(213) 240-8101
September 2, 1999
Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012
Dear Supervisors:
HOUSEKEEPING SERVICES AGREEMENT AMENDMENT WITH PEDUS BUILDING SERVICES, INC. AT HARBOR/UCLA MEDICAL CENTER (2nd District) (3 Votes)
IT IS RECOMMENDED THAT YOUR BOARD:
Approve and instruct the Director of Health Services, or his designee, to sign the attached Amendment No. 3 to Agreement No. H-202882 with Pedus Building Services, Inc., to extend the term on a month-to-month basis for up to four months, for the continued provision of housekeeping services at Harbor-UCLA Medical Center, effective October 1, 1999 through January 31, 2000, with a total estimated contract cost of $1,414,996, which includes a cost-of-living adjustment of approximately 2% based upon the Consumer Price Index for Urban Areas.
PURPOSE OF RECOMMENDED ACTION:
In approving this action, the Board is authorizing the Director of Health Services, or his designee, to sign an amendment with Pedus Building Services, Inc. (Pedus), to extend the term of the current agreement on a month-to-month basis for up to four months with a total estimated contract cost of $1,414,996, which includes a cost-of-living adjustment (COLA) of approximately 2%, for the continued provision of housekeeping services at Harbor-UCLA Medical Center (H/UCLAMC).
The current agreement is slated to expire on September 30, 1999.
Approval of this amendment will assure the continued provision of housekeeping services at H/UCLAMC pending the Board_s approval and implementation of the County_s new Living Wage Program.
JUSTIFICATION:
The County has been contracting out housekeeping services under the provisions of County Code 2.121.250 et seq., _Contracting with Private Businesses_ (Proposition A) since March 1986. Contracting under Proposition A guidelines continues to be cost-effective and operationally feasible for the provision of housekeeping services at H/UCLAMC. The continued provision of these services is essential.
Honorable Board of Supervisors
September 2, 1999
Page 2
FISCAL IMPACT:
The total cost for housekeeping services for H/UCLAMC for the five year contract was $17,380,135, with an estimated savings of $3,034,937 or 13.7%. The total cost of the services for Amendment No. 1, effective October 1, 1998 through January 31, 1999 was $1,891,705 with estimated savings of $505,258 or 21%. The total cost for Amendment No. 2, effective April 1, 1999 through September 30, 1999, is $1,891,705 with estimated savings of $505,258 or 21%. The total cost for Amendment No. 3, effective October 1, 1999 through January 31, 2000, is $1,414,996 with estimated savings of $182,979 or 11.45% as follows:
County
Avoidable Retained Contract Estimated Savings
Cost Cost Cost Savings Percentage
Five Years $22,153,085 $1,738,013 $17,380,135 $3,034,937 13.7%
Amendment No. 1 $2,396,963 $171,973 $1,719,732 $505,258 21.08%
Amendment No. 2 $2,396,963 $171,973 $1,719,732 $505,258 21.08%
Amendment No. 3 $1,597,975 $128,636 $1,286,360 $182,979 11.45%
The estimated County costs are based upon the County_s staffing pattern which existed at H/UCLAMC when services were originally contracted in 1986. These costs have been updated to reflect changes in the Consumer Price Index (CPI) since June 1994. The contract costs for Amendment No. 3 include a COLA of approximately 2% based upon the CPI for Urban Areas.
FINANCING:
Funding is included in the Fiscal Year 1999-00 Department of Health Services (DHS) Budget.
FACTS AND PROVISIONS/LEGAL REQUIREMENTS:
Housekeeping services include, for example: custodial cleaning, window washing, light fixture cleaning, trash removal, and parking lot sweeping.
On September 21, 1993, the Board approved an agreement with Pedus for the provision of housekeeping services to H/UCLAMC, effective October 1, 1993 through September 30, 1998.
Amendment No. 1 extended the term for six months, from October 1, 1998 through March 31, 1999 to allow the Department additional time to initiate the Request for Proposals (RFP) resolicitation process and also provided the contractor with a 1.6% COLA based upon the CPI for Urban Areas.
Amendment No. 2 extended the term for six months, from April 1, 1999 through September 30, 1999 to allow the Department additional time to complete the review of proposals received during the RFP process.
