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Home My WebLink AboutHA34821 - FY16-17 Extension Floor Coverings-Related Supplies SvcsPALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVAL OF AN EXTENSION TO CONTRACT NO. HA-34820 WITH CURTIS ALLAN FLOOR COVERING, INC. FOR PURPOSES OF PROCURING FLOOR COVERINGS AND RELATED SUPPLIES AND SERVICES FOR THE PALM DESERT HOUSING AUTHORITY PROPERTIES, FOR FY 2016/2017 IN AN AMOUNT NOT TO EXCEED $194,250. SUBMITTED BY: Jessica Gonzales, Management Analyst - Housing CONTRACTOR: Curtis Allan Floor Covering, Inc. 132 West 8th Street National City, CA 91950 DATE: July 14, 2016 CONTENTS: Mohawk Participation Letter Mohawk Participation Letter (dated June 21, 2016) Mohawk Letter Regarding Curtis Allan Floor Covering, Inc. as Representative (dated June 21, 2016) Curtis Allan Floor Covering, Inc. Renewal Proposal Letter (dated June 10, 2016) Recommendation By Minute Motion, that the Housing Authority Board, 1) Approve an extension to Contract No. HA34820 with Curtis Allan, Inc. for the purpose of procuring floor coverings and related supplies, equipment and services under the National Joint Powers Alliance Agreement Contract No. 022712-MCD with Mohawk Carpet Distribution, Inc. for the Palm Desert Housing Authority properties pursuant to Section 3.30.260 of the Palm Desert Municipal Code, for a period of twelve (12) months for FY 2016/2017 in an amount not to exceed $185,000 plus 5% in the amount of $9,250 for non -warrantee partial replacements and repairs; and 2) Authorize the Palm Desert Housing Authority's Legal Counsel, if necessary, to negotiate and finalize an extension agreement with Curtis Allan Floor Covering, Inc.; and 3) Authorize the Executive Director and/or the Chairman to execute the extension and any documents necessary to effectuate the actions taken herewith. Monies have been included in the FY 2016/2017 proposed Palm Desert Housing Authority's ("Authority") operating budget, in the appropriate Authority accounts. Housing Commission Recommendation The Housing Commission will review the recommendation at its regular meeting of July 13, 2016. Staff will provide a verbal report upon request. Staff Report Approve Extension to Contract No. HA34820 — Curtis Allan July 14, 2016 Page 2 of 3 Strategic Plan Objective This request does not apply to a specific strategic plan goal. Executive Summary Approval of this request will authorize an extension to Contract HA34820 ("Contract") with Curtis Allan Floor Coverings, Inc. ("Curtis Allan") under the National Joint Powers Alliance ("NJPA") Agreement Contract No. 022712-MCD with Mohawk Carpet Distribution, Inc. ("Mohawk") as the primary vendor for purchases of various floor coverings ("flooring"), installation, and related supplies, equipment and services at the Palm Desert Housing Authority ("Authority") properties for an additional twelve (12) months, beginning July 1, 2016. The existing Contract terminates on June 30, 2016 and allows the parties to the Contract to extend the term for an additional two (2) one-year terms. Curtis Allan has been the Authority's primary vendor for flooring procurement and installation under the NJPA Agreement with Mohawk during the 2015/2016 fiscal year. The Authority's annual procurement of flooring and related supplies, equipment and services includes but is not limited to purchasing of various flooring materials (i.e., vinyl, carpet, carpet tile, tile, etc.), installation, ancillary flooring materials (Le., underlayment, adhesives) and other related supplies, equipment and services. Curtis Allan has been performing satisfactory under its current Contract obligations of services. Staff recommends that the Authority continue to contract with Curtis Allan for these services for FY 2016/2017 in an amount not to exceed $185,000 plus 5% in the amount of $9,250 for non - warrantee partial replacements and repairs. Background On November 2015, the Authority approved a Contract with Curtis Allan, for the purpose of providing flooring procurement, installation and whenever appropriate, haul away and recycle inefficient, damaged, deteriorated flooring and any other related supplies under NJPA Agreement with Mohawk during the 2015/2016 fiscal year at the Authority owned properties. The original Contract term was for a 7 month period (November 12, 2015 - June 30, 2016). This request will extend Curtis Allan's Contract for an additional twelve (12) months beginning July 1, 2016. The current Contract fee is based on the cooperative pricing through Mohawk's government purchasing Contract No. 022712-MCD under the NJPA (A copy is on file with the City of Palm Desert's City Clerk's Office). Curtis Allan has communicated that in the event there is an increase, it would be an increase pursuant to the terms of Contract No. 022712-MCD with Mohawk or any prevailing wage adjustments to labor installation rates and it would not exceed $0.75 per yard. Annually the Authority replaces flooring in approximately 18% of the units (190 of 1,041 units). The average cost to replace all flooring in a unit is approximately $974. At 18% replacement, the expected