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Home My WebLink About11/01/2005, C5 - PARK RESTROOMS, PARKING LOTS AND PARKING STRUCTURE JANITORIAL MAINTENANCE SERVICES SPEC. NO. 90531 council "' November 1,2005 j ac en ba RepoRt c s CITY OF SAN L U I S O B I S P O FROM: Jay D.Walter, Public Works Director Prepared By: Lawrence S. Tolson SUBJECT: PARK RESTROOMS, PARKING LOTS AND PARKING STRUCTURE JANITORIAL MAINTENANCE SERVICES SPEC. NO. 90531 CAO RECOMMENDATION 1. Award and execute a contract with Service Master CBM for$75,444.00 for park restroom janitorial services. 2. Appropriate $15,244 from the Unreserved General Fund Balance to the Landscape and Park Maintenance Program. DISCUSSION On August 16, 2005 the Council approved 1) a request for proposals (RFP) to furnish janitorial service for park restrooms, parking lots .and parking•structures; 2) authorized advertisement of the RFP; and 3) authorized the.City Administrative Officer to award contracts, if annual contract prices were within the budget of $216,415 for the parking lots and structures, and $60,200 for park restrooms. The results of the parking lot and parking structure category proposals were within budget and are in the process of being awarded via CAO Report. After reviewing the proposals, the park restroom category contract price is above the budgeted amount and Council approval is required to augment the budget and award this contract. On September 15, 2005 three proposals were received- Service Master CBM, SP Maintenance Services Inc. and Pacific Coast Building Maintenance. To evaluate proposals Public Works convened a review committee of five city employees representing the Parks and Recreation, Parking Services, Park Maintenance and Public Works Administration divisions. After interviewing all proposing firms and checking their references, the review committee scored the firms on reliability, responsibility, quality and suitability, based on a scale from zero to four, with zero being unsatisfactory. Averaging the scores led to the following ranking: 1) Service Master CBM 3.76 2) SP Maintenance Services Inc. 3.55 3) Pacific Coast Building Maintenance 3.16 As allowed_in the RFP; Service Master CBM submitted a proposal for only the Park Restrooms. Their negotiated price of $75,444 was lower than the other 2 proposals. Service Master has an excellent work history with the City and currently holds other.janitorial service contracts. The firm indicated during negotiations that the increase and instability of fuel and insurance costs resulted in higher proposals. C5-/ Park Restrooms, Parking Lots and Parking Structure Janitorial Maintenance Page 2 There was sufficient funding in the Parks operating program budget to extend the previous contract at the current pricing, however in July SP Maintenance declined a 2 year contract extension. In August staff notified the Council of the possibility that new bidding for park restroom maintenance may result in significantly higher costs than the current contract. FISCAL IMPACT The approved budget amount for Park Restrooms cleaning is $60,200. In order to award the contract to Service Master CBM for$75,444.00, staff requests an appropriation in the amount of $15,244 from the Unreserved General Fund Balance be transferred to the Landscape and Park Maintenance Program_ , contract services budget. Staff.will request full contract term funding as part of the 2006-07 mid-year budget review process. ALTERNATIVES Lower the contract cost by reducing Service levels. The first option would lower contract costs by $3,408.00. This option would close all public restrooms 2 days per week with the exception of the Mission Plaza, leaving the Mission Plaza restrooms open 7 days per week. A second option would lower contract cost by $9,228.00 with the complete closing of the Parking Lot #2, Broad Street restrooms and the above 2 day per week reduction. The results of these reductions would leave public facilities unavailable to the public. With any additional closure of public facilities, staff would expect additional vandalism to occur at those closed facilities. ATTACHMENTS 1. Contract C5 -2 AGREEMENT ATTACHMENT TIES AGREEMENT is made and entered into in the City of San Luis Obispo on this day of _ by and between the CITY OF SAN LUIS OBISPO, a municipal corporation,hereinafter referred to as the City,and SERVICE MASTER CBM, hereinafter referred to as the Contractor. WITNESSETH: WHEREAS,on August 16,2005;the City requested proposals to furnish Janitorial Maintenance Services;per Specification No. 90531;and WHEREAS;pursuant to said request,the Contractor submitted a proposal that was accepted by the City for said Janitorial Maintenance Services; NOW THEREFORE, in consideration of their mutual promises,obligations,and covenants hereinafter contained,the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from November 1,2005 to June 30,2009. 2. INCORPORATION BY REFERENCE. City Specification No. 90531 and the Contractor's proposal dated September 15,2005, are hereby incorporated in and made a part of this Agreement. 3. THE CITY'S OBLIGATIONS. For providing Janitorial Maintenance Services as specified in this Agreement,City will pay and.Contractor"shall receive annual compensation in a total sum not to exceed$7-5,444.00. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City,Contractor agrees with City to do everything required by this Agreement and the said specification. 5. AMENDMENTS. Any amendment,modification,or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Administrative Officer of the City. 6. COMPLETE AGREEMENT. This written Agreement,including all writings specifically incorporated herein by reference,shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically 1 C5 �3 incorporated herein shall be ny force or effect, nor shall any such ora' 'eement, understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be:sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Finance Department City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor SERVICE MASTER CBM Jeff Hobson 793-A Foothill Rd. San Luis Obispo,CA 93401 8. AUTHORITY TO EXECUTE AGREEMENT. Both the City and the Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party. IN WITNESS WHEREOF,the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO - By- City Clerk Mayor APPROVED AS TO FORM: CONTRACTOR By: CiNAUeilky SERVICE MASTER CBM Jeff Hobson 2 CS -'� RECEIVED a council memomnbu NN 012005 510 C TrC ERK November 1, 2005 FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance &Information Technology SUBJECT: ENDING FUND BALANCE FOR 2005-07 Consent Item G-5 on the November 1, 2005 Council agenda recommends funding increased park restroom maintenance services($15,200) through an appropriation from the unreserved General Fund balance. Council Member Mulholland asked how this recommendation affects the projected ending fund balance for 2005-07. As the Council will recall, taking reserves down to 15% of operating expenditures at the end of 2005-07 was one of the key budget-balancing strategies in the 2005-07 Financial Plan. However, as noted in the interim year-end financial report for 2004-05 issued on August 31, 2005, we will begin 2005-06 in a stronger position than projected. This was largely due to the efforts-of the operating departments to hold the line costs in 2004-05, resulting in expenditure savings that were below estimates by$1.9 million. Accordingly, based on actual results for 2004-05, the revised ending fund balance for 2005-07 is 20.5% of operating expenditures, which is right at policy levels. In general, we would prefer not to recommend the use of reserves in funding maintenance costs. like these. However, the contract costs already reflect reduced service levels for an essential City service, and are based on the results of a competitive process. Fortunately, our improved financial condition based on actual results for 2004-05 means that we can fund these higher maintenance costs and still retain the General Fund balance at policy levels. Please call Bill Statler at extension 125 if you have any questions concerning this matter or require additional information, ® COUNCIL cq-L) DIR RED FILE ® CAO Z FIN DIR J6 ACAO E FIRE CHIEF MEETING AGENDA! ® ATTORNEY Z PW DIR DATE-4(46 : SITEM - C � ® CLERK/ORIG 2TM POLICE CHF 11 DEPT'HEADS C REC DIR lift 'eB 2 UTIL DIR MR Din