REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute a Facilities Solutions Agreement and Any Other Agreements or Required Actions to Rent Uniforms and Associated Facilities Items, Purchase Uniforms and Facilities Items, and Secure Associated Services from Cintas Corporation Using a Master Agreement with Lead Public Agency Prince William County Public Schools to Other Government Agencies Through Omnia Partners
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Silicon Valley Power (SVP) staff require uniforms to safely perform their work activities. Currently, Cintas Corporation (Cintas) supplies these rental uniforms as well as rental of rugs and mats, sale of items such as fire extinguishers, first aid kits, and rain gear, and associated services, such as, fire extinguisher inspection and maintenance of first aid kits. Staff previously entered into a facilities solutions agreement with Cintas using a cooperative purchasing agreement through OMNIA Partners. OMNIA Partners is an organization that brings together cooperative purchasing contracts for local government agencies. Cooperative purchasing agreements combine procurement requirements and purchasing power of several public agencies resulting in a larger solicitation that results in a more advantageous contract. This process also saves significant time when compared to a stand-alone bidding process because most contract negotiations have already been completed and a lead agency has completed a transparent and open bid, evaluation, and award process. The lead agency for the master agreement for this cooperative purchase is Prince William County Public Schools (Master Agreement).
DISCUSSION
Staff is recommending entering into a new Facilities Solutions Agreement with Cintas for the period beginning April 1, 2024. The Master Agreement is made available through OMNIA Partners and has been competitively solicited and publicly awarded by Prince William County Public Schools, VA serving as the lead government agency. Most terms and conditions are established under the Master Agreement and the Facilities Solutions Agreement addresses terms specific to the City such as high visibility and fire-resistant garments. This recommendation to use the Master Agreement is pursuant to City Code Section 2.105.270(c) which states that the City may, without observing formal bidding requirements, “contract with a vendor under a contract awarded using preestablished cooperative purchasing agreements, when such agreement resulted from a competitive bid process that meets or exceeds the City’s competitive bid process.” The Purchasing Division Manager has determined that the above-mentioned competitive process meets or exceeds the City’s process.
As the need for uniforms and related items are anticipated to exceed $250,000, staff requests approval to negotiate and execute a new Facilities Solutions Agreement for the period beginning April 1, 2024, and ending on October 31, 2027. Staff requests further authorization to extend the Facilities Solutions Agreement, in the event the underlying Master Agreement is extended. Staff is recommending a new facilities solutions agreement instead of extending the existing agreement because Cintas has updated their Facilities Solutions Agreement.
Under the Facilities Solutions Agreement, the City will rent uniforms, mats, and rugs, and the City will also have the option to purchase fire extinguishers, first aid kits, rain gear and other facilities and uniform related items. The City will also have the option to procure from Cintas certain services such as fire extinguisher inspection and maintenance of first aid kits. The pricing for these items and services has already been established under the Master Agreement.
Staff recommends authorization for up to $1,500,000 for all items and services to be procured under the Facilities Solutions Agreement and Master Agreement. SVP’s anticipated need is approximately $300,000 per year.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(2) as the proposed procurement relates to continuous maintenance and administrative activities.
FISCAL IMPACT
Funds are available in Electric Utility Operating Fund budget for FY 2024/25 and FY 2025/26. Funds for future years will be requested through the normal budget process.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute a Facilities Solutions Agreement (Agreement) with Cintas Corporation and execute related documents to rent or purchase uniforms and other items as well as procure services under the Master Agreement with lead public agency Prince William County Public Schools through Omnia Partners and issue related purchase orders up to a total of $1,500,000 for the period of April 1, 2024, through October 31, 2027; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and execute amendments to (a) add or delete services consistent with the scope of services; (b) adjust future rates based on changes to the Omnia Cooperative Purchase Agreement; (c) extend the term to exercise options to extend the term to align with the term of the Master Agreement with lead agency Prince William County Public Schools; and (d) increase the maximum compensation up to $2,000,000, subject to the appropriation of funds and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager