Report to Mayor and City Council
Tuesday, June 07, 2022
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF SIXTH AMENDMENT TO CONTRACT SERVICES AGREEMENT FOR STREET SWEEPING SERVICES WITH NATIONWIDE ENVIRONMENTAL SERVICES (C-08-001) TO APPROVE 6.6% ANNUAL CONSUMER PRICE INDEX COST OF LIVING RATE ADJUSTMENT AND AMEND SECTION 2.3 TO ALLOW CITY MANAGER TO APPROVE CPI ADJUSTMENTS TWO OUT OF EVERY THREE YEARS (CITY COUNCIL).
Body
I. SUMMARY
On April 6, 2022, Nationwide Environmental Services ("NES") submitted a request for an annual cost of living increase per the Consumer Price Index ("CPI"), in the amount of $5,464.28 per month, which equals 6.6% of the contract sum. If approved, this increase will be effective July 1, 2022 as the City and NES agree that the rate increase will not take effect until then. (Exhibit No. 1)
The request for the CPI increase was submitted pursuant to Section 2.3 of NES' Agreement. As amended, the Agreement authorizes annual CPI adjustments to be granted by the City Council upon request along with the submission of supporting documents by NES.
The proposed Sixth Amendment to the Agreement would grant the increase request. The requested CPI increase to the annual contract sum will be allocated from the Gas Tax Account. The annual increase of $65,571.34 will be included within the FY 2022-23 budget, bringing the annual contract total to $1,059,076.51 from $993,505.17. (Exhibit No. 2)
Additionally, through the Sixth Amendment, City and Contractor intend to amend Section 2.3 of the Agreement to provide that the City Manager shall have authority to approve the CPI increases granted pursuant to Section 2.3 of the Agreement two out of every three years, with City Council approval being required only every third year.
II. RECOMMENDATION
Recommendation
1. APPROVE the proposed Sixth Amendment to the Contract Services Agreement with Nationwide Environmental Services, Inc., a division of Joe's Sweeping, Inc., to Provide Street Sweeping Service...
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