CITY COUNCIL STAFF REPORT
MEETING DATE: August 24, 2016
PREPARED BY: Cynthia Iwanaga, Management Analyst/Community Services
APPROVED BY: City Manager
Title
SECOND AMENDMENT TO FIRATO SERVICE COMPANY AGREEMENT
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution approving the second amendment to the maintenance services agreement with Firato Service Company.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
2016 Focus Areas
Enhancing Our Services
REPORT NARRATIVE:
The City has contracted with Firato Service Company for janitorial services at key public facilities since 2014. On June 1, 2016, the Council approved a First Amendment to the original agreement extending the term of the agreement to June 30, 2017 and increasing the agreement’s amount in order to provide needed service improvements at the Centennial Recreation Center and the Aquatics Center (AC). The First Amendment increased the agreement amount to $636,114.
In May 2014, a Budget Decision Package was approved and included in the City’s adopted budget to increase the Aquatics Center janitorial services for the main locker room during the off-season in order to enhance member experience and safety. The cost of the additional janitorial services during the nine month off-season is $9,477 per fiscal year. Although the decision package was approved and implemented beginning in January 2015, the original agreement was inadvertently not amended to increase the total amount of the agreement at that time. The sole purpose of this agenda item is to correct this oversight to align the agreement with the City’s budget and our customers’ service expectations.
If approved, the attached Second Amendment will increase the agreement amount by $18,954 (two fiscal years) to properly account for the increased services that the City has experienced. The new total of the agreement is $655,068 for three years of service at the City’s major recreation facilities.
COMMUNITY ENGAGEMENT: Not Applicable
None
ALTERNATIVE ACTIONS:
The Council could decide not to approve this Agreement Amendment and direct staff to negotiate a reduction in services at the Aquatics Center during the off-season. This is not recommended as the original intent of the FY 14-15 Budget Decision Package was to enhance the member experience at the main locker rooms.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The Council approved the Original Agreement with Firato Service Company on June 4, 2014. The First Amendment to Agreement was approved on June 1, 2016.
FISCAL AND RESOURCE IMPACT:
While the recommended action increases the total amount of the agreement, no budget adjustment is required because the City’s adopted budgets for the past three years have already included the funding for this work. The total increase in the agreement amount will be $18,954, which would cover the additional AC main locker room services for both FY 15-16 and FY 16-17. The revised annual amount for fiscal year 16-17 would be $245,873. The revised total amount of the Firato Service Agreement would be $655,068. The increased costs are already included in the contract service line item in the Aquatics Center Building Maintenance adopted budget. Administering the agreement for janitorial services is included in the work program of the Community Services Department.
CEQA (California Environmental Quality Act):
Categorical Exemption
The maintenance of existing facilities is categorically exempt from the provisions of the California Environmental Quality Act of 1970 pursuant to Section 15301 (Existing Facilities) of the CEQA guidelines
LINKS/ATTACHMENTS:
1. Resolution
2. Second Amendment to the Firato Services Maintenance Service Agreement