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Home My WebLink About2023-06-20; City Council; ; Amendment No. 2 to an Agreement with MEK Enterprises, Inc. for Citywide Parks Restroom Custodial Maintenance ServicesCA Review GH Meeting Date: June 20, 2023 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Barney Dresman, Public Works Supervisor barney.dresman@carlsbadca.gov, 442-339-2862 Subject: Amendment No. 2 to an Agreement with MEK Enterprises, Inc. for Citywide Parks Restroom Custodial Maintenance Services Districts: All Recommended Action Adopt a resolution authorizing Amendment No. 2 to an agreement with MEK Enterprises, Inc. for citywide parks restroom custodial maintenance services in an amount not to exceed $187,071 and to extend the term of the agreement until Sept. 30, 2023. Executive Summary MEK Enterprises, Inc. provides citywide parks restroom custodial maintenance services under an agreement that expires on June 30, 2023. Staff have issued a request for bids to select a new contractor for this service once the current agreement expires and currently reviewing the bids that were received for a targeted late July City Council meeting to approve the new agreement. MEK has expressed an interest in extending the term of its agreement until Sept. 30, 2023, when the new agreement is expected to be in effect but has requested a percentage adjustment to the compensation beyond the percentage adjustment authorized in the agreement approved by City Council so that it can continue to perform the contracted work, for the reasons detailed below. Staff recommend the City Council authorize Amendment No. 2 to the agreement with MEK, increasing the agreement amount by 8%, to an amount not to exceed $187,071 for three months of custodial maintenance services, and to extend the term of the agreement until Sept. 30, 2023. Explanation & Analysis Requested increase MEK has experienced challenges in hiring reliable and competent staff, resulting in a significant impact to the quality of service in locking and unlocking, cleaning and maintaining the city’s parks restroom facilities. The company has found it necessary to increase wages by up to 10% to attract reliable workers. The increasing cost of gasoline and cleaning supplies has also had an June 20, 2023 Item #12 Page 1 of 9 impact on MEK’s ability to perform the contracted work for the previously negotiated rate. For example, the cost of toilet paper has increased by about 34%, while the cost of cleaning supplies has increased between 10% and 15%. MEK requested an increase in payment of 8% to cover increased staffing and supply costs to perform the services specified in the agreement. These increases are consistent with inflation impacts in the economy more generally, though were higher than what was contemplated at the time the City Council approved the agreement in early 2021. Maintaining a high level of service at our citywide parks is an important component of the city’s core services, as detailed in the city’s Strategic Plan for 2023-2027, and approving Amendment No. 2 will allow for continuity of service at citywide parks until staff bring a new agreement to the City Council for consideration. History of agreement • April 20, 2021 - The City Council authorized an agreement with MEK for citywide parks restroom custodial maintenance services at a cost not to exceed $1,315,844 over a two- year term and $657,922 per agreement year. The resolution, Resolution No. 2021-087, also authorized the City Manager to approve amendments, with price increases not to exceed 2% per agreement year, and to extend the term of the agreement for two additional two-year periods. • June 27, 2022 - Amendment No. 1 to the agreement was executed to add services to maintain a new park restroom at Poinsettia Community Park, and to increase the agreement’s not-to-exceed amount to $692,854 per agreement year. • April 21, 2023 - Staff issued a request for bids to select a new contractor for this service once the current agreement expires. • May 20, 2023 – Fourteen bids were received. Staff is reviewing the bids and plan to present a proposed new agreement to the City Council for approval in late July Fiscal Analysis Sufficient funds are available in the Parks Maintenance Operating Budget for fiscal year 2023-24 to fund Amendment No. 2. Options Staff provide the following options for the City Council’s consideration: 1. Adopt a resolution authorizing Amendment No. 2 to an agreement with MEK for citywide parks restroom custodial maintenance services, increasing the agreement amount by 8%, in