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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