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    15.    
City Council Regular
Meeting Date: 06/09/2020  

SUBJECT:
AMENDMENT NO. 3 TO AGREEMENT NO. A2015-149 WITH ARAKELIAN ENTERPRISES, INC., DBA ATHENS SERVICES
RECOMMENDATION:
Authorize the execution of Amendment No. 3 to Agreement No. A2015-149 with Arakelian Enterprises, Inc. (Athens Services), increasing the total annual not-to-exceed amount from $168,400 to $173,452 and extending the agreement term to June 30, 2021.
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 that have since been exercised. The current agreement is set to expire on June 30, 2020.  

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 Parkway, 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.  

On September 11, 2018, the City Council authorized Amendment No. 2 which included a 3.624 cost escalation in accordance with the Consumer Price Index.  This Amendment also provided for an additional reduction of street sweeping frequency on arterial streets to one time per month.  However, the arterials continue to be swept bi-monthly from October through January, as this is when deciduous trees and plants lose the majority of their leaves. These changes resulted in a net annual reduction of $13,500 for a total amount of $168,400 per year. 

Staff is requesting that the City Council authorize Amendment No. 3 to extend the agreement term an additional year to expire June 30, 2021, with a 3% cost increase in FY 2020-21. This extension will provide staff the opportunity to reevaluate street sweeping operations and develop a new RFP.   
 
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 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 Street Sweeping proposed budget to cover the Fiscal Year 2020-21 cost of the Arakelian Enterprises, Inc. (Athens Services) contract.  There is no impact on the General Fund with this item.
REVIEWED BY OTHERS:
This agenda item has been reviewed by the Finance Director. 
Attachments
Amendment No.3 - Athens A2015-149

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