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HomeMy WebLinkAboutItem 2m - Extension to the Professional Services Agreement for Graffiti Removal���GALTFOX,vt9 j�f I ..o Par u d Au guar S�1903 STAFF REPORT o�al�nity of �o 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.