HomeMy WebLinkAbout1995-04-18; City Council; 13110; RATE INCREASE FOR STREET SWEEPING SERVICES AND IMPENDING AGREEMENT EXTENSION9 0 l[E k q
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AB # /3’// 0 TITLE: RATE INCREASE FOR DEF
STREET SWEEPING SERVICES CIT
& IMPENDING AGREEMENT EXTENSION CIT DEPT.
RECOMMENDED ACTION:
Clu OF CARLSBAD - AGErlgA BILL
MTG. 411 4/95
CSD
1. Adopt Resolution No. 95- foo approving extension and amendment of the agreen
authorization for staff to reimburse contractor for actual solid waste tip fee costs in exc
of $28.00 per ton for the period December 1, 1994, through November 30, 1995;
authorization for payment to Contractor of all funds due upon execution of said exten
and amendment of the agreement.
for an additional year through November 30,1985, with new curb mile and hour\y re
ITEM EXPLANATION:
The City Council adopted Resolution No. 92-311 on October 20, 1992, approving
agreement with R. F. Dickson Company, Inc. for street sweeping services. Currently,
agreement is on a monthly basis pending extension through November 30, 1995. It cai
extended on an annual basis, one year at a time through November 30, 1996, for a maxir
of four terms, upon mutual consent of the parties. It is staffs recommendation, howeve
extend this agreement for only three terms and to solicit bids on a new agreement to becl
effective December 1, 1995.
Upon execution of the current agreement, the cost for disposal of debris at the County lai
was $28.00 per ton. Effective July 1, 1993, this rate increased more than 50% to $43.0C
ton. Another $1 2.00 per ton was added July 1, 1994, for a new cost of $55.00 per tor
less than two years, this was a ninety-six percent (96%) increase. Although the agreer
states that debris disposal is the responsibility of the contractor, compensation has I:
requested for these costs since increases greatly exceeded reasonable projections. Becc
the contractor has no control over County landfill costs and there is no provision in
agreement for cost realignment, staff feels that a fee adjustment is appropriate. Therei
staff met with Steve Dickson, President of the R.F. Dickson Company, on February 23, 1
to negotiate a reasonable compromise. Attached as Exhibit 2 is a letter of agreer
outlining the results of this negotiation.
Through negotiation, it was agreed that the contractor would be responsible for all de
disposal costs for the first year’ of the agreement. The contractor’s request
reimbursement of these costs in excess of the original disposal price of $28.00 perton foi
term totaled $4,530 and was, therefore, denied. For the second term2, the City and
contractor mutually agreed to split disposal costs in excess of $28.00 per ton ($12,17€
with each party responsible for $6,088.24. The two parties further agreed that the City w
bear responsibility for all debris disposal costs in excess of the original $28.00 per ton fo
third yea? of the agreement. This is estimated to be an additional $1,529.82 per monl
$18,357.84 annually. An Extension and Amendment of the Agreement has been prep(
and is attached as Exhibit 3 for approval.
In addition to the adjustment for debris disposal costs, the contractor also requested a
‘ December 1, 1992 - November 30, 1993
* December 1, 1993 - November 30, 1994
3 December 1, 1994 - November 30, 1995
a a PAGE 2 OF AB# /3, //o
cost increase of one and one-hatf percent. Staff researched this request and found th
when compared with the Consumer Price Index (CPI), this request was within reasonal
limits. Operating costs continually rise and the CPI accounts for increases in such things
water, fuel, labor, and replacement parts. Therefore, it was agreed that staff WOI
recommend the unit prices be increased one and one-half percent effective December
1994, with the extension of the agreement. This amounts to an additional $1,403.40 for 1
third contract year".
Staff feels this negotiation was made in good faith and the results benefit both parties. 1
contractor's request for unit cost increases is fair and justified when compared to the (
which indicated a 4.6 percent increase for the year ending November, 1994. With fair E
justified compensation, the City can retain street sweeping services without risk of interrupl
or compromised quality. Therefore, staff recommends that Council authorize the Mayo
execute the "Extension and Amendment of Agreement" (Exhibit 2) and direct staff to proc
payments for all funds due as negotiated to R.F. Dickson Company, Inc.
Contractor Performance:
Prior to renewal of the agreement in November of 1993, the Contractor's performance \
below acceptable levels. Staff counseled the Contractor and placed him on a four mc
probationary period. Performance improved and the agreement was extended throi
November 30, 1994, in accordance with the provisions of section 12, "FUTl
ADJUSTMENTS TO CONTRACT PRICES AND WORK QUANTITY". Staff has continue(
monitor the contractor's work with periodic inspections and thorough investigation of e
complaint. Staff has found that most of the calls received were not all the contractor's fz
but a more plausible cause would be the transition from a bi-weekly to the current mon
sweeping schedule. At this time, staff is satisfied that the contractor meets an accepti
level of service.
