MEETING DATE:
May 14, 2024
Title
RESOLUTION NO. 2024-9285 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS APPROVING THE PROCUREMENT OF EQUIPMENT TO FACILITATE TRANSITION OF THE STREET SWEEPING PROGRAM TO IN-HOUSE SERVICE DELIVERY, AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE, FINALIZE, AND EXECUTE RELATED AGREEMENTS AND TO APPROPRIATE NECESSARY FUNDS IN THE FY 2024-25 OPERATING BUDGET FOR THE SAME
Body
Recommendation
Recommendation
ADOPT a resolution granting the City Manager authority to negotiate and execute related agreements to procure necessary equipment and to appropriate monies in the fiscal year 2024-25 operating budget related to the transition of the street sweeping program to in-house service delivery .
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Planning for the Future
Dynamic and Responsive Service Delivery
Good Governance
Relevant Department Goal
Not Applicable
Executive Summary
The Public Works Department is responsible for street sweeping 373 curb miles within the City limits as well as City parking lots. Since 2007, the City has delivered this service via contractor with the most recent contract starting in 2020, utilizing Cannon Pacific Service (who was subsequently acquired by Sweeping Corporation of America (SCA)). The current contract ends in February of 2025. After an in-depth analysis, staff have determined the best value for providing street sweeping services is no longer through a contractor, rather with in-house staff. To transition the program from contract services, staff are requesting approval to authorize the City Manager to negotiate and execute a lease agreement or the related equipment and appropriate budget as necessary.
Discussion
Post-COVID, the Public Works Department has experienced an average of 30% to 40% increases in contractor-provided services due to the underlying inflation and labor cost increases. Based on evaluation of comparable City rates and recent trends in contract services, staff expects a similar increase in the cost of street sweeping services once a bid process is initiated. An analysis was conducted to compare this assumed cost with the cost of providing the service via in-house staff and equipment.
The analysis was conducted with the intent to provide the same level of service (or better) that is currently delivered by SCA.
In order to provide equivalent service, the City would need street sweepers (2), FT operators (2) and an additional mechanic (1).
After evaluating both approaches for completing this work, staff has determined that utilizing in-house staff provides the best value for the City and provides Public Works with a streamlined approach to efficiently manage this work. Estimates show a savings of approximately $961K over a 10-year period. Based on trend in the region, this analysis assumes the City would incur a 30% increase in the contract service costs starting in FY 2024-25.
In addition to the cost savings, the transition in service delivery will provide the following:
• Greater control and quality with a continued division focus on the cleanliness and safety of streets covering both normal operating hours and afterhours.
• Greater ability to assist with specialized requests from other departments and agencies such as Housing, Development Services, Parking Enforcement, etc.
• Greater flexibility in terms of deployment and an ability to respond more swiftly to immediate needs, such as unexpected debris and clutter after storms, public events or car accidents.
• Increased efficiency and utilization of staff hours along with more control over costs since this work will no longer be subject to contract price increases or prevailing wage.
• Greater community focus, which leads to greater care in work and a better understanding of the specific needs and challenges of certain areas.
Per the above analysis, staff recommends that the City transition from contract service to in-house delivery for street sweeping ,and that the City Council delegate authority to the City Manager to negotiate and execute a lease agreement for the equipment and appropriate budget as necessary.
Environmental Review
The activity performed under this action is not a “Project” as defined under Section 15378 of the CEQA Guidelines and is therefore not subject to environmental review pursuant to CEQA Guidelines section 15060(c)(3).
Fiscal Impact
Approval of the proposed action would delegate authority to the City Manager to negotiate and execute an agreement for the lease of street sweeping equipment, and appropriate budget as necessary for leased equipment and additional Public Works staff to operate the City’s street sweeping program in the City’s Fiscal Year 2024-2025 Annual Operations & Capital Improvement Program Budget.
Attachment(s)
Resolution XXXX
Prepared by: Darren Chamow, Public Works Director
Submitted by: Darren Chamow, Public Works Director
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager