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HomeMy WebLinkAbout02-19-2013 c3 street sweeping operationsA counci lagenda Report ';Meeting Date 2-19-13 Item NumberC 3 C I T Y O F S A N L U I S O B I S P O FROM :Daryl Grigsby, Public Works Directo r Prepared By:Barbara Lynch, Deputy Director of Public Works SUBJECT :STREET SWEEPING OPERATION S RECOMMENDATIONS 1.Authorize staff to advertise a Request for Proposals for Citywide Street Sweeping Services . 2.Authorize the City Manager to award a contract for Citywide Street Sweeping Services i f proposals are within the estimated cost . 3.Authorize the reduction of staff levels by 1 .0 FTE (Heavy Equipment Operator I) in the Floo d Control program, pending acceptance of a contract proposal for Citywide Sweeping Service s and completion of meet and confer requirements . 4.Authorize the surplus designation of the sweeper, Fleet Asset No . 0909, by sale, auction, trade- • in or other method in accordance with the City's policies and procedures as prescribed in th e Financial Management Manual Section 405-C, pending acceptance and implementation of a contract proposal for Citywide Sweeping Services . DISCUSSIO N City street sweeping has historically been performed by full-time regular City employees wh o sweep approximately 7,000 curb-miles per year . In 2010, the City established a small contract wit h SP Maintenance to sweep portions of the downtown after Farmer's Market, totaling about 260 curb - miles per year . On October 2, 2012, the City Manager approved an amendment to the agreement t o have SP Maintenance perform City-wide sweeping temporarily after the City's long-time sweepe r operator retired leaving the position vacant, to allow the City time to evaluate alternative strategie s for sweeping service . Contract sweeping services are an available alternative to the City's employment of a full tim e Heavy Equipment Operator 1 (Sweeper Operator). Some municipal functions, particularly thos e which do not vary in complexity or where consistent coverage is problematic, are well performe d by private contract services . A few examples are residential and commercial trash collection , recycling collection, and street sweeping. With an eye to improving the consistency and reliability of sweeping operations, the option o f converting this work to contract services was analyzed to assist the City in considering this chang e in service delivery method . The table below summarizes pros and cons from various source s regarding City operated sweeping efforts and contract services . • C3-1 Street Sweeping Operations Page 2 • Pros &Cons — Table 1 The service comparisons indicate the primary benefits of in-house service are quicker emergenc y response and easier extra work accommodation . The primary benefits of contract service ar e increased reliability and consistency for the operation, and service level flexibility . After careful consideration of the above factors, it is staffs recommendation that the most important element of a successful sweeping program is a consistent schedule and flexible responsiveness . Therefore,a private contract is the recommended and preferred method of service delivery . City of San Luis Obispo staff (line staff, supervisor, division manager) City Service : Contract Sen-ice : Pros : ▪Operator develops relationships and knowledge of community ▪Good quality •Extra work can be readily accommodated a t no extra cos t •Quicker availability for emergencie s Cons : •Challenging to cover absence s •Uncovered absences results in missed o r delayed sweeping ; impacting both customer service levels and the City's stormwate r permit-related sweeping frequencies Pros: ▪Good Quality ▪Better absence coverage for consistency and reliability of service level s •Fleet reduction ▪Easier to reduce or expand service s Cons : •Road crew covers ad hoc sweeping needs - emergency need s •Less cost control (cost is a function o f bidding / not City salary negotiations ) From other Agencies (List Serve - 19 cities responded ) City Service : Contract Sect ice : Pros •Fewer public complaints on quality Pros : •No need for backup vehicles or personne l •Option for alternative fuel vehicle wer e provided ▪Less expensive (see cons ) ▪Quality is acceptable (see cons ) Cons : ▪About the same cost (see pros ) ▪Quality is `terrible' (see pros ) •Any extra work is extra cos t ▪Difficult to track disposal costs - are yo u paying for disposal of other's debris ? ▪Difficult to define in the contract what i s "clean," leading to potential conflicts o n contract com . fiance • C3-2 • Street Sweeping Operations Page 3 Cost Comparison Estimate — Table 2 Street Sweeping Cost Evaluation Annual ' Operation Expenses Currently Budgeted (available to apply to contract service) Sweeper Operator Compensation $85,625 :Includes all compensation costs with PERS at the futur e compensation rate - Employee paid 8% PER S Fuel for Sweeper and Hauling $11,89 7 Disposal Fees .. $10,00 0 Subtotal : $107,522 Estimated Contract Service Cos t 7,000 Curb Miles @ $21 .50/mile $150,50 0 Operation Budget Increase for Contract Sweeping : $42,978 (Estimated cost) - (Available budget ) :Additional funding would be needed beyond this if ;extra work services are desired . Operation Expenses Not Currently Budgeted (funds not currently available to apply to contract service ) Equipment Repair Parts $13,839': Materials budget is currently underfunde d Vehicle Annualized Replacement Cost $26,288Vehicle replacement is currently underfunde d Subtotal : $40,127 Additional Estimated Cost for Contract Sweeping : $2,852 Accounts for both budgeted and unbudgeted item s • While the $40,127 total is not in the current budget, those are actual costs which in the past hav e been borne by shifting other funds, and are the subject of a future additional budget request . If a shift is made to contract services, the cost evaluation shows that initially,and under the curren t Financial Plan, $43,000 on an annual basis will be needed to augment the operating budget to allo w contract sweeping . The actual bids received could vary from the estimated $150,000 shown above . In addition, accounting for projected (underfunded) annual vehicle costs, the actual augmentation t o the City's costs is closer to $3,000 annually . These costs are approximate based on know n information of City operations, conversations with a contract sweeping company, and reasonabl e estimations . These costs assume no extra work . The additional amount required is dependent upo n the actual bids received from the private sector. Contract service costs are less within the control of the City than with in-house operations . Whil e the City periodically advertises its contract service agreements for new proposals, the unit costs wil l be dictated by the companies submitting proposals, reflecting their staff and operation costs . The City received three sweeping proposals in September of 2010 for $23, $25, and $50 per curb mil e for a small contract . The cost analysis shown in Table 2 above, used a per mile