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HomeMy WebLinkAbout13.F.1. Results of Custodial Request for Proposals City of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Results of Custodial RFP DATE: May 13, 2011 Introduction The City Council is asked to consider the results of a recent Request for Proposals (RFP) for custodial services. Background At its March 15 meeting, the City Council authorized staff to issue an RFP for custodial services for the City's seven year -round buildings. The RFP was issued, with responses due back on April 8, 2011. A total of six proposals were received. A complete list of the responding companies and their proposed prices can be found in Attachment A. After reviewing the proposals, three respondents were invited in for interviews with a panel consisting of the Facilities Maintenance Supervisor, Finance Director, a Community Center representative and myself. Since the RFP was issued and the responding companies were interviewed, one of the City's three full - time custodians has submitted a letter of resignation, effective June 1. (Acceptance of this resignation is an action item elsewhere on this agenda.) This leaves us with two full -time and one part -time employee who would be impacted by the elimination of our custodial positions if we were to switch to a contract custodial company. It also leaves us with a fairly urgent need to the address the issue, at least as it relates to the buildings currently cleaned by the employee who has resigned. Benefits The primary benefit of switching to a private custodial company would be the cost savings., The City would no longer be responsible for wages and benefits for full -time employees, for the part -time and fill -in employees who cover weekends and days off, or for the cleaning products and supplies used by our custodians. This includes the purchase of cleaning chemicals, rag and mop service, and purchase, parts and maintenance for equipment such as vacuum cleaners and floor scrubbers; all of which would be the responsibility of the contractor and are included in the price proposals. Wages & Benefits for 3 Full -Time Custodians $ 171,035.19 Wages for Part -time & Fill -in Custodians $ 11,439.00 Supplies & Equipment $ 7,500.00 $ 189,974.19 The annual cost of the recommended custodial company, assuming we made a complete transition of all 7 buildings, would be $108,816, leading to a savings of $81,158.19 per year. Total Cost for In -House Custodians $ 189,974.19 Annual Cost of Recommended Contract $ 108,816. Annual Savings $ 81,158.19 In addition to the direct financial savings, I anticipate several additional benefits. The City's custodial staff was reduced from four to three full -time positions in August of 2009 when a custodian resigned and the City opted not to refill the position for budgetary reasons. One of the steps taken to accommodate this staff reduction was to shift the cleaning of both Fire Stations and the sixth day of cleaning at the Police Station and the Library to our daytime facilities maintenance staff. As a result, one of the City's two Facility Maintenance Workers currently spends approximately 10 hours per week, or 25% of his time, performing custodial duties, which takes away from the time available to address the regular maintenance tasks that compose his job description. The proposal to hire a private company for custodial service would remove the sixth day of cleaning for the Police Station and Library from the weekly tasks of the daytime facilities maintenance worker, thereby freeing up 4 hours per week for other tasks. (For the time being, the City's two fire stations, which are cleaned weekly rather than daily, would continue to be cleaned by daytime facilities staff.) Additionally, daytime staff is often diverted from their regular duties to fill -in for custodians when they use vacation and sick leave. In 2009, there were 89 days when this had to occur. When daytime staff cannot fill -in, the Facilities Maintenance Supervisor often spends significant time searching for fill -in custodians on very short notice. All in all, a move to a contract custodial company is expected to save the City significant money while freeing up time for the Facilities Maintenance Supervisor and two daytime Facilities Maintenance Workers to focus on both regular maintenance projects and special projects such as energy efficiency improvements. Using a contract custodial service is commonplace in many metro -area local governments and appears to be one cost - saving option that we can pick -up by comparing our operations to those of other cities. Additionally, the City utilized a contract service twice in 2010 to cover for extended employee absences and found that with the right company, quality service is available. The decision to eliminate full -time jobs is not one to ever be taken lightly; however, this appears to be an area where the City can meet its needs at a substantially lower cost without negatively impacting the services our residents depend on. Alternatives 1. Direct staff to decline all proposals and begin the hiring process for a new full -time custodian to fill the vacant position. 