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HomeMy WebLinkAbout09/20/1994, C-9 - UNIFORM, LINEN, AND LAUNDRY SERVICES MEETATE: '111111141111 city of San tui S OBISPO Npe iZ COUNCIL AGENDA REPORT t,M -9 FROM: Michael D. McCluskey, Public Wor s Director PREPARED BY: David Elliott, Administrative Analyst 2' SUBJECT: Uniform, Linen, and Laundry Services CAO RECOMMENDATIONS: 1) Approve the "Invitation for Bids to Furnish Uniform, Linen, and Laundry Services, Specification No. 95-17" 2) Authorize the CAO to award the agreement if the lowest responsible, responsive bid is below the contract cost estimate of$115,000 ($42,400 per year over 2-1/2 years plus $9,000 in one-time costs for jackets and City emblems) and if additional appro- priations are not needed to pay for the work in 1994/95 DISCUSSION: The City contracts with an industrial laundry service to furnish and launder uniforms, towels, dustmops, and walkoff mats for various City programs, mostly in public works and utilities departments. Since the current agreement expired on June 30, 1994, the previous contractor has been working on month-to-month terms with the City until a new agreement takes effect. Specification No. 95-17 calls for a 2-1/2 year agreement to run from January 1, 1995 to June 30, 1997. This term will align the agreement with the City's two-year financial plan period and should allow accurate budgeting for these services. If service is satisfactory, the City may extend the term through June 30, 1999. Any compensation adjustment required throughout the agreement term will be based on percentage increases in the consumer price index. FISCAL EVIPACT: The contract cost estimate is $115,000 over the initial 2-1/2 year term of the agreement. This estimate includes $42,400 per year of ongoing costs plus $9,000 of one-time costs to buy new jackets as needed and a stock of City of San Luis Obispo emblems for shirt and jacket sleeves. The total current budget available for this work in the 15 affected programs is $33,300 per year, and contract payments in 1993/94 amounted to $37,252. Consequently, some relatively minor increases in budget amounts may be required in the programs affected, depending on accepted bid prices for ongoing and one-time costs. Any increases required in the current fiscal year can probably be covered with existing resources, but if additional appropriations are needed, staff will return to the Council for award of the agreement. Increases needed for the remaining two fiscal years of the agreement term will have to be addressed in the 1995/97 Financial Plan. The existing unit prices have been in effect since 1991. The contract cost estimate is based on the 1991 unit prices plus ten percent to account for inflation. Bid documents are available for review in the council office. G:1MMAUNnm1 C-9-