FISCAL IMPACT:
Attached as Exhibit 4 are two tables which show disposal rate history for the first two y'
of the agreement. Table 1 shows disposal quantities and rates between December 1, 1'
and November 30, 1994. These costs ($4,530.00) have already been paid by the contrac
Through negotiation, it was agreed the contractor would bear these costs and there
would receive no reimbursement by the City.
Table 2 shows disposal cost information for the second year of the agreement. Negotiz
with the contractor resulted in the two parties splitting these costs in excess of $28.00 pel
which was the rate at the time of execution of the agreement. These excess costs *
$1 2,176.48; therefore, each party assumes responsibility for $6,088.24 for this term.
During the past twenty-four (24) months, the Contractor has disposed of 1,359.75 tor
debris. This averages 56.66 tons per month. Based on this average, 679.92 tor
sweeping debris will require disposal. With the current tip fee at $55.00 per ton, this cc
estimated to be $1 8,357.84. However, because the contract spans two fiscal years, the
seven months will be paid from FY94-95 funds and the remaining five months wi
budgeted for FY95-96. Therefore, the estimated cost for debris disposal through the et
this fiscal year, June 30, 1995, is $10,708.74.
4 December 1, 1994 - November 30, 1995
portion of the agenda bill:
COST DESCRIPTION 1st YEAR 2nd YEAR 3rd YEAR
Dec 1.1992-Nov.30,1983 Dec. 1983-Nov. 30,1994 Dec. 1 1984 - Nov. 30,1995
Sweeping (regular $86,181 .OO $86,181 .OO $87,492.00
schedule)
Sweeping (extraordinary) 6,160.00 6,160.00 6,252.40
Debris Disposal 6,088.24 18,357.84
TOTAL: $92,341 .OO $98,429.24 $112,102.24
Plus 1h disposal costs for second year
TOTAL REQUIRED through JUNE 30, 1995
FY94-95 funds spent under previous agreement term
Amount budgeted in W94-95
ACCOUNT BALANCE
Proratw
June 3Q1 1
$51,037
3,647
1 0,70€
$65,392.
6,088.
$71,481
37,986
124,680
$1 521 2
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EXHIBIT e 0
RESOLUTION NO. 95-100
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAC CALIFORNIA, APPROVING AMENDMENT TO THE AGREEMENT FOR STREE SWEEPING SERVICES AND AUTHORIZING PAYMENT OF ALL FUNDS DUE T( CONTRACTOR UPON EXECUTION OF THE AGREEMENT.
WHEREAS, the City of Carlsbad entered into an agreement effective Decei
1, 1992 with the R. F. Dickson Company to provide street sweeping services withi
City of Carlsbad; and,
WHEREAS, under the provisions of this agreement and by mutual consent c
parties, this agreement was extended for an additional year through November 30, '
and,
WHEREAS, under the provisions of this agreement, the contractor is respot
for disposal of all sweeping debris; and,
WHEREAS, the waste disposal rate upon execution of the agreement was $
per ton, disposal rates increased ninety-six percent (96%) since execution c
agreement, and are currently $55.00 per ton; and,
WHEREAS, the R.F. Dickson Company disposed of 619.77 tons of swe
debris between December 1,1993 and November 30,1994 for a cost of $1 2,176.4 I
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1 1 I disposal costs upon execution of the agreement; and,
WHEREAS, staff met with the President of the R.F. Dickson Compan!
negotiated a reasonable compromise for extension of the agreement; and,
WHEREAS, staff recommends that the R.F. Dickson Company be reimb
$6,088.24 for one-hatf the debris disposal costs in excess of $28.00 per ton for the I
of December 1, 1993 through November 30, 1994; and,
WHEREAS, staff has researched a request for a one and one-hatf percent un
increase and found this request to be fair and justified based on the Consumei
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increase and found this request to be fair and justified based on the Consumer Pric
Index (CPI) which indicates an increase of 4.6 percent for the year ending Novembc
1994; and,
WHEREAS, staff recommends a unit cost increase of one and one-hall percent 1
a new curb mile rate of $12.68 and a new hourly rate of $71.05; and,
WHEREAS, because waste disposal rates remain uncertain pending resolution
waste disposal issues, it is unfair to hold the contractor responsible for costs over wh
he has no control; and,
WHEREAS, under the provisions of this agreement and by mutual consent of'
parties, this agreement can again be extended for an additional one-year period; ani
WHEREAS, an amendment to this agreement has been prepared to reflect the r
rate of $12.68 per curb mile and the new hourly rate of $71.05 and allowing
reimbursement to the R.F. Dickson Company for debris disposal costs in excess of $2€
per ton and extending the agreement through November 30, 1995; and,
WHEREAS, adequate funds are available from the gas tax fund in the st
maintenance budget to cover additional costs through June 30, 1995, and adeqi
funds have been budgeted for Fiscal Year 1995-96 for costs through termination 01
agreement on November 30, 1995. I
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carl5
as follows:
1.
