May 1
2 , 2025
City of Santa Clarita
Email
:CSKELTON@santa
-
clarita.com
Subject:
Dear
Mr,
Skelton
,
On behalf of Servicon Systems, Inc., we would like to thank you for the continued opportunity to provide services to your facility. We are writing to formally request a
Cost
-
of
-
Living Adjustment (CPI increase) in accordance with the terms outlined in our existing contract, specifically under Recommendation Action Item 2.
In accordance with the latest data from the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI
-
U) in the Los Angeles
-
Long Beach
-
Anaheim area has increased 3.1% over the past year (March 2024 –
March
2025). This increase re
flects higher costs in labor, fuel, and operational expenses, all of which impact our ability to maintain service levels without adjustment.
Consumer Price Index
–
March 2025, Los Angeles Area
–
BLS
In addition to
CPI
-
related pressures, we are also experiencing significant cost increases due to new federal tariffs implemented on April 2, 2025. Our suppliers have advised us that these tariffs range from 10% to 46%, depending on the country of origin. Affected product
s include many of the essential items we use daily, such as cleaning chemicals, tools, gloves, textiles, and equipment. These increases have an immediate and broad impact on our supply chain.
Tariffs Work
—
and President Trump’s First Term Proves It
–
The White House
Attached you will find letters from several of our key suppliers outlining the specific tariff impacts on product pricing. Wh ile
we have worked diligently to mitigate these increases through vendor negotiations and internal efficiencies, the scope of these
federal tariffs makes further absorption unsustainable.
To address these combined economic pressures, we respectfully request a total price adjustment of 3 .0%, effective July 1,
2025. This increase will help ensure uninterrupted service delivery, quality standards, and continued operational reliability .
We sincerely appreciate your consideration of this request. Should you have any questions or require further documentation, we would be happy to provide additional details. We value our partnership and remain committed to supporting your facility with the
highest level of service.
Sincerely,
Susan Matt