AGENDA REPORT
Meeting Date: January 24, 2023
Item Number:
To: Honorable Mayor & City Council
From: Michael Hensley, Deputy Director of Public Works, Operations Craig Crowder, Fleet & Facilities Manager
Judi Tamasi, Senior Management Analyst
Subject: AMENDMENT NO. 4 TO AN AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND MERCHANTS BUILDING
MAINTENANCE, LLC/CALIFORNIA FOR CUSTODIAL
MAINTENANCE SERVICES; AND
APPROVAL OF A CHANGE PURCHASE ORDER IN THE AMOUNT
OF $1,856,139 FOR A TOTAL NOT-TO-EXCEED AMOUNT OF
$3,475,341
Attachments: 1. Amendment No. 4
RECOMMENDATION
Staff recommends that City Council move to waive the formal bidding process for this amendment; approve Amendment No. 4 to Agreement #647-17 between the City of Beverly Hills and Merchants Building Maintenance, LLC for Custodial Maintenance Services; and approve a change purchase order in the amount of $1,856,139 for a total not-to-exceed amount of $3,475,341, in order to continue these critical services. Staff is evaluating the several comprehensive proposals received as part of the Request for Proposals process and wants to ensure that the service continue to be provided during the evaluation process.
INTRODUCTION
Currently, Merchants Building Maintenance, LLC (“Merchants”) provides custodial maintenance services to about 40 facilities (plus an additional nine mini-parks/open space areas), consisting of the City’s public buildings, parks, parking structures and commercial buildings. The proposed Amendment No. 4 to the City’s custodial agreement and change purchase order is to provide coverage for these critical facilities •
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HILLS
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Meeting Date: January 24, 2023
maintenance services during the current competitive Request for Proposals (RFP) process that is underway. DISCUSSION
City staff and contractors provide building maintenance services to approximately 65 facilities/locations1 with a total area of approximately 3,200,000 square feet. After a competitive selection process in 2017, City Council approved Agreement No. 643-17 with Merchants for Citywide custodial maintenance services. The commencement date of this one-year contract was January 1, 2018, with four optional, one-year extensions. On a monthly basis, Merchants invoices the City for regular janitorial services that are considered ongoing services and as-needed services that are not routine. The largest costs from this agreement are the monthly ongoing services ($172,922.99 for ongoing/regular services at City facilities [including parking structures] plus $53,827.99 for debris removal, trash receptacle service, and amenity care at City parks and open spaces, as of January 1, 2023). As-needed services vary and include, but are not limited to, pressure washing parking structures, additional consumables and supplies used by the Fire Department, cleaning before/during/after special events and additional cleanings to prevent the spread of the coronavirus. The original agreement outlines price escalations of 3.5 percent on an annual basis.
This contract was extended four times per the provisions of the original agreement, along with an additional extension through March 31, 2023, to further facilitate the bidding process. On September 26, 2022, the City published a Request for Proposals 22-350-16 for Custodial Maintenance Services at City properties. Several proposals were received. Staff is evaluating the comprehensive proposals and wants to ensure that the service continues to be provided during the evaluation process.
Due to the need for uninterrupted services, staff recommends City Council waive the bidding requirements for the amendment pursuant to Beverly Hills Municipal Code section 3-3-204. It is in the best interest of the City to execute this amendment in order to continue ongoing and responsive critical facilities maintenance services while the competitive proposal review process is completed.
If approved, the amendment would allow three-month extensions, if needed, through December 31, 2023. FISCAL IMPACT
The proposed amendment includes a new monthly cost for custodial services, escalated by 3.5% on January 1, 2023, a quarterly allowance for as-needed services, and a 10 percent contingency.
The proposed change purchase order amount of $1,856,139 is expected to cover services through the end of the fiscal year, if necessary. This number is the total estimated amount that may be needed for January through June 2023, beyond the existing purchase order amounts. The total estimated amount need for January through June 2023 is comprised of the monthly amount ($226,750.98) times six months, possible as-needed services for two quarters ($178,127 per quarter), plus 10 percent contingency on all items except parks debris removal/trash receptacle service/amenity care at City 1 This includes all types of maintenance provided by the City, not just custodial services. Includes seven mini-parks addressed under Merchants Amendment No. 1.
