson, Executive Officer .Board of Public WorksJAG:mp v

AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER


http://www.bpw.lacity.org

DEPARTMENT OF PUBLIC WORKS

BUREAU OF SANITATIONBUREAU OF CONTRACT ADMINISTRATIONJOINT BOARD REPORT NO. 1February 25, 2015

CD: ALL

AUTHORITY TO AWARD AND EXECUTE A PERSONAL SERVICES CONTRACT WITH S. GRONER ASSOCIATES, INC. FOR SPECIALIZED SERVICES RELATED TO THE STORMWATER PUBLIC EDUCATION PROGRAM AND FIND MIG, INC. (MIG) AND O’RORKE, INC. (O’RORKE) NON-RESPONSIVE FOR FAILURE TO PASS THE BUSINESS INCLUSION PROGRAM (BIP)

RECOMMENDATIONS

Authorize the Director of the Bureau of Sanitation (LASAN) to:

Find MIG, Inc. and O’Rorke, Inc. non-responsive for failing to pass the Business Inclusion Program.

1.

Approve and forward this report forthwith, with transmittals, to the Mayor and the City Council (Council) with the request that the Board of Public Works (Board) be authorized to execute a Personal Services Contract with S. Groner Associates, Inc. to provide specialized services related to the City of Los Angeles Stormwater Public Education Program.

2.

Upon the Mayor’s and City Council’s authorization, the President or two (2) members of the Board will execute the contract.

3.

Return the executed contract to LASAN for further processing. Contact the Board Report Section at (213) 485-4246 for pickup.

4.

TRANSMITTALS

Copy of the adopted LASAN and Bureau of Contract Administration Joint Report No. 1, dated July 23, 2012, authorizing the Bureau to distribute a Request for Proposals (RFP) and to negotiate a contract for specialized public education services related to the Stormwater Public Education Program.

1.

2. Copy of the letter from LASAN’s Centralized Contracts Unit (CCU) to MIG, dated May 17, 2013, regarding their BIP evaluation.

3. Copy of the letter from LASAN’s CCU to O’Rorke, dated May 17, 2013, regarding their BIP evaluation.



PAGE 2

Copy of letter dated May 23, 2013 from O’Rourke to LASAN4.

5. Copy of the email dated June 24, 2013 from O’Rourke to LASAN.

6. Copy of the proposed contract between the City of Los Angeles and S. Groner Associates, Inc. to provide specialized services for the City of Los Angeles Stormwater Public Education Program. Originals will be delivered to the Board Office when the Board Report Section at (213) 485-4246 is notified that the contract is ready for execution.

DISCUSSION

BackgroundThe storm drain system in the City of Los Angeles (City) encompasses more than 34,000 catch basins and 1,500 miles of closed pipes and open flood control channels. This system is designed to prevent flooding by collecting stormwater runoff from urbanized areas and conveying it untreated to regional receiving waters, i.e. lakes, rivers, creeks and the ocean.

Stormwater pollution is considered a non-point source of pollution; the pollution comes from numerous sources (e.g. the general public, industrial/commercial, and construction activities) which cumulatively have a negative impact on the quality of water entering our storm drain system. This can negatively affect the quality of the receiving waters (e.g. Los Angeles River, Ballona Creek, Santa Monica and San Pedro Bays).

The City of Los Angeles, Department of Public Works, Bureau of Sanitation, Watershed Protection Division has been engaged in a program to reduce the amount of pollutants entering the City’s storm drain system since 1990. On December 28, 2012, the City was issued a National Pollutant Discharge Elimination System (NPDES) Municipal Stormwater Permit from the California Regional Water Quality Control Board, Los Angeles Region (CRWQCB) to control and reduce pollutants entering the storm drain system. As part of the City’s effort to meet NPDES Permit provisions, the City is required to implement a Stormwater Public Education Program to educate the public about what they can do to prevent pollution and keep local waterways clean. The City’s program uses a variety of different outreach efforts to educate the general public about the impact their individual actions have on the environment.



PAGE 3

Current NPDES Permit requirements as they relate to the public information and participation program include measurably increasing the knowledge of the target audiences about the adverse impact of storm water pollution on receiving waters and measurably changing the waste disposal and stormwater pollution generation behavior of the general public by developing and encouraging the implementation of appropriate alternatives through various public education activities including online media, pollutant specific outreach, school education, business outreach and municipal employee training programs.

Establishing a stormwater public education services contract will enable LASAN to ensure the City’s ongoing compliance with NPDES MS4 Permit requirements.

