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2022-23 PWLC II, Inc Change Order 5 - L&L AD 89-1 Lands Maint Project 2018-30MEMORANDUM DATE: TO: FROM: RE: 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 ___________________________________________ ___ 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 ___ 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.: _____________________ Agreement term: Start Date ________________ End Date ________________ ___ Amount of Agreement, Amendment, Change Order, etc.: $____________________ REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! ___ Insurance certificates as required by the Agreement for Risk Manager approval Approved by: ______________________________ Date: _______________ ___ 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. __________________; Expires: __________________ ___ Requisition for a Purchase Order has been prepared (Agreements over $5,000) June 8, 2022 Jon McMillen, City Manager Dianne Hansen, Management Analyst Project No 2018-30; Citywide Landscape Maintenance Services, Landscape & Lighting District 89-1; PWLC II, Inc. June 7, 2022  ✔215-7004-60189; 101-2002- 07/01/2022 06/30/2023 721,010  On-File LF - LM Exp 3/2023 6/9/2022 0103876 4/30/2023  City of La Quinta CITY COUNCIL MEETING: June 7, 2022 STAFF REPORT AGENDA TITLE: APPROVE CHANGE ORDER NO. 5 TO CONTRACT WITH PWLC II, INC. FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES PROJECT NO. 2018-30 FOR A ONE-YEAR TERM EXTENSION AND RELATED COMPENSATION RECOMMENDATION Approve Contract Change Order No. 5 with PWLC II, Inc. for a one-year term extension through June 30, 2023, and a 7% increase in compensation, in an amount not to exceed $721,010 for fiscal year 2022/23, to provide Citywide Landscape Maintenance Services Project No. 2018-30; and authorize the City Manager to execute the change order. EXECUTIVE SUMMARY •The City contracts landscape maintenance services for all public medians, parkways and retention areas throughout the City. •PWLC II, Inc. has provided citywide landscape maintenance services for the Landscape and Lighting Assessment District 89-1 (L&L) since 2019, following a request for qualifications and proposal. •Change Order No. 5 (Attachment 1) requests a one-year term extension, a 7% increase in compensation, and winter overseeding at Fire Stations 70 and 93, for a total contract amount of $721,010 for fiscal year (FY) 2022/23. FISCAL IMPACT The total contract cost for FY 2022/23 would be $721,010, which includes a 7% increase of $47,079 from FY 2021/22 compensation and the cost of overseeding Fire Stations 70 and 93 for $1,375. The annual cost is allocated between L&L (215-7004-60112) and Fire Station funds (101-2002-60112). These costs are currently included in FY 2022/23 proposed operating budget. CONSENT CALENDAR ITEM NO. 7 51 FY Compensation FY Total Compensation Initial Contract 2019/20 $ 687,059 $ 687,059 Change Order No. 1 – change of areas 2020 ($ 4) $ 687,055 Change Order No. 2 – 15% decrease 2020/21 ($ 90,713) $ 596,342 Change Order No. 3 – additional service maintenance areas 2020/21 $ 14,094 $ 610,436 Change Order No. 4 – 5% increase 2021/22 $ 62,120 $ 672,556 Change Order No. 5 – 7% increase & Fire Stations 70 & 93 winter overseeding 2022/23 $ 47,079 $ 1,375 $ 721,010 The L&L operates in a deficit and is annually subsidized by the General Fund. The current subsidy projected for the 2022/23 budget is $1,257,964. BACKGROUND/ANALYSIS The L&L provides landscape and lighting maintenance services citywide. This includes all public medians, parkways, and retention areas. These services are necessary for roadway safety, water retention, and visual aesthetics. On April 11, 2019, a request for qualifications and proposal was advertised to provide citywide landscape maintenance services for the L&L; four proposals were received; and the contract was awarded to PWLC II, Inc. on May 21, 2019, based on their experience and qualifications. In February 2020, the City executed Change Order No. 1 to include additional maintenance areas, and removal of areas. In June 2020, the City executed Change Order No. 2 for a one-year term extension for FY 2020/21, and a 15% compensation decrease due to the COVID-19 pandemic. In December 2020, the City executed Change Order No. 3 which included additional maintenance areas. In May 2021, the City executed Change Order No. 4 for a one-year term extension for FY 2021/22, a 5% increase in compensation and additional service areas. Change Order No. 5 proposes a one-year term extension for FY 2022/23, which includes a 7% increase in compensation of $47,079 due to increased labor, materials and fuel costs, and $1,375 for winter over-seeding at Fire Stations 70 and 93, for a total contract amount $721,010. Based on the contractor’s performance and response time to correct issues, staff recommends Council approval of Change Order No. 5. 52 ALTERNATIVES Direct staff to prepare new bid documents and specifications to advertise the Citywide Landscape Maintenance Service Contract for 2022/23. Prepared by: Dianne Hansen, Management Analyst, Parks/Landscape Approved by: Bryan McKinney, Public Works Director/City Engineer Attachment: 1. Contract Change Order No.5 53