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HomeMy WebLinkAboutAgenda Statement 1986/09/02 Item 6 COUNCIL AGENDA STATEMENT Item 6 Meeting Date 9/2/86 ITEM TITLE: Resolution/9 9 7Amending the Agreement between the City of Chula Vista and Chula Vista Sanitary Services, Inc. to provide street sweeping services //YSUBMITTED BY: Director of Public Works/City Engineer i, 4t//// REVIEWED BY: City Manager (4/5ths Vote: Yes X No ) On August 14, 1984, the City Council approved an agreement between the City of Chula Vista and Chula Vista Sanitary Services, Inc. , to provide street sweeping services within the City of Chula Vista. The agreement was for a period of one year with two extensions, optional on the City' s part, for one year each with an escalator based on the San Diego Metropolitan Consumer Price Index (All Urban) as of May and two more mutually optional years with the contract price to be renegotiated each year. On September 3, 1985, an extension to the agreement was approved by the Council for one additional year. On November 12, 1985, the City Council amended the agreement to provide for changes in sweeping frequencies on some streets. Effective January 1 , 1986, the agreement was again modified to include streets in the Montgomery area. This second year of the agreement expires August 31 , 1986. RECOMMENDATION: Adopt the resolution extending the agreement for one year until August 31 , 1987, and appropriating $6,000 from the unappropriated Gas Tax Fund balance to the street sweeping contract account. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The original street sweeping agreement provided a lump sum payment of $134,788 for all of the street sweeping included in the original proposal . It also provided for additional work to be done at $11 .00 per curb mile or $30.00 per hour, whichever was appropriate. Section I of the agreement provided that if the contract is extended, the unit prices would be based on the change in the San Diego Metropolitan Price Index (All Urban) not to exceed 6% per year. The first extension to the contract approved in September 3, 1985, increased those prices to $142,067 lump sum, $11 .59 per curb mile and $31 .62 per hour respectively. In November 1985, the agreement was amended to provide for a revised schedule of sweeping on certain streets. The original agreement provided only two levels of service for public streets: the streets were swept either three times a week or once every two weeks. The amended schedule provided a "middle-ground" level of service where certain streets are proposed to be swept once every week or twice a week. The net increase of 550.46 curb miles swept annually was to be paid at the original contract curb mile rate. Effective January 1 , 1986, upon the annexation of Montgomery, the contract was again amended to include 67 miles of streets and center islands to be swept at various frequencies. The rate for the additional Montgomery area was negotiated at $10.00 per curb mile per sweeping. Page 2, Item 6 Meeting Date 9/2/86 During the first two years of the contract, approximately 797.96 curb miles (on an annualized basis) were added to the contract using the additional mileage multiplier ($11 .59 per curb mile during the second year of the contract). The May 1985 Consumer Price Index indicates a change of 2.3% for the San Diego Metropolitan area; the percentage to be used to calculate the third year cost. The lump sum amount of $142,067 increased by the change in the CPI is $145,335. Based on that increase, the third year extension to the agreement provides for the following costs: Original Streets: Lump Sum increased by CPI $145,335 11/85 Service Level Adjustment: Lump Sum increased by CPI 4,584 TOTAL LUMP SUM $149,919 Additional Sweeping Per Curb Mile $11 .86 Per Hour $32.35 Montgomery - Per Curb Mile $10.23 Using the above rates, the estimated cost of the third year of the sweeping contract is as follows: COST Base-sweeping of streets accepted $149,919 prior to September 1 , 1984 • Sweeping of Montgomery area $ 32,271 streets • Sweeping of public streets accepted $ 9,464 between September 1 , 1984 and September 1 , 1986 ▪ Sweeping of public streets $ 5,776 anticipated to be accepted subsequent to September 1 , 1986 $197,430 FISCAL IMPACT: $191 ,430 was appropriated for street sweeping during Fiscal Year 1985-86. Therefore, an additional $6,000 is required to fund the agreement for the remainder of the fiscal year plus the anticipated additions to the City's street mileage. It is recommended that the City Council appropriate $6,000 from the unappropriated Gas Tax Fund balance to Account 100-1440-6203. .• WPC 0012S •y the City Council of Chula Vista, California Dated 04' '