HomeMy WebLinkAbout12 - Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation dba Sunset Property Services - CorrespondencewP,mW Athens Services
Received After Agenda Printed
April 28, 2020
Item No. 12
Date: 4-27-2020
To: Mayor Will O'Neill
Mayor Pro -Tem Brad Avery
Council Member Joy Brenner
Council Member Diane B Dixon
Council Member Duffy Duffield
Council Member Jeff Herdman
Council Member Kevin Muldoon
City Manager Grace K. Leung
Utilities Director Mark Vukojevic
From: Gary M Clifford, Executive Vice President, Athens Services
Re: Agenda Item No 12 (Street Sweeping) and Public Comment Period
Esteemed Mayor, Mayor Pro -Tem, City Council, City Management, and Utilities Director,
My name is Gary Clifford and I am the Executive Vice President of Athens Services, your current
street sweeping partner and a non-exclusive commercial solid waste franchisee. By way of
introduction and experience, I would like you to know that I also have over 20 years of municipal
experience as an employee, supervisor, city council member, mayor pro -tem, and mayor. In
addition, I have been serving local communities for an additional 15 years. I bring this to your
attention so that you may spend a few minutes, read this memo, and understand my position.
Tomorrow night (4-28-2020), you will consider an action to award your street sweeping contract
to Sunset Properties. I ask that you reconsider this recommendation and award the contract to
your tried and true street sweeping partner, Athens Services. We have served the city as your
street sweeper for over ten years and we feel that we are the experts in this field. Your staff has
codified this by awarding Athens the highest technical score, 45 points. Please note that Athens
responded to your current RFP with expertise and diligence knowing the needs of your special
Newport Beach citizens and business customers with the knowledge of what your staff expects,
and the brand new equipment required. Our price was the highest however; we were in the
competitive market range of two other sweeping companies; Dickson and CR&R. If you look at the
total score, you can see the two aforementioned and Athens are very close. There is one outlier,
Sunset, who gained a big spread by a low price. Note that I also teach college statistics among
other subjects and we refer to this variable as an "outlier". Usually when one variable is so far
removed from the rest, there is cause for concern. As an expert in this field, I have grave concern
in the ability of any company performing under the guidelines of your current RFP including
added sweeping miles and five brand new sweepers with a sixth being no older than two years
for an annual cost of $736,291.00. Regardless of overhead structure as mentioned in the staff
report, and other cost variables, just the new sweepers, increased curb miles, and current legal
labor and benefits for employees exceeds this amount. Please take note of this fact.
P.O. Box 60009, City of Industry, CA 91716
(888) 336-6100
wP,MW Athens ServicesZero Waste Partner--'
For at least five years, we have worked with staff to bring your pricing in line with the current
standards including legislative increases, labor and benefit increases, and other related costs. We
have asked for extraordinary rate increases to try and keep up with the cost of living, in addition
to extending our current contract at a lower rate. All have met with negative results. Currently we
have met with Utilities Director Mark Vukojevic in an attempt to continue our services at a
reduced rate of $1,110,000 annually so that our superior performance can remain in place. This
can only be accomplished by using "like new" sweepers instead of brand new. Try as we could,
there is no possible way to reduce our sweeping to the low bid price of $736,291, even using "like
new" sweepers. I would note that Director Vukojevic and his team have been very professional
and helpful during this period.
Athens has served Newport Beach proudly for over 10 years. Your customers have grown to
expect our excellent operational performance and our customer service. Before this award, I
think staff should tour the sweeping yards and operations yards and see the operations, and
especially the customer service department. We have a live call center with over 65 agents that
answer calls with immediacy.
As an experienced city official and a tactical sweeping expert, I ask you to please research this
issue and allow Athens Services to continue servicing your city. Our reduced rate will put us at
the best price rating, along with the best technical rating. There will not be any change of service
and things will continue smoothly for your citizens. As legislation and NPDES rules continue to
change, street sweeping becomes a very important part of your waste management services.
Athens continues to be a leader in Southern California in this arena.
I strongly urge you to reconsider the recommendation due to the low price. It is just not tenable
in any circumstance.
I appreciate your attention to this matter, and the opportunity Athens has had in serving your
community and being good stewards to your resources. I would hate to see this decision go
forward and fall apart later due to the circumstances I mentioned previously.
You may contact me any time. I am able to travel to your location for a meeting, keeping social
distancing in mind. I will also be speaking at your meeting during public comment tomorrow. My
contact information is Gary M Clifford, cell 626-705-6919; gclifford0athensservices.com. Please
feel free to reach out.
Respectfully Submit
Gary M Clifford
Executive Vice President
Athens Services
P.O. Box 60009, City of Industry, CA 91716 Ath_
(888) 336-6100 F