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HomeMy WebLinkAbout25B - AGMT - CUSTODIAL SRVSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE. DECEMBER 15, 2015 TITLE: AGREEMENT AMENDMENT WITH XANADU SERVICE SYSTEM, INC FOR CUSTODIAL SERVICES IN PARK BUILDINGS {STRATEGIC PLAN NO. 6, 1B} � I "') L '�_ CITY MANAGE RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 ®' Reading ❑ ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement with Xanadu Service System, Inc. for custodial services in park buildings for $43,638.32, for a term from January 1, 2016 to May 31, 2016, subject to non - substantive changes approved by the City Manager and the City Attorney. DISCUSSION On February 20, 2014 the City issued a request for proposal for custodial services in park restrooms and park buildings. On May 6, 2014, Xanadu Service System, formerly Bell Building Maintenance, was awarded the contract for park restrooms and ABM was awarded the contract for park buildings. On November 2, 2015 the City received a letter from ABM requesting an increase to their monthly compensation to account for the increases in costs that they are facing, including account specific equipment, chemicals, State minimum wages, employer insurance rates, workers compensation and the Affordable Health Care Act. As a result of this request, City Staff reviewed departmental budget information and determined that an increase to the compensation for the vendor is not possible. Therefore staff contacted Xanadu, as they had also submitted a proposal for the contract that ABM was awarded, and negotiated for Xanadu to complete the term of ABM's contract while City Staff issues a new request for proposal. The terms of the negotiation are for Xanadu to perform services at the cost originally proposed plus an additional amount for sites that have been added since the proposal was originally submitted. The difference in cost between ABM and Xanadu is $20,274.55 in savings for the remainder of the original term. 2513-1 Agreement Amendment with Xanadu Service Systems, Inc. December 15, 2015 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets), Strategy B (Equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users). FISCAL IMPACT Funds are available in the PRCSA Park Maintenance, Maintenance & Repairs Buildings & Grounds account (no, 01113250-62320) for the following fiscal year: FY 2015 -2016 - $43,638.32. U �U/ rot Gerard Mouet, Executi a Director Parks, Recreation and Community Services Agency EXHIBIT: Agreement APPROVED AS TO FUNDS AND ACCOUNT: Francis-do Ge Executive Director Finance and Management Services Agency � 25B -2 SECOND AMENDMENT TO CUSTODIAL SERVICES AGREEMENT THIS SECOND AMENDMENT TO CUSTODIAL SERVICES AGREEMENT is entered into this 15TH day of December 2015, by and between Xanadu Service System, Inc. ( "Xanadu "), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On June 1, 2014, the City entered into Agreement #A- 2014 -105 with Bell Building Maintenance Company, Inc. to provide janitorial and custodial services for park restrooms in Districts 1, 2, 3 and 4 for a one -year term with two one -year options exercisable by the City. B. By letter dated May 27, 2015, the City exercised the first option and extended the term of the Agreement for an additional one -year period, from June 1, 2015 to May 31, 2016. C. Effective June 1, 2015, Bell Building Maintenance Company merged with Xanadu and began doing business as Xanadu Service System, Inc. In view of this change, on June 12, 2015, the City entered into a First Amendment to Custodial Services Agreement #A- 2014 - 105 -01b with Xanadu to adjust the entity references and notice information accordingly: D, The Agreement remains in effect, and the parties now seek to further amend the Agreement to expand the scope of services and the compensation to be expended, under the Agreement for the remainder of the term in support of the expanded services. The Parties therefore agree: 1. Section I., SCOPE OF SERVICES, is amended to include custodial services at the additional City locations appearing on Exhibit A. 2. Section 3, COMPENSATION, is amended to include an additional $43,638.32 in support of the scope of services, as amended, and as detailed in Exhibit A. Except as modified by this Second Amendment, and all prior amendments, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Custodial Services Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA MARIA D, RUIZAR DAVID CAVAZOS Cleric of the Council City Manager -- additional signatures on following page-- Page 1 of 2 25B -3 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney JOHN M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: XANADU SERVICE SYSTEM, INC. 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