Adoption of a resolution authorizing the Director of General Services to execute an amendment to the agreement with Service By Medallion to extend the janitorial contract on a month-to-month basis through March 31, 2002 at an additional cost of $60,000 for a total contract amount not to exceed $970,794.89.
The current
Janitorial contract at the Environmental Services Department’s Water Pollution
Control Plant (WPCP) was awarded to Service by Medallion in December 1995,
after a Request for Proposal (RFP) process.
The contract contained options for annual extensions which were
exercised and the final option expired on December 31, 2000.
A question
was raised as to whether all or part of this service could be better performed
by the City workforce. In order to study this question the contract had to be
extended to allow work to continue from January 1, 2001 through March 31, 2001. That request was approved per Council
Resolution 64250 on December 21, 2000.
At the end of this period, the question of whether to create new City
positions or continue contracting out this service had not been determined. A staff report dated March 28, 2001
recommended an extension of this agreement through October 2001 to further
study this labor issue. This course of
action was approved by the Treatment Plant Advisory Committee (TPAC) on April
12, 2001 and an extension was approved by Council on April 17, 2001 item
2.9.
Staff has evaluated the possibility of increasing City staffing levels to provide this service. That analysis has resulted in the conclusion that current market conditions are such that continuation of this specific contracted service is fiscally prudent. Perhaps more importantly, the user department has stated that retaining a combination of in house and contract service allows WPCP management to more quickly adjust to meeting special service demands. Fluctuations in levels of service needs are easier to address due to the contractor’s ability to expediently provide additional resources or reduce hours of service based on need. The additional service provided through this contract is approximately equivalent to three workers on an annual basis to supplement the four City staff working at the WPCP.
The existing service contract is expiring and an extension is needed to allow time to secure TPAC’s concurrence and to conduct a competitive procurement process for the continuation of janitorial services. The Water Pollution Control Plant staff has indicated that the level of performance by the current contractor, Service by Medallion, meets or exceeds the specified requirements in the current contract.
This
recommendation will be presented for approval to the Treatment Plant Advisory
Committee (TPAC) on November 8, 2001. Using the proposed contractual
arrangement for providing this service has previously been endorsed by TPAC.
The
Environmental Services Department/Water Pollution Control Plant’s Oversight
Committee will be reviewing this service contract during the extension period
and input will be provided for any new contract specifications should they be
needed. The extension will allow staff
to finalize the new specifications, mail out the requests for quotation,
analyze the returned vendor responses and return to Council with a
recommendation. Additionally, a
transition period should be afforded to any new vendor should the current
vendor not be selected to continue.
In order to continue janitorial service until a new contract can be executed, the existing contract with Service by Medallion needs to be extended through March 31, 2002. The contractor has agreed to hold the current pricing until that time.
Not applicable
This
memorandum has been coordinated with TPAC, Environmental Services Department,
Attorney’s Office, and Budget Office.
Fund: San Jose/Santa Clara Treatment Plant Operating Fund - 513
Amount: $54,563,960
Budget Document: 2001-2002 Adopted Operating Budget, Page 139
Jose Obregon
Director, General Services Department