title
APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 2 WITH JANITEK CLEANING SOLUTIONS, INC. FOR CITY OF STOCKTON CUSTODIAL SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the City Manager to execute Contract Change Order No. 2 with JaniTek Cleaning Solutions, Inc., in the amount of $120,280, for the expanded scope of services and additional janitorial supplies for City of Stockton Custodial Services, Project No. OM-16-057.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
body
Summary
The City contracts for routine and special custodial services for 22 City facilities. On July 26, 2016, the City advertised a Request for Proposals (RFP) for custodial services. JaniTek Cleaning Solutions, Inc. (JaniTek) submitted the highest rated proposal with the second lowest price, thereby providing the optimal combination of quality and pricing. The contract for this project was awarded to JaniTek on January 24, 2017, by Motion No. 2017-01-24-1205. The contract award amount was $498,000 annually, with a contract expiration of June 30, 2020.
The initial change order authority, calculated using the annual contract price, was $114,800. Contract Change Order (CCO) No. 1, for additional services at various facilities in the amount of $81,832 annually, was approved under administrative authority. If approved, proposed CCO No. 2 will provide additional services for the Community Services Department consistent with the expanded operations resulting from Measure M, additional janitorial supplies for the Municipal Utility Department (MUD), and additional as-needed custodial services. The total cost CCO No. 2 is $120,280: $25,060 for the remainder of the current fiscal year, and $47,610 annually for two additional years. The revised total contract amount will be $627,442 annually, for a total of $1,970,408.67 over the 38 months contract term.
Staff recommends Council approve CCO No. 2, in the amount of $120,280, with JaniTek (Attachment A). The cost of CCO No. 2 for the remainder of the current fiscal year is $25,060. To fully fund this additional expense of CCO No. 2, $7,600 will be funded from the Fiscal Year (FY) 2017-18 Community Services Strong Communities operating budget (Fund 083), $4,460 from the Public Works Facilities operating fund (010-3095-540), and $13,000 from MUD Operations (498-4311-572.30-50).
DISCUSSION
Background
The City contracts for routine and special custodial services for 22 City facilities. On July 26, 2016, the City advertised a RFP for custodial services. JaniTek submitted the highest rated proposal with the second lowest price, thereby providing the optimal combination of quality and pricing. The contract for this project was awarded to JaniTek on January 24, 2017, by Motion No. 2017-01-24-1205. The contract award amount was $498,000 annually, with a contract expiration of June 30, 2020.
CCO No. 1 provided janitorial services and supplies for two new facilities, Market Street Garage Offices, and Fair Oaks Library; additional days of service for two Community Services’ facilities, Cesar Chavez Library, and Seifert Community Center; and additional carpet cleaning for MUD facilities. CCO No. 1 also captured breakrooms and restrooms that were omitted from the original scope of services at the Animal Services Center, Corporation Yard, and MUD.
CCO No. 1, in the amount of $81,832 annually, was approved under administrative authority.
Present Situation
On May 24, 2016, Council approved placing a one-quarter cent sales tax on the November 8, 2016, General Election ballot with Council approval by Resolution No. 2016-05-24-1602. The ballot, Measure M, provides for the restoration and expansion of library and recreation services. The FY 2017-18 budget provides for the expansion of library and community center hours of operation to six days per week. Community Services expects to implement increased operational hours in June 2018. This expansion of hours requires increased janitorial service.
JaniTek currently provides custodial services for seven Community Services facilities scheduled for expanded operational hours: Arnold Rue Community Center, Fair Oaks Library, Margaret Troke Library, Maya Angelou Library, Seifert Community Center, Stribley Community Center, and Van Buskirk Community Center. Proposed CCO No. 2 provides for increased custodial services and janitorial supplies at these facilities in the respective amounts of $6,675, and $925 for FY 2017-18. Annual costs for FY 2018-19 and 2019-20, the two remaining years of the contract, will be $30,150.
Proposed CCO No. 2 will also provide for increased janitorial supplies for MUD facilities in the amount of $13,000 annually, and for increased urgent unscheduled custodial services in the amount of $4,460 annually. These items were underestimated in the original contract and are insufficient.
Approval of proposed CCO No. 2, in the amount of $120,280, will bring the total contract amount to $627,442 annually, for a total of $1,970,408.67 over the three-year plus contract term. Staff recommends Council approve CCO No. 2, in the amount of $120,280, with JaniTek (Attachment A).
FINANCIAL SUMMARY
Staff recommends the execution of CCO No. 2 to the JaniTek contract. The additional costs for FY 2017-18 are fully funded with existing operating budgets and the additional annual costs will be allocated during the annual budget process as indicated in Attachment B. The total increase for the remainder of the current FY is $25,060 and is being funded from current operating accounts as follows:
Community Services 083-3625-590.20-25 $ 1,293 Arnold Rue
Community Services 083-3625-590.30-50 $ 150 Arnold Rue
Community Services 083-3557-580.20-25 $ 540 Fair Oaks Library
Community Services 083-3557-580.30-50 $ 125 Fair Oaks Library
Community Services 083-3553-580.20-25 $ 723 Margaret Troke Library
Community Services 083-3553-580.30-50 $ 175 Margaret Troke Library
Community Services 083-3554-580.20-25 $ 609 Maya Angelou Library
Community Services 083-3554-580.30-50 $ 75 Maya Angelou Library
Community Services 083-3626-590.20-25 $ 798 Seifert Comm. Center
Community Services 083-3626-590.30-50 $ 150 Seifert Comm. Center
Community Services 083-3627-590.20-25 $ 1,677 Stribley Comm. Center
Community Services 083-3627-590.30-50 $ 150 Stribley Comm. Center
Community Services 083-3628-590.20-25 $ 1,035 Van Buskirk Comm. Ctr.
Community Services 083-3628-590.30-50 $ 100 Van Buskirk Comm. Ctr.
MUD Operations 498-4311-572.30-50 $13,000 MUD Administration
Public Works Facilities 010-3095-540.20-25 $ 4,460 Urgent Services
TOTAL FY 2017-18 $25,060
Original Three-Year Plus Term CCO No. 2 Annual Not-to-Exceed
May 1, 2017 - June 30, 2017 N/A
July 1, 2017 - June 30, 2018 $25,060
July 1, 2018 - June 30, 2019 $47,610
July 1, 2019 - June 30, 2020 $47,610
Original Term CCO No. 2 Sub-Total $120,280
Optional Two One-Year Extensions CCO No. 2 Annual Not-to-Exceed
July 1, 2020 - June 30, 2021 $47,610
July 1, 2021 - June 30, 2022 $47,610
Contract Extensions CCO No. 2 Sub-Total $95,220
CONTRACT WITH EXTENSIONS CCO NO. 2 TOTAL $215,500
There is a small impact to the City’s General Fund and Strong Communities fund as a result of taking the recommended actions.
Attachment A - CCO No. 2 with JaniTek
Attachment B - List of Operating Budgets and Additional Annuals Costs