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STAFF REPORT
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Development Services Department
DATE: July 7, 2015
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
By- Jim Kasama, Community Development Administrator
SUBJECT: EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH
WOODS MAINTENANCE SERVICES, INC., DBA GRAFFITI CONTROL
SYSTEMS FOR GRAFFITI REMOVAL SERVICES IN AN AMOUNT NOT
TO EXCEED $60,000
Recommendation: Approve
SUMMARY
The City of Arcadia provides graffiti removal services by agreement with a company that
specializes in the service. The current Professional Services Agreement ( "Agreement ")
with Woods Maintenance Services, Inc., which provides graffiti removal services as
Graffiti Control Systems, was awarded through a Request for Proposals process in
2010. The Agreement was for an initial term of three years with the possibility of three,
one -year renewals. Fiscal Year 2015 -16 is the final potential renewal period. The prior
two renewals were approved per the terms and conditions in the original Agreement.
This past year, however, the State passed two new laws that affect contracts for
maintenance services; specifically, they require that prevailing wages be paid.
In response to the new laws, Graffiti Control Systems provided new service rates, which
are triple the rates listed in the original Agreement. While this is a significant increase,
they appear to be an accurate reflection of cost associated with providing prevailing
wage rates. The current Agreement with Graffiti Control Systems is for an annual not -to-
exceed amount of $60,000; however, the annual costs have come in much lower in
recent years, averaging about $18,000. Therefore, an increase in the contract limits is
not necessary at this time, even with the significant increase in rates.
It is recommended that the City Council authorize and direct the City Manager to
execute a one year extension to the Professional Services Agreement for Fiscal Year
2015 -16 in an amount not to exceed $60,000.
Extension to Professional Services Agreement
for Graffiti Removal
July 7, 2015
Page 2 of 4
BACKGROUND
The current Agreement with Graffiti Control Systems was awarded through a request for
proposals process for a three -year term that expired on June 30, 2013, for a maximum
compensation of $60,000 per fiscal year, with an option to renew on a yearly basis for a
maximum of three, one -year periods. The first renewal option was approved on June
18, 2013, and expired on June 30, 2014. A second renewal was approved on June 3,
2014, and expired on June 30, 2015. A third and final renewal option may be approved
for Fiscal Year 2015 -16.
Woods Maintenance Services, Inc. was established in 1975, and began providing graffiti
removal services in 1997. They provide this service for the nearby communities of San
Gabriel and Temple City and the unincorporated areas of the County of Los Angeles.
Their development and use of state -of- the -art methods and equipment sets them apart
from other companies. For instance, they have a graffiti tracking system, called Tracking
and Automated Graffiti Reporting Systems ( "TAGRS ") that can be employed in cases of
repeated occurrences so that the graffiti, its frequency, and the costs of its eradication
can be documented to assist law enforcement with the prosecution of the vandals and
the collection of compensation.
The expeditious removal of graffiti is essential to limiting its occurrence. The Agreement
calls for a response to a request for service within 36 hours and within 24 hours if the
graffiti is particularly offensive. Graffiti Control Systems has been able to provide the
specified level of response, and has been providing excellent graffiti removal services in
a cost - effective manner, usually within a day. They directly monitor the City's Graffiti
Hotline, have a fleet of specialized vehicles and equipment, and they utilize state- of -the-
art methods that effectively remove or cover the graffiti without damaging the surface or
leaving an obvious discoloration.
Prior to contracting for graffiti removal, this work was done by the Public Works Services
Department for occurrences on public property, and Code Services contacted property
owners to have graffiti removed from private property. These methods did not provide
the desired level of effectiveness. It is not cost - effective to have a Public Works
Services vehicle and crew on stand -by to respond to instances of graffiti on a daily basis
and, if Code Services is to contact and follow up with private property owners to have
graffiti removed, it typically will take at least a week for the removal to be done. It is
clear that having a contractor that specializes in this service is much more effective.
