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Contract No. C32600
LANDSCAPE AREA 2
LEGEND
LMA 2
riPalm Desert Parcels
City Boundary
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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,,� , ,� `.
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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
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VI?RIFIED BY: �KI rlm
Original on File with City Clerk's Oftice
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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 ...