CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 4 Section Name: {{section.name}} Account Number: 10-4651 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: January 16, 2024
SUBJECT:
Uniform Laundry Services – Amendment
RECOMMENDATION:
Approve Amendment No. 1 to the City's current agreement with Cintas, Inc. for uniform maintenance services through Fiscal Year 2025-26; increase the total contract amount by $330,000, and establish a contingency reserve of $25,000; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue change orders within the contingency amount.
BACKGROUND:
The City has a contract with Cintas, Inc. (Cintas) for uniform laundry services. These services have been provided annually by Cintas since Fiscal Year 2011-12. Originally in 2011, the Wastewater Treatment Plant conducted a Request for Quote (RFQ) for this service, soliciting quotes from three vendors. Cintas was awarded a four-year agreement by City Council on November 18, 2012 based on the RFQ outcome. When the agreement expired in 2016, the City then utilized an alternative purchasing procedure with an existing agreement between Prince William County Public Schools and Cintas Inc. through OMNIA Partners, a cooperative purchasing organization, to provide uniform laundry services for the Public Works and Parks & Recreation Departments. The new agreement had a five-year term with Cintas and was renewed by the Finance Department in 2021 for a three-year term, which expires on February 1, 2024. On October 31, 2023, the purchasing agreement between Prince William County Public Schools and Cintas Inc. via OMNIA Partners was renewed through October 31, 2027. To remain consistent with past multi-year service agreements with Cintas, and to take advantage of the competitive pricing already established by the OMNIA Partners rates, a new multi-year agreement is recommended through June 30, 2026. Public Works staff will conduct a new Request for Proposal (RFP) for these services in Fiscal Year 2025-26.
In the past three fiscal years, expenses under the Cintas contract have averaged approximately $115,000 annually. The required funding in future fiscal years will be significantly greater, as this agreement has an annual Consumer Price Index (CPI) increase component, which increased by 7.7% over the previous year’s rates on May 1, 2023. In addition to the annual CPI increases, staffing levels in the Wastewater Treatment Plant and Field Maintenance Divisions utilizing these services have continued to increase, filling previously vacant positions requiring this service, including hiring 5 full-time employees each in the next few months.
Based on service costs, recent escalation in rates, and use trends under the current contract term to date, annual expenses are estimated to be $150,000. With the proposed Amendment No. 1 to extend the contract through Fiscal Year 2025-26, additional funding needs are estimated to be $330,000, which includes $30,000 additional funding needed for the remainder of Fiscal Year 2023-24 and $150,000 each year for Fiscal Years 2024-25 and 2025-26. A contingency reserve of $25,000 is requested to accommodate potential fluctuations in rates and/or use of services.
CITY OF SAN MATEO
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City staff is satisfied with the overall services provided throughout the past twelve years by Cintas. Based on the above, staff recommends approval for Amendment No. 1 to the City’s current agreement with Cintas increasing the contract total by $330,000 with a contingency reserve of $25,000, through FY 2025-26.
BUDGET IMPACT:
Funding for uniform laundry service costs is included in the Public Works and Parks & Recreation Departments’ operating budgets as services are incurred, as such, no additional budget appropriations are needed this fiscal year. Any additional funding needs in subsequent fiscal years will be addressed as part of the budget development process.
ENVIRONMENTAL DETERMINATION:
This Amendment is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Addendum
Att 2 – Master Agreement
STAFF CONTACT
Ryan Lukehart, Management Analyst I
[email protected]
6505227330
Jamie Perez, Senior Management Analyst
[email protected]
6505227242