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CC SR 20200317 H - Street Sweeping Agreement Extension CITY COUNCIL MEETING DATE: 03/17/2020 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to approve Amendment No. 1 to the Citywide street sweeping services agreement with CleanStreet RECOMMENDED COUNCIL ACTION: (1) Approve Amendment No. 1 to the CleanStreet agreement and extend the term by one year for FY 20-21, and approve a one-time 2.6% rate increase for FY 20-21; and, (2) Authorize the Mayor and City Clerk to execute the attached Amendment No. 1 as approved by the City Attorney. FISCAL IMPACT: The annual cost of $240,000 ($219,040 for regular sweeping, plus $20,960 for as-needed sweeping) is included in the proposed FY 20-21 municipal budget. No additional funding is requested for FY 19-20. Amount Budgeted: $240,000 Additional Appropriation: N/A Account Number(s): 338-400-3180-5201 $190,000 (Environmental Excise Tax- Maintenance) 214-400-0000-5201 $ 50,000 (Air Quality Management District- Maintenance) ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst REVIEWED BY: Elias Sassoon, PE, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Amendment No. 1 with CleanStreet (page A-1) BACKGROUND AND DISCUSSION: On June 21, 2016, following a competitive bid process, the City Council awarded a four- year citywide street sweeping agreement to CleanStreet. The term of the contract was from Fiscal Year 2016-17 through FY 19-20, with the option to extend the agreement by 1 three additional years based on mutual consent. The current term expires June 30, 2020. The City contracts for Citywide street sweeping services on a regular basis, not only for aesthetic purposes, but also as a best management practice for pollution prevention by reducing dust, sediment and other debris in the City’s roadways. It also helps the City fulfill its obligations under the federal Municipal Separate Storm Sewer System (MS4) permit. All of the City’s streets are swept twice monthly (24 times a year), including City facilities’ and parks’ parking lots and scenic turnouts. Western Avenue, which is a state highway, is swept weekly and Caltrans reimburses the City for the related sweeping costs. The CleanStreet agreement includes the weekly maintenance and cleaning of the City’s bus shelters and bus stops. The agreement also includes provisions for as- needed sweeping due to inclement weather, prior and/or after major City events, and in cases of unforeseen events. In the past four years, CleanStreet’s rates have remained unchanged. Furthermore, Staff has been pleased with CleanStreet’s sweeping performance, timely response to City requests and needs, and contracted rates. As part of the contract extension negotiations, Staff and CleanStreet both agreed to a one-year extension, and a one- time Consumer Price Index (CPI) increase of 2.6%. This CPI increase will help offset some of the operational (fuel and equipment) and labor costs that affect CleanStreet’s sweeping costs and operations. Staff recommends approving Amendment No. 1 to the agreement, which will allow a one-year extension of the agreement and a rate increase of 2.6%. If approved, the new agreement’s expiration date will be June 30, 2021. No additional budget appropriation is requested for FY 19-20. The modest increase of approximately $6,200 for FY 20-21 can be absorbed by the proposed FY 20-21 City budget, which remains the same as in FY 19-20. ALTERNATIVES: In addition to the Staff recommendations, the following alternative actions are available for the City Council’s consideration: 1. Amend and extend the agreement with CleanStreet for less or more than one year. 2. Direct Staff to solicit new competitive bids for street sweeping services. 3. Take other action, as deemed appropriate. 2 AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACTUAL SERVICES THIS AMENDMENT TO THE AGREEMENT FOR CONTRACTUAL SERVICES (“Amendment No. 1”) by and between the CITY OF RANCHO PALOS VERDES (“City”) and CLEANSTREET, a California corporation (“Contractor”) is effective as of March , 2020. RECITALS A. City and Contractor entered into that certain Agreement for Contractual Services dated June 21, 2016 (“Agreement”) whereby Contractor agreed to provide street sweeping and bus stop/shelter cleaning services (the “Services”) for four years, for a Contract Sum of $960,000. The Agreement provided that the Term may be extended up to three additional years at the City’s discretion. B. City and Contractor now desire to extend the Term of the Agreement by one year, until June 30, 2021, and to increase the Contract Sum to fund by $240,000 to $1,200,000. TERMS 1. Contract Changes. The Agreement is amended as provided herein. (Deleted text is indicated in strikethrough and added text in bold italics.) a. Section 2.1, Contract Sum, is amended to read: “Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed $240,000 per fiscal year, for a total of $1,200,000 (One Millions, Two Hundred Thousand Dollars and Zero Cents) Nine Hundred and Sixty Thousand Dollars ($960,000) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8” b. Section 3.4, Term, is amended to read: “Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding June 30, 2021 one (1) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).” c. Exhibit “C”, Schedule of Compensation, is replaced with Exhibit “C”, Schedule of Compensation -- Amendment No. 1, attached hereto and incorporated by reference. A-1 01203.0006/631420.1 mgw -2- d. Exhibit “D”, Schedule of Performance, is replaced with Exhibit “D”, Schedule of Performance -- Amendment No. 1, attached hereto and incorporated by reference. 2. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Amendment No. 1 to the Agreement. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Contractor represents and warrants to City that, as of the date of this Amendment No. 1, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Contractor that, as of the date of this Amendment No. 1, Contractor is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment. 5. Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] A-2 01203.0006/631420.1 mgw -3- IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: CITY OF RANCHO PALOS VERDES, a municipal corporation ____________________________________ John Cruikshank, Mayor ATTEST: _________________________________ Emily Colborn, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _________________________________ William W. Wynder, City Attorney CONTRACTOR: CLEANSTREET, a California corporation By: ________________________________ Name: Title: By: ________________________________ Name: Title: Address: ____________________________ ______________________________ ______________________________ Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY. A-3 01203.0006/631420.1 mgw CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2020 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. A-4 01203.0006/631420.1 mgw CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2020 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. A-5 01203.0006/631420.1 mgw EXHIBIT “C” SCHEDULE OF COMPENSATION – Amendment No. 1 I. Contractor shall perform the following tasks at the following rates. In the event of a discrepancy between these rates and the rates listed on the bid sheet submitted by the Contractor, the rates on the bid sheet shall control. SUB-BUDGET YEARLY AMOUNT FY2020-2021 TOTAL AMOUNT 1. Scheduled Sweeping $201,492 $1,005,970 2. Scheduled Bus Stop/Shelter Cleaning $22,610 $105,510 3. Additional Sweeping and Bus Stop/Shelter Cleaning $15,898 $88,520 BUDGET TOTAL $240,000 $1,200,000 SCHEDULED SWEEPING Amt/Month FY2016-2017 through FY2019-2020 Amt/Year FY2016-2017 through FY2019-2020 Amt/Month FY2020- 2021 Amt/Year FY2020- 2021 Item Total Item 1 – Residential Sweeping $12,820 $153,840 $13,153 $157,836 $773,196 Item 2 – Non- Residential Sweeping $2,376 $28,512 $2,438 $29,256 $143,304 Item 3 – Western Avenue $225 (per week) $11,700 $231 (per week) $12,012 $58,812 Item 4 – Parking Lots and Scenic Turnouts $350 $4,200 $359 $4,308 $21,108 A-6 01203.0006/631420.1 mgw Item 5 – NPDES Sweep $1,900 $1,950 $9,550 Scheduled Sweeping Total $1,005,970 ADDITIONAL AND AS-NEEDED SWEEPING Amt/Curb Mile FY2016-2017 through FY2019-2020 Amt/Hour FY2016-2017 through FY2019-2020 Amt/Curb Mile FY 2020- 2021 Amt/Hour FY2020- 2021 Item 6 – Additional/New Location Sweep $24.00 $24.60 Item 7 – Extra Sweeping (2- Hour Response) $105.00 $107.70 Item 8 – Extra Sweeping (Next Business Day) $100.00 $102.60 Item 9 – Alternative Sweeping for Heavy Sediment $45.00 $46.20 SCHEDULED BUS STOP/SHELTER CLEANING *Total cost to clean all bus stops and bus shelters. Amt/Month FY2016-2017 through FY2019-2020 Amt/Year FY2016-2017 through FY2019-2020 Amt/Month FY2020- 2021 Amt/Year FY2020- 2021 5-Year Total Item 10 – Weekly Cleaning of All Bus Stops/Shelters $1,574 $18,888 $1,884.15 $22,609.80 $105,510 ADDITIONAL BUS SHELTER CLEANING *Total cost to clean all bus shelters an addition time. Amt/Month FY2016-2017 through FY2019-2020 Amt/Month FY2020-2021 A-7 01203.0006/631420.1 mgw Item 11 – Additional Once-Monthly Cleaning of All Bus Shelters $360 $370 II. Payments for additional and/or as-needed services falling within Items 6 through 9, and Item 11, will only paid upon presentation of an invoice with an attached written authorization for the work signed by the Contract Officer, or his designee. III. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8. IV. Administration of Agreement By EDCO Disposal Corporation City has assigned responsibility for administering the street sweeping contract to EDCO Disposal Corporation (“EDCO”), City’s authorized residential solid waste collector. Contractor shall submit all invoices and other communications directly to EDCO, and all invoices will be paid by EDCO. A-8 01203.0006/631420.1 mgw EXHIBIT “D” SCHEDULE OF PERFORMANCE – Amendment No. 1 I. Unless earlier terminated in accordance with Article 7 of this Agreement, the term of this Agreement shall be July 1, 2016, to June 30, 2021. The term of this Agreement may be extended up to two addition years by mutual consent of the Parties. II. Contractor shall perform all work timely in accordance with the following schedule: A. Scheduled sweeping and cleaning of bus stops and shelters shall be performed at the frequency specified in Exhibit A of this Agreement, according to a schedule approved in writing by the Contract Officer. B. Additional and as-needed services shall be performed according to the schedule ordered by the City. III. Contractor shall deliver monthly reports and complaint logs to the City no later than the fifteenth (15th) day of the month following the subject month of the report or log. IV. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. A-9