cost of $21 .50 , based on conversations with the current service provider indicating a unit price reduction could b e anticipated with a larger contract . A moderate adjustment in curb mile costs from $21 .50 to $2 3 changes the needed budget augmentation to $53,000 from $43,000 . Conversely a curb mile cost o f $20 reduces the augmentation to $33,000 . Fleet Reductio n The City will be able to reduce its fleet if sweeping shifts permanently to contract, as the compan y •will be required to provide the equipment . Reducing the size of the fleet reduces ongoing flee t replacement and equipment repair costs identified in Table 2, and associated maintenance efforts . C3-3 Street Sweeping Operations Page 4 Once the City shifts to contract services, going back to in-house operations will take a capita l investment to restore a sweeper to the fleet . Projected sweeper replacement cost is $272,000 , tentatively scheduled for 2016-17 . The Contract Managemen t Contract oversight is anticipated to be slightly more time intensive for the Street Maintenanc e Supervisor, than oversight of a regular employee . This is due to the need to review monthl y reporting and compare it to historical sweeping miles to verify accuracy before payment, and periodic re-advertising of the contract . However, management of the in-house operation ha s become challenging without a backup operator to provide coverage . Recommendation Summary Contract services appear to be the right direction for the City to go to provide street sweeping . Th e primary benefit of contracting over in-house operation is reliability and consistency of sweepin g operations . Generally, City service standards and Stormwater permit regulations were met with Cit y operations . The exception was weekend sweeping which was eliminated to reduce operatin g program costs . On occasion the weekday sweeping schedule lapsed when the Sweeper Operator wa s on approved leave and coverage was not available with other staff. The issue is expected to be resolved under contract services, as a contractor, once provided the service standards and contrac t specifications, must staff the operation accordingly to meet those objectives . Service flexibility will be a benefit of contract services as well . The RFP includes a cost request to resume weekend sweeping in the downtown core, and pricing for extra services . Weekend sweeping and special event cleanup will be included in the service agreement if the overall quotation fo r services is lower than anticipated . Accident clean-ups, and "emergencies" need a quick response, and should continue to be provided by staff with the sweeping equipment assigned to the Stree t Maintenance program . Oversight of the contract, relative to staff operations, is currently anticipated to provide littl e additional workload to the Street Supervisor . This will be monitored during the initial conversion t o determine if there are unusual circumstances of oversight not foreseen by the analysis . Costs are anticipated to be very similar to in-house operations . Costs will be confirmed with the opening an d award of a proposal for service, and no changes will be made in staffing or operating programs unti l it is clear the contract service is a reasonable cost alternative . Sweeping Effectivenes s Concerns have surfaced periodically regarding the effectiveness of sweeping operations in neighborhoods with heavy on-street parking . This issue is present regardless of the method o f service delivery. Staff will incorporate review of options to address this as part the 2013-14 wor k program and bring a recommendation forward for consideration . Meet and Confer Requirement s Assignment of duties including the decision to use contract services, is a management right ; however, the City must meet and confer with the affected labor group (SLOCEA) regardin g potential impacts of the change to the labor unit . SLOCEA will be notified of the City's intent t o make this change upon approval of this request by Council . SLOCEA will be provided the • • • C3-4 • • • Street Sweeping Operations Page 5 opportunity to identify potential impacts of eliminating this currently unfilled position and th e parties will meet and confer in good faith over those impacts prior to full implementation . FISCAL IMPAC T Funding of this contract operation will require approximately $43,000 in annual funding augmentation to the operating program, along with a shift in operating expenses of approximatel y $107,500 from other program areas as noted in Table 2 . Contract service costs for the remainder o f the current fiscal year will be covered by salary savings at an estimated cost of $8,000 per month . Costs going forward will be documented for Council approval as a Significant Operating Program Change in the 2013-15 Financial Plan . If upon receiving cost proposals for sweeping services, per-mile costs come in higher tha n anticipated, staff will return the item to the City Council for a final determination . The Council could determine at that time to continue with City operations and complete the recruitment for a City Heavy Equipment Operator I position . The City will have a one-time income from the resale of the sweeper if it shifts to contract services . The current value of this unit is estimated at $20,000, which could assist in offsetting the initial yea r of contract service . The sale of the sweeper should be delayed until a new contract is awarded . ALTERNATIVE S City Staff Operation .Sweeping could continue to be provided with a staff person . No change s would be needed in operation budgets or in sweeping operations to retain the existing service level s and costs . Contract Services — Reduced Frequency .Contract services could be used, but frequencie s reduced such that there would be no net increase to the operating budget . To reduce the contract cost to the current operating budget (reduce costs by $43,000) a 30% reduction in sweeping woul d occur. Reducing sweeping to account for the current operating budget plus unbudgeted capita l investment costs is a 2% reduction or $3,000 . A 30% reduction in sweeping volume is not recommended because 1) a service reduction would b e contrary to the City's Neighborhood Wellness goal and prior service standards; 2) the City's curren t obligation under its Stormwater Management Plan would not be met ; and 3) increased effort wil l result for the stormdrain cleaning staff to remove higher accumulations of debris in the inlets.A $3,000 reduction is reasonable, but such a minor savings does not warrant the high level of effor t that would be necessary to revise the routes . Additionally, Stormwater obligations would not b e met . ATTACHMENT S 1.Request for Proposals to provide contract sweeping sery ices 2.Financial Management Manual Section 405-C a C3-5 Street Sweeping Operations Page 6 t:kouncil agenda reports\ 2013\ 2013-01-22lsireet sweeping (gdgsby-ynch)\car rpt .docx • • • C3-6 • • Attachment 1 city Of san luis OBISp o 990 Palm Street • San Luis Obispo • CA • 9340 1 Notice Requesting Proposals fo r Citywide Street Sweeping Service s Specification No . 