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ITEM 3.3 G&K Services uniform and towels contractr. Otsc e F o MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Public Works, Street Department Kevin Lamson, Street Operations January 23, 2017 BACKGROUND/JUSTIFICATION: Manager December of 2015, they also provided floor mat services to the city but that portion of the service was PRESENTER(s): REVIEWED BY: ITEM #: Consent Agenda Adam Flaherty, Interim City 3.3 amount for the Fleet uniforms and clothing allowance line item but staff was unsure during the Administrator the renegotiated weekly rates and the 2018/19 terms of the contract outlined, staff feels confident that AGENDA ITEM DETAILS RECOMMENDATION: Staff recommends renewing our uniform and shop towel contract with G&K Services. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? I Yes No BACKGROUND/JUSTIFICATION: G&K Services has been providing our uniform, roll and shop towel service since 2009. Up until December of 2015, they also provided floor mat services to the city but that portion of the service was cancelled because of the cost of the mat service. Staff purchased our own mats and they have been working very well. We still were in contract with G&K Services until December of 2016 for the uniforms, roll and shop towel service. Staff has been very satisfied with G&K Services for the services they have provided with these items and would like to continue the use of their services. Our current bills from G&K Services are on average about $52 per week and the current proposal from G&K would be about $35 per week. This amount is approximately $350 over the 2017 budgeted amount for the Fleet uniforms and clothing allowance line item but staff was unsure during the budgeting process whether or not we would continue to contract with G&K Services at that point. With the renegotiated weekly rates and the 2018/19 terms of the contract outlined, staff feels confident that continuing our service with G&K Services is a good decision. Staff is recommending that we continue to contract with G&K Services for the uniform, roll and shop towel services for an additional three year term. The Public Works Subcommittee was presented with this information at their January 17th meeting and recommended that it be placed on consent agenda. SUPPORTING DOCUMENTS: x ATTACHED NONE - G&K Services Service Agreement - Estimated price breakdown MOTION: Motion to renew uniform and shop towel contract with G&K Services. BUDGET INFORMATION FUNDING: 101-43240-225 BUDGETED: YES 9 u rA G&K SERVICES 08,1(Address " ;;t.aEOYtCEAGflEFhlErtfttUMDE1t ` >?0k, SERVICE AGREEMENT:rtky, :.> .�:3 CUSTOMER City of Otsego4DO PIIUNENuhleEn ~ G&K SERVICES nnoflrss 13400 90th St. talk River, MN 55330 ThisServlce Agreement, including the terns and conditfonssetforth below and in any attached written addenda, all of whlch are incorporated herelo by this reference (collectively,"Agreemenk"), is entered Into by Customer referenced above and G&KServices, Inc, orone Ofits affiliates orsubsldlarles ('G&K"), G&K agrees to provide the services and merchandise listed in thisAgreement W's Service Guarantee; -G&Kwlll deliver to Customerall merchandlsepkked-up byG&K on a reguladyscheduled delivery day by the nextregularlyscheduled delivoyday; G&K will dean all merchandise using high standards in laundering methods; G&K will inspect, repairand deliver to Customer, on the nextregulaiyscheduled delivery day, all merchandise needing repair thatcan reasonably be repaired; -G&K will deliver to Customer, on thenextregularlyscheduled delivery day, replacementor additional uniforms ordered ofastandard size and color and which areslmilarsizeand color as those in service atCuslomer, provided that G&K receives theorderon a regulardelivery day; -G&K will replace wom-outmerchandiseofastandard Size and color on the nextregularlyscheduled delivery daywith merchandise meeting G&K's high qualitystandards, atno additional charge to Customer, except for merchandise damaged orlostand exceptforgarmentpreparatfon charges; -G&K will revfewwith Customer, Customer's accountforservicesand merchandise as needed orupon request; and -G&K will meetorexceed Customer's needs, and respond to any Customer service requestorconcem within one businessday. 11W fails to satisfy its Service Guarantee with respect to a particular lece ofrunchandise ora spedficsavice, upon recelptof written notice from Customerr. G&K will promptly undertake to cwrectthe failure and issue Customer acreditforthespedficitem(s) orseivice(s) for the applicab,service period. IfG&K consistent( falls tosalisty Its Service Guarantee, Customer agrees to dellverwrRten details ofany Write to G&K. Upon its receipt G&Kwill promptly undertake to correct anysuch failure, and will doss w8hin Ways. IfG&KFalls to correct the spedficlssue(s)within 60days, Customer may terminate this Agreement Ix/ giving wdtten notice of termination within 15 days after the end ofsuch6o-day period, provided all amounts due G&K are paid, G&K'smerchandise Is returned to G&K In good and usable condition (excepting ordinary wear and tear), or repiacementvalue Is paid forall G&K's merchandise that is unretumed or damaged and/or Non-standard Merchandise (as Identified in the table below). MERCHANDISE/SERVICE ITEMS i II ITEM DESCRIPTION F N PERSONS/QTY. PERSONS/QTY CHARGEPER CURRENT UNIT INVENTORY PER ITEM/UNIT SERVICE REPLACEMENTOR NON-STANDARD PERSONATEM PRICE FREQUENCY L05SlDAMRGEVALUE ('� aregularfit F8hopTawolf;-orange Prepamtfon 11 ,60 CI w 28,007-1 Lockers/Soil lockers 1 Nametag 75 ,10 W 50 Rall Towels- blue Emblem 2 3,00 CI w 30100 Roll Towel Cabinet Direct embroidery 1 1.00 w 200,00 Auto replacement (fluff) 96 coMMflns $6 month agroement- prices looked for 12 months, 5% Increase year 2 and 3 $25 weekly stop minimum for rental, AMOUNT AMOUNT AMOUNT Prepamtfon Ouhlze/SpedalSize 961 96 Lockers/Soil lockers 1 Nametag Image Guard y Auto replacement (Wipers) 4 96 Emblem Environmental WWCHRG 961$5 min, Auto replacement(Flat) 96 Direct embroidery Energy CHRG %/$ 5 min, Auto replacement (fluff) 96 This Agreementshall be effective and binding on Customer as of the date of execution by Custome0heinitial term of this Agreementshall be 36months ("Initia)Term") from the date oflnstallation. Following the end ofthe InidafTerm, this Agreementshall renew automatically and continuously for successive periods ofa6months each (each, a"Renewal Term"), unless either partygivesihe other party written notice ofnon-renewal atleast g0 daysprior to the expiration ofthe (nitfalTerm or any f enewaiTerm or otherwise terminates this Agreementas provided herein, —== _ Delivering Uniform Service vi Excellence. - 6&K SERVICES a CONFIDENTIAL