2. Hire a private company to clean the Community Center and Youth Building, in lieu of hiring a new employee to fill the vacant position. Retain the proposals for further consideration later in the budget process. 3. Offer a voluntary separation incentive (see Attachment 8) to remaining custodial employees who are eligible for retirement at this time. Fill the currently vacant position, as well as any positions that become vacant as a result of the retirement incentive, with a private company, but do not move to lay -off employees that are not ready to go voluntarily. Reconsider the proposals and 2012 funding for any remaining custodial positions later in the budget process. 4. Accept one of the contract custodial proposals in full and move all City buildings to a private custodial company effective July 1, 2011. Offer a retirement incentive to eligible employees and proceed with a lay -off of any remaining employees not accepting or not eligible for the retirement incentive. Recommendation Staff recommends that the Council proceed with option 3 or 4. Option 3 allows the City to start slowly by moving some buildings to a private custodial service now. This will allow us to start realizing a portion of the available savings while also giving us a chance to try out the services of the selected firm. By the time final budget decisions are being made in late August and early September we would have almost two months of experience with the private company, allowing us to make a fully informed decision before completing the transition of all buildings. The downside to this approach is that it leaves us managing a dual system of both a contractor and full -time employees and does not achieve the desired budgetary, management and supervision efficiencies. Option #4 provides the largest cost savings to the City and provides the clearest path forward, rather than trying to do half of one thing and half of another. It would also provide enough cost savings in the remaining months of this year to cover all transition costs, which are estimated at $27,600. (See Attachment C for a detailed listing of transition costs.) A delayed decision to enact lay -offs may lead to transition costs carrying over into the 2012 budget year. While we are not far enough along in the budget process to know exactly how many cuts have to be made to balance the 2012 budget, there is a strong argument for moving forward with cost saving opportunities whenever they present themselves; and at just over $80,000, this would be a substantial cost savings. Recommended Custodial Company If the Council selects an alternative that includes hiring a custodial company for some or all of the City's buildings, the interview panel is recommending that the proposal from Multi- Services be accepted. While theirs is not the absolute lowest price proposal, it would provide us with a very substantial savings. Additionally, we have direct experience with Multi- Services as they were hired by the City twice in 2010 to provide fill -in service during two separate medical leaves. As a result, we have experience working with them and they have experience cleaning the Community Center, Youth Building, City Hall and Library. In addition to our own experience with Multi- Services, they also have experience cleaning a municipal police station. The City of Lakeville currently contracts with them for cleaning their two -year old police station and they gave them very positive reviews. Relationship to Vision This item relates to Goal C: Maintain the City's strong financial health. Requested Action The Council is asked to offer a motion for the desired alternative. If the alternative supported by a majority of the Council includes hiring a custodial company for some or all of the City's facilities, staff will negotiate a specific contract with the vendor and return at the next meeting for Council approval to enter into that contract. Staff would recommend a contract term of July 1, 2011 — December 31, 2013. Attachment A Custodial RFP Responses City Hall Library PD Eng. PW CC Youth Bldg Monthly Annually * RBM $ 715 $ 950 $ 895 $ 475 $ 795 $ 2,495 $ 300 $ 6,625 $ 79,500 * Multi- Services $ 1,046 $ 1,584 $ 1,509 $ 592 $ 649 $ 3,124 $ 564 $ 9,068 $ 108,816 # Perfection Plus $ 995 $ 1,775 $ 1,750 $ 695 $ 840 $ 2,925 $ 487 $ 9,467 $ 113,604 * ROC $ 1,389 $ 1,710 $ 2,138 $ 534 $ 428 $ 3,206 $ 401 $ 9,806 $ 117,669 Brother's $ 1,300 $ 2,100 $ 1,700 $ 800 $ 800 $ 3,700 $ 600 $ 11,000 $ 132,000 Jostan $ 1,255 $ 1,860 $ 2,089 $ 1,295 $ 700 $ 3,624 $ 550 $ 11,373 $ 136,476 * = company was interviewed # = proposal was non - responsive to RFP Attachment B City of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Voluntary Separation Incentive DATE: May 12, 2011 Introduction The following is an overview of the voluntary separation incentive package recommended by staff, should the City Council be interested in making such an offer as part of a