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SR 01-23-2024 5K City Council Report City Council Meeting: January 23, 2024 Agenda Item: 5.K 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Facilities Maintenance Subject: Award Bid to UNISERVE Facilities Services for Citywide Contracted Custodial Services Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemptions pursuant to Section15061(b)(3) (Common Sense Exemption), Section 15301, and Section 15324 of the California Environmental Quality Act (CEQA) Guidelines. 2. Award Bid #4457 to UNISERVE Facilities Services for custodial services for various City locations as required by the Public Works Department. 3. Authorize the City Manager to negotiate and execute an agreement with UNISERVE Facilities Services, in an amount not to exceed $5,995,985 (including a 10% contingency), for two years, with two additional four-year renewal options in the amount of $27,864,726 (including a 10% contingency) for a total amount not to exceed $33,860,711 over a 10-year period with future year funding contingent on Council budget approval. Summary The City of Santa Monica has adopted a hybrid service model of utilizing in-house custodial staff and contracted custodial services to clean City facilities to maximize workforce flexibility at sites with dynamic, seasonal demands (the Santa Monica Pier) while minimizing service interruptions at busy locations (Historic City Hall, City Hall East, Public Safety Facility and Main Library). Staff recommends an agreement with UNISERVE Facilities Services (UNISERVE) to provide custodial services for various citywide locations in an amount not to exceed $5,995,985 for two years with two additional four-year renewal options for a total amount not to exceed $33,860,711 to ensure the continuity of citywide custodial services. 5.K Packet Pg. 203 2 of 5 Discussion The Facilities Maintenance Division within the Public Works Department employs 38 permanent in-house custodians to provide cleaning services for City facilities, such as the Historic City Hall, City Hall East, Main Library, and public parks. The large number of facilities under the City’s care exceed the capabilities of the City’s workforce to provide in-house custodial services to all locations. As a result, the City augments custodial services by utilizing contracted custodial staff at locations such as the Santa Monica Pier, Public Safety Facility, City Yards, Animal Shelter, Arcadia Water Treatment Plant, the Santa Monica Swim Center, branch libraries, and the Santa Monica Municipal Airport (Airport). Many of the contract locations require consistent but limited number of service hours, while other sites, such as the Pier, require year-round staffing as well as additional staffing during the peak seasons. UNISERVE currently employs 38.0 staff to service the City’s contracted sites. This includes 1.0 Supervisor level position, 2.0 Custodial Lead positions and 35.0 Custodian positions. If the City were to provide the same level of custodial services using in-house personnel, staff estimates that staffing costs alone over two years would require an additional $1.6 million compared to utilizing UNISERVE’s contracted services. This cost increase excludes investments for additional vehicles, office equipment, cleaning equipment, and uniform purchases, as well as ongoing expenses in City overhead, training, and overtime incurred by backfilling vacation and sick leaves. On January 13, 2015 (Attachment A), staff presented the Contract and As-Needed Staffing Review: Policy, Practice, & Recommendations report. As part of the approved policy (Attachment B), City Council approved custodial and building maintenance services as meeting the criteria for contractual services under the categories of space required, equipment required, and workforce flexibility as part of the comprehensive report. Vendor Selection 5.K Packet Pg. 204 3 of 5 Bidder Recommendation Best Bidder UNISERVE Facilities Services Evaluation Criteria Bid evaluated on contracted custodial services experience with cities/municipalities, pricing, renewal options and requested increases. Municipal Code SMMC 2.24.180   Bid Data Date Posted Posted On Advertised in (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 06/12/2023 City’s Online Bidding Site Santa Monica Daily Press 35 08/17/2023 Best Bidder Justification Staff determined UNISERVE as the best bidder based on the following criteria: 1) general custodial services municipal experience, 2) pricing and 3) renewal options and requested increases. UNISERVE has been delivering custodial services to Fortune 1000 companies, airports, museums, and government entities for over six decades. The company has large, long-term custodial accounts with FedEx, the Getty Center, and the City of Los Angeles. Additionally, a committee, of five staff, assessed ability, capacity, and skill of all bidders and decided to conduct interviews with the top two bidders (CCS and UNISERVE). CCS was unresponsive to staff’s multiple communication efforts to schedule an interview. LGC Global Energy FM LLC was not considered because their bid submittal included hourly rates below the current established Living Wage rate. UNISERVE attended the scheduled interview and was deemed the best bidder based on the criteria stated above. Submittals Received Vendor First Year Contract Amount Base Hill Inc. $2,879,573 BBB-CA, Inc. dba Block by Block California $2,923,924 CCS $2,408,467 LGC Global Entergy FM LLC $2,558,619 Sea Crest Facilities Services $2,783,239 Servicon Systems, Inc. $2,803,478 Ultimate Maintenance Services $2,876,697 UNISERVE Facilities Services $2,685,170 5.K Packet Pg. 205 4 of 5 Environmental Review The award agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3), Section 15301, and Section 15324 of the CEQA Guidelines. The award agreement is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The award agreement will provide continued contractual custodial services to the City. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA pursuant to Section 15061(b)(3). Section 15301 (Class 1 – Existing Facilities) exempts projects that consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The provision of contracted custodial services would provide for continued maintenance of existing facilities. Furthermore, the establishment of Living Wages and health insurance requirements for contracted custodial staff as set forth in the agreement are categorically exempt pursuant to Section 15324 (Class 24 - Regulations of Working Conditions) of the CEQA Guidelines. Class 24 consists of actions taken by regulatory agencies to regulate employee wages, hours of work or working conditions where there will be no demonstrable physical changes outside the place of work. Therefore, agreement is also exempt from CEQA pursuant to Sections 15301 and 15324. Past Council Actions Meeting Date Description 01/13/15 (Attachment A) As-Needed and Contract Staffing Review Report Financial Impacts and Budget Actions Staff seeks authority to award an agreement with UNISERVE for citywide contracted custodial services. Funds are available within existing budgets and would be charged to the appropriate division or project account based on usage. Future year funding is contingent on Council budget approval. Contract Request FY 2023-24 Request Amount Future Years Amount FY 2023-24 Budget Account # Total Contract Amount 5.K Packet Pg. 206 5 of 5 $447,528 $33,413,183 Various $33,860,711 Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. January 13, 2015 Staff Report B. Policy for Hiring Contracted Staff (January 13, 2015 Staff Report_Attachment D) C. Oaks Initiative Form - UNISERVE 5.K Packet Pg. 207 5.K.a Packet Pg. 208 Attachment: January 13, 2015 Staff Report (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.a Packet Pg. 209 Attachment: January 13, 2015 Staff Report (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.a Packet Pg. 210 Attachment: January 13, 2015 Staff Report (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.a Packet Pg. 211 Attachment: January 13, 2015 Staff Report (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.a Packet Pg. 212 Attachment: January 13, 2015 Staff Report (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.a Packet Pg. 213 Attachment: January 13, 2015 Staff Report (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.b Packet Pg. 214 Attachment: Policy for Hiring Contracted Staff (January 13, 2015 Staff Report_Attachment D) (6116 : Award Agreement for Citywide Contracted 5.K.b Packet Pg. 215 Attachment: Policy for Hiring Contracted Staff (January 13, 2015 Staff Report_Attachment D) (6116 : Award Agreement for Citywide Contracted 5.K.c Packet Pg. 216 Attachment: Oaks Initiative Form - UNISERVE (6116 : Award Agreement for Citywide Contracted Custodial Services) 5.K.c Packet Pg. 217 Attachment: Oaks Initiative Form - UNISERVE (6116 : Award Agreement for Citywide Contracted Custodial Services)