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HomeMy WebLinkAboutItem 2f - Contract with ABM Services, Inc.DATE: August 5, 2014 TO: Honorable Mayor and City Council STAFF REPORT Public Works Services Department FROM: Tom Tait, Public Works Services Director By: Jacquelyn Mercado, Public Works Services Office Coordinator SUBJECT: EXTENSION TO CONTRACT WITH ABM SERVICES, INC. FOR JANITORIAL AND PORTER SERVICES AT VARIOUS CITY FACILITIES IN THE AMOUNT OF $288,252 Recommendation: Approve SUMMARY On July 2, 2013, the City Council approved a one year contract with optional one -year extensions, with ABM Services, Inc. ( "ABM ") in the amount of $276,383, to perform janitorial and porter services at various City facilities. ABM has submitted a written offer to extend the contract for an additional year. The contractor's offer reflects an additional annual cost of $3,577 for janitorial services for the newly constructed Museum Education Center, and a 3% contract price increase of $8,292 to offset an increase in the state minimum wage that became effective July 1, 2014. The new annual cost to provide janitorial and porter service at various City facilities increased approximately 4.3% or $11,869. All other conditions of the contract will remain in effect. Based on the excellent level of services provided by ABM during the past contract term, it is recommended that the City Council authorize and direct the City Manager to execute a one -year contract extension with ABM for janitorial and porter services at various City facilities in the amount of $288,252. DISCUSSION The Public Works Services Department is responsible for the maintenance of all City facilities and utilizes contract services to provide janitorial and porter services. Janitorial services include nightly cleaning of all common areas, restrooms, and offices at various City facilities. Daily porter services include cleaning and replacement of the light fixtures, helping office staff with routine services such as setting up for special events, and cleaning and stocking public restrooms. Janitorial and porter services are performed at City Hall, Community Center, Museum, Library, Public Works Services, Extension to Janitorial & Porter Services Contract August 5, 2014 Page 2 of 2 Police Department, Fire Station 105, Civic Center Soccer Field, Dana Gym, and restrooms at Bonita and Eisenhower parks. Additionally, the City requested that janitorial services now be performed at the newly constructed Museum Education Center. This will increase the annual contract by $3,577. This amount is reflected in the adopted budget for the Museum Education Center. The proposed 3% contract increase in the amount of $8,292 will offset costs incurred due to a recent increase in the State's minimum wage. Effective July 1, 2014, the California minimum wage increased from $8.50 /hr. to $9.00 /hr. An analysis of the proposed contract increase indicates that the amount will be minimal and the impact to Departments' budgets will be reviewed during the mid -year budget review. ABM has also asked that the City take into consideration those costs that may be incurred as a result of the pending implementation of the Affordable Health Care Act ( "AHCA "). This will be evaluated in early 2015, once more is known about the AHCA's specific financial impacts, if any, to ABM's personnel operations. Any needed amendments would be presented to the City Council for review and approval prior to implementation. Based on the excellent level of janitorial and porter services provided by ABM, it is recommended that the City Council authorize and direct the City Manager to execute a one -year contract extension with ABM Services, Inc. for janitorial and porter services at various City facilities in the amount of $288,252. A copy of the proposed Contract is attached. FISCAL IMPACT Sufficient funds are budgeted in each Department's Contract Services accounts for janitorial and porter services in the Fiscal Year 2014 -15 Operating Budget. RECOMMENDATIONS It is recommended that the City Council authorize and direct the City Manager to execute a one -year contract extension with ABM Services, Inc. for janitorial and porter services at various City facilities in the amount of $288,252. Approved Dominic Lazzareit6 City Manager Attachment: Proposed Contract Amendment j AMENDMENT NO. 1 TO THE JANITORIAL & t PORTER SERVICES AT VARIOUS CITY FACILITIES CONTRACT BY AND BETWEEN THE CITY OF ARCADIA s AND ABM SERVICES, INC. DBA ABM JANITORIAL SERVICES This Amendment No. 1 ( "Amendment No. 1 ") is hereby entered into this day of , 2014 by and between the City of Arcadia, a municipal corporation of the State of California, and ABM Services, Inc. dba ABM Janitorial Services, a Delaware Corporation, with respect to that certain Contract between the Parties dated August 6, 2013 ( "Contract "). The parties agree as follows: Section 3.2.2 of the Contract is hereby amended by extending the term from August 6, 2014 to August 6, 2015 ( "Extended Term "). 2. Section 3.4.1 of the Contract is hereby amended to provide that the total compensation for the Extended Term shall not exceed Two Hundred Eighty -Eight Thousand, Two Hundred Fifty -Two Dollars and No Cents ($288,252). 3. All terms and provisions of the Contract not amended by this Amendment No. 1 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 1 on the date set forth below. CITY OF ARCADIA IN Dominic Lazzaretto City Manager Dated: ATTEST: City Clerk APPROVED AS TO FORM Stephen P. Deitsch City Attorney ABM SERVICES, INC. dba ABM JANITORIAL SERVICES By: Title: Dated: By: Title: Dated: CONCUR: Tom Tait Public Works Services Director