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HomeMy WebLinkAbout04 CUSTODIAL SVCS 05-03-04 Finance Director 4 fl A G END A REPORT Agenda Item Reviewed: City Manager MEETING DATE: MAY 3, 2004 FROM: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION TO: SUBJECT: CONTRACT RENEWAL FOR CUSTODIAL SERVICES WITH PACIFIC BUILDING CARE SUMMARY Approval of the first contract amendment with Pacific Building Care extending the agreement for custodial services for City of Tustin Facilities for the period from July 1, 2004 to June 30, 2005, and providing a price increase equal to 3.25%. RECOMMENDATION It is recommended that the City Council approve the first amendment to the contract agreement between Pacific Building Care and the City of Tustin for custodial services subject to City Attorney approval. FISCAL IMPACT The proposed 3.25% adjustment will increase the monthly contract price by $550.77 per month and increase the annual 12-month contract total amount to $209,973.45. This increase will be incorporated into the 2004/2005 Fiscal Year Budget. BACKGROUND The City has contracted with Pacific Building Care since September 2, 2003 for custodial services for City of Tustin facilities. The original agreement was for a 1-year period, with three, 1-year term extensions available to the City. This contract amendment would extend the agreement for the first time from July 1, 2004 to June 30, 2005 and would grant the contractor a 3.25% increase in the monthly base price of the contract effective July 1, 2004. Pacific Building Care had requested a 4.0% increase in the contract amount; however, staff was able to negotiate the increase down to 3.25%. This increase is higher than the consumer Price Index due to Pacific Building Care experiencing extra ordinary increases in the State Unemployment Insurance rates and Workers Compensation rates. The overall increase in the contract price will be $550.77 per month or $6,609.24 over the 12-month period. Contract Renewal for Custodial Services with Pacific Building Care May 3, 2004 Page 2 Pacific Building Care has provided consistent service of a reasonably high quality over the last year and has been very responsive to correct areas when maintenance was 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. ~'( f Director of Public Works/City Engineer ¡;)~ ~ Wisam Altowaiji Field Services Manager TDS:WA:1" contract renewal Pacific Bldg Care.doc. Attachment FIRST AMENDMENT TO CONTRACT AGREEMENT THIS FIRST AMENDMENT is entered into this - day of , 2004 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"). A. C. This Amendment is made with reference to the following: RECITALS WHEREAS, City and Contractor entered into an Agreement dated September 2, 2003 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, 2003 to June 30, 2004; 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; WHEREAS, City and Contractor desire to exercise the extension clause pursuant to Section B, Page B-6, "Extension of Contract", to extend the Agreement for one year from July 1, 2004 to June 30, 2005; D. WHEREAS, City and Contractor also desire to adjust Contractor's compensation under the Agreement to reflect a negotiated 3.25% increase, which reflects an increase in the State Unemployment Insurance rate and the Workers Compensation rates. AGREEMENT The Agreement is hereby amended as follows: A. The term of the Agreement is extended for one year, through June 30, 2005 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 July 1, 2004 to June 30, 2005 the City shall pay the Contractor, on a monthly basis, an amount equal to $17,497.78. 2. City shall pay Contractor a total sum that shall not exceed $209,973.45 for the period from July 1, 2004 to June 30, 2005. C. Except as expressly amended by this First 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 BY: (Seal) Mayor of the City of Tustin ATTEST: City Clerk of the City of Tustin APPROVED AS TO FORM: City Attorney Date APPROVED AS TO CONTENT: Public Works Director Date CONTRACTOR Firm Name: Pacific Buildino Care (SEAL) BY: Jennifer A. Corbett-Shramo TITLE: CEO/General Manager ATTACH PROPER NOTARY ACKNOWLEDGMENT FOR SIGNATURES OF AUTHORIZED PERSON(S)