REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MELISSA PERALES, Purchasing Manager
General Services Department, Purchasing Division
SUBJECT
Title
Approve an increase to the citywide custodial services Requirements Contract with ScrubCan, Inc. of Fresno, California in the total amount of $605,000 per year, for a revised annual total amount not-to-exceed $3,005,000 for the remainder of the contract term plus annual CPI and PPI increases, to provide custodial services of parking facilities beginning January 2026 and account for future unforeseen custodial needs citywide moving forward (Bid File 9669)
Body
RECOMMENDATION
Staff recommends Council approve an increase to the citywide custodial Requirements Contract with ScrubCan, Inc. of Fresno, California in the total amount of $605,000 per year, for a revised annual total amount not-to-exceed $3,005,000 for the remainder of the contract term plus annual CPI and PPI increases, to provide custodial services of parking facilities beginning January 2026 and account for future unforeseen custodial needs citywide moving forward.
EXECUTIVE SUMMARY
On April 24, 2025, Council approved a contract with ScrubCan for $2,400,000 per year for three years with two optional one-year extensions to provide Citywide custodial services. In accordance with Resolution 2018-075, individual amendments which exceed 1% of the total agreement price or $100,000 (whichever is greater) and multiple amendments which aggregate more than 10% of the agreement price shall be subject to prior authorization from the City Council.
Custodial services of City parking facilities will transition from ACE Parking Management in January 2026 to this citywide Requirements Contract at an annual cost of $530,000. This increase necessitates a revised not-to-exceed annual contract ceiling. The rate for custodial services under this contract is 7.83% less in comparison to the cost billed by ACE Parking Management.
As future increases to this agreement are subject to Council approval per Resolution 2018-075, General Services has included $75,000 in annual spending authority to quickly respond to unforeseen Department requests for added custodial services during the remainder of the contract duration.
Staff recommends increasing the contract by $605,000 per year for the remaining contract term and any extensions, resulting in a total annual not-to-exceed amount of $3,005,000, plus annual CPI and PPI increases. This increase will ensure sufficient authority to address unforeseen custodial needs citywide.
BACKGROUND
A Notice Inviting Proposals was advertised on August 8, 2024 and posted on the City’s website. Nine proposals were received by the October 1, 2024 deadline. A Selection Committee determined ScrubCan, Inc. provided the best value to provide Citywide custodial services and recommended an award.
On April 24, 2025, Council approved a contract with ScrubCan, Inc. for $2,400,000 per year for three years with two optional one-year extensions to provide Citywide custodial services.
Since the award, additional custodial services have been requested to support the City’s needs as follows:
1. Planning and Development, Parking Division, requests to add custodial services for City parking facilities beginning in January 2026 at an estimated annual cost of $530,000. Custodial services are currently provided under an agreement for parking management services with ACE Parking Management. When the agreement expires in January 2026, the Parking Division will begin self-management of the City’s parking facilities. As a result, custodial services provided under ACE Parking Management will transition to this citywide contract.
The custodial services will be comparable to those provided by ACE Parking Management. The rate for custodial services under this contract is 7.83% less in comparison to the rates billed by ACE Parking Management. The estimated annual cost is $530,000, which is 7.83% less than ACE Parking Management’s current annual rate of $575,000. Approval of this item will result in an estimated annual savings of more than $45,000 for custodial services at the City’s parking garages and lots.
2. As future increases to this agreement are subject to Council approval per Resolution 2018-075, General Services has included $75,000 in annual spending authority to quickly respond to unforeseen Department requests for added custodial services during the remainder of the contract duration. If custodial needs arise, each Department will be responsible for identifying funding within their adopted budget to fund additional services.
A summary of the original contract amount and requested changes is as follows:
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Original annual contract amount: |
$2,400,000 |
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Custodial services for City parking facilities: |
$530,000 |
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Unforeseen future custodial needs: |
$75,000 |
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Subtotal of Requested Increases |
$605,000 |
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Total revised annual contract amount: |
$3,005,000 |
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Approval of this increase will grant the General Services Department with the spending authority to provide custodial services up to the maximum annual amount as listed above.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was considered during the original award. ScrubCan, Inc. is a local business as defined in the Fresno Municipal Code.
FISCAL IMPACT
The funding has been included in each departments’ line-item budget as part of the FY2026 adopted budget to cover the cost of custodial services.
The cost of custodial services for the City’s parking facilities beginning in January 2026 is estimated at $221,000 through the end of FY2026 and sufficient appropriations exist within the adopted Planning and Development budget for this expense. The estimated annual cost thereafter is $530,000, which is within the Planning and Development’s FY2026 line-item budget for custodial services of parking facilities, subject to Council approval in future fiscal years.