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Home My WebLink About2026-27 Horizon Lighting (3) Ch Ord 2 - L&L AD 89-1 Lighting Maintenance Project 2023-29MEMORANDUM CALIFORNIA - DATE: June 17, 2026------------ TO: Jon McMillen, City Manager FROM: Dianne Hansen, M&O Superintendent RE: Horizon Lighting, Inc., L&L Lighting Maintenance & On -Call Services, Project No 2023-29; CCO#2 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 June 16, 2026 C14 ❑ 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. ❑ 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 a ❑ Bid RFP 17 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 ❑✓ Agreement term: Start Date July 1, 2026 ❑ Amount of Agreement, Amendment, Change Order, etc. End Date $ 84,683 June 30, 2027 REMINDER: Signing authorities listed above are applicable on the apprepate Agreement amount, not individual Amendments or Change Orders! Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Oscar Mojica Date: 6/17/2026 .❑ NOTE: 1rJ i 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. 0111972 Expires: 12/31 /26 Requisition for a Purchase Order has been prepared (Agreements over $5,000) ta Qa i 9rev GEM ofthe DESERT — Sheet 1 of 2 AGREEMENT: CITYWIDE LIGHTING MAINTENANCE SERVICES, LANDSCAPE AND LIGHTING DISTRICT 89-1 PROJECT NO. 2023-29 CONTRACTOR: HORIZON LIGHTING, INC. CHANGE ORDER NO. 2 ************************************************************************ Pursuant to the terms of the original Agreement for Contract Services, you are hereby directed to make the herein described changes or do the following described work not included in the plans and specifications for this Agreement. Unless otherwise stated all work shall conform to the terms, general conditions, and special provisions of the original Agreement. *************************************************************** DESCRIPTION OF CHANGE As provided in Section 1245 (C) — Contract sum is amended as follows: the total contract amount of $81,925 is increased to $84,383 which includes a 3% contract increase of $2,458. 2. As provided in Section 1245 (B) — Contract terms; the City and Contractor agree to extend the term of the contract for the first (1) one-year extension, commencing on July 1, 2026, through June 30, 2027. ********************************************************************* Contract for FY 2024/25 $ 79,927 Change Order No 1 for FY 2025/26 included a 2.5% CPI annual increase $ 81,925 Change Order No 2 for FY 2026/27 included a 3% CPI annual increase $ 84,383 Revised Total Agreement: $ 246,235 ............................................................... 0 0 0 0 E E 0 0 0 0 0 0 .. 0 0 0 0 0 0 ....... 1 ON -CALL SERVICES SPENDING AUTHORITY On -call services is not guaranteed and must be requested and approved by the Contract Officer in advance. Work may include but is not limited to landscape restoration with modification to the irrigation system, replacement of trees, shrubs, ground cover, accident damage, vandalism repair, weed abatement, storm debris cleanup, irrigation repair and assessments, etc. for services outside the scope of the FY 2024/25 (approved 6118124 $ 200,000 FY 2025/26 $ 150,000 (approved 4115125) FY 2026/27 — 2030/31 $ 100,000 (approved 6118126) ********************************************************************* By reason of this change order the time of completion is adjusted as follows: -365- days added/deleted to contract time. The start date for these services shall be: July 1, 2026 Submitted By: Date: 06/17/26 Approved By: — — Date: Z17 202 Jon McMillen, City Manager *************************************************************** We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all services necessary to complete the above specified work, and hereby accept as full payment the amount shown above, which includes all direct and indirect overhead expenses for any delays. Accepted By: E6t Signed by: t C11 A& t.V� 28AM45OB4483. Title: President/CEO Print Name: Joel Hunter Print Company: Horizon Lighting, Inc. CONSENT CALENDAR ITEM NO. 14 City of La Quinta CITY COUNCIL MEETING: June 16, 2026 STAFF REPORT AGENDA TITI r- RECEIVE AND FILE CHANGE ORDER NO. 2 TO CONTRACT WITH HORIZON LIGHTING, INC. FOR CITYWIDE LIGHTING MAINTENANCE SERVICES WITHIN THE LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, PROJECT NO.2023-29, FOR FISCAL YEAR 2026/27; AND AUTHORIZE THE PUBLIC WORKS DEPARTMENT TO UTILIZE HORIZON LIGHTING, INC. AS SELECT SOURCE FOR ON -CALL ELECTRICAL SERVICES RECOMMENDATION Receive and file Change Order No. 2 to contract with Horizon Lighting, Inc. for Citywide Lighting Maintenance Services within the Landscape and Lighting Assessment District 89-1, Project No. 2023-29, for fiscal year 2026/27; and authorize the Public Works Department to utilize this vendor as a select source for on -call electrical services for up to $100,000, effective fiscal year 2026/27 through 2030/31. EXECUTIVE SUMMARY • The City contracts citywide landscape lighting maintenance services (lighting maintenance) within the Landscape and Lighting Assessment District 89-1 (L&L), Fire Stations, and parking lots. Section 1245 of the contract allows for extra work for lighting maintenance and improvements on an on -call, as needed basis. On June 18, 2024, following a Request for Qualifications (RFQ) competitive selection process, Council awarded a 7-year contract to Horizon Lighting, Inc. (Horizon) for citywide lighting maintenance services based on their qualifications and experience, effective fiscal year (FY) 2024/25, to be executed as 1-year terms based on satisfactory performance by Horizon, through FY 2030/31. Staff utilizes Horizon, as a select source throughout the duration of the contract, for additional lighting maintenance and electrical services withing the L&L areas for lighting improvements that are not included in the scope of the contracted L&L services on an on -call, as -needed basis, in accordance with