HomeMy WebLinkAbout1982-12-07; City Council; 7128-1; Award of Contract Street Sweeping Bid• N
00
Cl'\
r-1 ..
r-1
N
j i I
! ·q..i
I 0
' tl'l !
]
-~
I ~ •
-·l .8
I I f • ,, §
f i j ·~-f
' ' ~ ;
!
.. m
V ~
!
I'
N
00
I ~
,I
C
L1J > 0 a::·
0. c..
~
.. z
0
~ cc
.J
0 z
:::t
0
CJ
CITY~F CARLSBAD -AGENDA,fLL {D
AB# 71:;;tf-•J I1IL.E; .
MTG. 12/7/82 AWARD OF CONTRACT STREET SWEEPING BID
DEPT . ...;;.;M=N=T __
DEPT. HD. __
CITY A TTY \ )Fl:)
CITY MGR.~
RECOMMENDED ACTION:
That Council adopt Resolution No. 70J>'(,_ , awarding the contract
for City street sweeping· to Chula Vista Sanitary Service, Inc.,
db~ North County Co~tract Sweeping for a three (3) year period,
January 1, 1983 to January 1, 1986 and waive any informalities in
the bidding process.
ITEM EXPLANATION:
On August 17, 1982, the City Council authorized staff to proceed
with request for proposals to contractural street sweeping.
Specifications were developed and sent to nine companies. Only
9ne company responded and their bid was $119,600 annuaily. Staff
has verified their references for the contractor and found them
satisf?ctory.
Bidder has agreed. to buy three City machines per provisions in
the bid for $18,500.
City did not address the five cur~ miles downtown, thus Council
needs t6 waive the informality in the bidding process. The bidder
has requested a review of the CPI annually for price adjustment
which staff does hot recommend at this time.
Bid specific~tions state that the Assistant City Manager/
Operations and Maintenance may decide any misunderstandings or
discrepancies and is binding on the contractor.
FISCAL IMPACT:
The annual cost of street-sweeping using City forces is approximately
$148,685. eontract sweeping would cost approximately $119,600.
The City would save approximately $29,085 by contracting for the
service.
$59,000 is needed to fund the contract for the balance of the
fiscal year. These funds are available in the Street, Mechanical
Maintenance Operations & Maintenance budgets, plus the sale of the
City's three sweepers.
EXHIBITS:
1.
2.
Resolution No. 7of'{ , awarding bid to Chula Vista
Sanitary Service, Inc., dba North County Contract Sweeping
and waiving any informalities.
Assistant City Manager/Operations and Maintenance letter of
November 3, 1982.
I
NOVEMBER 9, 1982
TO: CITY MANAGER
FROM: Assistant City Manager/Maintenance and Operations
CONTRACT STREET SWEEPING
Earlier this year, the Street Maintenance Department com-
menced a study of its street sweeping service. It was determined
that in order for the City to continue the street sweeping
.program two new street sweepers would be required to replace
aging equipment. As an alternative staff was directed to look
into contracting for street sweeping. A bid has been obtained
from a contractor to provide street sweeping •. This report
will compare the cost of street sweeping by the City vs.
contracting for the service.
Cost for City Operated Street Sweeping Program
The City currently sweeps approximately 10,400 curb miles of
streets annually. Approximately 2,650 sweeping hours are
provided. The street department budget provides for three
street sweeper operators and operating expenses for the
program.
The City does not separately account for the cost of the
street sweeping program. The following is a summary of the
estimated annual expense of the program including capital
costs of equipm1 mt.
ANNUAL STREET SWEEPING COSTS
CITY OPERATED
·Personnel
Operator's Salaries
Labor Overhead
op·eration· and· Maintenance
Parts and Labor
Brooms
Fuel
Dump Fees & Hauling
Capital
$52,373
1·s, 112
$68,085
$21,300
18,000
9,300
2,000
$50,600
Annual Cost $30,000
(Capital cost is based on the cost of
2 street sweepers at $75,000 each with
a useful life of 5 years. The cost of
2 sweepers would be $150,000 divided by
5 years.)
ESTIMATED TOTAL ANNUAL
COST
$148,.685
t
-r
'
\ ;
November 9, 1982
Page 2
Contract Street Sweeping
Although the City currently only employees two sweeper operators,
the budget provides for three positions. The Maintenance Dept.
feels that three operators are required in order to adhere to
the sweeping schedule due to vacations, sick leave, and other
scheduling problems. The City has trained other employees to
serve as relief drivers, at the present time, in order to handle
the scheduling problems.
Cost o·f· Contra·cting
Requests were sent to nine (9) nearby firms, (listing attached),
known to provide street sweeping services. Only one response
was received. The same nine companies were asked to bid by
the Cities of Oceanside, Poway, Santee and Vista regarding
their street sweeping contracts. The only bidder who responded
to our request responded to their ~equests. The lack of responses
was investigated and determined to be due to the distance from
firms' base of operations and where the work will be performed.
The submitting bidder offered: their services annually for
$119., 600 for a three (3) year period, to purchase the City's
three sweepers for $18,500, and to hire both of the City's
street sweeper operators.
The sole bidder, Chula Vista Sanitary Service, Inc., dba North
County Contract Sweeping, is a wholly owned subsidiary of
SCA Services, Inc. of Boston, Mass. SCA is the third largest
solid waste coilection and disposal service in the nation. The
subsidiary provides comprehensive solid waste services to the
City of Chula Vista since 1956, solid waste collection to the
City of Oceanside, since June, 1979, and street sweeping services
to the City of Oceanside since June 1981, City of Vista since
January, 1982, City of Poway since March 1982, City of Santee
since July 1982, and City of Imperial Beach since October 1982.
The using municipalities have complimentary reports on the
services provided with minimum complaints or discrepancies.
Qualifications of the contractor are available at the office
of the Assistant City Manager/Operations and Maintenance. The
bidder requests a CPI adjustment clause be included in the
agreement for implementation of the second and third years.
Staff does not recommend a CPI adjustment but agrees with
increased dumping fee request, also that increases of the County
landfill fees be added to the contract.
The estimated annual cost of city operation is $148,685. The
estimated annual expense by contracting is $119,600. The
estimated annual saving is $29,085. It is recommended that
contract sweeping begin January 1, 1983. The cost of the
contract for the remainder of the fiscal year would be $59,800.
