03.13 Fith Amendment City Parks Custodial Services �°F°�A,
aS..`aGORPORATFO.`/''
U~' ''�CA
i�:::. ;�2 A GENDA ITEM
�
:�
ti��c uf��G��`�o
May 14, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager /
FROM: Bonnie Hagan, Community Services Director �
REVIEW: City Manag Finance �6� -
1. SUBJECT
Fifth Amendment to Agreement with Merchants Building Maintenance, LLC, for the final
extension term for custodial cleaning in city parks and facilities.
2. SUMMARY
This amendment authorizes the second and final extension term for the agreement and
includes continuing services for the Yorba Park restroom building and Senior Center, as
well as service for the new community and concession buildings at Shaffer Park.
3. RECOMMENDED ACTION
Approve the amendment with Merchants Building Maintenance, LLC, for the final
extension term for custodial cleaning in city parks and facilities in the amount of
$344,310.44, and authorize the Mayor and the City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is $344,310.44 and will be funded through
General Fund 100.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community:
d: Effectively manage and develop City assets.
6. DISCUSSION AND BACKGROUND
Background
In January 2016, the City Council approved an agreement with Merchants Building
Maintenance, LLC (Merchants), for building maintenance and custodial cleaning services
in city parks. The initial term was two years and five months, commencing February 1,
2016, with two optional one-year extensions starting in July 2018 and July 2019.
ITEM 3•13 1 05/14/2019
In July 2016, oversight of the Senior Center transitioned from Public Works to Community
Services. As such, a first amendment was executed to add custodial services for the
Senior Center.
In April 2018, after the completion of the Yorba Park renovation project, a second
amendment was executed to add custodial services for Yorba Park for the duration of the
original agreement.
In July 2018, a third amendment was executed to initiate the first one-year extension. The
amendment continued services at Yorba Park and added on-call services to the Senior
Center through June 2019.
In November 2018, the City received a request from Merchants for a contract increase to
accommodate the Senate Bill 3 mandated wage increase, raising California's minimum
wage to $15 by 2022. A fourth amendment was executed to cover the additional labor
costs.
Discussion .
The proposed fifth amendment authorizes the second and final extension term for the
agreement and includes continuing services for the Yorba Park restroom building and on-
call Senior Center services for reservations, as well as service for the new community
and concession buildings at Shaffer Park.
The fifth amendment will be funded through the General Fund (100). On-call Senior
Center services are reimbursed through user fees. A summary of contract history is
attached for reference.
7. ATTACHMENTS
1. Merchants Building Contract 5th Amendment Summary
2. Fifth Amendment to Agreement 6267 B
�ITEM 2 05/14/2019
MERCHANTS BUILDING CONTRACT
5TH AMENDMENT SUMMARY
,, . ._
:=_ . � ; . . :, . :, ;Orig�nal ,,isf�Eztension` °'2nd Extension;: Combined
Dates of Contract 2/1/16-6/30/18 7/i/18-6/30/19 7/1/19-6/30/20 2/i/16-6/30/20
Base Amount $ 554,982.85 $ 229,648.00 $ 229,648.00 $ 1,014,278.85
Contingency $ 16,649.28 $ 6,889.42 $ 6,889.42 $ 30,428.12
Total Contract Amount';;$ „571,632:1,3 $ ,.l 236;537 42;; $ `_;236;53,7,42, $ 1,044,706.97
1stAmendment $ 121,739.00 $ 63,516.00 $ 63,516.00 $ 248,771.00
(add Senior Center starting 7/12/16) .$�_� .69.3,371.13 �$s � 300;053.42�`.. $ -; 300,053:42�' $ 1,293,477.97
2nd Amendment $ 4,911.00 $ - $ - $ 4,911.00
. , _,
add Yorba Park for April to June 2018) $ '698,282°�13 $ �°' 30,0`,Q53 42''.� $ ` '�300�;0,53:42'; $ 1,298,388.97
3rd Amendment � - $ 10,744.00 $ - $ 10,744.00
(Execution of 1 st Extension, Yorba Park = . �
services, and additional Senior Center-i�` , �-
on call) ��$' 698,282:13 $ t, 310;797:42 $J 3,00;053�.42 $ 1,309,132.97
4th Amendment $ - $ 10,818.08 $ 21,372.02 $ 32,190.10
., �..- ,, 1„ ,
ncrease 9.1% on Wage Related Costs 5, ` "" �'�
- �
(76.5%) effective January 1, 2019; . ' ,
Increase 8.3% on Wage Related Costs.;� - � ` .
