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Home My WebLink AboutCOD-005-03 B , CJate II Leadingt~ REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE &l!l-166 -() :3 Date: April7'h, 2003 Report #: COD-005-03 File# Jfl1 By-law # SUBJECT: JANITORIAL SERVICES CONTRACT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-005-03 be received; 2. THAT the proposal from Hurley Corporation in an annual amount of approximately $139,095.38 plus G.S.T. for janitorial services be accepted; 3. THAT the contract be extended for a second year pending satisfactory pricing and service; 4. THAT funding be provided from the 2003 Operations current budget account for maintenance of the Municipal Administrative Centre and Main Branch Library; and 5. THAT the attached By-law, marked Schedule "A" authorizing the Mayor and Clerk to execute the agreement be approved. Submitted by: A.tzSf::-- rte arano, H.B.Sc., C.M.O. Director of Corp e rvices i -,,",t Reviewed by: /A.-11i5F- Franklin Wu, Chief Administrative Officer 1/ / /- ," / Patricia Enright, Library Director ~ MMIFHIPEILAB\km 1201 REPORT NO.: COD-005-03 Page 2 of 4 BACKGROUND AND COMMENT At the Council meeting of December 9, 2002 in a Confidential Report, Council authorized staff to negotiate with two or three companies for a janitorial services contract for the cleaning of the addition and existing Municipal Administrative Centre. Some of the challenges that are faced with the existing cleaning arrangement are: . Evening meetings . Staff working extended hours . Maintenance staff turnover . Inaeased physical plant maintenance . Staff coverage for vacation and illness As the addition includes 45,000 square feet of additional public and office space, it was decided to undertake a janitorial maintenance program that would be both more effective and efficient to meet the expanded level of responsibility, ODtlon I. Contractlna out the Janitorial Service In accordance with the recommendations approved by Council in the Confidential Report of December 9, 2002, three major cleaning contractors were contacted to come in and meet with staff to review our requirements, with only two companies choosing to participate, The staff review committee consisted of the Director of Operations, the Purchasing Manager, the Clarington Library Director and the Clarington Library Manager of Administrative Services. Initial guidelines for our cleaning requirements were provided to each proponent requesting that they submit a proposal, Proposals were received and reviewed in detail with various components and alternatives being negotiated. The final pricing submitted for consideration by each of the proponents is as follows: PROPONENT Unlco Integrated FacKities Services Toronto ON Hurley Corporation Toronto ON TOTAL BID AMOUNT $111,163,06 + GST $7,781.41 = $118,944.47 Less GST Rebate = $114,498.17 $139,095.38 + GST $9,736.68 = $148,432,06 Less GST Rebate = $142,868,52 Each of the proposals were evaluated on quality control, references, previous experience, overall approach to the contract, interview, financial stability, and pricing. A thorough review of each submission revealed that Hurley Corporation offered a far superior program with respect to Quality Control, number of staff, contract implementation and their approach to Human Resources. References provided by the subject firm include Nortel and the Toronto Airport, In both cases the references have advised that exemplary service has been received and that the subject firm go:s aty, (j~d beyond with respect to meeting quality REPORT NO.: COD-005-03 Page 3 of 4 expectations. In addition, the subject finn is ISO certified and has been awarded the honour of membership in .Canada's 50 Best Managed Companies" for the past three years. The contractor estimates the total number of persons houJS required to perfonn the cleaning to be 632 per month. The proposed contract award is subject to negotiation of satisfactory contract tenns and conditions and is based on an approximate price in order to allow for further negotiation of any other minor issues that may arise, however the total value will not deviate more than 1 %. Advantages: . Fixed fee for two years . All inclusive fees include payroll administration, training, etc, . Dedication to janitorial care . Ongoing formal and documented quality care program . Guaranteed full staff complement Disadvantages: . Staff monitoring of the contact . Public and staff perception ODtlon II. Maintalnina the Janitorial Service in House If the janitorial service was to remain in house, staff is recommending a combination of 3 full time and 2 part time staff to meet the proposed level of service. Staff is estimating the total number of persons hours required to perform the cleaning is 640 hours per month. This estimated number does not indude any supervisory costs since this is part of and included in the overall Operations department staffll1Q budget. Additional costs would include the purchase of equipment (amortized over 3 years), annual cleaning supplies, training, clothing, and personal protective equipment. The costs for the in house contract is estimated for 2003 as follows: Staffing: Equipment I Cleaning Supplies, Training, Operating Supplies Total $162,234,96 $ 27.800,00 $190,034,96 1203 REPORT NO.: COO-Q05-03 Page 4 of 4 This calculation does not include incidental costs, such as additional staff coverage due to sickness, vacations ete, Other internal overhead costs for maintaining the service in house are more difficult to put a dollar figure on such as payroll administration, and administrative costs of adding new employees due to staff turnover, and are not included in the above calculation, Advantages: . Accountability of municipal staff Disadvantages: . Not a fixed cost . Additional Administrative cost for adding new employees due to staff turnover . No formal quality control program (contract is ISO certified) . More expensive . Need to address staff vacation/illness . Ongoing training -legislative requirements Summarv Based on the advantages outlined and the estimated annual savings of $47,166.44 or $94,332.88 for the two year term to contract out versus keeping the operation in house, it is respectfully recommended that services be contracted out and the proposal from Hurley be accepted for a one year contract to commence May 1, 2003 and that the contract be extended for a second year pending satisfactory service, The pricing is firm for the two year period. The implications to the existing Municipality of Clarington staff have been addressed in a memo provided to Council under separate cover. Should Council choose not to endorse contracting out the janitorial services, then approval to fill the required positions is respectfully requested. 1204 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOW MANVILLE, ONTARIO L 1 C 3A6 T(905)623-3379 F (905)623-3330 Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2003- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Hurley Corporation, Toronto, Ontario, to enter into agreement for the Janitorial Services for the Municipal Administrative Centre, Bowmanville, ON, THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, a contract between, Hurley Corporation, of Toronto, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of ,2003. By-law read a third time and finally passed this day of ,2003. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 1205,