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APPROVE FINDINGS AND AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT WITH CINTAS CORPORATION THROUGH OMNIA PARTNERS TO OBTAIN CITYWIDE UNIFORM RENTAL AND LAUNDRY SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize a two-year purchase agreement with Cintas Corporation to provide uniform rental, laundry, and supply services through a cooperative contract awarded by OMNIA partners, in an amount not-to-exceed $1,300,000 (Exhibit 1 to the Resolution).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
The City provides uniform services to authorized staff under the terms of its various bargaining agreements. Some departments also require floormat and first aid supply services, which are provided through the same contract. The City is currently contracted with Cintas Corporation (Cintas) through June 2027 for these services. To ensure regular service at a reasonable cost, staff reviewed available cooperative agreements and recommended OMNIA Partners’ agreement with the Cintas Corporation of Cincinnati, OH, to best meet the City’s needs.
It is recommended that the City Council approve a resolution authorizing a two-year Cooperative Purchase Agreement with Cintas in an amount not-to-exceed $1,300,000, with an option for one additional five-year extension.
DISCUSSION
Background
Uniforms and floormats are rented and laundered weekly for City Departments including the Municipal Utilities (MUD), Public Works (PW), and Police (PD). These services are necessary to meet adopted provisions outlined by applicable collective bargaining agreements.
On September 12, 2023, by Resolution 2023-09-12-1206, the City Council approved a four-year cooperative purchasing agreement with Cintas for these services.
To secure services aligned with the City’s needs, MUD and Administrative Services Department (ASD) staff evaluated the offerings and capabilities available through the OMNIA Partners National Cooperative Agreement (001299) with Cintas Corporation and confirmed that they satisfy the inventory and material requirements outlined in the City’s collective bargaining agreements.
The OMNIA Partners is a group purchasing organization that provides public agencies
strategic procurement resources through nationally available and competitively bid contracts. The proposed contract would replace the current Cintas contract for these services.
Staff recommend that the City Council authorize a contract with the Cintas Corporation for uniform rental and laundry service to give the MUD, PW, and PD the ability to provide uniform rentals, floormats, first aid kits and laundering services in accordance with City’s adopted collective bargaining agreements.
Present Situation
A recognized best practice for public agencies is to utilize cooperative agreements that leverage the combined purchasing power of many entities. Cooperative agreements are established through a formal competitive bidding process that meets City requirements and thus fulfills the City’s procedural requirements for full and open marketplace competition.
The City maintains a contract with Cintas for rental and laundry services for citywide uniforms and floormats.
On November 3, 2022, OMNIA Partners solicited nationwide bids for workplace solution products and awarded the Cintas Corporation Workplace Solutions Agreement (001299) for an initial five-year term, and one optional five-year extension which will expire on May 31, 2033.
The estimated not-to-exceed total cost for the two-year term is $1,300,000 based on current and projected staffing levels and historical expenditures. The proposed new contract is expected to save some City departments an estimated $20,000 annually.
Staff recommend that the City Council authorize a two-year contract with the Cintas Corporation for a not-to-exceed amount of $1,300,000 for uniform and facility materials and services.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding requirements when the City Council approves findings that support and justify the purchase through a cooperative purchasing agreement.
Proposed findings to support this purchase are:
1. Contract 001299 with Cintas Corporation was established through a formal competitive solicitation process through OMNIA Partners.
2. Cintas Corporation Contract 001299 for Workplace Solutions scope and criteria meets the City’s needs.
3. Use of existing procurement agreements fosters efficient use of public funds and helps streamline local government procurement practices.
FINANCIAL SUMMARY
The estimated not-to-exceed amount is based on current staffing levels and historical expenditures. The estimated total cost of $1,300,000 is based on the historical actual costs, which may vary depending on departmental staffing level changes and/or actual repair or replacement costs. The not-to-exceed total includes the contractual limit of 2.8% annual escalation per year.
|
Department |
Estimated FY2027-28 Cost |
Estimated FY2028-29 Cost |
Total 2-year Not to Exceed Amount |
|
Municipal Utilities |
$ 450,000 |
$463,500 |
$913,500 |
|
Public Works |
$184,000 |
$189,000 |
$373,000 |
|
Police |
$6,000 |
$7,500 |
$13,500 |
|
TOTAL |
$640,000 |
$660,000 |
$1,300,000 |
Sufficient funds are available in the various departmental uniform provision accounts to cover the cost of this cooperative purchasing agreement.