| | | | | | | | Agenda Item - 3.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Lisa L. Kim
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of Amendment No. 1 to the agreement with Merchants Building Maintenance for custodial services. (Cost: $75,000) (Action Item) | Date: | 4/25/2023 |
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| | | | | | | | OBJECTIVE
For the City Council to approve Amendment No. 1 to the existing agreement with Merchants Building Maintenance for custodial services and jail cleaning by increasing the cost to $25,000 for the remaining of the current year and for two additional option years for a total increase of $75,000. |
| | | | | | | | BACKGROUND
On September 10, 2020, City Council approved a contract with Merchants Building Maintenance, LLC, to provide custodial services at the following locations: (1) City's jail facility, (2) five Police substations, (3) Buena Clinton Family Resource Center, and (4) Magnolia Family Resource Center. The approved contract term is three (3) years for a total of $204,721.34 with an option to extend the contract for an additional two (2) years at $70,468.99 per option year. |
| | | | | | | | DISCUSSION
Due to increased cleaning and disinfecting requirements during the height of the pandemic, as well as an increase in on-call cleaning services, staff has reached the contract's monetary threshold. Consequently, Public Works is requesting an increase in the amount of $25,000 to the existing agreement to accommodate citywide departmental invoices through August 31, 2023. Furthermore, in response to increased cleaning requirements, Public Works is requesting an increase of $25,000 per option year. |
| | | | | | | | FINANCIAL IMPACT
Amendment No. 1 to the existing agreement with Merchants Building Maintenance will result in an overall increase of $75,000 for the entire five-year duration of the contract term. Among which $25,000 will be added to the current contractual term through August 31, 2023, and $25,000 per year for the two option years. The $25,000 increase to the current term will be covered by the existing operating budget, and the increase in future years will be included in the proposed Fiscal Years 2023-24 and 2024-25 budget. |
| | | | | | | | RECOMMENDATION
It is recommended that City Council:
- Approve Amendment No. 1 to the agreement with Merchants Building Maintenance, LLC, in the amount of $25,000 for the remainder of the three year term;
- Approve an increase of $25,000 for each of the two option years, for a total increase of $75,000; and
- Authorize the City Manager to execute the amendment, including each option year extension.
By: Phillip Carter, Facilities Manager
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Amendment No. 1 | 4/26/2023 | Agreement | AMEND._1-Merchants_Building_Maintenance_FY23-1.pdf |
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