HomeMy WebLinkAbout24 - OB-1 - Second Amendment to Agreement w/ Cleanst - 1/2/20181
CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 2, 2018 ITEM NUMBER: OB-1
SUBJECT: SECOND AMENDMENT TO THE AGREEMENT WITH CLEANSTREET FOR STREET
SWEEPING SERVICES
DATE: DECEMBER 14, 2017
FROM: PUBLIC SERVICES DEPARTMENT \ MAINTENANCE SERVICES DIVISION
PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: BRUCE LINDEMANN, MAINTENANCE
SUPERINTENDENT (714) 327-7470
RECOMMENDATIONS
1) Approve the Second Amendment (Attachment 1) to the Maintenance Agreement with
CleanStreet, 1937 W. 169th Street, Gardena, CA 90247, to increase the annual amount
of the contract by 2.6 percent ($18,190.00) for residential, collector, and arterial street
sweeping City-wide, based on the Consumer Price Index.
2) Authorize the City Manager to execute the Amendment.
BACKGROUND
This item was originally presented to the City Council at the regular meeting on December
5, 2017. The City Council, following discussion on this item and requesting additional
information, continued this to the January 2, 2018, meeting.
The City of Costa Mesa entered into a five (5) year agreement with CleanStreet for
comprehensive residential, collector, and arterial street sweeping services on March 16th,
2015 (Attachment 2). The terms of the agreement established costs for all street sweeping
services required by the City. CleanStreet, as permitted by their cost proposal, requested a
Consumer Price Index increase of 2.6% for the 2017-2018 Fiscal Year (Attachment 3). If
approved, the annual compensation will be increased by $18,190. This will affect the total
price of the contract and the unit price structure reflecting the incorporation of the increase
into each of the unit costs.
ANALYSIS
CleanStreet’s cost proposal, as incorporated in the approved Professional Services
Agreement, allows for the contractor to annually request an increase in the contract price
to adjust for changes in the Consumer Price Index (CPI). The CPI for the past year is
2.6%. CleanStreet has requested the total price of the contract and the unit cost schedule
be increased by 2.6% to reflect the CPI increase. The work performed by CleanStreet is
invoiced based on the unit (per mile) costs and is limited by the contract amount.
2
ALTERNATIVES CONSIDERED
The CPI price increase is included in the approved cost proposal. No alternatives were
considered.
FISCAL REVIEW
If approved, the CPI increase of 2.6% will result in an increase in the cost of the street
sweeping contract in the amount of $18,190.00. The current annual contract amount is
$699,600.00. The total for the contract with the CPI increase will be $717,790.00.
Funding for the requested CPI increase was included in the adopted FY 2017-18 Public
Services Department budget.
LEGAL REVIEW
The City Attorney has reviewed the Second Amendment and approved it as to form.
CONCLUSION
CleanStreet is the City’s provider for residential, collector, and arterial street sweeping
services. Per the terms of the approved cost proposal, an increase in the annual contract
based on the Consumer Price Index is allowed. The requested 2.6% increase in the
contract is consistent with the published CPI for Orange County and is recommended to
be approved.
_________________________ ____________________________
RAJA SETHURAMAN BRUCE LINDEMANN
Public Services Director Maintenance Superintendent
ATTACHMENTS: 1.
2.
3.
Amendment No. 2 to Agreement with CleanStreet
Agreement with CleanStreet
Consultants Proposal
DISTRIBUTION: City Manager
Assistant City Manager
City Attorney
Interim Finance Director
City Clerk
Staff
File