Scope of WorkLASAN intends to establish a stormwater public education services contract to ensure its compliance with the NPDES MS4 Permit. The services to be provided include, but are not limited to:

The maintenance and expansion of the LA Stormwater’s online social media program including the LA Stormwater website, blog, quarterly e-newsletter, Facebook page, YouTube channel and Twitter account.The creation and development of mass media advertising campaigns and earned media relations.The development and implementation of a pollutant specific program that focuses on watershed-specific pollutants of concern and target audiences.The development and implementation of a voluntary residential low-impact development outreach program.The promotion of Proposition O and grant-funded stormwater capital improvement projects and coordination of community meetings and outreach events.The development and maintenance of a school education program that includes educating elementary, middle and high school students in the Los Angeles area.The development and creation of an online employee stormwater training module.



PAGE 4

Selection ProcessOn July 23, 2012, the Board approved the LASAN and Bureau of Contract Administration, Joint Board Report No. 1, authorizing LASAN to distribute an RFP to provide specialized stormwater public education services (Transmittal No. 1).

On September 26, 2012, in response to the RFP, LASAN received bids from the following four (4) vendors: MIG, O’Rorke, TreePeople and S. Groner Associates. As noted in the RFP, a BIP evaluation was conducted by LASAN’s CCU. LASAN informed MIG and O’Rorke that they would recommend that MIG and O’Rorke, each, be deemed non-responsive for failure to pass the BIP. (Transmittal No. 2 and Transmittal No. 3) Thus, LASAN disqualified each of them from further evaluation.

In response to their evaluation results, O’Rorke filed a protest (Transmittal No. 4) against CCU’s BIP evaluation; whereas MIG did not. Shortly thereafter, however, O’Rorke rescinded their protest (Transmittal No. 5). LASAN also recommends that S. Groner Associates and Tree People, each, be deemed responsive based on their BIP evaluation. As a result of being deemed responsive on the BIP, staff from LASAN, the Public Affairs Office and the Los Angeles County Department of Public Works reviewed, evaluated and rated the technical proposals of S. Groner Associates and TreePeople using the criteria set forth in the RFP and noted below.

Evaluation Criteria PercentageThe Proposer’s proven track record and/or demonstrated skills and ability to successfully provide the City with the scope of services being requested. 20%

Proposal’s Innovation 15%

The Proposer's demonstrated flexibility and leadership skills_______________The Proposer’s state-of-the-art industry knowledge and demonstrated creativity and ability to apply that knowledge to a municipal government or similar environment

15%30%

Proposal’s cost and Proposer’s demonstrated ability and commitment to complete projects within budget._______________________________

20%

TOTAL 100%

The evaluation team reviewed and interviewed both proposing teams, determining scores for each proposer. Each proposer received a score from each evaluator based on their written proposal and oral presentation. The evaluators’ scores were averaged and the evaluation team ranked the proposers as follows:



PAGE 5

Proposer Final Averaged Score Final RankingS. Groner Associates 91 1TreePeople 74 2

S. Groner Associates has demonstrated excellent knowledge and experience in the NPDES MS4 Municipal Stormwater Permit, public outreach, school education, social media and community relations as it relates to stormwater education.

Local Business Preference ProgramCity Ordinance No. 181910 adopted the LBPP. This Program is designed to increase local employment and expenditures in the local private sector. Proposers certified as a Local Business Enterprise (LBE) may receive an increase to their total evaluation score equal to eight percent (8%) of the total evaluation points available. Non-LBE proposers who utilize certified LBE sub-consultants to perform work under the contract, may receive an increase to their evaluation score equal to five percent (5%) of the total evaluation points available.

For this RFP, staff verified that S. Groner Associates is the only certified LBE Proposer and that no other Proposers qualified for a LBPP preference.

LASAN recommends that S. Groner Associates be awarded a contract for the services required by the RFP. Negotiations have been conducted with S. Groner Associates and LASAN now returns to the Board with the recommendation to award and execute the personal services contract (Transmittal No. 6) and forward it to the Mayor and City Council forthwith for approval.

Proposed Term of Agreement and Cost CeilingThe term of the contract shall be for five (5) years from the date of contract execution by the Board with two (2) one-year renewal options. The total estimated contract ceiling for the contract term, including the two renewal options, is $3,150,000.

Business Inclusion ProgramThe Business Inclusion Program will be administered in accordance with Mayor’s Executive Directive 14, which was in effect at the time the RFP was advertised.



PAGE 6

At the time of distribution of the RFP for these services, the City established anticipated participation levels for this contract of 18% MBE, 4% MBE, 25% SBE, 8% EBE and 3% DVBE. S. Groner Associates has pledged participation levels of 18% MBE, 4% WBE, 97% SBE, 97% EBE, 0% DVBE, and 3% QBE.

