2012 2:00:00 PM

Monday, April 9, 2012 2:00 PM
745 4th Street, Sparks, NV 89431

General Business: 6.1

Title: Consideration and possible approval to terminate the contract with Contract Sweeping Services for routine street sweeping services (CONTINUED FROM MARCH 26, 2012 CITY COUNCIL MEETING).

Petitioner/Presenter: Neil C. Krutz, P.E., Community Services Director/Ron Korman, Fleet and Facilities Manager

Recommendation: Staff recommends the contract be terminated.

Financial Impact: There is no direct cost to cancel the contract. City staff would be assigned to routine street sweeping until the service can be re-bid and a new contract awarded.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: On January 23, 2012 the City Council considered this item and instructed staff to give the Contractor another month to demonstrate improvements in service. Since that time we continue to receive complaints to note substandard performance and have issues with inaccurate and overstated invoices. For these reasons, staff is seeking termination of the contract.

Background: We would like to begin by saying we would prefer this contracted service operate smoothly. When we contracted this service we expected the contractor would fairly and completely fulfill their obligations in the same way that the contractor expects to be paid for the services provided. As managers in the Maintenance Division, it is our duty to verify that the City receives the services we are invoiced for. We have two ways of verifying this service has been performed. 1. Staff goes out to the field where they check areas that have been swept to make sure the work has been done to City standards. 2. Analyze the GPS reports to verify the mileage we are billed for matches the actual mileage. Contract Sweeping Services has not been in compliance with the terms of the contract since the implementation of the contract In July of 2011. Since the contract’s inception there have been performance and invoicing issues. City staff has met with the contractor on numerous occasions to try and resolve the issues. On January 23, 2012 staff brought a recommendation to the City Council to terminate the contract. The City Council continued the item to provide the contractor an additional month to improve the quality of service and meet the terms of the contract.

Analysis: Since the January 23, 2012 City Council direction staff continues to see performance issues with the sweeping and we continue to receive complaints from citizens. Sweepers are still leaving debris in road ways, not sweeping gutters and sweeping around debris instead of getting out of the sweeper to pick up the debris. Staff has provided pictures that demonstrate many occurrences where the contractor has failed to meet the City standards. However, the invoicing is where we have the biggest problem. The invoices do not match the GPS reports and mapping the GPS data shows that some streets are swept as many as seven times during the month. The contract clearly stipulates the mileage that should be swept monthly, and the frequency that these roads should be swept. Staff has recalculated the road mileage in the City to verify that the contract is accurate. After thorough analysis, Contract Sweeping Services is sweeping some streets more frequently than contracted to sweep, and is driving the cost to the City up. When analyzing the GPS track of the sweepers we have found their movements to be inefficient, again artificially driving the cost to the City up. The invoice for January 2012 indicated a doubling of mileage from the previous month. Upon review staff determined that the invoice included the mileage for re-sweeping. We verified this determination with the contractor and pointed out that the City is not required to pay for this mileage per the terms of our contract. This matter remains unresolved. Given that performance has not improved staff recommends the City Council terminate the contract with Contract Sweeping Services. City staff including the City Attorney and Contracts Manager has notified Contract Sweeping Services in person and in writing that they are in violation of the terms of the contract. Staff has followed the steps outlined in Section 3 subsection g; under Special Conditions and Specifications (Specific to Project) in documenting these meetings and specific violations. Clause 16 of the contract allows for termination of this contract for any reason without penalty with 30 days notice. The notice has been given.

Alternatives: 1. Council could direct staff to continue to work with Contract Sweeping Services to cure all defects. 2. Council could provide further direction to the City Manager.

Recommended Motion: I move to terminate the contract with Contract Sweeping Services.

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