City Council Memorandum
TO
: HONORABLE MAYOR AND CITY COUNCIL DATE: MAY 7, 2024 FROM: FINANCE DEPARTMENT WARDS: ALL
SUBJ
ECT: SECOND AMENDMENT TO THE SERVICES AGREEMENT FOR CITYWIDE CAR
WASH SERVICES WITH WA SH MASTER LLC OF BEAUMONT, CALIFORNIA TO INCREASE ANNUAL CONTRACT AMOUNT BY $80,564.28 FOR A REVISED TOTAL ANNUAL CONTRACT AMOUNT OF $172,664.28, WITH A 15% CHANGE ORDER AUTHORITY IN THE AMOUNT OF $25,899.64, FOR A TOTAL CONTRACT NOT TO EXCEED AMOUNT OF $198,563.92
ISSUE:
Approve a Second Amendment to t he Services Agreement for the Citywide Ca r Wash Services
with Wash Master LLC of Beaumont, California to increase the annual contract amount by $80,564.28 for a total revised annual contract amount of $172,664.28, with a 15% change order authority for a total Not to Exceed annual contract cost of $198,563.92.
RECOMMENDATIONS:
That the City Council:
1. Approve a Second Amendment to the Services Agreement for Citywide car wash services with Wash Master LLC of Beaumont, California to increase the annual contract amount by $80,564.28 for a contract amount of $172,664.28;
2. Approve 15% change order authority in the amount of $25,899.64 for a total annual contract not to exceed $198,563.92;
3. Authorize the City Manager, or his designee, to exec ute the Second Amendment with Wash Master LLC, including making minor and non-substantive changes.
BOARD RECOMMENDATION:
On April 22, 2024, the B oard of Public Ut ilities (RPU) voted 6 to 1 to recommend th at the City Council approve the Second Amendment to the Services Agre ement for the Citywide Car Wash Services with Wash Master LLC of Beaumont, California to increase the annual contract amount by $80,564.28 for a total revised annual contract amount of $172,664.28, with a 15% change order authority for a total Not to Exceed annual contract cost of $198,563.92.
BACKGROUND:
The purchasing department received Bid 7793 for ci tywide vehicle wash s ervices on May 13,
2021. It was awarded to the lowest responsive bidder, Titan Detail LLC, which entered into a one- Date: 5-7-24
Item No.: 29REVISED
Wash Master LLC 2nd Amendment ● Page 2
year agreement on August 9, 2021.
During the first year of the vendor's contract, Staff reported that Titan Detail LLC was failing to meet perf ormance standards and could not keep up with the required cleaning schedule due to unavoidable and irreconcilable obstacles. Therefore, the City did not renew the agreement upon expiration, and the second lowest responsive bidder from the original procurement was offered a contract to continue the services, given that Bid 7793 was less than two years from the original bid as allowed in the City's procurement policies.
On February 21, 2023, the City of Riverside City Council approv ed the agreement with Wash Master LLC of Beaumont, Califor nia, based on the results of Bid 7793, which was released in April of 2021 for Citywide Car Wash services for the RPU Electric Division and Parks and Recreation Department. The combi ned department and division Bid is an excellent strategy to receive volume pricing, in which an item’s pr ice per unit decreases as the purchase quantity increases. It also provides a consistent wash schedule on location to maintain a clean fleet of vehicles.
The Special Transportation Division of the City of Riverside’s Parks, Recreation, and Community Services Department currently operates a fleet of paratransit and adm inistrative vehicles, including cutaway buses, vans, and sedans. RPU Electric Division operates various vehicles, ranging from specialized large service vehicles to maintain the electric distribution and transmission systems to SUVs, vans, and sedans. Providing onsite vehicle wash services reduces staff time and costs to ta ke vehicles to offsite wash ar eas and reduces staff downtime.
The terms of the agreement were approved for one (1) year with no more than three (3) additional one-year terms at the annual cost of Ninety-Two Thousand One Hundred Dollars ($92,100).