2.
The above recitations are true and correct.
The Finance Director is authorized to reimburse the R.F. Dickson Com
for one-half of sweeping debris disposal costs in excess of $28.00 PE
totaling $6,088.24 for the period of December 1, 1993 through Nove
30, 1994.
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3. The recommended unit cost increase of one and one-half percent frc
$1 2.49 per curb mile to $1 2.68 per curb mile and from $70.00 per houi
$71.05 per hour is authorized.
4. City agrees to provide for reimbursement of sweeping disposa\ cost
excess of $28.00 per ton to the R.F. Dickson Company for the agreem
period from December 1 , 1994, to November 30, 1995, as stated in
extension and amendment to the agreement.
Adequate funds exist from the gas tax fund in the street maintena
budget for the reimbursement of $6,088.24 to R.F. Dickson Company (
to cover the costs of the extension and amendment to the agreemen
The extension and amendment to the agreement for street sweer
services as presented is hereby approved and the Mayor is her
authorized to execute said amendment.
5.
6.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Carls
at its regular meeting held on the 18th dayof APRIL , l!
by the following vote, to wit:
AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hal
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk 1
(SEAL)
CKHlLIll L
February 27, 1995
Mr. Steven L. Dickson
R.R. Dickson Company, Inc.
12524 Clark Avenue
Downey, CA 90242
VERBAL AGREEMENT FOR STREET SWEEPING SERVICES
Thank you for meeting with us on February 23, 1995, to discuss extension of our
agreement for street sweeping services and associated costs. Although business
negotiations are seldom pleasurable, your cooperative nature helped us reach a suitabl
agreement. To recap our meeting, we agreed as follows:
e Contractor will be responsible for all debris disposal costs
for the period of December 1, 1992, through November 30,
1993.
Contractor and City will equally share the cost of debris
disposal in excess of $28.00 per ton, for the period of
December 1, 1993, through November 30, 1994. Total cost
for this period was $12,176.48. Each party will pay
$6,088.24.
Contractor will include disposal costs on monthly billing and
City will reimburse Contractor for disposal costs in excess of
$28.00 per ton for the period of December 1 , 1994, through
November 30, 1995.
Based on the Consumer Price Index, the City agrees to pay
a 11h% unit cost increase effective December 1, 1994,
through November 30, 1995. The new rates will be $12.68
per curb mile or $7,291 .OO per month or $87,492.00
annually. The City also agrees to pay $71.05 per hour for
additional work when requested by the Community Services
Director or his designee.
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We are currently preparing an agenda bill asking the City Council to authorize
expenditure of $6,088.24 as reimbursement for one-half the cost of debris disposal
LTW5056 ST
405 Oak Avenue - Carlsbad, CA 92008-3009 - (619) 434-2980 - FAX (619) 7204
0 0
February 27, 1995
R.R. Dickson Company, Inc.
Page Two
between December 1, 1993, and November 30, 1994, and approving an amendment at
extension of the agreement with the new provisions as specified above. Within the nex
ten days, you will be contacted to sign an "EXTENSION AND AMENDMENT OF
AGREEMENT" to be presented for Council's approval.
li you concur khat the provisions &ova are 8s vv'e agread, ;;!ease sign 5dcw 2nd retcri
this letter to me as soon as possible. Please understand that, although we have agrec
to the above provisions, this is just a proposal and City Council has final approval.