workforce reduction in the custodial classification. Background In the spring of 2008, the City Council authorized the offering of a voluntary separation incentive package as a means of reducing the City's workforce. At the time, the incentive consisted of one week of pay for each year of service, up to a maximum of 12 weeks of pay, and a lump sum payment equal to 12 months of employer contribution toward their medical and dental insurance, up to a maximum of $7,500. This incentive was offered to all benefits' eligible, non - probationary employees. If the Council were to again authorize offering a voluntary separation incentive, staff would recommend that it be similar in many ways, but different in a couple of aspects. First, staff would recommend that the City offer a week of pay for every year of service, as was done in the past. Secondly, staff would recommend that the City continue the employer contribution toward the employee's medical and dental insurance for the remainder of the 2011 calendar year, assuming the employee opts for continuation coverage under COBRA. A lump sum payment is no longer recommended due to some tax regulations that have arisen since we last offered a separation incentive, and extending the offer for the remainder of the calendar year makes sense due to the timing and structure of our health insurance's deductible. Unlike the last voluntary separation incentive, staff would recommend that this offer be made solely to full -time employees working as custodians and only to those who are eligible for retirement under PERA. The reason for this is that it would seem to be a disservice to employees who are not eligible for retirement benefits to take an action that would preclude them from collecting unemployment benefits. Because all of the City's custodians are currently at the same pay grade and receiving the same insurance benefits, we can easily estimate the cost of this incentive package at $10,500 per employee. If the Council is considering a specific workforce reduction in the classification of custodian, offering this voluntary separation incentive is beneficial to the City in that it would save the City unemployment insurance costs. Because the incentive is tied to an employee voluntarily resigning their position, employees accepting the incentive would not be eligible to apply for unemployment benefits upon their departure. This saves the City money because we are what is known as a "reimbursing" employer for the purpose of unemployment insurance. This means that rather than pay a regular monthly insurance premium, we reimburse the state if and when a former employee qualifies for unemployment benefits. Therefore, there is a direct and almost immediate cost to the City if we lay -off an employee and they file for unemployment benefits. The City's cost for this voluntary separation incentive would be notably less than the cost of paying out the involuntary separation pay found in our personnel handbook plus reimbursing the state for unemployment insurance benefits. Yet, for certain employees it may be more beneficial. Attachment C Estimated Transition Costs Employee #1— Involuntary Separation Pav + Unemployment Insurance Costs A. Involuntary Separation Pay (Personnel Handbook Chapter IV. Section 1) $5,528.34 =1 week of pay for every year of service ($789.76 per week x 7 years of service) $2,000.00 = Outplacement assistance B. Unemployment Insurance* $9,536.80 = 50% of earnings x 26 weeks * City has a "Reimbursing" account with unemployment, we reimburse the state's costs for standard benefits. Eligibility extensions ordered by the federal government are not reimbursable by the City. SUBTOTAL = $17,065.14 Employee #2 — Recommended Voluntary Separation Incentive $5,528.34 = 1 week of pay for every year of service ($789.76 per week x 7 years of service) $4,993.32 = continued City payment of the Employer share of medical and dental insurance for the remainder of the 2011 calendar year. $0 outplacement assistance $0 unemployment insurance reimbursement costs SUBTOTAL = $10,521.66 TOTAL ESTIMATED TRANSITION COSTS = $27,593.49 City of Shakopee 2011 Custodial Wage & Benefit Costs Hourly Wage $18.34 Annual Equivalent (2080 hrs.) $ 38,149.28 Social Security & Medicare (7.65% of salary) $ 2,918.42 PERA (7.25% of salary) $ 2,765.82 Health (2 -party coverage, high deductible plan) $ 11,043.24 Dental ($36.95 per month) $ 443.40 Life ($4.25 per month) $ 51.00 LTD (0.33% of salary) $ 125.89 HCSP ($25 per month) $ 300.00 Worker's Comp (3.184%) $ 1,214.67 TOTAL $ 57,011.73 x 3 positions $ 171,035.19 r . i_ t MUlti- Services Q Specializing in Building Maintenance 5 n O 70 O (D Q Specializing in Building Maintenance April 4, 2011 CITY OF SHAKOPEE 129 Holmes Street South Shakopee, MN 55379 Attn: Duane Toenyan Dear Duane, Thank you for the opportunity to offer further information on our company. We look forward to offering you a quality cleaning service on a consistent basis. MULTI SERVICES, INC. is in its 36 year as a full service janitorial company offering quality service