CC PACKET 12041996 (2) - Laserfiche WebLink

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e e MEMORANDUM DATE: November 26, 1996 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: COMMUNITY CENTER/CITY HALL - MAINTENANCE CONTRACT I have reviewed the maintenance cleaning bids for the new City Hall/Community Center. The analysis I performed was to compare costs of a cleaning service versus City personnel. Based on my evaluation of the bid opening, the low bidder for cleaning City Hall is Compton's at $47,848. It is relevant to acknowledge that this bid is approximately $9,000 higher than last summers estimated cost of$39,000. • My original analysis indicated that it would require 1 1/2 full time employees to provide cleaning services equal to services performed by the cleaning service. When comparing the estimated costs and the cost for those two employees (including benefits) the cleaning service was the most cost effective between the two options. The analysis was as follows: 1) One full-time employee $ 32,200 (New Hire) 2) 1/2 full-time employee $ 16,100 $ 48,300 3) Estimated cleaning costs $ 39,000 Savings $ 9,300 However, comparing the actual bid for services versus City employees, both options are equal in cost ($48,300 versus $47,848). Therefore, the intangibles of this issue should be addressed to help determine the best direction for the City. They could include: 1) Do we gain better control by having our own employees clean City Hall? 2) What will it cost for cleaning supplies provided by the contract? 3) Will we need to purchase cleaning equipment related to cleaning the building? 4) Additional questions and discussion? • Another issue associated with the increase in cost is the budget. When preparing the 1997 budget, I inflated the original estimate and budgeted $42,000 for cleaning services. Based on actual bids, we need to seek additional revenues to balance this budget.