REJECT PROPOSAL OF SERVICE CONTRACT FOR

SWEEPING OF STREETS, ALLEYS AND

DOWNTOWN AREA CLEANING IN HERMOSA BEACH

Recommendation:

It is recommended that the City Council:

Reject all bids and rebid the proposal.

Background:

The Public Works Department developed specifications for sweeping of City streets and alleys and downtown area cleaning. The current downtown area cleaning contract expires on June 30, 1998. The current street sweeping contract expired on June 30th 1997 and was mutually extended on a month-to-month basis. The City Council has requested that the service contracts run concurrently.

The Public Works Department sent notices to twenty qualified companies and advertised in the Easy Reader (Legal), Daily Construction Service and F.W. Dodge (Greensheet). A pre-bid meeting was attended by six company representatives on April 30, 1998. On May 7, 1998 the City Clerk's Office received one complete bid and one partial bid.

Analysis:

The current yearly costs for Street Seeping are $115,200 and the current yearly cost for Downtown Maintenance is $47,675 equaling a combined yearly total of $162,875. The one complete bid was for $231,900 per year with a 3-year bid total of $695,700. This represents a 42% first year increase of the combined total contracts. The additional bid was non-responsive.

In developing the specifications for the proposals, significant changes and/or increases were developed, including:

1. The steam cleaning frequencies were increased, from 8 - 12 per year.

2. The area to be cleaned has significantly changed and/or increased in square footage, notable the new Lower Pier Plaza, by over 30,000 square feet.

3. All street sweepings and trash must be removed from the City pursuant to the City Yard not being available.

4. New emphasis on hours of operations will require multiple machine operations, required by hour of operation constraints.

Fiscal Impact:

If Council chooses to accept this proposal the FY 98-99 budget will be affected by $231,900. ($695,700 for 3 years).

Alternatives:

1. Reject all bids and rebid. This will cause a delay in awarding the contract.

2. Accept the proposal. Instruct staff to sign a contract with California Street Maintenance. This will require an additional appropriation of $65,766. This would increase the recommended budget(s) from $166,134 to $231,900.

3. Continue on a month-to-month contract with our current contractors.

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