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HomeMy WebLinkAboutC32600 - CA1 - LMA2 - 902-13DINAH SHORE DR PARK VIE Iu 4> 1- - z w >- w. w z ce 1- 0 2 GERALD FORD DR 174% if - - 77W 11,4,41 bi -1 mat -7111f; -11.111F171. gito:C pUNTRY CLUB DR Spill.% ett .11 MAGNESIA FALLS DR > > ,.: rco ,u.,.........< ., .. z iowil - --.-,:.:°:L.,.., : . . 4 , .. l • 7:, 7.: 71:1111I.*' 400 lo .11 ii i iiIII4,-"A' II 1-11111 dil V. ;1,.., - ,. r. •• „,;;;!il .. 7 a ,!, IP ', • . — — z; 44 . — r , . • iwily;:: '" . * •::::::::: TN.:, o o •:::::::.., ...-..... Z liniNag ', FAIRWAY DR ,zi.i.,:, (#)' GRAPE"' E ST6'<> II WA 111 k' ' — ' . ' ' ' . FRED WARING DR HWY 111 Contract No. C32600 LANDSCAPE AREA 2 LEGEND LMA 2 riPalm Desert Parcels City Boundary I I 1 INCH = 4.500 FEET Issommirtil 111111111 HMI 111111111 111111111W FRED WARING DR FEBRUARY 2013 Contract No. C32600 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE CONTRACT AMENDMENT NO. 1 TO INCREASE CONTRACT NO. C32600 WITH KIRKPATRICK LANDSCAPING, INC., BY THE AMOUNT OF $8,183.28 AND APPROPRIATE FUNDS FROM UNOBLIGATED GENERAL FUNDS FOR LANDSCAPE MAINTENANCE AREA 2 (PROJECT NO. 902-13) SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: June 26, 2014 CONTENTS: Kirkpatrick Landscaping, Inc., Letter of Request Contract Amendment No. 1 Vicinity Map Recommendation By Minute Motion: 1. Approve Contract Amendment No. 1 to increase Contract No. C32600 with Kirkpatrick Landscaping, Inc., in the amount of $8,183.28 for Landscape Maintenance Area 2; 2. Appropriate $8,183.28 from Unobligated General Funds to Account No. 110-4614-453-3370; and 3. Authorize the Mayor to execute Contract Amendment No. 1. Backqround On May 9, 2013, City Council awarded Contract No. C32600 for Landscape Maintenance Area 2 to Kirkpatrick Landscaping. This is a two year contract that commenced on July 1, 2013, in the amount $207,960.00 for a period of two years ($103,980.00 per year). On July 1, 2014, which is the middle of the contract term, the state mandated minimum wage will increase by $1.00 per hour. On May 30, 2014, Kirkpatrick Landscaping submitted a letter requesting an increase for the final year of the contract to compensate them for this state mandated increase. The requested increase equals $681.94 per month ($8,183.28 per year), and will raise the monthly contract cost to $9,346.94 for the Staff Repo� Contract No. C32600 Amend C32600 for LMA 2 Page 2 of 2 June 26, 2014 final year of the contract agreement from July 1, 2014 through June 30, 2015. This results in a revised contract cost of $216,143.28, which is a 3.94 percent increase in the total contract cost. Because the increase in minimum wage also affects an employer's overhead costs such as Social Security, Workers Compensation, and other employment taxes, staff believes the request to be reasonable and recommends approval. Fiscal Analysis This is an on-going maintenance activity with no fiscal impact beyond the contract amendment. Prepared By: Department Head: 1,,� , ,� `. ! H. Spe cer ight, Landscape Manager Mark Greenwood, P.E. Director of Public Works Paul S. Gibson, Director of Finance CITY COUNCILACTION AYI'ROVED ✓ DENTFD RECEIVED OTHER roval: MECTING DATE 6'"zv �l � AVEs:�YLi'or, rn.�K, 5',acr, L_�Y,��-("'_ �.,��. NOES: �o� J n M. Wohlmuth, Cit Mana er AI3SCNT: __�� y g ABSTAIN:—��� VI?RIFIED BY: �KI rlm Original on File with City Clerk's Oftice �� Ki rk atri ck �.P �, u��+►r�wc s��v�c�s,iNc. May 30, 2014 H. Spencer Knight landscape Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert,CA 92260 Dear Spencer, We wish to take this opportunity to thank you and the City of Palm Desert for engaging our services over the past 15 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 July 01,2014. �he increase of$1.00 per hour,plus burden,i.e.employers taxes,Social Security,Workers Compensation, etc. increases payroll costs by approximately 17%. 