TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Erick Lee, Public Works Director
Sean Roberts, Field Operations Manager
Nicky Petroff, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Five-Year General Services Agreement with NMS Management, Inc. for Janitorial Services in an Amount Not-to-Exceed $4,799,335 (Budgeted) (Public Works Director Lee).
ADOPT RESOLUTION NO. 25-0004
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 25-0004 approving a Five-Year General Services Agreement with NMS Management, Inc. for Janitorial Services in an Amount Not-to-Exceed $4,799,335; and
2. Authorize the City Manager and/or his or her designee to extend the agreement for up to two additional one-year terms.
FISCAL IMPLICATIONS:
The agreement under consideration with NMS Management, Inc. (NMS) for janitorial services spans five years, with an annual cost not exceeding $908,484 for the first year. When accounting for the annual contingency of $20,000 (for a total of $100,000 over the five-year term) and an additional $3,500 in contingency to accommodate the period of May 1, 2030 to June 30, 2030, the total cost of the agreement is not to exceed $4,799,335. The agreement also includes a provision for two optional one-year extensions.
Annual price adjustments are capped at three percent (3.0%) per year and cannot exceed the Consumer Price Index for All Urban Consumers (CPI-U) change for the Los Angeles-Long Beach-Anaheim area in the past 12-month period. Funding for these adjustments will be allocated through the annual budget process.
The proposed agreement's effective date will be May 1, 2025, and the total costs for services through June 30, 2025 are anticipated to total $147,940. The current janitorial services agreement is anticipated to utilize $520,000 of the available budget by the end of the agreement term. Sufficient funds remain available in the current budget to support this proposed agreement with NMS for the remainder of Fiscal Year 2024-2025.
Currently, $787,724 is budgeted annually for these services within the General Fund, State Pier/Parking Lot, and the Building & Grounds Maintenance funds for Public Works/ Parks & Recreation Department. Future budgets will need an additional $150,000 annually to maintain these services.
BACKGROUND:
The City has a longstanding practice of contracting for janitorial services to maintain its facilities, including City Hall, Public Works buildings, community centers, parks, and public safety buildings. Beyond routine cleaning, these services are essential for addressing on-demand needs, such as special events and emergency situations that require immediate attention.
DISCUSSION:
On July 24, 2024, staff solicited Janitorial Services Request for Proposals (RFP) #1327-25 through OpenGov, a public bid notification system. Twelve proposals were received on August 27, 2024.
The scope of work consists of janitorial services at all City facilities. This scope is broader than what is currently contracted by the City under its existing agreement. Significant service enhancements that are included with the new scope of work include, but are not limited to:
• One full-time day porter during business hours at City Hall
• All special events are included in the monthly service
• Window/Glass washing service twice a year at all facilities
• Additional cleaning and litter pickup at Metlox
• Carpet shampooing with extraction on a quarterly basis
• Routine cleaning of water facilities (Block 35 and Peck Reservoir)
To better address the City's diverse needs, the Public Works Department established a citywide committee to evaluate proposals and provide recommendations. By incorporating feedback from various departments, this process ensured that each proposal was assessed in the context of broad citywide priorities and operational challenges.
The evaluation criteria for this service contract and vendor selection were based on several factors, including but not limited to:
• Contractor’s Qualifications and Experience in Providing Services
• Availability of Trained Staff in the Los Angeles Area
• References
• The costs, quality, service, fitness, the bidder's ability to deliver, availability, prior experience, and other factors relating to the City's particular needs
|
Contractor |
Total Annual Proposal Amount |
|
CCS Facility Services |
$589,043 + special events hourly rate with 4-hour min |
|
JJ Property Maintenance Network, Inc. |
$402,449 |
|
NMS Management, Inc. |
$908,484 |
|
Premier Property Preservation, LLC |
$584,302 |
|
Pride Industries One |
$942,608 |
|
ServiceLeader LLC |
$386,160 |
|
Sparkling Dream Cleaning LLC |
$880,086 |
|
Ultimate Maintenance Services |
$877,184 |
|
Universal Building Maintenance, LLC |
$1,268,781 |
|
US Metro Group |
$988,014 |
|
Vested Solutions |
$1,142,328 |
|
Z&C Services Inc |
Disqualified - did not attend mandatory job walk |
The City’s selection committee thoroughly evaluated each submitted proposal and advanced the top three scoring vendors to the interview phase. Following the interviews, the City contacted the vendors’ references to gather additional insights.
Based on the totality of the evaluation process, the selection committee recommends that the City enter into an agreement with NMS for janitorial services. NMS submitted a comprehensive proposal, and its staff responded to all questions from the selection committee in a well-informed manner. NMS has nearly forty years of experience in the industry and is currently providing services to multiple municipal agencies. In addition, this decision was based on their proven capacity, positive references, and stated ability to effectively and reliably meet the City’s service requirements. NMS has also committed to providing a full-time on-site manager to oversee its employees providing janitorial services.
After extensive consideration, staff recommends that NMS be considered the lowest responsible bid and that the City enter into a five-year agreement with NMS Management, Inc. for janitorial services not to exceed $4,799,335. The agreement includes an annual contingency amount of $20,000 for unforeseen services and/or emergencies over the five-year term and an additional $3,500 in contingency to cover the period of May 1, 2030 to June 30, 2030.
Additionally, staff recommends that the City Manager be given the authority to administratively exercise the two one-year options to extend the term of the agreement if deemed in the City’s best interest.
PUBLIC OUTREACH:
This bid was advertised on the City’s website and OpenGov, a public bid notification board.
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 agreements have been reviewed by the City Attorney and are approved as to form.
ATTACHMENTS:
1. Resolution No. 25-0004
2. Agreement - NMS Management, Inc.