Item 11 - Award Agreement to Athens Services to Provide Street Sweeping Services

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Public Works Agency www.santa-ana.org/public-works Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 29, 2023 TOPIC: Award Agreement to Athens Services to Provide Street Sweeping Services AGENDA TITLE Approve Agreement with Arakelian Enterprises, Inc., DBA Athens Services to Provide Street Sweeping Services, for a Total Amount not to Exceed $64,572,750 for up to 15 Years (Specification No. 23-007) (General Fund and Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Athens Services to provide street sweeping services at a base amount of $3,913,500, with an annual contingency of $391,350, for a total annual amount of $4,304,850, plus allowance for an annual adjustment based on the Consumer Price Index, for a ten-year initial term totaling $43,048,500, beginning on July 1, 2024 and expiring June 30, 2034, with an option for one, five-year extension totaling $21,524,250, for an aggregate amount not to exceed $64,572,750, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency's Maintenance Services Division is responsible for keeping the City's streets clean and visually appealing for the safety and well-being of its residents. Street sweeping is a critical maintenance task that involves removing debris such as leaves, trash, glass, and metal particles from streets and gutters to prevent causing damage to the public and from entering the storm drain system, as mandated by state and federal laws. To achieve this objective, Staff performed an in-house cost of service analysis and requested proposals for street sweeping services from service providers who have the capacity to enhance the quality of services and adhere to the new rules set by the State of California Department of Industrial Relations (DIR). Staff considered the option of performing street sweeping with City Fleet. Staff has determined this option is not viable at this time; this option presents challenges due to significant costs of the equipment at over $550,000 per sweeper, fleet procurement delays, the need to hire additional staff to operate and maintain the equipment, and other facility considerations. The estimated average annual cost for performing street sweeping with in-house resources is nearly $11 million for the first year alone due to fleet procurement, over $5.5 million the second year, and increasing annually thereafter. Additionally, procurement lead times for street sweeping equipment are currently