City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: May 7, 2024
ITEM NO: 8.5
SUBJECT: Approve Resolution No. 2024-25, Rejecting all Bids Received on March 1, 2024, for the Street Sweeping Services Request for Proposals, and Directing Staff to Conduct Additional Evaluation for the City to Provide Street Sweeping Services Throughout the City Using Its Own Resources.
RECOMMENDATION
Motion to Approve Resolution No. 2024-25, rejecting all bids received on March 1, 2024, for the Street Sweeping Services Request for Proposals, and directing staff to conduct additional evaluation for the City to provide street sweeping services throughout the City using its own resources.
BACKGROUND
The City contracts commercial and residential street sweeping services to Sweeping Corp of America from Milpitas, CA, through June 30, 2028. The contract does not require the contractor to pay prevailing wages. Part of the sweeping services includes Highway 33, and the California Department of Transportation (Caltrans) provides reimbursement funds to the City to pay for the sweeping of the highway in which Caltrans is the responsible jurisdiction. The City met with Caltrans for the purpose of increasing the reimbursement amount due to increased costs for sweeping services. Caltrans noted that the Department of Industrial Relations (DIR) requires the City to pay prevailing wages to the sweeping contractor. Because of this, the City must comply with DIR wage requirements to receive Caltrans grant funds.
City Staff researched Caltrans’ claim and found that a DIR determination was established in October 2021, (Attachment B) that street sweeping maintenance services constitute public work and are therefore subject to prevailing wage requirements. This not only confirmed that prevailing wages were a requirement to receive the Caltrans funding but is with respect to contractual obligations per DIR statute.
The City Attorney’s Office reviewed DIR’s Determination, must the City of Patterson follow the 2021 DIR determination and include a prevailing wage provision in the existing and future street sweeping services contract, and concluded that, “adding a prevailing wage provision to the City of Patterson’s street sweeping contract extension is the option with the least legal risk since DIR would likely similarly determine that the City of Patterson’s street sweeping services are subject to the prevailing wage requirements.”
The status quo subjected the City to legal risk, the City Manager directed Staff to solicit Request for Proposals for Street Sweeping Services. The Request for Proposal document was reviewed by the City Attorney’s Office (Provided in Attachment D), issued in January 2024, and due in March 1, 2024.
ANALYSIS
The City received 2 proposals (Attachment E). The first was from the City’s existing street sweeping contractor, Sweeping Corp of America, and the second from the City’s Public Works Department. The proposal requested costs for various service levels A, B, and C, for the purpose of comparing diminished service levels and the cost savings associated with them.
The following comparison analyzes the proposals according to the current level of service the City enjoys, which are called Service Level A. Service Level A provides one time per week residential and parking lot sweeping and daily commercial and downtown sweeping:
Sweeping Corp of America Proposal
Description Units Quantity Unit Price Extended
Price
One time per week residential
street sweeping (Section 1,
Service Level A)
Curb Mile 12,000 $67.00/per mi. $804,000/per
yr.
Daily commercial / downtown
street sweeping (Section 2,
Service Level A)
Curb Mile 655 $66.00/per mi. $43,230/per yr.
One time per week parking lot
sweeping (Section 3, Service
Level A)
Each (All
11 Lots)
52 $67.00/ea. $38,324/per yr.
Total Extended Cost Per
Year
$ 885,554
City of Patterson Proposal
Description Units Quantity Unit Price Extended
Price
One time per week residential Curb Mile 12,000 $33.59/per mi. $403,089/per street sweeping (Section 1,
Service Level A)
yr.
Daily commercial / downtown
street sweeping (Section 2,
Service Level A)
Curb Mile 655 $33.59/per mi. $22,002/per yr.
One time per week parking lot
sweeping (Section 3, Service
Level A)
Each (All
11 Lots)
52 $33.59/ea. $1,747/per yr.
Total Extended Cost Per
Year
$ 426,838
The RFP results were reviewed by the City Attorney’s Office. The City Attorney noted that the City does not need to propose to provide service as long as the City can provide services more economically with its own force. Therefore, staff recommend that the City Council reject both proposals received and authorize staff to conduct further evaluation for the City to provide Citywide street sweeping services with its own force. Staff evaluation of costs associated with labor and materials and the adjustments to the budget would require the item to be brought to Council for consideration at a later date.
It is important to note that due to recent changes in California Air Resources Board (CARB) regulations that went into effect on January 1, 2024, the City will be required to purchase electric equipment, which will have an impact on street sweeping costs and delivery. In the meantime, the City will continue to contract sweeping services with Sweeping Corp of America.
FISCAL IMPACT
There is no fiscal impact at this time.