23-0606_UNITED BUILDING & DEVELOPMENT SERVICES LLC_Agenda Report_E5City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Benjamin Siegel, City Manager
SUBMITTED BY: Thomas Toman, Public Works Director
PREPARED BY: Jill Thomas, Senior Management Analyst
DATE: June 6, 2023
SUBJECT: Amendment No. 1 to the Maintenance Services Agreement for Public
Facility Maintenance and Repair Services (United Building and
Development Services, LLC)
RECOMMENDATION:
1.Approve and authorize the City Manager to execute Amendment No. 1 to the
Maintenance Services Agreement with United Building and Development Services,
LLC, for public facility maintenance and repair services for an additional three-year
term beginning July 1, 2023, and ending June 30, 2026; and,
2.Waive the formal bidding process pursuant to Municipal Code Section 3-4.306(e)(3).
EXECUTIVE SUMMARY:
The current agreement for public facility maintenance and repair services with United
Building and Development, LLC (United) expires on June 30, 2023 (Attachment 1). The
original term of the agreement was for a five-year period that expires on June 30, 2023.
United has offered to continue services to the City for an additional three-year term with
a rate increase of five percent per year (Attachment 2). It is recommended that the City
Council authorize the City Manager to execute Amendment No. 1 to the Maintenance
Services Agreement (MSA) with United for a three-year term beginning July 1, 2023, and
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City Council Agenda Report
June 6, 2023
Page 2 of 3
ending June 30, 2026 (Attachment 3), and waive the formal bidding process pursuant to
Municipal Code Section 3-4.306(e)(3).
United has provided exceptional service to the City for the past five years. They have
been very responsive to the City’s needs and provide quality work on a consistent basis,
often under constrained timelines and in emergency situations. United has offered to
enter into a contract amendment which would extend the contract for a term for three
additional years with a fixed increase of five percent for each year of the proposed term.
The proposed terms of Amendment No. 1 would also include one optional two-year
extension. If the optional renewal extension is exercised, it would be subject to a cost of
living increase equal to the prior two-year average of the Consumer Price Index, All Urban
Index, October to October. Due to current market conditions, a formal RFP/RFQ process
would likely result in higher fees and possible reduction in level of service. Consequently,
it is recommended that a contract amendment be approved without a formal RFP/RFQ
process under the exceptions provided for in Municipal Code Section 3-4.306(e)(3), which
allows for an exception where the process is deemed not to be the most cost-effective
approach.
DISCUSSION/ANALYSIS:
The City’s agreement with United provides for public facility maintenance and repair
services in City facilities, parks, parkways and medians, sports fields, parking lots, open
space and other right-of-way areas. United has provided exceptional service to the City
for the past five years. Staff believes that a formal RFP/RFQ process would likely result
in higher costs due to current market conditions. Moreover, numerous other Public Works
Department priorities, capital projects, key retirements and personnel changes would
make it challenging for staff to effectively train and oversee a new contractor for this
important maintenance service. Additional benefits to the City by extending this
agreement include familiarity with City facilities and the unique features of service areas,
a proven track record of high-quality service, flexibility, and responsiveness to City needs
and priorities.
FISCAL IMPACT:
The City spends approximately $600,000 annually for public facility maintenance and
repair services. There is sufficient funding in the proposed Fiscal Year 2023-2024
Operating Budget to cover these operations.
ENVIRONMENTAL IMPACT:
Not applicable.
City Council Agenda Report
June 6, 2023
Page 3 of 3
CITY COUNCIL REVIEW:
• On February 20, 2018, the City Council approved and authorized the City Manager
to execute a Maintenance Services Agreement with United Building and
Development Services, LLC to provide public facility maintenance and repair
services for a five-year period in an annual amount not-to-exceed the amount of
available funding in the annual Operations and Capital Improvement budgets.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
This item does not require commission, committee, or board review.
NOTIFICATION:
United Building and Development Services, LLC
ATTACHMENT(S):
Attachment 1: Maintenance Services Agreement – United
Attachment 2: United Extension Request Letter
Attachment 3: Proposed Amendment No. 1
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UNITED BUILDING AND DEVELOPMENT
SERVICES LLC
Tom Toman
Public Works Director
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA. 926675
May 11, 2023
Dear Tom Toman,
United Building and Development Services LLC would request to extend the
maintenance contract agreement for a period of three years with an additional two year
extension as shown below.
•Year 1 (2023-2024) 5% increase
•Year 2 (2024-2025) 5% increase
•Year 3 (2025-2026) 5% increase
•Extension option
•Year 4 (2026-2027) CPI-U two-year average
•Year 5 (2027-2028) 0% increase
It is our desire to continue the mutual partnership between United Building and the City
as we have done for many more years.
Sincerely, Rene’ Cortez
ATTACHMENT 2 -- Page 1 of 1
AMENDMENT NO. 1
TO THE MAINTENANCE SERVICES AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
UNITED BUILDING AND DEVELOPMENT SERVICES LLC.
1.Parties and Date.
