Item 1.5 - Award of Agreement to UniFirst Corporation 001111.141141.� of nod; APPROVED •
�p City of Poway APPROVED AS AMENDED ❑
(SEE MINUTES)
�""` COUNCIL AGENDA REPORT DENIED ❑
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CONTINUED
RESOLUTION NO.
DATE: February 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Troy Bankston, P.E., Director of Public Works f-5
CONTACT: Michael Obermiller, P.E., Assistant Director of Public Works
mobermiller(c�poway.orq
SUBJECT: Award of Agreement to UniFirst Corporation for
Uniform, Laundry and Related Services
Summary:
The City seeks to procure uniform, laundry and related services (e.g. mop and towel
rental). The City is a member of National Joint Powers Alliance (NJPA), a public agency
that develops cooperative purchasing agreements and shares them with its members
nationwide. NJPA awarded an agreement for uniform services and related products to
UniFirst Corporation (UniFirst) through an open and competitive bidding process.
For efficiency and optimal pricing, it is recommended that the City enter into an agreement
with UniFirst through the procurement agreement with NJPA. Poway Municipal Code
Section 3.28.110 authorizes the City to participate in cooperative purchasing agreements
as an economical alternative to the bidding process.
Recommended Action:
It is recommended that the City Council award the agreement for uniform, laundry and
related services to UniFirst Corporation through the NJPA cooperative purchasing
program, appropriate funds, and authorize the City Manager to execute any necessary
documents.
Discussion:
The City's current service provider for uniform, laundry and related services (e.g. mop
and towel rental) has provided deficient service, and has failed to meet City standards.
The City is a member of two national cooperative purchasing programs, including The
National Joint Powers Association (NJPA), which offers a cooperative purchasing
agreement for these services. Staff obtained quotes and interviewed two companies with
current agreements through nationally bid services. Staff finds UniFirst Corporation
(UniFirst) to be qualified to provide the quality of products and level of customer service
required by the City. Staff also contacted the references provided by UniFirst and made
a site visit to their local facility.
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Award Uniform, Laundry and Related Services
February 21, 2017
Page 2
Section 3.28.110 of the Poway Municipal Code permits participation in cooperative
purchasing programs for the procurement of supplies, services and equipment when the
administering agency has made its purchase in a competitive manner. Use of such
cooperative agreements allows for a streamlined and effective procurement of needed
services and establishes agreements with vendors currently on an existing multiple award
schedule.
Staff recommends that the City enter into an agreement with UniFirst, and discontinue
uniform service with the current provider. The scope of services contained in the UniFirst
agreement meets the requirements of the City. The UniFirst agreement has been
reviewed by the City Attorney, and UniFirst has agreed to specific amendments requested
by the City.
UniFirst's pricing for rental and laundering is approximately $420 per week ($21,840
annually), compared to $281 per week ($14,612 annually) under the agreement with our
current provider. Although rental and laundering charges are higher, their replacement
charges for uniform pieces are significantly lower than what the City pays under the
agreement with the current provider. It should be noted that the current service provider's
charges have not been increased since the initial award of contract in February 2014;
pricing likely would have increased if the City opted to continue service with them.
The City is obligated per the Memorandum of Understanding (MOU) to provide uniforms
to employees for safety and operational effectiveness in the field, and obligated to provide
mats and mops for safety and operational effectiveness at the gymnasiums and City
buildings. The recommendation to switch to UniFirst is based on the critical need to have
dependable service, i.e. timely delivery of new uniforms, no missing uniform pieces or
mops, accurate tracking of inventory, and accurate billing. Since UniFirst's agreement
was awarded through a Request for Proposal (RFP) competitive solicitation, staff
considers the pricing to be competitive and reasonable.
The term of the Agreement shall be three (3) years (the "Initial Term") beginning on the
Commencement Date. The Agreement can be renewed for not more than two (2)
additional one (1) year extended terms (each an "Extended Term"). Amendments to
Agreements are also subject to City Council appropriation of funds.
Upon approval of the agreement, measurements will be scheduled and the uniform orders
will be placed. The timeframe for receiving new uniforms is four to six weeks (the industry
standard). To maintain continuity of service to our uniformed employees and to City
facilities, and prevent disruptions to City operations, staff recommends an overlap of
service between the outgoing and incoming service providers, which is expected to be
two to four weeks.
The rental and laundry charges from the outgoing service provider will diminish as
uniforms are turned in, and the budget savings will be applied toward the new rental and
laundry billings, which will begin in April. Staff recommends an appropriation of additional
funds to cover the remaining cost differential through the end of this fiscal year (April-
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Award Uniform, Laundry and Related Services
February 21, 2017
Page 3
June). The annual cost under the new agreement will be approximately $21,840 and will
be incorporated into each department's FY 2017-18 budget request.
Environmental Review:
This action is not subject to California Environmental Quality Act review.
Fiscal Impact:
This action will authorize appropriations totaling $1,600 from the following source fund
balances to be allocated among the following division budgets:
Source Fund Budget Division
Water (510) 0401, 0402, 0404, 0406, 0410 acct. 4928
Sewer (520) 0405 acct. 4928
Gas Tax (211) 0411 acct. 4928
Drainage (231) 0412 acct. 4928
General (100) 0417, 0418, 0419, 0202, 0204 acct. 4928
General (100) 0419 acct. 4120
Cap Repl Rev (611) 0413 acct. 4928
LMD Admin (261) 0420 acct. 4928
Public Notification:
A copy of this report was sent to UniFirst Corporation
Attachments:
A. A copy of the complete agreement is available for review at the City Clerk's
office.
Reviewed/Approved By: Reviewed By: App ved By:
Wendy Kaserman Morgan Foley Tina M. White
Assistant City Manager City Attorney City Manager
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