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09-11-2018 CC Rpt 21COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: SEPTEMBER 11, 2018 FROM: CITY MANAGER ITEM NO:21 SUBJECT:AMENDMENT NO. 2 TO AGREEMENT NO. A2015-149 WITH ARAKELIAN ENTERPRISES, INC., DBA ATHENS SERVICES RECOMMENDATION: Authorize the execution of Amendment No. 2 to Agreement No. A2015-149 with Arakelian Enterprises, Inc. (Athens Services), which includes a 3.624 percent increase and reduced service levels, for a total annual decrease of $13,500. BACKGROUND/ANALYSIS: On April 17, 2015, staff issued a Request for Proposal (RFP) for contractors to provide street sweeping services and four Southern California firms responded. On June 9, 2015, the City Council approved a three-year agreement with Athens Services in an annual not- to-exceed amount of $239,900. The agreement included options for two, one-year extensions; the first of which was exercised on July 1, 2018. The current agreement is set to expire on June 30, 2019. The agreement allows for one additional one-year extension. On June 13, 2017, the City Council authorized Amendment No. 1 to reduce the sweeping frequency in arterial areas from four times per month to two times per month. Examples of these locations include Grand Avenue, Chino Hills Parkway, Chino Avenue, Peyton Drive, Soquel Canyon, Butterfield Ranch Road, and other streets that are high capacity usage. The purpose of Amendment No. 1 was to reduce the cost to the Street Sweeping Special Assessment District. This resulted in a reduction of $58,000, bringing the total annual not- to-exceed amount to $181,900. Due to the ongoing lack of sufficient funding, staff is requesting an additional reduction of the sweeping frequency of arterial streets to once a month. However, the arterials will continue to be swept bi-monthly from October through January, as this is when deciduous trees and plants lose the majority of their leaves. Bi-monthly street sweeping will continue as normal within the residential areas. Athens Services also requested a 3.624 percent cost escalation in their agreement in accordance with the Consumer Price Index. The proposed changes will result in a net annual reduction of $13,500 and an annual not-to-exceed amount of $168,400 for this agreement. With Council's approval, Amendment No. 2 will be effective October 1, 2018. Staff will monitor the impact of the service reductions and direct the contractor to perform additional sweeping when needed. ENVIRONMENTAL (CEQA) REVIEW: This action is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.; "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 and is therefore 118/131 exempt from CEQA. Additionally, it is categorically exempt from the requirements of CEQA pursuant to Title 14 California Code of Regulations § 15301 (c) as a Class 1 categorical exemption (Existing Facilities) as it involves the maintenance of existing highways and streets. FISCAL IMPACT: There is sufficient funding in the Street Sweeping operating budget to cover the Fiscal Year 2018-19 cost to the amended Athens contract. Future contract costs will be budgeted for in the appropriate fiscal year. There is no impact on the General Fund with this item. REVIEWED BY OTHERS: This agenda item has been reviewed by the Finance Director. Respectfully Submitted,Recommended By: Attachments Athens Amendment No. 2 119/131 120/131 121/131 122/131 PO" City of Chino Hills Conflict of Interest Form - Council Members Purpose: If you have a Conflict of Interest pursuant to Gov't. Code sec. 87100 et seq., that precludes you from participating in discussion of or voting on an item on the Agenda, please complete this form. Instructions: If the item is on the Consent Calendar: 1) publicly announce the reason for your abstention, 2) prior to the vote complete and provide this form to the City Clerk, and 3) you may remain in the meeting room. If the item is on the Discussion Calendar or a Public Hearing: 1) publicly announce the reason for your abstention, 2) prior to discussion of the item complete and provide this form to the City Clerk, and 3) leave the meeting room. I. Council Member Information Council Member Name Meeting Date r''I o ,7 -! r� �—� II. Financial Interest 1. 1 have a financial interest of �d,rer from/in and therefop I am abstaining from participation on Agenda Item 2 , Subject: &2 2. 1 have a financial interest of from/in and therefore I am abstaining from participation on Agenda Item Subject: III. Signature Council Member Signature: Date: Please remember to state the reason or you abstention into the public record and turn in the completed form to the City Clerk prior to cr si eration of the agenda item(s). This form does not address all potential conflicts of interest. For example, Government Code Section 1090, which prohibits the City Council from approving any contract in which a Council Member has a defined financial interest, is not addressed in this form. Therefore, do not rely on this form to ensure you are in compliance with the law and consult with the City Attorney, the Fair Political Practices Commission and/or your private lawyer if any potential conflict of interest arises.