Council -approved additional spending authority. • Staff seeks Council approval for additional spending authority to utilize this vendor as a select source for on -call electrical services within the L&L areas for the remainder of the available contract term, from FY 2027/28 through FY 2030/31. FISVHL 11VIV ►U i On June 18, 2024, Council approved a 7-year contract with Horizon, effective FY 2024/25, to be executed as 1-year terms based on satisfactory performance by the contractor, and a 5% 253 contingency, compounded year -over -year, to be used towards negotiating future annual compensation increases, not to exceed the lesser of 5% or the annual Consumer Price Index (CPI) for Riverside, San Bernardino, and Ontario, as detailed in the table below. Fiscal Year — L&L AD 89-1 Lighting Maintenance Services Estimated Cost Actual Cost FY 2024/25 $ 79,927 $ 79,927 FY 2025/26 (Change Order 1 — included compounded 2.5% CPI = $1,998) $ 79,927 $ 81,925 FY 2025/26 (Change Order 2 — includes compounded 3% CPI = $2,458) $ 79,927 $ 84,683 FY 2027/28 $ 79,927 TBD FY 2028/29 $ 79,927 TBD FY 2029/30 $ 79,927 TBD FY 2030/31 $ 79,927 TBD Contingency at 5% (compounded year -over -year for CPI per Section 1240) $ 91,278 - Grand Total: $650,767 TBD Costs for each FY are budgeted pursuant to the contract and are allocated in the L&L Fund 215-7004-60104. On -call services are not guaranteed work, however, utilizing the same contractor as a select source for extra work would ensure continuity and consistency of services. Work may generally include electrical repairs, LED conversions, new lighting installation, meter pedestal / panel replacements, electrical panel upgrades, etc. Further, staff continues to seek quotes from other vendors, when applicable per the City's Purchasing and Contracting Policy, to ensure quality of services and competitive pricing. Council approved additional spending authority for Horizon for FYs 2024/25 (June 18, 2024) and 2025/26 (April 15, 2025) for on -call lighting maintenance and/or electrical repairs within the L&L areas, beyond the contract's scope of work, on as needed basis. Staff requests Council approval for additional spending authority up to $100,000 for on -call electrical services effective FY 2026/27 through FY 2030/31, which is the remaining term of the contract, should it remain in effect, as detailed in the table below. Any unused spending authority would remain available and carryover each FY until expended or until the agreement expires, whichever occurs first. Fiscal Year On -Call Electrical Services Approved Spending Authority Actual Expenditures FY 2024/25 $200,000 $5,914 FY 2025/26 (*as of 6/11/2026) $150,000 $ 636* FY 2026/27 through FY 2030/31 $100,000 - Funds will be budgeted each FY for the remaining on -call spending authority pursuant to Council's approval, and will be expended against various accounts based on the type of work being performed (L&L 215-7004-60691, Parks 101-3005-60691, Buildings 101-3008-60691, and Capital Improvement Projects 404-0000-60188) for landscape maintenance, renovation, weed abatement, tree removal, and storm damage clean-up of city -owned properties. 254 BACKGROUND/ANALYSIS The City contracts citywide lighting maintenance within the L&L for monthly maintenance of landscaped areas within the City's right-of-way, Fire Stations, and parking lots. On April 2, 2024, an RFQ was posted for lighting maintenance within the L&L areas and on - call electrical services; 2 proposals were received; and the selection committee recommended contracting with Horizon based on their qualifications and experience. On June 18, 2024, Council awarded a 7-year contract to Horizon for lighting services, starting FY 2024/25 through FY 2030/31, to be executed as 1-year terms based on satisfactory performance by Horizon. In accordance with the contract terms, per section 1245, subsection (C), the City may authorize a maximum increase per FY, to be negotiated not to exceed the lesser of 5% or the annual CPI for Riverside, San Bernardino, and Ontario. In May 2025, staff executed Change Order No. 1 extending the initial term for 1 additional year, through FY 2025/26, and increased compensation by 2.5%. Staff will execute Change Order No. 2, included as Attachment 1, before the end of this FY to extend the term for 1 additional year, through FY 2026/27, and increase compensation by 3%. Section 1245 of the contract specifically allows for extra work for landscape renovation and improvements on an on -call, as needed basis. Staff utilizes Horizon, as a select source throughout the duration of the contract, for additional lighting maintenance and electrical services that are not included in the scope of the contracted L&L areas on an on -call, as -needed basis, in accordance with Council -approved additional spending authority, for unanticipated electrical repairs due to car accidents in the medians, building maintenance, electrical repairs or installation of lights or power outlets at city parks, etc. Council approved additional spending authority for Horizon for FYs 2024/25 and 2025/26 for on -call LMS, beyond the contract's scope of work, within the L&L areas, on as needed basis, which are detailed in the table above under the Fiscal Impact section of this report. Staff requests Council approval for additional spending authority of up to $100,000 for on -call electrical services effective FY 2026/27 through FY 2030/31, which is the remaining term of the contract, should it remain in effect. Any unused spending authority would remain available and carryover each FY until expended or until the agreement expires, whichever occurs first. ALTERNATIVF-R Council may elect not to authorize any additional spending authority or a reduced spending authority than requested. Prepared by: Dianne Hansen, Maintenance & Operations Superintendent Approved by: Tony Ulloa, Deputy Director Public Works Attachment: 1. Change Order No. 2 with Horizon 255