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Amend Agreement with Athens Services for Street Sweeping Services <br />January 21, 2020 <br />Page 2 <br />the City. All of these items have contributed to faster, more efficient, and successful services to <br />the public. The current street sweeping rate is $15.63 per curb mile as stipulated per the <br />agreement's cost of living adjustment. <br />Agreement Renewal Negotiations and Amendments <br />The City began agreement renewal negotiations with Athens Services in October 2019, with Athens <br />Services formally requesting to exercise the agreement's eight —year renewal option, with three <br />proposed amendments that included: <br />1. Street sweeping curb mile rate adjustment to $17.63 due to cost of living increases; <br />2. Removal of the annual cost of living maximum of 2% (Section 3(D)); and <br />3. Removal of the requirement to utilize street sweeping vehicles eight years old or newer (Section <br />II(C)(1)(c). <br />The City responded to Athens Services proposed amendments and they accepted the City's <br />counter proposal on December 9, 2019. The proposed negotiated agreement amendments (Exhibit <br />2) are summarized as follows: <br />1. Curb mile rate increase from $15.63 to $17.63, effective July 1, 2020. <br />2. Maintain the existing 2% CPI/PPI language. <br />3. Remove requirement to only utilize sweeper vehicles eight -years or newer and require that <br />vehicles are in new, like new, or newly refurbished condition. <br />4. A four-year renewal term will be proposed starting on July 1, 2020, and ending on June 30, <br />2024. <br />Cost Analysis <br />Based on the most recent curb -mile price data gathered, the City has and will continue to benefit <br />from the lowest pricing based on the three most recent contracts awarded to Athens Services and <br />in comparison to other local cities that contract street sweeping services. The table below highlights <br />the proposed curb mile pricing of $17.63 being well below the industry averages: <br />Agencies <br />Curb Mile Rate <br />Athens Services Contracted Cities <br />$21.94 <br />(Average of three most recent contracts <br />Other Contract Sweeper Cities <br />$20.70 <br />(Average of Seven Orange County Cities <br />City of Santa Ana (Proposed) <br />$17.63 <br />25J-2 <br />