SR 11-15-2022 5A
City Council
Report
City Council Meeting: November 15, 2022
Agenda Item: 5.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Facilities Maintenance
Subject: Authorization of Contract Modification for Citywide Custodial Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a second modification to Agreement #10534 in the amount of $2,240,069 with
UNISERVE Facilities Services Corp., for custodial services for various City locations.
This would result in a 7-year amended agreement through April 30, 2024 with a new
total amount not to exceed $9,953,390 with future year funding contingent on Council
budget approval.
Summary
The City utilizes a hybrid service model comprised of City custodial staff and contracted
custodial services to clean various City-owned and City-leased locations. The
implementation of a hybrid service model allows staff to minimize service interruptions
at busy locations and maximize workforce flexibility at sites with dynamic, seasonal
demands. Staff initiated a new bid process for custodial services, however, the bid
process has been longer than anticipated. The procurement process requires a
mandatory in-person job walk of 15 sites citywide, which was unachievable due to the
social distancing requirement and other restrictions set during the COVID-19 pandemic.
The City currently contracts with UNISERVE to provide custodial services at various
City facilities. Staff recommends modifying the agreement with UNISERVE to allow
adequate time to complete the formal bidding process. Staff will formally bid out these
services in the first quarter of year 2023 and seek Council authority to award a new
contract in the summer of 2023. Once a new contract is executed, a transition period is
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needed to ensure compliance with the California Displaced Janitor Opportunity Act and
the City’s requirement to retain existing custodians employed by the previous contractor
to ensure continuity in employment and service level. To adequately address the
essential standards of cleanliness, staff recommends modifying the existing 5-year
agreement with UNISERVE by an additional 2 years through April 30, 2024 and to
increase the total amount by $2,240,069 for a total amount not to exceed $9,953,390.
Discussion
On January 13, 2015, staff presented to Council a Contract and As-Needed Staffing
Review: Policy, Practice, & Recommendations Report (Attachment A). Council
approved contracted staff for custodial services as part of the comprehensive report.
On September 12, 2017, Council awarded Bid #4272 to UNISERVE and authorized a
contract to provide custodial services at various City facilities for one year, with four
additional one-year renewal options for a total amount not to exceed $7,713,321 over a
five-year period (Attachment B). The current contract (10534 CCS), with all options to
extend, expires on December 15, 2022. UNISERVE has agreed, in writing, to extend
the contract through April 30, 2024, at the same price, terms and conditions. The
contract is subject to the City’s Living Wage Ordinance and follows the contracting
policy approved by Council in 2015.
To properly solicit contracted custodial services, staff must formally bid out requests
which requires a mandatory, in-person, job walk of 15 sites citywide covering
approximately 457,543 square feet. During the initial preparation of the formal bidding
process, the State was under Emergency orders that included strict health and safety
protocols due to the COVID-19 pandemic, which prohibited staff from obtaining the
proper site specifications and conducting an in-person job walk with potential bidders.
Previously conducted job walks had over 30 attendees which included Finance staff,
custodial staff and potential bidders. Social distancing requirements prohibited staff from
conducting an in-person job walk. Staff took precautionary measures with the
emergence of five waves, including new variants, of the COVID-19 pandemic which
prolonged the bidding process. To bid out these services, additional time is needed so
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that staff may address the different and complex requirements of the heightened
demands of the post-pandemic standard of cleanliness.
Environmental Assessment
This is not a project for the purpose of CEQA.
Past Council Actions
Meeting Date Description
01/13/15
(Attachment A)
January 13, 2015, Staff Report – As-Needed and Contract Staffing
Review Report
11/15/22
(Attachment B)
September 12, 2017, Staff Report – City Council authorization to
award Bid #4274 to UNISERVE and negotiate and execute Contract
10534 for contracted custodial services
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from various funds to increase the
amount of contract with UNISERVE for contracted custodial services at various City
facilities. Future year funding is contingent on Council budget approval.