DISCUSSION:
Recognizing Wash Master LLC's efficiency and cost-effectiveness, the RPU Water Division requested to transfer its vehicl e washing operations to Wash Master LLC along with the RPU Electric Division and the Parks, Recreation, and Community Services Department. This decision, which added 84 vehicles to the contract, will save time and costs and allow staff to spend more time in the field. However, th is transition has led to a contract price increase of approximately $80,000, with some of the increas e due to a 3% overall price in crease from Wash Master LLC and a minor price increase due to an increase in wash frequency for some vehicles. The 3% price increase by Wash Master LLC for their second- year optional extensi on is below the 4.3% Consumer Price Index, which is used to gauge price fairness and rebidding options. The total contract of $172,664.28 cost split is approximately 65% for Public Utilities vehicles and 35% for Park, Recreation, and Community Services Department vehicles, which will be allocated through each Department’s budgets.
To anticipate and be able to manage any additional increases in the coming year, a 15% Change Order Authority on the increased annual contract cost would allow the City to avoid any unanticipated escalations of vehicle wash needs due to growing use.
Purchasing Resolution No. 24101, Section 1104 (c ) states, “Unless otherwise specifically authorized by the Awarding Entity , Change Orders which cumulative ly exceed the following will require Awarding Entity approval…. (c) 10% of the original cont ract price for Contracts and/or Purchase Orders previously approved by the Awarding Entity and the total Change Order amount will not exceed $150,000.”
The Purchasing Manager concurs that the recommended actions are compliant with Purchasing Resolution No. 24101, Section 1104 (c).
Wash Master LLC 2nd Amendment ● Page 3
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 – High Performing Government and Goal 5.2 – Utilize technology, data, and process impr ovement strategies to increas e efficiencies, guide decision making, and ensure services are accessible and di stributed equitably throughout all geographic areas of the City. This item aligns with each of the five Cross-Cutting Threads as follows:
1. Community Trust – The increase to the annual cost of the Services Agreement will allow Riverside Public Utilities and Parks and Recreation to continue to efficiently provide service to the public with a professional, clean fl eet. Regular vehicle cleanings will improve community perception of City of Riverside employees, as well as provide safer, cleaner vehicles for public transportation.
2. Equity – The increase to the annual cost of the Services Ag reement will allow Riverside Public Utilities and Parks and Recreation to continue providing professional services to the public.
3. Fiscal Responsibility – The increase to the annual cost of the Services Agreement will allow Riverside Public Ut ilities and Parks and Recreation to utilize car washing during business hours, allowing City staff to continue their daily tasks uninterrupted. This will cut additional costs by avoiding the need for City staff to be responsible for washing their own vehicles, allowing City staff to continue their daily responsibilities.
4. Innovation – The increase to the annual cost of the Services Agreement will allow Riverside Public Utilities and Parks and Recreat ion to provide staff and the public access to regularly cleaned vehicles on the City’s Schedule.
5. Sustainability & Resiliency – The increase to the annual cost of the Services Agreement for Citywide Car Wash Services will allow Riverside Public Utilities and Parks and Recreation to maintain clean and safe vehicles while continuing to offer continuity of operations to the public.
FISCAL IMPACT:
The total fiscal impact of the Second Amendment to the Services Agreement with Wash Master LLC is $80,564.28 plus 15% ch ange order authority of $25,899.64 for a total of $106,463.92.
Charges will be allocated to each Department’s approved and available budget on an as-needed basis. Sufficient funding is included in the bi ennial budget in the progr ams and accounts listed below that will be brought forward to City Council for adoption in June 2024.
Fund Program Account
Parks & Rec Special Public Transportation 5200200-421000 Electric Electric Operations 6100000-421000
Electric Production & Field Operations 6105000-421000
Water Water Production & Operations 6200000-421000
Water Field Operations 6205000-421000
Wash Master LLC 2nd Amendment ● Page 4
Prepared by: Kristan Nordmeyer, Procurement & Contract Specialist Approved by: Jennifer McCoy, Purchasing Manager
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
1. Second Amendment to the Services Agreement with Wash Master LLC