Meeting Date: January 24, 2023
parks and open spaces. However, staff anticipates completing the current RFP process and bringing a recommendation before City Council before the end of the fiscal year.
Funding for this purchase order is included in the existing operating budgets and does not require appropriations. The funding sources are’ the Capital Assets Fund (405 Facilities Maintenance), Parking Enterprise Fund (810 Parking Operations), and General Fund (001 Park Operations).
Shana Epstein, Director of Public Works
Approved By
Attachment 1
-1-
B0785-0001\2760927v3.doc
AMENDMENT NO. 4 TO AN AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND MERCHANTS BUILDING MAINTENANCE
LLC/CALIFORNIA FOR CUSTODIAL MAINTENANCE SERVICES
NAME OF CONTRACTOR: Merchants Building Maintenance, LLC/California
RESPONSIBLE PRINCIPAL OF
CONTRACTOR:
Wallace B. Reid, Regional Vice President
CONTRACTOR'S ADDRESS:
606 Monterey Pass Road
Monterey Park, CA 91754
Attention: Wallace B. Reid, Regional Vice President
CONTRACTOR’S E.I.N. / TAX I.D.: 95-4558242
CITY'S ADDRESS:
COMMENCEMENT DATE:
City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Shana Epstein, Director of Public Works
December 5, 2017
TERMINATION DATE:
December 31, 2020, unless extended pursuant to
Section 8(a) of the Agreement
December 31, 2021 (as extended pursuant to extension
letter, dated January 25, 2021)
December 31, 2022 (as extended pursuant to extension
letter, dated November 22, 2021)
March 31, 2023 (as extended pursuant to extension
letter, dated November 10, 2022, unless further
extended at CITY’s option pursuant to Section 8(a) of
the Agreement.
CONSIDERATION: Original Agreement: Not to exceed the amount set forth in CITY approved purchase orders at the rates set forth in Section 10 of the Agreement
Amendment No. 1: Additional $50,249 per month as
set forth in Section 10 of this Amendment for additional scope of services described in Section 8 of this
Amendment
Amendment No. 2: Amount per month: $161,823.73
plus $50,249.00 for a total of $212,072.73 (as of
January 1, 2021) as set forth in Section 10 of
Amendment No. 2 for additional scope of services
described in Section 8 of this Amendment.
Amendment No. 3: No additional consideration
Amendment.
DocuSign Envelope ID: EBF19D4D-A9F7-47B6-8065-86BBE0951569 -2-
B0785-0001\2760927v3.doc
Amendment No. 4 (commencing January 1, 2023):
Amount per month: $172,922.99 for ongoing/regular
services at CITY facilities (including parking structures) plus $53,827.99 (for debris removal, trash receptacle
service, and amenity care at CITY parks and open
spaces), for a total of $226,750.98.
CITY shall include an allowance in the not-to-exceed
amount of $178,127 per quarter for as-needed special
services and supplies.
Contingency for the above amounts shall not exceed
ten percent (10%).
Total not to exceed: The amount set forth in CITY
approved purchase orders
DocuSign Envelope ID: EBF19D4D-A9F7-47B6-8065-86BBE0951569 -3-
B0785-0001\2760927v3.doc
AMENDMENT NO. 4 TO AN AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND MERCHANTS BUILDING MAINTENANCE
LLC/CALIFORNIA FOR CUSTODIAL MAINTENANCE SERVICES
This Amendment No. 4 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and Merchants Building Maintenance, LLC/California (hereinafter called "CONTRACTOR") dated December 5, 2017 and identified as Contract No. 643-17, as amended by Amendment No. 1, dated September 15, 2020 and identified as Contract No. 494- 20, as amended by Amendment No. 2, dated February 16, 2021 and identified as Contract No. 34-21, as amended by Amendment No. 3, dated January 11, 2022 and identified as Contract No. 40-22 (collectively, the "Agreement").