� (76.5%) effective January 1, 2020 x �.� ��: ` u
'$ 698;282 13 $.t,,. 321;6,15 50: :$ ,�-� 321,425:44 $ 1,341,323.07
5th Amendment ' '" ' ' `
(Execution of 2nd Extension, Yorba �
Park services, additional Senior Center, �
and updated Shaffer Park services)
$ - $ ' . - $ 22,885:00 $ 22,885.00
Revised Annual Total with Increase $ 698,282.13 $ 321,615.50 $ 344,310.44 $ 1,364,208.07
Attachment 1
AGMT No. 6267.B.5
FIFTH AMENDMENT
TO
CONTRACT
[Custodial Services for City Park Facilities]
This Fifth Amendment to Contract (the "Fifth Amendment") is made and entered into as of
, 2019, by and between the CITY OF ORANGE, a municipal corporation
(the "City"), and MERCHANTS BUILDING MAINTENANCE, LLC, a California limited liability
company(herein referred to as the"Contractor"),with reference to the following:
A. The City and the Contractor entered into that certain Contract (Agreement No.
6267.B.) dated as of January 14, 2016 (the "Original Agreement"), which was later amended by that
certain First Amendment to Contract, dated as of July 12, 2016 (Agreement No. 6267.B.1) (the"First
Amendment"), and that Second Amendment to Contract dated as of April 24, 2018 (Agreement No.
6267.B.2.) (the "Second Amendment"), and that Third Amendment to Contract dated as of July 23,
2018 (Agreement No. 6267.B.3) (the "Third Amendment"), and that Fourth Amendment to Contract
dated as of November 13,2018 (Agreement No. 6267.B.4) ("the Fourth Amendment"). The Original
Agreement and the First, the Second, the Third, and the Fourth Amendments are incorporated herein
by this reference; and
B. The City and the Contractor desire to further amend the Original Agreement to
modify, amend and supplement certain portions of the Original Agreement.
NOW,THEREFORE,the parties hereby agree as follows:
Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms
used herein shall have the meanings set forth for such terms in the Original Agreement.
Section 2. Cross-References. The City and Contractor agree that all references in this
Fifth Amendment are deemed and construed to refer to the Original Agreement, as implemented by
this Fifth Amendment.
Section 3. Revised Scope of Services. The Scope of Work-Custodial Specifications,
Article I, Attachment No. 1 of the Original Agreement, is hereby amended, modified and
supplemented to include the services described on Attachment No. 1, attached hereto and
incorporated herein by this reference.
Section 4. Second Extension Term and Compensation. Upon expiration of the First
Extension Term (June 30, 2019), Article III of the Original Agreement is hereby amended to reflect
a Second Extension Term commencing on July 1, 2019 and terminating June 30, 2020 in an amount
not to exceed THREE HUNDRED FORTY-FOUR THOUSAND THREE HUNDRED TEN
DOLLARS and 44/100 ($344,310.44).
Section 5. Inte�ration. This Fifth Amendment amends, as set forth herein, the Original
Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full
force and effect. To the extent that there is any conflict or inconsistency between the terms and
provisions of this Fifth Amendment and the terms and provisions of the Original Agreement, the
terms and provisions of this Fifth Amendment shall control and govern the rights and obligations of
the parties.
IN WITNESS of this Agreement, the parties enter into this Fifth Amendment on the year and
day first above written.
"CONTRACTOR" "CITY"
MERCHANTS BUILDING MAINTENANCE, CITY OF ORANGE, a municipal corporation
LLC, a California limited liability company
*By: By:
Printed Name: Mark A. Murphy, Mayor
Title:
*By: ATTEST:
Printed Name:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Gary A. Sheatz, City Attorney
*NOTE: The City requires the follvwing signature(s) on behalf of the Consultant:
-- (1) the Chairman of the BoaYd, the President or a Vice-President,AND (2) the Secretary,
the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant
Treasuren If only one cor,porate officer exists or one corporate officer holds more than
one corporate office,please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this
Agreemen� A copy of the corporate resolution, certified by the Secretary close in time to
the execution of the Agreement, must be provided to the City.
2
Supplemental Scope of Services for
Merchants Building Maintenance Services
(2019-2020 Fiscal Year)
1. Additional location added to daily routine: Yorba Park (190 S. Yorba St., Orange) $8,244.00
• Restroom servicing (7 days per week) $687.00/month x 12 months
2. Rates per original agreement apply. Additional lump sum for senior center facility $2,500.00
cleaning (on-call basis).
3. Additional lump sum for Shaffer Park which represents the increase in services $12,141.00
after the April 2019 renovation. Rates per page 2.
Total Increase for Fiscal Year 2019-2020 $22,885.00
Exhibit A
Page 1 of 2
Y�
i4� •
�W.'' �'
1^�
i���"
��''r� �� Merchants buildin� maintena�ce
, �
,3'��:�
� � ���', 1639 E.Edinger Avenue,Bldg.C
°i'� Santa Ana,CA 92705
I ' ' , . : (714)473-9272
. . . . - - (714)973-2124
November 20,2018- �
Donald Equitz
City of Orange
Re: Shaffer Park Pricing
Dear Mr.Equitz,
As requested below you wi11 find the new pricing for Sha£fer Park floor waxing and monthly
cleani.ng: .
Community Buildina—
Initial Floor Waxing: $888.36
New Monthly Pricing: $952.00
Concessiorz Building—
Initial�'loor Waxing: $178.42
New Monthly Pricing: $649.00
Existing Restrooms—New Monthly Pricing: $661.01
Should you have any questions or zequire'further information please feel free to giva me a call at
(714) 697-6323. �
Sun.cerely,
/
!
E sa Vidaurry
Quality Control Managez
Merchants Buildi,ng Maintenance
Approved by Date
Exhibit A
Page 2 of 2