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1995-0418_EMPIRE PIPE CLEANING & EQUIPMENT_G2b_Agenda Report AGENDA ITEM April 18, 1995 TO: George Scarborough, City Manager FROM: Ronald C. Sievers, Director Public Lands and Facilities SUBJECT: Approval of Contract Extensions for: City Building and Facilities Janitorial Services (Saddleback Community Enterprises); City Park Restroom Janitorial Services (Saddleback Community Enterprises); Sanitary Sewer Line Maintenance (Empire Pipe Cleaning & Equipment); City Street Light Maintenance and Repair (C.B. Electric). RECOMMENDATION By motion, approve two year contract extensions for the following: 1. Saddleback Community Enterprises (City Building & Facilities Janitorial Services) in the amount of$24,536 per year; 2. Saddleback Community Enterprises (City Park Restroom Janitorial Services) in the amount of$10,448 per year; 3. Empire Pipe Cleaning & Equipment (Sanitary Sewer Line Maintenance) in the amount of $27,000 per year; 4. C.B. Electric (City Street Light Maintenance and Repair) in the amount of$20,000 per year. SITUATION In 1992, the City of San Juan Capistrano entered into several maintenance contracts. These contracts included City janitorial services, sewer line maintenance, and street light maintenance and repair. These contracts were the result of a competitive bid process that solicited bids from contractors throughout Southern California. The contracts will expire on June 30, 1995 and have provisions for two year extensions upon mutual agreement between both parties. The contractors involved have agreed to extend these contracts for an additional two years at no increase in costs to the City. It should be noted that the prices under current contract were obtained at a time when the Southern California economy was at its lowest. Staff has reviewed the current market and finds that the rates for each of these existing contracts continue to be very competitive. Contractors in today's market are finding more work available and do not need to quote prices as low to obtain work. In addition to maintaining the cost savings realized through competitive bidding when the economy was low, the City realizes savings in the staff time it would take to familiarize new contractors with City facilities, as well as policies and procedures. Recognizing that each of these contractors has demonstrated their ability to serve the City's needs and successfully fulfill their FOR CITY COUNCIL AGEND AGENDA ITEM April 18, 1995 Page Two contracts to the City's satisfaction, staff believes the City will benefit by extending each of these contracts for an additional two years. At the end of the proposed extensions, these contracts will again be put out to bid. Contracting with Saddleback Community Enterprises for janitorial services continues to be a rewarding experience for the City. The City's association with this non-profit organization continues to serve the community's needs by providing gainful employment for physically and mentally challenged individuals who have proven to take great pride in their work. It should be noted that each of the contracts contains a no cause termination clause which gives the City the ability to terminate the contract(s) at any time, due to performance problems or other justification. Should the City determine that there is a better alternative which is of financial or other benefit to the City, we will have the ability to terminate the contract at any time. At this time, Staff recommends the following contract extensions: NEW CONTRACT CONTRACTOR SERVICE PERIOD AMOUNT Saddleback Com- City Building & Fac munity Enterprises Janitorial Services 7/1/95-6/30/97 $24,536* Saddleback Corn- City Park Restroom munity Enterprises Janitorial Services 7/1/95-6/30/97 $10,448* Empire Pipe Cleaning Sanitary Sewer Line & Equipment Maintenance 7/1/95-6/30/97 NTE $27,000* C.B. Electric City Street Light Maint & Repair 7/1/95-6/30/97 NTE $20,000* *Represents the annual cost of a two year contract. Copies of the recommended contract documents are attached. NOTIFICATION Saddleback Community Enterprises Empire Pipe Cleaning& Equipment C.B. Electric COMMISSIONBOARD REVIEW, RECOMMENDATIONS N/A AGENDA ITEM April 18, 1995 • Page Three FINANCIAL CONSIDERATIONS The annual amount budgeted for each contract would be as follows: 1. City Building & Facilities Janitorial Services $24,536 01-62416-4451 2. City Park Restroom Janitorial Services $10,448 01-62414-4450 3. Sanitary Sewer Line Maintenance NTE $27,000 17-62419-4454 4. City Street Light Maint & Repair NTE $20,000 01-62429-4442 There is no increased cost to the City for the above contracts. All contractors have agreed to extend their contracts at no increase. ALTERNATE ACTIONS 1. Approve two year contract extensions for City Building and Facilities Janitorial Services; City Park Restroom Janitorial Services; Sanitary Sewer Line Maintenance; and City Street Light Maintenance and Repair. 2. Do not approve two year contract extensions. 3. Request additional information from Staff. RECOMMENDATION By motion, approve two year contract extensions for the following: 1. Saddleback Community Enterprises (City Building & Facilities Janitorial Services) in the amount of$24,536 per year; 2. Saddleback Community Enterprises (City Park Restroom Janitorial Services) in the amount of$10,448 per year; 3. Empire Pipe Cleaning & Equipment (Sanitary Sewer Line Maintenance) in the amount of $27,000 per year; 4. C.B. Electric(City Street Light Maintenance and Repair) in the amount of$20,000 per year. Respectfully submitted, Ronald C. Sievers RC S/NB:sc