2022-25 Desert Concepts Construction (3) Amend 2 On-Call PW Maint Services Project 2022-16MEMORANDUM ta Qa�&a
DATE: December 5, 2023
TO: Jon McMillen, City Manager
FROM: Dianne Hansen, Management Analyst
RE: Desert Concepts Construction, Inc., On -Call Public Works Maintenance Services,
Amendment No 2
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
November 7, 2023 Consent 4
F-1_ City Manager's signing authority provided under the City's Purchasing Police
[Resolution No. 2023-008] 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. 2023-008] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
❑_ Bid F✓ . RFP F-1 RFQ El_ 3 written informal bids
QSole Source E 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, 2027
FL Amount of Agreement, Amendment, Change Order, etc.: $550,000 2023/24 FY
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: compliant myC01 (LM) Date: 12/5/2023
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)
ATTACHMENT 1
AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES
WITH DESERT CONCEPTS CONSTRUCTION, INC.
This Amendment No. 2 ("Amendment No. 2") to Agreement for Contract Services
("Agreement") with Desert Concepts Construction, Inc. is made and entered into as of the
7t" day of November, 2023 ("Effective Date") by and between the CITY OF LA QUINTA
("City"), a California municipal corporation and Desert Concepts ("Contracting Party").
RECITALS
WHEREAS, on or about May 1, 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, on or about June 26, 2023, the City and Contracting Party executed
Amendment No. 1 to the Agreement to amend Section 2.1 — Contract Sum and increased
the annual spending authority from $200,000 to $350,000 for the life of the Agreement,
encompassing the Initial and any Extended Terms; and
WHEREAS, the City utilized Contracting Party for unanticipated repairs at City
parks and retention areas due to storm damage from Tropical Storm Hilary; and
WHEREAS, due to these additional and unanticipated repairs, the City and
Contracting Party mutually agree to amend Section 2.1 Contract Sum of the Agreement
and increase the spending authority from $350,000 to a not to exceed amount of
$550,000 for fiscal year 2023/24 only. Contract Sum shall remain unchanged, at not to
exceed $350,000, for any other fiscal years under the Initial or 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 and
Fifty Thousand Dollars ($350, 000) for the life of the Agreement, encompassing
the Initial and any Extended Terms, except for fiscal year 2023/24, the total not
to exceed amount shall be Five -Hundred and Fifty Thousand Dollars ($550,000),
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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.
CITY OF LA QUINTA a California municipal corporation
Jon McMille , City Manager
ATTEST:
Monika Radeva, City C rk
APPROVED AS TO FORM:
iam H. Ihrke, City Attorney
Dated: l-- 1 73
t"
CONSULTANT: Desert Concepts Construction, Inc.
a California Corporation
B - Dated: 1Z"()S"'z5'
Na 6�4-1 720
Title: 9227110e /r
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 and Fifty Thousand Dollars
($350, 000) for the life of the Agreement, encompassing the Initial and any Extended
Terms; except for fiscal year 2023/24, the total not to exceed amount shall be Five -
Hundred and Fifty Thousand Dollars ($550,000), ("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): $550,000.00
"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
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CONSENT CALENDAR ITEM NO. 4
City of La Quinta
CITY COUNCIL MEETING: November 7, 2023
STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT
SERVICES WITH DESERT CONCEPTS CONSTRUCTION, INC. FOR ON -CALL PUBLIC
WORKS MAINTENANCE SERVICES PROJECT NO. 2022-16 TO INCREASE THE
CONTRACT AUTHORITY FOR UP TO $550,000 OF WORK IN FISCAL YEAR 2023/24
RECOMMENDATION
Approve Amendment No. 2 to Agreement for Contract Services with Desert Concepts
Construction, Inc. for on -call public works maintenance services Project No. 2022-16 to
increase the contract authority for up to $550,000 of work in fiscal year 2023/24; and
authorize the City Manager to execute the amendment.
EXECUTIVE SUMMARY
• Per the purchasing policy, combined amounts paid to vendors/contractors over
$50,000 must be approved by the City Council.
• In May 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 emergency, daily and/or deferred maintenance
in a timely manner.
• The proposed Amendment No. 2 will increase the spending authority for fiscal year
(FY) 2023/24 from $350,000 to a not to exceed amount of $550,000, as City parks
and retention areas were damaged from Tropical Storm Hilary (Hilary) and Desert
Concepts performed repairs in a timely manner.
FISCAL IMPACT
Funds are available in the FY 2023/24 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 2023/24 would increase from $350,000 to not exceed $550,000 for maintenance
services. Remaining years under the Initial Term or any Extended Terms of the Agreement
would remain at $350,000.
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BACKGROUND/ANALYSIS
The purchasing policy requires Council approval for purchases and/or contracts over
$50,000. To date in FY 2023/24 the City has utilized Desert Concepts for a variety of services
totaling over $330,000. Some of this work includes storm damage repairs from Hilary at
SilverRock Event Park ($19,600); the X-Park ($96,450) and the retention basin ($49,000)
adjacent to Adams Park.
Staff anticipates additional maintenance repairs in FY 2023/24 such as the trellises at the
Cove Oasis; fencing repairs along the Bear Creek Trail; exterior building paint maintenance
and refresh at City Hall, the Wellness Center, and Library; and roof repairs at City Hall, Fire
Station 70, and SilverRock. Desert Concepts can also address any unanticipated
maintenance items that may come up in the remainder of FY 2023/24.
In May 2022, Desert Concepts was awarded an agreement for On -Call Services. They have
a history of providing quality work, the ability to mobilize quickly, and will bid on prevailing
wage projects. They have performed a wide range of services including emergency repairs,
general construction, concrete sidewalk repairs, heating, ventilation and air conditioning
installations, electrical, plumbing, landscape, irrigation, and asphalt repairs.
In March 2023, Council approved Amendment No. 1, increasing the annual contract authority
from $200,000 to a not to exceed amount of $350,000, in order to keep up with the current
job market and rising costs.
If approved, Amendment No. 2 (Attachment 1) would allow staff to continue to utilize Desert
Concepts for emergency and maintenance services on an as -needed basis for a not to
exceed amount of $550,000 for FY 2023/24.
ALTERNATIVES
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. 2 with Desert Concepts Construction, Inc.
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