·rhough savings on operations and maintenance and the sale of
,,
!
-November 9, 19 82·
Page 3
Contract Street
Sweeping
the surplus sweepers the contract can be funded out of the
current street department budget and no additional appropriation
wouJ.d be required.
The oidder has offered to hire the City's two street sweeper
operators. If these persons do not desire the employment with
the contractor they can readily be absorbed into the Maintenance
Department.
They will be assigned as Street Maintenance Worker II, pay range
25E. This is an appropriate assignment for the work they will
be doing. The inclusion of two additional persons in the
Maintenance Department will allow the establishment of a "Red-
Dog Crew.'! The two persons assigned will be responsible for
responding instantly and correcting citizen complaints that
can be readily handled. They will be in a radio-dispatched
pick-up truck with appropriate hand tools. When not actually
responding to or correcting complaints, they will be inspecting
the City to correct problems, which will minimize complaints.
In the event that the City's two street sweepers terminate em-
ployment with the City, the positions should be abolished and
no replacements hired. The third street sweeper operator's
position, that is now authorized, but not filled, should be
abolished if the contract service is approved! This will
result in a savings of approximately $24,000 per year.
Advantages of Contract Street Sweeping Services:
-Eliminates down-time of equipment due to maintenance and
repairs. Contractor will provide necessary equipment as required.
-Eliminates down--time of equipment due to lack of operators due
to vacations, illness, etc. Contractor will provide necessary
personnel to operate equipment as required.
-Frees the vehicle maintenance shop from sweeper repairs.
Sweepers require a high degree of specialized maintenance
and normally receive a higher servicing priority than other
equipment.
It is recommended that the City Council accept the proposed
bid, authorize the Assistant City Manager/Operations and
Maintenance to be the coordinator of the contract to assure
compliance with all aspects of the contract.
WILLIAM C. BALDWIN
Assistant City Manager/Operations
and Maintenance
WCB:gb
TO: Mayor Casler
Councilmember Kul~hin
Councilmember Lewis
Councilmember Chick
Councilmember Prescot
FROM: Assistant City Manager -Operations
AGENDA PACKET, ITEM 30, AB 7128-1, PAGE 1,
MEMO TO CITY MANAGER FROM ACM/OPERATIONS
December 7, 1982
The paragraph entitled, "Cost of City Street Sweeping Program" has some changes to
some of the figures listed as costs which are in error. They are corrected as follows:
Personnel:
Operato~'s Salaries
Labor Overhead
$ 52,373.00
151 712.00
Operation and Maintenance
Capital
Parts
Labor
Outside labor
Brooms
Fuel
Dump & Haul
Annual Cost
$ 5,800.00
8,450.00
3,000.00
5,000.00
8,500.00
21000.00
(Capital Cost is based on the cost of
2 street sweepers at $75,000 each with
a useful life of 5 years. The cost of
2 sweepers would be $150,000 divided by
5 years.)
ESTIMATED TOTAL ANNUAL COST
$68,085.00
32, 7.50. 00
30,000.00
$130,835.00
The successful bidder has agreed to pay the City of Carlsbad $18,500 for the City's
three sweepers. There are conflicting opinions regarding amortizing this money over
the life of the contract. If it is correct to amortize, then the City would save an
additional $6,166.66 per year of the contract period:
Purchase Price $18,500 + 3 years= $6,166.66
The successful bidder has also agreed to purchase parts, tires, etc. now in stock.
Staff is of the opinion that this inventory is worth $2,000 -$2,500. The above costs
are all verified by staff.
WILLIAM C. BALDWIN
' ,,
\
;j'
~
'I
' ·,
~
,l
U~cernber G, 1982
City Council Members
City of Cat:lsbad
1200 Elm Street
Carlsbad, CA 92008
Deur City Cow1cil Members:
----------~-----
.£., • .df,,9,f,i, C!d/ 91N26
{213) 412-$41/J
!AD. !J3.,,, 61,3
.:S:,n 13nna,Jt,,.,, f.!d/' Ql41Z
{714) SS<J•!J271
On behalf of the Carlsbad City Employees Association, we request
½hat the Council vote no~ to-contract out stract-swe~ping services
to North County Contract Sweeping, a wholly-owned subsidiary of SCA
Services, Inc., of Boston, Massachusetts.
The City Manager's office claims that it would have an estimated
annual saving of $29,085 by contracting-out street sweeping. ,Qt\r
budgetary analysis, however, indicates that the City would lose $21,100
a1,oually oy contracting-out. 'l'his loss, moreover, would exceed $50,COO
in the first calnder year, if the estimated trade~in value of thcCity
owned sweepers are calculated. (See attachments).
We raise serious questions about the manner in Hhic.h.:.the ... (l:±:i?Y
Administ!'ation has estimated costs for operation of street sweeping in
order to justify contracting-out. When the matter was first raised the
Administration claimed that the cost of operation was astronomical.
nut e~en the present estimated costs bear no real relationship to the
actu<1l costs as presented by the Equipment Maintenance Supervisor and
the Storekedper.
In addition, the City Manager's Office has claimed that it has
been rebilling the County of San Diego for sweeping El Camino Real
for revenue of over $6,000 per year, and at new rebilling rates of $45
per nour, for revenue of over $12,000 per year. Yet, in discussions
with the City'~ Finance Director no such ;:evenue appears in the Budget.
f:'i11ally, r draw your attention to the attached material from the
Organizi=d Cri1ne IotP-lligence uivision of the LOS Angeles Police Department
w!1ich lists tha uxtensive links between SCA Services and organized crime.
Furthermore, it points out that SCA has been indicted for price-fixing,
toxic waste disposal, and is being investigaged by the Internal Revenue
Service which has accused them of failure to report $4, 7 million in income.
I urge you to read this report. Does this City Council really want
to contract with a wholly-owned subsidiary of SCA? Will the Council
relec1se the information on this ce'.\mpany to t:ho city's citizens at the
Sclme time it lets such a contract?
I might add that the budgetary information and the accusation
against SCA was given to the Assistaat City Manager last week. I offered
to supply documantation regarding links with organized crime and price-
fixing charges if -the item would be held over. Instead it was scheduled.
