2025-27 Desert Concepts Construction (4) Amend 3 On-Call PW Maint Services Project 2022-16MEMORANDUM
DATE: February 19, 2025
TO: Jon McMillen, City Manager
FROM: Dianne Hansen, Management Analyst
RE: Desert Concepts Construction, Inc., On -Call Public Works Maintenance Services,
Amendment No 3
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
February 18, 2025 Consent 3
QCity Manager's signing authority provided under the City's Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
F-1_ 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 aoalv):
J� Bid _ ✓Q RFP LJ_ RFQ _Q 3 written informal bids
QSole Source F-1 Select Source F-1 Cooperative Procurement
Reauestina department shall check and attach the items below as appropriate:
✓Q Agreement payment will be charged to Account No.: 215-7004-60691; 101-3000
F L Agreement term: Start Date February 18, 2025 End Date June 30, 2027
Amount of Agreement, Amendment, Change Order, etc.: $700,000 2024/25 FY
REMINDER; Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
FL Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: Oscar Mojica _ _ _ Date: 2/19/2025
aBonds (oriciinals) 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)
I% I
a
Business License No. 0006902
Expires: 1 /31 /2026
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT SERVICES
WITH DESERT CONCEPTS CONSTRUCTION, INC.
This Amendment No. 3 ("Amendment No. 3") to Agreement for Contract Services
("Agreement") with Desert Concepts Construction, Inc. is made and entered into as of the
18th day of February 2025 ("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 Public Works Maintenance Services. The term of the
Agreement expires on June 30, 2025; and
WHEREAS, on or about March 21, 2023, the City and Contracting Party executed
Amendment No. 1 to the Agreement amending Section 2.1 — Contract Sum and Exhibit B
— Schedule of Compensation to increase the annual spending authority from $200,000 to
$350,000 per fiscal year for the life of the Agreement, encompassing the Initial and any
Extended Terms; and
WHEREAS, on or about November 7, 2023, the City and Contracting Party
executed Amendment No. 2 to the Agreement amending Section 2.1 — Contract Sum and
Exhibit B — Schedule of Compensation to increase the annual spending authority for fiscal
year 2023/24 only from $350,000 to $550,000 to complete unanticipated repairs at City
parks and retention areas due to damages caused by Tropical Storm Hilary; and
WHEREAS, the City utilizes Contracting Party for minor capital improvement
projects, sink hole and curb/gutter repairs, and in City parks and retention areas; and
WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1
Contract Sum and Exhibit B — Schedule of Compensation of the Agreement and increase
the spending authority from $350,000 to $700,000 for fiscal year 2024/25; due to
unanticipated maintenance repairs needed in fiscal year 2024/25 to sidewalks, streets,
fences, electrical, park equipment, and on -call construction services needed for Capital
Improvement Program projects; and
WHEREAS, the City and Contacting party mutually agree to extend the term of the
Agreement for two additional years in accordance with Section 3.4 — Term, from July 1,
2025 to June 30, 2027; and to amend Section 2.1 Contract Sum and Exhibit B — Schedule
of Compensation increasing the compensation amount from $350,000 to $500,000 per
fiscal year for the Extended Term.
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 as follows:
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 fiscal year 2022/23-1 Five Hundred and Fifty Thousand Dollars
($550,000) for fiscal year 2023/24; Seven Hundred Thousand Dollars ($700,000) for fiscal
year 2024/25; and Five Hundred Thousand Dollars ($500,000) per fiscal year for the
Extended Term of the Agreement (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.
3. Section 3.4 Term is amended to read as follows:
3.4 Term. Unless earlier terminated in accordance with the provisions of Article
8.0 of this Agreement, the term of this agreement shall commence on May 1, 2022, and
terminate on or before June 30, 2025 ("Initial Term"). Amendment No. 3 shall extend the
term of this Agreement from July 1, 2025 through June 30, 2027 ("Extended Term"). This
Agreement may not be extended any further.
In all other respects, the Original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Consultant have executed this Amendment
No. 3 to the Agreement for Contract Services on the respective dates set forth below.
CITY OF LA QUINTA
a California municipal corporation
SIGNED IN COUNTERPART
JON McMILLEN, City Manager
City of La Quinta, California
Dated:
ATTEST:
SIGNED IN COUNTERPART
MONIKA RADEVA, City Clerk
City of La Quinta, California
SIGNED IN COUNTERPART
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
DESERT CONCEPTS CONSTRUCTION, INC.
Dated: �- 13 25
IN WITNESS WHEREOF, the City and Consultant have executed this Amendment
No. 3 to the Agreement for Contract Services on the respective dates set forth below.
CITY OF LA QUINTA
a California municipal corporation
cMILLEN, City Manager
City of La Quinta, California
Dated: U Zo2�
ATTEST:
MONIKA RADEVA, City rk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRK , City Attorney
City of La Quinta, California
DESERT CONCEPTS CONSTRUCTION, INC.