50320-2013S S February 201 3 The City of San Luis Obispo is requesting sealed proposals for Street Sweeping pursuant to Specification No . 50320-2013SS . All proposals must be received by the Finance Department at 990 Palm Street, San Luis Obispo , CA 93401 by 3 :00 P .M . on March 20, 2013 . Proposals received after said time will not be considered . To guard against premature opening, each proposa l shall be submitted to the Public Works Department in a sealed envelope plainly marked with the proposal title , specification number, Contractor name, and time and date of the proposal opening . Proposals shall be submitte d using the forms provided in the specification package . Obtaining a Specification Packag e •Download from the City's Web site www.slocity.org - Bids & Proposals pag e •Pick up a copy of the RFP at the above addres s •Mail a request to the City of San Luis Obispo Finance Department at the above addres s •Fax a request to the City of San Luis Obispo at 805-781-7401 – include company name, street address, phone , fax, email and the name of the contact person . Requests must include the RFP title and specification number . A list of companies that have requested a copy of the proposal is maintained on the web page . Detail information about the work may be obtained by contacting Gary Keavney at (805) 781-7043 . C3-7 CITYWIDE STREET SWEEPING SERVICE S TABLE OF CONTENT S DESCRIPTION OF WORK 3 GENERAL TERMS AND CONDITIONS 4 PROPOSAL REQUIREMENTS 4 CONTRACT AWARD AND EXECUTION 4 PROPOSAL CONTENT AND SELECTION PROCESS 6 PROPOSAL CONTENT 6 PROPOSAL EVALUATION AND CONTRACTOR SELECTION 6 FORM OF AGREEMENT 7 PROPOSAL SUBMITTAL FORMS 1 3 ACKNOWLEDGEMENT 1 3 COST PROPOSAL 1 3 INSURANCE CERTIFICATE 1 3 REFERENCES 1 4 SAFETY RECORD 1 5 INSURANCE REQUIREMENTS : Contractor Services 16 • • • Street Sweeping - Specification 50320-2013SS Pagedge • • Section A DESCRIPTION OF WOR K Background : The City recently experienced the retirement of their long term street sweeping operator . The City has made a determination that providing street sweeping via contract services will provide a more consistent level of servic e due to the availability of backup sweeper operators for coverage . The City Council has provided budget resource s to contract out all of the City's street sweeping activities . Workscope : Provide high quality street sweeping service on a pre-determined schedule for a pre-determined unit price , removing litter, leaves, sand, dirt, and other debris from the street, with a wet, vacuum system sweeper. Provide all tools, equipment, labor and materials necessary for the satisfactory performance and documentation o f the work . Dispose of all debris and provide weight tickets to the City for disposal . Extended Workscope : The City is requesting proposals for additional work that may, or may not, be included depending upon cos t proposals for the work . This includes miscellaneous extra work and weekend work . Sweeper Equipment – Sale Option : In the event the City procures an acceptable proposal to convert in-house sweeping to contract services, the Cit y will consider sale of the existing City-owned sweeper to the successful company to augment their fleet . In th e event, the contractor is interested in acquiring this unit, the City will negotiate terms of purchase and include the m in the agreement . The sweeper is a Tymco©, purchased January 2009 and has approximately 26,000 miles of use . Street Sweeping – Specification 50320-2013SS Page3,f46 Section B GENERAL TERMS AND CONDITION S PROPOSAL REQUIREMENT S 1 . Requirement to Meet All Provisions .Each individual or firm submitting a proposal (Contractor) shall meet al lof the terms, and conditions of the Request for Proposals (RFP) specifications package . By virtue of it sproposal submittal, the Contractor acknowledges agreement with and acceptance of all provisions of the RF Pspecifications. 2 . Proposal Submittal . Each proposal must be submitted on the form(s) provided in the specifications an daccompanied by any other required submittals or supplemental materials . Proposal documents shall b eenclosed in an envelope that shall be sealed and addressed to Finance Department, City of San Luis Obispo ,990 Palm Street, San Luis Obispo, CA, 93401 . In order to guard against premature opening, the proposa lshould be clearly labeled with the proposal title, specification number, name of Contractor, and date and time o fproposal opening . No FAX submittals will be accepted . 3 . Insurance Certificate . Each proposal must include a certificate of insurance showing : a.The insurance carrier and its A .M . Best rating .b.Scope of coverage and limits .c.Deductibles and self-insured retention . The purpose of this submittal is to generally assess the adequacy of the Contractor's insurance coverag eduring proposal evaluation ; as discussed under paragraph 12 below, endorsements are not required unti lcontract award . The City's insurance requirements are detailed in Section F . 4.Submittal of References . Each proposer shall submit a statement of qualifications and references on the for mprovided in the RFP package . 5 . Proposal Withdrawal and Opening .A Contractor may withdraw its proposal, without prejudice prior to th etime specified for the proposal opening, by submitting a written request to the Finance Department for itswithdrawal, in which event the proposal will be returned to the Contractor unopened . No proposal receive dafter the time specified or at any place other than that stated in the "Notice Requesting Proposals" will beconsidered. All proposals will be opened and declared publicly . Contractors or their representatives are invite dto be present at the opening of the proposals . 6 . Submittal of One Proposal Only .No individual or business entity of any kind shall be allowed to make or file ,or to be interested in more than one proposal, except an alternative proposal when specifically requested ;however, an individual or business entity that has submitted a sub-proposal to a Contractor submitting aproposal, or who has quoted prices on materials to such Contractor, is not thereby disqualified from submittin ga sub-proposal or from quoting prices to other Contractors submitting proposals . 7 . Communications. All timely requests for information submitted in writing will receive a written response fro mthe City. Telephone communications with City staff are not encouraged, but will be permitted . However, an ysuch oral communication shall not be binding on the City . 