Loading...
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 6/6/2023 E5 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 ATTACHMENT 1 -- Page 1 of 27 ATTACHMENT 1 -- Page 2 of 27 ATTACHMENT 1 -- Page 3 of 27 ATTACHMENT 1 -- Page 4 of 27 ATTACHMENT 1 -- Page 5 of 27 ATTACHMENT 1 -- Page 6 of 27 ATTACHMENT 1 -- Page 7 of 27 ATTACHMENT 1 -- Page 8 of 27 ATTACHMENT 1 -- Page 9 of 27 ATTACHMENT 1 -- Page 10 of 27 ATTACHMENT 1 -- Page 11 of 27 ATTACHMENT 1 -- Page 12 of 27 ATTACHMENT 1 -- Page 13 of 27 ATTACHMENT 1 -- Page 14 of 27 ATTACHMENT 1 -- Page 15 of 27 ATTACHMENT 1 -- Page 16 of 27 ATTACHMENT 1 -- Page 17 of 27 ATTACHMENT 1 -- Page 18 of 27 ATTACHMENT 1 -- Page 19 of 27 ATTACHMENT 1 -- Page 20 of 27 ATTACHMENT 1 -- Page 21 of 27 ATTACHMENT 1 -- Page 22 of 27 ATTACHMENT 1 -- Page 23 of 27 ATTACHMENT 1 -- Page 24 of 27 ATTACHMENT 1 -- Page 25 of 27 ATTACHMENT 1 -- Page 26 of 27 ATTACHMENT 1 -- Page 27 of 27 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