City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: June 18, 2024
Report #:2311-2225
TITLE
Approval of General Services Contract Number C25188309 with Cintas Corporation in the Amount of $2,124,293 to Provide for Rental and Laundering of Work Uniforms and Miscellaneous Items for a Period of Five Years; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or designee to execute Contract Number C25188309 with Cintas Corporation, utilizing the Omnia Cooperative Agreement for the rental and laundering of uniforms and other miscellaneous items for the Community Services, Public Works and Utilities Departments for a total not-to-exceed the amount of $1,770,244 over a 5-year term; and
2.Authorize the City Manager or their designee to negotiate and execute an Amendment for Additional Services in the amount of Twenty Percent (20%) through the term of the 5- year-contract, the total value not-to-exceed $354,049. The 20% for additional services is recommended to allow for additional uniforms for incoming staff and for replacements of worn-out uniforms.
BACKGROUND
The Public Works, Utilities and Community Services Departments require all field staff to wear City issued uniforms, coveralls or shop coats per the labor agreement. Uniforms provide City identification of workers in the field and provide safety to field personnel and other personnel where specialized clothing is required such as lab technicians, utilities installers, and line person/cable splicers. These services include the rental and laundering of work uniforms and other laundered items such as heavy traffic floor mats, bath towels and cleaning towels. The heavy traffic floor mats are used at the entry and exit of doors where there is high traffic such as the Water Quality Control Plant. The bath towels are used when staff use City facility showers where required by job demands such as at the Water Quality Control Plant. The shop towels are used to clean equipment and used by staff such as mechanics. Uniforms are for field operations
staff, parks maintenance, mechanics, meter readers and facilities staff. The full list of 103 position classifications required to be provided a uniform is listed in the Memorandum of Agreement 1.
There are 239 staff members in the City that are currently wearing uniforms through this agreement.
ANALYSIS
The Community Services, Public Works and Utilities Departments rent and have laundered their uniforms and other miscellaneous items such as mats and towels. Pricing for services provided by Cintas has been under a Cooperative Pricing Agreement2 with Omnia Partners. Each individual department issues blanket purchase orders for a not-to-exceed amount per their needs at the beginning of every fiscal year. These blanket purchases are effective July 1 through June 30 of every Fiscal Year, which cost $323,722 in FY 2024. This new agreement will place all department orders under the same master contract rather than separate blanket purchase orders at a cost of $354,048 per year on average, after CPI adjustments to pricing. The cost in FY 2025 is increasing by 3% over FY 2024 for an amount of $333,433. The average cost per uniformed staff is approximately $1,400 per year under the new agreement. Establishing a master agreement will consolidate separate blanket purchase orders for each department each year, which improves administrative efficiency and enhances contract management. In addition, the term of the master agreement with Cintas ensures competitive pricing for five years.
Solicitation Process:
Staff across these departments spent significant preparatory time evaluating uniform needs, mending and return services quality, and the quality and reliability of the goods. After this evaluation, staff ensured a review of price comparison to ensure value for the goods and services, and as a result staff recommends continuing service with Cintas.
Pursuant to the Palo Alto Municipal code 2.30.360(j), the City may take advantage of cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. Purchasing cooperative organizations such as Omnia Partners (the City is a member of this co-operative) offer competitively priced contracts for goods and services, streamlines the time associated with completing a request for proposals process, and assures competitive pricing. The Cintas Corporation contract is part of the Omnia partners cooperative purchasing bid. The City will receive the national discounted rates for uniforms and miscellaneous items based on the bid awarded to Cintas Corporation through the Omnia Partners competitive bid process. Omnia 1 Memorandum of Agreement for SEIU, 2023(see page 29 of 79) https://www.cityofpaloalto.org/files/assets/public/v/1/human-resources/labor-relations/seiu/seiu_521_moa_23-
24.pdf
2 Cooperative Omnia Cintas Agreement
https://www.omniapartners.com/suppliers/cintas/public-sector/contract-documents#c3241 Contract No. R-BB-1 9002 3. Staff reviewed each line item with the vendor and confirmed with each division contact the desired type, style, and sizes were in alignment with the needs of their services and staff requirements. Staff intends to survey the market for uniform services quality and price prior to the end of this term.
The discounted rates as shown in Attachment A cover the range of uniforms and the miscellaneous items used at the City. For each piece of uniform item listed there is a rate applied to the quantity. This rate is used to calculate the weekly fee for all uniforms. The other miscellaneous items are rented on a weekly or bi-weekly frequency.
This contract does not cover uniforms for public safety personnel and City Park Rangers, which are covered under the Summit Uniforms, LLC contract no. C24188120 as approved by Council Staff Report No. 2401-25454.
FISCAL/RESOURCE IMPACT
The not-to-exceed cost of this contract is $1,770,244 through the five-year term. The cost will be split across three departments: Community Services, Public Works, and Utilities. The department allocations are as follows: Community Services Department $46,481; Utilities $1,071,672; Public Works $652,091 and funding is allocated based on where the positions using the uniforms are budgeted. The Additional Services of $354,049 will be funded by the departments as needed.
Funding is available in the FY 2025 Proposed Budget for this contract pending Council approval scheduled for June 17, 2024. Future year funding is subject to the annual budget process and adoption by Council.
STAKEHOLDER ENGAGEMENT
Purchasing has coordinated with key staff from departments whose operations will be dependent on the services. Departments provided feedback that helped shape the service delivered.
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. 3 Omnia Contract No. R-BB-19002
https://www.omniapartners.com/suppliers/cintas/public-sector/contract-documents#c3241 4 Summit Uniforms, LLC for Public Safety Personnel Uniforms, Contract # C24188120; https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=4166&meetingTemplateType=2&comp iledMeetingDocumentId=9079
ATTACHMENTS
Attachment A: Omnia Rental Acceptance Agreement
Attachment B: Cintas Pricing Sheet
APPROVED BY:
Lauren Lai, Administrative Services Director