8 . Alternative Proposals.When specifically requested, the proposer may submit an alternative proposal (orproposals) that it believes will also meet the City's project objectives but in a different way .In this case, th eproposer must provide an analysis of the advantages and disadvantages of each of the alternatives, an ddiscuss under what circumstances the City would prefer one alternative to the other(s). If an alternativ eproposal is submitted, the maximum length of the proposal may be expanded proportionately by the number ofalternatives submitted . CONTRACT AWARD AND EXECUTIO N 9 . Proposal Retention and Award .The City reserves the right to retain all proposals for a period of 60 days fo rexamination and comparison . The City also reserves the right to waive non substantial irregularities in an y Street Sweeping — Specification 50320-2013SS Paoel_rgd 6 • • • •proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except t othe extent that proposals are qualified by specific limitations . See the "Special Terms and Conditions" i nSection C of these specifications for proposal evaluation and contract award criteria . 10.Competency and Responsibility of Contractor .The City reserves full discretion to determine th ecompetence and responsibility, professionally and/or financially, of Contractors . Contractors will provide, in atimely manner, all information that the City deems necessary to make such a decision . 11.Contract Requirement . The Contractor to whom award is made (Contractor) shall execute a written contrac twith the City within ten (10) calendar days after notice of the award has been sent by mail to it at the addres sgiven in its proposal . The contract shall be made in the form adopted by the City and incorporated in thes especifications. 12.Insurance Requirements . The Contractor shall provide proof of insurance in the form, coverages an damounts specified in Section F of these specifications within 10 (ten) calendar days after notice of contrac taward as a precondition to contract execution . 13.Business License & Tax . The Contractor must have a valid City of San Luis Obispo business license and ta xcertificate before execution of the contract . Additional information regarding the City's business license and ta xprogram may be obtained by calling (805) 781-7134 . 14.Failure to Accept Contract . The following will occur if the Contractor to whom the award is made (Contractor )fails to enter into the contract : the award will be annulled ; any bid security will be forfeited in accordance wit h the special terms and conditions if a Contractor's bond or security is required ; and an award may be made t othe next highest ranked Contractor with whom a responsible compensation is negotiated, who shall fulfill ever ystipulation as if it were the party to whom the first award was made . • • Street Sweeping –Specification 50320-2013SS Patrff16 Section C PROPOSAL CONTENT AND SELECTION PROCES S PROPOSAL CONTEN T 1 . Submittal Forms a.Acknowledgement b.Certificate of Insuranc e c.Reference s 2. Company Information and Qualification s a.Experience of your firm in performing similar service s b.Experience of the staff to be assigned to the work in performing similar service s c.Type of sweeper used for operation – indude specification sheet and ag e d.Any other information that would assist us in making this contract award decisio n 3 . Proposal Length and Copie s a.Proposals should be the minimum length to provide the required information . Charts and other short for m approaches to conveying information are encouraged . b.3 copies of the proposal must be submitted . PROPOSAL EVALUATION AND CONTRACTOR SELECTIO N Proposals will be evaluated by a review committee and contract award process as follows: 4 .Written Proposal Review and Award Proposals will be reviewed by a selection committee and ranked in accordance with the responsiveness , qualifications and information from references . Cost proposals will be considered once qualifications have bee n established . Contract award will be based on a combination of factors that represent the best overall value for completin g the workscope as determined by the City, including : the written proposal criteria described above ; results of background and reference checks ; and proposed compensation . 5 .Proposal Review and Award Schedule The following is an outline of the estimated schedule for proposal review and contract award : Issue RFP 2/23/1 3 Receive proposals 3/20/1 3 Complete proposal evaluation 3/29/1 3 Award contract 4/5/1 3 Execute contract 4/19/1 3 Start work 5/1/13 • • Street Sweeping — Specification 50320-2013SS P LS11 6 Section D FORM OF AGREEMENT AGREEMEN T THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, 2013 by an dbetween the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [COMPAN YNAME IN CAPITAL LETTERS], hereinafter referred to as Contractor . WITNESSET H WHEREAS, on February 23, 2013, requested proposals for Citywide Street Sweeping Services pe rSpecification No. 50320-2013SS . WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for sai dservices. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafte rcontained, the parties hereto agree as follows : 1.Term . The term of this Agreement shall be from the date of the Notice to Proceed to June 2015 or unti ltermination of the contract in accordance with this Agreement . 2.Contract Extension . The term of the contract may be extended by mutual consent for an additional two years . 3.Cost Adjustments . During the term of the agreement, beginning July 1, 2014, contract prices shall b e•increased by a percentage equal to the percentage increase in the U .S . Consumer Price Index/All Urba nConsumers (CPI-U) from March in the previous year to March in the year of adjustment . 4.Standard of Work . Contractor performance shall conform to good street sweeping practices as defined in th elatest edition of the American Public Works Association publication Street Cleaning Practice .Contractor i sresponsible to remove varying levels of debris throughout the year without additional compensation for hig hdebris conditions . Sweepers will operate at or below suggested manufacturer recommended sweeping speed to maximiz eremoval of debris, including litter, leaves, sand, and dirt . Contractor shall measure mileage . Contractor shall provide the City with the monthly mileage log with eac hbilling. Payment will be withheld until documentation is received . Contractor shall provide a contact phone number for all hours the equipment is operating . If the sweeper regularly encounters areas that cannot be swept due to parked vehicles, that information is to b eprovided to the City as soon as possible, but no later than with the next monthly billing . Complaints received by the City regarding either the quality of the sweep or the equipment or operation of th esweepers will be conveyed to the Contractor . The Contractor shall provide a response to the City regarding th ecomplaint within 24 hours of receipt . If the Contractor fails to meet the requirements for sweeping to acceptable standards, as determined by th eCity, Contractor will be required to sweep the streets again within 48 hours, at no cost to the City . 5.Sweeping Equipment .Sweeper equipment shall be maintained in accordance with the manufacturer'srecommendations, including dust prevention equipment such as baffles, screens, filters, seals, water spray .The Contractor shall provide maintenance records quarterly . Street sweeping equipment shall be equipped with right hand mounted gutter brooms and sweeping shall occu r Street Sweeping – Specification 50320-2013SS Page,?rj%6 • • in the same direction as normal traffic flow . 