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Page 2 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />On October 23, 2023, the City Council adopted Ordinance No. 2530 to update specific fees. Through this <br />action, the City Council approved an updated Fleet Mechanic Blended Rate (Mechanic Rate) of $147.37, <br />effective November 22, 2023. Following the Council’s action, staff began drafting new agreements with <br />all outside agencies receiving fleet maintenance services to reflect the updated Mechanic Rate. PWS <br />afforded a grace period before the new rate took effect to allow City staff the opportunity to execute all <br />agreements and update its billing system in a manner that created efficiencies in operations. <br />Between May 28 and June 4, 2024, the City Manager executed entrepreneurial contracts with four outside <br />agencies to allow the City to continue providing fleet maintenance services. <br />ANALYSIS <br />The resulting agreements formalized the new rate and renewal terms that will reduce administrative time <br />spent by all parties in managing these contracts moving forward. Each agreement shall auto-renew <br />annually for up to ten years, with each party having the ability to terminate their respective agreement at <br />any time upon giving 30-day written notice. Each agreement also authorizes a 3% rate increase to take <br />effect on July 1 of each year that the agreements remain active. The table below summarizes the agencies <br />receiving services and corresponding annual not-to-exceed contract amounts. The annual not-to-exceed <br />amounts of the agreements were established by taking into consideration current revenue projections <br />and the anticipated 3% rate increases over time. Based on staff’s analysis, the not-to-exceed amounts of <br />the respective agreements do not need to be increased annually. <br />Agency Annual Not-to-Exceed Contract Amount <br />City of San Carlos – Fire $75,000 <br />Town of Atherton $75,000 <br />West Bay Sanitary District $60,000 <br />Silicon Valley Clean Water $60,000 <br />FISCAL IMPACT <br />The newly executed agreements will ensure that the City is recovering costs for providing services to <br />outside agencies. Staff will monitor for any changes in revenue and submit a mid-year or year-end <br />amendment for the Fiscal Year 2024-2025 budget, if necessary. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />6.R. - Page 2 of 3 <br />611