2012 2:00:00 PM

Monday, October 8, 2012 2:00 PM
Sparks Legislative Building, 745 E. 4th Street, Sparks, NV 89431

Consent Items: 5.6

Title: Consideration, discussion and possible ratification of staff action to terminate Contract #C-1289 for Janitorial Services between the City of Sparks and Jani-King of Reno (Bid #11/12-008)

Petitioner/Presenter: Dan Marran, Contracts and Risk Manager and Ron Korman, Fleet & Facilities Manager/Dan Marran, Contracts and Risk Manager and Ron Korman, Fleet & Facilities Manager

Recommendation: Ratify the determination of City Staff to immediately terminate the contract with Jani-King of Reno for Janitorial Services.

Financial Impact: Replacement of the contractor will result in costs to temporarily backfill services until a new bid may be issued and awarded.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: Due to circumstances concerning the employment practices of the contractor, it became necessary to terminate the services offered by this vendor. The City Council, as the original awarding body for this contract, has the ultimate responsibility to formally terminate the agreement.

Background: On December 12, 2011, the City Council awarded Contract #C-1289 to Jani-King of Reno in response to their bid submittal on City of Sparks Bid #11/12-008 to provide janitorial services to multiple City facilities. The contractor has performed the contract in a manner requiring rigorous over-site and contract management by City staff that has exceeded expectations and consumed more resources than hoped. This circumstance was leading staff to the decision to re-bid the contract at the end of the initial 1-year term, rather than exercising any options to extend. However, problems that occurred in the month of August forced an immediate termination of the contract.

Analysis: At some time during the week of August 6, 2012, City-owned equipment (I-Pad) was stolen from the office of the City Clerk. Once reported, City staff were able to remotely erase data as well as locate the equipment, using on-board applications available in Apple products. The item was ultimately recovered at the home of one of the janitorial staff members employed by Jani-King. This individual was arrested and charged with the theft. The theft, as a standalone incident, is not necessarily cause for termination of the contract as it reflects the unauthorized actions of an individual employee and not the firm as a whole. However, while witnessing court proceedings against this individual on 9/12/12, it was determined that the employee was not legally permitted to live or work in the United States. The sentencing included a deportation order due to that circumstance. Employment of individuals that are not legally eligible to live or work in the United States is a violation of local, State and Federal law. Per the City bid documents for this contract (General Conditions, Item 52): “Lawful Performance: Vendor shall abide by all Federal, State and Local Laws, Ordinances, Regulations, and Statutes as may be related to the performance of duties under this agreement.” The City can not knowingly employ contractors who violate the law in this regard. A termination letter stating these facts (attached) was sent to the contractor on September 17, 2012, instructing them to discontinue service immediately and they followed this direction on September 18, 2012. City staff is immediately backfilling this void using a contractor already contracted to clean other facilities that has previously cleaned the affected sites. This will continue on a month-to-month basis until a plan is devised for the total scope of the next janitorial bid.

Alternatives: 1) The City Council may ratify the determination of staff to terminate the referenced contract. 2) The City Council may direct that the original contract be reinstated through the remainder of the contract term.

Recommended Motion: I move to ratify the determination of staff to immediately terminate Contract #C-1289 between the City of Sparks and Jani-King of Reno.

Attached Files:

Jani-King Term Letter-FINAL.pdf

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