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HomeMy WebLinkAboutAGENDA REPORT 1995 0503 CC REG ITEM 08DTO: FROM: DATE: ITEM S D _' AGENDA REPORT CITY OF MOORPARK. The Honorable City Coun <. l Baldemar Troche, Public: Works Management Analys April 25, 1995 (CC Meeti.nq of May 3, 1995) SUBJECT: Consider Amendment to the Existing Service Contract with Pacific Sweep for Street Sweeping Services by Deleting Section 9 Pertaining to `Ierformance Bond In January of 1995 the City entered into a five year contract with Pacific Sweep for street sweeping services throughout the City. Said contract requires the Contractor to provide the City with a faithful performance bond, or other security for performance in a form acceptable to the City, at the City's sole discretion, in an amount equal to one hundred percent (100 %) of the contract amount. Said bond or other security must remain in full force and effect for the duration of the contract and for sixty (60) days from the termination of the contract. The security guarantees faithful performance by the Contractor caf all of his obligations and responsibilities under the contras -1 DISCUSSION Staff received a letter (refer t( concerning the subject request. purchase a performance bond was performance bond, Pacific Sweep City for $750 (approximately half price) each year. Exhibit 'A') from Pacific Sweep In 1994, . Pacific Sweep's cost to $1,357. In lieu of requiring a proposes giving a credit to the of the performance bond purchase Upon review of the street sweeping contract, a performance bond is not warranted. Staff recommends that the contract be amended to delete the performance bond requirement. A draft contract amendment is attached as Exhibit '1 The annual credit ($750) will be deducted from Pacific Sweep's invoice submitted each January. Said credit amount will be adjusted accordingly based on the annual cost -of- living adjustment (not to exceed 7 %) in the contract. price. The adjustment occurs each July and is based on the change in the Consumer Price Index for the twelve month period ending the previous May. In Fiscal Year 1994/95, for example, the change in the C.P.I. for the designated period was 0.9 %. Based on this information, the amount of the credit ($750) will. also increase by said percent ($6.75). The credit amount for calendar year 1995 will be pro- rated to reflect the actual numbeir of months the performance bond was not required. 000125 Performance Bond Page 2 Staff recommends that City Council amend the existing service contract with Pacific Sweep for street sweeping services by deleting subsection 9 titled "Faithful Performance Bond" of Section 5 titled "General Provisions "; authorize the Mayor to sign a revised contract; and account for funds received as a revenue to the Gas Tax Fund. \sweep \sweep_c6.rpt 00026 Erhi I , t A PACIFIC SWEEP P.O. Box 604, Somis, CA 93066 PHONE (805) 656 -3583 FAX (805) 3H(; -4105 March 17,1995 [.�eTI City of Moorpark 799 Moorpark Ave. Moorpark, CA 93021 Dear Ken: RECEIVED MAR 2 0 1995 City Of Moorpark Public Works Department Pacific Sweep would like to propose an a4ustment to our contract. Our contract states that a performance bond be obtained annually. In 1994 the premium for the bond was $1,357.00. Pacific Sweep proposes that instead of obtaining a performance bond, a credit be given to the City of Moorpark for approximately half of the bond. Pacific Sweep wotdd credit the City of Moorpark $750.00 annually in lieu of renewing the performance bond. Pacific Sweep has provided sweeping service to the City of Moorpark since 1985 and we look forward to many years of continued service. Please call me if there are any questions or if further information is needed. Thank you for your consideration. Sincerely, PACIFIC SWE P , Jody L 11 'xhibit s AMENDMENT TO AGREEMENT FOR STREET SWEEPING SERVICES THIS AMENDMENT TO AGREEMENT, made and entered into this day of 19_,___, by and between the City of Moorpark, a municipal corporation located in the County of Ventura, State of California, hereinafter referred to as "CITY" and Pacific Sweep, a California Corporation. W I T N F S E 9` H Whereas, on January 1, 1991), the City and Pacific Sweep entered into an Agreement for street sweeping services; and, Whereas, the City and Pacific Sweep wish to amend that Agreement by deleting subsection 9 titled Faithful Performance Bond of Section 5 titled General Proviso; ions NOW, THEREFORE, in consideration of the mutual convents, benefits and premises herein stated, the parties hereto agree to AMEND the aforesaid Agreement as f,)Ilows: A. Deleted Requirement Delete subsection 9 titled "Faithful Performance Bond" of Section 5 titled "General Pr_o,,aisions;". B. New Requirement Pacific Sweep shall provide an annual credit to the City equal to $750. Said credit shall be included in the invoice submitted each January. The credit amount shall be adjusted accordingly based on the annual cost -of- living adjustment (not to exceed 70) in the contract price. The adjustment shall occur each July and is based on the change in the Consumer Price Index for the twelve month period ending the previous May. The credit amount for calendar year 1995 shall be pro -rated to reflect the actual number of months the performance bond was not required as determined by the City. C. Remaining Provisions All other provisions of the Agreement shall remain in full force and effect. CITY OF MOORPARK: By: Paul W. Lawrason Jr., Mayor Attest: City Clerk CONTRACTOR: 00028