We urge you to vote against contracting out. The City can provide
0
◊:
i
I
. J
l
I
I
t
i
t
t
::::::7 --
-2-
the service cheaper, with better regard for the need::. of its citizens and
the community, and without subsidizing a corporation which wa~d-discredit
this City if it were given a City-contract.
Respectfully,
~~Vo{u,~-
Paul B. Werthman
Executi'<'e Director
-!
)
,,, :,
:t
r---.
,t ~.., ·.
• !
t
I
,, _I
IS IT X~ST r~fFEC'rIVE -R GAttCGBAD ro CONTRAC'f 0U~S1'REE1'-SWEEPING
_ 'l'O PR1VA·1•r; COWfRAGTOR 1iQR _KN itNNUAL cos·r OF $119 ,~?
COS'r ACC 1)RDIHG 'fO CITY MANAGER
MEMO OF NOVEMBER 9, 19$2
Operator's Salaries -$52,373
Labor Overhead ( Jv,!,) -$15, 712
!6b8,085
Operation and Maintenance
Parts and Labor
Brooms
Fuel
Dump Fees & Hauling
Subtotal
Capita!
-$21,300
-$1$,000
-$ 9,300
-$ 2,000
$50,600
-$118,685
Annual Cost -$30,000
(Based on cost of 2
sweepers at $75,000
each with useful life
of 5 years)
ESTIMA'fED TO'l'AL
ANNUAL COST
Contractor's Purchase
$1Li-8,685
of City Equipment -$18,500
Initial Calenuer Year
Cost $130,18~
Notes
ACTUAL COSTS ACCORDING TO STOnEKEEPER,
EQUPT. SUPT., & BUDGET DOCUf4ENTS
Operato~•s Salaries -$J6,630 (1)
Labor Overhead(JO~),,-$101989
$k7,6l~
Operation and Maintenance
Parts and Labor
Brooms
I•'uel
Dump Fees & Hauling
Subtotal
Capital
-$15,180
-$ 5,l~00
$ 9,300
-$1,000
$30,880
-$78,500
(2)
D)
(4)
Annual Cost $20,000 (5)
(Based on cost of 2
sweepers at $70,000
each with useful life
of 7 years)
ESTIMATED T01'AL
ANNUAL COST
Estimated Trade-In
$98,500
of 2 Sweepers -$30,000 (6)
Iai~ial Calender Year
Cost $68,500
{1) Actual salaries paid to; op~r~~ors, which is all street department
hD.:: uned, chspite budget -::i.rproval of 3 by Council for over 3 years.
(2) Parts and Lo.bar c~nt ca.lt'ulated from April 12, 1982, memo of store-
keeper (Attach. T), for 21 month period actual plus 15% inflation.
(July 21, 1982, memo of Equp. Maint. Sup. estimated $26,000 for
parts, labor and fuel. Backing out fuel leaves $14,700 parts and labor).
(3) Based on ApriT 12, 1982, memo (Attach I). Also Street Depts. entire
parts budget (which is where Brooms apply) is only $8300
(4
5
) Street Depts. entire Dumps & Hauling budget is$a,ooo. Estimate $1,000.
( ) Based on conversation with saJ.esman and with 6 other jurisdictions on
actual costs of Mobil sweepers and other's amortising of cost. No
specific request of salesman for actual cost was ever made.
(6) Based on conversation with salesman. No request for price ever made.
Submitted by Carlsbad City Employees Association -Kelly Irving, Represent.
and Professional Services Eaterprises, Inc., Paul Werthman, Director
.,
\
I
!
l-'RON: Storckcuper
SUBJ: Total Cost of l'art.s s. L•,bor on St.I ~·ut r.-.~uctH1rs 5-030, \. -
for the P~l."iod of July l, 1988 to N.1 r("h • 31. 1982..
-::--. -·..:..____ <:;" -
S-030
S-031
S-032
Subtotal
Brooms
TO'fAL
I' .,
I,
5929.10
4931.86
1714 ,98
$12575,94 --··--· -')
(_8,222.88 -~-
$20798,82
, .:46>1.00
2<b8. 00
959.00
20 Main Brooms 'e $207. 20 each -. S4144. 00 -'::J ......_ -t,-, 1 ·, ,, •· .. \ '1/
$2370.16 \ / 74 sets of Gutter Brooms@ $55.12 each -
S-031 & S-032
.Q!l!§._IDE LABOR .
1133.00
3564. 01
197. 00
$4894. 01
600.00
~ .
= $31,rn.a3 ,
,.--•· I 1 ·1
I I
l
. ... .-"
15 of the :-lain B1.·ooms wore r~placed by .n Dfo•JO .Rotary Broom G ~40.00 ench :::. $600.00\
t
Gutter Brooms drc niplaccd by
S tor.:,kouper
l
f.
t
,' r .
!, ' ..
:1
,, -
I
I
J
f
. )
I
l
i
I
I
:S"1JL'i 'd,1-, 8~
"f D B I l L BA Lb i..:.J I f\J
f ~~'l\
S~BrtcT
' I
,~~r;,s,fi,u,-. c:::,,.., MliNAl.,(:..R.j tn 11 ,,vTe:r.t,1rJ~F-oi>tRt7T'1CliUS
I<~ r,H J) • ~"{ LE.It E'3/..!\ 'Pr'1~1U\ h'l,'\1r..>fC:tJ1<\rJ<!i: S;...;ys='.RIN\~1'-lle:.,,J'r
G)\>\:.~ATif\lG-Q~~TS civ .S,,~i:.::i-~weer~~
.-. ---\ ---. -----
P~n.-rs -LnDoR. l).v-C> ~D~\ Fo P. F 'j -
.{ :l ~t, ~ C ,c.'~
A n'IAIN
,.
uJ1·114 ltli:-A~c\f~ R~Pfllk \.UC:. C_,vl.t\ e-s-r,mA11:.
Ex1i=,~.h,,-.H;. THf-,.i;:,t:t=uLL L1r-c:: ~~ 1>1G!st:: 1..•rJ11·s
1/•lfl/Jf<, ieo k1rohl.°'<
k i1rJJ ~ I ~ 9.t-L.
' :_,
-----7 -----,--
'
(
,,,,.
.. .,,··
Object
Account
Number
2210
2230
·-2330
2350
2411
2420
2430
2440
2450
, .~460 ~.
