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CC - (1) Approval of a Five-Year Agreement with Commercial Cleaning Systems to Provide Citywide Janitorial Services at City Facilities in the Amounts of $603,690 (Year 1); $646,548 (Year 2); $695,258 (Year 3); $743,975 (Year 4); and $792,718 (Year 5); and Event Service Workers as Needed at the Hourly Rates of $21.10 (Year 1); $22.66 (Year 2); $24.44 (Year 3); $26.22 (Year 4); and $28.00 (Year 5); and (2) Approve the Necessary Budget Amendment to Cover the Additional Cost Needed for Event Service Workers (A Budget Amendment requires a 4/5th Vote)
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Meeting Date: November 6, 2017
Contact Person/Dept: Eric Mirzaian/Public Works
Phone Number: (310) 253-6444
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/01/2017);
Department Approval: Charles D. Herbertson (10/26/17)
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RECOMMENDATION
Staff recommends the City Council (1) approve a five-year agreement with Commercial Cleaning Systems (CCS) to provide citywide janitorial services at City facilities in the amounts of $603,690 (Year 1); $646,548 (Year 2); $695,258 (Year 3); $743,975 (Year 4); and $792,718 (Year 5); and event service workers as needed at the hourly rates of $21.10 (Year 1); $22.66 (Year 2); $24.44 (Year 3); $26.22 (Year 4); and $28.00 (Year 5); and (2) approve the necessary budget amendment to cover the additional cost needed for event service workers (a budget amendment requires a 4/5th vote).
BACKGROUND/DISCUSSION
The City’s existing agreement with Haynes Building Services (Haynes) for citywide janitorial and event service workers expires on December 31, 2017. Haynes began providing janitorial services at City Hall in 1995. Via separate agreements in subsequent years, Haynes began providing the same services to other City facilities. In 2007, the agreement with Haynes was renewed after conducting an extensive Request for Proposal (RFP) process. The agreement was renewed again in 2012 for a five-year term after Haynes agreed to maintain certain pricing levels.
In May of 2017, Staff released and advertised an RFP to janitorial firms soliciting competitive proposals on a new contract for citywide janitorial and event service workers. On July 20, 2017, the City received proposals from 8 firms:
1. Ultimate Maintenance Services
2. Commercial Cleaning Systems
3. Pride Industries
4. Haynes Building Services
5. Priority Building Services
6. US Metro Group
7. Santa Fe Building Maintenance
8. Image Property Services
Various City staff members then conducted interviews with the top five firms based on total cost to further evaluate these firms and their qualifications and understanding of the RFP requirements. After conducting these interviews and verifying with the references provided, Staff determined that the proposal submitted by CCS is the most responsive to the City’s needs. The proposal submitted by Ultimate Maintenance Services is closely competitive to that of CCS over the projected five-year cumulative term; however, staff felt that CSS had superior experience, technological resources and organizational structure to take on the entire scope of janitorial services required by this contract.
Below is a summary of the cost breakdown among the five firms interviewed:
Janitorial UMS CCS Pride Priority Haynes
Year 1 $572,019 $603,690 $687,941 $768,449 $865,778
Year 2 $572,019 $646,548 $741,735 $798,570 $902,097
Year 3 $582,424 $695,258 $795,726 $858,930 $959,032
Year 4 $591,665 $743,975 $851,563 $919,350 $1,016,274
Year 5 $591,655 $792,718 $916,715 $979,494 $1,075,392
*Event SW UMS CCS Pride Priority Haynes
Year 1 $20.50 $21.10 $17.95 $19.00 $19.97
Year 2 $20.75 $22.66 $17.95 $20.00 $21.22
Year 3 $21.00 $24.44 $19.26 $22.00 $22.85
Year 4 $21.25 $26.22 $21.30 $24.00 $24.48
Year 5 $21.50 $28.00 $23.35 $25.00 $26.12
*hourly rates
The cost amounts for janitorial services above reflect the cost to provide janitorial services to all the facilities identified in the RFP, as well as, the Downtown parking structures, cost of site maintenance at the Transfer Station to prevent contaminants from entering the drainage system of the facility, and the cost to provide necessary janitorial supplies. The cost amounts do not reflect the total annual cost to provide event service workers at the Senior Center and the Veteran’s Memorial Auditorium as this is dependent on the number of events held annually at these facilities; however, the Parks, Recreation & Community Services Department has allocated funding to cover the anticipated costs for these services. The hourly rates to provide event service workers by each firm has been presented above for comparison.
FISCAL ANALYSIS
Approximately $700,000 in funding (including event service workers) has been appropriated within the Fiscal Year 2017-2018 operating budgets of various City departments that utilize janitorial or event service worker services. However, an additional budget amendment in the amount of $100,000 to Veteran’s Auditorium account 10130110.619800 - Other Contractual Services from the General Fund unappropriated reserve is being requested to cover the additional cost needed for event service workers. For informational purposes, approximately $200,000 was expended for the use of event service workers last fiscal year; thus, the budget enhancement will be for approximately $100,000 for the first year of this proposed contract. Budget enhancements will be prepared for subsequent year’s budgets to cover the full costs of janitorial services and event service workers.
A Budget Amendment requires a 4/5th Vote
ATTACHMENTS
1. Cost summary proposal of Commercial Cleaning Systems
MOTION
That the City Council:
1. Approve a five-year agreement with Commercial Cleaning Systems to provide citywide janitorial services in the amounts of $603,690 (Year 1), 646,548 (Year 2), 695,258 (Year 3), $743,975 (Year 4), and $792,718 (Year 5); and event service workers as needed at the hourly rates of $21.10 (Year 1); $22.66 (Year 2); $24.44 (Year 3); $26.22 (Year 4); and $28.00 (Year 5); and,
2. Approval of a budget amendment in the amount of $100,000 to account 10130110.619800 from the General Fund unappropriated reserve (requires a four-fifths vote); and,
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the City Manager to execute such documents on behalf of the City.