The URL can be used to link to this page

Home My WebLink About05 PACIFIC BLDG. CARE 11-19-01AGENDA REPORT NO. 5 '11'-19-01 400-10 · MEETING DATE: NOVEMBER 19, 2001 ' TO' FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION CONTRACT AMENDMENT FOR CUSTODIAL SERVICES WITH PACIFIC BUILDING CARE SUMMARY Approval of the third contract amendment with Pacific Building Care extending the Agreement for Custodial Services from January 1, 2002 to December 31, 2002 and providing a price increase equal to 6.75% for the same period due to the increase in California's minimum wage requirements. RECOMMENDATION It is recommended that the City Co'uncil approve the third amendment to the contract Agreement with Pacific Building Care for the City of Tustin's custodial services. FISCAL IMPACT The proposed 6.75% adjustment will increase the monthly contract price by $1,044.51 with a total impact of $6,267.06 for the remaining six months of the current fiscal year. Adequate funds are available in the current budget to cover this increase. Funds will be budgeted in the 2002/2003 fiscal year to cover the remaining six months from July 1, 2002 to December 31,2002. DISCUSSION 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, and the second amendment extended the term of the Agreement until December 31,2001. The State .of California adopted two minimum wage increases in year 2000. The first adjustment of $0.50 raised the minimum wage effective January 1, 2001, to $6.25 per hour. The second adjustment of another $0.50 will become effective January 2, 2002 and will raise the minimum wage to $6.75 per hour, an increase of 8%. Pacific Building Care employs a large number of people at this pay scale. The ability of this firm to maintain service levels without an increase in monthly contract costs is not possible. City staff has negotiated a 6.75% adjustment to the contract price for a one year period. The attached contract amendment would extend the Agreement for one year from January 1, 2002 to December 31,2002, and would grant the Contractor a 6.75% or $1,044.51 increase in the monthly base price of the contract, effective January 1, 2002. Contract Amendment for Custodial Services with Pacific Building Care November 19, 2001 Page 2 Pacific Building Care has provided consistent service of a reasonably high quality over the last two years and has been very responsive in upgrading maintenance standards when requested. 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 Wisam Altowaiji Field Services Manager TDS:WA:ccg:Contract amendment with Pacific Bldg. Care.doc Attachment (1) THIRD AMENDMENT TO CONTP~CT AGREEMENT THIS THIRD AMENDMENT is entered into this . day of ,200 _ by and between the City of Tustin, a Municipal Corporation (herein referred to as "City"), a~d Pacific Building Care,. a California corporation, (herein referred to as "Contractor"). This Amendment is made with reference to the following' RECITALS Ao 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; B, 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; C, 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 WHEREAS, City and Contractor entered into the second Amendment to that Agreement on January 1, 2001; and extended the Agreement until December 31,2001; i, WHEREAS, City and Contractor desire to extend the Agreement for one year, from January 1,2002 to December 31,2002; F. WHEREAS, City and Contractor also desire to adjust Contractor's compensation under the Agreement to reflect a negotiated 6.75% increase effective Januaw 1, 2002 as a result of the second increase in the California minimum wage. .. AGREEMENT The Agreement is hereby amended as follows: Ae The term of the Agreement is extended for one year, through December 31, 2002 unless sooner terminated pursuant to Section B, Page B-6, "Termination of Contract Agreement", of the Agreement. B, City shall pay Contractor the following sums for the periods indicated' 1. From January 1, 2002 to December 31, 2002 the City shall pay the Contractor, on a monthly basis, an amount equal to $16,518.78. The total sum for this time period shall not exceed $198,225,40. Co Except as expressly amended by this Third Amendment, 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 Tustin ATTEST: City Clerk of the City Of T~stir~" APPROVED AS TO FORM' city Attorney Date APPROVED AS TO CONTENT' 'Public Works Dire'~tor. Date (SEAL) CONTRACTOR Firm Name' BY: TITLE: Pacific Building Care Je'nnifer A. Corbeti-Shramo CEO/Gen~al Manager ATTACH PROPER NOTARY ACKNOWLEDGMENT FOR SIGNATURES OF AUTHORIZED PERSON(S)