2470
2520
2550
2610
~ Z620
2630
2640
2650
2660 . 2670
2680
2690
2840
2960
2901
2951
~ ... ...,._.._,. --, _.., -----_,, -~-...,_,,...,~ -r.-.;"; ---,,........ ..... + "'t~ ...
:-.:.:.r1 p.:;.;~i: -••-;~:,,--•.;~:•y-~¥•---~-••~-~ti[ ~-il~i, • • -< if.it. ~ ,, '~ A -
iltb-c~~-~-11:F
::r~'? t, ~-.,1 ~.-~.._ ·--· I
l .
General Ol l : CARLSOAO Fund •
1982-8 3 ANIIUAL 0U0GET Oepartmenc Maintenance l
llAIUTEW\llCE & OPERATION DETJ\I L Streets 128
.
19~1-H2 19H2-H3 -ACCOUNT Estimated Departmen'i: Manager Councl l
DESCRIPTION Expend I ture Reguesi: Recommend at I on Approved -.
llci lity Expense 40,000 67,480 63,040 63,040
Street Lighting 4, 700, 8,085 s.oas 8,085
Machinery & Equipment Rental 10,000 12,000 12,000 12,000
Property Rental. 2,400 1,600 1,600 1,600
r .1crete Repair 40,,000 50,000 50,000 50,000
1Jffice Equipment Maintenance 110 150' 150 150 ' Uniform Maintenance 3,100 3,900 3,900 3,900
Auto & Truck Maintenance 8,000 '42'• 000 10,000 10,000
P~nFo~~ionnl Service 172,330 172,330 172,330 ~ (Tr~sh Fvnons~ 1,500 2,000 2,000 ' ) l Communication Equipment Maint. 1,050 ~ 1,300 1,300
Dues & Subscriptions 100 110 110 110
General Office Expense 300 300 300 300
~u~ l~ Materials 4,000 5,200 5,200 ~ t'far·d 7,000 .... S,300 ~ 8,300
Rock & Mineral Products 25,000 30,000 30,000 . 30, ffO"O
Radio & Electric -0--o--0--o-Petroleum P~oducts 31,500 6,000 6,000 6,000 t-Janitorial Supplies -0--o--o--0-
~special Supplies 21,000 21,000 21,000 21,000
Sign Materials & Supplies 19,000 35,000 35,000 35,000
Expendable Tools 9,000 8,500 8,500 8,500
Travel Expense ~ ~ 150 410 410 410
J-lobi le Eguiement Maint. tK c,l~r_(? 55,000 -91,000 91,000 91,000 ~
SUBTOTAL 455,540 569,665 530,225 530,225
Services Performed for Other Depts. (21,720) -o--o--o-
Services Received from Other Depts. 11,860 -o--0--0-
-
TOTAL: Ha lntenance & Operat.lon Expense 445,6f0' 569,665 530',225 530,225
-
9.\
...... J;>-. -,--------------------... --.,
...
I'
<,
,·
l
l
11 •
~
,)
r
f
l
'. I
.
j
j ' ' l
• I
. ...
/ \.---·' . NOVEMBER 9, 1982 r
<
TQ: CITY MANAGER I
FROM: Assistant City Mnmiger/Maintenance and Operations A
CONTRACT STREET SWEEPING
Earlier this year, the .street Maintenance Department com-
menced a study of its street sweeping service. It: was determined
that in order. for the City to continue the street sweeping
program two new street sweepers would be required to replace
~ging equipm0nt. As an alternative staff was directed to look
into contracting for street sweeping. A bid has been obtained
.from a ~ontractot· Lo provide street sweeping. This report
will compare the cost of street sweeping by the City vs.
contract:lng for the service.
~ for City Operated Street Sweepj.ng Proaram
The C:j.ty current!} sweeps approximctte1yt£g~-4@<....1rb mile~of
streets annual+y. Approximately _2, 650 sweeping hours are ·
provided. The street department budget provides for t-hree
/ street sweeper operators and operating expenses for tne · -·
/program .
The City g__oes. noi:_sepanii"e)~cc<mnt ,for the cost of the
street sweeping program. The following is a sumr.iary of the
est.i.mated annual expense of the program including capj_tal
costs of equipment.
,. ANNUAL S'l'REET SNEEPING COSTS
CITY OI{ERATED I
Personnel_ '\,
, ~10perator I s Salaries ~ Labor Overhead l
Operation and Maintenance
~Parts and Labor
B1·ooms
Fuel,
Dump Fees & Hauling
£ilpital
~52~ 3 /3
15, 71?_
$68,085
Annual Cost $30,000
(Capital cost is based on the cost of
2 street sweepers at $75,000 each with
a Y.Stl\l...,l.J:, i {9.-a.L~1._y2,;:ir s . The cost of
2 swocpcrs woulo be· "$150,000 clivided by
5 ycan;.) _________ _
ES'l':CMi\'l'ED 'fO'l'AL ANNUM, •~1 ,1p , ,r.
---
I:
I
I
I
i
I
I
November 9, 1982
Page. 2
Contract Street Sweeping
Although the City ctl_rr_e~tJ_y _QDJ.Y.-~ITIP!Q.Y:..ees two sweeper operators,
fl'"~he budget provides __ £or three .position,s ... Tne Mairi"tenance· Dept. -
I 1feels that three operators .are required in order to adhere to
\\~he :we~ping schedule due to. v~tj Q_ns, sick leave,. and' ot~_~r
~cheauling problems. The City has trained other employees to
serve as relief drivers, at the present time, in order to handle
the scheduling problems.
Cost of.Contracting
Requests were sent to nine (9) nearby fir-ins, (listing attached),
knO¼"'n to provide street sweeping services. Only one response
was received. ·The same .nine companies were asked to Qid by
the Cities of Oceanside, Poway, Santee and Vista regarding .
their street sweeping contracts. The only bidd·er who responded
to out request responded to their requests. The lack oE responses
was investigated and determined to be due to the distance from
firms' base of operations and where the work will be performed.
The submitting bidder offered: their services annually for
$119~~00 for a thye (3) year period, to purchase the City's
1_hr~e swe:~ and to hire both of the City's
se-t-eeL s1v1:.eper operators.