7he net result is an increase of 7.879'o to recurring operating costs. The tatal for area 2 shall go from $103,980.00 to $112,163.28 annually ($9,346.94 monthly) an increase of 7.870055 percent and area 7 shall go from $94,126.80 to $101,534.64 annually ($8,461.22 monthly)an increase of 7.87Q061 percent. We are estimating 4,368 hours annuaily far area 2. At $1.00 per hour, the total is $5,809.44 (including burden).Ancillary costs are estimated at$2,373.84. We are estimating 3,952 hours annually for area 7. At $1.00 per hour, the total is $5,256.16 including burden).Ancillary costs are estimated at$2,151.68. Ancilfary costs include our best estimate of the increases in insurance and fuel costs. If there is a way the City can help us offset this cost it would be greatly appreciated. It would atso afford us the opportunity to avoid cutting back on labor to cover this additiona!expense. Again, it is our goal to continue to be a good value for the City.We feel the intimate business association we have enjoyed over the years can continue to prove mutually beneficial. Sincere , �" .r'���/ /� f C___ Steve, e„Y tr A�-752��ckson Street Indio CA 92201-2540 Indao 760-.347-6�325� Pa4m Spnngs are�7b�'t-34�i-E996�f1x 7�i0-347-d84t��kls�klsinc net CITY QF P�LM DESERT Contract#/P.O.# C32600 018603 Amendment No. 1 CQNTRACT �l�Ni�N�1t�IENT Contingency: YE$ NQ Contract Purpose Landscape Maintenance Area 2 accour,t No. 110-4614-453-3370 ConsultanYs Name Kirkpatrick Landscaping, InC. Project No. 902-13 address: 43-752 N. Jackson Street Indio, CA 92201 vendor No. 4358 You are hereby requested to comply with the following changes from the contract plans and specifications: DESCRIPTION OF CHANGES DECREASE INCREASE In Contract Price In Contract Price Landscape Maintenance Area 2 $681.94 per month x 12 months (July 1, 2014 thru June 30, 2015) 8,18328 TOTALS: - 8,183.28 NET CHANGE IN CONTRACT PRICE: 8,183.28 JUSTIFICATION: Increase to maintenance contract amount for Landscape Maintenance Area 2. TOTAL BUDGET FOR PROJECT: + 216,143.28 CONTINGENCY: Less: Expend. & Encumb. To Date: - 207,960.00 Amount Approved by Council: + $0 Less: This Change Order Amaunt: - 8,183.28 Less: Prior Change Order(s): - $0 BALANCE OF BUDGET Less: This Change Order: $0 REMAINING FOR PROJECT: - Balance Remainin of Contin enc : - The amount of the Contract will be decreased by the Sum of: Eiqht Thousand One Hundred Eiqhtv-three and 28/100 ($8.183.28). See reverse ... Contract C32600 Amendment No. 1 Continued from front This Amendment covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Amendment items for a lump sum price agreed upon between the Contractor and the City of Palm Desert, otherwise referred to as Owner. Contract Time Extension 0 Days. Revised Contract Total $216,143.28 The undersigned Contractor approves the foregoing Amendment # 1 as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Amendment # 1 . The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Amendment items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Amendment shall be effective when approved by the Owner. Execution of this Amendment by the Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the Owner from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Amendment, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and all consequential damages. This document will become a supplement to the Contract and all provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. 1. REQUESTED BY: 2. ACCEPTED BY: DEPARTMENT HEAD CONTRACTOR Date Accepted 3. CERTIFIED FUNDS AVAILABLE: 4. APPROVED BY: FINANCE DIRECTOR VAN G. TANNER, MAYOR Date Approved NOTE: No payments will be made prior to City Manager and Council approval CITY MANAGER Date Approved See reverse ...