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HomeMy WebLinkAbout03 CUSTODIAL SVCS. 01-02-01AGENDA RE, ORT NO. 03 01-02-01 MEETING DATE TO' FROM' SUBJECT: JANUARY 2, 2001 WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION CONTRACT AMENDMENT FOR CUSTODIAL SERVICES WITH PACIFIC BUILDING CARE SUMMARY Approval of the second contract amendment, with Pacific Building Care extending the agreement for custodial services from July 1, 2001 to December 31, 2001, and providing a price increase equal to 5.7% for the period from January 1, 2001 to December 31, 2001 due to the State of California minimum wage increase. ., RECOMMENDATION It is recommended that the City Council approve the second amendment to the Contract Agreement With Pacific Building Care for custodial services, subject to the City Attorney's approval. FISCAL IMPACT The proposed 5.7% adjustment will increase the monthly contract price by $834.47 with a total impact of $5,006.82 to the remaining six months of the current fiscal year. Adequate funds are available in the budget to cover the increase. BACKGROUND The City has contracted with Pacific Building Care since August 30, 1999 for custodial services for City facilities. The original Agreement was for a l-year period with three l-year term extensions available to the City. The first amendment extended the term of the Agreement until June 30, 2001. The State of California has recently adopted two minimum wage increases. The first adjustment of $0.50 will raise the minimum wage effoctive January 1, 2001, f[om $5.75 per hour to $6.25 per hour, an increase of 8.2%. The second adjustment of another $0.50 will go into effect on January 1, 2002, and increase the minimum wage.to. $6.75 per hour. Pacific Building Care employs a. large number of people, at this pay scale. The ability of this firm to maintain adequate service levels without an increase in monthly contract costs is not possible. City staff has negotiated an adjustment to the contract for a twelve-month period. ~ The attached contract amendment would extend the Agreement for six months, to coincide with the dates of the increases in the California minimum wage, through December 31, 2001, and would grant the contractor a 5.7% or $834.47 increase in the monthly base price of the contract, effective January 1, 2001. Contract Amendment for Custodial Services with Pacific Building Care January 2, 2001 Page 2 Pacific Building Care has provided consistent service of a reasonably high quality over the last 18 months, and has been very responsive in upgrading 'maintenance when not up to City standards. The implementation of this increase will allow the contractor to continue to provide the quality and responsiveness the citY has received previously. Tim D. Serlet Director of Public Works/City Engineer TDS:WA:'ccg:Pacific Care contract amend.doc Attachment: (1) Wisam Altowaiji Field Services Manager ,. SECOND AMENDMENT TO CONTRACT AGREEMENT THIS SECOND AMENDMENT is entered into this day of ,200 by and between the City of Tustin, a Municipal Corporation (herein referred to as "City"), and Pacific Building Care, a California Corporation, (herein referred to as "Contractor"). This Amendment is made with reference to the following' RECITALS A, WHEREAS, City and Contractor entered into an Agreement dated August 30, 1999, the "Agreement", wherein Contractor agreed to perform custodial maintenance services in accordance with the Agreement and specifications entitled "Custodial Services" for the Period from.July 1, 1999 to June 30, 2000; WHEREAS, the initial term of the Agreement was one year with the option to be extended for three additional one year terms by written agreement of the parties; Co WHEREAS, City and Contractor entered into the first Amendment to that Agreement on July 1, 2000; and extended the Agreement until June 30, 2001; Do E. Fo WHEREAS, the California minimUm wage is scheduled to be raised by $0.50 effective January 1, 2001, and raised another $0.50 effective January 1, 2002; WHEREAS, City'and Contractor desire to extend the Agreement for six months or until December 31, 2001 to coincide with the dates of the first increase in the California minimum wage; WHEREAS, City and Contractor also desire to adjust C°ntractor's compensation under the Agreement to reflect a negotiated 5.7% increase effective January 1, 2000 as a result of the first increase in the California minimum wage. AGREEMENT The Agreement is hereby amended as follows' Al The term of the Agreement is extended for six months, through December 31, 2001, unless sooner terminated pursuant to Section Bi Page B-6, "Termination of Contract Agreement", of the Agreement. B, City shall pay Contractor the following sums for the periods indicated: 1. From July 1, 2000 to December 31, 2000, tl~e City shall pay the Contractor, on a monthly basis, an amount equal to $14,639.80. 2. From January 1, 2001 to December 31, 2001, the City shall pay the Contractor, on a monthly basis, an amount equal to $15,474.27. The total sum for this time period shall not exceed $185,691.24. C. Except as expressly. ,ended by this Second Amendr,. ,, all other terms and · conditions of the Agreement and all attachments and exhibits thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date first above written. THE CITY OF TUSTIN (Seal) BY: Mayor of'the City of ~ustin ATTEST: City c~ierk of the '~ity' of Tu~,tin APPROVED AS TO FORM' City'~ttorney Date APPROVED AS TO CONTENT: Public Works Director Date CONTRACTOR Firm Name: Pacific Buiidina Care (SEAL) BY: ' TITLE' ,~ennifer A. P~orbett-Sl~'ramo Vice P~'e'sident/General Manager ATTACH PROPER NOTARY ACKNOWLEDGMENT FOR SIGNATURES OF AUTHORIZED PERSON(S) .