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 the award of a citywide requirements contract to Vestis Services, LLC, of Fresno, California for the purchase of uniform and linen services through a cooperative purchase agreement for three years with three optional one-year extensions in an amount not to exceed $450,000 per year with annual CPI increases not to exceed 4% starting in 2028 (Bid File 9694) (Citywide) ..Body RECOMMENDATION Staff recommends Council approve the award of a citywide requirements contract to Vestis Services, LLC, of Fresno, California for the purchase of uniform and linen services through a cooperative purchase agreement for three years with three optional one-year extensions in an amount not to exceed $450,000 per year with annual CPI increases not to exceed 4% starting in 2028. EXECUTIVE SUMMARY The General Services Department, Purchasing Division, is recommending the approval of a cooperative purchase agreement (CPA) with Vestis Services, LLC, for uniform and linen services to be used citywide. The cooperative purchase agreement will be authorized through a competitively solicited cooperative procurement process administered by Sourcewell (a State of Minnesota local government agency). Vestis Services LLC was awarded a contract via Sourcewell RFP# 011124, which went into effect March 20, 2024. As part of the cooperative agreement, the cost for uniform and linen services matches rates paid in the current fiscal year and there shall be no price increases until April 1, 2028, after which is subject to annual CPI increases not to exceed 4%. BACKGROUND The General Services Department, Purchasing Division, is responsible for administering the citywide agreement for uniform and linen services. As part of this requirements contract, the City provides uniforms to its employees using a cost-sharing model as per the citywide uniform program as outlined in Administrative Order 3-6. Administrative Order 3-6 Uniform Program establishes the cost-sharing requirements for uniforms, including rental fees, laundering, and related expenses. Under this policy, the total program cost is split evenly between the City and the employee, with the employee's share deducted directly from their paycheck. The uniform and linen services will be purchased through a competitively solicited cooperative purchase agreement administered by Sourcewell (a State of Minnesota local government agency). In 2024, General Services initially requested proposals for uniform and linen services. General Services received one proposal which was 79% higher than the City's current contracted rates. This proposal was ultimately rejected by Council on February 27, 2025. As a result of the unsuccessful procurement, General Services has determined the cooperative purchase agreement is the most cost-effective method and overall best value for obtaining uniform and linen services for the City. The cost for uniform and linen services matches rates paid in the current fiscal year and there shall be no price increases until April 1, 2028, after which is subject to annual CPI increases not to exceed 4%. Therefore, there is no additional cost to employees or city for uniforms until 2028. 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 is not applicable. The City is not issuing a request for proposals for the cooperative purchase agreement. FISCAL IMPACT The funding has been included in each departments' line-item budget as part of the FY2025 adopted budget to cover the cost of uniform and linen services. Attachments: Draft Cooperative Purchase Agreement Sourcewell Vestis Services LLC Contract# 011124 Sourcewell Original RFP Sourcewell Proof of Publication Sourcewell Proposal Opening Record Sourcewell Comment and Review