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HomeMy WebLinkAbout09 APPROVE AMENDMENT NO 4. TO THE AGREEMENT WITH DIAMOND CONTRACT SERVICESA ends Item _ ~ AGENDA REPORT Reviewed: .~.,~' City Manager Finance Director MEETING DATE: JULY 6, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE AMENDMENT NO. 4 TO THE AGREEMENT WITH DIAMOND CONTRACT SERVICES, INC. FOR CUSTODIAL SERVICES SUMMARY Approval of amendment No. 4 will extend the Agreement for Custodial Services with Diamond Contract Services, Inc. from July 1, 2010 to June 30, 2011 with no price increase. RECOMMENDATION It is recommended the City Council approve Amendment No. 4 to the Agreement between Diamond Contract Services, Inc. and the City of Tustin for custodial services. FISCAL IMPACT The value of this contract is $240,338. Sufficient funds have been budgeted and appropriated in this Fiscal Year 2010-2011 Public Works Department operating budget. BACKGROUND The City has contracted with Diamond Contract Services, Inc. since October 1, 2006 for custodial services at City facilities. The original agreement was fora 9-month period with three 1-year term extensions available to the City. Diamond has waived a scheduled Consumer Price Index adjustment and compensation will remain at the existing level. Total compensation shall not exceed $240,338. Diamond Contract Services, Inc. has provided consistent service of acceptable quality over the last four years and staff is recommending that the City Council extended the current contract with the approval of Amendment No. 4. Dula S. Stack, P.E. hurchill Dir , tpt' of Public Works/City Engineer Field Services Manager Attachment: Amendment to Contract Agreement AMENDMENT TO CONTRACT AGREEMENT THIS AMENDMENT is entered into the day of 2010, by and between the City of Tustin, a municipal corporation (herein referred to as "City"}, and Diamond Contract Services, Inc., 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 7, 2006 (the "Agreement"), wherein Contractor agreed to perform custodial services in accordance with the Agreement and specifications entitled "Custodial Services" for the period from August 2, 2006 to June 30, 2007; B. WHEREAS, the initial term of the Agreement was nine {9) months, 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 the Agreement on June 25, 2007 and extended the Agreement until June 30, 2008; D. WHEREAS, City and Contractor entered into the Second Amendment to the Agreement on April 15, 2008 and extended the Agreement until June 30, 2009; E. WHEREAS, City and Contractor entered into the Third Amendment to the Agreement on July 1, 2009 and extended the Agreement until June 30, 2010; F. WHEREAS, City has exhausted the three consecutive 1-year options to renew; AGREEMENT The Agreement is hereby amended as follows: A. City and Contractor agree to extend the Agreement for a period of one (1) year, through June 30, 2011, unless sooner terminated under the "Termination of Contract Agreement" referenced in Section B of the Agreement, which states: "The City reserves the right to terminate this Contract Agreement at any time with or without cause upon thirty (30) days written notice to 797164.1 Contractor, except that where termination is due to the fault of the Contractor and constitutes an immediate danger to the health, safety and general welfare, the period of notice shall be such shorter time as may be appropriate. Upon receipt of the notice of termination Contractor shall immediately cease all services hereunder except such as may be specifically approved by the City. Contractor shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by City thereafter. 1f termination is due to the failure of the Contractor to fulfill its obligations under this Contract Agreement, City may take over the work and prosecute the same to completion by contractor otherwise, and the Contractor shall be liable to the extent that the totaE cost for completion of the services required hereunder exceeds the compensation herein stipulated, provided that the City shall use reasonable efforts to mitigate damages and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed to City." B. City shall pay the Contractor the following sums for the periods indicated: From July 1, 2010 through June 30, 2011, the City shall pay the Contractor, on a monthly basis, an amount equal to $20,028. The total sum for this time period shall not-ta-exceed $240,338. C. Except as expressly amended by this Amendment, all other terms and conditions of the Agreement and all attachments and exhibits thereto,. shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS] 747169.1 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date second above written. THE CITY OF TUSTIN BY: (Seal) Mayor of the City of Tustin ATTEST: City Clerk of the City Tustin APPROVED AS TO FORM -~~~- r- C ty Attorney Date APPROVED AS TO CONTENT: Public Works Director Date CONTRACTOR Firm Name: Diamond Contract Services, Inc. (Seal BY: Derek C. Smith TITLE: President ATTACH PROPER NOTARY ACKNOWLEDGEMENT FOR SIGNATURES OF AUTHORISED PERSON (S) 707169.1