Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6d
ACTION ITEM
Date of Meeting
October 8, 2019
DATE: September 11, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Susie Archuleta, Real Estate Manager
Melinda Miller, Director, Portfolio and Asset Management
SUBJECT: Pier 66 Janitorial Services Contract
Amount of this request:
$575,000
Total estimated contract
cost:
$575,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a new one-year
contract with four additional one-year options to extend for Pier 66 janitorial services, with a
value up to $575,000.
EXECUTIVE SUMMARY
Pier 66 requires janitorial services for professional cleaning of selected areas along the
waterfront: Harbormaster building, elevators, collection of trash from all Port owned trash
cans along the Alaskan Way waterfront and from Anthony’s Pier 66, and cleaning of the Pier 66
compactor and recycle bays. The existing three-year janitorial contract is expiring in November
2019, so a new janitorial services contract will enable the continuation of these services.
JUSTIFICATION
Best practice in property management includes regularly scheduled janitorial service. Areas of
the various Port owned properties along the Seattle waterfront are highly visible to the public
and frequently visited. To maintain a tidy appearance of the exterior of these Port properties,
janitorial services are required.
Diversity in Contracting
The Port of Seattle is committed to providing the maximum practicable opportunities for
Woman and Minority Business Enterprises (WMBE) to compete for and participate in Port
contracting. Staff has contacted the Diversity in Contracting Department to discuss this contract
and similar contracts. Historically, Pier 66 janitorial service has been provided by a very small
crew, so there are no subcontracting opportunities for this contract. Instead, Staff will
maximize WMBE business outreach efforts within the contract advertisement phase.
COMMISSION AGENDA – Action Item No. 6d Page 2 of 4
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
Specific areas of the Port’s Seattle waterfront properties are highly visible to the public,
including its exterior elevators, pedestrian bridges, and the Pier 66 rooftop deck and plaza.
Roughly 30 exterior garbage cans are located throughout those areas. They require regularly
scheduled janitorial service, primarily in the form of trash collection, seven days a week. In
addition, the Harbormaster office, restroom and shower receive use from Bell Street Marina
customers as well as Port staff and require janitorial service. Lastly, Anthony’s Pier 66
restaurant was constructed without a trash room, requiring its’ sharing of the Pier 66 trash
facilities. Trash from Anthony’s Pier 66 restaurant is transported from the restaurant to the
Pier 66 main building trash bays seven days a week. One of those trips is conducted at
midnight, after the restaurant closes.
The existing janitorial contract provides all of the services described above. This contract is
expiring November 30, 2019. Since the quality of service is critical for these public facing
spaces, structuring the term of the new contract is important. For optimum flexibility, staff
prefers a short initial term followed by options to extend. This term structure will provide the
quickest ability to terminate if the quality of janitorial service is not satisfactory, and also the
ability to extend if the quality of janitorial service is satisfactory. If all available options are
exercised, the cumulative term of the contract would be five years, enabling staff to avoid
additional contracting efforts for that same length of time.
Scope of Work
The Pier 66 janitorial service is provided by a one-person team, seven days a week. Areas
receiving scheduled service are primarily exterior: emptying about 30 exterior trash cans from
the Lenora elevator to the north end of Pier 66. In addition, elevator cabs in the main Pier 66
building as well as the externally facing elevators at either end of the Bell Street pedestrian
bridge and at Lenora Street are serviced. Trash is collected from Anthony’s Pier 66 restaurant
four times a day, seven days a week. The Harbormaster office area and showers are cleaned,
and two restrooms (one in the Harbormaster building and one in the main Pier 66 building) are
cleaned and restocked. In addition to the scheduled service previously described, this contract
provides for ad hoc additional janitorial services with Port pre-approval to address the impacts
of community events, such as Seafair, on the appearance of Port waterfront properties.
Cost Breakdown
This Request
Total Project
Total
$575,000
$575,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Execute a one-year janitorial services contract.
Cost Implications: up to $105,000
Pros:
(1) This is a low-cost alternative.
COMMISSION AGENDA – Action Item No. 6d Page 3 of 4
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
(2) This is the quickest contracting path due to the low contract value, which would avoid
the need for Commission approval.
Cons:
(1) Staff would need to repeat the contract solicitation process in the very near future. A
contracting effort that requires annual contracting is viewed by Staff as onerous.
This is not the recommended alternative.
Alternative 2 – Execute a five-year janitorial services contract.
Cost Implications: up to $575,000
Pros:
(1) This lengthened contract term reduces the frequency of contracting efforts by Port
Staff.
Cons:
(1) This is a higher cost alternative.
(2) If the level of service provided is not satisfactory, the Port will have a very long wait
for the contract expiration and will suffer inferior service in the meantime.
This is not the recommended alternative.
Alternative 3 – Execute a one-year contract with 4 one-year options to extend.
Cost Implications: up to $575,000
Pros:
(1) This contract term structure provides the most flexibility. If the level of service is not
satisfactory, the Port will suffer inferior service for only a few months until contract
expiration. If the level of service is satisfactory, the Port can exercise options to
extend. If each option is exercised, the total term will be five years.
(2) Lengthening the contract term via options to extend reduces the frequency of
contracting efforts by Port staff.
Cons:
(1) This is a higher cost alternative.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$575,000
$575,000
AUTHORIZATION
COMMISSION AGENDA – Action Item No. 6d Page 4 of 4
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Previous authorizations
0
0
0
Current request for authorization
0
$575,000
$575,000
Total authorizations, including this request
0
$575,000
$575,000
Remaining amount to be authorized
$0
$575,000
$575,000
Annual Budget Status and Source of Funds
Janitorial services are budgeted annually as a line item in the Pier 66 Bell Street operating
expense budget and costs are charged to the operating divisions.
Financial Analysis and Summary
Project cost for analysis
$575,000
Business Unit (BU)
Portfolio Management
Effect on business performance
(NOI after depreciation)
The Net Operating Income after the depreciation will
decrease by the annual contracted janitorial service
expense. The first year janitorial service expense for this
contract will be $108K.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
None
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
