03.07 Street Sweeping Agreement1. SUBJECT
First Amendment and rate adjustment to Street Sweeping Agreement No. 5963 (Agreement) with
CR &R Environmental Services Incorporated (CR &R).
2. SUMMARY
Effective March 19, 2013, the city entered into a five -year Street Sweeping Agreement with
CR &R, with an initial term ending June 30, 2018. The agreement has three, one -year extensions
available at the direction of the City Council. CR &R requested their maximum allowed 2% rate
adjustment, in writing, before the March 30, 2018 due date. If approved, the requested rates will
become effective July 1, 2018.
3. RECOMMENDED ACTION
Approve First Amendment to the Agreement with CR &R for an amount not to exceed $530,000,
including a 2% rate adjustment, and authorize the Mayor and City Clerk to execute on behalf of
the City.
4. FISCAL IMPACT
Funds will be available upon approval of the FY 18/19 Budget:
100.5022.51700.00000 Contractual Services (Labor & Maint.)
220.5022.51700.00000 Contractual Services (Labor & Maint.)
$510,000
20,000
Total: $530,000
1 5. STRATEGIC PLAN GOAL(S)
Provide for a safe community —
b. Provide and maintain infrastructure necessary to ensure public safety.
2. Be a fiscally healthy community —
a. Expend fiscal resources responsibly.
4. Provide outstanding public service —
a. 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 1 -32 — Flood Control and Storm Drain Facilities
Program V -8 Santa Ana Regional Water Quality Control Board
7. DISCUSSION and BACKGROUND
Introduction
The purpose of this staff report is to recommend two actions by the City Council. The first is to
recommend approval of a one -year extension of the street sweeping agreement with CR &R. The
second is to recommend approval of a 2% rate adjustment per the rate adjustment model in the
Agreement.
Extension
Per the Agreement, the City of Orange has the sole discretion to execute three, one -year extensions
following the expiration of the initial five -year agreement. The City has been satisfied with
CR &R's street sweeping performance and staff is recommending a one -year extension be granted.
Rate Increase
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, 2018 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. CR &R submitted their request for a rate adjustment on
March 28, 2018.
The 2018 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
ITEM 2 05/08/18
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 2.10% 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:
Based on the proposed 2018 rates, the estimated City expenditures for street sweeping will be
$530,000, an increase of $10,387 compared to the current rates.
Recommendation
Approve the first amendment with a one -year contract extension to June 30, 2019 and 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, 2018.
8. ATTACHMENTS 77�:]
CR &R Rate Request — 2018
First Amendment
ITEM 3 05/08/18
CR &R Monthly
Rate
Service
Current Rate
Proposed 2017 Rate
Curb Mile Rate
$11.17
$11.39
Curb Mile Rate - Arterial
$11.17
$11.39
Corp Yard
$31.21
$31.83
Water Yard
$31.21
$31.83
Daily Yard
$10.40
$10.61
Parkin Lots
$499.39
$509.38
Alleys/Bike Lanes
$11.17
$11.39
Emergency / Hour
$124.85
$127.35
Special / Hour
$83.23
$84.89
Based on the proposed 2018 rates, the estimated City expenditures for street sweeping will be
$530,000, an increase of $10,387 compared to the current rates.
Recommendation
Approve the first amendment with a one -year contract extension to June 30, 2019 and 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, 2018.
8. ATTACHMENTS 77�:]
CR &R Rate Request — 2018
First Amendment
ITEM 3 05/08/18
CITY COUNCIL MINUTES MAY 8, 2018
3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion
approving the recommended action listed on the Agenda. Any member of the City Council,
staff or the public may request an item be removed from the Consent Calendar for
discussion or separate action. Unless otherwise specified in the request to remove an item
from the Consent Calendar, all items removed shall be considered immediately following
action on the remaining items on the Consent Calendar.
3.1 Confirmation of warrant registers dated April 5, April 13, April 19, and April 27,
2018. (C2500.J.1.7)
ACTION: Approved.
3.2 City Council Minutes, Adjourned Regular Meeting of March 27, 2018; and Regular
Meeting of April 10, 2018. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 Monthly Treasurer's Reports for January, February, and March 2018. (C2500.F)
ACTION: Received and filed.
3.5 Agreement with Robertson Industries, Inc. for maintenance and repair of rubberized
play surface material for tot lots in four City parks. (A2100.0; AGR -6602)
ACTION: Approved agreement with Robertson Industries, Inc. in the amount not -to-
exceed $58,390; and authorized the Mayor and the City Clerk to execute on behalf of the
City.
3.6 First Amendment to Custodial Services for All City Buildings Agreement No. 6225;
with Ultimate Maintenance Services, Inc. (A2100.0; AGR- 6225.1)
ACTION: Approved First Amendment with a one -year extension to the Agreement with
Ultimate Maintenance Services, Inc. for an amount not -to- exceed $405,000; and
authorized the Mayor and City Clerk to execute on behalf of the City.
(ITEM REMOVED AND HEARD SEPARATELY)
3.7 First Amendment and rate adjustment to Street Sweeping Agreement No. 5963 with
CR &R Environmental Services Incorporated (CR &R). (A2100.0; AGR - 5963.1)
City Engineer Frank Sun clarified Councilmember Alvarez's question regarding the
contract amount. The current contract amount is $510,000 and the proposed increase of
$10,387 is included in the FY 2018 -19 budget.
MOTION — Alvarez
SECOND — Nichols
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to approve First Amendment to the agreement with CR &R for an amount not -to-
exceed $530,000, including a 2% rate adjustment; and authorize the Mayor and City Clerk
to execute on behalf of the City.
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