That the City Council authorize the City Manager to execute an agreement and an annual purchase order for uniform maintenance services between the City and Vestis Corporation (Vestis).

The City's Public Works and Building Maintenance Staff currently rent work uniforms from Cintas Corporation. In 2017, the City entered into an agreement with G&K Corporation which was later bought out by Cintas Corporation. That agreement ended on June 30, 2022 and is currently being run on a month-to-month basis. Staff made several attempts to renegotiate the agreement with Cintas during 2022 into 2023. Cintas, like many companies during that time, endured a high turnover and vacancy rate which led to deficiencies in billing, reliable service, and the ability to finalize a new deal. Staff obtained several quotes from other companies during that time with a main focus on improving the billing methods, but the quotes received were not to the City’s satisfaction.

During Fiscal Year 2023-24, City staff obtained three informal quotes from different uniform companies. Staff compared the three quotes using existing knowledge of staffing levels, current inventory, and damage/loss charge history. Damage/loss charges are variable and depend on how many rented items are damaged or lost. The amount could be zero, but usually comes out to a similar amount as the base rate. The damage/loss history was estimated using damage/loss prices that were quoted, total value of the items the City would rent, and historical data on damaged/lost items. The three quotes and amounts are shown below:

Vestis quoted a very competitive rate which was significantly lower than the other companies. Vestis is a Fortune 500 company and is experienced in providing uniform maintenance services.

If approved by City Council, the agreement will include a three-year agreement with two one-year extensions. The extensions require mutual agreement of the two parties. Staff also recommends that the City Manager be authorized to issue an annual purchase order.

The annual amount is spread over 6 different budgets, Streets, Parks, Fleet, Water, Sewer, and Refuse. There is adequate funding available in the fiscal year 2024-25 budget accounts.

GENERAL PLAN RELEVANCE
LU 17.1 Adequate Community-Supporting Uses.

CITY COUNCIL GOALS AND OBJECTIVES:
Goal 2 – Management of Public Revenues and Fiscal Assets
Objective A – Closely monitor revenues, expenditures, and fiscal trends to ensure the City’s long-term fiscal stability.