CITY OF ELK GROVE CITY COUNCIL STAFF REPORT

Transcription

1 CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO AGENDA TITLE: Adopt resolution authorizing the City Manager to execute the first amendment to the contract with Szeremi Street Sweeping for City Street Sweeping Services increasing the current contract authority by $323,500, total contract compensation not to exceed $874,303 MEETING DATE: January 9, 2013 PREPARED BY: John R. Scott, O&M Contract Manager DEPARTMENT HEAD: Richard W. Shepard, Public Works Director / City Engineer RECOMMENDED ACTION: Staff recommends the City Council adopt a resolution authorizing the City Manager to execute the first amendment to the contract with Szeremi Street Sweeping for City Street Sweeping Services increasing the current contract authority by $323,500, total contract compensation not to exceed $874,303. BACKGROUND INFORMATION: In July 2010, the City executed a contract with Szeremi Sweeping Service at the conclusion of a competitive bid process for street sweeping services. Under this contract, over 13,500 curb miles are swept annually, and the City has realized an annual savings of approximately $130,000 for street sweeping as compared to the previous contract for these same services. The vendor, Szeremi Sweeping Service, is a family- owned company with roots in the City of Elk Grove and has provided excellent service in the 1

2 Elk Grove City Council January 9, 2013 Page 2 of 2 performance of their contracted duties. The company continues to do so at unit rates significantly lower than the previous street sweeping contractor. Staff anticipates the current contract authority of $550,803 will be exhausted by the end of March The requested increase in contract authority will carry the contract to the end of June 2014 (end of FY ) and maintain the current levels of service without increasing the unit prices established with the original contract executed in July BEST INTEREST FINDING Based on the current economic climate and the instability of fuel prices, bidding these services at this time could increase unit pricing and overall contract costs anywhere from 5% to 25%. Re-bidding the contract at this time would not be in the City s best financial interest. The Public Works Department s contract services provider, Willdan Engineering, who would take responsibility for providing this service under its General Services agreement, agrees that extending the current contract would provide the best value to the City at this time. Therefore, staff recommends that the City Council finds that it is in the City s best interest to waive the solicitation process for Street Sweeping services pursuant to Section (B)(3) of the City s Municipal Code. FISCAL IMPACT: Under the current contract rates for street sweeping services in the City, the proposed increase in contract authority will not require an increase to the current fiscal budget nor does staff anticipate any need for a budget increase to the FY Budget for these services. ATTACHMENTS: 1. Resolution 2. Willdan Concurrence Document 3. Contract amendment with Szeremi Sweeping Service 2

3 ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST CONTRACT AMENDMENT WITH SZEREMI STREET SWEEPING SERVICE INCREASING THE CURRENT CONTRACT AUTHORITY BY $323,500, FOR A TOTAL COMPENSATION AMOUNT NOT TO EXCEED $874,303 WHEREAS, the City currently contracts directly with Szeremi Street Sweeping Service for Public Works street sweeping services; and WHEREAS, Szeremi Street Sweeping Service will reach the limit of their contract authority prior to April 1, 2013; and WHEREAS, re-bidding street sweeping services at this time is not in the best financial interest of the City; and WHEREAS, general services required by the City are to be competitively bid by the prime Public Works contractor, Willdan Engineering; and WHEREAS, Willdan Engineering, the prime Public Works contractor, confirms that extending the current contract would be in the best financial interest of the City; and WHEREAS, the services provided by the existing contract with Szeremi Street Sweeping Service is critical to ongoing public and traffic safety and should therefore not lapse. NOW, THEREFORE, BE IT RESOLVED that pursuant to Elk Grove Municipal Code Section (B)(3) the City Council of the City of Elk Grove finds that it is in the City s best interest to waive the solicitation process for street sweeping services and hereby authorizes the City Manager to execute a contract amendment to increase the current contract authorization with Szeremi Sweeping Service by the amount of $323,500 raising the total contract authorization from $550,803 to an amount not to exceed $874,303. PASSED AND ADOPTED by the City Council of the City of Elk Grove this 9 th day of January GARY DAVIS, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 3

4 From: Daniel Chow Sent: Monday, November 19, :50 AM To: John R. Scott Cc: John Pumphrey; Richard Shepard Subject: RE: Street Sweeping ATTACHMENT 2 John, Willdan will support the City s desire to extend the current agreement to provide the street sweeping services. Although we believe we can procure and maintain excellent services for the City but the current contract arrangement appears to provide the best value without expending additional procurement effort at this time. Let me know if you have any questions. Daniel From: John R. Scott [mailto:jrscott@elkgrovecity.org] Sent: Monday, November 19, :35 AM To: Daniel Chow Cc: John Pumphrey; Richard Shepard Subject: Street Sweeping Daniel: I m in the process of preparing a Council staff report for the City s street sweeping services contract. The staff report is proposing an increase in contract authority that would carry the contract through June of I anticipate the current contract authority will be exhausted prior to April 1 st, A short time ago, I discussed with both Mort August and John Pumphrey the possibility of Willdan Engineering assuming responsibilities for these services and Willdan soliciting bids for these services as a subcontract to your General Services agreement with the City. This would mean that Willdan would need to solicit proposals for these services and have a contract in place by late March of Our current street sweeping contract has saved the City in excess of $100,000 annually over previous contracts hence our decision to increase the contract authority and extend services under the current agreement. Given the current economic climate it may be very difficult to equal, much less better, the savings provided under the current agreement. Before moving forward with our staff report, we wanted to provide Willdan Engineering an opportunity to weigh in on the subject and decide to either pursue a subcontractor agreement under Willdan or support our desire to extend the current agreement. The City s goal is to simply realize the best value for services provided. Please let me know your decision at your earliest possible convenience as this is a time sensitive subject. I m happy to provide any information that may help you in your decision. Thanks! -John John R. Scott Contract Manager, Maintenance & Operations City of Elk Grove Public Works Department (916) (desk) (916) (cell) jrscott@elkgrovecity.org 4

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6 FIRST AMENDMENT TO CONTRACT FOR SZEREMI SWEEPING SERVICES- CONSULTANT Citywide Sweeping Maintenance Services THIS FIRST AMENDMENT TO CONTRACT ("First Amendment") is made and entered into between City of Elk Grove, a California municipal corporation ("City") and Szeremi Sweeping Services, LLC ("Consultant"), and hereby amends the agreement entered into between the parties on July 15, 2010 as contract number C ("Contract"). 1. It is the intent of the City and Consultant to continue to be bound by all terms and conditions ofthe Contract, all of which are expressly incorporated into this First Amendment by this reference, except as expressly changed by this First Amendment. 2. City and Consultant agree that compensation to Consultant shall be paid pursuant to the Contract except that in no event shall the additional compensation exceed Three Hundred Twenty Three Thousand Five Hundred Dollars and No Cents ($323,500.00), and the total compensation to Consultant under the Contract and any amendments thereto shall not exceed Eight Hundred Seventy Four Thousand Three Hundred Three Dollars and No Cents ($874,303.00), without City's prior written approval. 6

7 .. 1 City of Elk Grove Szeremi Sweeping Services, LLC Re: Citywide Sweeping Maintenance Services AGREED to this _Z_ day of:i;w~f, 2013, by the parties as follows. Approved as to form: CONSULTANT By: Counsel for Consultant Approved as to form: CITY OF ELK GROVE By: Laura S. Gill, City Manager Attest: By: Jason Lindgren, City Clerk 7