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Home My WebLink AboutC33412 - Xtnsn LMA 17 - 917-14 Contract No. C334I2 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE A SECOND ONE-YEAR EXTENSION TO CONTRACT NO. C33410 WITH EXCEL LANDSCAPE, INC., FOR LANDSCAPE MAINTENANCE AREA NO. 17 IN THE AMOUNT OF $235,966.80, AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20 PERCENT, OR $47,193 (PROJECT NO. 917-14) SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works CONTRACTOR: Excel Landscape, Inc. 710 Rimpau Avenue, Suite 108 Corona, CA 92879 DATE: April 27, 2017 CONTENTS: C33412, Second Amendment to Agreement C33410 Letter from Excel Landscape, Inc. Recommendation By Minute Motion: 1. Approve a second one-year extension to Contract No. C33410 with Excel Landscape, Inc., for Landscape Maintenance Area No. 17 in the amount of $235,966.80; 2. Include repair work and services at the specified contract amount not to exceed 20 percent, or $47,193; and 3. Authorize the Mayor to execute the contract. Funds are available in General Fund Account No. 1104610-4332001, R/M Landscape Services, Account No. 1 1 0461 0-43371 00, Tri-Cities Sports Facility, and Account No. 1104611-4332001, R/M Landscape Services. Strategic Plan Objective This is an on-going landscape maintenance function and contributes to our goal of providing a uniquely beautiful desert environment in highly visible areas of the City. Staff Report Approve C33412 with Excel Landscape, 2nd One-Year Extension for LMA 17 Page 2 of 2 April 27, 2017 Background On April 24, 2014, City Council awarded the subject contract to Excel Landscape, Inc., for a term of two years with an option for two, one-year extensions. The contract includes the landscape maintenance of Civic Center Park, Magnesia Falls Park, and the perimeter of City Hall. On April 14, 2016, City Council approved the first extension, which is set to expire June 30, 2017, for the amount of $226,920. Excel Landscape has agreed to a second one-year contract extension commencing July 1, 2017. However, due the state's mandated minimum wage increase and other related costs, they are requesting an increase of 4 percent to help offset the additional costs. Based on Excel's performance, staff finds the request to be reasonable. The request will raise the contract by $756.40 per month ($9,076.80 per year); increasing the contract amount to $19,666.40 per month or $235,966.80 per year. Repair work and services covers unquantifiable activities necessary for landscape maintenance, which are not part of the landscape maintenance contract. This repair work and services includes, but is not limited to, repair and replacement of irrigation equipment; emergency tree work; replacement of trees and shrubs; pest control; and accident and vandalism repair and replacement. Fiscal Analysis This is an on-going maintenance activity with no fiscal impact beyond the contract amount. Prepared By: Dep e t Head: Randy ez, dscape Supervisor Mark G e nwood, .E. Director o ublic Works J M. Moore, Director of Finance Approval: auri Aylaian, City Mana r /bg CONTRACT NO. C33412 SECOND AMENDMENT TO AGREEMENT WHEREAS, the City of Palm Desert ("City") and Excel Landscape, Inc., ("Contractor"), entered into an agreement, dated April 24, 2014, for Landscape Maintenance Area No. 17 ("Agreement"), the parties wish to amend the Agreement effective July 1, 2017. NOW, THEREFORE, the parties agree as follows: A. Term is amended to add the following paragraph to the end of the existing section, as amended. "The term of this Agreement is extended, and shall include the time period from July 1, 2017, through June 30, 2018." B. All other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the 27th day of April 2017. CITY OF PALM DESERT EXCEL LANDSCAPE, INC. A Municipal Corporation Contractor Jan C. Harnik, Mayor City of Palm Desert Attest: Approved as to Content: Rachelle D. Klassen, City Clerk Mark Greenwood, P .E. CITY OF PALM DESERT, CALIFORNIA Director of Public Works Approved as to Form: Robert W. Hargreaves, ESQ. City Attorney CONTRACT NO. C33412 CONTRACTOR NOTARY ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } } SS County of Riverside } On , 20 , before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) F)t6 E L LANDSCAPE 710 Rimpau Ave. Suite 108•Corona,CA 92879-5724 (951)735-9650 Fax(951)735-0469•Lic#694553 To whom it may concern, The State of California has passed new legislation raising the state's minimum wage to $10.50 per hour in January 2017 and $11 in January 2018. The state's minimum wage would then increase an additional $1 per hour each year until reaching $15 in 2022. This annual increase in the state minimum wage also directly affects the state's landscape maintenance prevailing wage scale. Unfortunately, besides the increase in wages, we are faced with increased costs in addition to payroll. These costs include matching the social security contribution, state disability, unemployment, general liability and workers' compensation insurance, which is based upon payroll. As hourly wages increase, so does the dollar amount of labor burden. In addition, an increase in the minimum wage tends to have a "ripple effect" on other workers earning wages near that threshold. This ripple effect occurs when a raise in the minimum wage increases the wage received by workers earning slightly above the minimum wage. The relative value of an employee, whether perceived by the individual employee or by his peers, can be measured in his or her pay rate as compared to the minimum wage. since neither the job duties of the minimum-wage earner nor of the higher-wage earner are likely to change, the pay rate most likely will have to change. The fairly new Affordable Care Act has also had a substantial effect on raising costs for small businesses. Any business with fifty or more employees are now required to offer health insurance to all of their employees. This being said Excel Landscape would respectfully ask that the City of Palm Desert consider applying a 4% increase to the annual contract amount of the LLMD 17 maintenance contract. The annual contract amount for the past three years has been $226,920.00. A 4% increase to the annual contract price of$9,076.80 would make the new contract amount $235,996.80. This increase would help to mitigate some of the unforeseen costs that have been put in place. Thank You, aclM •V agratt0- Excel Landscape