City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01342 7/26/2022 Consent Item 03.
Title: Supplemental Contract and Cooperative Contract: Integrated Pest Management Services from Terminix and Orkin
File ID: 2022-01342
Location: Citywide.
Recommendation: 1) Pass a Motion authorizing the City Manager or the City Manager’s designee to execute a contract supplement with Terminix International Company Limited Partnership (“Terminix”), increasing the not-to exceed amount of the contract from $250,000 to $300,000 for Integrated Pest Management (IPM) through the expiration of the contract; and 2) Approve the use of Sourcewell Cooperative Contract No. 042821-ORK with Orkin, LLC, (Orkin) as an alternative source for these services for a not-to-exceed amount of $50,000 through the expiration of the contract.
Contact: Gary O’Neill, Contract and Compliance Specialist, (916) 808-7432, [email protected], Dayana Reyes Zanaska, Procurement Manager, (916) 808-5524, [email protected]; Department of Finance Presenter: None.
Attachments:
1-Description/Analysis
2-Terminix Contract Supplement
3-Orkin Sourcewell Contract
Description/Analysis
Issue Detail: The City receives routine Integrated Pest Management services (IPM) at over 125 City buildings. The need for pest control services at these facilities has been more frequent than anticipated. Other buildings that do not receive routine service have also needed one-time extermination services. The not-to-exceed amount of the Terminix contract will be exceeded this summer if additional funding is not added to the contract.
City of Sacramento Page 1 of 2
File ID: 2022-01342 7/26/2022 Consent Item 03.
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code 3.56 regarding contracts for the purchase of nonprofessional services.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines Section 15060(c)(3)).
Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: Terminix has the current Citywide agreement for IPM. These services will continue. Adding Orkin as an alternative will give the City an optional provider when there is a high demand for this service.
Financial Considerations: Funding for these contracts is included in Fiscal Year 2022/23 operating budgets and/or capital improvement program budgets of the departments that require these services.
Funding for subsequent years is subject to Council approval.
Local Business Enterprise (LBE): Neither of the two firms qualify as an LBE.
Background: Bid No. B18061511003 was issued by the City on October 19, 2017. Applied Pest Management was the lowest responsible and responsive bidder. Contract No. C2018-0364 was awarded on February 27, 2018, by the Council through Motion No. 2018-0053. Terminix is the assigned successor company to Applied Pest Management. The contract expires on February 28, 2023; there are no options to extend the contract.
Solicitation No. RFP 042821 was issued by the Sourcewell cooperative agency on March 10, 2021.
Contract 042821-ORK was awarded to Orkin, LLC. The contract expires on June 18, 2025 but may be extended for an additional year upon written agreement of Orkin and Sourcewell. Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its participating entities including the City of Sacramento.
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Attachment 2 Terminix contract supplement
SUPPLEMENTAL AGREEMENT
5-9-05
Date: 6-23-2022Project Title: Integrated Pest Management services Project Number: 434091-1001-06001521 Supplemental Agreement No.: 2 The City of Sacramento ("City") andThe Terminix International Company Limited Partnership ("Contractor"), as parties to that certain Contract Services Agreement designated as Agreement Number C2018-0364, including any and all prior supplemental agreements modifying said agreement (said agreement and supplemental agreements are hereafter collectively referred to as the "Agreement"), hereby supplement and modify the Agreement as follows:
1. The scope of Services specified in the Agreement remains the same.
2. In consideration of the additional and increased need for pest control services, the compensation specified in the Agreement is increased by $50,000, so that the compensation due under the Agreement is amended as follows:
Agreement's original compensation amount: $250,000
Net change by previous supplemental agreements: $0
Compensation amount prior to this supplemental agreement: $250,000 Increase by this supplemental agreement: $50,000
New compensation amount including all supplemental agreements: $300,000
3. Contractor agrees that the amount of increase or decrease in the compensation amount specified in section 2, above, shall constitute full compensation for all services, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such services, including costs associated with any changes and/or delays in work schedules or in the performance of other services or work by Contractor.
4. Contractor warrants and represents that the person or persons executing this supplemental agreement on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental agreement and bind Contractor to the terms hereof.
5. Except as specifically revised herein, all terms and conditions of the Agreement shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Agreement, as supplemented and modified by this supplemental agreement.
(Signature page follows)
SUPPLEMENTAL AGREEMENT
5-9-05
Approval Recommended By: Approved As To Form By:
_____________________________
Project Manager City Attorney
Approved By:
Contractor
Approved By: Attested To By:
______________________________ ____________________________ City Clerk
Print name:________________________
Title:_____________________________
For: Howard Chan, City Manager
Attachment 3 Orkin Sourcewell contract
Orkin 042821-ORK
Pricing for contract #042821-ORK offers Sourcewell participating agencies the following discounts:
• 25% off Orkin’s commercial hourly rate.
• 33% discount on VitalClean service