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Home My WebLink About5E Custodial Contract o� P � O �P ti v 4646 Dakota Street SE Prior Lake, MN 55372 �INNESO�� CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 12, 2013 AGENDA #: 5E PREPARED BY: KATY GEHLER, DIRECTOR OF PUBLIC WORKS AND NATURAL RE- SOURCES PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ENTERING INTO THE CITY'S STANDARDIZED CONTRACT FOR CUSTODIAL SERVICES AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE DOCUMENT ON BEHALF OF THE CITY. DISCUSSION: Introduction The purpose of this agenda item is to select a vendor for the 2014 custodi- al services of city facilities. Hi StOry The custodial contract with our current vendor has expired. Staff has taken this opportunity to explore options for custodial services for the City of Prior Lake facilities. The three options include; contracting with an outside ven- dor (current method), partnering with the City of Savage, and in-house staff for custodial duties. Current Circumstances Current custodial services are accomplished through various vendors for general cleaning, carpet shampooing, window cleaning, tile cleaning, drop mats, and other miscellaneous services. General cleaning is completed multiple times a week and is accomplished through a year-long contract with a vendor. The remaining contract items are completed once or twice annually and accomplished through the quoting process at the time of ser- vice. Option #1 — Contracting with a Vendor for Custodial Services For comparison of the options, a Request for Proposals was sent out to vendors in September and a mandatory walk through was held with 8 companies attending. The bids were received and opened on Friday Sep- tember 20, 2013. Below are the four qualified bids received for cleaning seven facilities: City Hall, Police Station, Library, Club Prior, Fire Stations, and Public Works Facility. These are annual costs listed. The current budget amount is $75,463. All Source Vanguard Coverall Clean- Jan-Pro Clean- Cleanin Cleanin in in $67,169.40 $62,928.00 $64,920.00 $221,701.20 Phone 952.447.9800 / Fa�c 952.447.4245 / www.cityofpriorlake.com The table below lists what staff considered as positives as well as draw- backs for Option #1. Pro Con Minimal staff involvement in man- Relies upon the vendor's ability to agement of services. Human Re- manage staff and the level of ser- source Management is with Ven- vice provided. dor. Lowest cost option Services generally limited to scope of contract. Material and equipment costs in- "Opt out" of contract for poor level cluded in vendors pricing of service requires a complete chan e of vendor. Vendors have pool of employees to There have been instances when draw from to cover absences or custodial employees took city accom lish lar er ro'ects ro ert . Option #2 Partnering with Savage for Custodial Services Staff looked at a program set up by the City of Savage. Savage hired full- time employees and took on cleaning internally. This has eliminated many other contracted cleaning services including carpet cleaning, tile striping and waxing, and drop mat rentals for their city. By partnering with Savage, we could tap into their expertise in running the programs but we would in- cur management costs as an additional expense to the program. Based on their experience Savage provided staffing and equipment costs. Considering the buildings and services desired, two full time staff would be required to complete all of the cleaning services we currently contract. The only contract service we would need to maintain is elevated (above 6 feet) window cleaning. Start up costs for this program include: City Vehicle $ 24,000 (to transport employees and equipment) Cleaning Equipment $10,076 Misc $ 3,955 (includes caddy, barrels, rags) Estimated Start Up Costs : $38,031 Annualized Costs Labor $102,000 Vehicle( seven year life) $3,569 E ui ment five ear life $1886 Window Cleanin $8,670 Cleanin Su lies $3,000 Mana ement Costs $20,000 Estimated Annual Cost $119,125 The table below lists what staff considered as positives as well as draw- backs for Option #2. 2 Pro Con Minimal staff involvement in man- Additional cost of management of agement of services. Human Re- staff source Management is with City of Sava e. Greater control of level of service Limited staffing pool to draw from and ability to adjust staffing to ac- to cover absences. com lish the Cit 's service levels No need for additional contracts for Start-up capital required to pur- carpet cleaning, tile stripping and chase equipment and supplies. waxin , and floor mat rental Services not limited to defined Total cost compared to option 1. sco e. Option #3 Hiring Prior Lake City Staff to Serve as Custodians Although the City of Savage was amenable to Option #2, they recom- mended a third option. This option was similar to Option #2, however the City would manage the