If you have any questions regarding this matter, please feel free to contact my office at
61 9-434-2980.
t
L
'y - / w DAVID BRADSTREET STEVEN L. DICKSl
Community Services Director President, R.F. Dickson Comp
DB:hlh
LTR35056 ST
EXH 0 0
EXTENSION AND AMENDMENT OF AGREEMENT
CONTRACT NO. U/M 92-7
FOR
STREET SWEEPING SERVICES
This Agreement for street sweeping services within the City of Carlsbad,
November 17,1992, and originally effective December 1,1992, and subsequently extende
November 30,1994, between the City of Carlsbad, California, a municipal corporation, here
referred to as "CIN", and R. F. Dickson Co., hereinafter referred to as "CONTRACTOR" is t
extended for a period of one year effective December 1, 1994, and ending November 30,
and amended as follows:
All references to the "Utilities and Maintenance Director'' are changed to read "Comt
Services Director"; and,
Section 2. COMPENSATION is amended to read as follows:
For all of the services which CONTRACTOR is obligated to perform und
terms of Proposal #2 of this agreement, the CITY shall pay to CONTRACTOR the increase
of $7,291.00 payable monthly on the basis of one-twelfth of the annual lump sum. 5
constructed after the effective date of this extension/amendment will be added at the I
$12.68 per curb mile (as measured in each direction of sweeping along the curb, be
shoulder). Additional special work of extraordinary nature, including but not limited to di:
spillage and parades, will be charged at the rate of $71.05 per hour when requested
Community Services Director or his designee.
The CITY will reimburse the CONTRACTOR for actual cost of debris dispc
excess of $28.00 per ton. The CONTRACTOR shall bill the CITY for actual solid waste dii
costs accrued for the disposal of debris collected as a direct result of this agrec
CONTRACTOR shall include in his billing the following information:
actual tonnage of debris disposed of at City approved disposal sit(
actual unit cost for debris disposal (per ton)
calculated cost in excess of $28.00 per ton to be paid by the CITY
CONTRACTOR will provide tonnage documentation from the disposal site when reques
the Community Services Director or his approved representative.
All amounts due and payable under the terms of this agreement and this extensio
amendment to this agreement will be invoiced by the CONTRACTOR within thirty da)
following execution of this extension and amendment. CITY will pay all charges to date in i
sum upon receipt of the correct invoice. Any future charges will be paid through normal fi
1.
2.
3.
f A/. Jdi
STEVEN L. DIC
CITY OF CARLSBAD R.F. DICKSON COh
Mayor P re
ADril 27, 1995
Date
REQUEST FOR BID PROPOSAL
BID NO. 2 Bid Opening: August 13, 19
11 :00 a.
FOR: STREET SWEEPING SERVICES AS PER ClTY OF CARLSBAD AGREEMEI
FOR THE PERIOD FROM NOVEMBER 1,1992 THROUGH OCTOBER 31,19
WITH THE OPTlON TO RENEW FOR THREE (3) ADDITIONAL ONE (1) YEA
PERIODS.
Proposal #I
Labor, materials and equipment to meet the following requirements:
1)
2)
3)
4)
5)
All residential and commercial areas to be swept two (2) times per mor
Entire downtown area to be swept three (3) times per week.
All alleys to be swept two (2) times per month.
All open striped and raised curb medians to be swept one (1) time I
month.
All bike lanes on Carlsbad Blvd. to be swept one (1) time per week wit1
broom-type sweeper unless othennrise approved.
All posted streets to be swept during the indicated time periods.
Estimated curb miles per month is 1,150.
6)
7)
Cost $ 13,213.50 $ 158,562.00
Monthly Annual
Street added to be at the rate of $11.49 per curb mile (as measurec
each direction of sweeping along the curb, berm or shoulder). Additional work, includ
but not limited to disaster, spillage and parades, to be at the rate of $70.00
per hour when requested by the Utilities and Maintenance Director.
1200 Carlsbad Village Drive - Carlsbad, California 92008-1 989 - (61 9) 434-2
0 0
BlD Mb. 2
Proposal #2
Labor, materials and equipment to meet the following requirements:
1)
2)
3)
4)
5)
6)
7)
All residential and commercial areas to be swept one (1) time per mon
Entire downtown area to be swept two (2) times per week.
All alleys to be swept one (1) time per month.
All open striped and raised curb medians to be swept one (1) time F
month.
All bike lanes on Carlsbad Boulevard to be swept one (1) time per WE
with a broom-type sweeper unless otherwise approved.
All posted streets to be swept during indicated time periods.
Estimated curb miles per month is 575.
Cost $ 7,181.75 $86,181.00
Monthly Annual
Street added to be at the rate of $12.49 per curb mile (as measurec
each direction of sweeping along the curb, berm or shoulder). Additional work, includ
but not limited to disaster, spillage and parades, to be at the rate of $70.00
per hour when requested by the Utilities and Maintenance Director.
A copy of the proposed agreement is included. Please read it carefully, it is a par
your bid.