with 75 employees servicing 3 million square feet of commercial office space. As a mid sized company, and direct involvement from the owners with our customers, we provide fast and efficient service. We take pride in our employees and provide them an incentive based program to do a good job for you our valued customer. Please let me know if you need further information or have questions. Thanks!! MULTI SERVICES, INC. c Michael Neuerbur �. Sales Associate (_ Page 1 of 10 7595 Anagram Drive Eden Prairie, MN, 55344 Phone 952- 944 -4000 Fax 952 - 944 -4086 0 a 0 w m CL CITY OF SHAKOPEE SHAKOPEE DUANE TOENYAN 952- 233 -9352 MINNTECH PLYMOUTH PAUL CARLSON 763 -553 -3300 SHELARD PROPERTIES EDEN PRAIRIE LYNN WYFELLS 952- 215 -3708 LUTHER HOPKINS HONDA HOPKINS CAROLINE GATES 952- 253 -2339 CITY OF LAKEVILLE POLICE LAKEVILLE JOHN KORNMANN 952- 985 -4843 0 0 -o 0 m a MSI's philosophy has been to "Specialize" in the mid sized facilities and do a better job of focusing in on consistency, details, and management than our competition. MULTI SERVICES, INC. operates a professional business structured with the proper depths in management to handle any and all concerns. Our structure is as follows: BY Any time there is an opening in a building, we will utilize support staff multi - trained and experienced. All specialty floor work is handled by the floor specialists. MULTI SERVICES, INC. is operated seven days per week with full access by our customers 24 hours per day. All key personnel carry pagers and cell phones at all times. Regular inspections of all customer facilities are conducted by the owners and reported to the customer in a timely manner. MULTI SERVICES, INC. utilizes mainly full time cleaning personnel and each building serviced has the same cleaning personnel assigned each time. All hiring is done for specific facilities serviced with no "rotation" of personnel which gives our valued customers the desired consistency and quality. Training programs include "hands on", videos, and personal instruction on all use of equipment, chemicals, and techniques. All employees are required to view the "chemical right to know" information and customer relations procedures. Most all personnel hired by MULTI SERVICES, INC. have experience. Our overall philosophy is prompt handling of all customer concerns 0 -o 0 m a • 36 years` of ezperienee�� " x ° � `� x • I'rivatelyeil andperate�das arinesata Ca ar h x • QwneYS ctirecti�oieclily�vith cu5omers anil employees., qg a'e � Owners persatta�ly`'ean�ciuct£�ns �ect�o�ins of alI cu'� tourers facilities ���ners. �er�oaa�l ��terview ana rhire all personnel Thorongh'trauung' rp ram on c7e aduc� a P g� .pent m ?ethods :� Frnanc�al7uieenhves,fQr mg��ly, ©p�r�tloas management �o� a�c�au� retention Total spectrum of service, carpet cleaning, hard -floor refinishing, machine scrub and buffing, window cleaning, and blind cleaning 0 0 0 m a p " FM CITY OF SHAKOPEE — 7 FACILITIES 129 Holmes St. South Shakopee, MN 55379 JANITORIAL SERVICE CONTRACT ein< o A. Shall interview, employ, train, compensate and terminate all cleaning personnel assigned to the building. In the event CITY OF SHAKOPEE determines an MSI employee to be unsatisfactory, CITY OF SHAKOPEE may request MSI to remove said employee. MSI is an independent contractor and is not an agent or employee of CITY OF SHAKOPEE. This means that MSI will be responsible for its operation as an independent contractor and for meeting all legal requirements applicable to MSI. B. MSI shall provide at its expense all cleaning supplies and equipment. MSI can provide paper towels, toilet tissue, wastebasket liners, trash liners, feminine napkins and hand soap AT AN ADDITIONAL FEE IF SO DESIRED. C. MSI shall provide a daily log book for the purpose of communicating concerns and requests from the building contact. D. MSI has a policy of NO SMOKING by its employees during actual working hours in its customer's facilities and prohibit the use of tenant personal property such as telephones. E. MSI shall at its expense carry $2,000,000 in comprehensive General Liability insurance and Workers Compensation insurance in accordance with Minnesota Statute. F. MSI shall follow -up and complete any cleaning complaint within 24 hours after the complaint has been registered. G. All trash shall be removed from the building and placed inside an exterior dumpster or other location designated. TRASH NOT IN THE TRASH CAN OR CLEARLY MARKED TRASH WILL NOT BE THROWN OUT. 0 0 0 0 a m a .....__..