, {The sole bidder, Chula Vista sanitary Service, Inc., dbs3-Nar_th
: ):o.unty Contract Sweeping, is a wholly owned subsidiary of
!'\SCA Services, !nc. of Boston, Mass. SCA is the third .largest
I solid waste collection and disposal service in the nation. The
subsidiary provides comprehensive solid waste services to th~
City of Chula Vista since :J,956, solid waste collection to the
City of Oceanside, si1,~e June, 1979, and street sweeping services
to the City of Qceansjde sin9e June 1981, City of Vista since
January, 1982, City of Poway since March 1982, City of Santee
since July 1982, and City of Imperial Beach since October 1982.
The using municipalities have complimentary reports on the
services provided with minimum complaints or discre~anci6s.
,,.Qualifications of the contractor are availdble at the office V of the Assistant City Munager/0perations and Maintenance. The
bidder requests a CPI adjustment clause be included in. the
agr.ee·ment for implementation of the second and third years.
Staff does not recommend a CPI adjustment but agrees with
increased dumping fee request, also that increases of the County
landfill fees be added to the contract.
The estimated annual cost of city operation is $148,685. The
estimated annual expense by c -~~g is $119,600. The
estimated annual saving is ,085. tis recommended that
contract ~weeping begin Jan l •✓983. The cost of the
contract for the remainder of the fiscal year would be $59,800.
·rhough savings on operations and maintenance and the sale of
IJ
I
;I
November 9, 19829
Page 3 '-• Contract Street Sweeping
the surplus sweepers the contract can be funded out of the
current street department .budget and no additional appropriation
would be required. ·
The biader has offered to hire the City's two street sweeper
operators. If these persons do not desire the employment with
the contractor they can readily be absorbed into the Maintenance
Department.
Th~y. will be assigned as Street Maintenance Worker II, pay range
25E. This is an appropriate as:;;ignment for the work they will
be doing. The inclusion of two additional persons in the
·Maintenance Department will allow the establishment of a "Red-
Dog ·crew." The two persons assigned will be responsible for
responding instantly and correcting citizen complaints that
can be readily handled. They will be in a radio-dispatched
pick...;up truck with appropriate hand tools. When not actually
responding to or correcting complaints, they will be inspecting
the City to correct problems, which will minimize complaints.
In the event that the City's two street sw~epers terminate em-
ployment with the City, the positions should be abolished and
no replacements hired. The third street stveeper operator's
position, that is now authorized, but not filled, should be
aboli-shed if the contract service is approvedl This will
E_e~ul~ in3. savings_of,_qpp_i;g_~_imatelY. $24,0QO per y~1;r.~
Advant;&ec; of Contract Street sweeping Services: ·
() -Eliminates down-time of equipment due to :aintenance and
'repairs. Contractor will provide necessary equipment as required.
' l ~rJ,,o~ -Eliminates down-time of equipment due to lack of operators due
C~./ \ to vacations, illness, etc. Contractor will provide necessary i
1
~ ~ personnel to operate equ.ipment as required. 1,¥~' Q
~ ;::-.; -Fre:~_!-h~ -¥-e.hi.cle-:-ma-i-n-t.enanc~-.s.bop_ ~.r.01~. s\~eep~l," £~!2c!4'r§. J sweepers require a high degree of specializca maintenance
v ;•\·and normally receive·a higher servicing priority than other
\ equipment.
It is recommended that the City Council ac½ept the proposed
bid, authorize the Assistant City Manager/Operations and
Maintenance to be the coordinator of the contract to assure
compliance with all aspects of the contract.
WILLIAM C. BALDWIN
Assistant City Manager/Operations
and Maintenance
WCB:gb
I
.I
OVERVIEW
RUBBISH INVESTIGATION
Organiz~d Crime Intelli~ence Divt~ion
Los Angeles Police Department
July 13, 1981
,i
' ..
An investigation has been conducted into the association between
Systems Disposal Service, SC A Services, Inc. and org~nized crime.
The conclusions and highlights of the supporting information are
presented in this report. .l,)~
1. S stem Dis osal Service of Cudad.fornfa. has no known
t1es or assoc1at1ons w1t organ1ze -crime 1n the Los Angele!_ ~-·.. ·-··
• 'i' ~ ~ -
Thdis portion of the investig~t~9·"· w.~~-ba~(!d· up~n-reieard{.'. .. ._;/.:·.l~_;)·.
an interviews in the Los: Ani~J~.f. are~~-· : • · ... :}-;:'.:. .... ,_ ;. ·Xt:~!
2. S~stem Disposal Service is a subsidiary>of· S C A Services:. Inc •. , · ·. ' . .:.
~ir:~~f~~,a~d~~~~~~~ts, and i_s su_bse~vie:"~· to_ ~~s._parent:. c?~1~:~n~•~; -j:, .:: :~r)~
j I • : , ' -,,.,-'• • ~ ,t ", {
This conclusion was· based upon interviews with offfcial's fr.om-~\:> ·, ·",:.
both Syste'!' Disposal Servic~ af)d s ~ -A Service~, ,Inc • .'·, Ttj~;:_ >:)::·:t·;· · ·;:_,[
1980 Secur1 ty ·Exchange Col11ll1·ssfon Annual Report a 1 s9. · --· .:: , · ·. ~: ·· ·•·.
substant·iates this conclus.ion.. · ~ · · ~
3. S CA Services, Inc., of Boston, Massachusetts, has been linke'd··
to organized crime associations in Michigan and New Jersey throuqh_
a joint invest1qat1on conducted by federal and state law enforcement
authorities.
These alleged associations are supported by testimony to the.
House of Representatives Subcommittee on Oversight aQd·
Investigation Hearings on organized crime in the waste
disposal industry. This testimony was given on December 16.
1980, and May 28, 1981.
The organized crime associations were described by Harold
Kaufman, a federally protected witness, and Lieutenant Colonel
Justin Dintino of the New Jersey State Police.
The investigation into New Jersey•s waste disposal industry
has been ongoing for three years-The involved agencies
include:
,. ~,. . ~i ~~-~~rsey :;~ate Attorney General's
3 Organized Crime Strike Force
4 New Jersey State Police
Office
The investigations involve the use of informants, other than
Harold Kaufman, and electronic surveillance. All of· Kaufman's
testimony was corroborated by independent law enforcement
investigation.
. : ' ... "
I,
'. : ', .\_ .. _"~\..~ .. ~~-~·~ ~
,,. ~ ,,.,~ .
·-11' • • : ' . ~. . . . . ' ..
