25J - AMEND AGMT ATHENS SERVICES

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 21, 2020 TITLE APPROVE AN AMENDMENT TO THE AGREEMENT WITH ATHENS SERVICES, INC. TO EXERCISE A FOUR-YEAR RENEWAL TERM FOR STREET SWEEPING SERVICES FOR AN ANNUAL AMOUNT OF $1,047,222 (TOTAL NOT TO EXCEED $4,188,888) (NON -GENERAL FUND) {STRATEGIC PLAN NO. 6, 1131 CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the agreement with Athens Services, Inc., for street sweeping services for a four-year period, beginning July 1, 2020, and expiring June 30, 2024, increasing the rate to $17.63 per curb mile, for a total service cost of $952,020, plus a 10 percent contingency of $95,202, for a total annual amount not to exceed $1,047,222, and a four- year total of $4,188,888, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency Maintenance Services Division is responsible for sweeping all of the City roadways annually - an estimated 54,000 curb miles. In 2012, City Council approved an eight -year street sweeping agreement with Athens Services, Inc., expiring on June 30, 2020, with one eight - year renewal option (Exhibit 1). The services include weekly street sweeping of residential, arterial and industrials streets, alleys, and up to 400 annual curb miles of free special sweeping for special events. This contracted service has resulted in an operational savings of $2.5 million annually. In 2012, the City successfully negotiated a curb mile rate of $15, which was one the lowest rates in Southern California, and included key provisions such as a maximum annual cost of living adjustment of percent per a Consumer Price Index (CPI) and Producer Price Index (PPI) weighted formula, key quality control measures such as Global Positioning System (GPS) to monitor sweepers, a monthly customer complaint log with resolution implemented, continuous staffing provisions, and an on -site supervisor. To further improve public services and in exchange for a lower curb mile price to the City, Athens Services centralized their Santa Ana operations at the City Corporate Yard to deploy their fleet of sweeping vehicles from the Yard, utilized office/storage space, cleaned their vehicles at the wash rack, and had the option to purchase fuel on -site from 25J-1