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HomeMy WebLinkAboutC32620 - CA2 - LMA7 - 907-13Contract No. 32620 iti Rs 70 ,H SHORE DR h wme.>- ��„•R ° 11111 114 'IEW /I n" UKfit't VIIVt: 1111111rrt1^ . 4� FAIRWAY DR LANDSCAPE AREA 7 e FRANK SINAATRA DR LEGEND LMA7 I_ I Palm Desert Parcels City Boundary 1 INCH = 4,000 FEET FRED WARING DR FRED WARING DR HWY 111 LBRUARY 2013 Contract No. C32620 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE CONTRACT AMENDMENT NO. 2 TO INCREASE CONTRACT NO. C32620 WITH KIRKPATRICK LANDSCAPING, INC., BY THE AMOUNT OF $7,407.84 FOR LANDSCAPE MAINTENANCE AREA 7 (PROJECT NO. 907-13) SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: June 26, 2014 CONTENTS: Kirkpatrick Landscaping, Inc., Letter of Request Contract Amendment No. 2 Vicinity Map Recommendation By Minute Motion: 1. Approve Contract Amendment No. 2 to increase Contract No. C32620 with Kirkpatrick Landscaping, Inc., in the amount of $7,407.84 for Landscape Maintenance Area 2; 2. Appropriate $7,407.84 from Unobligated General Funds to the various Lighting and Landscape District accounts; and 3. Authorize the Mayor to execute Contract Amendment No. 2. Backqround On May 9, 2013, City Council awarded Contract No. C32620 for Landscape Maintenance Area 7 to Kirkpatrick Landscaping. This is a two year contract that commenced on July 1, 2013, in the amount $192,823.02 for a period of two years ($96,411.15 per year). On October 24, 2013, City Council approved Contract Amendment No. 1 reducing the contract amount by $4,187.92 due to a reduction in services provided to President's Plaza III because the property owners voted not to reform the district. This reduced the total contract cost to $188,635.10. Contract No. C32620 Staff Report Amend C32620 for LMA 2 Page 2 of 2 June 26, 2014 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 $617.32 per month ($7,407.84 per year), and will raise the contract cost to $8,461.25 per month for the final year of the contract agreement from July 1, 2014 through June 30, 2015. This results in a revised contract cost of $196,042.94, which is a 3.93 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 of Kirkpatrick Landscaping's request. Fiscal Analysis This is an on-going maintenance activity with no fiscal impact beyond the contract amendment. Prepared By: Department Head: � f�� ` 1 H. pen er Kn g , Landscape Manager Mark Greenwood, P.E. Director of Public Works Paul S. Gibson, Director of Finance CiTY COUNCIL ACT10N APPROVED ✓ DF.NiF.D A proval: RECEIVED OTHER ME[?TING DATE —���� AYI�.��� n ` t i Wt.bC� Qi'tKQ.t' hn M. Wohlmuth, City Manager Nn�s: �f`'e fii3�(:NT: A1�5'�'illN:�h"e �✓�;lz I F l i:9) i�Y: 2��<► rlW�. :��t-'s�xn,il san Filc with Cit�� C'Id�s•Is's �t'fice ,.,� �11 �, c���'li�..�� � �J C . � �►rvusr���c�s�v�c�s,a�vc. May 30, �U I 4 H.5pencer 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 tirne, we are compelled to address the minimum wage increase. This is mandated by the State effective July Q1,2014. . The increase of$1.00 per hour,plus burden,f.e.employers taxes,Social Security,Workers Compensation, etc. increases payroll costs by approximately 17°10. The net result is an increase of 7.879�o to recurring operating tosts. The total 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 rnonthly)an increase of 7.870061 percent. �Ve are estimating 4,368 haurs annually far area 2. At $1.00 per hour, the tota) +s $5,809.44 (including burden).Ancillary costs are estimated at$2,373.84. We are estimating 3,952 hours annual�y for area 7. At $1.00 per hour, the total is $5,25b.16 including burdenj.Anciilary costs are estimated at$2,151.68. Ancillary costs include our best estimate of the increases in insurance and fuel costs. It there is a way the City can help us affset this cost it would be greatly appreciated. It would also afford us the opportunity to avaid cutting back on labar to caver 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 ta prove mutually benefic+al. Sintere A,rr''' / ,f / Steve,� �"~f i 4�-75�,)�r:kscsr��t�eet In;�oo L,l�9i�n7.-254�t in�iic��1E2t3 3�#; b9�6� P�irn�;pr��agu;���a 7'�C1 3�b��a'��6 ''� ��x, 7�i�3-;347-d84����I;��kf�;�nt;�ct CITY OF PALM DESERT Contract#/P.O.# C32620 018609 Amendment No. 2 CONTRA,CT �l�1V.�NDMENT Contingency: YES N� Contract Purpose Landscape Maintenance Area 7 Account No. LLD ACCOU11t ConsultanYs Name Kirkpatrick Landscaping, Inc. Project No. 907-13 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 7 $617.32 per month x 12 months (July 1, 2014 thru June 30, 2015) 7,407.84 TOTALS: - 7,407.84 NET CHANGE IN CONTRACT PRICE: 7,407.84 JUSTIFICATION: Increase contract amount for Landscape Maintenance Area 7 TOTAL BUDGET FOR PROJECT: + $196,042.94 CONTINGENCY: Less: Expend. & Encumb. To Date: $188,635.10 Amount Approved by Council: + $0 Less: This Change Order Amount: - $7,407.$4 Less: Prior Change Order(s): $0 BALANCE OF BUDGET Less:This Change Order: - $0 REMAINING FOR PROJECT: - Balance Remaining of Contingency: - The amount of the Contract will be decreased by the Sum of: Seven Thousand Four Hundred Seven dollars and 94/00$7,407.94. See reverse ... Contract C32620 Amendment No. 2 Continued from front This Amendment covers changes to the subject contract as described herein. The Contractor shali 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 $196,042.94 The undersigned Contractor approves the foregoing Amendment # 2 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 # 2 . 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 ...