CC - Item 6B - Street Sweeping Contract Extension E M F
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CIVIC PRIDE) REPORT
O RATED 19g9
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER ( .,
DATE: MAY 12, 2015
SUBJECT: STREET SWEEPING CONTRACT EXTENSION
SUMMARY
The City of Rosemead currently provides for street sweeping services through a
contract with Athens Services. Under this agreement, all residential streets are swept
once weekly and all commercial streets are swept twice weekly. This contract is set to
expire on June 30, 2015 and staff has reviewed several options for moving forward. As
a first step, staff assessed the current market conditions and conducted a survey of
similar requests for proposal (RFPs) from the last year. Staff has reviewed the results of
five (5) recently conducted RFPs and noticed a substantial upswing in the market prices
for street sweeping services. This review of the current market conditions has
forecasted a potential rate increase of 31% to 82% based on similar RFP results
throughout Southern California.
Athens Services, the City's current contractor, has contacted staff with an offer for a
new contract. The offer, while higher than the City's current rate, is at the low end of the
current market prices. Athens Services has indicated that this offered rate is dependent
upon a negotiated contract renewal and is not indicative of the rate that should be
expected in a competitive RFP.
Staff Recommendation
It is recommended that the City Council authorize the City Manager to enter into
contract with Athens Services for street sweeping services at an annual cost of
$218,400 for a period of three years, with the option to renew for two additional years.
DISCUSSION
The current contract for City street sweeping services with Athens Services expires on
June 30, 2015. Athens Services has provided the City's street sweeping services since
2010 to the satisfaction of staff and the community. Street sweeping contributes to the
City's overall appearance and water quality efforts as it removes potentially harmful
trash, metals and bacteria from the streets and storm drains. The scope of work in the
existing agreement for street sweeping services includes sweeping all residential,
collector, and arterial streets within the City. Service levels are briefly described below
and are regularly monitored by City staff. n
ITEM NUMBER:
City Council Meeting
May 12, 2015
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• Provide street sweeping services once weekly in residential areas and twice
weekly in specified commercial districts.
• Provide sweeping logs that include miles and areas swept and the amount of
materials that are collected.
• Utilize street sweeping equipment in compliance with Air Quality Management
District (AQMD) Rule 1186.1, which is the standard for alternative fuel vehicles.
• Coordinate with Public Safety Department Parking Control Officers on daily
routes.
• Provide the City with additional street sweeping in conjunction with up to four (4)
special events each year.
Current Contractor
As stated, Athens Services has provided street sweeping services for the City of
Rosemead since July 1, 2010. Athens Services, throughout the term of this agreement,
has exceeded the expectations of staff. The contractor sweeps all streets according to
the City's schedules, is timely, and provides excellent customer service. Additionally,
the contractor has often made adjustments and accommodations to its scheduling to
meet the various needs of the City and community. The contractor coordinates
effectively with City Staff from both the Public Works and Public Safety Departments.
Additionally, the contractor has gone above and beyond in their response to emergency
situations (windstorms, accidents, etc.) and their participation in City events, including
as a sponsor of the City's annual Public Works Day event.
Current Market Conditions
As a component of the development of a request for proposals (RFP) staff conducted
research to survey current market conditions for street sweeping in Southern California.
Staff was able to identify five (5) RFPs conducted within the past year from which they
analyzed the current market conditions. Street sweeping costs are commonly expressed
in "Curb Mile Rate" which is the monthly cost of sweeping divided by the number of curb
miles that are swept in the City. Per the contract issued to Athens Services in July 2010,
the City of Rosemead's contract was based on a Curb Mile Rate of $19.33. Below is a
chart of Curb Mile Rates received for recent RFPs from other Southern California cities.
