AGENDA REPORT
City Council
MEETING
DATE:
September 23, 2026
PREPARED
BY:
Phillip Horn, Management
Analyst
DEPARTMENT
DIRECTOR:
Sylvester Mabry Jr.
DEPARTMENT: Public Works CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Authorize Citywide Street Sweeping Services Extension Amendment with SCA of CA, LLC.
RECOMMENDED ACTION:
1. Authorize City Manager, in consultation with City Attorney, to execute the Citywide Street Sweeping Services Amendment #1 in substantial form as contained in Attachment 1 between the City of Encinitas and SCA of CA, LLC. extending the term of the agreement for a one-year period with a not-to-exceed contract amount of $732,236, and authorize City Manager to extend the agreement for two (2) optional one-year periods upon satisfactory performance and mutual agreement, for a total not-to-exceed contract amount of $2,274,633 over the three-year period if all extensions options are exercised (Attachment 1). Total agreement not-to-exceed $4,156,996.
2. Adopt Resolution No. 2026-86, titled, “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget” (Attachment 2) to appropriate $275,000 to the Solid Waste Professional Services Account.
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of the government that will not result in the direct or indirect physical change in the environment.
This item does not relate to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This item relates Focus Area 2: Effective and Reliable City Services, Infrastructure, and Communications.
2026-09-23 Item #10I Page 1 of 9
FISCAL CONSIDERATIONS:
Staff have estimated approximately $65,000 to be expended under the current agreement terms from July to September, and project costs of approximately $557,000 for sweeping costs throughout the remainder of the fiscal year, for an estimated yearly total of $622,000 for street sweeping services. Funding in the amount of $348,000 is included in the current Fiscal Year 2026- 27 operating budget for street sweeping services, leaving a funding gap of approximately $275,000. Staff recommends appropriating $275,000 from the Solid Waste Fund available balance to accommodate the difference in anticipated costs for FY27. If the first one-year extension option is exercised, the annual contract cost will increase to $757,672. If the second one-year extension option is exercised, the annual contract cost will increase to $784,725. These increases are based upon a 3.5 percent increase applied to each optional renewal period. These increases will result in a total contract cost of $2,274,633 over three years.
BACKGROUND:
The Public Works and Parks, Recreation, and Cultural Arts Departments provide street sweeping services for all City-owned and maintained streets and parking lots. The City utilizes a street sweeping service contractor to maintain approximately 9,220 curb miles of streets, 8 curb miles of bike paths, and 24 city-owned parking lots.
Street sweeping is performed by area, with residential areas and bike ways swept monthly, collector streets twice monthly, and major streets and downtown areas swept weekly. Parking lot sweeping is performed on a routine schedule for parks, beaches, and city facility lots.
ANALYSIS:
The current contract for street and parking lot sweeping services with SCA expires on October 6, 2026. This agreement was established through a piggyback arrangement from a competitively bid contract. SCA has provided street and parking lot sweeping services for the City since 2013.
They have exhibited outstanding performance and flexibility in providing these services.
Since the City’s original street-sweeping contract was executed, market conditions have changed significantly. Vendors providing municipal sweeping services now face higher operating costs across several key categories. The prices of specialized sweeping equipment and proprietary parts have increased, as have the costs of maintenance materials. Fuel costs remain volatile and continue to pressure service providers. Insurance premiums, particularly for commercial auto, general liability, and environmental compliance, have risen statewide. Finally, labor costs have increased due to competitive wage requirements for certified heavy-equipment operators. These cumulative market pressures have made it necessary for the vendor to adjust their pricing to maintain safe, reliable, and compliant service levels.
Staff also evaluated recent street sweeping bids, current market conditions, engaged in discussions with surrounding agencies, and the potential of formalizing a new contract. This evaluation determined that a formal bid would likely result in higher service costs than those outlined in SCA’s current proposal. Taken together, these factors demonstrate that the vendor’s proposed pricing aligns with prevailing market rates for municipal street-sweeping services. The increase is consistent with broader industry trends and reflects the cost of maintaining reliable, compliant, and high-quality service under current economic conditions. 2026-09-23 Item #10I Page 2 of 9
If approved, the new contract would begin in October 2026.
ATTACHMENT(S):
1. Citywide Street Sweeping Services Extension Amendment #1 Draft
2. Resolution 2026-86, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget”
2026-09-23 Item #10I Page 3 of 9
AMENDMENT #1 TO THE
GENERAL SERVICES AND MAINTENANCE CONTRACT BETWEEN
THE CITY OF ENCINITAS AND SCA OF CA, LLC.
This Amendment #1 is made and entered into as of the date of execution by the City of Encinitas, a municipal corporation, hereinafter referred to as “City”, and SCA of CA, LLC. a Limited Liability Company, hereinafter referred to as “Contractor”.
RECITALS
A.The City of Encinitas and, Contractor; entered into the General Services and Maintenance Contract (the “Agreement”) for a term that began on October 6, 2020, and that expires on October 6, 2026.
B.The Contractor; formerly known as Cannon Pacific Sweeping, dba Pacific Sweeping, was acquired by Sweeping Corporation of America, LLC on February 23, 2021.
C.The parties wish to amend the terms of the contract to include the addition of three (3) optional one (1) year renewal periods.
D.The parties wish to enact the first of three one (1) year optional renewal periods, extending the term of the Agreement to October 6, 2027.
