TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Anna Luke-Jones, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Agreement with Unifirst Corporation for Uniform and Safety Mat Services to Modify the Provisions Governing Unifirst Corporation’s Compensation (Public Works Director Lee).
ADOPT RESOLUTION NO. 22-0149
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 22-0149, approving Amendment No. 2 to the agreement with Unifirst Corporation (Unifirst) to modify the provisions governing the vendor’s compensation.
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FISCAL IMPLICATIONS:
On September 19, 2018, the City Council approved a four-year contract with Unifirst Corporation to provide uniform rental services with an estimated value of $52,000 and an option to extend the term of the contract for one additional two-year period. The agreement also limited the amount of services to a maximum of $13,000 per year. On October 6, 2022, staff exercised the option to extend the term of the contract to September of 2024 as part of Amendment No. 1.
If Amendment No. 2 is approved, the annual limit of $13,000 will be removed. The total compensation payable the vendor under the six years of this agreement is estimated to be $100,000. However, due to the nature of the service, Unifirst’s compensation will be governed by the existing fee schedule, and the ultimate compensation over the six year period could be lower or higher than $100,000, depending on the level services actually needed by the City. Sufficient funding for this amendment exists in the departmental operating budgets. Future years will be budgeted accordingly for this service.
BACKGROUND:
The City outsources its Public Works and Purchasing Warehouse Division uniform services. The agreement is managed by Public Works.
The City has a Memorandum of Understanding (MOU) with the California Teamsters Local 911 that requires the City to provide all non-administrative Public Works employees with clean and presentable work clothing, to be provided and laundered through a uniform rental service. The MOU also allows for employees of other departments to receive uniforms at the discretion of the City, which for purposes of this contract are two employees in the Purchasing Warehouse. These uniforms, which for most individuals consist of work shirts and pants, provide a clean, standardized appearance and identifies this portion of the City’s workforce as City employees.
The uniform vendor provides laundering, repair, and replacement services as well as rental of the uniforms. In addition, the vendor also provides other items such as shop rags, dust mops, and safety mats.
DISCUSSION:
The agreement with Unifirst was originally established in 2018 and did not account for the current size of the Public Works workforce. It also did not anticipate the amount of employee turnover that Public Works has experienced over the past four years. With every instance of staff turnover in Public Works, including retirements and promotions, new employees are hired into vacant positions and the City incurs corollary uniform costs. As of September 15, 2022, 40 employees receive Unifirst uniforms and two safety items have been added to the weekly service.
In order to provide sufficient authority to pay for needed services for the remainder of the contract term, staff recommends City Council approval of Amendment No. 2.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 22-0149
2. Amendment No. 2 - Unifirst Corporation
3. Agreement and Amendment No. 1 - Unifirst Corporation