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May 16, 2023
ITEM TITLE
Contracted Janitorial Services: Approve the First Amendment with Nova Commercial to Increase the Maximum Contract Amount and Add Additional Facilities
Report Number: 23-0102
Location: City Facilities – including Police, Libraries, and Recreation Centers Department: Public Works
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving the first amendment to the agreement with Nova Commercial for janitorial services to increase the maximum not-to-exceed contract amount from $2,250,000 to $3,500,000 over the 5- year term of the agreement and add additional City facilities.
SUMMARY
In July 2022 the City entered into an agreement with Nova Commercial to provide jan itorial services at various City facilities. Staff now recommends that Council approve the first amendment to the agreement that will extend the first year of the term to include fiscal year 2024, increase the maximum not -to-exceed contract amount from $2,250,000 to $3,500,000 over the 5-year term of the agreement and add additional City facilities.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, P a g e | 2
pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to C EQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
On March 4, 2022, the City of Chula Vista issued a Request for Proposals (RFP), seeking a contractor to provide janitorial services at v arious City facilities. The RFP closed on March 25, 2022 and six proposals were received. An evaluation committee evaluated, scored, and ranked the responses based on the following criteria: experience, personnel, operations/qualifications, and cost. Nova Commercial ranked as the top vendor. The City entered into an agreement with Nova Commercial in July 2022. Key provisions of the original contract include, but are not limited to, the following:
Services – the contractor will provide janitorial services at designated City facilities. These services generally include cleaning, disinfecting, and/or sanitizing exterior and entry areas, offices, conference rooms, corridors, stairs, elevators, restrooms, lunchrooms and break rooms.
Facilities – The original contract included the following City facilities: Police Department, Libraries (Civic Center, South, and Otay Ranch), and Heritage Recreation Center and Veterans Recreation Center. Additional facilities could be included as funding permits upon mutual agreement with the vendor.
Term - The contract term was initially from July 1, 2022 to June 30, 2023. If Nova Commercial’s work performance is satisfactory, the parties may mutually agree in writing to extend the contract for four (4) additional one (1) year periods. The annual option year renewals would be effective from July 1 to June 30 - the City’s Fiscal Year. If the vendor’s work performance is not satisfactory, the City reserves the right to not renew the contract without penalty. If the parties agree to extend the contract for the option years, acceptable price increases may be agreed to and such increases would be based on changes in the annual San Diego Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), in an amount not to exceed 5%.
Nova Commercial’s work performance has been satisfactory; staff is proposing an amendment to the contract to add the following:
Extend the initial term to include fiscal year 2024 with three additional optional one-year extensions, this change does not extend the overall end date if all extensions are executed Add janitorial services as follows:
o Loma Recreation and Aquatic Center – the initial quote is only for the Recreation Center and will be amended to add the Aquatic Center when the facility is open to the public o Norman Park Senior Center
o Saturday services at various Recreation Centers
Increase the total value of the contract to $3. 5 million for the whole five years – including all extensions
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Contracted janitorial services allows the City to provide expanded coverage across various City facilities. The fiscal year 2023 Adopted Budget included the elimination of 3.0 vacant Custodian positions and the addition of an equivalent amount to Supplies and Services to fund the contract. The proposed fiscal year 2024 budget will include the elimination of 3.0 vacant Custodial positions and the addition of an equivalent budget increase in Supplies and Services to fund the increase in the contract amount due to the addition of facilities to the contract . Eliminated positions were/are all vacant positions – no current custodial staff will be adversely impacted by this change.
Adding contracted janitorial services gives the City greater flexibility in addressing janitorial needs across various City facilities. The long -term service delivery model would be to have a hybrid of City Custodians and contracted janitorial services to meet City needs in a cost -effective way that still meets City standards.
Additional City facilities may be added to the contract as vacancies occur and funding is available.
DECISION-MAKER CONFLICT
Staff has determined that the action contemplated by this item solely concerns the repairs, replacement, or maintenance of existin g streets, water, sewer, storm drainage or similar facilities, and any member’s property will not be affected disproportionately to other properties receiving the same services.
Consequently, pursuant to California Code of Regulations Title 2, sections 187 00 and 18702.2(d)(1)), this item does not present a real property -related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are sufficient savings in the Public Works-Custodial budget to offset the cost of adding the additional facilities in the current fiscal year. There is no net fiscal impact to the General Fund as a result of approving the proposed contract amendment.
ONGOING FISCAL IMPACT
The proposed term of the contract is for a total term of five years if all extensions are executed. If the parties agree to extend the contract for the option years, cost increases would be based on changes in the annual San Diego Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), in an amount not to exceed 5%.
The fiscal year proposed 2024 budget includes the elimination of three vacant Custodial positions with a corresponding reallocation to the Public Works Department Supplies and Services expense category budget.
ATTACHMENTS
1. Original Agreement between City of Chula Vista and Nova Commercial to Provide Janitorial Services
2. Proposed First Amendment to Nova Commercial Janitorial Services Agreement
Staff Contact: Angelica Aguilar, Assistant Director of Public Works