Agreement Modification Request
Agreement #
Current Authorized
Amount Request Amount Dept Account # Total Revised
Contract Amount
10534 $7,713,321 $2,240,069 Various Accounts $9,953,390
Prepared By: Kyla Johnson, Senior Administrative Analyst
Approved
Forwarded to Council
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Attachments:
A. January 13, 2015_Staff Report
B. UNISERVE_Staff Report_9-12-17
C. UNISERVE_Contract_10534
D. UNISERVE_Oaks
E. Written Comment
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5.A.a
Packet Pg. 26 Attachment: January 13, 2015_Staff Report (5058 : Authorize Contract Modification for Citywide Custodial Services)
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Packet Pg. 31 Attachment: January 13, 2015_Staff Report (5058 : Authorize Contract Modification for Citywide Custodial Services)
City Council Report
City Council Meeting: September 12, 2017
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Facilities Maintenance
Subject: Contract Award for Citywide Custodial Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4272 to UNISERVE Facilities Services Corp., a California-based
company, for custodial services for various City locations, as required by the
Custodial Services Section; and
2. Authorize the City Manager to negotiate and execute an agreement with
UNISERVE Facilities Services Corp. in an amount not to exceed $1,488,016
(including a 20% contingency) for one year, with four additional one-year
renewal options for a total amount not to exceed $7,713,321 over a five-year
period, with future year funding contingent on Council budget approval.
Executive Summary
Staff recommends an agreement with UNISERVE Facilities Services Corp. to provide
custodial services for various locations in the City in an amount not to exceed
$1,488,016 for one year with four additional one-year options for a total amount not to
exceed $7,713,321. The contract award would ensure continuity of custodial services,
Living Wage and health insurance for all eligible contract employees, and no
displacement of any permanent City custodians.
Background
Historically, the City has adopted a hybrid service model of utilizing in-house and
contract custodial services to clean various City-owned and City-leased locations in
order to minimize service interruptions at busy locations and maximize workforce
flexibility at sites with dynamic, seasonal demands. In addition to regular cleaning
services such as vacuuming and emptying trash, the City also contracts out specialty
cleaning services, including window cleaning, carpet cleaning, floor cleaning, and
upholstery cleaning.
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On November 25, 2014 (Attachment A), Council awarded a contract to Lee’s
Maintenance Services to provide custodial services at various City facilities for an initial
six-month period, pending the outcome of a citywide contract study, with five one-year
renewal options for a total amount not to exceed $7,570,582 over a five-and-a-half-year
period. The current contract, with all options to extend, runs through June 30, 2020.
On January 13, 2015 (Attachment B), staff presented to Council a Contract and As-
Needed Staffing Review: Policy, Practice, & Recommendations report. Council
approved contracted staff for custodial services as part of the comprehensive report;
custodial services have not changed substantially since that analysis.
Discussion
Currently, the City employs 55 permanent in-house custodians to provide cleaning
services for City facilities that have stable demand of long stretches of hours, such as
the Annenberg Beach House, City Hall, public libraries, public parks, the Santa Monica
Pier, and the Santa Monica Swim Center.
The City also augments service by utilizing contract custodial staff at the Arcadia Water
Treatment Plant, City TV, City Yards, Civic Auditorium administrative offices, Public
Safety Facility, Santa Monica Airport, Santa Monica Animal Shelter, Santa Monica Pier
and Police Substations on the Pier, as well as leased offices located at 1437 4th Street,
1717 4th Street, 1730 4th Street, 1660 7th Street, and 1901 Main Street. Some of the
contract locations require consistent but limited number of service hours, where other
sites, such as the Pier, require year-round in-house and contract staffing as well as
additional contract staffing during peak seasons. Lee’s Maintenance Services (Lee’s)
has been providing custodial services at the above contract sites since 2014.
Affordable Care Act
Signed into law in March 2010, the Affordable Care Act, or ACA, is a federal mandate
that requires employers with at least 50 full-time equivalent employees to offer
“affordable, minimum value health coverage” to their full-time employees. When Lee’s
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first started providing custodial services to the City, no federal guidelines existed for
small businesses to comply with the ACA.
Subsequently, the federal government released further ACA compliance instructions,
and Lee’s began providing health insurance to its qualified custodians in March 2016.