Extension to Professional Services Agreement
for Graffiti Removal
July 7, 2015
Page 3 of 4
DISCUSSION
The annual cost for the graffiti removal service by the prior provider, Urban Graffiti
Enterprises, was consistently around $60,000. As a result, when the contract with
Graffiti Control Systems was developed, this not -to- exceed amount was utilized. In the
years that Graffiti Control Systems has had the contract, they have been able to provide
the desired level of service for much less than the contract amount. During the initial
three -year term of the Agreement with Graffiti Control Systems, the average fiscal year
cost was about $18,000. However, these costs were based on the terms of the original
Agreement. Due to SB 7 — a new law that requires public work to be done at prevailing
wages — the rates for various services to cover prevailing wage are estimated to triple
as shown below:
• $36 versus $12 for chemical washing of 100 square feet
• $45 versus $15 for pressure water washing of 100 square feet
• $51 versus $17 for painting of up to 250 square feet
If the amount of graffiti removal work to be performed in Fiscal Year 2015 -16 is similar
to this past fiscal year, the total annual cost would be about $32,000. As was mentioned
above, the contract with Graffiti Control Systems is not -to- exceed $60,000 annually, so
this amount is well within contract limits. Despite this, it does represent a significant
increase in costs that will need to be monitored closely. The budget will be evaluated at
mid -year to determine whether additional funding will be needed. Additionally, the
program will be fully evaluated and vetted to inform the next request- for - proposal period
at the end of this fiscal year.
FISCAL IMPACT
Graffiti removal is a General Fund expense, and the Agreement provides for a
maximum compensation of $60,000 per fiscal year. Despite the Agreement amount,
based on Graffiti Control System's performance over the past several years, a total of
$20,000 was budgeted for Fiscal Year 2015 -16. This amount would have covered the
cost of graffiti removal for the next fiscal year based on the original terms of the
contract. Based on the terms necessary to comply with SB 7, the budgeted amount
may be inadequate. If this proves to be the case, additional funding will be requested as
part of the mid -year budget review.
Extension to Professional Services Agreement
for Graffiti Removal
July 7, 2015
Page 4 of 4
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
execute a one -year extension to the Professional Services Agreement with Woods
Maintenance Services, Inc., dba Graffiti Control Systems, for graffiti removal services in
an amount not to exceed $60,000.
Approved:
Dominic La77ar
City Manager
Attachment: Draft Amendment No. 1
AMENDMENT NO. 1 TO THE PROFESSIONAL
SERVICES AGREEMENT FOR GRAFFITI REMOVAL SERVICES
BY AND BETWEEN THE CITY OF ARCADIA AND
WOODS MAINTENANCE SERVICES
This Amendment No. 1 ( "Amendment No. 1 ") is hereby entered into by and
between the City of Arcadia, a charter city organized under the Constitution and laws of
the State of California, and Woods Maintenance Services, a California Corporation, with
respect to that certain Professional Services Agreement between the Parties entered
into on September 27, 2010 ( "the Agreement ").
The Parties agree as follows:
1. Section 3.1.2 of the Agreement is amended by extending the term from July 1,
2015, through June 30, 2016 ( "Extended Term ").
2. Section 3.3.1 of the Agreement, is amended for the Extended Term, that the total
compensation shall not exceed Sixty Thousand Dollars ($60,000), as referenced
in the attached "Exhibit C ".
3. All of the remaining terms and provisions of the Agreement are hereby
reaffirmed.
In witness whereof, the parties have executed this Amendment No. 1 on the date
set forth below.
[SIGNATURES ON THE NEXT PAGE]
CITY OF ARCADIA
Dominic Lazzaretto
City Manager
Dated:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
WOODS MAINTENANCE SERVICES
Barry K. Woods
President
Dated:
Signature
Print Name and Title
Dated:
CONCUR:
Jason Kruckeberg
Assistant City Manager/
Development Services Director
Exhibit "C"
COMPENSATION
The total compensation for the Extended Term from July 1, 2015, through June 30,
2016, shall not exceed Sixty Thousand Dollars ($60,000).
For the Extended Term, the following rates have been added:
Chemical Removal - $36.00 for 100 sq. ft.
Pressure Washing - $45.00 for 100 sq. ft.
Painting — Matching Paint - $51.00 for 250 sq. ft.