CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of the City of Commerce Approving a Second Amendment the Nationwide Environmental Services Catch Basin Maintenance Agreement Meeting Date: February 28, 2023
RECOMMENDATION:
The City Council will consider the adoption of a Resolution approving a Second Amendment to the Agreement with Nationwide Environmental Services, a Division of Joe’s Sweeping, Inc. (NES) for catch basin maintenance services.
ANALYSIS/BACKGROUND:
The City of Commerce entered into a five-year agreement with Nationwide on October 1, 2014 which was subsequently extended and due to expire on October 1, 2024, for catch basin maintenance services. The agreements allow the contractor to request a rate increase annually per the Consumer Price Index (CPI) during the budget preparation process.
On January 16, 2018, City Council approved a rate increase for catch basin maintenance services from $17.00 per catch basin to $29.00 per catch basin, not including any CPI increases effective immediately. Additionally, Council approved changes to the agreement language summarize related to the termination provision.
NES submitted a letter to the City on February 8, 2023, requesting for City Council to consider a Second Amendment to their existing agreement for catch basin maintenance services. City staff requests that the City Council approve the following proposals from NES regarding their catch basin agreement:
An increase in the catch basin rate to $38.88 per catch basin based on increased operating expenses such as insurance premiums, vehicle/equipment parts, and other overhead costs.
A seven (7) year extension to its Agreement, beginning on October 1, 2024 and maintain Section 2, Subsection B, which consists of a five (5) year option to extend upon the mutual agreement of the parties.
Beginning July 1, 2024, and each subsequent July 1st thereafter, the compensation paid to the Contractor shall be increased automatically according to the annual Consumer Price Index (CPI) based on the January index for the services provided in this agreement.
ALTERNATIVES:
Approve recommendation.
Disapprove recommendation.
Provide further direction to staff.
FISCAL IMPACT:
Although there is no fiscal impact with this specific action, the annual contractual cost will need to be included in the City’s annual operating budget for the term of the agreement. It is important to note, although not a fixed amount and will vary from year to year, funds from the Safe, Clean Water Program (Measure W) help offset General Fund amounts for street sweeping services.
RELATIONSHIP TO STRATEGIC GOALS:
This item is related to a specific 2016 Strategic Goal to “improve and maintain infrastructure and beautify our community.” Respectfully submitted by: Edgar P. Cisneros, City Manager Prepared by: Gisselle S. Delgado
Approved as to form by: Noel Tapia, City Attorney
ATTACHMENTS:
Resolution
Agreement (2014)
1st Amendment to Agreement for Catch Basin Maintenance Services 2nd Amendment to Agreement for Catch Basin Maintenance Services 1