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Agenda Item 32.
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| City Council Meeting |
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| Subject: |
| Agreement with UniFirst Corporation for Public Works Uniforms and Related Services |
| RECOMMENDATION |
| Approve Agreement and Authorize City Manager to execute agreement with UniFirst Corporation to provide Public Works uniforms and related services. |
| BACKGROUND/DISCUSSION |
Per Department policy, each full-time and part-time Public Works field employee is required to wear a uniform. In an effort to maintain consistency and suitability of uniforms for the nature of work being performed, the Department has an established practice of purchasing uniforms and arranges for uniform laundering services for its field employees.
The Public Works Department has contracted with various uniform companies over the years to provide uniforms, uniform laundering services, as well as a number of ancillary services such as safety and scraper mats for the City’s Maintenance Yard facility, and shop rags and fender covers for the Fleet Division. Typically, the City has found it cost-effective to enter into multi-year and/or cooperative agreements with companies providing aforementioned services and products.
The uniform agreement currently in place is with the Cintas Corporation. The agreement went into effect July 2015 and was in effect under the National Joint Powers Alliance (NJPA) cooperative pricing through June 2018. Prior to the expiration of the contract, staff began the process of evaluating current services against other market options. In order to provide the City with more time to evaluate other contract options, Cintas agreed to proceed on a month-to-month basis beginning July 2018.
In addition to Cintas, two other uniform companies have been evaluated, Aramark and UniFirst. Of the three companies, UniFirst Corporation rose to the top. They currently participate in a NJPA cooperative pricing contract, which the City has used in the past for a variety of other purchases. Unlike the City’s current uniform provider, UniFirst manufactures some of Public Works’ most commonly used uniform products in-house. This has resulted in significant costs savings to the overall contract.
The current annual contract with Cintas averages approximately $1,667/month year-to-date. Based on UniFirst’s proposal which utilizes NJPC cooperative pricing and has a five-year term, the monthly average is anticipated to be $978. This savings of $689/month translates to an overall cost savings of $41,340 over the duration of the five-year contract term, relative to the City’s current uniform provider.
Staff is recommending that Council approve the agreement with UniFirst Corporation for a not-to-exceed amount of $70,500 over a five (5) year term. This amount assumes an average yearly cost of $14,100 per year with a contingency of $2,360 to cover uniforms for unforeseen staffing variances throughout the year. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| The Finance Committee reviewed staff’s recommendation at their July 10, 2018 meeting and recommended to proceed. |
| FISCAL IMPACT/SUMMARY |
Public Works field employees are required to wear standardized uniforms in the day-to-day performance of their work duties. The Public Works Department contracts with a uniform company to provide uniforms, uniform laundering, and ancillary services. The current uniform agreement with Cintas Corporation is based on NJPA cooperative pricing and expired on June 30, 2018. The City has transitioned to a month-to-month arrangement with Cintas in order to explore other market options.
After evaluating three companies, UniFirst Corporation is being recommended to provide the mentioned uniform services. Based on the cost proposal submitted by UniFirst, the City is anticipated to save approximately $41,340 over the duration of the five-year contract term, relative to the City’s current uniform provider.
Therefore, staff recommends that the City Council approve the agreement and authorize the City Manager to execute the agreement with UniFirst Corporation in the amount of $70,500 over a five year period, approximately $14,100 per year. Sufficient funding for uniforms and related services were budgeted in the FY 2018-19 Public Works Budget and will be included in subsequent operating budgets. Funding is/will be distributed across a variety of funds, according to the Public Works Divisions in which the employees utilizing the uniform and uniform services reside. Funding sources include General Fund (110), CFD (360), Water (420), Sewer (430), Sanitation (440), Equipment and Vehicle Maintenance (480), and Building Occupancy (490). No additional appropriation is necessary. |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Gillian Lobo, Senior Management Analyst
Concurrence: Tony Olmos, P.E., Public Works Director |
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