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    16.    
City Council Regular
Meeting Date: 06/26/2018  

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), for a one-year extension that includes a 3.624% 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. As a result of this process, the City Council approved a three-year Agreement with Athens Services on June 9, 2015. This agreement expires on June 30, 2018, however, it allows for two additional one-year extensions.
 
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 costs to the street sweeping special assessment district. This resulted in the reduction of $58,000 for a total annual not-to-exceed amount of $181,900.  
 
Due to the ongoing lack of appropriate funding in this special assessment, 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, 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% increase for the one-year extension to their agreement, due to industry-wide cost increases for the work they perform. 
 
The proposed changes will result in a net reduction of $13,500 and an annual not-to-exceed amount of $168,400 for this agreement.  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 §§ 2100, 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 (h) as a Class 1 categorical exemption (Existing Facilities) as it involves the maintenance of existing highways and streets.
FISCAL IMPACT:
The proposed Fiscal Year 2018-19 Street Sweeping budget includes an annual savings of $13,500 for this reduction in service. 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
Athens Amendment No. 2

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