2022-25 Desert Concepts Construction (2) Amend 1 On-Call PW Maint Services Project 2022-16MEMORANDUM ta Qa�&a
DATE: June 22, 2023
TO: Jon McMillen, City Manager
FROM: Dianne Hansen, Management Analyst
RE: Desert Concepts Construction, Inc., Amendment 1 On -Call Public Works Maintenance
Services - Project 2022-16
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
Approved by City Council on March 21, 2023 Consent 7
F-1_ City Manager's signing authority provided under the City's Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
Department Director's or Manager's signing authority provided under the City's
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
❑_ Bid n✓ RFP n RFQ El_ 3 written informal bids
QSole Source 11 Select Source El Cooperative Procurement
Reauestina department shall check and attach the items below as auurouriate:
�✓_ Agreement payment will be charged to Account No.: 215-7004-60691; 101-3000
❑✓u Agreement term: Start Date July 2, 2022 End Date June 30, 2025
FL Amount of Agreement, Amendment, Change Order, etc.: $350,000 per year
REMINDER; Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
❑✓
MM
Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: On File LF (LM) Date: 6/22/2023
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is
required pursuant FPPC regulation 18701(2)
Business License No. 0006902
Expires:
1 /31 /2024
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES
WITH DESERT CONCEPTS CONSTRUCTION, INC.
This Amendment No. 1 ("Amendment No. 1") to Agreement for Contract
Services ("Agreement") with Desert Concepts Construction, Inc. is made and
entered into as of the 215t day of March, 2023 ("Effective Date") by and
between the CITY OF LA QUINTA ("City"), a California municipal corporation
and Desert Concepts Construction, Inc. ("Contracting Party").
RECITALS
WHEREAS, on or about June 30, 2022, the City and Contracting Party
entered into an Agreement to provide On -Call Maintenance Services. The
term of the Agreement expires on June 30, 2025; and
WHEREAS, the City and Contracting Party mutually agree to amend
Section 2.1 Contract Sum of the Agreement for a total not to exceed amount
of $350,000 per year encompassing the initial and any extended terms.
NOW THEREFORE, in consideration of the mutual covenant herein
contained, the parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and
promises hereinafter contained, and for good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:
1. Section 2.1 Contract Sum is amended to read:
2.1 Contract Sum. For the Services rendered pursuant to this
Agreement, Contracting Party shall be compensated in accordance with
"Exhibit B" (the "Schedule of Compensation") in a total amount not to
exceed Three- Hundred Fifty Thousand Dollars ($350,000) per year
for the life of the Agreement, encompassing the initial and any
extended terms (the 'Contract Sum"), except as provided in Section
1.7.
2. "Exhibit B" - Schedule of Compensation is amended as listed in
"Exhibit B", attached hereto and incorporated by this reference.
In all other respects, the Original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Consultant have executed this
Amendment No. 1 to the Agreement for Contract Services on the respective
dates set forth below.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the dates stated below.
CITY OF LA QUINTA,
a California Municipal Corporation
,---30 CMILLEN, City Manager
City of La Quinta, California
Dated: Z
ATTEST:
MONIKA RADOVA, dty Clerk
La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
-17-
CONTRACRNG PARTY:
M
Name: 1 Adflo Castro
Title: i / President
By -
Name:
Title:
Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services, provided for
in Section 2.3 of this Agreement, the maximum total compensation to be paid
to Contracting Party under this Agreement is not to exceed Three- Hundred
Fifty Thousand Dollars ($350,000.00) per year for the life of the Agreement,
encompassing the initial and any extended terms ("Contract Sum"). The
Contract Sum shall be paid to Contracting Party in an amount identified in
Contracting Party's schedule of compensation attached hereto for the work
tasks performed and properly invoiced by Contracting Party in conformance
with Section 2.2 of this Agreement.
Initial Term:
"Not to exceed" Year 1 (FY2022/23): $350,000.00
"Not to exceed" Year 2 (FY2023/24): $350,000.00
"Not to exceed" Year 3 (FY2024/25): $350,000.00
Possible Extended Term:
"Not to exceed" Year 4 (FY2025/26): $350,000.00
"Not to exceed" Year 5 (FY2026/27): $350,000.00
CONSENT CALENDAR ITEM NO. 7
City of La Quinta
CITY COUNCIL MEETING- March 21, 2023
STAFF REPORT
AGENDA TITLi-. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT
SERVICES WITH DESERT CONCEPTS CONSTRUCTION, INC. FOR ON -CALL PUBLIC
WORKS MAINTENANCE SERVICES AND INCREASE THE CONTRACT AUTHORITY
FOR UP TO $350,000 OF WORK PER FISCAL YEAR
RECOMMENDATION
Approve Amendment No. 1 to Agreement for Contract
Construction, Inc. for on -call public works maintenance
authority for up to $350,000 of work per fiscal year; an
-AECUTIVE SUMMARY
d
Per the purchasing policy, combined amounts paid to vendors/contractors over
$50,000 must be approved by the City Council.
• In June 2022, Desert Concepts Construction, Inc., (Desert Concepts) was awarded
an agreement for on -call public works maintenance services (On -Call Services).
This provides flexibility to complete daily and/or deferred maintenance in a timely
manner.
• Staff requests to increase contract authority from $200,000 per fiscal year (FY) to a
not to exceed amount of $350,000 per FY.
FISCAL IMPACT
Funds are available in the 2022/23 FY budget in various maintenance accounts (101-3005;
101-3008; 215-7004; 101-2002; 202-3004; 202-3006-60691; and 501-0000-71103; 601-
0000-60660; 101-7003-60103) and will be charged to the appropriate account depending
on services rendered. If approved, the total amount that can be paid to Desert Concepts for
FY 2022/23 would increase from $200,000 to not to exceed $350,000 for maintenance
services.
BACKGROUND/ANALYSIS
The purchasing policy requires Council approval for purchases and/or contracts over
$50,000. To date in FY 2022/23 the City has utilized Desert Concepts for a variety of services
95
totaling $170,000, staff anticipates additional maintenance repairs such as stucco repair,
painting, electrical repair, concrete, and roof repairs at the Library for $38,000.
In June 2022, Desert Concepts was awarded an agreement for On -Call Services. They have
a history of providing quality work, ability to mobilize quickly, and will bid prevailing wage
projects. In recent years they have performed a wide range of services including general
construction, concrete sidewalk repairs, heating, ventilation and air conditioning installations,
electrical, plumbing, landscape, irrigation, and asphalt repairs, and other tasks including
emergency repairs.
In the current job market, it is difficult to keep up with deferred and daily maintenance.
Many maintenance service tasks for buildings, parks, landscape renovations, and streets
and stormwater, require vendors to be certified by the Department of Industrial Relations
(DIR) and/or licensed contractors with appropriate insurance requirements to perform the
work. It is becoming more difficult to locate vendors that meet the requirements, are willing
to bid prevailing wage projects, and to obtain proposals.
If approved, Amendment No. 1 (Attachment 1) would allow staff to utilize Desert Concepts
for maintenance services on an as -needed basis for a not to exceed amount of $350,000
for FY 2022/23.
kLTERNATIVES
Council may deny this request or direct staff to seek Council approval for any future work
with Desert Concepts, however, staff does not recommend this as it could adversely affect
work schedules.
Prepared by: Dianne Hansen, Management Analyst
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer
Attachment: 1. Amendment No. 1 to Agreement for On -Call Maintenance
Services with Desert Concepts Construction, Inc.
.,