R E C I T A L S
A. CITY entered into an Agreement with CONTRACTOR for custodial maintenance services, which was previously amended.
B. CITY and CONTRACTOR desire to further amend the Agreement to modify the Consideration, extend the Agreement and delete the COVID-19 vaccination or testing and record keeping requirements.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Termination Date set forth on the cover page of the Agreement shall be amended as set forth above.
Section 2. The Consideration set forth on the cover page of the Agreement shall be amended as set forth above.
Section 3. The following text shall be added to Section 8(a) Term of Contract:
“Notwithstanding anything in the Contract to the contrary, commencing January 1, 2023, the Scope of Services (as amended) will continue to govern the performance of services noted within until March 31, 2023. The City Manager or their designee on behalf of CITY may elect to DocuSign Envelope ID: EBF19D4D-A9F7-47B6-8065-86BBE0951569 -4-
B0785-0001\2760927v3.doc
extend the Contract in writing for three optional three-month periods in accordance with the Scope of Services (as amended). In no event shall the Term of the Contract extend beyond December 31, 2023.”
Section 4. Section 12 of the Agreement, CITY COVID-19 Vaccination or Testing, and Record Keeping Requirements shall be deleted from the Agreement.
Section 5. Attachment 2 to Section 8 “Additional Scope of Services “of the Agreement entitled “ACKNOWLEDGEMENT OF CITY VACCINATION AND RECORD KEEPING REQUIREMENTS AGAINST THE COVID-19 VIRUS” shall be deleted from the Agreement.
Section 6. Subsection 10B3 and Subsection 10H of Section 10, the Pricing Form shall be amended as attached hereto and incorporated herein.
Section 7. Except as specifically amended by this Amendment No. 4, the remaining provisions of the Agreement shall remain in full force and effect.
EXECUTED the _____ day of ____________ 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________
LILI BOSSE
Mayor of the City of Beverly Hills, California
ATTEST:
______________________(SEAL)
HUMA AHMED
City Clerk
CONTRACTOR: Merchants Building Maintenance,
LLC/California
WALLACE B. REID
Regional Vice President
[Signatures continue]
DocuSign Envelope ID: EBF19D4D-A9F7-47B6-8065-86BBE0951569 -5-
B0785-0001\2760927v3.doc
AMANDA HASS
Director of Business Development
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
SHARON L’HEUREUX DRESSEL
Risk Manager
MICHAEL V. HENSLEY
Deputy Director of Public Works - Operations
DocuSign Envelope ID: EBF19D4D-A9F7-47B6-8065-86BBE0951569 -6-
B0785-0001\2760927v3.doc
SECTION 10: PRICING FORM
Section 10B3: Cost of Services
Commencing January 1, 2023, total monthly base cost: $172,922.99 for ongoing/regular services at CITY facilities (including parking structures) plus $53,827.99 (for debris removal, trash receptacle service, and amenity care at CITY parks and open spaces), for a total of $226,750.98 (pursuant to Amendment No. 4).
Section 10H: Cost of Debris Removal, Trash Receptacle Service, and Amenity Care at City Parks and Open Spaces
Pricing for hardscape/pathway debris removal, trash receptacle service, and amenity care at CITY parks and open spaces is not to exceed $53,827.99 per month (pursuant to Amendment No. 4), subject to the existing provisions in the Agreement.
DocuSign Envelope ID: EBF19D4D-A9F7-47B6-8065-86BBE0951569 Certificate Of Completion
Envelope Id: EBF19D4DA9F747B6806586BBE0951569 Status: Sent Subject: Complete with DocuSign: Merchants Building Maintenance (643-17) Amendment No. 4 Source Envelope:
Document Pages: 6 Signatures: 6 Envelope Originator:
Certificate Pages: 3 Initials: 0 Erin Justus
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.169
Record Tracking
Status: Original
1/13/2023 1:33:10 PM
Holder: Erin Justus
[email protected]
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Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
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Amanda Haas
[email protected]
Director of Business Development
Merchants Building Maintenance
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Michael V. Hensley
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Shana E. Epstein
[email protected]
Director of Public Works
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Logan Phillippo
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Senior Management Analyst
City of Beverly Hills
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