Honorable Board of Supervisors
September 2, 1999
Page 3
Amendment No. 3 will extend the term for an additional four months, from October 1, 1999 through January 31, 2000, to allow additional time for the Chief Administrative Office (CAO) and County Counsel to finalize and implement the living wage procedures and complete the evaluation of proposals received for the selection of a contractor to provide these services.
The contract includes provisions for the consideration of GAIN program participants for employment by the contractor in the event additional or replacement personnel are required by the contractor during the term of the agreement. Additionally, the contract includes provisions recognizing the contractor_s willingness to consider County employees for employment, the standard provisions covering the County_s Child Support Compliance Program requirements and the new standard provision Notice to Employees Regarding the Federal Earned Income Credit.
This amendment extends the term of the existing agreement; therefore, there is no employee impact.
The term of the agreement will commence on October 1, 1999, and remain in effect through January 31, 2000. The agreement can be terminated at any time by the County with 30 days advance written notice to the contractor.
The contractor will provide basic health coverage to its employees who provide services under this agreement and utilize the COLA to cover the costs of salary adjustments to current staff.
Contract monitoring functions will be performed by H/UCLAMC staff and the DHS Inspection and Audit Division. Monthly walk-through inspections of the facility will be conducted by a County contract monitor and are required for payment on the monthly billings.
The amendment has been approved as to form by County Counsel.
The agreement includes indemnification and insurance provisions approved by the CAO, Risk Management Operations.
Attachments 1 and 2 provide additional information.
CONTRACTING PROCESS:
The RFP process for housekeeping services at H/UCLAMC is currently underway. DHS advertised the RFP on the Office of Small Business_ Countywide Web Site and in local newspapers. The mandatory proposers_ conference and facility walk-through was conducted on February 3, 1999 and February 4, 1999, respectively.
The deadline for the receipt of proposals was March 30, 1999 and proposals were received from six housekeeping service providers who previously attended the mandatory Proposers_ Conference. To date, the evaluation process for the proposals received has been temporarily postponed pending the Board_s approval and implementation of the County_s Living Wage Program.
In the interim, the recommended amendment will extend the term of the current agreement with Pedus on a month-to-month basis for up to four months, pending implementation of the County_s new Living Wage Program. The month-to-month extension includes a 2% COLA and will continue the term of the agreement for a period of up to four months, through January 31, 2000.
As soon as the Board adopts the final Living Wage Program and the CAO and County Counsel issue implementation procedures, the Department will resume the RFP process by allowing the six proposers to retrieve and amend their proposals to address the County_s new Living Wage Program requirements.
Honorable Board of Supervisors
September 2, 1999
Page 4
IMPACT ON CURRENT SERVICES (OR PROJECTS):
Approval of the amendment will assure the continued provision of housekeeping services at H/UCLAMC.
When approved, this Department requires three signed copies of the Board's action.
Respectfully submitted,
Mark Finucane
Director of Health Services
MF:ms
Attachments
c: Chief Administrative Officer
County Counsel
Executive Officer, Board of Supervisors
BLETAIL3.KS
ATTACHMENT 1
SUMMARY OF AGREEMENT
1. Type of Service:
Environmental and custodial housekeeping services at Harbor-UCLA Medical Center.
2. Agency Address and Contact Person:
Pedus Building Services, Inc.
601 Potrero Grande, 3rd Floor
Monterey Park, California 91754
Attention: Don Tucker
Telephone: (323) 837-0222
3. Term:
The term of the current agreement was originally October 1, 1993 through September 30, 1998. Amendment No. 1 extended the term for six months, from October 1, 1998 through January 31, 1999. Amendment No. 2 extended the term for six months, from April 1, 1999 through September 30, 1999. Amendment No. 3 will extend the term for an additional four months, from October 1, 1999 through January 31, 2000.
4. Financial Information:
(See Attachment 2)
5. Program Information:
The agreement provides for housekeeping services, including, for example: custodial cleaning, window washing, light fixture cleaning, trash removal and parking lot sweeping.
6. Approvals:
Operations: Douglas D. Bagley, Acting Assistant Director
Contracts and Grants Division: John H. Ricks, Chief
County Counsel (approval as to form): Elizabeth Friedman, Deputy County Counsel
BLETAIL3.MS
PROPOSITION A CONTRACTING
COMPARISON OF ESTIMATED AVOIDABLE COSTS TO THE COST OF CONTRACTING
(1) County Avoidable Cost was updated by use of Consumers Price Index in accordance with County procedures.