SR - AGR-5963 - ANNUAL RATE ADJUSTMENT STREET SWEEPING SERVICES1. SUBJECT
Rate adjustment for street sweeping services.
2. SUMMARY
The City entered into a Street Sweeping Agreement (Agreement) with CR &R Environmental
Services Incorporated (CR &R) effective March 19, 2013. The agreement stipulates that CR &R
may request a rate adjustment provided that their request is submitted in writing and received by
March 30 of any given calendar year. On March 27, 2017, CR &R submitted their request for a
rate adjustment of 2 %. If approved, the requested rates will become effective on July 1, 2017.
3. RECOMMENDED ACTION
Approve the 2% rate adjustment for CR &R.
4. FISCAL IMPACT
Funds will be available in the below account upon approval of the FY 17/18 Budget.
100.5022.51700.00000 Contractual Services (Labor & Maint.) $510,000
220.5022.51700.00000 Contractual Services (Labor & Maint.) 20,000
Total: $530,000
1 5. STRATEGIC PLAN GOAL(S)
lb. Provide for a safe community — Provide and maintain infrastructure necessary to ensure
public safety.
2a. Be a fiscally healthy community — Expend fiscal resources responsibly.
4a. Provide outstanding public service — Provide facilities and services to meet customer
expectations.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Goal 3.0 Ensure adequate maintenance of public rights -of -way to enhance public
safety and improve circulation.
Policy 3.2: Provide sufficient levels of street sweeping, landscaping, graffiti abatement, shopping
cart and bulk item removal from streets, sidewalks, alleys, and other public rights -of -way.
Implementation Plan: Program I -32 — Flood Control and Storm Drain Facilities
Program V -8 Santa Ana Regional Water Quality Control Board
7. DISCUSSION and BACKGROUND
Intraduetion
In accordance with the Agreement between the City of Orange and CR &R for street sweeping
services, CR &R submitted a request with supporting documentation for a July 1, 2017 rate
adjustment. The Agreement stipulates that CR &R is entitled to an annual rate adjustment provided
they submit their request in writing by March 30 and such adjustment is in accordance with the
rate adjustment methodology model. The last approved increase was in 2014. CR &R submitted
their request for a rate adjustment on March 27, 2017. Based on their March 27 submittal and staff
review, CR &R's rate adjustment request is in compliance with the Agreement and congruent with
the parameters of the Model. In addition to weekly street sweeping, the contract allows for CR &R
to be dispatched for sewer spill clean -up. The $20,000 allocated to the 220 fund is to cover this
activity.
Rate Request Analysis
The 2017 rate adjustment request that CR &R submitted to the City is based upon their application
of the Model included in the Agreement. The Model utilizes changes in labor, fuel, equipment
and disposal fees, and changes in the formula -based consumer and producer price index (CPI and
PPI) to calculate a multiplier that can be applied to street sweeping service rates. Ultimately, the
Model was created to establish criteria that the City and CR &R have agreed to for the verification,
recommendation and establishment of equitable street sweeping service rates. The Model
calculated at a total rate of 2.27% increase. However, the maximum allowed per the Agreement
is capped at 2.0 %.
Essentially, CR &R is requesting an adjustment of street sweeping rates at 2 %. Listed on the
following page is a chart that depicts the effect of CR &R's proposed rate adjustment:
ITEM 2 5/9/17
Based on the proposed 2017 rates, the estimated City expenditures for street sweeping will be
$529,709, an increase of $10,387 compared to the current rates.
Recommendation
Approve the 2% rate adjustment requested by CR &R. The request has been reviewed and verified
by City staff for its accuracy. If approved, the street sweeping service rates shall become effective
on July 1, 2017.
8. ATTACHMENTS
• CR &R Rate Request — 2017
ITEM 3 5/9/17
CR &R Monthly
Rate
Service
Current Rate
Proposed 2017 Rate
Curb Mile Rate
$10.95
$11.17
Curb Mile Rate - Arterial
$10.95
$11.17
Corp Yard
$30.60
$31.21
Water Yard
$30.60
$31.21
Daily Yard
$10.20
$10.40
Parking Lots
$489.60
$499.39
Alleys/Bike Lanes
$10.95
$11.17
Emergency / Hour
$122.40
$124.85
Special / Hour
$81.60
$83.23
Based on the proposed 2017 rates, the estimated City expenditures for street sweeping will be
$529,709, an increase of $10,387 compared to the current rates.
Recommendation
Approve the 2% rate adjustment requested by CR &R. The request has been reviewed and verified
by City staff for its accuracy. If approved, the street sweeping service rates shall become effective
on July 1, 2017.
8. ATTACHMENTS
• CR &R Rate Request — 2017
ITEM 3 5/9/17