City Council Meeting: 07/28/09

Agenda Item: 1-E

To: Mayor and City Council 

From: Joan L. Akins, Director of Community Maintenance

Subject: Extension of Custodial Services Agreement at the Santa Monica Pier

Recommended Action

Staff recommends that the City Council approve an extension to the current month-to-month custodial services agreement with High Tech Building Maintenance at the Santa Monica Pier through June 30, 2010 or until formal bid is awarded with a not to exceed amount of $426,000.

Executive Summary

In May 2009, The Resource Collection, who provided contractual custodial services at the Santa Monica Pier, filed for bankruptcy. To ensure uninterrupted custodial services, the City signed an interim month-to-month agreement with High Tech Building Maintenance. Staff is requesting an extension of the current month-to-month agreement through June 30, 2010 or until formal bid is awarded. Funds in the amount of $343,500 for this interim month-to-month agreement are available in the FY09/10 operating budget. Staff will request a mid-year appropriation in the amount of $82,500.

Background

On March 13, 2007, Council awarded bid#2904 to The Resource Collection for custodial services at the Santa Monica Pier for an amount not to exceed $343,500 for a one year period with two, one-year renewal options and a 30 day cancellation clause. At the end of April 2009, it was brought to the City’s attention that The Resource Collection had not paid its employees since April 8, 2009. On May 6, 2009, the City of Santa Monica informed The Resource Collection that they were in breach of Contract No. 8712 and advised them to immediately cure the breaches of the Agreement or the City would terminate the Agreement. The Resource Collection ceased to provide services and the contractual agreement was terminated.

Discussion

Staff is in the process of revising contract specifications and preparing to go out to formal bid. In order to ensure uninterrupted custodial services at the Santa Monica Pier, staff entered into a month-to-month agreement with High Tech Building Maintenance and is recommending extending the month-to-month agreement until June 30, 2010 or until formal bid is awarded by Council.

Financial Impacts & Budget Actions

The total month-to-month service agreement from July 1, 2009 – June 30, 2010 is estimated not to exceed $426,000. Funds in the amount of $343,500 for this interim month-to-month agreement are available in the FY2009-10 operating budget in account 30582.555010; an additional General Fund appropriation in an amount up to $82,500 will be necessary at mid-year or year-end to address the projected budget shortfall of the increased costs of the operating agreement.

Prepared by: Sybille Moen, Sr. Administrative Analyst

Approved:	Forwarded to Council:
Joan L. Akins Director, Community Maintenance	P. Lamont Ewell City Manager