6.Disposal .Contractor is responsible for proper disposal of all debris in accordance with local, state, and federa l regulations. Contractor shall provide the City with written documentation, including weight tickets from disposa l facility, with each billing . Payment will be withheld until documentation is provided . 7.Work Schedule and Routes .The Contractor will be required to provide sweeping operations between th e hours of 3 A .M . and 1 P .M . and as identified in Exhibit A – Maps unless authorized in writing to vary from the approved schedule and routes. In the event sweeping is not possible due to heavy weather, equipment failure, or other unforesee n occurrences, Contractor shall notify the City within 4 hours . The City will make a determination at that time t o substitute a sweeping at an alternate time or to skip a sweeping . The following holidays may be observed, with the missed route completed on the next Friday . Contractor should notify Contract Manager of intent to observe . New Year's Day – January 1 st Labor Day – 1 s`Monday in Septembe r Martin Luther King Jr Day – 3`d Monday in January Veteran's Day – November 11 `h President's Day–3 `d Monday in February Thanksgiving Day–4`h Thursday in Novembe r Memorial Day – 4th Monday in May Christmas Day – December 2 5th Independence Day – July 4 th 8.Working Out of Scope .If at any time during the term of the agreement, the Contractor is directed to do wor k by persons other than the City Contract Manager and the Contractor believes that the work is outside of th e scope of the original contract, the Contractor shall inform the Contract Manager immediately . Any extra work performed by Contractor without prior written approval from the City Contract Manager shall be at Contractor's own expense . If the Contract Manager requests work outside of the original workscope, then a fee will be established for suc h work based on Contractor's approved rates or a lump sum price agreed upon between the City and th e Contractor. 9.Termination . If, during the term of the contract, the City determines that the Contractor is not faithfully abidin g by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failur e to perform . This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which t o perform said work or cure the deficiency . If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice , such shall constitute a breach of the contract and the City may terminate the contract immediately by writte n notice to the Contractor to said effect . Thereafter, neither party shall have any further duties, obligations , responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's suret y shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by th e termination thereof . In the event of termination, the Contractor shall be entitled to the reasonable value of its services performe d from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination , minus any offset from such payment representing the City's damages from such breach . "Reasonable value " includes fees or charges for goods or services as of the last service satisfactorily delivered or completed by th e Contractor as may be set forth in the Agreement payment schedule ; compensation for any other work, service s or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work completed to date. The City reserves the right to delay any such payment, as may be determined at the City's sole discretion, s o as to permit a full and complete accounting of costs . In no event, however, shall the Contractor be entitled t o receive in excess of the compensation quoted in its proposal . If, at any time during the term of the contract, the City determines that continued contract work is not feasibl e due to funding shortages, unforeseen circumstances, or is in its best interest to terminate the contract, the Cit y Street Sweeping – Specification 50320-2013SS Pageg 4 6 • • • •reserves the right to terminate the contract . Contractor will be paid compensation due and payable to the dat eof termination . 10.Ability to Perform .The Contractor warrants that it possesses, or has arranged through subcontracts, al lcapital and other equipment, labor, materials, and licenses necessary to carry out and complete the wor khereunder in compliance with any and all applicable federal, state, county, city, and special district laws ,ordinances, and regulations . 11.Subcontract Provisions. No portion of the work pertinent to this contract shall be subcontracted withou twritten authorization by the City, except that which is expressly identified in the Contractor's proposal . An ysubstitution of sub-Contractors must be approved in writing by the City . 12.Contract Assignment . The Contractor shall not assign, transfer, convey or otherwise dispose of the contract ,or its right, title or interest, or its power to execute such a contract to any individual or business entity of an ykind without the previous written consent of the City . 13.Inspection . The Contractor shall furnish City with every reasonable opportunity for City to ascertain that th eservices of the Contractor are being performed in accordance with the requirements and intentions of thi scontract. All work done and all materials furnished, if any, shall be subject to the City's inspection an dapproval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contrac trequirements. 14.Record Retention and Audit . For the purpose of determining compliance with various laws and regulation sas well as performance of the contract, the Contractor and sub-contractors shall maintain all books, documents ,papers, accounting records and other evidence pertaining to the performance of the contract, including but no tlimited to disposal of waste . Materials shall be made available at their respective offices at all reasonable time sduring the contract period and for three years from the date of final payment under the contract. Authorize drepresentatives of the City shall have the option of inspecting and/or auditing all records . Copies shall befurnished if requested . 15.Conflict of Interest . The Contractor shall disclose any financial, business, or other relationship with the Cit ythat may have an impact upon the outcome of this contract . The Contractor shall also list current clients wh omay have a financial interest in the outcome of this contract . The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect o rotherwise—that would conflict in any manner or degree with the performance of the work hereunder . Th eContractor further covenants that, in the performance of this work, no subcontractor or person having such a ninterest shall be employed . The Contractor certifies that no one who has or will have any financial interest i nperforming this work is an officer or employee of the City . It is hereby expressly agreed that, in th eperformance of the work hereunder, the Contractor shall at all times be deemed an independent Contractor an dnot an agent or employee of the City . 