cost for fiscal year 2016/2017 is approximately $185,000. In addition, the Authority must complete repairs and non -warranty services which include but are not limited to partial replacements, repairing seams, stretching, stain repair, etc. that are not part of the annual replacement cost expenditures which is expected to be approximately 5% of the installation costs or $9,250. G \HOUSING\Jessica Gonzales\STAFF REPORTS\2016\Curtis Allan Extension Renewal - I IA - Staff Repon 7-14-16 doc Staff Report Approve Extension to Contract No. HA3482O — Curtis Allan July 14, 2016 Page 3 of 3 Mohawk has confirmed it will provide to the Authority as a participating entity, the NJPA contract terms, products, product warranty, services and pricing. Mohawk has also confirmed that Curtis Allan (National City and Corona, CA) is authorized to represent Mohawk through Contract No. 022712-MCD. This includes procurement, delivery, and installation and whenever appropriate, haul away and recycle of flooring materials for the Palm Desert Housing Authority owned residential rental properties. Curtis Allan will be required to dispose of or recycle flooring materials in accordance with Environmental Protections Agency (EPA) standards for responsible flooring disposal. Under the provisions of the City of Palm Desert Municipal Code Section 3.30.260, the Authority may participate as a government entity with NJPA under their cooperative pricing for flooring and related services and supplies provided by Mohawk. In addition, the Authority will also continue to use Curtis Allan to complete repairs and non - warranty services which include but are not limited to repairing seams, stretching, stain repair, etc. that may be necessary. Staff recommends approval of this request to facilitate the flooring replacements needed that includes flooring procurement, delivery, installation, related supplies, equipment and services for the Palm Desert Housing Authority owned residential rental properties Fiscal Analysis Approval of staff's recommendation to extend Contract No. HA34820 with Curtis Allan would result in an expenditure in an amount not to exceed $185,000.00 for the purpose of procuring floor coverings and related supplies, equipment and services and an additional 5% in the amount of $9,250.00 for repairs and non -warranty services for a twelve (12) month period for FY 2016/2017 which will be paid from the FY 2016/2017 Housing Authority's proposed operating budget. Submitted by Department Head: Gonzales Ma))agement Analyst — Housing Approval: ore, Director of Finance BY H ' S AUTF l l McCarthy, Interim ecutive Director3iN) . / F J I x_ s S BY: oi 6 Me with h (:di ...f. f {'cr FI CS a� Fn rn I' t< ,aL-f to T tuifber, ond 6 i cet orS ICJ Cilo E G.\HOUSING\Jessica Gonzales\STAFF REPORTS \2016\Curtis Allan Extension Renewal -HA- Staff Report 7-14-16 doc t// MOHAWK June 21, 2016 Ms. Jessica Gonzales City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 In regard to NJPA Contract 022712-MCD of Mohawk Industries: This is to verify that City of Palm Desert Housing Authority has initiated a project that is designed to utilize the National Joint Powers Alliance (NJPA) contract for material and services. The City of Palm Desert Housing Authority has approval to utilize this contract through June 30,2017. Mohawk Industries is a current and in good standing participant of NJPA which can be verified at: http://www.nipacoop.orq/national-cooperative-contract-solutions/contracts- general/flooring/022712-mcd/. Please accept my thanks for your inquiry and I am hopeful that this verification provides you the information you require. Sincerely, Sandra Drake Mohawk Industries Director Business Development m Mohawk Group 160 S. Industrial Blvd I Calhoun. GA 30701 800 554 6637 I www.mohawkgroup.com June 21, 2016 Mr. Dave Voelker Curtis Allen Floor Covering 3035 Palisades Drive Corona, CA 92880 Mr. Voelker, Please accept this letter as official authorization to represent Mohawk industries products as agreed upon through the National Joint Powers Alliance (NJPA) contract 022712-MCD. With this authority it is understood that Curtis Allen Floor Covering will be responsible of appropriate use of this contract and that all terms and conditions of the agreement are to be strictly adhered. This agreement will be valid through June 30, 2017. Thank you very much for your support of the NJPA contract and of Mohawk Industries. Sincerely, Sandra Drake Director Business Development Mohawk Industries KARASTAN LEES Bigelow ID D U R K AN 1 MOHAWK MAKES IT WORK STD'S CARPET BARN, INC. CURTIS ALLAN FLOORCOVERTNG 132 W. 8TH STREET NATIONAL CITY, CA 91950 (619) 477-7000 X 3012 (619) 477-6120 Fax June 10, 2016 RPM Company Attn: Teresa Vakili Re: HA34820 City of Palm Desert To Whom It May Concern: In reference to above contract, please be advised that due to the need to extend the contract period for an additional year from July 1, 2016, in the event of increased costs under this contract these costs will not exceed $0.75 yard. Should you have any questions please do not hesitate to contact me. Sincerely, Allan Ziman President