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RESOLUTION NO. 2014-252 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE CONTRACT FOR CITYWIDE STREET SWEEPING SERVICES TO CANNON PACIFIC SERVICES, INC. TO INCREASE THE COST OF SWEEPING CITY PARKING LOTS
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On November 15, 2011, the City of Chula Vista awarded a contract for citywide street sweeping services to Cannon Pacific Services, Inc Currently, City parking lots are swept at the cost of $5.96 per month. Cannon Pacific Services, Inc. is seeking approval to increase the respective cost to $587.36 per month. The adjusted monthly fee corrects a numerical error by the contractor which was honored during the initial three years of the contract.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity, approval of a contract for street sweeping services is not a "Project" as defined under Section 15378(b)(4) of the State CEQA Guidelines because it is only an approving of a funding mechanism; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
On November 15, 2011, by Council Resolution 2011-218, the City of Chula Vista accepted bids and awarded a five year contract for citywide street sweeping services to Cannon Pacific Services, Inc. and authorized the purchasing agent to renew the agreement for two (2) additional two-year option periods in accordance with the terms and conditions of the request for bid 1-11/12. Prices were to be firm for the first two years of the agreement. Adjustments for the third through fifth year and the two (2) two-year options to renew would be based upon the All Urban Consumers/All Items Component of the San Diego Metropolitan Area Consumer Price Index, as published by the Bureau of Labor Statistics, up to a maximum of 6% per year. Cannon Pacific Services, Inc. is requesting a 1.7% CPI unit price increase and an amendment to the agreement which would allow for an increase to the monthly cost of sweeping City parking lots. At the time, Cannon Pacific Services would have been the lowest bid even with the correct monthly rate.
The third year of the contract concluded on November 15, 2014. Currently, City parking lots are swept for a total cost of $5.96 per month. Cannon Pacific Services, Inc. is seeking approval to increase the respective cost for a total of $587.36 per month. The request is based on figures in which they intended to bid at the time of the original Request for Bid (RFB). Page 35 of the original RFB demonstrates figures of 1,174,734 square feet of City parking lots to be swept once per two months for a total square footage of 7,048,404 per year. Figures on the original bid form demonstrate that Cannon Pacific Services, Inc. bid at a rate of $0.00001 per square foot reflecting a cost of $70.48 per year. Cannon Pacific Services, Inc. intent, however, was to bid on sweeping the City parking lots once per two months at the rate of $0.001 per square foot, reflecting a cost of $7,048.40 per year. The adjusted monthly fee reflects a cost of $587.36. Cannon Pacific Services, Inc. admits their numerical error and honored the agreement for a total of three years.
As part of City staff's ongoing discussions with Cannon Pacific, Inc. about their operations in Chula Vista, the company has agreed to upgrade its local fleet over the next 3 months in order to utilize recycled water (i.e. water from purple pipes) for street cleanings in designated areas citywide. Their efforts will contribute to the City's broader response to ongoing drought conditions in California by helping reduce local demand for imported water. In addition to being considered a drought-resistant water source, recycled water has a lower "carbon footprint" than imported water because it takes less energy to treat and distribute.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Controlling pollution at its source has and continues to be a primary objective of the City of Chula Vista and the Clean Water Act. Street sweeping is a "Best Management Practice" for storm water control. Street sweeping removes important amounts of pollutants from City streets. Street sweepers support the City's Healthy Community goal by removing debris and pollution that otherwise would be whisked into the air by passing vehicles or flushed into storm water drains by rainfall and other means. Other purposes of street sweeping includes; improve or maintain the appearance of streets and neighborhoods; assists with the improvement of property values; removes debris from streets to prevent accidents; and reduces the likelihood of disease and vector problems.
CURRENT YEAR FISCAL IMPACT
The current street sweeping monthly rate is $11,211.25. Approval of Cannon Pacific Services, Inc. requests increases the monthly costs street sweeping costs by $770.22, new monthly rate of $11,981.47 for a total annual cost of $143,777.64. Sufficient funds are budgeted in the Public Works budget.
ONGOING FISCAL IMPACT
Subsequent fiscal years will be approved through the annual budget process.
ATTACHMENTS
1. Cannon Pacific Services, Inc. RFB
2. Cannon Pacific Services, Inc. street sweeping contract
Staff Contact: Tim Ripley, Public Works Manager / Street Division