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Home My WebLink AboutC32622 - Extension - LMA 7 - 907-13Contract No. C32622 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE THE SECOND ONE-YEAR EXTENSION TO CONTRACT NO. C32620 WITH KIRKPATRICK LANDSCAPING SERVICES, INC., FOR LANDSCAPE MAINTENANCE AREA NO. 7 IN THE AMOUNT OF $116,751.72, AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20 PERCENT, OR $23,350 (PROJECT NO. 907-13) 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: C32622, Fourth Amendment to Agreement C32620 Letter from Kirkpatrick Landscaping Services, Inc. Recommendation By Minute Motion: 1. Approve the second one-year extension to Contract No. C32620 with Kirkpatrick Landscaping Services, Inc., for Landscape Maintenance Area No. 7 in the amount of $116,751.72; 2. Include repair work and services at the specified contract amount not to exceed 20 percent, or $23,350; and 3. Authorize the Mayor to execute the amendment. Funds are available in the respective Landscape and Lighting District accounts. 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. Background City Council awarded the original contract to Kirkpatrick Landscaping Services, Inc., on May 9, 2013, for a term of two years with an option for two, one-year extensions. The first Staff Report Approve C32622 for Kirkpatrick Landscaping 2"d One -Year Extension for LMA 7 Page 2 of 2 April 14, 2016 contract extension set to expire on June 30, 2016, was approved on April 23, 2015, for at the annual contract amount of $101,535. Change Order No. 1 reestablished full maintenance to Presidents Plaza East/West, which were reduced on October 23, 2013; increasing the contract to $8,761.25 per month, or $105,135 per year. In conjunction with Carlos Ortega Villas Project, new parkway and roundabout planters were installed along Avenue of the States in the Palm Desert Country Club. Kirkpatrick submitted a cost of $390 per month to add the maintenance of the planters to their schedule. They also 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% increase to help offset the additional costs. In addition, they are requesting an increase to the hourly rates on the additional work pricing schedule. The increase equals $647.53 per month ($7,770.36 per year); raising the contract amount to $9,729.31 per month, or $116,751.72 per year including the maintenance of the new planters on Avenue of the States. 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 replacement costs. Kirkpatrick Landscaping'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 Analvsis This is an on -going maintenance activity with no fisc4ofublic'Works nd the Prepared By: De: Randy Clia� MaPt. Landsc pe Supervisor Dir Paul S. Gibson, Director of Finance Approval: John . Wohlmuth, City Manager ntract amount. CONTRACT NO. C32622 FOURTH 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. 7 ("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 seven hundred seventy dollars and 36/100 ($7,770.36) to help offset the costs of the mandated hourly wage increase and include the maintenance of the new planters on Avenue of the States; a total annual contract price of $116,751.72. C. The Additional Work Pricinq 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. CONTRACT NO. C32622 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 CONTRACT NO. C32622 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) 44I .# OKirkpatrick tt Landscaping Services, Inc Randy Chavez Landscape Supervisor City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Dear Randy, sl•rving the Coachella Valley since 19613 t ui'tI m tol 11, tr 0 1 460 - DIItrr 10110008 1 U 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 $4,598.55 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. It 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 t1Ie1;z;AiL1 :irkhatr'ickla�id5c�ip n �,coifi www.kirkpati-iclilandscaping.coni ADDITIONAL WORK PRICING SCHEDULF 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