an amount not to exceed $187,071 for three months, and to extend the term of the agreement until Sept. 30, 2023 Pros • Provides continuity of services currently being provided by MEK until a new agreement is negotiated and approved • Reduces the potential for complaints from members of the public about insufficient custodial maintenance services Cons • Increases the cost of services by 8% during the three-month transition period June 20, 2023 Item #12 Page 2 of 9 2.Do not adopt the resolution Pros •None identified Cons •Services will not be provided during this transition period •Resident complaints would likely increase due to the lapse in custodial maintenance services Staff recommend Option 1. Next Steps Upon the execution of Amendment No. 2, staff will instruct MEK to continue to provide citywide parks restroom custodial services through Sept. 30, 2023. Environmental Evaluation The City Planner has determined that this action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065. Providing custodial maintenance services has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. Exhibit 1.City Council resolution June 20, 2023 Item #12 Page 3 of 9 RESOLUTION NO. 2023-182 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING AMENDMENT NO. 2 TO AN AGREEMENT WITH MEK ENTERPRISES, INC. FOR CITYWIDE PARKS RESTROOM CUSTODIAL MAINTENANCE SERVICES IN AN AMOUNT NOT TO EXCEED $187,071 AND TO EXTEND THE TERM OF THE AGREEMENT UNTIL SEPT. 30, 2023 WHEREAS, on April 20, 2021, the City Council adopted Resolution No. 2021-087, authorizing an agreement with MEK Enterprises, Inc. for citywide parks restroom custodial maintenance services in an amount not to exceed $1,315,844 over a two-year term and $657,922 per agreement year; and WHEREAS, Resolution No. 2021-087 also authorized the City Manager to approve amendments, with price increases not to exceed 2% per agreement year, and to extend the term of the agreemen� for two additional two-year periods or parts thereof; and WHEREAS, the agreement expires on June 30, 2023; and WHEREAS, staff have issued a request for bids to select a new contractor for these services; and WHEREAS, MEK has agreed to extend the term of its agreement until Sept. 30, 2023, which is up to the date when the new agreement is expected to be in effect, though has requested an increase in the compensation amount; and WHEREAS, unprecedented levels of inflation and other factors have severely impacted the contractor's ability to sustain the level of services in the agreement; and WHEREAS, staff have negotiated terms with the contractor and have come to an agreement of an increase in the compensation for services by 8%; and WHEREAS, the City Council has determined that it is in the best interest of the city to have MEK continue to provide the custodial services until the next agreement is approved by the City Council, with an expected effective date of Oct. 1, 2023; and WHEREAS, the City Council and MEK desire to amend and extend the agreement for a period of three months in an amount not to exceed $187,071; and WHEREAS, sufficient funds are available in the Parks Maintenance Operating Budget for fiscal year 2023-24 to fund the amendment; and WHEREAS, the City Planner has determined that this action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065. Providing custodial services has no Exhibit 1 June 20, 2023 Item #12#12 Pa 4 of 9 potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: l.That the above recitations are true and correct. 2.That the Mayor is hereby authorized and directed to execute Amendment No. 2 with MEK Enterprises, Inc. for citywide parks restroom custodial maintenance services, in an amount not to exceed $187,071, until Sept. 30, 2023, attached hereto as Attachment A. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 20th day of June, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) June 20, 2023 Item #12 Page 5 of 9 DocuSign Envelope ID: 1 0CD8F24-815F-43F1-903C-804990A8687B Attachment A PSA21-1448FAC AMENDMENT NO. 2 TO EXTEND AND AMEND AGREEMENT FOR CITYWIDE PARKS RESTROOM CUSTODIAL MAINTENANCE SERVICES MEK ENTERPRISES, INC. (-t" Thi~ Amendment No. 2 is made and entered into as of the Z, \ day of 0 LA v-vL-, 2023, but effective July 1, 2023, extending and amending the agreement dated April 20, 2021 (the "Agreement") by and between the City of Carlsbad, California, a municipal corporation ("City"), and MEK Enterprises, Inc., a California corporation ("Contractor") (collectively, the "Parties") for citywide parks restroom custodial maintenance services. RECITALS A. The Parties