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HomeMy WebLinkAboutC33742 - Xtnsn Janitorial Svcs - 771-15 Contract No. C33742 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE A SECOND ONE-YEAR EXTENSION TO CONTRACT NO. C33740 WITH DEDICATED BUILDING SERVICES FOR JANITORIAL SERVICES AT CITY FACILITIES, IN THE AMOUNT OF $91,678.20 (PROJECT NO. 771-15) SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works CONTRACTOR: Dedicated Building Services, LLC. 4419 Van Nuys Blvd, Suite 209 Sherman Oaks, CA 91403 DATE: April 27, 2017 CONTENTS: C33742, Second Amendment to Agreement C33740 Letter from Dedicated Building Services, LLC. Recommendation By Minute Motion: 1. Approve a second one-year extension for Contract No. C33740 with Dedicated Building Service, LLC., for janitorial services at City facilities, in the amount of $91,678.20; and 2. Authorize the Mayor to execute the contract. Funds are available in the General Fund Account No. 1104340-4332600, R/M Janitorial, and 5104195-4369800, Henderson Building. Strategic Plan Objective Providing janitorial service to City-owned facilities is an on-going operations function and, as such, does not directly contribute to the objectives of the Strategic Plan. Staff Report Approve C33742 with Dedicated Building Svs, 2nd One-Year Extension April 27, 2017 Page 2 of 2 Background The subject contract was awarded by the City Council to Dedicated Building Services, LLC., on August 28, 2014, for a term of 21 months with an option for two, one-year extensions. This contract includes the daily janitorial services at City Hall, Corporation Yard, and Portola Community Center. On May 12, 2016, the City Council approved the first extension, which is set to expire on June 30, 2017, for the monthly amount of $6,551.05. Change Order No. 1 was approved on November 10, 2016, to include the janitorial services at the Henderson Building, and increased the contract amount to $7,276.05 per month. Dedicated Building Services has agreed to a second one-year extension of the contract commencing July 1, 2017. However, due to the state's mandated minimum wage increase, they are requesting a five percent increase to help offset the additional costs. Dedicated Building Services' performance has met City standards, and staff finds the request to be reasonable. The increase equals $363.80 per month ($4,365.60 per year); raising the contract amount to $7,639.85 per month, or $91,678.20 per year. Fiscal Analysis This is an on-going maintenance activity with no fiscal impact beyond the contract amount. Prepared By: Dep rt Head: e andez Mark G nwood, P.E. ac ties Maintenance Manager Director o Public Works Ja t M. Moore, Director o inance Approval: Lauri Aylaian, City Manager /bg CONTRACT NO. C33742 SECOND AMENDMENT TO AGREEMENT WHEREAS, the City of Palm Desert ("City") and Dedicated Building Services, LLC., ("Contractor"), entered into an agreement, dated August 28, 2014, for City Facilities Janitorial Services ("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. The Amount of the contract will increase by the sum of four thousand three hundred sixty-five dollars and 60/100 ($4,365.60) for a total annual amount of$91,678.20. C. 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 DEDICATED BUILDING SERVICES 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. C33742 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) cw led ca,edser icesusa Lo I April 4, 2017 Mr. Carlos G. Hernandez Facilities Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: Janitorial Contact Extension July 1, 2017 to June 30, 2018 Hi Carlos, Please accept this letter as Dedicated Building Services' desire to extend our current contract with the City of Palm Desert. As you know, our current agreement was submitted in August 2014 and extended last year. On January 1, 2017, we experienced another increase in the California Minimum Wage law from $10.00 to $10.50 per hour, an 5% increase. In addition, there will be another increase January 1, 2018 from $10.50 to $1 1.00 per hour. Therefore, we are requesting an increase of 5% of our current billing of $6,551.05 to a new monthly billing of$6,878.60 for the next fiscal year commencing July 1, 2017. In addition, the Chamber of Commerce building will increase from $725 to $761.25 per month. We appreciate your business and look forward to furthering our partnership with the City of Palm Desert. Cordially, Derek C. Smith Manager