Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: ACTING DIRECTOR OF PUBLIC WORKS
DATE: JUNE 4, 2024
AGENDA REPORT
SUBJECT: AMENDMENT NO. 2 TO MAINTENANCE SERVICES AGREEMENT WITH SCA
OF CA, LLC, FOR STREET SWEEPING SERVICES
FISCAL
IMPACT: EXPENSE: $175,300 ANNUAL CONTRACT AMOUNT
BUDGET: $175,300 FISCAL YEAR 2024-25 PROPOSED OPERATING (374386-6290)
SUMMARY:
On March 19, 2019, the City Council awarded a Maintenance Services Agreement to SCA of CA, LLC (SCA), formerly R.F. Dickson Company, to provide cityvJide street sweeping se vices for an annual amount of $144,581.69 and a cumulative not -to -exceed amount of $722,908.45 over a five (5) -year contract term. On June 6, 2023, the City Council approved Amendment No. 1 to the agreement to add sweeping services for the streets located in Hamer Island which increased the annual contract amount to $168,882.53 for a revised cumulative not -to -exceed contract amount of $771,510.13.
Staff is recommending an amendment to increase the annual contract amount to $175,300 to account for a rate increase of 3.8 percent and a contract term extension for two additional years.
The current contract is set to expire on June 30, 2024. The recommended actions will allow the City to have sufficient contractual authority for the remainder of the contract term. The proposed contract costs for street sweeping services with SCA are included in the proposed FY 2024-25 Operating Budget.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 2 to the Maintenance Services Agreement with SCA for street sweeping services, increasing the annual contract amount to $175,300 and extending the contract term for two additional years for a revised cumulative contract amount of $1,122,110.13 for the entire seven-year contract term; and
2. Authorize the City Administrator to approve contract change orders up to 10% of the revised cumulative seven-year contract amount; and
1.d.
June 4, 2024
City Council Agenda
June 4, 2024
3. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
DISCUSSION:
The Public Works Department is responsible for maintaining cleanliness throughout various city - owned public places, including sweeping over 8,772 curb miles of streets annually. Street sweeping is a key maintenance task that includes removing leaves, trash, and particulate debris such as metal particles from street surfaces and gutters, preventing these materials from entering our storm drain system, as required by State and Federal laws.
On March 19, 2019, the City Council awarded a Maintenance Services Agreement to SCA of CA, LLC (SCA), formerly R.F. Dickson Company, to provide citywide street sweeping services for an annual amount of $144,581.69 and a cumulative not -to -exceed amount of $722,908.45 over a five (5) -year contract term. On June 6, 2023, the City Council approved Amendment No. 1 to the agreement to add sweeping services for the streets located in Hamer Island which increased the annual contract amount to $168,882.53 for a revised cumulative not -to -exceed contract amount of $771,510.13.
The current contract term is set to expire on June 30, 2024. It is recommended that the City Council approve extending the contract term an additional two years, through June 30, 2026.
Based on contract performance and the rising costs of providing services, Staff recommends approving a 3.8 percent increase for the remainder of the contract term. The Consumer Price Index (CPI) from the start of the contract through December 2023, the latest date for which data is available, is approximately 22 percent. Given the CPI increase, a 3.8 percent increase appears reasonable. Staff recommends amending the contract to add funds to accommodate the rate increase and additional years of service. The recommended actions will allow the City to have sufficient contractual authority for expenditures that will be incurred in the remainder of the contract.
FISCAL IMPACT:
The recommended actions will approve Amendment No. 2 to the Maintenance Services Agreement with SCA, increasing the annual contract amount to $175,300, for a revised cumulative not -to -exceed contract amount of $1,122,110.13. Future service costs are included in the FY 2024-25 Operating Budget. As such, sufficient funds exist for the recommended actions.
City Council Agenda
June 4, 2024
Prepared by:
Samantha Byfield
Public Works Manager
Reviewed and approved:
Chris Tanio
Acting Director of Public Works
Attachment:
Amendment No. 2 — SCA of CA
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damien-R--Arru a
City Administrator