The City agreed to reimburse Lee’s for the health insurance costs of its eligible
custodians assigned full-time to City job sites using the contract’s contingency fund to
cover the additional expenses. At the time of this report, $81,833 has been expended
on ACA payments.
While Lee’s has been providing satisfactory services to the City and the current contract
provides renewal options through June 2020, staff decided it would be prudent to
evaluate custodial services options available in the current marketplace by going out to
bid. The new formal bid requires that ACA and other mandated costs, including the
City’s Living Wage, be included in an all-inclusive hourly rate cost proposal in order to
simplify the administrative aspects of managing the contract.
Vendor Selection
In March 2017, the City published Notices Inviting Bids to provide custodial services for
various City locations, as required by the Custodial Services Section, in accordance
with City specifications. The bid was posted on the City’s online bidding site, Planet
Bids, and notices were advertised in the Santa Monica Daily Press in accordance with
City Charter and Municipal Code provisions. A total of 52 vendors downloaded the bids.
Seven bids were received and publicly opened on April 17, 2017, per Attachment C:
Company First Year Regular Service
Coastal Building Services $1,146,914
Executive Suite Services, Inc. $1,398,875
Huffman & Downs Maintenance $1,165,145
Lee’s Maintenance Services, Inc. $1,254,927
Professional Building Maintenance $1,289,911
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Servicon System, Inc. $1,145,569
UNISERVE Facilities Services Corporation $1,131,464
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, quality of
service, experience, capacity, and reputation & judgment. Based on these criteria,
UNISERVE Facilities Services Corp., the lowest bidder, is recommended as the best
bidder. In addition to being the lowest bidder, UNISERVE has demonstrated superb
industry experience and capacity as well as a strong commitment to employee training,
service quality assurance, and established professional practices.
Founded in 1966, UNISERVE has been delivering custodial services to Fortune 1000
companies, airports, museums, and government entities for over five decades. The
company has large, long-term custodial accounts, which includes FedEx, the Getty
Center, the Getty Villa, and the City of Los Angeles. Specifically, the City of Los Angeles
provided an excellent reference and attested to the company’s capability to handle a
wide variety of job sites that are similar to those in the City of Santa Monica.
Additionally, the company provides ACA health insurance and the City’s current Living
Wage of $15.87 per hour (adjusted annually per the Consumer Price Index) to all of its
employees assigned to City sites. Finally, although not a bid requirement, UNISERVE’s
proposal to provide a 100% dedicated account manager for the City illustrates the
company’s commitment to customer care and quality assurance.
Based on these criteria, staff recommends that Council award bid #4272 to UNISERVE
Facilities Services Corp. for custodial services at various City locations for a five-year
amount not to exceed $7,713,321. The first contract year and first renewal option have
a not-to-exceed amount of $1,488,016 per year. The subsequent three renewal options
are subject to an increase based on the City’s Living Wage Ordinance.
Service Continuity and Sustainability
There will be no interruption of service during the transition period. Lee’s will continue to
provide custodial services at all contract locations on a month-to-month basis with a 30-
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day termination notice until the new contract with UNISERVE is in place. UNISERVE
will comply with the California Displaced Janitor Opportunity Act and the City’s
requirement to retain existing custodians employed by the previous contractor to ensure
continuity in employment and service level. UNISERVE will continue to use
environmentally sensitive, low toxicity cleaning products that are supplied by the City
and pre-approved by Risk Management and the Office of Sustainability and
Environment to ensure the health of staff, the public, and the environment.
Alternative
If the City were to provide the same level of custodial services using in-house
personnel, staff estimates a cost difference of $3.65 million, or 56% more, in staffing
costs alone over the course of five years compared with utilizing services from
UNISERVE (Attachment D). Bringing custodial services in-house for the contract
locations would incur additional salaries and benefits of $1.96 million in the first year
(plus potential cost of living and benefit premium increases for subsequent years) and
the hiring of an additional 22.4 FTE Custodians and 2 FTE Custodial Supervisors. This
does not include significant initial investment for vehicles, tenant improvement for
additional office spaces, office equipment, cleaning equipment, and uniform purchases,
as well as ongoing expenses in City overhead, training, overtime incurred by backfilling
vacation and sick leaves, and maintenance/replacement of vehicles, equipment, and
supplies.