staff in house. The start-up costs would be the same whether partnering with Savage or managing the service in-house. The significant difference would be in management of the service. Through the SCALE effort, Savage did agree to assist Prior Lake in man- agement support, training and cleaning tips, and best proactive methods. Start up costs for this program include: City Vehicle $ 24,000 Equipment $10,076 Misc $ 3,955 (includes caddy, barrels, rags) Estimated Start Up Costs : $38,031 Annualized Costs Labor $102,000 Vehicle $3,569 E ui ment $1886 Window Cleanin $8,670 Cleanin Su lies $3,000 Estimated Annual Cost $119,125 Pro Con Complete control of hiring/firing Staff involvement to recruit, train rocess and su ervise em lo ees. Personnel in building during day to Limited staffing pool to draw from assist when needed to cover absences. No need for additional contracts for Start-up capital required to pur- carpet and tile cleaning and floor chase equipment and supplies. mat rental Assistance from the City of Savage Large projects would need to occur to start u and run the ro ram after normal business hours. Services not limited to Scope of Services 3 Conclusion Below is a table of the requested budget for 2014 which is based on exist- ing contract services. By using either Option #2 or Option #3 carpet clean- ing, tile cleaning, drop mat service and miscellaneous charges would be included in the scope of work. Although we are likely to get a higher level of service from an in-house option, the start up costs are prohibitive in 2013. Staff is recommending awarding a year contract to Vanguard with the potential to reevaluate at the next contract cycle. Cleaning Contract $75,463 Carpet Cleaning $13,103 Window Cleaning $8,670 Tile Cleaning $3,000 Drop Mats $4,180 Misc Cleaning $9,437 Total $113,853 ISSUES: There are trade-offs with all of the options as noted above. Staff feels there is merit in further developing an in-house option in the future due to the greater service levels that can be achieved that lead to better kept and healthier building. This option does create additional supervisory burden which we are not presently staffed to provide. This may mean the one of the two individual's hired become responsible or we find another means of providing this oversight. However, due the current budget limitations and timelines staff is recommending award of a custodial contract for 2014. FINANCIAL Funds are appropriated within the general and enterprise fund operating IMPACT: budgets to accommodate custodial cleaning services and are identified within the following departments: Buildings and Plant, Police, Fire, Library and water. ALTERNATIVES: 1. Adopt the attached resolution awarding bid for one year to Vanguard Cleaning and authorizing execution of the city's standardized contract. 2. Table this item for a specific reason. 3. Deny this item for a specific reason and provide staff with direction. RECOMMENDED Staff recommends Alternative #1 MOTION: 4 o� P � O �P h � U � 4646 Dakota Street SE '�I�so��` Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A CONTRACT WITH VANGUARD CLEANING ON BEHALF OF THE CITY FOR CUSTODIAL SERVICES FOR THE MUNICIPAL BUILDINGS Motion By: Second By: WHEREAS, Custodial cleaning services are necessary to maintain city owned building premises in a clean and sanitary environment for public and employee use; and WHEREAS, The City is interested in contracting out its custodial service for the following buildings: City Hall, 4646 Dakota Street SE Fire Station #1, 16776 Fish Point Road SE Fire Station #2, 3906 Station Place NE Library/Resource Center, 16210 Eagle Creek Avenue Club Prior, 16210 Eagle Creek Avenue Maintenance Center, 17073 Adelmann Street SE, and Police Station, 4649 Dakota Street SE WHEREAS, A"Request for Bids for Custodial Services" was prepared and approved for all interested vendors; and WHEREAS, Upon bid advertisement, the following bids have been solicited and received for custodial services. All Source Vanguard Coverall Jan-Pro Cleanin Cleanin Cleanin Cleanin $67,169.40 $62,928.00 $64,920.00 $221,701.20 NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The low bid in the amount of $62,928.00 was received from Vanguard Cleaning representing the total cost for custodial services for the period January 1, 2014 — December 31, 2014 with the option of renewal upon agreement from both parties 3. Vanguard Cleaning shall enter into an amended version of the City's Standardized Agreement for Contractor Services as approved by the City Attorney 4. The Mayor and City Manager are authorized to execute the contract on behalf of the City with Vanguard Cleaning, 5. Funds for this purpose shall be appropriated from the various departments in the General and Enterprise Funds. PASSED AND ADOPTED THIS 12th DAY OF NOVEMBER 2013. YES NO Hedber Hedber Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager 2