Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
June 26, 2018
DATE: April 30, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Nick Milos, Manager, Corporate Facilities
Dave McFadden, Managing Director, Economic Development Division
SUBJECT: Janitorial Services for Pier 69
Amount of this request:
$1,200,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract for janitorial
services at Pier 69 with Northwest Center (NWC), for an estimated value of $1,200,000 over a
five-year period.
EXECUTIVE SUMMARY
The Revised Code of Washington (RCW), chapter 39.23, encourages municipalities to purchase
services provided by sheltered workshops that serve the handicapped and disadvantaged. NWC
is a local sheltered workshop that has provided excellent janitorial services at Pier 69 since
2008.
A continued partnership with NWC would provide the Port with high quality, competitively
priced janitorial services, and would support the Century Agenda and Port organizational
strategies.
The contract would be for one-year with four renewal options. The initial term of the contract
would be 8/1/2018 – 7/31/2019.
JUSTIFICATION
NWC’s mission is “to promote the growth, development and independence of people with
disabilities through programs of therapy, education and work opportunity.” They are a local
leader in advancing equal opportunities for children and adults with disabilities. Their
employment services include transition services, vocational training, job placement, and
supported employment.
COMMISSION AGENDA – Action Item No. _8c___ Page 2 of 3
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
RCW 39.23 allows municipalities to support sheltered workshops by directly negotiating a “fair
market price… as determined by a municipality.” Payment of prevailing wages is a requirement
for janitorial contracts.
Along with supporting the handicapped and disadvantaged in our community, continuing with
NWC would support Strategy 4 of the Century Agenda: Greenest, and Most Energy Efficient
Port. NWC would continue to make exclusive use of Green Seal-certified commercial cleaning
products; they would continue to play a key role in diverting waste from landfills; and some of
the workflow would be organized in a manner that allows for sequenced switching of lights to
reduce electricity consumption.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Seek competitive bids for janitorial services at Pier 69.
Cost Implications: Estimated first year cost between $200,000 and $230,000. Five year cost
estimate between $1,060,000 and $1,225,000.
Pros:
(1) Would provide a competitive opportunity for janitorial companies, including
Women/Minority Business Enterprises (WMBE) and other disadvantaged businesses.
(2) The competitive process may result in slightly lower cleaning costs.
Cons:
(1) Would cease supporting the handicapped and disadvantaged through the NWC
sheltered workshop.
This is not the recommended alternative.
Alternative 2 – Negotiate and execute a new contract with NWC, consistent with RCW 39.23.
Cost Implications: Estimated first year cost of $224,000. Five year cost estimate of $1,200,000.
Pros:
(1) Would continue to support the handicapped and disadvantaged through the NWC
sheltered workshop.
(2) Would provide janitorial services at a fair market price.
Cons:
(1) Would not provide a competitive opportunity to janitorial companies.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. _8c___ Page 3 of 3
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
NWC contract
$0
$1,200,000
$1,200,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
$1,200,000
$1,200,000
Total authorizations, including this request
0
$1,200,000
$1,200,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Janitorial services are budgeted annually as a line item in the Pier 69 Facilities Management
operating expense budget and costs are allocated to the operating divisions.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 9, 2013 – The Commission authorized a five-year contract with NWC.
