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SR-07082008-1CCity CounciB Meeting: July 8, 2008 Agenda item: 1-C To: Mayor and City Council From: Elaine Polachek, Director of Community Maintenance Subject: Extension of Custodial Services Contract at Public Safety Facility Recommended Action Staff recommends that the Ci#y Councl approve amonth-to-month extension of the custodial services contract with L.A. Cha Maintenance Company at the Public Safety Facility {PSF} through November 30, 2008 at a new monthly rate of $19,573 not to exceed $97,865 Executive Summary Staff contracts with L.A. Cha Maintenance Company for custodial. services at the PSF.. L.A. Cha Maintenance Company. has advised the City that they are not able to honor their second one-year renewal rate. Staff is currently undertaking a formal bid process for custodial services at the PSF and is scheduled to return to Council on September 9, 2008 with an award recommendation. Staff is recommending that Council approve a month-to-month extension of L.R. Cha Maintenance Company's contract so that custodial services can continue to be provided at the PSF until the new contractor is in place. Discussion Qn June 27, 2006, Council awarded bid #2899 to L.A. Cha Maintenance Company for custodial services at the PSF for a one year period with two one-year renewa! options. These services include regular cleaning of o~ces, restrooms, kitchen areas, floor care, etc. L.A. Cha Maintenance Company has advised the City that they are not able to honor their second one-year renewal rate. Staff is currently undertaking a formal bid process for custodial services at the PSF. The bidding closes on July 11, 2008 and staff is scheduled to return to Council on September 9, 2008 with an award recommendation.. ]n order to ensure uninterrupted service at the PSF, staff is recommending extending L.A. Maintenance Company's contract on a month to-month basis until a formal bid is awarded and the new contractor is in place. Due to security 1 requirements at the PSF the selected contractor's employees will be required to undergo background checks which may delay the contractor's start date. The current monthly rate for custodial services at the PSF is $19,009. L.A. Cha Maintenance Company advised that they are not able to honor their second year renewal option at the price quoted in bid#2899, and that effective .July 1, 2008 they would be able to provide services at a new monthly rate of $19,573 until the City gets a new contractor in place. Staff anticipates that a formal bid will be awarded in September 2008 and that the new contractor will start by no later than December 1, 2008. Financial Impacts & Budget Actions Total expenditures for the ex#ension of the contract are not expected to exceed $97,865. Staff is requesting to extend the current contract on a month-to-month basis at the higher monthly rate until the new bid is awarded and the contractor can begin work. Funding is available in account 01586.533225. Prepared by: Joe McGrath, Custodial Services Manager Approved: Forwarded to Council; Elaine M. Polachek P. nt Ewell (' -r Director, Community Maintenance City anager 2