16.Rebates, Kickbacks or Other Unlawful Consideration .The Contractor warrants that this contract was notobtained or secured through rebates, kickbacks or other unlawful consideration, either promised or paid to an yCity employee . For breach or violation of the warranty, the City shall have the right in its discretion ; toterminate the contract without liability ; to pay only for the value of the work actually performed ; to deduct fromthe contract price ; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration . 17.Covenant Against Contingent Fees . The Contractor warrants by execution of this contract that no person o rselling agency has been employed, or retained, to solicit or secure this contract upon an agreement o runderstanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees o rbona fide established commercial or selling agencies maintained by the Contractor for the purpose of securin gbusiness. For breach or violation of this warranty, the City has the right to annul this contract without liability ;pay only for the value of the work actually performed, or in its discretion, to deduct from the contract price o rconsideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingen tfee. • 18 .Compliance with Laws and Wage Rates . The Contractor shall keep itself fully informed of and shall observ eand comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances ,regulations and adopted codes during its performance of the work . Street Sweeping –Specification 50320-2013SS Pa gM 6 • 19.Payment of Taxes . The contract prices shall include full compensation for all taxes that the Contractor i s required to pay . 20.Permits, Licenses and Filing Fees . The Contractor shall procure all permits and licenses, pay all charge s and fees, and file all notices as they pertain to the completion of the Contractor's work . 21.Safety Provisions . The Contractor shall conform to the rules and regulations pertaining to safety establishe d by OSHA and the California Division of Industrial Safety . 22.Public and Employee Safety .Whenever the Contractor's operations create a condition hazardous to th e public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain suc h fences, temporary railings, barricades, lights, signs and other devices and take such other protective measure s as are necessary to prevent accidents or damage or injury to the public and employees . 23.Preservation of City Property .The Contractor shall provide and install suitable safeguards, approved by th e City, to protect City and private property from injury or damage . If property is injured or damaged resulting fro m the Contractor's operations, it shall be replaced or restored at the Contractor's expense . The facilities shall be replaced or restored to a condition as good as when the Contractor began work . 24.Immigration Act of 1986 .The Contractor warrants on behalf of itself and all sub-Contractors engaged for th e performance of this work that only persons authorized to work in the United States pursuant to the Immigratio n Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the wor k hereunder. 25.Contractor Non-Discrimination . In the award of subcontracts or in performance of this work, the Contracto r agrees that it will not engage in, nor permit such sub-Contractors as it may employ, to engage in discriminatio n in employment of persons on any basis prohibited by State or Federal law . 26.Accuracy of Specifications .The specifications for this project are believed by the City to be accurate and t o contain no affirmative misrepresentation or any concealment of fact. In preparing its proposal, the Contracto r and all sub-contractors named in its proposal shall bear sole responsibility for proposal preparation error s resulting from any misstatements or omissions in the specifications that could easily have been ascertained b y examining the work site . Although the effect of ambiguities or defects in the specifications will be a s determined by law, any patent ambiguity or defect shall give rise to a duty of Contractor to inquire prior t o proposal submittal . Failure to so inquire shall cause any such ambiguity or defect to be construed against th e Contractor . An ambiguity or defect shall be considered patent if it is of such a nature that the Contractor , assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of th e ambiguity or defect . Furthermore, failure of the Contractor or sub-contractors to notify City in writing o f specification defects or ambiguities prior to proposal submittal shall waive any right to assert said defects o r ambiguities subsequent to submittal of the proposal . To the extent that these specifications constitute performance specifications, the City shall not be liable fo r costs incurred by the successful Contractor to achieve the project's objective or standard beyond the amounts provided therefore in the proposal . In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguit y or defect in the specifications, or any other matter whatsoever, Contractor shall immediately notify the City i n writing, and the Contractor and all sub-contractors shall continue to perform, irrespective of whether or not th e ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, tim e extension, or additional compensation has been granted by City . Failure to provide the hereinbefore describe d written notice within one (1) working day of Contractor's becoming aware of the fads giving rise to the disput e shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans o r specifications concerning the dispute . 27.Indemnification for Professional Liability .To the fullest extent permitted by law, the Contractor shall indemnify, protect,defend and hold harmless the City and any and all of its officials,employees an dagents(`Indemnified Parties) from and against any and all losses,liabilities,damages,costs an d expenses,including attorney's fees and cost which arise out of, pertain to,or relate to the negligence , recklessness,or willful misconduct of the Contractor. • • Street Sweeping – Specification 50320-2013SS Page,1A offi6 • • 28.Non-Exclusive Contract .The City reserves the right to contract for the services listed in this proposal fro m other Contractors during the contract term . 29.Release of Reports and Information . Any reports, information, data, or other material given to, prepared b y or assembled by the Contractor as part of the work or services under these specifications shall be the propert y of City and shall not be made available to any individual or organization by the Contractor without the prio r written approval of the City . The Contractor shall not issue any news release or public relations item of any nature, whatsoever, regardin g work performed or to be performed under this contract without prior review of the contents thereof by the Cit y and receipt of the City's written permission . 