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Home My WebLink AboutC32980 and C32980A Holiday Decor ProgramContract No. C32980 C32980A CITY OF PALM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: APPROVAL OF A PROPOSAL BY HOLIDAY LIGHTING DESIGN & DECOR (PALM DESERT, CA), TO MANAGE PHASE ONE OF PALM D€S€RT'S HOLIDAY DECOR PROGRAM (CONTRACT NO. C 32980 ), AND A PROPOSAL BY DEKRA-LITE INDUSTRIES, INC. (SANTA ANA, CA) TO REFURBISH AND DELIVER EXISTING HOLIDAY DECOR INVENTORY (CONTRACT NO. C 32980A ) SUBMITTED BY: Stephen Y. Aryan, Risk Manager DATE: July 11, 2013 CONTENTS: Proposals and Sample Product Photographs Recommendation By Minute Motion: Approve a proposal by Holiday Lighting Design & Decor (Palm Desert, CA) in an amount not to exceed $60,997.40, to manage Phase One of Palm Desert's Holiday Decor Program, per Contract No. C 32980 . 2. Approve a proposal by Dekra-Lite Industries, Inc. (Santa Ana, CA) in the amount of $19,976.76 for the refurbishment of various existing Holiday decor and delivery of all existing decorations (Contract No. C 32980A ). 3. Authorize the City Manager to execute aforementioned contracts related to Phase One of the City's Holiday Lighting and Decoration Program. 4. Appropriate $32,710.16 from the Unobligated General Fund for costs not budgeted in the FY 13-14 budget for Palm Desert's Holiday Decoration Program (Phase One) and transfer to Account No. 110-4310-433-3910. Backaround The City of Palm Desert updated its Holiday Decor Program approximately five years ago when it entered into a contract with Dekra-Lite Industries, Inc. (Santa -Ana, CA). The City's contract with Dekra-Lite recently concluded, and staff was directed to provide recommendations to update the current program, specifically within the El Paseo Business corridor. Holiday Lighting Design & Decor Staff Report July 11, 2013 Page 2 of 3 Staff recently issued an updated Request for Proposals (RFP) for this program and received three responses. The City's current vendor, Dekra-Lite (Santa Ana, CA) submitted a proposal, along with two new vendors, Magical Holiday Designs (Beaumont, CA) and Holiday Lighting Design & Decor (Palm Desert, CA). Each respondent was invited to make a presentation before a City Council subcommittee reviewing this matter. Vendors were graded on a combination of their overall proposal, cost estimate, operational services (installation, removal storage, and maintenance), and local vendor preference. Based on these criteria, the Subcommittee recommended Coachella Valley - based Holiday Lighting Design & Decor (HLD) located near Sun City Palm Desert in unincorporated Riverside County. HLD is a local, full service holiday and special event production company in operation since 1995. Some of their clients include the JW Marriot Desert Springs Resort and Spa, Renaissance Esmeralda, the Hyatt Regency Indian Wells, The Gardens on El Paseo, Sun City Palm Desert, and the City of Rancho Mirage. Staff contacted numerous references and received positive comments on HLD's services. Phase One The City Council is currently requested to approve Phase One of this program which includes the following components: 1. Refurbishment of certain existing holiday decor and delivery of all inventory. One Time Cost (includes tax): $19,976.76 2. Purchase of 29 ornamental garland wraps for El Paseo median street poles, contingent on SCE approval (may be lighted depending on electrical upgrade project's feasibility). One Time Cost (includes tax): $10,022.40 (Unlighted is less $876.96) 3. Annual storage, installation, and removal of decor through 2017 (contingent on City Council budget appropriation annually). Reoccurring Cost: $50,975.00 Phase Two Phase Two involves lighting 25 deciduous trees and 54 palm trees along the El Paseo median and is contingent on updating the median's electrical system. The City's Public Works Department is currently obtaining bids for the capital project of installing electrical outlets. Staff does not recommend purchasing these decor items until a final decision is rendered on this infrastructure project. Staff will take Phase Two of the decor program for the Council's review at the same time the capital improvement project is considered on August 22, 2013. An estimate for Phase Two holiday lighting is an initial investment of $44,541.36 for materials, with and an annual reoccurring installation/removal cost of $26,175.00. Holiday Lighting Design & Decor Staff Report July 11, 2013 Page 3 of 3 When completed, the updated Holiday Decor Program, Phase One and Phase Two, will utilize existing City holiday decorations, as well as the following upgrades: 1. Light strands on approximately 25 deciduous trees and 54 palm trees located on the El Paseo median between Monterey Avenue and Portola Avenue. 