City RFP Date Curb Mile Rate Comparison Contractor
Rosemead May 2010 $ 19.33 - Athens
West Hollywood May 2014 $ 32.87 + 82.06% Cleanstreet
Placentia September 2014 $ 23.65 +31.00% Athens
Garden Grove November 2014 $ 30.96 +71.48% Dickson
San Fernando January 2015 $ 28.25 +56.47% Athens
Pomona March 2015 $ 26.25 +45.39% Athens
The Curb Mile Rates proposed in these RFPs ranged from a low of$23.65 and a high of
$51.12, both of which were received by the City of Placentia. The average curb mile
rate that was offered amongst the five RFPs is $33.34. The cities surveyed receive
City Council Meeting
May 12, 2015
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services that are representative of those received by the City of Rosemead, meaning
that the street sweeping is a standalone service that is not provided for by the cities'
trash haulers. Often time cities that have street sweeping and trash hauling services
provided by the same firm recognize discounts that are not available to other
customers.
Athens Services Proposal
Athens Services has offered to continue the service for the City of Rosemead, under a
new three (3) year contract, with a curb mile rate of $23.50. The City's street sweeping
service area includes 775 curb miles per month, therefore, the monthly rate for street
sweeping services will not exceed $18,200 per month ($218,400.00 per year).
Based on the City of Rosemead's sweeping area, the annual cost for street sweeping
services based on the prices awarded through recent RFPs could range from $ 219,945
(Placentia) to $305,691 (West Hollywood). As this information has demonstrated, staff
believes that this offer from Athens Services represents the best possible rate for street
sweeping services for the City of Rosemead at this time.
FISCAL IMPACT
Staff has included a budget amount of $250,000 in the Fiscal Year 2015-16 Operations
Budget for Street Sweeping, funded through State Gas Tax Funds.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared By:
Sean Sullivan
Acting Public Works Manager
Submitted By:
y1 s g'
Matth- E. Ha k-sworth
Assist.nt City Manager/Acting Director of Public Works
Attachments:
A. Proposal from Athens Services
tip Athens Services
Waste Collection•Recycling•Transfer•Disposal•Street Sweeping
April 20, 2015
Sean Sullivan
City of Rosemead
8838 Valley Blvd.
Rosemead, CA 91770
Dear Sean:
Athens Services has greatly enjoyed providing street sweeping services to City of Rosemead
since 2010 and would like to extend our agreement with City. To that end, we offer the
following benefits to the City:
✓ Best value - Highly competitive rates! We would request a rate adjustment to $23.50
per curb mile due to increased operating costs. Based on the average number of miles
we sweep, you would be billed $18,200.00 per month, not exceed $218,400.00
annually. This is an extremely good value based on the most recent RFP results by
other cities in Southern California:
City Date Athens Nationwide Cleanstreet Dickson Sunset Webco
West
Hollywood May-14 $ 44.50 $ 32.87
Placentia Sep-14 $ 23.65 $ 28.63 $ 33.40 $29.13 $ 51.12
Garden
Grove Nov-14 $ 34.00 $ 33.90 $30.96
San
Fernando Jan-15 $ 28.25 $ 29.82 $41.56
Pomona Mar-15 $ 26.25 $ 32.00
✓ Free Compost Giveaway — We commit to a compost giveaway every year of the
contract which is worth thousands of dollars to your residents!
✓ Environmentally responsible — We use clean, alternative fuel trucks and never use
chemicals to enhance results!
✓ Technological Leader — We use the newest GPS technology to provide cities with real
time live tracking of our work!
✓ Safety - We have fleet maintenance and safety programs that are often used as industry
examples of how a fleet should be run!
✓ Outstanding Customer Service — Our customer service number, (888) 336-6100, is
answered LIVE from 7:00 a.m. to 5:00 p.m. on weekdays and 7:00 a.m. to Noon on
Saturdays with 175-language capabilities to assure that customer's concerns are
addressed immediately.
✓ Fast response - We utilize cellular technology to produce quick communication with
the field and Key Management Personnel!
✓ Highest Quality - We will make as many passes as is required to deliver high-quality
results!
On behalf of the dedicated Athens employees, we thank you for your consideration.
Sincerely,
0.1.0"."0■••7 62
Tommy Ouzoonian
Franchise Division Sales Manager
P.O. Box 60009, City of Industry, 91716
(626) 336-3636