In addition to the fiscal impact, changing the current service model and creating
additional permanent positions at this time would have a negative operational impact by:
A) reducing workforce flexibility at locations where service demand is seasonal, such as
the Santa Monica Pier and the additional service level required during the popular
Twilight Concert Series every summer; B) limiting the City’s options to redefine or adjust
service levels when City staff currently working in leased office spaces move into the
new City Services Building in the foreseeable future; and C) increasing administrative
complications and the span of supervision for the Custodial Services Section, including
recruitment, staff training, performance evaluations, disciplinary actions, and workers’
compensation risk.
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Financial Impacts and Budget Actions
The contract to be awarded to UNISERVE Facilities Services Corp. is for an amount not
to exceed $7,713,321. Funds of $1,488,016 are available in the FY 2017-18 budget in
various departments. The contract will be charged to various accounts as needed
(Attachment E). Future year funding is contingent on Council budget approval.
Prepared By: Yvonne Yeung, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. November 25, 2014 Staff Report
B. January 13, 2015 Staff Report
C. Bid #4272 Summary
D. In-House vs. Contract Cost Analysis
E. Contract Budget
F. Oaks Initiative Disclosure Form - UNISERVE
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Packet Pg. 123 Attachment: UNISERVE_Contract_10534 (5058 : Authorize Contract Modification for Citywide Custodial Services)
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Packet Pg. 129 Attachment: UNISERVE_Contract_10534 (5058 : Authorize Contract Modification for Citywide Custodial Services)
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Packet Pg. 130 Attachment: UNISERVE_Contract_10534 (5058 : Authorize Contract Modification for Citywide Custodial Services)
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Packet Pg. 131 Attachment: UNISERVE_Contract_10534 (5058 : Authorize Contract Modification for Citywide Custodial Services)
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Packet Pg. 132 Attachment: UNISERVE_Oaks (5058 : Authorize Contract Modification for Citywide Custodial Services)
1
Vernice Hankins
From:Council Mailbox
Sent:Tuesday, November 15, 2022 11:31 AM
To:councilmtgitems
Subject:Fw: Agenda Item 5.A
From: Carlos Rubio <crubio@teamsters911.com>
Sent: Tuesday, November 15, 2022 11:27 AM
To: Council Mailbox <Council.Mailbox@santamonica.gov>
Cc: David White <David.White@santamonica.gov>; Rick Valte <Rick.Valte@santamonica.gov>
Subject: Agenda Item 5.A
EXTERNAL
Honorable City Council:
The purpose of this email is to inform you that we have recently found out that there is an item in today’s agenda that is
looking to authorize a contract for modification for city wide custodial services.
In accordance to the Memorandum of Understanding between California Teamsters Public, Professional & Medical
Employees Union, Local 911 and the City of Santa Monica, Article 5.12, the City of Santa Monica is to provide notice of
any proposal to subcontract work ordinarily performed by employees represented by Teamsters. The City of Santa
Monica is to meet and confer with Teamsters under this contract provision and applicable law.
It is inappropriate for the City of Santa Monica to move forward with this until the obligations have been met. Our
custodial division has been essential to the safety and maintenance of quality of life of the City of Santa Monica
community. Contracting out their work is not only wrong but not in line with the labor management partnership we
have.
Please confirm with me that this approval will be continued and stayed until we meet and confer.
In Unity,
Carlos I. Rubio
President
California Teamsters Local 911
Public, Professional & Medical
Employees Union
9900 Flower Street
Bellflower, CA 90706
T: (562) 595-4518 Ext: 111
F: (562) 427-7298
E: crubio@teamsters911.com
Item 5.A 11/15/22
1 of 1 Item 5.A 11/15/22
5.A.e
Packet Pg. 133 Attachment: Written Comment (5058 : Authorize Contract Modification for Citywide Custodial Services)