Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Tory A. Newman, Director of Public Works
Subject: Amendment to the Agreement with Karla's Janitorial & Suppliers
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing an amendment to the Agreement with Karla's Janitorial & Suppliers for custodial services at various County owned and leased facilities on a month-to-month basis for $45,000 per month, increasing the County’s maximum fiscal obligation by $270,000, for a revised not-to-exceed amount of $2,611,330.32 through April 30, 2027; and
B) Authorizing the Director of Public Works, or designee, to execute amendments that increase the County’s maximum fiscal obligation by up to $80,000 in aggregate, if necessary, for additional locations through April 30, 2027, for a total not-to-exceed amount of up to $2,691,330.32.
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BACKGROUND:
The Department of Public Works (Department) is responsible for providing and managing contract custodial services for County-owned and leased facilities. The Department utilizes contract custodial services for the County facilities that are geographically remote from the available County employee resources.
On September 28, 2021, this Board adopted Resolution No. 078455, authorizing an Agreement with Karla’s Janitorial & Suppliers (Karla’s) for custodial services across outlying County facilities for a not-to-exceed amount of $1,298,980 for a term of October 1, 2021, through September 30, 2024.
As authorized by Resolution No. 078455, the Director of Public Works executed Amendment Nos. 1 and 2 to adjust the facility scopes, increase the not-to-exceed amount to $1,598,980 and extend the term through April 30, 2025.
In January 2025, the Department issued a Request for Proposals (RFP) for custodial services with the intention of presenting an award recommendation by April 30, 2025. However, that item was not considered by the Board.
On April 22, 2025, this Board adopted Resolution No. 081102, authorizing Amendment No. 3 with Karla’s to increase the not-to-exceed amount by $255,610, for a new not-to-exceed amount of
$1,854,590 and extend the term through October 31, 2025.
On June 10, 2025, this Board adopted Resolution No. 081196, authorizing and directing the County Executive Officer, or designee(s), to establish a contracting policy for janitorial service contracts awarded by the County. The policy requires a contractor to attest either that its employees are covered by a collective bargaining agreement or it intends to enter into a collective bargaining agreement. This requirement can be waived in certain circumstances where it is determined that the best interest of the County would be served by a waiver.
On October 21, 2025, this Board adopted Resolution No. 081490, authorizing Amendment No. 4 to the Agreement with Karla’s extending the term through June 30, 2026, and increasing the not-to-exceed amount by $2,179,083.
By authority of Resolution No. 081490, the Director of Public Works executed Amendment No. 5 to increase the not-to-exceed amount by $162,247 and extend the term through October 31, 2026, for a revised not-to-exceed total of $2,341,330.
On July 2, 2026, pursuant to the County’s AB339 policy, the Department notified union representatives of its intent to issue a Request for Proposals (RFP) for custodial services.
On August 14, 2026, pursuant to the County’s AB339 policy, the Department notified union representatives of its intent to amend the Agreement with Karla’s to ensure continuity of services.
On September 24, 2026, the Department met and conferred with the American Federation of State, County and Municipal Employees (AFSCME) representatives, establishing that this six-month bridge extension maintains essential custodial services across active locations while the Request for Proposal (RFP) process is conducted.
The current contract expires on October 31, 2026, and authorized funding will be exhausted by that date.
DISCUSSION:
The Department recommends amending the Agreement with Karla's through April 30, 2027, on a month-to-month basis, to facilitate uninterrupted janitorial services and allow for the time needed for the RFP process and award of a new agreement.
The recommended action will allow for uninterrupted janitorial and building services of outlying County facilities and provide operational flexibility that may be necessary depending on the RFP process and results. The recommended increase in the not-to-exceed amount will allow for the current level of service to continue at a cost of $45,000 per month, plus up to $80,000 in aggregate, for as-needed and additional custodial services. Additional short-term custodial services will be required upon completion of two new facilities - North County Wellness Center in South San Francisco and Mitten Road Offices in Burlingame.
On September 24, 2026, in alignment with Resolution No. 081196 regarding represented workforce standards, the Department engaged with Karla's regarding their union signatory status. Karla's entered discussions with the Service Employees International Union (SEIU) to explore a project-specific collective bargaining agreement covering its custodial workforce assigned to County facilities.
It is the Department’s understanding that SEIU maintained that the contractor must execute a statewide master agreement covering its entire commercial operations across California as a condition of their agreement. Because Karla's was unable to commit to a statewide corporate agreement and SEIU declined to offer a County-specific agreement, the discussions reached an impasse. Under these circumstances, staff recommends a waiver of the County’s collective bargaining requirement under Resolution No. 081196, as a waiver would be in the best interest of the County. Karla’s continues to comply with the County’s Living Wage Ordinance and mandatory contract standards.
The forthcoming RFP will incorporate all updated Board labor policies and wage certifications for prospective bidders.
The County Attorney has reviewed and approved the amendment and resolution as to form
COMMUNITY IMPACT:
The Department’s Building Services Section is committed to providing consistent, high-quality custodial services for County facilities regardless of department, location, or size of the space. The Department’s mission and commitment is to provide custodial services to all our clients. Building Services collects customer feedback regarding the quality of services on a regular basis and are always prepared to address any concerns related to quality of work.
FISCAL IMPACT:
The term of this amendment is from November 1, 2026 through April 30, 2027, on a month-to-month basis. This amendment increases the contract maximum by $270,000 for baseline operations and authorizes up to $80,000 in aggregate for as-needed and interim coverage, for a total cumulative contract amount not-to-exceed $2,691,330.32.
Funding for this amendment is included in the Department of Public Works Approved Budget for FY2026-27 and funding for future fiscal year custodial services will be included in future fiscal year budgets.
There is no additional impact to the General Fund.