CITY OF POMONA
COUNCIL REPORT
November 20, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted by: Kirk Pelser, Economic Development Director SUBJECT: ADOPT A RESOLUTION TO AMEND THE FY 2023-24 VPD BUDGET BY APPROPRIATING $76,800 OF THE FUND RESERVES TO THE “CONTRACT SWEEPING” LINE ITEM BUDGET ACCOUNT NUMBER 230-9200-52934-00000 AND AWARD A THREE YEAR CONTRACT FOR SWEEPING SERVICES ______________________________________________________________________________ RECOMMENDATION:
It is recommended that the City Council approve the following actions:
Adopt the following resolution (Attachment 1):
RESOLUTION NO. 2023-226 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA TO AMEND THE FY 2023-24 VPD BUDGET BY APPROPRIATING $76,800 OF THE FUND RESERVES TO THE “CONTRACT SWEEPING” LINE ITEM BUDGET ACCOUNT NUMBER 230-9200-52934-00000 TO COVER THE ADDITIONAL COST OF SERVICES Award of a three (3) year Vehicle Parking District (VPD) parking lot sweeping contract with two (2) optional annual adjustable renewals not to exceed the Consumer Price Index (CPI) for each of those specific years to the Downtown Pomona Owners Association (DPOA) for an annual cost of $118,800 for a three (3) year total of $356,400.
3. Authorize the City Manager to execute the agreement on behalf of the City and any subsequent documents or amendments subject to approval by the City Attorney.
EXECUTIVE SUMMARY:
The previous VPD parking lot sweeping contract has expired. To continue on-going VPD parking lot sweeping services, a three-year bid with two optional annual renewals Request for Proposal (RFP) was advertised on Planet Bids. Two vendors responded to the RFP. The lowest responsible bid was received from the DPOA for a three-year total of $356,400 equal to an annual amount of $118,800. A second bid was received from Green Earth Environmental Cleaning Solutions for a three total of $424,800 equal to an annual amount of $141,600. Due the State’s new mandatory recycling law (SB 1383: Food Waste Reduction) the cost of trash disposal has significantly increased. This was an unforeseen occurrence that could not be anticipated at the time the current VPD contract sweeping budget of $42,000 was approved. The current annual VPD budget for that line item was calculated based on the previous year’s contract amounts. Therefore, a budget amendment to add $76,800 a to the VPD’s FY 2023-24 Contract Sweeping line item budget is required in order to pay for the new contract amount.
FISCAL IMPACT:
The current VPD FY 2023-24 contract sweeping line item budget (Account 230-9200-52934-00000) has insufficient funds to pay for the proposed new annual total of $118,800, a three-year total of $356,400. A budget amendment is required to add $76,800 to the current FY budget to address the cost increase. Funds are available in the VPD Fund Reserves for the budget amendment.
PUBLIC NOTICING REQUIREMENTS:
In accordance with Section 2-993.1(4)a of the City’s Purchasing Ordinance, a public notice inviting bids was posted on the City’s website on August 30, 2023 and bids were opened on September 20, 2023.
PREVIOUS COMMISSION ACTION:
On October 12, 2023, the Vehicle Parking District Board of Parking Commissioners voted to recommend to the City Council the award of the parking lot sweeping contract to the Downtown Pomona Owners Association and approval of a budget amendment to cover the increase in costs for the service.
In June of 2018, the City awarded a three-year VPD parking lot sweeping contract with two annual extensions to the DPOA. In 2021 and 2022 the extensions were exercised with an annual contract of $40,000.
BACKGROUND AND DISCUSSION:
In accordance with Section 2-993.1 (4) of the City’s Purchasing ordinance, a public notice inviting bids was posted on Planet Bids on August 30, 2023 IFB No. 2023-44. The bid was sent to 64 vendors registered in Planet Bids, of which fifteen downloaded the bid, resulting in 2 submissions. Both bids were reviewed and it was determined that DPOA was the lowest bidder.
The DPOA submitted the lowest responsible bid in the annual amount of $118,800 per year for three years. The three-year total is $356,400. Green Earth Environmental Cleaning Solutions submitted a bid in the annual amount of $141,600 for a three-year total of $424,800. The RFP also incorporated two optional annual renewals for a possible maximum term of five years. Each of the two year extension costs cannot exceed the Consumer Price Index for that service year (Original annual amount + CPI).
Due to the recent implementation of mandatory recycling under Senate Bill 1383, the cost of disposal has increased. This process also requires additional labor to carefully separate different refuge materials before they are deposited into separate bins, which adds to the increase in cost. The previously VPD FY 2023-24 Contract Sweeping line item budget did not foresee this drastic increase in cost. The current budget amount for parking lot sweeping is $42,000. This is insufficient to pay the annual bid amount of $118,800, which is an approximate cost increase of $76,800 over the current annual budgeted amount. A budget amendment is required to add $76,800 to the FY 2023-24 VPD Contract Sweeping line item budget. The VPD can pay for the additional cost from its Fund Reserves.
Prepared by:
_____________________________
Joaquin Wong
Senior Project Manager
ATTACHMENTS:
Attachment No. 1 – Resolution No. 2023-226
Resolution to Amendment to the VPD FY 2023-24 Budget and Award of a Vehicle Parking District Parking Lot Sweeping Contract November 20, 2023