-2-
The alleged associ~tion fn Michigan relates to Tri-County
Sa.nitation. Company in Detroit, Mi.chigan. Tri-County Sanitation
was i denti fi ~d, ~~ a m~ff ~ contro 11 ed COl!lpany in 1963 by the
United State~ -~~rtatfFt-1cC·le11an CorirQittee Hearings. T~e names
o~_Jo~~ph Sarb~ra. Jr._(sor. of the host ~f the Appalachian
meeting) and Pei·e~0Vitale-were. also ass,01cated with the company.
The: V•ital~· fainHy fJa~, ·been· pu~,l~cly. identified as vcapos"
1.-• th~ Detro,i'~·,.~r~~ mafi~·.qr,ganfiatioh .• Nicholas Micelli
· 1s: the· son;.in..flaW::,of ./Pet-er.· Vitale~ · . . . ·. .
•: , •.-~ "t • • . .,-,:••;~{-:.;\: • .: .. ~• • I-r •._, _• ~ , , " • ,
S:_ c A. $erv:i~~~{:ifl.~f'~::.P,~tc;ha~ei. Tr.f:~~o~nt,y., Sanitatfo~ in l972~
Ntchola~· Mic¢1lt:·:wa~:,th~,o~rJ~r at ·the., ti.IP~. ancU s c· A retained
h!m.· as Gen~f~ l _ ~~~~~g.~r _atj9•:Contr~ 1 lf!r of'""the new. s~b~idi ary.
M1celU' term11Jat~d.:'1;t~;:~!11P_loymept. \!nth S C A irj 1974-. . ·
... .~.: .. ~1(".,. , .:~
Th~: alleged ·associatid~-. .fn:·New·.Jersel relates ~0 the mob
~orttrqlle~. Teani~t.er~ .. ~o~a1J45 in W.~st. Pat~~rs(?n, New Jersey.
. tSee:·Addendum ~-Jl ~Jijs bnfo". ·is· co~~rolled· by the Genovese ·
crime· famf ly irLNew .. .Yor.lt;.,. The union acts as a rr.ediator to the rigid· sys~~ijt:of -~ie·roper'ty: Rights" and enforces its
decisions by .tijreat~: an'if"·acts or·violence.·
In the early 1970 1 s, St A S~rvices purchased a number of
smaller disposal companies and retained their management
employ~es!' Several of, these smaller companies al ready ·had
tie~ to organiz~d crim~. Many of ttiese companies employees
al~o belonged ~o Tea~~ters Local 945.
One SC A Services subsidiary, operated by Cresent Roselle and
~is brothers. was involved in a "Property Rights" disagreement
with Gabriel San Felice. Organized crime figures were involved
fn settling this dispute in favor of Roselle. San Felice was
subsequently executed in gangland style in May, 1978.
A similar dispute between Cresent Roselle's company and an
independent company owned by Alfred OiNardi resulted in DiNardi's
gangland style killing in Jun~, 1976. The disputed contract
was returned to Roselle-'s company subsequent to Di Nardi 's
death. Eight companies were solicited to re-bid for this
contract. but ~oselle.'s bid was the only one submitted.
In· 1973, S C· A S~rv1ce~ acquired United Carting Company owned
by Ralph Mastrangelo. Mastrangelo eventually became a corporate
officer for SC A Services assigned to the Corporate Development
Department. In 1972, Mastrangelo and August Vergalitto were
involved in the extortion of a New Jersey contracting company.
An indictment was handed down but was soon dismissed in the
"interest of justice". Vergalitto is a known associate of
John Riggi. the acting boss of the OeCavalcante crime family
f n flew Jersey.
I -,
J
t
I
I
!
'
I
!
1
l , I
t
In 1972, the Ic~.metti Brothers sold their solid waste company.
Impac Incorporated of Paramus, New Jersey. to SC A Services.
The brothers entered into employment contracts with SC A
Services and continued to manage their former company. In
1989, a surveillance observed Peter !orrmetti meeting with
Ernest Palmeri, the business agent for Teamsters Union
Local 945 .• and Luis 11 Streakey 11 Gatto, an alleged enforcer
for the G~novese family. SC A's corporate directory listed
Peter Ionmetti as_ a· "Di str1 ct Manager". ·
Fede~al ~i~nes~. Harold Kaufman also alleged that Thomas Viola.
who joined S CA Services in 1972 and eventually became President
and Chai nnan of the Board·, knew about af)d supported the "Property
Rights" cuncept and used 11muscl~." to intimidate other New .Jersey
operators.
Lieutenant Colonel Justin Dintino testified that it was· unbelievable
to him t.hat Thomas Viola, who has been in the rubbish business
in N,ew Jersey since 1950, could plead ign.orance to "Proper.ty·
Rights" in the State of New Jersey. Dintino contended that
Viola is "either the most naive per~ on involved in the solid
wast~· industry or the least infonned citizen i-n the State of
New Jersey, let alone a top executive of a solid waste conglomerate
doing extensive business in New Jersey.11
Subsequent to the December 16. 1980, when hearings on these
charges were aired, several significant incidents have taken
place.
December 21, 1980 -Cresent Roselle was killed gangland style
March 16 1 1981 -Thomas Viol~ relinquished his position
as Chairman of the Board of SC A
Services, Inc.
March 31 1 1981 -Peter Iommetti terminated his association
with SC A Services. Inc.
The second hearing in front of the subconmittee was held on
May 28, 1981. Ralph Mastrangelo, also allegedly associated
with organized crime, was unavailable to testify.
June 23, 1981 -Thomas Viola submitted his resignation
to SC A Services, Inc.
July 6, 1981 -Ralph Mastrangelo terminated his association
with SC A Services, Inc.
"
•l•)
).
-4-
CURRENT INVESTIGATIONS INVOLVING SC A SERVICES, INC.
1. In June, 1980, a Federal Grand Jury charged SC A Services,
Inc •• and three other w~ste disposal firms with conspiring
to fix prices and allocate c;ustomers for solid waste
disposal in Atlanta, Georgia. The inves.tigat'ions are
being handled by the United States Department sf Justice.
2.
3.
4.
5.
NOTE: The indictmeni was di~mi~sed due to the makeup of
the Grand Jury. The investigation is still continuing ..
and an appeal to the dismissal of the Grand Jury 1s
pending.
