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Home My WebLink AboutC32602 - Extension- LMA 2 - 902-13Contract No. C32602 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE THE SECOND ONE-YEAR EXTENSION TO CONTRACT NO. C32600 WITH KIRKPATRICK LANDSCAPING SERVICES, INC., FOR LANDSCAPE MAINTENANCE AREA NO. 2 IN THE AMOUNT OF $120,160.56, AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20 PERCENT, OR $24,032 (PROJECT NO. 902-13) SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works CONTRACTOR: Kirkpatrick Landscaping Services, Inc. 43-752 Jackson Street Indio, CA 92201 DATE: April 14, 2016 CONTENTS: C32602, Third Amendment to Agreement C32600 Letter from Kirkpatrick Landscaping Services, Inc. Recommendation By Minute Motion: 1. Approve the second one-year extension to Contract No. C32600 with Kirkpatrick Landscaping Services, Inc., for Landscape Maintenance Area No. 2 in the amount of $120,160.56; 2. Include repair work and services at the specified contract amount not to exceed 20 percent, or $24,032; and 3. Authorize the Mayor to execute the amendment. Funds are available in the Account No. 1104614-4337001, R/M Medians. Strategic Plan Obiective 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 C32602 for Kirkpatrick Landscaping 2"d One -Year Extension for LMA 2 Page 2 of 2 April 14, 2016 Background City Council awarded the original contract to Kirkpatrick Landscaping Services, Inc., on May 9, 2013, for a term of two years with the option for two, one-year extensions. Amendment No. 1 was approved on June 26, 2014, to increase the contract amount due to the mandated minimum wage increase that went into effect July 1, 2014. On April 23, 2015, City Council approved Amendment No. 2, the first one-year contract extension set to expire on June 30, 2016, at the annual contract price of $112,163.28. Kirkpatrick Landscaping has agreed to the second one-year extension commencing July 1, 2016; however, due to the mandated minimum wage increase of $1.00 per hour that went into effect January 1, 2016, they are requesting a 7.13 percent increase to help offset the additional costs. The increase equals $666.44 per month ($7,997.28 per year), raising the contract price to $10,013.38 per month, or $120,160.56 per year. Kirkpatrick is also requesting the addition of an Irrigator Tech to the additional work pricing schedule at the rate of $42 per hour, along with an increase to the hourly labor rates and the replacement costs. Kirkpatrick's performance has met City standards and staff finds both requests to be reasonable. 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: 4 Randy Gfalez v Landscape Supervisor O�4� Paul S. Gibson, Director of Finance Approval: /,�_04 1.11W,zI,w. `John Wohlmuth, City Manager I I I CONTRACT NO. C32602 THIRD AMENDMENT TO AGREEMENT WHEREAS, the City of Palm Desert ("City") and Kirkpatrick Landscaping, Inc., ("Contractor"), entered into an agreement, dated May 9, 2013, to provide landscape maintenance services for Landscape Maintenance Area No. 2 ("Agreement'), the parties wish to amend the Agreement effective July 1, 2016. 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, 2016, through June 30, 2017." B. The Amount of the contract will increase by the sum of seven thousand nine hundred ninety-seven dollars and 28/100 ($7,997.28) to help offset the costs of the mandated hourly wage increase; a total annual contract price of $120,160.56. C. The Additional Work Pricina Schedule will include an Irrigator Tech and the hourly labor rates and plant material and installation replacement costs will be increased to the following: Hourly Labor Rates Additional Laborer $22.00 per hour Additional Irrigator $26.00 per hour Additional Foreman $28.00 per hour Additional Irrigator Tech $42.00 per hour Plant Material and Installation Replacement Cost 1 gallon shrub $ 11.50 5 gallon shrub $ 23.50 15 gallon tree $116.00 24 inch box tree $315.00 D. All other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect. Page 1 of 3 CONTRACT NO. C32602 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the 14th day of April 2016. CITY OF PALM DESERT A Municipal Corporation Robert A. Spiegel, Mayor City of Palm Desert Attest: Rachelle D. Klassen, City Clerk CITY OF PALM DESERT, CALIFORNIA Approved as to Form: Robert W. Hargreaves, ESQ. City Attorney KIRKPATRICK LANDSCAPING SERVICES Contractor Approved as to Content: Mark Greenwood, P E. Director of Public Works Page 2 of 3 CONTRACT NO. C32602 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) Page 3 of 3 Kirkpatrick Landscaping Services, Inc. Randy Chavez Landscape Supervisor City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Dear Randy, Serving the Coachella Valle} Since 1908 1 ont[.0 lur 1,10t SO 93011 • D110 10000083 it March 22. 2016 We wish to take this opportunity to thank you and the City of Palm Desert for engaging our services over the past 16 years. Most recently for areas 2 and 7. We highly value our relationship with the City. At this time, we are compelled to address the minimum wage increase. This is mandated by the State effective January 1, 2016. The Increase of $1.00 per hour, plus burden, i.e, employers taxes, Social Security, Workers Compensation, etc. increases payroll costs by approximately 16.36%. The net result is an increase of 7.13% to recurring operating costs. The total for area 2 shall go from $112,163.28 to $120,160.52 annually ($10,013.38 monthly) and area 7 shall go from $8,691.78 per month plus new maintenance area for $390.00 per month to $9,729.31 per month or $116,751.72 annually. We are estimating 4,368 hours annually for area 2. At $1.00 per hour, the total is $5,082.60 (including burden). Ancillary costs are estimated at $2,914.64. We are estimating 3,952 hours annually for area 7. At $1.00 per hour, the total is $4,S98.55 including burden). Ancillary costs are estimated at $2,838.14. Ancillary costs include our best estimate of the increases in insurance and fuel costs. We have also attached a list of extra work items that we shall be asking for an increase on as well. If there is a way the City can help us offset this cost it would be greatly appreciated. It would also afford us the opportunity to avoid cutting back on labor to cover this additional expense. Again, it is our goal to continue to be a good value for the City. We feel the intimate business association we have enjoyed over the years can continue to prove mutually beneficial. Sincerely, Steve, e al / Enc. 43-752 Jackson Street, Indio, CA. 92201 Office: 760.347.6926 • Fax: 760.347.4846 n)ek;�tn�ul_<irkh;itlichlandsc�l4�i.r�;.iurn www.kirkpatricklandscaping.com ADDITIONAL WORK PRICING SCHEDULE Landscape Maintenance Areas 2 and 7 City of Palm Desert Contractor• Kirkpatrick Landscaping Services, Inc. Hourly Labor Rates Additional Laborer - $22.00 Additional Irrigator - $26.00 Irrigator Tech $42.00 Additional Foreman — $28.00 Plant Material and Installation Replacement Cost 1 gallon shrub - $11.50 5 gallon shrub - $23.50 15 gallon tree - $116.00 24 inch box tree - $315.00