Item Coversheet

Agenda Item - 7.d.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:William E. Murray
Dept.:City Manager 

Dept.: Public Works 
Subject:

Award of contract to CleanStreet for street sweeping and catch basin cleaning services.  (Cost:  $6,422,291.12) (Action Item)

Date:1/22/2019

OBJECTIVE

To request that the City Council award a contract to CleanStreet to provide street sweeping and catch basin cleaning services.
BACKGROUND

Street Sweeping is an integral element of the City’s National Pollutant Discharge Elimination Systems (NPDES) permit, removing approximately 280 tons of debris per month from city streets.  With the additional requirements of option 2 of the state mandated Trash Amendment, street sweeping and catch basin cleaning are of even greater importance to assist the city in meeting the goal of zero trash and debris entering our storm drain system and the ocean.

 

The existing street sweeping and catch basin cleaning agreement expires on January 31, 2019.  To ensure continued service, RFP S-1246 was issued and advertised on December 6, 2018.  A mandatory pre-proposal meeting was held on December 14, 2018, with six (6) companies in attendance.

 

DISCUSSION

Three (3) proposals were received and opened on January 2, 2019.  The Source Selection Committee (SSC) reviewed and scored all proposals.

 

The SSC selected the highest scoring proposer, CleanStreet, as they demonstrated understanding of the project, offered a work plan that best fit the needs of the City, and has the ability to perform all services requested.

FINANCIAL IMPACT

The new CleanStreet agreement is for an approximate 7 year term and is estimated to cost $6,422,291.12 over the term of the contract, approximately $917,470.16 annually. This estimated cost does not include the contractual renewal obligations for CPI adjustments not to exceed 4% annually. The prior 6 year term agreement was in the amount of $ 4,629,667.20, approximately $771,611.20 annually. The new contract is anticipated to cost $1,792,623.92 above the prior contract over the term of the contract. This substantial increase is partly due to the recently implemented State mandated Trash Amendment regulations requiring the City to provide more frequent monitoring and cleaning of storm drain catch basins. 

 

Additionally, the Department of Industrial Relations (DIR) is currently considering whether prevailing wages will be required for street sweeping services. Currently, street sweeping is not subject to the payment of prevailing wages.  If the DIR declares that street sweeping is subject to prevailing wages, there may be additional increased costs.

 

The contract will continue to be funded by the General Fund and Water Enterprise Fund. The increased contract costs for fiscal year 2018-19 will be absorbed in the fiscal year 2018-19 budget. Ongoing cost escalations will be budgeted through the regular biennial budgetary process. 

RECOMMENDATION

It is recommended that the City Council:

 

  • Award a contract to CleanStreet in the amount of $6,422,291.12 for the approximately seven year term of the contract through December 31, 2025;

 

  • Authorize the City Manager to execute the agreement and make minor modifications as needed thereto;

 

  • Authorize the City Manager to update the terms of the agreement should the Department of Industrial Relations require the payment of prevailing wages for street sweeping services;

 

  • Authorize the City Manager or his designee to provide additional funding for the agreement should the Department of Industrial Relations require the payment of prevailing wages for street sweeping services; and

 

  • Authorize the City Manager to exercise each optional term of the agreement, through December 31, 2025.

 

 

 

By:  Mark Ladney

       Public Works Supervisor




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Agreement1/15/2019Backup MaterialCleanStreet__Inc._Agreement.pdf
Contract Attachments1/11/2019Backup MaterialRFP_S1246_Attachments.pdf