Mecklenburg, North Carolina, County officials are investigating·
s C A's proposed toxic waste disposal site near Charlotte,
North Carolina. The point of concern involved SC A's
record of handling t...1xic wastes at its other disposal sites.
The Attorney General's Office in the State of Illinois is
suing SC A's subsidiary, Earthline Corporation, for illegal
dumping of toxic waste near a residential area.
The Internal Revenue Service has a current investigation
accusing SC A Services, Inc •. of failing to·report $4.7
million dollars in income.
•The Security and Exchange Commission is currently investigating
SC A Services in three different states for price fixing,
unfair labor practices and possible fiduciary duty violations.
The states involved are Georgia. New Jersey and Delaware.
,,,
j
,
( }
;
,l.
t
I
~
. . -5-
OVERVIEW .
THE BOARD OF OT.RECTORS
SC A SERVICES, INC.
ln, 197l, the Secµrity Exchange Corrmission initiated an investigation into
th~ corporate structure of SC A Services, Inc. This investigation was
brougbt about by the indictment and ultimate convictions of Christopher.
ReckUtis···and Burton Steir. Recklitis at the time was President of S C A'
S~1:.Yic~s, Inc~ while Steir was Chairman of th~ Board and the company's
founder. In 1979, Recklitis and Steir pled guilty to charges of diverting
.$4 million of corporate money to their· own use during 1974/1975. Working
wf t.h them in the scheme was Anthony Bentrovato, a close associate of
organized crime boss Tony Provenzano in New York. Provenzano is a "Capo"
in the Genovese family. As soon as the $4 million diversion was discovered,
Recklitis and Steir were fired. Steir eventually received.a two year
suspended,sentence and a $4,000 fine for his part in the scheme while
Reckli~ies spent !:ix months in jail of a two year sentence and received a s21 ;ooo fine.
Subsequently, an agreement was reached between the Security Exchange
Commission and SC A Services, Inc. That agreement required at least
two "outside" directors be appointed to the Executive Board of S C A
Services.
' There-ilrc currently nine members of the Executive Board of S C A S,ervices.
Inc. Of thase nine members. seven are considered "outside" directors
while two, Dick Chase and Henry Russell, are involvt.J in the daily
oµca·ations of the company. The "outside" directors have a variety of
backgrounds. SC A Services indicated that they prefer outside leadership
(i.e. directors) in order to uphold its image as a bonafied corporation.
i
J
...a.....::..::_
STRBET SWEEPING STATISTICS
JULY 1, 1981 to JULY 1, 1982
Total Possible Working Hours per year for 2 Sweeper Operators
(80 wor~ing hours per week)
Time sweepers were idle due to leaves, sick, vacation, comp-
time, holidays, etc.
Sweeper Breakdown time
Total Downtime for Sweepers (Includes equipment breakdowns)
Total Hours ot Actual Swe1.1ptime by Regular Sweeper Operators
Aduit:i.onal Sweeping time by Maintenance Workers
Total hours of Actual Sweeping Time
0
4160
988
350
1338
2822
300
3122 j,'
,,
I
l
" j
l
-----------~--~ -----------------
TO:
FROM:
Mayor Casler
Councilmember Kulchin
Councilmcmber Lewis. ·
Councilmc!mber Chick'
Councilmember Prescot
Assistant City Manager 9perations
AGENDA PACKET, ITEM 30, AB 7128-1, PAGE 1,
MEMO TO CITY MANAGER FROM ACM/OPERATIONS
.a.
~'CCluiier 7, ) <J82
.-
The paragraph entitled, "Cost of City Street Sweeping Program" has some changes to
some of the figures listed as costs which are in error. They are corrected as follows:
Personn~l:
Operato~'s Salaries
Labor ·overhead
$ 52,373.00
151 712.00
Operation and Maintenat1~~
Parts $ 5,800.00
Capital
Labor
Outside labor
BroomS1
Fuel
Dump & Haul
Annual Cost
8,450.00
3,000.00
5,000.00
8,500.00
21000.00
(Capital Cost is based on the cost of
2 street sweepers at $75,000 each with
a useful life o~ 5 years. The cost of
2 sweepers would be $150,000 divided by
5 years.)
ESTIMATED TOTAL ANNUAL COST
$ 68,085.00
32,7.59.00
30,000.00
.. $1301835.00
The successful bidder has agreed to pay the City of Carlsbad $18,500 for the City's
three sweepers. There are conflicting opinions regarding amortizing this money over
the life of the contract. If it is correct to amortize, then the City would save an
additional $6,166.66 per year of the contract period:
Purchase Price $18,500 + 3 years= $6,166.66
The successful bidder has also agreed to purchase parts, tires, etc. now in stock.
Staff is of the opinion that thia inventory is worth $2,000 -$2,500. The above costs
are all verified by staff.
WILLIAM C. BALDWIN
..
•'
(
·i ,~.,
GLENN E. PRENTICE
PUBLIC SERVICES OlHCCTOR
-· CITY
December 14, 1982
Mr. Bill Baldwin
Assistant City Manager
City of Carlsbad
1200 Elm Avenue
Carlsbad, CA 92008
Dear M~. Baldwin:
OF -OCEANSIDE
PUBI.IC SERVICl·S DEPARl MENT
RE: STREET 'SWEEPING -CITY OF OCEANSIDE
The City of Oceanside currently is contracting with Oceanside
Disposal a dba of SCA Services, Inc. for street sweeping ser-
vices.
The street sweeping contractor has two basic charg~s, i.e. per-
forming scheduled street sweeping per our contract specifications;
and, perf orining uns9heduled or emergency sweeping on :=.m "as needed"
basis.
To date the contractor is performing a·'!cor.ding to the contract speci-
fications. As in any city, there a·re from time to time specific
complaints concerning this operation. However, Oceanside Disposal,
i~ cotiJunction with the City of Oceanside Public Services Depart-
ment, works diligently in solving these minor problems. I have
also received favorable comments concerning this operation.
In general, the contractor has performed his duties as outlined in
the contract, and in my opinion has operated in the City in a pro-
fessional manner.
If you have any further questions concerning this matter, please
call me at 439-7143 ..
