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BACKGROUND The City of Pleasanton's population is just over 75,000 within approximately 24 square miles. Within the City's boundaries are: • 327 miles of water mains with 22,016 service connections ® 217 miles of roads • Over 100 publicly maintained buildings • Over 1,200 acres of managed parkland and recreational open space It is not always practical or cost effective for City staff to perform certain maintenance functions that are essential to keep the City in good operating order. Out-sourcing certain services and contracting with specific trades has proven to be a cost effective solution when cost assessments determine that the work can be provided at a lower rate by contractors and in some cases where City staff does not have specific trade expertise. The City funds these services through its operating budget for miscellaneous repairs from outside contractors when City staff cannot perform the work. For example, when City-owned facilities require exterior painting, there are painters on contract with the City under "As Needed" contracts. Staff would then contact a contractor, provide a scope of service to them and request a quote for services. Based on the contractor's availability and pricing, staff would then authorize the work to begin. Additionally, routine maintenance services are also provided on City equipment, such as HVAC systems, fire station rollup doors, and pest control services under "As Needed" contracts. As part of the bid process, all "As Needed" contractors provided rates, product mark up and their Department of Industrial Relations (DIR) number. In addition, as a condition of the Agreement, each contractor will provide the required certificates of insurance and a City of Pleasanton business license number. This process allows for staff to authorize the work and to have it completed in a much timelier manner then formally bidding each small project. For all projects over $25,000, staff will solicit multiple proposals from vendors in that specific trade to obtain the best possible price by the most qualified contractor. Page 2 of 4