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SR-04-08-2014-3FCity of City Council Report Santa Monica City Council Meeting: April 8, 2014 Agenda Item: 6 F To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Contract Modifications for Custodial Services at the Santa Monica Pier and the Public Safety Facility Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a first modification to contractual agreement 9255 -OS in the amount of $264,861 with Diamond Contract Services, a California -based company, to provide custodial services at the Santa Monica Pier on a month -to -month basis with a living wage increase from July 1, 2014 to December 31, 2014 or until a formal contract is awarded and contractor is ready to start operations, whichever comes first. This would result in a four year and three month long amended contract total not to exceed $1,956,547. 2. Authorize the City Manager to negotiate and execute a second modification to contractual agreement 9256 -OS in the amount of $117,434 with Diamond Contract Services, a California -based company, to provide custodial services at the Public Safety Facility (PSF) on a month -to -month basis with a living wage increase from July 1, 2014 to December 31, 2014 or until a formal contract is awarded and contractor is ready to start operations, whichever comes first. This would result in a four year and three month long amended contract total not to exceed $946,567. Executive Summary On August 10, 2010, Council awarded Bid # 2980 to Diamond Contract Services, Inc. in the amount of $1,637,842 to provide custodial contractual services at the Santa Monica Pier for a three year and nine month term, subject to living wage increases. Additionally, on August 10, 2010, Council awarded Bid # 2987 to Diamond Contract Services, Inc. in the amount of $832,406 to provide custodial contractual services at the Public Safety Facility for a three year and nine month term, subject to living wage increases. Staff is in the process of formally requesting new bids for all contract locations for custodial cleaning services. This process may take several months. In order to ensure uninterrupted custodial cleaning services in the interim, staff recommends a 1 modification for contract 9255 -OS in the amount of $264,861 to extend custodial cleaning services at the Santa Monica Pier until December 31, 2014. Additionally, staff recommends a modification to contract 9256 -OS in the amount of $117,434 to extend custodial cleaning services at the Public Safety Facility until December 31, 2014. Background On August 10, 2010, Council awarded Bid # 2980 to Diamond Contract Services, Inc. in the amount of $1,637,842 to provide custodial contractual services at the Santa Monica Pier for a three year and nine month term, subject to living wage increases. Additionally, on August 10, 2010, Council awarded Bid # 2987 to Diamond Contract Services, Inc. in the amount of $832,406 to provide custodial contractual services at the Public Safety Facility for a three year and nine month term, subject to living wage increases. Discussion The City of Santa Monica and Diamond Contract Services entered into contractual services agreements 9255 -OS and 9256 -OS through June 30, 2014. Staff is in the process of formally requesting new bids for all contract locations for custodial cleaning services and will return to Council with a recommendation once a selection has been made. The approval process, purchasing equipment and contract staff clearances may take several months. In order to ensure uninterrupted custodial cleaning services in the interim, staff recommends a modification for contract 9255 -OS in the amount of $264,861 to extend custodial cleaning services at the Santa Monica Pier until December 31, 2014. Additionally, staff recommends a modification to contract 9256 -OS in the amount of $117,434 to extend custodial cleaning services at the Public Safety Facility until December 31, 2014. Both contract modifications would be on a month -to -month basis with a living wage increase from $14.08 per hour to $15.37 per hour, effective July 1, 2014. 2 Financial Impacts & Budget Actions The first modification for contract 9255 -OS to be awarded to Diamond Contract Services is $264,861, for an amended contract total not to exceed $1,956,547. Funds are included in the FY 2014 -15 budget in division 30455. The contract will be charged to account 30455.555010. The second modification for contract 9256 -OS to be awarded to Diamond Contract Services is $117,434 for an amended contract total not to exceed $946,567. Funds are included in the FY 2014 -15 Proposed Budget in division 014522. The contract will be charged to account 014522.55501 F. Prepared by: Sybille Moen, Sr. Administrative Analyst Approved: Forwarded to Council: Martin Pastucha Rod Gould Director of Public Works City Manager 3 Reference: Amended Contract No. 9255 (CCS) Amended Contract No. 9256 (CCS)