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CC - Approval of a Ninth Amendment to the Existing Agreement with Haynes Building Services to Increase the Compensation for a Previously Approved Extension of the Term of the Agreement
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Contact Person/Dept: Eric Mirzaian / Public Works
Phone Number: (310) 253-6444
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (12/30/15)
Department Approval: Charles D. Herbertson, Public Works Director/City Engineer (12/23/15)
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RECOMMENDATION
Staff recommends the City Council approve a ninth amendment to the existing agreement with Haynes Building Services (HBS) to increase the compensation for a previously approved extension of the term of the agreement.
BACKGROUND
On October 8, 2012, the City Council approved an amendment to the existing agreement to extend the term of the agreement for an additional three years (through September 30, 2015). With the City Council’s approval, this amendment was executed without a formal bidding process because HBS was awarded the agreement in 2007 through such a process and, at that time, HBS proposed additional services that were not provided in prior years and agreed to retain current pricing. As part of this approval, the City Council also authorized an additional two-year extension to the term of the agreement (October 1, 2015 through September 30, 2017) at the discretion of the Public Works and Parks, Recreation and Community Services Directors at an agreed upon amount based on the Consumer Price Index (CPI) at the time of negotiations.
DISCUSSION
When City Staff and HBS began negotiating the agreed upon term for the optional years, the CPI at the time was 1.1%. Since extension of this agreement in 2012, the State’s new Prevailing Wage Laws have had a direct impact on the operating costs for not only public agencies such as Culver City, but to City vendors and contractors as well. Thus, HBS has proposed the following tiered increase for the optional years of the agreement:
• 1.1% increase in accordance with the negotiated CPI for October, November and December 2015*
• 4% increase for January 1, 2016 through June 30, 2016**
• 3.5% increase for July 1, 2016 through September 30, 2017**
*Does not require Council approval since the proposed amount was part of the City Council’s contract approval at the October 8, 2012 meeting.
**Does require Council approval since the proposed amount is above and beyond the pre-approved CPI.
During the budget preparation process for Fiscal Year 2015/2016, the Public Works Department requested and was authorized a one-time enhancement to increase contractual services for janitorial needs by 4% without knowing at the time what the actual CPI would be when it came time for negotiations. As such, sufficient funding is available to cover the proposed 4% increase through June 30, 2016. During the budget preparation process for Fiscal Year 2016/2017 and 2017/2018, the Public Works Department will request a budget enhancement to cover the proposed increase of 3.5% through September 30, 2017.
Staff recommends accepting this proposal. HBS is very familiar with each City facility and has always provided a high level of service in terms of janitorial needs and workers to assist with special events at the Veteran’s Memorial Auditorium and Senior Center. HBS has also been a sponsor of the City’s recycling and “zero-waste” efforts for Fiesta La Ballona. Thus, staff recommends that the City Council approve the proposed increases, as indicated above, for the additional extension of the agreement, with the additional recommendation that prior to the expiration of the extension on September 30, 2017, a new Request for Proposals will be conducted in an attempt to seek competitive bids for these services.
FISCAL ANALYSIS
There are sufficient funds available in the City Council Adopted Budget for Fiscal Year 2015/2016 to cover the proposed increase of 4% through June 30, 2016. As stated before, Staff will request additional funding as part of the Fiscal Year 2016/2017 and 2017/2018 budget processes to cover the proposed 3.5% increase throughout the remainder of the contract term.
ATTACHMENTS
Copy of Haynes Building Services proposal
RECOMMENDED MOTION(S)
That the City Council:
1. Approve a ninth amendment to the existing agreement with Haynes Building Services to fund the previously approved two-year extension to the term of the agreement through September 30, 2017 based on the proposed prices per the staff report; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.