2. Snowfall effect lighting on the 25 El Paseo median trees. 3. Ornamental garland wraps on 29 decorative street light poles (may be lighted). 4. Refurbishment of an existing 12 foot wreath used in the annual Holiday Lighting Ceremony. In addition, staff recommends updating various existing d6cor, as these items are over five years in age and show signs of weathering and wear. Fiscal Anaivsis Phase One costs that the City Council is respectfully requested to approve at this time, are estimated not to exceed $80,974.16. There is currently $48,264.00 available within the FY 2013/14 budget for this item. Approval of staffs recommendation requires a $32,710.16 appropriation from the Unobligated General Fund. Approval of Phase One will also require a budget appropriation annually of $50,975.00 for the storage, installation, and removal of holiday lighting and decorations through 2017. CITY COUNCMAQftON APPROVED D0,1411"d Submitted By: RECEIVED OTHER MEET -G D VT`11 _i, (-/ '' Y. a 4101) /-7 AYES: Stephen Y.' Aryan, Risk a ager ARSE . " ABSENT: ABSTAIN: ? Reviewed: VERIFIED BY: ark's Original on File with City Office J. Luis E binoz ant Director of Finance Wohlmuth, City Manager Holiday Lighting Design & Decor A FULL SERVICE HOLIDAY DECOR COMPANY P.O. Box 4596 Palm Desert, CA 92261 Ph: 760-601-6517 Fax: 760-345-1131 Email: hlightingdesign@aol.com Steven Aryan July 1, 2013 Risk Manager REF: Holiday Lighting Design The City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Steven, Thank you for giving Holiday Lighting Design & Decor the opportunity in partnering with the City of Palm Desert for their Holiday 2013 - 2017 presentations, upon approval from City Counsel. Upon approval by City Counsel & the selection of your options for "El Paseo Pole Decorations", I will send you a contract and then submit for all insurance requests from "The City of Palm Desert". Some of our clients include: Desert Springs JW Marriott- Palm Desert Renaissance Esmeralda Hotel & Resort Rancho Las Palmas Hotel & Resort The City of Rancho Mirage The Gardens at El Paseo Morongo Casino Resort & Spa Pala Casino Hotel & Resort Indian Ridge Country Club Moutainview Country Club Sun City Palm Desert Hyatt Grand Champion Resort Indian Wells Hyatt Huntington Beach Hotel The Langham Pasadena Hotel Sheraton Universal Studio Hotel Pechanga Resort & Casino Fantasy Springs Casino Rancho La Quinta Country Club Desert Horizon Country Club Trilogy at La Quinta Rancho Mirage Country Club A classy holiday lighting presentation not only showcases your quality properties for the holidays, but also creates an ambiance of warmth and presence. We look forward in submitting a bid for your Holiday 2013 presentation and bringing your guests the happiest and cheerful holiday in the near future. Sincerely, Marcus Blumberg President Holiday Lighting Design Holiday 2013 - 2017 Proposal Existing City Decor — Pole Decorations — Installation, take down & storage for the following: West Fountain Monument 1. Two (2) 48" Giant Fiberglass Presents 2. Two (2) 48" Giant High Gloss Ornaments 3. One (1) 36" Giant High Glass Ornament 4. Two (2) 36"Giant Fiberglass Presents El Paseo Boulevard - City of Palm Desert Refurbishing of 12 ft. Wreath 5. Ten (10) 24" Grapevine Sphere 6. One White Grapevine Resting Deer 7. One (1) Grapevine Standing Buck 8. One (1) White Grapevine Doe 9. White Grapevine Fawn 10. One (1) 48" Giant High Gloss Ornament 11. One (1) 36" Giant High Gloss Ornament 12. One (1) 24" Giant Fiberglass Present 13. One (1) 48" Giant Fiberglass Present 14. Installation of six (6) 570 mm Double Sided Snowfall Set of 3 &. Fifty (50) warm White LED Mini Lights For Two (2) Deciduous Trees 15. One (1) 9 ft. Holiday Tree East Fountain Monument 16. Two (2) IPS Units 17. One (1) 6 ft. Holiday Tree 18. One (1) 9 ft. Holiday Tree Hiqhwav 111 Pole Mounts 19. Forty-eight (48) 6 ft. Center Mount Candle Wreaths 20. Equipment Cost - $4800.00 Palm Desert Civic Center 21. One (1) 12 ft. Wreath 21 a. Refurbishing & decorating of one (1) client owned 12 ft. wreath with new decor. 