Title
[Contract] Integrated Pest Management (IPM) for Structural Pest Control Services (Citywide) with Rentokil North America Inc dba Terminix [Two-Thirds Vote Required]
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FileID
File ID: 2026-00595
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion by two-thirds vote: 1) suspending competitive bidding in the best interest of the city in favor of competitive negotiations with qualified providers; and 2) authorizing the City Manager or designee to execute PRC004187 with Rentokil North America Inc dba Terminix for IPM for Pest Control Services (citywide) for an amount not-to-exceed $950,000 for a term of 5 years and two months.
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Contact
Contact: Stacy Larkin, Contract and Compliance Specialist, (916) 808-5744, slarkin@cityofsacramento.org; Dayana Reyes-Zanaska, Procurement Services Manager, (916) 808-5524, dreyeszanaska@cityofsacramento.org; Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org; Department of Finance
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Agreement
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Description/Analysis
IssueDetail
Issue Detail: The City receives routine IPM services at over 125 City facilities and 38 Parks. The City awarded PRC002185 for facilities and PRC003556 for parks to PestMaster Services. The City was notified by PestMaster on April 1, 2026, that business operations in California are ceasing and both contracts are being cancelled effective April 30, 2026. Given the short notice and complexity of this project, there is not sufficient time to complete a formal solicitation.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code 3.56 regarding contracts for the purchase of nonprofessional services.
Under City Code Section 3.56.230, competitive bidding is not required for contracts of $250,000 or more if the City Council determines on a 2/3 vote that it is in the best interests of the City to suspend competitive bidding.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines Section 15060(c)(3)).
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Sustainability
Sustainability: As a requirement to be considered for award, the contractors are either certified by third parties EcoWise or GreenPro to ensure an environmentally friendly approach to structural pest control. Any chemicals to be used will be reviewed and approved by the City's Facilities and Real Property Superintendent and the City's Water Quality Program Specialist to ensure environmental compliance.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The suspension of competitive bidding can be recommended for various reasons, including the use of alternative methods for contractor selection, such as using the competitive negotiation process wherein the Project Manager negotiates with two or more service providers to obtain a contract for the lowest price.
On December 12, 2022, the City issued RFQ No. Q23061521004, with a due date of January 5, 2023. One hundred and fifty firms were notified of this RFQ through the PlanetBids electronic bidding platform, twenty-eight firms viewed or downloaded the RFQ document, and Statements of Qualifications were received from five firms. The Statements of Qualifications were reviewed to establish a pool of qualified contractors. Four firms met the minimum requirements. PestMaster Services, Rentokil North America Inc dba Terminix, Advanced IPM and Orkin. City Council approved the qualified contractor pool through Motion 2023-0082 on March 28, 2023.
After receiving PestMaster’s notice of termination, staff engaged both Rentokil North America Inc dba Terminix and Advanced IPM in the competitive negotiation process to select the most qualified contractor with the best value for the City. Rentokil North America Inc dba Terminix was determined to be the lowest responsive and responsible bidder. The rates offered by Rentokil North America Inc dba Terminix are 31% lower than Advanced IPM, and staff does not believe the City would get a lower rate through an invitation for bids. In light of the competitive rate offered by Rentokil North America Inc dba Terminix, and the limited notice City received of PestMaster’s termination, staff recommends Council suspend competitive bidding in favor of competitive negotiations and recommends approval of PRC004187 with Rentokil North America Inc dba Terminix to provide IPM for Pest Control Services (citywide).
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FinancialConsiderations
Financial Considerations: Sufficient funding is available in the FY2025/26 operating budgets for the departments requiring this service once the budget is adopted. Purchases made after FY2025/26 are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Rentokil North America Inc dba Terminix is an LBE.
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