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HomeMy WebLinkAboutC33871 - 1yr Xtnsn FY 16-17 - Janitorial SvcsCITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: APPROVE AND EXECUTE A ONE YEAR EXTENSION TO CONTRACT NO. C33870 WITH DEDICATED BUILDING SERVICES, LLC TO PERFORM JANITORIAL SERVICES FOR THE CITY OF PALM DESERT PARKVIEW OFFICE COMPLEX FOR TWELVE MONTHS IN THE AMOUNT OF $76,890 ($6,407.50 PER MONTH). (CONTRACT NO. C33871) SUBMITTED BY: THOMAS METZ, DEPUTY CITY TREASURER APPLICANT: DEDICATED BUILDING SERVICES, LLC 11338 MOORPARK STREET STUDIO CITY, CA 91602 ATTN: MR. DEREK C. SMITH DATE: JUNE 30, 2016 CONTENTS: JANITORIAL SERVICE AGREEMENT (Contract C33870) DEDICATED REQUEST TO EXTEND Recommendation By Minute Motion, approve and execute one-year extension of contract C33870 with Dedicated Building Services, LLC to perform janitorial services at the City of Palm Desert Parkview Office Complex for Fiscal Year 2016-17 in the amount of $76,890 ($6,407.50 per month). Strategic Plan Obiective Not Applicable Background The City of Palm Desert's Parkview Office Complex is responsible to provide janitorial services for all the gross lease tenants, namely all the State of California Offices, and the common areas of both buildings. The janitor is responsible for providing the basic cleaning services and providing all the paper goods, soaps, cleaning agents, and lighting supplies for the common areas and the gross lease tenants. The cost of the janitorial services is recovered through the Common Area Maintenance (CAM) charges to the tenants. The cost of the janitorial services for the State of California tenants is factored into their rental rate. The current contract with dedicated business services allows for two one-year options to extend the current contract. This is the first extension. The employees of Dedicated Building Services, LLC are residents of the Coachella Valley. Staff Report Dedicated Building Services, LLC June 23, 2016 Page 2 of 2 Staff requests that the City Council approve and execute C33870 between Dedicated Building Services, LLC and janitorial services at the Parkview Office Complex buildings. Fiscal Analysis the one-year extension of Contract the City of Palm Desert to provide The total cost of the contract is $76,890.00, or $6,407.50 per month. The new monthly contract price is $582.50 more than the current contract of $5,825. The increase in price is in response to the increased minimum wage anticipated in January 2016 along with additional costs to provide services. 100% of the cost of this contract is allocated to each space at the Parkview Office Complex and recovered through the lease payments from all the tenants. No appropriation is required; funds are available in Fund 510. Submitted By: uUma'd, (a - "&,2, Thomas Metz, D uty City T&asurer Approval: \ L� ,tin McCarthy, Interim Cit ger :ah:nmo Reviewed by: anet . Moore, Director of Finance G:\Finance\Niamh Ortega\Parkview\Staff reports\SR - Janitorial Svc - Extend contract FY 1617 - Dedicated Bldg Svcs.doc CONTRACT NO. C33871 AMENDMENT TO AGREEMENT WHEREAS, the City of Palm Desert ("City") and Dedicated Building Services, LLC ("Contractor"), entered into an Agreement, Contract No. C33870, dated August 28, 2014, to provide janitorial services at the City -owned facilities at 73710 and 73720 Fred Waring Drive, Palm Desert ("Agreement"), the parties wish to amend the Agreement effective June 30, 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 period from July 1, 2016, through June 30, 2017." B. CITY'S OBLIGATIONS is amended to add the following paragraph to the end of the existing section as amended. "For the period of July 1, 2016 through June 30, 2017, CITY will pay and CONTRACTOR shall receive the total sum of Six thousand four hundred seven dollars and fifty cents ($6,407.50) per month, and total contract shall not exceed Seventv six thousand eight hundred ninetv dollars ($76,890.00) for twelve months. 