A List of Clients (Exhibit A), a Financial Statement (Exhibit B) and the Representation i
Certification Statement are to be submitted with your bid.
A Carlsbad Business License is required prior to contract award.
Prices are firm for 90 days.
A detailed map of the streets to be swept is available for contractors to look at in
Purchasing Department, 1200 Carlsbad Village Drive, Carlsbad CA. If you h:
questions concerning the Agreement and/or the related documents, please cont
Charles (Chuck) Mitchell at (61 9) 438-021 8.
a e(
BID NO. 2
READ THE AlTACHED GENERAL AND SPEClAL PROVISIONS CAREFULLY, THEY 1
A PART OF YOUR BID.
The following addenda have been noted and attached hereto:
REQUIRED: $ None (FAILURE TO Address 12524 CLARK AVE. SUBMIT GUARANTEE OF GOOD FAITH
WILL VOID THE BID. SEE PARAGRAPH
3, GENERAL PROVISIONS.)
NONE
GUARANTEE OF GOOD FAiTH Firm R.F. DICKSON COMPANY, INC.
City or Town DOWNEY State
Zip Code 90242
Signed
Telephone No. 800/841-7994 310/92:
Date 7/28/92
Jk&
Printed Name STEVEN L. DICKSON,PR
O& 4 &, 4d-F
/?G22A z2
THE CITY ENCOURAGES THE PARTICIPATION OF MINQRITY AND WOMEN-OWNED BUSlNESSl
EXHIBIT 4 0 e
DEBRIS DISPOSAL RATES
DECEMbER 1992 - NOVEMbER 1993
(Paid by Coni;raci;or)
Table 1
cost Amount of cost of
MONTH TONNAGE PER TON INCREASE INCREASE
December 1992 66.66 $28.00 $0.00 $0.00
January 1993 28.89 $28.00 $0.00 $0.00
February 1993 32.56 $28.00 $0.00 $0.00
March 1993 129.62 $28.00 $0.00 $0.00
April 1993 53.62 $28.00 $0.00 $0.00
May 1993 69.08 $28.00 $0.00 $0.00
June 1993 61.62 $28.00 $0.00 $0.00
July 1993 29.74 $43.00 $1 5.00 $446.10
August 1993 123.77 $43.00 $1 5.00 $1,856.55
September 1993 53.07 $43.00 $1 5.00 $796.05
October 1993 53.06 $43.00 $1 5.00 $795.90
November 1993 42.36 $43.00 $1 5.00 $635.40
744.05 $4,530.00
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DEBRIS DISPOSAL RATES
DECEMbER 1993 - NOVEMbER 1994
(shared by Contractor & City)
Table 2
cost Amount of cost of
MONTH TONNAGE PER TON INCREASE INCREASE
December 1993 70.40 $43.00 $1 5.00 $1,056.00
January 1994 78.66 $43.00 $1 5.00 $1,179.90
February 1994 11.32 $43.00 $1 5.00 $1 69.80
March 1994 80.66 $43.00 $1 5.00 $1,209.90
April 1994 63.01 $43.00 $1 5.00 $945.1 5
May 1994 15.84 $43.00 $1 5.00 $237.60
June 1994 81.71 $43.00 $1 5.00 $1,225.65
July 1994 46.37 $43.00 $1 5.00 $695.55
August 1994 15.40 $55.00 $27.00 $41 5.80
September 1994 72.1 1 $55.00 $27.00 $1,946.97
October 1 994 17.80 $74.00 $46.00 $81 8.80
November 1994 25.27 $74.00 $46.00 $1,162.42
41.22 $55.00 $27.00 $1,112.94
61 9.77 $1 2,176.48
12
$6,088.24 ea
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0 e INCREASES RESULTING FROM
r e- 1- PIECorlxrlr3~1 4tsaura
Table 3
PAID BY I
COST DESCRIPTION CONTRACTOR
TIP FEES
Debris disposal in excess of $28.00 per ton
12/1/92 to 1 1/30/93 4,530.00
Debris disposal in excess of $28.00 per ton
12/1/93 to 1 1/30/94 ($1 2,176.48) 6,088.24
Debris disposal in excess of $28.00 per ton
12/1/94 to 1 1 /30/95 (end of agreement) 0.00
SUB-TOTAL: $1 0,618.24 $
SWEEPING RATE INCREASE (1 5%)
Per curb mile: $12.49 to $12.68 ($0.19)
Extra per hour: $70.00 to $71.05 ($1.05)
SUB-TOTAL:
GRAND TOTAL:* $1 0,618.24 $2:
* through end of agreement (1 1/30/95)
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