This Amendment No. 1 to the Maintenance Services Agreement is made and
entered into as of this 6th day of June 2023, by and between the City of San Juan
Capistrano, a municipal organization organized under the laws of the State of California
with its principal place of business at 30448 Rancho Viejo Road, San Juan Capistrano,
California 92675 (“City”) and United Building and Development Services LLC., a California
limited liability company, with its principal place of business at 27762 Antonio Parkway L1-
643, Ladera Ranch, CA 92694(“Contractor”). City and Contractor are sometimes
individually referred to as “Party” and collectively as “Parties.”
2.Recitals.
2.1 Contractor. The City and Contractor have entered into an agreement entitled
“MAINTENANCE SERVICES AGREEMENT” dated April 1, 2018 (“Agreement”) for the
purpose of retaining the services of Contractor to provide citywide public facility
maintenance and repair services.
2.2 Amendment Purpose. The City and Contractor desire to amend the
Agreement to extend the Maintenance Services Agreement for citywide public facility
maintenance and repair services at the pricing shown on Exhibit A for an additional three-
year term beginning July 1, 2023 and ending June 30, 2026. All other terms and conditions
will remain the same as noted in the Agreement.
2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to
Section 3.1.2 and 3.5.9 of the Agreement.
ATTACHMENT 3 -- Page 1 of 4
3. Terms.
3.1 Renewal Term. The term of the Agreement is hereby extended for one (1),
three (3) year renewal commencing July 1, 2023 to June 30, 2026, i.e., the First Renewal
Term unless earlier terminated as provided herein. Upon completion of the First Renewal
Term, the Parties may, by mutual, written consent, extend the term of this Agreement for
an additional two-year term, subject to an adjustment equal to the All Urban Consumer
Price Index (CPI-U) two-year average, October to October.
3.2 Renewal Term Compensation. Contractor shall receive compensation,
including authorized reimbursements, for all Services rendered under this Amendment
during the First Renewal Term at the rates set forth in Exhibit “A” (attached hereto and
incorporated herein by reference).
3.3 Continuing Effect of Agreement. Except as amended by this Amendment No.
1, all other provisions of the Agreement remain in full force and effect and shall govern the
actions of the parties under this Amendment No. 1. From and after the date of this
Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall
mean the Agreement as amended by this Amendment No. 1.
3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree
that they have each received adequate and independent consideration for the performance
of the obligations they have undertaken pursuant to this Amendment No. 1.
3.5 Severability. If any portion of this Amendment No. 1 is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
[Signatures on Next Page]
ATTACHMENT 3 -- Page 2 of 4
SIGNATURE PAGE FOR AMENDMENT NO. 1 TO MAINTENANCE SERVICES
AGREEMENT
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND UNITED BUILDING AND DEVELOPMENT SERVICES LLC.
CITY OF SAN JUAN CAPISTRANO
Approved By:
Benjamin Siegel
City Manager
Date
Attested By:
Maria Morris, City Clerk
Approved As To Form:
City Attorney
UNITED BUILDING AND
DEVELOPMENT SERVICES LLC.
Signature
Name
Title
Date
ATTACHMENT 3 -- Page 3 of 4
JOB CLASSIFICATION HOURLY RATE HOURLY RATE HOURLY RATE
SS 23/24 24/25 25/26
Construction Foreman $142 $149 $156
Journey Plumber $231 $243 $255
Journey Carpenter $135 $142 $149
Journey Electrician $213 $224 $235
Journey Dry Waller $187 $196 $206
Journey Flooring $169 $178 $186
Journey Concrete $213 $224 $235
Laborer $131 $138 $145
JOB CLASSIFICATION HOURLY RATE HOURLY RATE HOURLY RATE
SAHS 23/24 24/25 25/26
Construction Foreman $181 $190 $199
Journey Plumber $305 $320 $336
Journey Carpenter $182 $191 $200
Journey Electrician $309 $324 $340
Journey Dry Waller $242 $254 $266
Journey Flooring $235 $247 $259
Journey Concrete $228 $239 $251
Laborer $168 $176 $185
JOB CLASSIFICATION HOURLY RATE HOURLY RATE HOURLY RATE
ES 23/24 24/25 25/26
Construction Foreman $181 $190 $199
Journey Plumber $305 $320 $336
Journey Carpenter $182 $191 $200
Journey Electrician $309 $324 $340
Journey Dry Waller $242 $254 $266
Journey Flooring $235 $247 $259
Journey Concrete $309 $324 $340
Laborer $168 $176 $185
JOB CLASSIFICATION HOURLY RATE HOURLY RATE HOURLY RATE
EAHS 23/24 24/25 25/26
Construction Foreman $223 $234 $245
Journey Plumber $372 $390 $410
Journey Carpenter $232 $244 $256
Journey Electrician $419 $440 $462
Journey Dry Waller $294 $309 $324
Journey Flooring $263 $276 $289
Journey Concrete $309 $324 $340
Laborer $200 $209 $220
All proposed yearly/hourly rates shall include 3% for incidental/normal material costs
23/24 = July 1, 2023 through June 30, 2024
24/25 = July 1, 2024 through June 30, 2025
24/26 = July 1, 2025 through June 30, 2026
ADDENDUM NO. 1 - EXHIBIT A
UNITED BUILDING AND DEVELOPMENT SERVICES LLC
PUBLIC FACILITY MAINTENANCE AND REPAIR SERVICES
JULY 1, 2023 THROUGH JUNE 30, 2026
ATTACHMENT 3 -- Page 4 of 4