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: 7 Section Name: {{section.name}} Account Number: 82-4681 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: July 28, 2025
SUBJECT:
Citywide Custodial Services – Agreement
RECOMMENDATION:
Adopt a Resolution approving an alternative purchasing procedure to award a three-year agreement to Impec Group, LLC for Citywide Custodial Services in the amount of $3,581,907.00, with two optional one-year extensions subject to future Council approval; establish an annual contingency in the amount of $110,000 per agreement year; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue amendments within the contingency amount.
BACKGROUND:
The City owns a variety of buildings, including City Hall, Recreation Centers, Libraries, Police and Fire Stations, Police Sub- Stations, Public Park Restrooms, and more. Each facility requires different levels of custodial maintenance, depending on its function and usage. The City requires a combination of after-hours custodial services, daily porter services, and specialized cleaning including, but not limited to, carpet cleaning and exterior window washing. Some facilities experience heavy public use while others provide part-time services to children. The City’s existing custodial services agreement expires on July 31, 2025.
In May 2025, the City issued a Request for Proposals (RFP) outlining specific criteria for performing custodial services for a three-year term with two (2) optional one-year extensions. The scope of services is increased in comparison with the existing contract, with additional facilities being added, such as the new Administration Building at the Wastewater Treatment Plant and multiple locations at the Golf Course that were previously addressed through separate contracts with the Parks and Recreation Department. The RFP also required compliance with California Labor Code Section 1060 et seq., also known as the Displaced Janitor Opportunity Act, to provide an opportunity for existing custodial staff to remain servicing City facilities. Staff reviewed and assessed each submitted proposal based on the following criteria: Organization and Experience, Key Personnel, Approach and Understanding, and Cost Proposal. These factors were then assessed and weighted according to the RFP guidelines. The results of the scoring were:
Company Avg Score
(200 Max) Ranking
Impec Group, LLC 171 1
Universal Building Services and Supply Co. 163.3 2
Talos Management, LLC 160.3 3
Karla’s Janitorial & Suppliers, LLC 156.6 4
Kleen-Tech Services, LLC 156 5
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Based on the results of the evaluation, in addition to checking references with other municipal agencies, staff identified Impec Group, LLC to be the recommended firm. The breakdown of Impec Group, LLC’s annual custodial services cost proposal is shown below:
Total Annual Base Cost $1,128,300.70
Performance Based Compensation (5.5%) $65,668.30
Total Annual Agreement Amount $1,193,969.00
The overall cost is approximately $250,000 more annually than the City’s existing contract, due in part to the increased scope of services described above. The RFP requested proposers to submit a Performance Based Compensation (PBC) amount, listed above, as part of their annual agreement amount. The PBC is intended to be a portion of the vendor’s acceptable profit margin and therefore an incentive to both meet and exceed performance standards. The criteria for evaluating the PBC will be based on the overall vendor performance and a set of Key Performance Indicators (KPIs) established by the City. Examples of KPI types are performance standards, vendor cost savings/control, innovation, customer focus, etc. The PBC will be reviewed quarterly between staff and the vendor and up to 25 percent of annual PBC may be paid upon quarterly review. In the event of subpar performance, guidance will be provided by staff to assist the vendor toward improvement upon identified areas.
The initial agreement period will be in place for three years with an option to extend the agreement for up to two (2) additional one-year periods, bringing the total potential agreement term to a maximum of five (5) years.
The annual agreement amount, with the base cost and performance-based compensation allowance, is $1,193,969.00. For the proposed three-year term, the total agreement amount is 3,581,907.00. The two additional one-year periods may only be granted through an amendment to the agreement, which will require Council approval.
To address any market fluctuations and any unknown additional expenses, staff also recommends establishing an annual contingency in the amount of $110,000 renewing each agreement year and to be utilized within the agreement term for which it is reserved. If the service provider's initial three-year term performance warrants staff to recommend pursuing any of the optional term extensions, staff will return to Council to request an amendment for the term extension and associated increase in compensation.
San Mateo Municipal Code Section 3.60.030 generally requires competitive bidding for agreements of $100,000 or more.
San Mateo Municipal Code Section 3.60.070(h)(3) authorizes the City Council to approve an alternative purchasing procedure when it finds doing so is in the best interest of the City. In this case, utilizing the RFP process is more beneficial to the City because the City is not required to accept the lowest bid, but rather may evaluate other factors in addition to price such as Organization and Experience, Key Personnel, and Approach and Understanding. In addition, an RFP allows the City to consider proposals where the purpose and/or performance is known but for which no unique specification exists.
This process is in the best interest of the City as proposals are considered upon ability along with cost savings to the City.
Staff recommends awarding the Citywide Custodial Services agreement to Impec Group, LLC to ensure a service provider is in place for the upcoming Fiscal Year 2025-26, and as the proposal received scoring highest based on the established rating criteria.
BUDGET IMPACT:
Funding for Citywide custodial services is budgeted annually through the operating budgets of the Fleet and Building Maintenance Fund and the departments receiving these services for the City facilities each department manages.
Imperial Maintenance Services, Inc. 140 6
CCS Facility Services 136.6 7
Central Maintenance Company 133.3 8
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Sufficient funding in the Fiscal Year 2025-26 budget, is available to cover the cost of this agreement.
ENVIRONMENTAL DETERMINATION:
This project is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Agreement
STAFF CONTACT
Derek Bahamondes, Facilities Maintenance Supervisor
[email protected]
(650) 522-7355
Steve Wu, Facilities and Fleet Services Manager
[email protected]
(650) 522-7345