Agenda Item #12.1
For Council Meeting of: May 24, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: ALAN ALTON, CHIEF FINANCIAL OFFICER
BRANDALYN TRAMEL, PURCHASING AGENT
AUTHOR JENNIFER MYLES, SENIOR BUYER
FINANCE DEPARTMENT
SUBJECT: AWARD – FIVE YEAR EXTENSION TO F001438 GENERAL SERVICE AGREEMENT WITH ADS-MYERS INC FOR CITYWIDE JANITORIAL SERVICES AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Finance, Transportation and Public Work, Recreation & Parks, and Police Departments, that the Council, by resolution, approve the Seventh Amendment to General Service Agreement F001438 for a five-year extension with ADS-Myers Inc., Gardnerville, NV for citywide janitorial services in the amount of $4,149,805.20, for a total amount not to exceed $6,561,392.15.
EXECUTIVE SUMMARY
The current contact for city-wide janitorial services under F001438 General Service Agreement is due to expire on June 30, 2022. The current terms of the agreement allows for one, five-year extension option.
BACKGROUND
The City of Santa Rosa completed Request for Proposal 17-04 for citywide janitorial services in May 2017. Council approved F001438 General Service Agreement for a five year contract award, with one five year renewal option on June 20, 2017 in the amount of $2,305,041, plus $100,000 contingency for miscellaneous one-time services.
Since the award, there has been a total of six Amendments adding, changing, or removing service, one of which was approved by Council in January 2021.
The janitorial contract services various City facilities. Services include, but are not limited to vacuuming, carpet spot cleaning, blind dusting, emptying main trash, compost and recycling cans, dusting window treatments, cleaning break rooms and restrooms, monthly, quarterly, and annual floor and window treatments, cleaning and removal of graffiti in parking garage elevators, cleaning outside of Railroad Square building, and other assorted janitorial services. ADS-Myers staff has played an intrigal part in providing sanitization cleaning utilizing CDC approved cleaning products during the panedemic.
PRIOR CITY COUNCIL REVIEW
June 20, 2017, the City Council, by Resolution 2017-101, approved award of General Service Agreement F001438.
January 5, 2021, the City Council, by Resolution 2021-005, approved the Fourth Amendment to General Service Agreement F001438 to add service for the new Downtown Portland Loo.
ANALYSIS
On January 20, 2022, Purchasing staff received a five-year extension proposal from ADS-Myers. The proposed five year extension shows an overall increase of 72% through the next five year period, referenced in Attachment 1 to the staff report.
In examination of the proposed increase, Senior Buyer reviewed the CPI increases over the past five years from June 2017 to December 2021, resulting in a 14.7% increase under CPI for All Urban Consumers (CPI-U) Series CUURS49BSA0, Not Seasonally Adjusted, San Francisco-Oakland-Hayward, CA, all urban consumers data, and that the data is forcasting another potential 15% CPI increase over the next 5 years based on historical data.
In addition, the five year projection for increase in cost in doing business includes a current 43% increase in wages from $14/hr to $20/hr minimum, a current increase of 10-15% in material costs and supply chain challenges, and an increase of 26% in fuel costs, and a forecast for increased benefits for the additional paid leave per employee under the Build Back Better program, should it pass in the Senate.
Based on the analysis, staff has determined that the five year extension proposal is fair and reasonable.
FISCAL IMPACT
Funds for this expense are included in the Fiscal Year 2021-22 proposed budget within the departments that utilize the service, and as a regular operating expenditure, are expected to be included in subsequent years’ budget proposals when presented to the City Council.
ENVIRONMENTAL IMPACT
The proposed action is exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3) and 15378 in that there is no possibility that the implementation of this action may have significant effects on the environment, and that no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Attachment 1 - Contract Compensation Schedule-5 Year Extension Janitorial Services Resolution / Exhibit A - Seventh Amendment to General Services Agreement F001438
CONTACT
Alan Alton, [email protected], 707-543-3093
Brandalyn Tramel, [email protected], 707-543-3706
Jennifer Myles, [email protected], 707-543-3709
AWARD – FIVE YEAR EXTENSION TO F001438 GENERAL SERVICE AGREEMENT WITH ADS-MYERS INC FOR CITYWIDE JANITORIAL SERVICES PAGE 3 OF 3