__ A. CITY OF SHAKOPEE shall provide adequate storage space with limited access by tenants and building employees. Each floor shall have hot and cold water available. B. CITY OF SHAKOPEE shall provide access to elevators if available. C. CITY OF SHAKOPEE shall not make direct contact with any MSI employee for the purpose of cleaning as an employee of CITY OF SHAKOPEE. A. The monthly service fee for the CITY OF SHAKOPEE buildings for cleaning service rendered in accordance with "Exhibit A" cleaning specs enclosed with this agreement are: City Hall (5 days per week service): $1,046.00 Library: (6 days per week service): $1584.00 Police Station (6 days per week service): $1,509.00 Public Works (5 days per week service): $ 649.00 Engineering Building (5 days per week service): $592.00 Total: $5,380.00 POTENTIAL ADD -ONS Community Center (7 days per week service): $3,124.00 Youth Building (7 days per week service): $ 564.00 Total with ADD -ONS $9,068.00 This agreement will automatically renew itself unless one of the parties gives a thirty day written notice to terminate. B. MSI shall submit invoices for services rendered on the first of the month in which service is being rendered payable by the 25 of same month. A 2% per month finance charge will be charged on all past due invoices. C. MSI reserves the right to discontinue service effective immediately for non - payment of invoices for cleaning services rendered past a period of 60 days from the invoice date. D. Additional Services available through MSI: Light fixture cleaning $15.00/hr. Carpet cleaning $.12psf Hard floor refinishing $.30psf Construction clean-up $35.00/hr. Window washing $15.00/hr. Emergency clean-up $39.00/hr. E. This agreement may be terminated by either party with a thirty day written notice 0 0 0 n� m a Mayor: DATE City Administrator: DATE By: DATE CityClerk: DATE 0 0 -- a 0 w IM m n. a 5s � e x9e4e9ea' c F � 9 ese 9 c�c 9 e 9 e 9 c�' e�� c��t9e9e���e9c� 'c��9 Brute Liners 43x48 $45.00 /case 150 /case Trash Liners 24x33 $41.00 /case 1000 /case Trash Liners tall 33x40 $39.00 /case 250 /case Toilet Paper 96/500 $54.00 /case 500 /case Toilet Paper Ultimatic 2520 $54.00 /case 36 /case.1000sheets Paper Towels C -Folds CB520 $38.00 /case 2400 /case Scott Multi -Fold 1804 $38.00 /case 4000 /case Paper Towels Multi -Fold MB550 $41.00 /case 4000 /case Roll Paper Towels Ultimatic White 2530 $79.00 /case 12 /case Kitchen Roll Towels AC1990 $39.00 /case 15 /case Winning Hands Lotion Soap BT -112 $40.00 /gallon 4 /case Anti- Bacterial Box Soap Cart. 9757 -10 $69.00 /case 10 /case Hand Soap Box Cart. 58501 $58.00 /case 12 /case Wax Napkin Liners AC -260 $32.00 /case 500 /case Sanitary Napkins 147 $49.00 /case 250 /case Tampons TAMPAX $79.00 /case 500 case "Prices subject to change without notice. s n 0 '0 0 m n EXHIBIT "A" CITY OF SHAKOPEE CLEANING SPECIFICATIONS CLEANING TASKS • Empty all outdoor ash receptacles Daily • Empty all waste receptacles and replace liners as needed Daily • Clean all entry glass, both sides inside /outside Daily • Vacuum and dust all entries and vestibules Daily • Spot clean all interior partition glass including doors Daily • Disinfect/clean light switch plates, door frames, knobs, etc. Daily • Disinfect and clean lavatory fixtures and chrome fittings Daily • Clean and service lavatory dispensers, paper, soap sanitary, etc. Daily • Spot clean lavatory walls and partitions including mirrors Daily • Wet mop (using disinfectant) all lavatory floors Daily • Clean and polish all drinking fountains Daily • Sweep, clean and/or damp mop all entry stoops, remove debris in/out Daily_ • Vacuum all traffic lanes (hallways and walkways, inside office areas) Daily • Spot clean carpeting as needed Daily • Damp wipe all meeting, conference, and lunchroom tables and chairs Daily • Clean lunchroom countertops, sinks and appliances Daily • Arrange furniture upon completion of cleaning Daily • Maintain custodial contractors closets neat and orderly Daily • Turn all nonessential equipment and lighting off Daily • Check all doors, and lock as required Daily • Report any mechanical problems to supervisor and supervisor will notify City personnel Daily • Sweep floor and clean edge dust of walking track at community center Daily • Dust mop and remove scuff marks on gym floor at community center Daily • Complete clean/sanitize of ice arena lobby restrooms Daily • Sweep, wet mop, and vacuum around fitness equipment at Community Center Daily • Vacuum all floor mats Daily • Sweep and/or dust mop all non - carpeted floor surfaces Daily • Sweep and/ or vacuum stairwells and landings Daily • Completely clean all glass surfaces Weekly • Dust all office furniture and equipment including desk tops (provided materials have been removed or cleared from the surface), on rotation basis Weekly • Dust all building surfaces within reach (including mini blinds) Weekly • Completely clean and disinfect all tile surfaces (lavatories) Weekl _ • Darn mop all non-carpeted y Damp p arpeted stairwells and landings Weekly • Vacuum all carpeting, under furniture, in all areas, etc. Weekly • Vacuum all upholstered furniture Weekly 0 0 a 0 a co a • Damp wipe vinyl furniture Weekly • Wash lunchroom waste receptacles inside and out Weekly • Wash lavatory waste receptacles inside and out Weekly • Dust ceiling grids, diffusers, return grills as needed Weekly • Pour %2 gallon water down floor drains to prevent sewer gas odors Weekly • Dust all surfaces above reach, pipes, vents, partitions, lights, etc. Monthly • Dust all walls and paneling Monthly • Wash all wastebaskets inside and out on a rotation basis Monthly