Agenda Report
Fullerton City Council
MEETING DATE: august 15, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: raul godinez, interim public works director PREPARED BY: Stephen Bise, City ENGINEER / ASSISTANT to PUBLIC WORKS DIRECTOR Jerome Joaquin, ADMINISTRATIVE Manager
SUBJECT: CONTRACT WITH SWEEPING CORP OF AMERICA FOR STREET SWEEPING AMENDMENT NUMBER ONE
SUMMARY
Staff requests City Council approve contract with Sweeping Corp of America (SCA) for street sweeping services Amendment Number One (Attachment 1) to increase the contract by $50,000 due to inflationary trends based on the Consumer Price Index (CPI).
RECOMMENDATION
Approve Amendment Number One to Maintenance Services Agreement with SCA to continue street sweeping services and authorize City Manager, or designee, to execute and administer the amendment, in a form approved by the City Attorney.
Approve $50,000 budget appropriation from Sanitation Fund Balance (Fund 23) to Street Cleaning Program (Program 2421).
Authorize City Manager, or designee, to approve future contract increases in an amount not to exceed the Consumer Prince Index for All Urban Consumers (CPI-U) for Los Angeles-Long Beach-Anaheim area.
Authorize City Manager to extend the term of the Maintenance Services Agreement with SCA for up to two additional one-year periods per Section 4.1.
CITY MANAGER REMARKS
The City Manager requests approval of contract amendment with SCA to continue street sweeping services.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year (FY) 2023-24 Adopted Budget did not include the proposed $50,000 contract increase based on CPI. The Street Cleaning Program has a $750,000 annual budget for the street sweeping contract, provided from the Sanitation Fund. Staff recommends a $50,000 budget transfer from the Sanitation Fund Balance (Fund 23) to the Street Cleaning Program. The new contract amount for SCA street sweeping services would total $800,000 for FY 2023-24 if approved. Staff would program future annual contract increases into future year budget cycles.
DISCUSSION
City Council awarded a $750,000 Not-to-Exceed contract to Sweeping Corp of America on June 18, 2019, previously named as CleanStreet, for street sweeping services which included a $732,890 base fee for regular street sweeping services. The remainder of the contract amount would pay for additional sweeping services. The agreement has a five-year term, with an option to extend for two additional one-year periods. The City is in the fifth year of the agreement.
The City received a 5.8% CPI increase request from Sweeping Corp of America on June 23, 2023. SCA has not requested a CPI increase since commencement of the agreement.
Contractor may increase its fees, per the conditions stated in the agreement, no more than once a year for the remaining term of this agreement provided that no increase shall exceed the CPI for all Urban Consumers for the Los Angeles-Long Beach-Anaheim area. Staff reviewed three-year data (FY 2020 to FY 2023) provided by the U.S. Bureau of Labor Statistics which shows a cumulative 13.99% CPI, resulting in a 4.66%. annual average increase. The 5.8% SCA request equates to a 1.45% annual average increase of over the past four years. Staff determined that the SCA request falls within the CPI for all Urban Consumers and finds the 5.8% increase request appropriate and well justified.
Staff also requests City Council authorize the City Manager to increase the contract amount for the subsequent two one-year periods if the requests do not exceed the CPI which increases the Not-to-Exceed contract amount within the CPI for All Urban Consumers.
SCA has performed satisfactorily since the City privatized the Street Sweeping program in June 2019 and meets the City’s needs to provide weekly citywide sweeping services. Staff recommends approving the SCA 5.8% increase request and approve future increase requests if the increase does not exceed the Consumer Price Index.
Attachments:
Attachment 1 – Amendment Number 1
Attachment 2 – Maintenance Services Agreement
cc: City Manager Eric J. Levitt
Street Sweeping Contract Amendment No. 1
August 15, 2023 - Page 2