TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE: NOVEMBER 26, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
AWARD OF CONTRACT TO BASE HILL, INC. FOR PARK RESTROOM CUSTODIAL SERVICES (FUNDING SOURCE: GENERAL FUND AND LANDSCAPE AND LIGHTING DISTRICT FUND)
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SUMMARY
The City outsources custodial services for all City-owned park restrooms. The City’s current contract with Commercial Building Management (CBM) expired in September 2024, with two optional one-year extensions remaining. CBM did not wish to extend their services under the current contract terms. Therefore, a Request for Proposals (RFP) for park restroom custodial services was issued in October 2024. Five bids were received, ranging in cost from $92,880 to $442,800 per year.
Staff recommends awarding a contract and entering into an agreement for park restroom custodial services with Base Hill, Inc., who was determined to have submitted the proposal with the best value.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Award a contract to Base Hill, Inc. for City-owned park restroom custodial services and authorize the City Manager to enter into a three-year agreement with two optional one-year extensions with Base Hill, Inc. in an amount not to exceed $155,520 per year, and authorize a contingency of $7,776, for a total of $163,296 annually, or $816,480 during the term of the agreement; and
B. Appropriate $79,296 in 2024-25 and 2025-26 from the unassigned General Fund balance to fully fund the agreement for park restroom custodial services.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Delay awarding contract and request more information from staff.
FINANCIAL REVIEW
The budgeted amount for park restroom custodial services is currently $84,000 annually. The proposed contract with Base Hill, Inc. is $155,520. Staff proposes to include an annual contingency of $7,776, for a total of $163,296 annually. The contingency will only be used for the authorized addition of future services or special cleanings. An appropriation of $79,296 in 2024-25 and 2025-26 from the unassigned General Fund balance is proposed to fully fund park restroom custodial services. The additional cost of park restroom custodial services will be included in the City’s operating budget beginning in 2026-27.
This project complies with all City purchasing guidelines. Bid and contract documents are available for review in the City Clerk's Office.
The costs to carry out this project, research the issue, prepare documentation, and complete this report are estimated to be $1,663. These costs are in staff time allocated to the project and are included in the operating budget of the Community Services Department.
ANALYSIS
The City contracts for cleaning of all City-owned park restrooms. The contract for park restrooms also includes locking and unlocking park restrooms and the pedestrian tunnel under the I-10 Freeway daily. Additionally, the contract for park restrooms includes the locking, unlocking, and cleaning of the Village Plaza furniture and the cleaning of the restrooms outside of City Hall. Staff meets with the contractor on a regular basis to ensure custodial services are provided as specified in the contract.
The City’s current contractor is Commercial Building Management. The initial term of the contract expired in September 2024, with two optional one-year extensions. CBM does not wish to extend services under the current contract terms. This is primarily due to increased wages over the three-year period. Additionally, CBM has recently changed ownership, and the new owner does not agree to the terms of the original contract. Due to the late notice of termination, CBM has agreed to continue services on a month-to-month basis until a new contractor can commence services.
To ensure the City receives the best value for a contract, a Request for Proposals was issued in October 2024. Historically, the Village Parking Structure restrooms and elevators were included in the custodial services for buildings. However, the park restroom custodial agreement scope of work included the locking, unlocking, and cleaning of the Plaza furniture, and cleaning of the outside City Hall restrooms. Because the park restroom custodians are already in the area, staff included the Parking Structure restrooms and elevators to the park restroom scope of work. Five bids were received at the end of the bid period. Bids ranged from $92,880 to $442,800. Below is a chart with each contractor and total bid amount.
|
Contractor |
Total Bid Amount |
|
Base Hill, Inc. |
$155,520 |
|
Commercial Building Management |
$ 92,880 |
|
Nuway Express |
$442,800 |
|
Guaranteed Janitorial Service |
$285,888 |
|
SoCal Cleaners |
$150,595 |
Staff developed criteria to evaluate the bid proposal submissions. These criteria were detailed in the RFP for the bidders’ information. State law does not require the City to award maintenance contracts solely based upon “low bid.” Bid evaluation criteria are designed to ensure that the selected bidder is the “best value” for the community. Staff identified eight categories by which the bids would be evaluated. Three staff members from the Community Services Department were selected to evaluate the bids, and each bid was rated on a 1-5 point scale in each of the eight categories below, with 5 points being the highest score:
• Cost - Park Restrooms
• Responsiveness to Specifications
• References/Previous Performance
• Ability to Provide Service
• Consistency with Current Equipment Standards
• Unspecified Value-Added Offerings
• Implementation Schedule and Reports
• Hazard Communication Program
Base Hill, Inc.’s proposal was determined to represent the best value for custodial services of park restrooms. Base Hill, Inc. has been in business for over twenty years and has extensive experience providing custodial services to municipal governments. Base Hill, Inc. provides custodial services for the cities of Maywood, Seal Beach, Pasadena, El Monte, and Westlake Village. Additionally, staff checked Base Hill, Inc.’s references, which all provided very positive comments.
While Commercial Building Management has been the City’s contractor for park restroom custodial services for several years and proposed the lowest cost for services, CBM has struggled to meet the basic requirements of the prescribed scope of work. Currently, two part-time City employees are inspecting park restrooms for cleanliness, costing approximately 2,600 hours in staff time per year or $76,000 annually. These employees address small deficiencies in restroom cleanliness and report to the Supervisor/Manager any larger deficiencies. The Supervisor/Manager then works with the contractor to address these larger concerns, which takes approximately 150 hours annually. Park Rangers also spend a portion of their time inspecting park restrooms. Several times a year, Park Rangers assist staff with unlocking the restrooms due to CBM failing to do so for various reasons. This takes approximately 30 hours of Park Ranger time annually. The approximate number of staff hours spent on contract oversight for CBM is 2,780 annually.
The next lowest bidder, SoCal Cleaners, lacks the experience required for the scope of work. SoCal Cleaners’ experience is primarily in private office building custodial services. Staff does not feel that SoCal Cleaners has the experience or ability to provide the required services.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds this item relates to Council Priorities, Sustainability Plan, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
Approval of this agreement is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jeremy Swan Cari Dillman
Community Services Director Community Services Manager