sr-072809-1eCity Council Meeting: 07/28/09
Agenda Item: 1-E
To: Mayor and City Council
From: Joan L. Akins, Director of Community Maintenance
Subject: Extension of Custodial Services Agreement at the Santa Monica Pier
Recommended Action
Staff recommends that the City Council approve an extension to the current month-to-
month custodial services agreement with High Tech Building Maintenance at the Santa
Monica Pier through June 30, 2010 or until formal bid is awarded with a not to exceed
amount of $426,000.
Executive Summary
In May 2009, The Resource Collection, who provided contractual custodial services at
the Santa Monica Pier, filed for bankruptcy. To ensure uninterrupted custodial services,
the City signed an interim month-to-month agreement with High Tech Building
Maintenance. Staff is requesting an extension of the current month-tu'~-month agreement
through June 30, 2010 or until formal bid is awarded. Funds in the i~'mount of $343,500
for this interim month-to-month agreement are available in the FY09/10 operating
budget. Staff will request amid-year appropriation in the amount of $2,500.
Background
On March 13, 2007, Council awarded bid#2904 to The Resource Collection for custodial
services at the Santa Monica Pier for an amount not to exceed $343,500 for a one year
period with two, one-year renewal options and a 30 day cancellation clause. At the end
of April 2009, it was brought to the City's attention that The Resource Collection had not
paid its employees since April 8, 2009. On May 6, 2009, the City of Santa Monica
informed The Resource Collection that they were in breach of Contract No. 8712 and
advised them to immediately cure the breaches of the Agreement or the City would
terminate the Agreement. The Resource Collection ceased to provide services and the
contractual agreement was terminated.
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Discussion
Staff is in the process of revising contract specifications and preparing to go out to
formal bid. In order to ensure uninterrupted custodial services at the Santa Monica Pier,
staff entered into amonth-to-month agreement with High Tech Building Maintenance
and is recommending extending the month-to-month agreement until June 30, 2010 or
until formal bid is awarded by Council.
Financial Impacts &Budget Actions
The total month-to-month service agreement from July 1, 2009 -June 30, 2010 is
estimated not to exceed $426,000. Funds in the amount of $343,500 for this interim
month-to-month agreement are available in the FY2009-10 operating budget in account
30582.555010; an additional General Fund appropriation in an amount up to $82,500
will be necessary at mid-year or year-end to address the projected budget shortfall of
the increased costs of the operating agreement.
Prepared by: Sybille Moen, Sr. Administrative Analyst
Approved:
Joan Akins
Director, Community Maintenance
Forwarded to Council:
l~,l,.~mont Ewell
City Manager
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Reference Contract No.
9093 (CCS).