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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE. <br />DECEMBER 15, 2015 <br />TITLE: <br />AGREEMENT AMENDMENT WITH XANADU <br />SERVICE SYSTEM, INC FOR CUSTODIAL <br />SERVICES IN PARK BUILDINGS <br />{STRATEGIC PLAN NO. 6, 1B} <br />� I "') L '�_ <br />CITY MANAGE <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 ®' Reading <br />❑ ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement <br />with Xanadu Service System, Inc. for custodial services in park buildings for $43,638.32, for a <br />term from January 1, 2016 to May 31, 2016, subject to non - substantive changes approved by the <br />City Manager and the City Attorney. <br />DISCUSSION <br />On February 20, 2014 the City issued a request for proposal for custodial services in park <br />restrooms and park buildings. On May 6, 2014, Xanadu Service System, formerly Bell Building <br />Maintenance, was awarded the contract for park restrooms and ABM was awarded the contract <br />for park buildings. On November 2, 2015 the City received a letter from ABM requesting an <br />increase to their monthly compensation to account for the increases in costs that they are facing, <br />including account specific equipment, chemicals, State minimum wages, employer insurance <br />rates, workers compensation and the Affordable Health Care Act. <br />As a result of this request, City Staff reviewed departmental budget information and determined <br />that an increase to the compensation for the vendor is not possible. Therefore staff contacted <br />Xanadu, as they had also submitted a proposal for the contract that ABM was awarded, and <br />negotiated for Xanadu to complete the term of ABM's contract while City Staff issues a new <br />request for proposal. The terms of the negotiation are for Xanadu to perform services at the cost <br />originally proposed plus an additional amount for sites that have been added since the proposal <br />was originally submitted. The difference in cost between ABM and Xanadu is $20,274.55 in <br />savings for the remainder of the original term. <br />2513-1 <br />