30.Contractor Invoices . The Contractor shall deliver a monthly invoice to the City, itemized by miles swept. Invoice must include a breakdown of hours billed and miscellaneous charges and any sub-contractor invoices , similarly broken down, as supporting detail . Invoice shall include monthly mileage, problem areas, and disposa l documentation . 31.Payment . Contractor will be paid per mile swept for providing services as specified in this Agreement . City wil l pay and Contractor shall receive therefore compensation in a total sum not to exceed $X per mile swept . Payments shall be made on a monthly basis as invoiced by the Contractor for expenses incurred within th e previous month . 32.Payment Terms . The City's payment terms are 30 days from the receipt of an original invoice and acceptanc e by the City of the materials, supplies, equipment or services provided by the Contractor (Net 30). 33.Resolution of Disputes . Any dispute concerning a question of fact arising under this contract that is no t disposed of by agreement shall be decided by a committee consisting of the City's Contract Manager and th e City Director of Public Works, who may consider written or verbal information submitted by the Contractor . Not later than thirty days after the event giving rise to the dispute, the Contractor may request review by the Cit y Council of unresolved claims or disputes, other than audit, in accordance with Chapter 1 .20 Appeals Procedur e of the Municipal Code . Neither the pendency of a dispute, nor its consideration by the City will excuse the Contractor from full an d timely performance in accordance with the terms of this contract . 34.Agreement Parties . City :Gary Keavney Contractor:X City of San Luis Obispo Contract Manage r 25 Prado Roa d San Luis Obispo, CA 9340 1 All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered o r certified mail addressed as shown above . 35.Incorporation by Reference . City Request for Proposal dated February 2013 and Contractor's proposa l dated March 2013, are hereby incorporated in and made a part of this Agreement . 36.Amendments . Any amendment, modification or variation from the terms of this Agreement shall be in writin g and shall be effective only upon approval by the City Engineer . 37.Complete Agreement . This written agreement, including all writings specifically incorporated herein b y reference, shall constitute the complete agreement between the parties hereto . No oral agreement , understanding or representation not reduced to writing and specifically incorporated herein shall be of any forc e or effect, nor shall any such oral agreement, understanding or representation be binding upon the partie s hereto . For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement, the sai d specification and incorporated documents. Street Sweeping – Specification 50320-2013SS Authority to Execute Agreement. Both City and Contractor do covenant that each individual executing thi sagreement on behalf of each party is a person duly authorized and empowered to execute Agreements for suc hparty. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year firs tabove written . CITY OF SAN LUIS OBISPO :CONTRACTOR : Katie Lichtig, City Manager By: APPROVED AS TO FORM : Christine Dietrick, City Attorney • • Street Sweeping – Specification 50320-2013SS Pagt.ryfd6 1st Tuesday DONNA.'al z f3iofa;a(c aC z 1V a d R AIG i a ;a % i MRO ROJAULDO .'/r HIGHLAND 1st Wednesda y cc , CFRR9 ROM~OLD O is ; LL I FOOTHILL STENNE R TORO ;HOWARD ORANG E KEN CKY LONGVIEW ALBER T TURNER TURNE LEROV GR/JES ERSO N NA VI S • )'s-d\iW 3lflOb -V 1I81HX3 3rd Monday mX HARMONY o =0\0JSQUTHWOODI a ;o N A SOUTH W STONERIDGE B 9 BIAN CHI+ Oz SANDERCOOC x BRA,1 Wwl CC Wam 0 ___SOUTHz o F-NA a w EXHIBIT A - ROUTE MAPS/' Op6~.P \p : -4 u • z C3-34 PAULINE DH' SLVIA .~,O 1-4)e, r -1.I F4 j 4P SAN`SP «~QCy 9.?.cri ~P~LpS O E N A C3-3 5 1.L FAF ORIANDER V ti(P EXHIBIT A - ROUTE MAP SEveryother Monday S BRANCH -of < CORRIDA 6 CAUDIL L O G Q .J MITCHEL L LAWRENC E S TONE RID GE - ? ,I, py 9-PI-'tp<t, °S9OQOe-ps ..1p,P s0 ~rO't'. Ep Ey 9 (O sP P~ 90 SyO~\~~) P PP,O :Q ..P vim ,A7 w 9 S .. 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RESS HOWAR D STORY S Saturday & Sunda y (Separate Quote) Section E PROPOSAL SUBMITTAL FORM S ACKNOWLEDGEMEN T The undersigned declares that she or he : •Has carefully examined Specification No . 50320-2013S S •Is thoroughly familiar with its conten t •Is authorized to represent the proposing firm ; and •Agrees to perform the work as set forth in the specification and this proposal . Firm Name and Address : Contact Name : Email :Fax :Phone : Signature of Authorized Representative :Date : COST PROPOSA L Estimated quantities shown are approximate . In the case of arithmetic discrepancy between item prices and tota l prices, item prices shall prevail of total prices for determining final unit cost for payment . Description Unit of Measure Estimated Annua l Quantity Item Price (in figures) Total (in figures) Citywide Street Sweeping Curb Mile 7,300 Miscellaneous Extra Sweeping*Curb Mile 30 Downtown Core Weekend Sweeping*Curb Mile 5 * Additional items to be considered fo r inclusion INSURANCE CERTIFICAT E Insurance Company's A .M . Best Rating Certificate of insurance attached • • • Street Sweeping — Specification 50320-2013SS Pagrb14 6 • • • REFERENCE S Number of years engaged in providing the services included within the scope of the specifications under th epresent business name : Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the service sincluded with the scope of the specifications . Attach additional pages if required . The City reserves the right t ocontact each of the references listed for additional information regarding your firm's qualifications . Reference No,1 Reference No.2 Customer Nam e Contact Individua l Telephone & Emai l Street Address City, State, Zip Cod e Date of Service s Contract Amoun t Miles Swept / Other Services Provided : Customer Nam e Contact Individual Telephone & Emai l Street Address City, State, Zip Cod e Date of Service s Contract Amoun t Miles Swept / Other Services Provided : Street Sweeping — Specification 50320-2013SS Pagtt(g 6 Reference No.3 SAFETY RECORD Describe incidents occurring within the last 5 years for the company's sweeping operations . Date Nature of Incident Cause Typ e q Bodily Injur y q Property Damage> $1,00 0 q Other q Bodily Injur y q Property Damage> $1,00 0 q Other q Bodily Injury q Property Damage> $1,00 0 q Other q Bodily Injury q Property Damage> $1,00 0 q Other q Bodily Injur y q Property Damage > $1,00 0 q Othe r q Bodily Injury q Property Damage > $1,00 0 qOthe r q Bodily Injur y q Property Damage> $1,00 0 q Other q Bodily Injury q Property Damage> $1,00 0 q Other DBodily Injur y q Property Damage> $1,00 0 q Othe r q Bodily Injury q Property Damage > $1,00 0 q Other Attach additional sheets if needed . Customer Nam e Contact Individual Telephone & Emai l Street Addres s City, State, Zip Cod e Date of Services Contract Amoun t Miles Swept / Other Services Provided : • • • Street Sweeping – Specification 50320-2013SS Pagbi d 6 • Section F INSURANCE REQUIREMENTS : Contractor Service s The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries t o persons or damages to property which may arise from or in connection with the performance of the work hereunde rby the Contractor, its agents, representatives, employees or sub-Contractors . Minimum Scope of Insurance . Coverage shall be at least as broad as :1.Insurance Services Office Commercial General Liability coverage (occurrence form CG 20 10 Prior to 1993 or CG 20 10 07 04 with CG 20 37 10 01 or the exact equivalent as determined by the Citv).2.Insurance Services Office form number CA 0001 (Ed . 