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HomeMy WebLinkAboutE-07 Staff Report - Ultimate Maintenance Third AmendmentCONSENT ITEM E-7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: APRIL 1, 2019 SUBJECT: APPROVAL OF THIRD AMENDMENT FOR MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF AZUSA AND ULTIMATE MAINTENANCE SERVICES, INC. BACKGROUND: The City has contracted with Ultimate Maintenance Services, Inc. for janitorial services since June 1, 2015. Subsequently, a one-year extension to the contract extended service to May 31, 2019. With the contract expiration drawing near, there is one more one-year extension available. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Approve the Third Amendment to the Maintenance Services Agreement between the City of Azusa and Ultimate Maintenance Services, Inc. for City-wide janitorial services; and 2)Authorize the City Manager to execute the contract amendment, in a form acceptable to the City Attorney, on behalf of the City. ANALYSIS: On April 20, 2015, City Council awarded the City-wide janitorial services to Ultimate Maintenance Services, Inc. Subsequently, City Council approved the first and second amendments to the contract, which added additional responsibilities, increased compensation, and extended the contract to May 31, 2019. With the Amendment to the contract set to expire, the City purchasing policy requires a one-year extension of the contract be considered by City Council. Ultimate Maintenance Services, Inc. has been providing quality janitorial services and has hired local employees to oversee the janitorial maintenance of City facilities. The Third Amendment extends the contract through May 31, 2020, utilizing the final available one-year extension. APPROVED CITY COUNCIL 4/1/2019 Third Amendment to Maintenance Contract April 1, 2019 Page 2 FISCAL IMPACT: There is no fiscal impact for extending the contract for one additional year. Prepared by: Reviewed and Approved: Nikki Rosales Daniel Bobadilla, P.E. Senior Management Analyst Director of Public Works/City Engineer Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1) Third Amendment to Maintenance Services Agreement 1 THIRD AMENDMENT TO MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF AZUSA AND ULTIMATE MAINTENANCE SERVICES, INC. FOR CITY-WIDE JANITORIAL SERVICES ARTICLE 1. PARTIES AND DATE This third amendment to the Maintenance Services Agreement (“Third Amendment”) is entered this 1st day of June, 2019, by and between the City of Azusa (“City”) and Ultimate Maintenance Services, Inc. (“Contractor”). ARTICLE 2. RECITALS 2.1 WHEREAS, the City and Contractor entered into a three year Maintenance Services Agreement dated June 1, 2015 (“Agreement”) for Contractor to provide City-Wide janitorial services (“Services”) to the City of Azusa; and 2.2 WHEREAS, the City and Contractor entered into a First Amendment to the Maintenance Services Agreement dated August 1, 2017, which increased service levels and compensation; and 2.3 WHEREAS, the City and Contractor entered into a Second Amendment to the Maintenance Services Agreement dated June 1, 2018, which increased service levels, increased compensation and extended the contract to May 31, 2019; and 2.4 WHEREAS, Section 3.1.2 of Agreement requires written approval of an additional one year extension of the contract term; and 2.5 WHEREAS, the City and Contractor have mutually agreed to extend the contract for one year or until May 31, 2020; and NOW, THEREFORE, THE PARTIES DO HEREBY AGREE TO THE FOLLOWING: 1. 3.1. Scope of Services and Terms. The first paragraph of Section 3.1.2 is hereby replaced, in its entirety, with the following: 3.1.2 Term. The term of this Agreement shall be from June 1, 2015 to May 31, 2020, as allowed by adding a second one-year extension, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services. Attachment 1 2 2. Continuing Effect of Agreement: Except as amended by this Third Amendment, all provisions of the Agreement as amended by the First and Second Amendments shall remain unchanged and in full force and effect. From and after the date of this Second Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by the First and Second Amendments. 3. Adequate Consideration: The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Second Amendment. 4. Counterparts: This Second Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. SIGNATURES ON NEXT PAGE 3 IN WITNESS WHEREOF, City and Contractor have executed this Third Amendment as of the date first written above. CITY OF AZUSA Ultimate Maintenance Services, Inc. By: By: Joseph Romero Rocha Claudia Salomon Mayor Corporate Secretary Attest: By: Jeffrey Lawrence Cornejo, Jr. City Clerk Approved as to Form: By: Best Best & Krieger LLP City Attorney