A2447.SRMG
CITY OF SIMI VALLEY
MEMORANDUM
J
une 3, 2024
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: APPROVAL OF THE FIRST CONTRACT AMENDMENT FOR THE ARMED FORCES BANNER PROGRAM, SPECIFICATION NO. SV 22-14
STAFF RECOMMENDATION
1. A
pprove the first contract a mendment with Wonderful Things, Inc ., for the Armed Forces Banner Program, Specification No. SV 22- 14 extending the term for two (2) years from July 1, 2024, to June 30, 2026, and increasing the not-to-exceed amount by $74,115.40, for a total not-to-exceed amount of $145,586.40; and,
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms.
BACKGROUND AND OVERVIEW
O
n March 2, 2022, the Public Works Department solicited bids for the Armed Forces Banner Program, which includes producing banners requested by residents for active, or fallen military personnel, and installing them for the Memorial Day and Veterans Day holidays. On April 1, 2022, the City Manager awarded a contract to Wonderful Things, Inc. for the Armed Forces Banner Program, Specification No.
SV 22-14 in the amount of $71,471 for a two (2) year term from April 5, 2022, to June 30, 2024, with the option to extend for two (2) additional two (2) year terms. The contract term will expire on July 1, 2024, and staff seeks to extend the term of the contract for an additional two (2) years. Staff recommends the City Council approve this first contract amendment.
FINDINGS AND ALTERNATIVES
T
he City has contracted with Wonderful Things, Inc. , and staff is satisfied with their product and service and wishes to extend the contract for one (1) additional two- year term. In accordance with the contract , unit prices shall be increased by 3.7 % based on the percent change in the Consumer Price Index for the Los Angeles -Long Beach- Anaheim area for the previous 12-month period ending in March.
F
unds in the amount of $ 40,000 are being requested in the FY 2024- 25 Public Works proposed budget ( General Fund 1 00), and a similar amount will be requested in FY 2025-26 Budget. Funding for the proposed contract extension with Wonderful Things,
AGENDA I
TEM NO.
Consent (4)
A2447.SR.MG
Inc. is contingent upon City Council approval of the proposed FY 2024-25 and FY 2025- 26 Public Works operating budget.
Th
e following alternatives are available to the City Council:
1. Appr
ove the first contract amendment with Wonderful Things, Inc. for the Armed Forces Banner Program, Specification No. SV 22- 14 extending the term for two (2) years from July 1, 2024, to June 30, 2026, and increasing the not -to-exceed amount by $74,115.40, for a total not-to-exceed amount of $145,586.40;
2. Aut
horize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms;
3. Prov
ide staff with other direction.
St
aff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I m
ove to approve the first contract amendment extending the term for two (2) years with Wonderful Things, Inc. f or the Armed Forces Banner Program in the amount of $74,115.40, for a total not -to-exceed amount of $ 145,586.40 and authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms.
SUMMARY
On A
pril 1, 2022, the City Manager awarded a contract to Wonderful Things, Inc. for the Armed Forces Banner Program, Specification No. SV 22-14 in the amount of $71,471 for a two (2) year term from April 5, 2022, to June 30, 2024, with the option to extend for two (2) additional two (2) year terms. Staff is requesting the City Council extend the term for two (2) years from July 1, 2024, to June 30, 2026, and increase the not-to-exceed amount by $74,115.40 for a total not -to-exceed amount of $145, 586.40 and authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by one (1) additional two-year term in accordance with the contract terms.
______
___________________________
Ronald K. Fuchiwaki
Public Works Director
Pr
epared by: Dylan Gunning, Senior Management Analyst
INDE
X Page
First Contract Amendment ................................................................. 3 2
FIRST AMENDMENT TO
AGREEMENT NO. 3220099 BETWEEN
THE CITY OF SIMI VALLEY AND
WONDERFUL THINGS, INC.
THI
S FIRST AMENDMENT (“Amendment”) is made and entered into this 3rd day of June 2024, by and between the CITY OF SIMI VALLEY, a general law city and municipal corporation (“CITY”), and WONDERFUL THINGS, INC., a California Corporation (“CONTRACTOR”).
1. Pur
suant to Section 8 of Agreement No. 3220099 (“Agreement”), amending an existing sections; Section 2 Term, Section 4(A) and (C) Compensation and Payment to read as follows:
2. Ter
m
In ac
cordance with this Section 2, the term of the CONTRACT shall be extended for two (2) years from July 1, 2024 to June 30, 2026.
4. Com
pensation and Payment
A.
The CITY shall be obligated to pay CONTRACTOR based upon the unit and/or lump sum prices bid by CONTRACTOR, multiplied by the actual CITY -authorized quantities received and accepted by CITY; such unit and/or lump sum prices as contained in the “Pricing Schedule” attached hereto and incorporated herein as Exhibit “B-1.”
C.
In no event shall the total amount paid for this CONTRACT exceed $ 145,586.40 (the “Not-To-Exceed Amount”), unless otherwise agreed to by the parties in writing.
2. EL
ECTRONIC SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, Agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
3. Thi
s Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
3 City of Simi Valley
First Amendment to Agreement No. 3220099
WONDERFUL THINGS, INC.
A2447.CON.MG SPECIFICATION NO. SV 22-14
4. Except as modified by this Amendment, all other terms and conditions of Agreement No. 3220099 remain the same.
IN
WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
At
test: City of Simi Valley, A Municipal Corporation By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Ap
proved as to Form: Wonderful Things, Inc.
By:
Algeria R. Ford, City Attorney
Print Name: Janusz Zarczynski
Ap
proved as to Content: Title: President, CEO
By:
Brian Paul Gabler, City Manager
Print Name: Maria Monica Romero Cloud
Tit
le: CFO, Secretary
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
4 4
City of Simi Valley
First Amendment to Agreement No. 3220099
WONDERFUL THINGS, INC.
A2447.CON.MG SPECIFICATION NO. SV 22-14
EXHIBIT “B-1”
Pricing Schedule
5 5
City of Simi Valley
First Amendment to Agreement No. 3220099
WONDERFUL THINGS, INC.
A2447.CON.MG SPECIFICATION NO. SV 22-14
6 6