1/87) covering Automobile Liability, code 1 (any auto). 3.Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance .4.Errors and Omissions Liability insurance as appropriate to the Contractor's profession . Minimum Limits of Insurance . Contractor shall maintain limits no less than :1.General Liability : $1,000,000 per occurrence for bodily injury, personal injury and property damage . I fCommercial General Liability or other form with a general aggregate limit is used, either the general aggregat elimit shall apply separately to this project/location or the general aggregate limit shall be twice the require doccurrence limit .2.Automobile Liability : $1,000,000 per accident for bodily injury and property damage .3.Employer's Liability : $1,000,000 per accident for bodily injury or disease . 4.Errors and Omissions Liability : $1,000,000 per occurrence . Deductibles and Self-Insured Retentions . Any deductibles or self-insured retentions must be declared to an d approved by the City. At the option of the City, either : the insurer shall reduce or eliminate such deductibles o rself-insured retentions as respects the City, its officers, officials, employees and volunteers ; or the Contractor shal lprocure a bond guaranteeing payment of losses and related investigations, claim administration and defens e expenses . Other Insurance Provisions . The general liability and automobile liability policies are to contain, or be endorse dto contain, the following provisions :1.The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects :liability arising out of activities performed by or on behalf of the Contractor, products and completed operation sof the Contractor ; premises owned, occupied or used by the Contractor ; or automobiles owned, leased, hired o rborrowed by the Contractor . The coverage shall contain no special limitations on the scope of protectio nafforded to the City, its officers, official, employees, agents or volunteers .2.For any claims related to this project, the Contractor's insurance coverage shall be primary insurance a srespects the City, its officers, officials, employees, agents and volunteers . Any insurance or self-insuranc emaintained by the City, its officers, officials, employees, agents or volunteers shall be excess of th eContractor's insurance and shall not contribute with it .3.The Contractor's insurance shall apply separately to each insured against whom claim is made or suit i sbrought, except with respect to the limits of the insurer's liability . 4.Each insurance policy required by this dause shall be endorsed to state that coverage shall not be suspended ,voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior writtennotice by certified mail, return receipt requested, has been given to the City . The Contractor agrees to notif y the City in the event that the policy is suspended, voided or reduced in coverage or limits . A minimum of 3 0days prior written notice by certified mail, return receipt requested, will be provided . Acceptability of Insurers . Insurance is to be placed with insurers with a current A .M . Best's rating of no less tha nA:Vll . Verification of Coverage . Contractor shall furnish the City with a certificate of insurance showing maintenance o fthe required insurance coverage . Original endorsements effecting general liability and automobile liability coverag e required by this clause must also be provided . The endorsements are to be signed by a person authorized by tha tinsurer to bind coverage on its behalf . All endorsements are to be received and approved by the City before wor kcommences. Street Sweeping —Specification 50320-2013SS Pagt1 $-/6 • • Attachment 2 Section 405-C : Policie s MAINTAINING PROPER FLEET SIZ E 1 . Minimum Fleet Size.The number of units in the fleet should not exceed the minimu m number of units needed to effectively conduct City business . 2 .Reviewing Vehicle Use .When budgeting for fleet replacements, average annual mileag e or hours should be calculated for each unit to be replaced . If average annual use appear s to be much lower than the average annual use within the same vehicle or equipmen t category, the following options should be considered instead of replacement: a.Using a vehicle assigned to a convenient vehicle poo l b.Occasionally borrowing from, or establishing on-going shared equipment with another operating program . c.Renting a vehicle or equipment item for a limited period of time in accordanc e with Financial management Manual requirements and City Manager approva l where required . d.Reimbursing employees for use of privately-owned personal vehicles where it is a practical or necessary alternative to City vehicle use, particularly if such use ma y result in reduction in fleet size and does not conflict with trip reduction efforts . e.Leasing of select construction or alternative fuel equipment . 3 . Reimbursement for Business Use of Personal Vehicles .When use of a privately - owned personal vehicle is authorized for City business, reimbursement will be made a t the current Internal Revenue Service rate allowed for business use of vehicles . Consistent with the IRS calculation of this rate, the per mile reimbursement rate wil l reflect all costs associated with operating a vehicle, including, but not limited to, depreciation, lease payments, maintenance, repairs, fuel, oil, insurance, and vehicl e registration fees . 4 .Timely Disposal of Replacement Units .Replacement of units will not be used as a strategy to expand the fleet either temporarily or permanently . When a unit is replaced, i t will expeditiously be declared surplus and be disposed of, except that the City Manage r may approve a one-time temporary retention and use not to exceed 180 days . a.The General Fleet Coordinator may retain one surplus general purpose sedan o r pickup truck for a loaner vehicle to be used by departments when their vehicle s are being serviced . b.The General Fleet Coordinator may retain one surplus backhoe/loader for light - duty use at the Corporation Yard . 5 .Authority to Dispose of Surplus Units .The Director of Finance & Informatio n Technology is authorized to : a.Declare replaced units as surplus whenever the Council has previously approve d replacement through the budget process or other Council action . b.Dispose of surplus units by sale, auction, trade-in, or other disposal metho d according to City policies and procedures . 405-6 C3-48 • • •