SIGNED IN COUNTERPART
Julio Castro, President
Dated:
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) in fiscal year 2022/23, Five -Hundred and Fifty Thousand ($500,000) in fiscal
year 2023/24, Seven -Hundred Thousand Dollars ($700,000) in fiscal year 2024/25 , and
Five -Hundred Thousand ($500,000) per fiscal year for the Extended Term ("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.
"Not to exceed" Year 1 (FY2022/23)
"Not to exceed" Year 2 (FY2023/24)
"Not to exceed" Year 3 (FY2024/25)
"Not to exceed" Year 4 (FY2025/26)
"Not to exceed" Year 5 (FY2026/27)
Initial Term:
$350,000.00
$550,000.00
$700,000.00
Extended Term:
$500,000.00
$500,000.00
CONSENT CALENDAR ITEM NO. 3
City of La Quinta
CITY COUNCIL MEETING' February 18, 2025
STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT
SERVICES WITH DESERT CONCEPTS CONSTRUCTION, INC. FOR ON -CALL PUBLIC
WORKS MAINTENANCE SERVICES
RECOMMENDATION
Approve Amendment No. 3 to Agreement for Contract Services with Desert Concepts
Construction, Inc. for on -call public works maintenance services to (1) increase the spending
authority for fiscal year 2024/25 from $350,000 to $700,000, (2) extend the term for two
additional years through June 30, 2027, and increase the spending authority for the
extended term from $350,000 to $500,000 per fiscal year; 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, following a competitive Request for Proposals (RFP) procurement,
Desert Concepts Construction, Inc. (Desert Concepts) was awarded an agreement for
on -call public works maintenance services (On -Call Services). In March 2023, Council
approved Amendment No. 1 increasing the spending authority from $200,000 to
$350,000 per fiscal year (FY).
• In November 2023 Council approved Amendment No. 2 increasing the spending
authority for FY 2023/24 from $350,000 to $550,000 to address damages at City
parks and retention areas caused by Tropical Storm Hilary (Hilary).
• Desert Concepts is able to perform a variety of Public Works repairs in streets,
sidewalks, retention basins, facilities, and parks.
• Amendment No. 3 proposes to increase the spending authority from $350,000 to
$700,000 for FY 2024/25, and up to $500,000 for the two-year extended term ending
June 30, 2027.
APACT
Funds are available in various Public Works 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 in FY 2024/25
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would increase from $350,000 to not to exceed $700,000 for maintenance services, and up
to $500,000 per FY for the extended two-year term of the agreement.
BACKGROUND/ANALYSIS
In May 2022, following a competitive RFP procurement, Desert Concepts was awarded an
agreement for On -Call Services for up to $200,000 per fiscal year for the initial three-year term
and an optional two-year extension. In March 2023, Council approved Amendment No. 1
increasing the spending authority from $200,000 to $350,000 per fiscal year for the life of the
agreement, encompassing the initial and any extended terms.
In November 2023, Council approved Amendment No. 2 increasing the spending authority
from $350,000 to $550,000 for FY 2023/24 only to address damages at City parks and
retention areas caused by Hilary.
The Purchasing Policy requires Council approval for purchases and/or contracts over $50,000.
The City has utilized Desert Concepts for a variety of services totaling over $330,000 in FY
2024/25. Some of this work includes small Capital Improvement Program (CIP) projects such
as curb repairs on Highway 111, sink hole repairs on Washington Street, concrete repairs to
the Bear Creek Trail path, and drainage at the Civic Center Campus.
Desert Concepts provides quality work, competitive pricing, has the ability to mobilize quickly,
and will bid prevailing wage projects. They have performed a wide range of services including
general construction, emergency sink holes, asphalt, concrete curb and gutter, sidewalk
repairs, HVAC, electrical, and plumbing repair. Desert Concepts can address unanticipated
emergency repairs and maintenance items in a timely manner. Staff will continue to seek
quotes from other vendors to compare costs and ensure competitive pricing and quality
services.
Additional maintenance repairs are anticipated in FY 2024/25 for sidewalks, streets, fences,
electrical, and park equipment and Public Works anticipates the need for on -call construction
services for one or more CIP projects. Proposed Amendment No. 3 requests approval to
increase the spending authority for FY 2024/25 from $350,000 to $700,000, and up to
$500,000 per fiscal year for the two-year extended term.
If approved, Amendment No. 3 (Attachment 1) would allow staff to continue to utilize Desert
Concepts for emergency and maintenance services on an as -needed basis.
.i i CRNATIVEb
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, Maintenance & Operations Superintendent
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer
Attachment: 1. Amendment No. 3 to Agreement for On -Call Public Works
Maintenance Services with Desert Concepts Construction, Inc.
154