E. The parties wish to amend the terms of the contract to include the following prevailing wage clause:
Prevailing Wage And Enforcement Compliance
14.1 This is a prevailing wage contract and prevailing wage rates for this locality and project as determined by the Director of the DIR apply, pursuant to labor code section 1770, et. Seq. A copy of the prevailing wage rates shall be posted on the job site by Contractor. A schedule of prevailing wage rates is available for review at City’s offices or may be found on the internet at http://www.dir.ca.gov/Public-Works/Prevailing-Wage.html. Contractor shall be required to pay at least the wage rates set forth in that schedule. Certified Payroll records shall be maintained by Contractor and copies of the certified payroll shall be electronically sent to the DIR and be delivered to City at the end of each month during the entire duration of the project.
Contractor is subject to compliance monitoring and enforcement by the DIR. Subject to exceptions as set forth in Labor Code section 1771.1, Contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined by statute, unless it is currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5.
City may not accept a bid nor any contract or subcontract entered into without proof of Contractor or subcontractor’s current registration to perform public work pursuant to Section 1725.5. For more information, go to http://www.dir.ca.gov/Public-Works/Certified-Payroll-Reporting.html. 2026-09-23 Item #10I Page 4 of 9
Contractor shall be aware of the requirements of Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Since this Project involves an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall obtain a copy of the prevailing rates of per diem wages at the commencement of this Agreement from the website of the Division of Labor Statistics and Research of the DIR located at www.dir.ca.gov/dlsr/. In the alternative, Contractor may view a copy of the prevailing rates of per diem wages at City’s offices. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to perform work on the Project available to interested parties upon request and shall post copies at Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify and hold City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or allege failure to comply with the Prevailing Wage Laws.
14.2 Contractor and each subcontractor shall forfeit as a penalty to City not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the stipulated prevailing wage rate for any work done by him, or by any subcontractor under him, in violation of the provisions of the Labor Code. The difference between such stipulated prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the stipulated prevailing wage rate shall be paid to each worker by Contractor. Contractor shall post, at appropriate conspicuous points on the Project site, a schedule showing all determined general prevailing wage rates and all authorized deductions, F. The parties wish to amend Attachment B Payment for Services to increase the not-toexceed amount of the agreement from $1,882,363 by $732,236, for a total not-to-exceed amount of $2,614,599, over the life of the contract.
NOW, THEREFORE, in consideration of the mutual benefits to be derived thereupon, the parties agree to amend the Agreement as follows:
A. The Agreement between the City of Encinitas and Contractor is extended for one (1) additional one-year term and will now expire on October 6, 2027.
B. Increase of $732,236 to the existing contract amount of $1,882,363, for a total not-toexceed amount of $2,614,599.
C. Hereby amended to Include Prevailing Wage and Enforcement Compliance as stated above.
Except as otherwise provided above, all the provisions of the Agreement between the City of Encinitas and Contractor effective on October 6, 2020, shall remain in full force and effect.
EXECUTION OF AGREEMENT
The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 2026-09-23 Item #10I Page 5 of 9
SCA of CA, LLC. City of Encinitas
By___________________________________ By_______________________________ Brad Becker Date Jennifer Campbell Date
Regional Vice President, West City Manager
SCA of CA, LLC.
By _____________________________________
Tyler Haskell Date
Regional Manager
APPROVED AS TO FORM:
_________________________________
Ajit Thind, City Attorney Date
NOTE: Pursuant to California Corporations Code Section 313, if Contractor is a corporation or nonprofit organization, this Contract must be signed by (a) the Chairperson of the Board, President or Vice-President and (b) the Secretary any Assistant Secretary, the Chief Financial Officer or any Assistant Treasurer.
2026-09-23 Item #10I Page 6 of 9
RESOLUTION 2026-86
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, AMENDING THE FISCAL YEAR 2026-27 BUDGET
WHEREAS, on June 17, 2026, the City Council of the City of Encinitas adopted Resolution Number 2026-048 adopting the budget for Fiscal Year 2026-27; and WHEREAS, a review has determined that changes in anticipated revenues and/or expenditures of the City of Encinitas necessitates amendments to the appropriations for Fiscal Year 2026-27; and
WHEREAS, budgeted expenditures do not exceed anticipated revenue and available fund balance; and
WHEREAS, the City Council has reviewed the proposed Fiscal Year 2026-27 budget amendments.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Encinitas, California, that the budget amendments for Fiscal Year 2026-27 as contained in Exhibit A to this resolution are hereby adopted.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.
PASSED, APPROVED AND ADOPTED this 23rd day of September, 2026 by the City Council of the City of Encinitas, State of California.
______________________________
Bruce Ehlers, Mayor
ATTEST:
______________________________
Pete Weichers, City Clerk
APPROVED AS TO FORM:
_____________________________
Ajit Thind, City Attorney
2026-09-23 Item #10I Page 7 of 9
CERTIFICATION: I, Pete Weichers, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 23rd day of September, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Pete Weichers, City Clerk
2026-09-23 Item #10I Page 8 of 9
Exhibit A
Resolution 2026-86
Proposed Budget Increase or (Decrease)
# Fund-Name Org Obj Comments Revenue Expenditures Transfer In Transfer Out A. Staff Recommendation: Transfer budget to Solid Waste Professional Services
1. 214-SOLID WASTE RECYCLING 21471621 431.1 Street Sweeping 275,000.00 Total - 275,000.00 - -
2026-09-23 Item #10I Page 9 of 9