City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0389
REQUEST FOR CITY COUNCIL ACTION
DATE: 05/18/2022
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Consent of Asset Sale of Contract Sweeping Services, LLC to SCA of CA, LLC (dba Street Sweeping Corporation of America).
EXECUTIVE SUMMARY:
The City’s current street sweeping contractor, Contract Sweeping Services, LLC was acquired by SCA of CA, LLC. Staff recommends approval of the consent of Asset Sale of Contract Sweeping Services, LLC to SCA of CA, LLC, and issuance of the multi-year contract to SCA of CA, LLC for City-wide street sweeping services of streets, alleys, and city-owned parking lots within the City.
RECOMMENDED ACTION:
That the City Council:
a. Approve the Consent of Asset Sale of Contract Sweeping Services, LLC to SCA of CA, LLC (dba Street Sweeping Corporation of America).
b. Authorize the Purchasing Manager to issue a purchase order to SCA of CA, LLC (dba Street Sweeping Corporation of America) for $664,826 per year for the initial contract term ending June 30, 2024, with one optional three-year renewal.
BACKGROUND & HISTORY:
On April 26, 2021, the City issued Notice Inviting Bids (NIB) 21-069RH for City-Wide Street Sweeping Services to prospective firms through the City’s PlanetBids portal. The NIB was advertised pursuant to Corona Municipal Code (CMC) Section 3.08.110 non-public projects formal bidding procedure requirements.
On June 16, 2021, the City Council awarded Contract Sweeping Services, LLC, the lowest responsive bidder, a multi-year contract (effective July 1, 2021) in the amount of $664,826 per fiscal year for City of Corona Page 1 of 3 Printed on 5/11/2022
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File #: 22-0389
bidder, a multi-year contract (effective July 1, 2021) in the amount of $664,826 per fiscal year for the initial contract term ending June 30, 2024, with one optional three-year renewal.
On March 3, 2022, Contract Sweeping Services, LLC informed the City of the asset sale of Contract Sweeping Services, LLC to SCA of CA, LLC (dba Street Sweeping Corporation of America) and formally requested the City’s consent to assign its Citywide street sweeping services contract to the Street Sweeping Corporation of America.
ANALYSIS:
Since the award of the Citywide street sweeping contract, the Contract Sweeping Services, LLC team has performed exceptionally well and has met or exceeded all the current contractual obligations. As part of the current Citywide street sweeping program, City staff conducts periodic operational meetings with the contractor, and since the notification of the asset sale, these meetings have focused on any operational changes to the current resources deployed in the City. Staff has been informed by SCA of CA, LLC that there will be no changes to the current resources deployed to the City. SCA of CA, LLC has informed the City that they have also performed asset purchases of several other street sweeping contractors in the region, which will help in providing improved redundancy to the current resources deployed in the City.
Staff recommends approval of the Consent of Asset Sale of Contract Sweeping Services, LLC to SCA of CA, LLC (dba Street Sweeping Corporation of America), as well as the continued authorization to issue a purchase order for $664,826 per year for the initial contract term ending June 30, 2024, with one optional three-year renewal. All other terms and conditions of the contract are proposed to remain the same. Additionally, the City Council provided staff with the authority to negotiate and execute non-substantive extensions, change orders, and amendments up to 10 percent of the contract value or $66,483 in accordance with Corona Municipal Code Section 3.08.060(J). If the sale is approved by Council, this authority will transfer to SCA of CA, LLC (dba Street Sweeping Corporation of America).
FINANCIAL IMPACT:
Funding for the recommended action is available in the Fiscal Year 2022 Public Works’ Operating Budget and has been included in the Proposed Fiscal Year 2023 Public Works’ Operating Budget.
Funding in future fiscal years will be recommended through the budget process.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is therefore exempt from CEQA. This action involves the approval of a consent of asset sale of the City’s existing contractor for street sweeping services. Therefore, no environmental analysis is required.
PREPARED BY: EUGENE SILVAS, CONSTRUCTION SUPERINTENDENT City of Corona Page 2 of 3 Printed on 5/11/2022
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File #: 22-0389
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
Attachments:
1. Exhibit 1 - Contract Sweeping Services, LLC Letter Notification of Consent to Assignment
2. Exhibit 2 - Bill of Sale and Assignment Agreement
3. Exhibit 3 - City of Corona Consent to Assignment and Assumption of Street Sweeping Agreement
4. Exhibit 4 - Current Maintenance/General Services Agreement (MGSA) with Contract Sweeping Services
City of Corona Page 3 of 3 Printed on 5/11/2022
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