The Subcontractor information for S. Groner Associates is as follows:

Gender/Ethnicity Codes:AA = African American SAA = Subcontinent Asian American

C = Caucasian M = Male

HA = Hispanic American APA = Asian Pacific American NA = Native American F = Female

MBE/WBE SBE/EBE DVBE /

% of Contract Subcontract Amount

Subcontractor Gender/Ethnicity Amount

QBEHarris & Co. $90,000F/C WBE/SBE/ 4%

EBEAncon Communications dba Burgos Communications

$67,500F/HA MBE/SBE/ 3%EBE

Mark Anthony Printing Services

$337,500M/AA MBE/SBE/ 15%EBE

Malibu Foundation for Environmental Education

$67,500QBE 3%

S. Groner Associates* $1,687,500SBE/EBE 75%Total MBE Participation $405,00018%Total WBE Participation $90,0004%Total QBE Participation $67,5003%Total SBE Participation* $2,182,50097%Total EBE Participation* $2,182,50097%Total DVBE Participation $00%Base Estimated Contract Amount $2,250,000

*S. Groner Associates, Inc., the prime contractor, qualifies as an SBE and an EBE.



PAGE 7

Other City RequirementsS. Groner Associates shall comply with all City requirements including:

Non-discrimination/Equal Employment Practices/Affirmative ActionLiving Wage and Service Contractor Worker Retention OrdinancesAmericans with Disabilities ActInsurance RequirementsChild Support Obligations OrdinanceBusiness Tax Registration CertificateEqual Benefits OrdinanceSlavery Disclosure OrdinanceNon-Collusion AffidavitCity of Los Angeles Contract HistoryLos Angeles Residence InformationFirst Source Hiring OrdinanceMunicipal Lobbying OrdinanceContract Bidder Campaign Contribution and Fundraising Restrictions Iran Contracting Act of 2010

Contractor Responsibility OrdinanceAll contractors participating in this program are subject to compliance with the requirement specified in the City of Los Angeles’ Contractor Responsibility Ordinance #173677, (Article 14, Chapter 1, Division 10, L.A.A.C.). Failure to comply with all requirements specified in the Ordinance will render the proposer’s contract subject to termination pursuant to the conditions expressed therein.

Contractor Performance EvaluationIn accordance with Article 13, Chapter 1, Division 10 of the City of Los Angeles Administrative Code, the appropriate City personnel responsible for the quality control of this Personal Services Contract shall submit Contractor Performance Evaluation Reports to the Bureau of Contract Administration upon completion of the work specified in the terms of this contract.

Notification of Intent to ContractThe required “Notification of Intent to Contract” was filed with the City Administrative Office (CAO) Clearinghouse on February 3, 2011, re-filed on July 11, 2012 and re-filed again on January 24, 2015.



PAGE 8

Charter Section 1022The CAO issued the Charter Section 1022 determination on December 11, 2012 and concluded that there was insufficient number of City staff to perform the work proposed to be contracted.

Contract AdministrationResponsibility for and administration of the contract will be with the Watershed Protection Division, LASAN.

Approved As To FormThe proposed contract has been approved as to form by the Office of the City Attorney.

Headquarters and Work Force InformationThe headquarters address of S. Groner Associates is at 100 W. Broadway Avenue, Suite 290, Long Beach, CA 90802. The contractor has a staff of fourteen (14) employees assigned to this contract, four (4) of whom reside in the City of Los Angeles.

STATUS OF FINANCING

Funding in the amount of $3,150,000 will be made available in the Stormwater Pollution Abatement Fund as shown in the table below:

Fund Account Amount$50,000511 50LX65

$3,100,000511 Future FY budgets$3,150,000Total

This Contract contains a “Financial Liability Clause” which states that “the City’s liability under this contract shall only be to the extent of the present City appropriation to fund the contract. However, if the City shall appropriate funds for any succeeding years, the City’s liability shall be extended to the extent of such appropriation, subject to the terms and conditions of the contract.”



PAGE 9

Respectfully submittedCOMPLIANCE REVIEW PERFORMED AND APPROVED BY:

AENRIQUE 'q LA Samratioi

LDJVAR, Director

wUtttJpQL—-HANNAH CHOI, Program Manager Office of Contract Compliance Bureau of Contract Administration

QHN L. REAMER, JR.^Srector Jureau of Contract Administration

APPROVED AS TO FUNDS:

/ VICTORIA A. SANTIAGO, Director Office of Accounting

Date: Jlj^Prepared by:Joyce Amaro, WPD (323) 342-1570

























Documents

*SPECIAL MEETING -REVISED -ENERGY AND ENVIRONMENT