SR-205-008 (4)
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City Council Report
City Council Meeting: December 5,2006
Agenda Item: , (,..
To:
From:
Subject:
Mayor and City Council
Candace Tysdal, Acting Chief Financial Officer
Pier Janitorial Services
Recommended Action
Staff recommends that the City Council authorize an increase to Purchase Order
Number 11492-0F issued to L.A. Cha for pier janitorial services in the amount of
$125,600.
Executive Summary
An increase to Purchase Order Number 11492-0F is necessary in an amount of
$125,600 to L.A. Cha for uninterrupted pier janitorial services until a formal bidding
process is completed. The formal bidding process to award a bid and execute a new
contract is expected to be completed in February 2007. Since July 1, 2006, $82,400
has been paid to L.A. Chao In order to maintain services at the pier until a new contract
is negotiated, an additional $125,600 is requested for a total not to exceed amount of
$208,000.
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Discussion
Backqround
L.A. Cha has been providing janitorial services at the Pier for several years, based on a
competitive bid process conducted in 2003. A renewal option to the contract with L.A.
Cha was not executed as of July 1, 2006, because L.A. Cha could not provide the
services under the contract at the stated prices and comply with Living Wage
requirements. L.A. Cha did, however, agree to provide janitorial services on an interim
basis until a formal bid process is completed. Staff issued a purchase order to L.A.
Cha reflecting cost increases due to Living Wage compliance and L.A. Cha certified that
they understand and are now in compliance with the City's Living Wage Ordinance. At
the same time, staff updated the scope of work and staffing requirements to include a
leased restroom trailer and an additional supervisory position.
After revision of the bid specifications, staff advertised the bid in the Los Angeles Times
and Santa Monica Daily Press on September 1 and 2, 2006. Bids were received and
opened on October 24, 2006. Staff conducted vendor interviews on November 16 and
27, 2006 and expects to make a bid award determination no later than December 1,
2006. Staff will return to Council on January 9, 2007 for award of bid by Council. It is
expected that a contract will be executed with the new provider no later than end of
February 2007.
Staff acknowledges that Council is scheduled to discuss the City's policy with respect to
outsourcing contractual services. The approval of this increase to a purchase order
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does not impact those policy discussions. In addition, to provide flexibility, the bid that
is currently in process will result in a one-year contract with two one-year options to
renew.
Budget/Financiallmpact
Funds for these services are available in account 30625.555010.
Prepared by:
Diane Howell, Purchasing Agent
Approved:
Forwarded to Council:
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Candace Tysdal
Acting Chief Financial 0
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