22. One (1) 8 ft. Wreath 23. Three (3) 6 ft. Wreaths 24. Five (5) Palm Trees (12 LED mini lights per) 25. Transportation Cost - $2000.00 Total Existing Labor - $32,600.00 25. Storage Cost $12,000.00 Total labor cost - Line items 1 - 24 - $32,600.00 (Includes installation & take down - exisitng) Total storaae cost — Line item #25 - $12,000.00 Total cost - $44,600.00 (Includes installation, take down & storage) Liaht Pole Decor 26. Purchase of 16" x 18 'natural green unlit w/ ornaments garland with two (2) 24" red bows with 42" tails. Product cost per - $220.00 (29 poles) Total product cost - $8468.00 Tax - $677.44 Total product cost - $9145.44 Total labor cost - $6375.00 Total cost - $15,520.44 (Includes installation, maintenance & take down) Or 27. Purchase of 16" x 18 'natural green -lit LED garland decorated with ornaments with two (2) 24" red bows with 42" tails. Product cost per - $320.00 (29 poles) Total product cost - $9280.00 Tax - $742.40 Total product cost - $10,022.40 Total labor cost - $6375.00 Total cost - $16,397.40 (Includes installation, maintenance, & take down) Please note: Importance Maintenance: In the event that any lights need maintenance while installed, Holiday Lighting Design will service replacement of lights within 24 - 48 hours. A staff member will inspect all lighting weekly during the holiday season. All lighting materials should be in 100% condition, prior to the 2013 install. Any further lighting bulb maintenance needs for 2013 once installed, will be replaced by HLD, free of charge. In the event, over the duration of the five (5) year contract, if any tree lights or any LED lights need replacement, Holiday Lighting Design will submit a written or emailed report to the City of Palm Desert by March 1st of each respective year. Warranties: The reoccurring costs for maintenance, cleaning, packaging, installation, removal, and storage of the City's Holiday decorations (existing inventory of holiday lighting/decorations and new pole garland selected option, as identified in Contractor's proposal) shall be for a period from July 11, 2013, through January 15, 2018, subject to an annual budget appropriation by the Palm Desert City Council. The cost shall include routine maintenance and bulb replacement for all lighting and decorations, except due to extreme weather conditions, or malfunctions of decor products and or lighting decorations. Holiday Lighting Design & Decor is not responsible for the condition of "existing" decor and "existing" lighting products owned by the City of Palm Desert, and maintains that the City of Palm Desert will facilitate a transfer all "existing" decor and lighting decorations in good condition. Holiday Lighting Design & Decor does not warranty any "existing" holiday decorations and or lighting decor, received in transfer from previous contractor. Bulb burnouts or electrical damage caused by the client or weather elements, are not covered by this warranty. However, during the time of this service agreement, (June 11, 2013 - January 15, 2018) Holiday Lighting Design & Decor shall provide routine maintenance and bulb replacements. 2013 Payment terms: 50% deposit due July 20th, balance upon installation. 