Memorandum

City of Lawrence

Public Works

TO:	Mark Thiel
FROM:	Jason Stowe
DATE:	January 28, 2016
RE:	Custodial Information

Background

Prior to 2012, the City of Lawrence custodial services were contracted at each facility by each division / department independently.  In an effort to consolidate these services and reduce cost, city staff met with each department, developed specifications and entered into a custodial contract with a vendor (currently ISS facility services) on May 11, 2012. Duties and obligations of the contractor are outlined in Exhibit A attached, but generally include goods and services related to cleaning of hard surface floors, restrooms, break rooms, trash removal, vacuuming and dusting. The current contract for custodial service includes Police ITC, Solid Waste Annex, Lawrence Municipal Airport, House Hold Hazardous Waste facilities, Fire Medical #5, Fire Rescue and Training, River Front Offices, Solid Waste, Community Health, Traffic Division, Streets, Central Maintenance Garage, and Municipal Court (See attached contract document for full specification and locations).

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). This is an annual contract that may be renewed if it is mutually agreed to by both parties. The annual costs for these services are $129,469.56 and are paid for by each department / facility. The current contract is due to expire in March of 2016.

City Staff has recently provided information regarding wages provided to the contracted staff working for the current vendor (See attached City Of Lawrence Accounts information for wage rates per location and hours for the current vendor)  and how it compares to the cities tax abatement policy and wage floor (See attached for details Code Section 1-2121 et seq.). The result of the previous information is that the current vendor does not meet the criteria for the wage floor as it relates to the cities policy regarding tax abatement; however the current vendor is not receiving tax related incentives.

Considerations

1. Continue the current contract and vendor.

· This option will allow the current level of satisfactory service provided by the current vendor to stay intact.

· This option keeps the current contract and pricing that was established for the 2016 budget

2. Terminate the current contract, add / edit any additional requirements and rebid.

· This option has the potential to result in overall cost increases that may come with rebidding.

· There is a potential with this option that satisfactory service may be compromised resulting in more city staff man hours overseeing quality assurance and quality control.

3. Amend current contract with a change order to provide additional requirements

· This option has the potential to increase total overall costs associated with changing the current contract.

· This option will allow the current level of satisfactory service provided by the current vendor to stay intact.

4. Terminate the contract and perform services with internal staff.

· This option will increase total overall cost, hiring, training and equipping new staff to perform these services. See attached  memo and table to see potential cost increases associated with this option.

· This option would allow total overall quality assurance and quality control of the service.

Action

Direct staff on how to proceed with custodial services and wage requirement(s)