Consideration and Approval of Contract: Approve Amendment(s) to the Custodial Services Contract(s) with Pinnacle Janitorial, Inc. dba Pinnacle Building Services ("Pinnacle") to reflect the City of Flagstaff 2026 Minimum Wage Adjustment.
 

1. Approve the Fourth Amendment to the City-Wide Custodial Services Contract with Pinnacle to reflect the 2026 Minimum Wage Adjustment; and
2. Approve the Second Amendment to the Airport Custodial Services Contract with Pinnacle to reflect the 2026 Minimum Wage Adjustment; and
3. Authorize the City Manager to execute the necessary documents.

The City of Flagstaff contracts with Pinnacle to provide custodial services at multiple City facilities under the City-Wide Custodial Services Contract and at the Flagstaff Pulliam Airport under a separate Airport Custodial Services Contract. 

Effective January 1, 2026, the City of Flagstaff minimum wage increased from $17.85 to $18.35 per hour. Pinnacle formally notified the City that the minimum wage increase would require a corresponding 3.25% increase to Pinnacle’s bill rates to account for wages, taxes, and insurance, in order to maintain staffing and service quality.

The proposed amendments update the compensation provisions and associated pricing exhibits for both the City-wide and Airport custodial contracts to reflect the 2026 City minimum wage adjustment and update Airport cleaning frequencies to more accurately reflect their needs. All other terms and conditions of the original contracts remain unchanged.

These Amendments implement a 3.25% increase to Pinnacle’s bill rates associated with the January 1, 2026, City minimum wage increase. 

• City-wide custodial services: Varies by Division (custodial services line items)

• Airport custodial services: Airport Fund (221-07-221-0883-0-4233)

City-Wide Custodial Services

1. On June 18, 2024, the City Council awarded City-Wide Custodial Services to Pinnacle.
2. On August 28, 2024, the City Council adopted the First Amendment to add additional facilities.
3. On February 12, 2025, the City Council approved the Second Amendment to reflect the 2025 Minimum Wage Adjustment. 
4. On November 21, 2025, the City Council approved the Third Amendment to update cleaning frequencies.

Airport Custodial Services

1. On November 4, 2024, the City Council awarded Pinnacle the Airport Custodial Services contract.
2. On February 12, 2025, the City Council approved the First Amendment to reflect the 2025 Minimum Wage Adjustment. 

1. Approve the Fourth Amendment to the City-Wide Custodial Services Contract with Pinnacle to reflect the 2026 Minimum Wage Adjustment; and
2. Approve the Second Amendment to the Airport Custodial Services Contract with Pinnacle to reflect the 2026 Minimum Wage Adjustment; or
3. Do not approve these Amendments and provide alternate direction to staff regarding custodial service delivery.

Council approved a city-wide contract on June, 18, 2024. The City received a total of eight proposals for custodial services through a formal solicitation posted to PlanetBids. An evaluation committee consisting of representatives of various City facilities and one outside representative reviewed and scored the proposals. The three highest-scoring Proposers were then invited to a formal discussion with the Evaluation Committee. The discussions consisted of an established set of questions provided to the contractors beforehand. The combined scoring tabulation from the initial evaluation of the proposals and the discussion process resulted in two top Proposers: DetailXperts and Pinnacle Building Services. Some history regarding the selected Contractors is provided below. When awarding the two vendors, Pinnacle was the only responsive, responsible to sign with the City of Flagstaff. 

Pinnacle Building Services was founded in 1994, in Flagstaff, Arizona. In their proposal, Pinnacle described utilizing two tools to help provide proactive service and maintain customer focus; Connecteam for reporting, tracking and training materials, and Sortly for inventory management. Pinnacle scored 613 out of the total 690 points possible. 

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