DATE: December 18, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH NMS MANAGEMENT, INC. FOR JANITORIAL SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve a two-year Janitorial Services Agreement with NMS Management, Inc., with two one-year extension options to be administratively executed, in an amount not to exceed $952,722 for janitorial services at various City buildings and $1,025,367 for the administratively approved extensions if exercised; appropriate $200,697 from the City Building Maintenance Reserve; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The City routinely contracts for janitorial services at the Civic Center, City Operations Center, Civic Center and Mission Branch Library, John Landes Recreation Center, William A. Wagner Aquatic Center, Code Enforcement Building and the Transit Center Parking Garage (collectively “City Buildings”). On December 16, 2020, the City entered into a two-year agreement with two one-year extension options with Coastal Building Services, Inc. for Janitorial services.
In October of 2024, the Building Maintenance Division solicited proposals from qualified private companies to provide janitorial services for City Buildings. Eleven companies responded to the request for proposals. Attachment 2 lists the eleven companies who submitted a proposal and their proposed costs.
After a review of the proposals regarding pricing and the level of service to be provided, four companies were interviewed by a three-person panel of City staff. The four companies that were interviewed were Velociti, The Office, Verde Facilities, NMS Management.
NMS Management Inc. was recommended by the interview panel based on their staffing plan, qualifications, response time, and references. The company also has a proven record of providing a high quality of service at a competitive price.
There is an existing agreement between the City and NCTD which includes a cost sharing of 50% of all maintenance costs of the Transit Center parking facility.
FISCAL IMPACT
The total cost of the two-year agreement with NMS Management, Inc. is $952,722. The first six months cost for FY 2024-25 will be charged as shown on the table. An increase in appropriation will be needed in FY 2024-25 and FY 2025-26 due to unforeseen increased costs in the new bid proposals. Staff is requesting to use reserves in the amount of $200,697 from the Unrestricted City Building Services Reserve fund account 851.3100.0002 which has an available balance of $2.2M; therefore, sufficient funds are available.
|
NMS Management, Inc. |
|
FY24/25 Amount (6 months) |
FY 24/25 Appropriation |
FY 25/26 Appropriation |
Business Unit |
Funding Source |
Available Balance |
|
$148,180 |
$148,180 |
$160,000 |
630603851.5320 Civic Center Bldg |
851.3100.0002 Building Reserves |
$2.2M |
|
$22,528 |
$22,528 |
|
630615851.5320 Police/Library Bldg |
|
|
|
$10,683 |
$10,683 |
$21,367 |
630640851.5320 Parks & Rec Bldg (John Landes Rec) |
|
|
|
$19,306 |
$19,306 |
$38,612 |
630640851.5320 Parks & Rec Bldg (William Wagner Aquatic Center) |
|
|
|
$10,481 |
|
|
630642851.5320Code Enforcement |
|
|
|
$18,759 |
|
|
630605851.5320 COC Bldg Maint. |
|
$ 67,066 |
|
$8,244 |
|
|
600643101.5320 OTC Parking Lot Maint. |
|
|
|
$238,181 |
$290,697 |
$236,479 |
|
|
|
|
|
|
|
|
|
|
FY 2025-26 annual cost will be $476,361, a budget increase of $228,223 is requested.
FY 2026-27 (optional) $500,179.
FY 2027-28 (optional) $525,188.
The optional future year costs represent an increase of approximately $250,000 annually and will be added to future budget years.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Carmen Ryan, Principal Management Analyst
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. List of Interview Companies
3. Agreement