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AGENDA ITEM REVIEW FORM |
6.A.
Regular City Council Meeting
- Meeting Date:
- 12/08/2021
- Department Head:
- Eulogio Vera
- Submitted By:
- James Einwaechter, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding renewal of the ALSCO, Inc. uniform services contract with the City of San Luis. (Eulogio Vera, Director of Public Works)
SUMMARY:
Background
On January 14, 2015, the Council approved a new up-to-five year contract with ALSCO, Inc. to provide uniform services to several city departments, including the Public Works Department (Fleet Services, Highway Users, Solid Waste, Wastewater, and Water Divisions), Parks and Recreation Department (including Parks, Recreation, and Facilities Divisions), as well as Billings and Collections’ meter readers. In so doing, the city dismissed continuing to contract with the Aramark Company (the city’s uniform services provider for over 10 years) due to pervasive concerns with the poor quality of service to city departments. The period of performance for the 2015 ALSCO, Inc. contract was 60 months, comprised of an initial 24 months plus three (3) consecutive 12- month periods that were “automatically” renewed. We are now well beyond the originally-agreed period of performance and need to enter into a follow-on uniform services contract.
City Code-Purchasing
Over the life of the contract, the fiscal impact will be more than $45,000.00. Under the City Code that would trigger a formal bid process. However, ALSCO has proven to be a reliable provider. They are the only provider in proximity which is important to provide the city with timely service. As was the case in 2015, ALSCO, Inc., continues to be the only responsive/responsible firm in the local area that is capable of supporting the city’s recurring uniform issue, replacement, and cleaning requirements with “boots on the ground” presence. For that reason, it would be an unnecessary cost for the city to go through the bid process and justifiable good cause for the city to waive formal purchasing procedures for this contract as is allowed under San Luis City Code-Purchasing § 3.05.010(F).
Time Period in the Contract
As detailed in the ALSCO addendum to the attached Service Agreement, the period of the renewed contract would be for 36 months, with the option to renew for up to 24 additional months unless terminated by either the City or ALSCO, Inc. Also attached is an Addendum to the Service Agreement, that the city staff proposed and ALSCO accepted, that puts a clearer face on the manner of ALSCO Inc.’s performance and mutually-agreed procedures.
On January 14, 2015, the Council approved a new up-to-five year contract with ALSCO, Inc. to provide uniform services to several city departments, including the Public Works Department (Fleet Services, Highway Users, Solid Waste, Wastewater, and Water Divisions), Parks and Recreation Department (including Parks, Recreation, and Facilities Divisions), as well as Billings and Collections’ meter readers. In so doing, the city dismissed continuing to contract with the Aramark Company (the city’s uniform services provider for over 10 years) due to pervasive concerns with the poor quality of service to city departments. The period of performance for the 2015 ALSCO, Inc. contract was 60 months, comprised of an initial 24 months plus three (3) consecutive 12- month periods that were “automatically” renewed. We are now well beyond the originally-agreed period of performance and need to enter into a follow-on uniform services contract.
City Code-Purchasing
Over the life of the contract, the fiscal impact will be more than $45,000.00. Under the City Code that would trigger a formal bid process. However, ALSCO has proven to be a reliable provider. They are the only provider in proximity which is important to provide the city with timely service. As was the case in 2015, ALSCO, Inc., continues to be the only responsive/responsible firm in the local area that is capable of supporting the city’s recurring uniform issue, replacement, and cleaning requirements with “boots on the ground” presence. For that reason, it would be an unnecessary cost for the city to go through the bid process and justifiable good cause for the city to waive formal purchasing procedures for this contract as is allowed under San Luis City Code-Purchasing § 3.05.010(F).
Time Period in the Contract
As detailed in the ALSCO addendum to the attached Service Agreement, the period of the renewed contract would be for 36 months, with the option to renew for up to 24 additional months unless terminated by either the City or ALSCO, Inc. Also attached is an Addendum to the Service Agreement, that the city staff proposed and ALSCO accepted, that puts a clearer face on the manner of ALSCO Inc.’s performance and mutually-agreed procedures.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE ALSCO, INC.'S SERVICE AGREEMENT AND ADDENDUM FOR UNIFORM SERVICES AND WAIVE FORMAL PURCHASING PROCEDURES AS ALLOWED UNDER CITY CODE § 3.05.010(F) FOR THE GOOD CAUSE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- See fiscal impact statement
- BUDGETED AMOUNT:
- YES
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Multiple Departmental Acccounts
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This will be a continuation of contract services. Fiscal impact for this agreement for this year is included in the adopted city budget, paid via multiple department-managed accounts. No additional funds are required.