Memorandum

City of Lawrence

Public Works

TO:	Mark Thiel
FROM: CC:	Jason Stowe
DATE:	October 8, 2015
RE:	Janitorial/Custodial Contract

The current janitorial/custodial duties for the City of Lawrence are provided to several facilities to include the Community Health, Court Services, Fire/Medical Admin Center, Fire/Medical Training Center, HHW Building, Airport, Police Department I.T.C., SWAN, Solid Waste, Streets, Traffic, Central Maintenance Garage and the River front Offices. Currently in place for this service is a contract with ISS Facility Services which runs through March of 2016 and is renewable each year.  The total monthly payment for this service is $10,789.13 and includes cleaning supplies but does not cover paper products. This contract may be canceled at any time by either party for any reason with a 30 day written notice as well as if any party fails to substantially perform in accordance with terms and conditions of the contract (See attached contract Section 2 & 5).  Duties and obligations of the contractor are outlined in Exhibit A attached, but generally include goods and services. All provisions with applicable law can be found in section 8 & 12 of the contract. All records and invoices may be obtained from the contractor as outlined in section 11 of the contract.

There are a couple options that have been identified as to how the City could move forward with janitorial/custodial service. The city could seek a new RFP process to identify other interested parties or perform the service “in house” with the addition of staff, equipment, training and supplies.

If it is the City’s desire to seek an RFP for continued vendor services for this program the next opportunity to do that could be as soon as desired with proper notification. However the contract for services expires April of 2016 and staff would recommend waiting until March of 2016 to pursue this option. Additionally if the City desires to change any requirement for services covered in the current contract the time to do that would be during a new RFP process. The current unit pricing and contract have had no changes since inception of the original contract in 2011, with the exception of addition of services in other locations. It is city staffs opinion that a new RFP process could increase the unit price of these services.

Another option would be to bring this service “in house”. This would require the addition of 5 (FTE’s) custodian II and 1 Field Supervisor to cover the duties outlined above. The base annual salary and benefits for the custodial positions is $55,048.26.Annual Salary plus benefits for a field supervisor would be $83,040.11. In addition to salaries and benefits, the city would incur costs for equipment such as vehicles, floor machines, vacuums etc... Other annual expenses would include various trainings (OSHA, Hazmat etc...) clothing and cleaning supplies that are currently provided through the contracted services and provided as part of the current contract cost.

The table below outlines what staff believes to be the cost annually to place these services in house

Variable and Fixed Costs	Custodian (5,FTE’s) 903	Supervisor (1) 906	Equipment (Vehicles, floor machines, vacuums)	Supplies Surface cleaners, mops, brooms etc...	Training OSHA, HAZMAT Clothing	Total
Salaries/Benefits	$275,241.30	$83,040.11
Reoccurring annual costs				$15,0000	$5,000
Onetime cost			$200,000			$200,000
Total Reoccurring Annual cost	$275,241.30	$83,040.11		$15,000	$5,000	$378,281.41
*Total First Year cost	$275,241.30	$83,040.11	$200,000	$15,000	$5,000	*$578,281.41

It is the department’s recommendation to stay with the current contract and vendor to minimize the overall negative budget impact that would occur with either of the above mentioned options.

*Total First Year cost is the sum of the equipment line item and all other annual cost line items.