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 30th day of June, 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 DEDICATED BUILDING SERVICES, LLC DEREK C. SMITH, PRINCIPAL APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP C33870 AGREEMENT FOR JANITORIAL SERVICES FOR CITY OF PALM DESERT PARKVIEW OFFICE COMPLEX THIS AGREEMENT is made and entered into the City of Palm Desert on August 28, 2014, by and between THE CITY OF PALM DESERT, a municipal corporation, hereinafter referred to as "CITY", and DEDICATED BUILDING SERVICES, LLC referred to as "CONTRACTOR" to provide janitorial services at the following City owned facilities- 73- 710 Fred Waring ❑rive, and 73-720 Fred Waring Drive. WITNESSETH: RECITALS: CONTRACTOR has submitted to CITY" its Contractor's Bid for the project listed above, CITY OF PALM DESERT PARKVIEW OFFICE COMPLEX JANITORIAL SERVICES, CONTRACT NO. C33870, in strict accordance with the Contract Documents identified below, CITY has accepted said Bid. 2. CONTRACTOR states that it has re-examined its CONTRACTOR'S Bid and found it to be correct, has ascertained that its Subcontractors are properly licensed and bonded and possess the requisite skill and forces, has examined the site and Contract in accordance with the Contract Documents for the money set forth in its Bid to be paid as provided in the Contract Documents. ITCI:1: 9 : Ikv,IAM IT IS AGREED BY THE PARTIES AS FOLLOWS: TERM. The term of this Agreement shall be from date of execution of this instrument through June 30, 2016 for a maximum of Twenty-one (21) months, or to such later date as may be agreed in writing between parties. City has the option of twice extending the contract for one year (12 months), based on the performance of the Contractor and by mutual agreement. 2. CITY'S OBLIGATIONS. For furnishing services, as specified in this Agreement, CITY will pay and CONTRACTOR shall receive in full compensation, therefore the total sum of Five Thousand Eiaht Hundred Twenty Five dollars ($ 5,825) per month as billed on a per -item monthly basis as set forth in the Contract Documents and adopted by the CITY. Total contract shall not exceed One -Hundred Twenty two thousand three hundred twenty five dollars ($122,325,00) for Twenty-one (21) months. 3. CONTRACTOR'S OBLIGATION. For, and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by CITY, CONTRACTOR agrees with CITY to furnish the services and to do everything required by this Agreement and the contract documents. Page 19 of 45 C33870 4. HOLD HARMLESS AND INDEMNIFICATION. CONTRACTOR agrees to defend, indemnify, and hold harmless The City of Palm Desert, its officials, officers, employees, representatives, and agents from and against all claims lawsuits, liabilities or damages of whatsoever nature arising out of our connection with, or relating in any manner to, any act or omission of CONTRACTOR, his agents, employees, subcontractors and employees thereof in connection with, the performance or non-performance of this Agreement. The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the CITY and do whatever is necessary to protect the City of Palm Desert, its official, officers, employees, agents, and representatives as to any such claims, lawsuits, liabilities or damages. 5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing, signed by the CONTRACTOR and approved by the City Council of the CITY. 6. TERMINATION. If, during the term of this Agreement, CITY determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein, CITY may notify CONTRACTOR in writing of such defect or failure to perform; which notice must give CONTRACTOR a three-day notice of time thereafter in which to perform said work or cure the deficiency. If CONTRACTOR fails to perform said work or cure the deficiency within the three (3) days specified in the notice, such shall constitute a breach of this Agreement and CITY may terminate this Agreement immediately by written notice to CONTRACTOR to said effect. Thereafter, except as otherwise set forth herein, neither party shall have any further duties, obligations, responsibilities, or rights under this Agreement except, however, any and all obligation of CONTRACTOR's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination hereof. In said event, CONTRACTOR shall be entitled to the reasonable value of its services performed from the beginning of the period in which the breach occurs up to the day it received CITY's Notice of Termination, minus any offset from such payment representing the CITY's damages from such breach. CITY reserves the right to delay any such payment until completion of confirmed abandonment of the project, as may be determined in the CITY's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall CONTRACTOR be entitled to receive in excess of the compensation quoted in its bid. The City Council may terminate the contract with 30 days written notice for any reason. 