Sincerely, ,
111MuviF. t1h-f ~
GLENN E. PRENTICE
Public Services Director
GEP:AT
307 NORTH NEVADA STREET OCEANSIDE. CA 92054 TELEPHONE 1Jl1439.7143
619
I
?j ,.
,:
l
11 .,
i
1
l :f(
>' t ,t
1
t ~ i
l .,
'I
.\ :,,
I',
,/ {
.,
h
$75,000 for
COST OF. PURCHASING STREET-SWEEPERS (Mobil)_
CalTrar:i~-
san .i>ieCJ:<> Road Dept~.
Los. Angeles ~ad._ ~pt., -7 years
l
:. • 1
San Bernardino CitY, 1· years.
CITY I S CLAIMED ANNUAL COST FOR PURCHASE $30,000
. ' ACTUAL COST IF PURCHASED AT $69,500 ... 7 ye~ •• t2-Q., 000
, I
!
'
t ;,
;
r
I
'
i
t
' f
}
' }
' f ,.
z
tl,~
OCEANSIDE DISPOSAL
2880 Industry Street
Post Office Box 2169
Oceanside, California '92054
714/439-2824
December 14, 1982
Mayor Mary.Casler
City of Carlsbad
1200 Elm Avenue
Carlsbad, CA 92008
Dear Mayor Casler:
~ Fz~~ ~~
~
SERVICES
•On October 15, 1982 Chula Vista Sanitary Service, doing
business as (DBA) ~orth County Contract Sweeping, responded
to the City Request For Proposal (R.F.P.) based qn our care-
ful analysis of the R.F.P. specifications.
We based the annual cost of $119,600 on the estimated curb
miles to be swept. Thi~ method is the standard cost deter-
.min~tion in street sweeping by both the public and private
sectors. Our projected ~nnual curb miles was as follows:
Residential: 360 curb miles every other
week:
Miles
360 x 26 9360
E~ Camino· Real: 10· curb miles every
other week:
10 X 26 260
Downtown: 5 curb miles 3 times weelcly:
15 X 52 780
Total Annual Miles 10400
The R.F.P. requested an •estimated number of annual hours to
perform sweeping services in addition to travel time. These
numbers were simply divided into the annual cost to arrive at
an hourly cost by the.R.F.P. formula for bidding purposes.
It is important to note that the estimated travel time re-
lates primarily to trips ~o, the San Marcos Landfill to dis-
pose of collected sweep~ng materials.
There has been considerable discussion as to th~ cost of
municipal versus contract sweeping. Only the Council will
make a final determination in this case.
i'
-
Mayor Mary Casler
Page 2
December 14, 1982
The Council has two major goals in this matter. The flrst
is to provide the community with a scheduled level of service
to meet envi,ronmental quality and selected appearance standards.
Secondly, it must, achieve these standards by the most cost ef-
f~cient method.
In order to select the most cost efficient program, you have
to AXamine the following major cost factors:
Labor:
Equipment:
Wages and benefits for drivers, mechanics
and supervisors.
Age, reliability, condition, replacement
and rebuild costs.
·Maintenance: Prohibitative costs due to complexity
and hours of operation.
Parts: High usage and sole source procurement
result in expensive replacement.
Other costs to be considered include, fuel, disposal fees,
wat~r, insuranqe, legal and administrative overhead.
The bottom line simply equates to the fact that contract sweeping
is more economical. This fact has been verified in the Berryman
and Stephenson Report on Street Sweeping Program for the City of
Oceanside of February 3, 1981. Additionally, the League of
California Cities advocates contract sweeping as a cost saving
method to the community and taxpayers.
North County Contract Sweeping currently has sweeping contract
agreements with five San Diego County Cities. Our record of
service for cost, efficiency, quality, and dependability
speaks for itself.
Contract sweeping provides strict compliance with schedules
and work performance by contract requirement. Back up sweepers
and drivers are ensured ~y contract. Maintenance is performed
after sweeping hours and a full layett of spare parts and back
up inventory is maintained. These are standard business prac-
tices that numerous indiv-iaual cities cannot hope to meet or
surpass in todays econom~•.
North county Contract sweeping, a subsidiary of SCA Services,
Inc., has the experience and resources to maintain the streets
of Carlsbad in accordance with the high standards contained
in the R.F.P.
,,.
Mayor Mary Casler
Page 3
December 14, 1982
Attached is a packet containing the latest SCA Annual Report,
Biographical sketches of the current Board of Directors, and
other additional information.
In closing, I would like to state that there were numerous
errorenous, false and misleading statements made at the
CoUI1cil meeting Tuesday, December 7, 1982. With your
permission, they will be addressed individually and
in publ·ic this evening.
~~ ~ ~EID
District Manager
Oceanside Disposal and No~th County Contract sweeping
JR/dl
cc: Frank Aleshire
City Manager
Vincent Biondo, Jr.
City Attorney
~+ ........ -/ +~, Lee Rautenkranz -f>~ ...,..,= ~
City Clerk
Bill Baldwin
Assistant City Manager
r
1
1
2
3
4
5
RESOLUTION NO. 7084
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ACCEPTING BIDS AND AWARDING
CONTRACT TO CHULA. VISTA SANITARY SERVICE, INC.
FOR STREET SWEEPING.
WHEREAS, bids have been received by the City of Carlsbad for
6 City Street Sweeping; and
7
8
WHE.REAS, the bid for this service was $119,600 annually; and
WHEREAS, funds are available in Account No. 01-19-50-2470
9 for this contract;
10 NOW, THEREFORE, BE IT RESOLVED by the City Council of the
11 City of Carlsbad as follows:
12
13
L
2.
The above recitations are true and correct.
The bid of $119,600 by Chula Vi~ta Sanitary Service,
14 Inc, for Street Sweeping, is hereby accepted and the Mayor and
15 City Clerk are hereby authorized to execute a contract
16 therefore.
17 3. A~y informalities in the bidding process are hereby
1 8 waived.
19 PASSED, APPROYfD, AND ADOPT~D at a regular meeting of the
20 City Council held on the 14th day of December
21 the following vote, to wit:
22 AYE~: Council Ma!lbers casler, Kulchln and Chick
23 NOES: Council. Member I~wis
24 ABSENT: None
25 ABSTAIN: Cocricil r.~ P:.:escott
26
27 ATTEST:
28 ~ /.
ALETHA L. k
(SEAL)
1982, by
SLER, Mayor
;
'f