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THE CITY OF -�� i°°�° �=� "" CITY COUNCIL AGENDA REPORT �'L�E �S�NTON September 3, 2019 Operations Services TITLE: APPROVE GENERAL FUND BUDGET AMENDEMENT FOR FY 2019/20 AND APPROVE AGREEMENT WITH IMPERIAL MAINTENANCE SERVICES INC. IN THE AMOUNT OF $3,341,316 FOR CUSTODIAL SERVICES SUMMARY The Operations Services Department's Support Services Division manages the agreement for custodial maintenance services of City facilities. There are a total of 27 buildings (approximately 214,000 square feet) and 17 park restrooms that are included in the agreement. The current agreement expires on September 3, 2019. Staff conducted a competitive bidding process for custodial services and received a total of three bids. Margarita's Cleaning &Janitorial Services and Karla's Janitorial Services &Suppliers were disqualified for having irregularities in the submittal materials and being unresponsive to the bid submittal requirements. Imperial Maintenance Services, Inc. was selected as the lowest qualified bidder. The new maintenance service agreement with Imperial Maintenance Services, Inc. is for three years with the option for two additional one-year extensions. RECOMMENDATION Approve an amendment to FY 2019/20 General Fund Budget for $364,944 and approve and authorize the City Manager to execute athree-year maintenance service agreement with Imperial Maintenance Services, Inc. for custodial services and purchasing and delivering consumables with the option for two additional one-year extensions. FINANCIAL STATEMENT Funding for custodial maintenance services is appropriated in the Operations Services Department's Support Services Division budget. The total compensation for the first three years of the agreement is $3,341,316. The contract amount per fiscal year is $940,744 for FY 2019/20, $1,164,988 for FY 2020/21 and $1,235,584 for FY 2021/22. Staff is requesting a budget amendment in the amount of $364,944 from the General Fund reserve balance to help fund the FY 2019/20 for custodial services contract. The new General Fund reserve balance will be $26,457,950, which is 22 percent of the FY 2019/20 General Fund budget including the $364,944 increased budget for custodial services and will meet the minimum reserve policy of 20 percent of operating expenses. There will likely be an opportunity to allocate $364,944 from the FY 2018/19 General Fund year-end surplus to General Fund reserves. Staff expects to bring the FY 2018/19 year-end budget report to Council with proposed allocations of year-end surplus at the November 5, 2019 City Council meeting. 12