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HomeMy WebLinkAboutItem 2l - Contract Extension for Janitorial and Porter ServicesDATE: July 7, 2015 TO: Honorable Mayor and City Council STAFF REPORT Public Works Services Department FROM: Tom Tait, Public Works Services Director By: Jacquelyn Mercado, Management Analyst SUBJECT: EXTENSION TO THE CONTRACT WITH ABM SERVICES, INC. FOR JANITORIAL AND PORTER SERVICES AT VARIOUS CITY FACILITIES IN AN AMOUNT NOT TO EXCEED $305,547 Recommendation: Approve SUMMARY On April 7, 2015, the City Council approved a one year contract extension with ABM Services, Inc. ( "ABM ") in the amount of $288,252, to perform janitorial and porter services at various City facilities. ABM has reached the end of their first contract extension and has submitted a written offer to extend the contract for an additional year. The contractor's offer reflects a 6% contract price increase of $17,295 to offset an increase in employee health and welfare costs due to the implementation the Affordable Health Care Act ( "AHCA ") and new paid sick leave requirements per Assembly Bill 1522 ( "AB 1522 "). 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 $305,547. DISCUSSION The Public Works Services Department ( "PWSD ") 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 the City Hall, Community Center, Museum, Museum Education Center, Library, Public Works Services, Police Department, Fire Station 105, Civic Center Soccer Field, Dana Gym, and restrooms at Bonita and Eisenhower parks. Extension to Janitorial & Porter Services Contract July 7, 2015 Page 2 of 2 During ABM's first contract extension, they asked that the City take into consideration future costs that may be incurred as a result of the implementation of the AHCA. In early 2015, the City met with ABM to discuss the specific financial impacts to ABM from AHCA, AB 1522, and recent minimum wage increases. Effective July 1, 2015, AB 1522 requires ABM to provide paid sick leave to part -time and temporary employees who work more than 30 hours. City staff negotiated ABM's original increase request of 17% for the Janitorial and Porter Services Contract down to 6 %. With the intent of maintaining high levels of services at an affordable cost to the City, PWSD is proposing to extend the current Janitorial and Porter Services Contract with a 6% increase to offset an increase in employee health and welfare costs. In return, ABM has agreed to absorb all additional costs incurred by the minimum wage increase. Furthermore, staff reached out to local area cities to compare current contract pricing for janitorial and porter services and found that, even with the 6% increase, the City will still be paying less than other cities for these services. Based on the excellent level of 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 $305,547. A copy of the proposed Contract Amendment is attached. FISCAL IMPACT Funding for janitorial and porter services is budgeted in each Department's contract services Operating Budget for Fiscal Year 2015 -16. While they do not currently anticipate the 6% increase, they do contain room for small contingencies. At the mid- year budget review, PWSD will review each Department's contract services account to determine if there is sufficient funding for the increase in janitorial and porter services. RECOMMENDATIONS 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 $305,547. Approved: Dominic La77ar t City Manager Attachment: Draft Contract Extension AMENDMENT NO. 3 TO THE JANITORIAL & o.o.,.e PORTER SERVICES AT VARIOUS CITY FACILITIES auauso s,'wna 5 CONTRACT BY AND BETWEEN THE CITY OF ARCADIA ABM SERVICES, INC. dba ABM NSITE SERVICES — WEST, INC. This Amendment No. 3 ( "Amendment No. 3 ") is hereby entered into this day of , 2015 by and between the City of Arcadia, a municipal corporation of the State of California, ABM Services, Inc. dba ABM Onsite Services - West, Inc., a Delaware Corporation, with respect to that certain Contract between the Parties dated August 6, 2013, as amended by Amendment No. 1 dated October 22, 2014, and further amended by Amendment No. 2 dated December 10, 2014 ( "Contract "). The parties agree as follows: 1. Section 3.2.2 of the Contract is amended by extending the term from August 6, 2015 to August 6, 2016 ( "Extended Term "). 2. Section 3.4.1 of the Contract is amended to provide that the total compensation for the extended term shall not exceed Three Hundred Five Thousand, Five Hundred Forty -Seven Dollars and No Cents, ($305,547). This includes a 6% contract price increase of $17,295 to offset an increase in employee health and welfare costs due to the implementation the Affordable Health Care Act and new paid sick leave requirements per Assembly Bill 1522. 3. All terms and provisions of the Contract not amended by this Amendment No. 3 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 3 on the date set forth below. CITY OF ARCADIA By: Dated: (SEAL) Dominic Lazzaretto City Manager ATTEST: City Clerk APPROVED AS TO FORM Stephen P. Deitsch City Attorney ABM SERVICES, INC. dba ABM ONSITE SERVICES -WEST, INC. By: Title: Dated: By: Title: Dated: CONCUR: Tom Tait Public Works Services Director