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2025-27 PWLC II, Inc - Lands Maint Refurbishment On-Call - Amendment 1 - Project 2022-15 PW Maint ServicesMEMORANDUM DATE: February 20, 2025 TO: Jon McMillen, City Manager FROM: Dianne Hansen, M&O Superintendent Cv Qa�tra CALIFORNIA RE: PWLC, Inc., On -Call Public Works Maintenance Services, Amendment No 1 Please list the Contracting Party / Vendor Name, 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 4 ❑ City Manager's signing authority provided under the City's Purchasing & Contracting Policy [Resolution No. 2023-008] for budget expenditures of $50,000 or less. R .❑ .❑ NOTE. City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for temporary employment positions. 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 W] RFP ❑ RFQ ❑ 3 written informal bids Sole Source ❑ Select Source ❑ Cooperative Procurement Requesting department shall check and attach the items below as appropriate, Agreement payment will be charged to Account No.: 215-7004-60691; 101-3005-60691 Agreement term: Start Date February 18, 2025 End Date June 30, 2027 Amount of Agreement, Amendment, Change Order, etc $ 700,000/term of the agreement z. Signing authorities listed above are applicable on the acrgregate Agreement amount, not individual Amendments or Change Orders! Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Oscar Mojica Date: 2/20/2025 Bonds (originals) as required by the Agreement (Performance, Payment, etc.) Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) Business License No. 1013876 Expires: 04/30/2025 Requisition for a Purchase Order has been prepared (Agreements over $5,000) AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH PWLC II, INC. This Amendment No. 1 ("Amendment No. 1") to Agreement for Contract Services ("Agreement") with PWLC, Inc. is made and entered into as of the 18'" day of February, 2025 ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and PWLC II, Inc. ("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, the City utilizes Contracting Party for tree removal, weed abatement, and landscape maintenance improvement projects, in City parks, medians, parkways 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 to increase spending authority from $200,000 to a total not to exceed amount of $300,000 for fiscal year 2024/25 only. Contract Sum shall remain unchanged, at $200,000 per fiscal year under the Initial and Extended Term. WHEREAS, pursuant to Section 3.4 Term, the City and Contacting party mutually agree to extend the term of the Agreement for an additional two -years from July 1, 2025 to June 30, 2027 ("Extended Term"); and 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 Two -Hundred Thousand Dollars ($200,000) for fiscal years 2022/23 and 2023/24; Three -Hundred Thousand Dollars ($300,000) for fiscal year 2024/25 only; and the Extended Term will remain at a total amount not to exceed of Two -Hundred Thousand Dollars ($200,000) per fiscal year. (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"). This Agreement is being extended for an additional two-year term 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 Contracting Party have executed this Amendment No. 1 to the Agreement 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 APPROVED AS TO FORM: SIGNED IN COUNTERPART WILLIAM H. IHRKE, City Attorney City of La Quinta, California PWLC II, INC PAUL RAOIEN, President Dated: 02/18/2025 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"). This Agreement is being extended for an additional two-year term 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 Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation t JQN-k 1 cMILLEN, City Manager City of La Quinta, California Dated: ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: r WILLIAM H. IHRKE, City Attorney City of La Quinta, California PWLC II, INC SIGNED IN COUNTERPART PAUL RASMUSSEN, 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 Two -Hundred Thousand Dollars ($200,000) for fiscal years 2022/23 and 2023/24; Three -Hundred Thousand Dollars ($300,000) for fiscal year 2024/25 only; and the Extended Term will remain at a total not to exceed amount of Two -Hundred Thousand Dollars ($200,000) per fiscal year ("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: $200,000.00 $200,000.00 $300,000.00 Extended Term: $200,000.00 $200,000.00 CONSENT CALENDAR ITEM NO. 4 City of La Quinta CITY COUNCIL MEETING' February 18, 2025 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH PWLC II, INC. FOR ON -CALL PUBLIC WORKS MAINTENANCE SERVICES RECOMMENDATION Approve Amendment No. 1 to Agreement for Contract Services with PWLC Inc, II. for on - call public works maintenance services to (1) increase the spending authority forfiscal year 2024/25 from $200,000 to $300,000, (2) extend the term for two additional years through June 30, 2027; 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 June 2022, PWLC II, Inc., (PWLC) was awarded an agreement for On -Call Public Works Maintenance Services (On -Call Services) to provide a variety of landscape maintenance services in city parks, medians and parkways. • Amendment No. 1 proposes to increase the contract spending authority in fiscal year (FY) 2024/25 from $200,000 to $300,000. The compensation will remain as originally approved for the Extended Term. FISCAL 11VI VAU i Funds are available in the FY 2024/25 budget in various maintenance accounts (101-3005; 101-3008; 215-7004; 101-2002; 202-3004; 202-3006-60691; and 501-0000-71103) and will be charged to the appropriate account depending on services rendered. If approved, the total amount that can be paid to PWLC for FY 2024/25 would increase from $200,000 to $300,000 for maintenance services. Extended terms for the life of the Agreement would remain at $200,000 per FY. BACKGROUND/ANALYSIS In June 2022, PWLC was awarded an agreement for On -Call Services with an annual spending authority up to $200,000 for a three-year term, with the option to renew for an additional two years. 159 PWLC provides quality work, competitive pricing, and will bid prevailing wage projects. They have performed a wide range of maintenance services that include leveling sports fields, tree removals, weed abatement, and storm cleanup. Staff will continue to seek quotes from other vendors to compare costs and ensure competitive pricing and quality services. The Purchasing Policy requires Council approval for purchases and/or contracts over $50,000. To date in FY 2024/25 the City has utilized PWLC to level sports fields at Colonel Mitchell Paige, weed abatement, and palm and tree removal services totaling over $50,000. The City annually prunes the palm trees located in the easement areas along Eisenhower Drive, from Calle Tampico to Calle Durango, and on Avenida Obregon, from the cul-de-sac in the Yucatan Cove to Calle Nogales. These palms were planted by Riverside County prior to the City's incorporation and are estimated to be 70 to 90 years old, some have visibly weak trunk structures, and some have rotted at the base. Thus, the City recommends removal of the palms. PWLC provided the lowest price per palm for removal, staff requests approval to increase the annual spending authority for PWLC from $200,000 to $300,000 for FY 2024/25 for these services. If approved, Amendment No. 1 (Attachment 1) would allow staff to continue to utilize PWLC for maintenance services on an as -needed basis for a not to exceed amount of $300,000 for FY 2024/25, and $200,000 annually for the extended two-year term. kLTERNATIVES Council may deny this request or direct staff to seek Council approval for any future work with PWLC, 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. 1 to Agreement for On -Call Maintenance Services with PWLC II, INC. 160