2014 2017 Payment terms: 50% deposit due July 1st of each respective year, balance upon installation. All work would be done to accepted industry standards. The job requires that an appropriate power - supply be provided by The City of Palm Desert to each of the areas to be lit by any of the above Holiday Lighting Design products. We hope you are pleased and look forward in meeting all your holiday needs in the future. Sincerely, Marcus Blumberg President Holiday Lighting Design & Decor hliahtinadesign(cDaol.com *5/► IlDekramLits Eaacoratlart Mxfcvaction 3102 W.Alton Ave. Ph: (714) 436-0705 Santa Ana, CA 92704 Fax: (714) 436-0612 www.dekra-lite.com BILL TO: CITY OF PALM DESERT 73510 FRED WARING DRIVE PALM DESERT CA 92260-2578 PROPOSAL PRP040529 Date 7/1/2013 SHIP TO: CITY OF PALM DESERT 73510 FRED WARING DRIVE PALM DESERT CA 92260-2578 STEVE ARYAN STEVE ARYAN PHONE (760) 346-0611 Ext. 0448 INSTALL DATE FAX (760) 341-6372 Ext. 0000 REMOVAL DATE PO Number Customer ID Salesperson ID Shipping Method Payment Terms Req Ship Date Master No. R PAL021 RS DELIVERY 50/50 9/1/2013 44,071 Ordered Item Number Description UOM Unit Price Ext. Price 1 REFURBISH DECOR Refurbish Ddcor- 24" Fiberglass Present Each $245.00 $245.00 T 4 REFURBISH DECOR Refurbish Ddcor- 36" Fiberglass Present Each $295.00 $1,180.00 T 2 REFURBISH DECOR Refurbish Ddcor- 48" Fiberglass Present Each $345.00 $690.00 T 10 REFURBISH DECOR Refurbish Ddcor- 24" Grapevine Sphere Each $300.00 $3,000.00 T 48 BOWBI36RED45TAIL 36" Red Structural Bow (gold trim) with 45" Tails Each $149.00 $7,152.00 T ***For Wreath*** 1 REFURBISH DECOR Refurbish Ddcor- White Grapevine Buck Each $295.00 $295.00 T 1 REFURBISH DECOR Refurbish Ddcor- White Grapevine Resting Deer Each $295.00 $295.00 T 1 REFURBISH DECOR Refurbish Ddcor- White Grapevine Doe Each $295.00 $295.00 T 1 REFURBISH DECOR Refurbish Ddcor- White Grapevine Fawn Each $195.00 $195.00 T 3 REFURBISH DECOR Refurbish Ddcor- 48" Giant Fiberglass Ornament Each $345.00 $1,035.00 T 6 REFURBISH DECOR Refurbish D6cor- IPS Projection System Each $40.00 $240.00 T 1 DELIVERY Delivery of customer owned Ddcor Each $3,875.00 $3,875.00 T Please Sign and Fax to 714-436-0612 Subtotal $18,497.00 Tax $1,479.76 Freight Total $19,976.76 50% DEPOSIT DUE UPON ACCEPTANCE OF PROPOSAL $10,728.26 BALANCE AMOUNT DUE UPON INSTALLATION OR DELIVERY $9,248.50 *a a -Lk an work will be lunar b req M not aCtaptad wltMn data, tM prdposa{ nwy be withdrawn. prwky.Lf W Acceptenee or propoaat The Indvkival sipn4n9 01 % tontratt accepts the aboVs Proposal and CerWW to Mkro-Lf o that he a she Is augwr to anhr into Of Contract on b~ of Owner. Property Dwnar. Authwizod Apant� Date. ev, fo Joe 4 6 . :. it r. Klassen, Rachelle From: TERRYPROD@aol.com Sent: Saturday, July 06, 2013 11:06 AM To: Klassen, Rachelle Subject: Holiday lighting RE: Dekra-Lighting Industries Dear Mrs. Klassen (City Clerk of Palm Desert)) I am sending this request for this letter to be submitted into the agenda for the July 11th , 2013 council meeting , since I can not make the board meeting on the 11 th of July. I am requesting the city to not approve the proposal of Holiday Lighting Design if they can't give us a better bid. I see that contract #C32980 in the posted agenda STATES IT COULD BY AS MUCH AS $60,997.40 just for phase one of the holiday decor program. So, I am assuming there are even more costs also. Could the council elaborate on this so the minutes reflect this . What other phases are we the taxpayers paying for at the holiday time? Last year, on July 12, 2012 , I inquired about Dekra-Lighting of Santa Ana being a vendor that is not located in the city and that the bill was a very high amount. At that time Mayor Spiegel told me that the contract was up this year 2013. The minutes from last year states that the city contracted with them because the equipment was purchased from them. Also, I don't understand why aren't we storing and installing the Christmas decorations when either our current city employees or hiring some temporary employees could do this. And why are we Davina more refurbishment/delivery to Dekra-Lite costs . ($19.976.76) #contract 328980 A. If anything , we should be paying a moving cost that is very minimal to get the decorations back here to the city. If they have been keeping it in storage and installing the decorations, why would it be damaged after or more additional parts needing to be bought after we just paid them last year. (look below) Last year the labor alone totaled $48,264.00 and a one time refurbishment of existing decor and purchase of new decor items for $17.936.53 in 2012. (account 110-4300-413-4040) Motion carried by 5-0 vote Thank you, Terry Wood Palm Desert 0 C 3C-)� r' r—rn i 0mo GD '^ rn m -«� Z cn cry C) D e's Mo