FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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UNIFORM AND JANITORIAL ARTICLES RENTAL SERVICE
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Amendment No. 2 to the existing service contract to Cintas Corporation No. 3 to provide Uniform and Janitorial Articles Rental Service, Specification No. S-2021-1277BD, for an increase of $160,488 to the current term for a new total amount not to exceed $1,000,000 for the period through March 31, 2025;
B. Approve an increase of $410,488 for the upcoming three-year renewal period option, for a new total amount not to exceed $1,250,000 for the period through March 31, 2028; and
C. Approve a revised three-year contingency of $187,500 (15%).
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BACKGROUND
The purpose of the existing Service Contract is to provide uniform and janitorial articles rental and laundering services for employees at Orange County Sanitation District’s (OC San) Plant Nos. 1 and 2. OC San staff involved in the collection and treatment of wastewater are provided uniforms to maintain a professional appearance, to satisfy OSHA safety requirements, and to protect the employees from exposure to contaminated and unpleasant materials. Uniforms are also required in accordance with OC San’s Memorandums of Understanding.
RELEVANT STANDARDS
• Commitment to safety & reducing risk in all operations
• Provide a safe and collegial workplace
PROBLEM
During the three-year period of the service contract, additional items, such as jackets, were added that were not originally contemplated. Additionally, while best efforts were made to estimate the costs associated with utilizing this service contract, operational needs, staff changes, and requested adjustments have resulted in a need for more funding than originally anticipated. Lastly, the initial six months of the service contract were dedicated to the setup and rollout of the uniforms, with full-time services being provided for the past two and a half years. Based on our monthly averages over this timeframe, an increase of the service contract renewal amount is needed in order to stay current with our service needs.
PROPOSED SOLUTION
Approve an increase of $160,488 to the current term of the existing service contract for a total amount not to exceed $1,000,000; approve an increase of $410,488 for the upcoming, three-year renewal; and approve a revised three-year contingency of $187,500 (15%).
TIMING CONCERNS
The current term of the existing contract, as well as the upcoming renewal, need additional funds in order to continue providing uniform and janitorial articles rental services, which are needed by OC San staff, both for safety and appearance reasons.
RAMIFICATIONS OF NOT TAKING ACTION
Failure to provide approval may negatively impact the safety of staff, result in OC San becoming non-compliant with MOU requirements, and increase the overall risk in all plant operations.
PRIOR COMMITTEE/BOARD ACTIONS
February 2022 - Approved a service contract to Cintas Corporation No. 3 to provide Uniform and Janitorial Articles Rental Service, Specification No. S-2021-1277BD, for a total amount not to exceed $839,512 for the period beginning April 1, 2022, through March 31, 2025, with one (1) three-year renewal period option; and approved a three-year contingency of $83,951 (10%).
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (Budget FY 2024-25 and 2025-26, Section 6, Page 12, Professional & Contractual Services) and the budget is sufficient for the recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Service Contract - Amendment No. 2