7. CONTRACT DOCUMENTS: The entire contract consists of the following: (a) The Agreement; (b) The Notice Inviting Bids; (c) The Instruction to Bidders; (d) The Contractor's Bid; (e) The Bidder's Bond; (f) The Performance Bond; (g) The General Terms and Conditions; (h) The Specific Terms and Conditions; (i) The Standard Specifications as modified in other portions of the Contract Documents; 0) Addenda Nos. none; (k) Any Change Orders issued; (n) Any additional or supplemental specifications, notices, instructions and drawings issued in Page 20 of 45 C33870 accordance with the provisions of the Contract Documents. All of said Documents presently in existence are by this reference incorporated herein as if here set forth in full and upon the proper issuance of their documents they shall likewise be deemed incorporated. 8. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by this reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 9. ANTI -DISCRIMINATION. In the performance of the terms of this Agreement, CONTRACTOR agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of any person because of the age, race, color, sex, national origin or ancestry, or religion of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735. 10. AUDIT. CITY shall have the option of inspecting and/or auditing all records and other written material used by CONTRACTOR in preparing its statements to CITY as a condition precedent to any payment to CONTRACTOR. 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail, return receipt requested, addressed as follows: Finance Director CONTRACTOR CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, CA 92260 12. LITIGATION COSTS. In the event an action is filed by either party to enforce any rights or obligations under this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and court costs, in addition to any other relief granted by the court. 13. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and CONTRACTOR do warrant that each individual executing this Agreement on behalf of each party is a person duly authorized. 14. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes contractor's certification that he is aware of the provisions of said Code and will comply with them; and further constitutes Contractor's certification as follows: Page 21 of 45 C33870 "I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for worker's compensation or to undertake self insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract." IN WITNESS WHEREOF the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement which shall be deemed an original on the date first above written. CONTRACTOR: BY: Signature to be notarized TITLE: CITY: BY: Signature to be notarized TITLE: Mavor of Palm Desert. CA APPROVED AS TO CONTENT: PAUL S. GIBSON, FINANCE DIRECTOR/CITY TREASURER ATTEST BY: TITLE: ATTEST BY: TITLE: Citv Clerk of Palm Desert. CA APPROVED AS TO FORM: DAVID J. ERWIN CITY ATTORNEY Page 22 of 45 C33870 CONTRACTOR ACKNOWLEDGMENT State of California ) ) SS. County of 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 Page 23 of 45 (seal) City of Palm Desert Parkview Office Complex Listing of gross lease tenants and conference room space requiring janitorial services Address: 73-710 Fred Waring Drive (Two Story Building) Suite Approximate No. Square footage Use 102 2,288 * Quasi-GovernmentTenant 105 540 * Conference Room 108 758 * State Tenant 112 1,100 State Tenant 115 1,100 * Conference Room 116 500 * State Tenant 119 1,380 * Conference Room 208 1,104 * State Tenant 211 937 * State Tenant 222 3,304 Riverside County Supervisor This Building has two men's and two ladies restrooms Address: 73-720 Fred Waring Drive (Single Story Building) Suite Approximate No. Square footage Use 100 15,233 * State Tenant 102 4,396 * State Tenant This Building has one men's and one ladies restrooms EXHIBIT "B" 45 OF 45 11111 DEDICATED a U� '. J' N O SERVICES April 27, 2016 Mr. Anthony Hernandez Senior Financial Analyst City of Palm Desert 73-710 Fred Waring Drive Palm Desert, CA 92260 RE: Parkview Janitorial Contact Extension - July 1, 2016 to June 30, 2017 Hi Anthony, 4 V A V n�SIihd SLiIiC ��4 Sherman Oak CA 91401 Phone (818171'-4i1,2 ha\ i8',8;'--1--1 1)S w\\\% dedtcatedservtcesusa coin 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. Since then, there has been a substantial increase in the California Minimum Wage law from $9.00 to $10.00 per hour, an 11 % increase. In addition, the state now mandates that every employee must have three (3) paid sick days per year which is another one percent increase. Therefore, we are requesting an increase of 10% of our current billing of $5,825.00 to a new monthly billing of $6,407.50 for the next fiscal year commencing July 1, 2016. We appreciate your business and look forward to furthering our partnership with the City of Palm Desert. Cordially, Derek C. Smith Manager