entered into the Agreement for an initial two-year term with a total fee payable not to exceed $657,921.72. The Agreement includes options for the City to extend the Agreement for two additional two-year periods, subject to a 2% maximum compensation adjustment. B. On June 27, 2022, the Parties executed Amendment No. 1 to the Agreement to alter the Agreement's Scope of Services and Fees to add additional services to maintain a new park restroom located at Poinsettia Park, that opened in July 2022, and to increase the annual agreement by $34,932; and C. Now the Parties have negotiated and agreed to an amended Scope of Work and Fees, which is attached to and incorporated by this reference as Exhibit "A," Scope of Services and Fees (AMENDED), for a three-month term extension and a rate increase of 8% for monthly services. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. The Scope of Services and Fees described in Exhibit "A" of the Agreement is hereby amended as set forth in Exhibit "A," Scope of Services and Fees (AMENDED), attached to this Amendment No. 2. 2. The term of the Agreement is hereby amended for three additional months, until September 30, 2023. 3. City will pay Contractor for all work associated with those services described in Exhibit "A," a total fee payable amount not-to-exceed $187,070.50. Co ntractor will provide City, monthly, copies of invoices sufficiently detailed to in clude hours performed, hourly rates, and related activities and costs for approval by City. 4. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 5. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. City Attorney Approved Version 12/28/2022 June 20, 2023 Item #12 Page 6 of 9 DocuSign Envelope ID: 10CD8F24-815F-43F1-903C-804990A8687B PSA21-1448FAC 6. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. CONTRACTOR MEK Enterprises, Inc., a California corporation By: (sign here) Marc Kranz, CEO, President & CFO (print name/title) By: (sign here) (print name/title) CITY OF CARLSBAD, a municipal corporation of the State of California By: ATTEST: for Sherry Freisinger, City Clerk If required by City, proper notarial acknowledgment of execution by Contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups: Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: bt\A4. fu_my~ ___ ___;;_~;.___:;.:.;;.;..~...;__---- Deputy City Attorney City Attorney Approved Version 12/28/2022 June 20, 2023 2 Item #12 Page 7 of 9 PSA21-1448FAC City Attorney Approved Version 12/28/2022 3 EXHIBIT “A” SCOPE OF SERVICES AND FEES (AMENDED) Itemized List of what Contractor will do for City and at what price. Restrooms (Monthly rate includes all required Overnight Cleaning, Porter Service, Deep Cleaning, Locking and Unlocking restrooms). Restroom Location Approx. Sq. Ft Quantity Minimum Time for daily overnight cleaning per building Monthly Rate Alga Norte Community Park 6565 Alicante Rd. 1920 3 45 $8,651.49 Aviara Community Park, 6435 Ambrosia Lane 2414 3 45 $10,877.46 Beach Bluff Carlsbad Blvd/Pine Ave 200 1 45 $901.20 Calavera Lake Trail Tamarack Ave between Strata and Knollwood 48 1 single 20 $216.29 Calavera Community Park, 2997 Glasgow Dr 442 1 45 $1,991.65 Chase Field 3349 Harding St 234 1 45 $1,054.40 Hidden Canyon 2685 Harding St 403 1 45 $1,815.91 Ann D. L’Heureux Dog Park 2710 Carlsbad Village Drive N/A N/A Lock gate at night, no other service $0.00 Holiday Park 3235 Eureka Place 1084 2 45 $4,884.49 La Costa Canyon Park 3018 Pueblo St 402 1 45 $1,811.41 Laguna Riviera Park Kelly and Park Drive 302 1 45 $1,360.81 Magee Park 258 Beech Avenue 403 1 45 $1,815.91 Pine Park 3600 Harding 245 1 45 $1,103.97 Poinsettia Park 6600 Hidden Valley Rd 1395 3 45 $9,429.73 Skate Park 2560 Orion Way 180 1 45 $811.08 Stagecoach Park 3420 Camino de los Coches 756 2 45 $3,406.53 Tamarack (Beach) Carlsbad Blvd and Tamarack 900 1 45 $4,055.39 DocuSign Envelope ID: 10CD8F24-815F-43F1-903C-804990A8687B June 20, 2023 Item #12 Page 8 of 9 PSA21-1448FAC City Attorney Approved Version 12/28/2022 4 Call out Services – Serviced upon request from Contract Administrator Call out cost including first hour cost per hour Estimated number of call outs per month Total monthly not to exceed Emergency services – cleaning, drain blockage, graffiti mitigation, snack bar cleaning $115 $50 35 $5,929.20 Snack Bars/Catering Facilities– Serviced upon request from Contract Administrator Location Est Average Hours/Cleaning Cost per cleaning Estimated number of cleanings per month Monthly Cost (est) Snack Bar 8 $131.76 2 $263.52 Aviara Park Food serving facility 6 $197.64 10 $1,976.40 Total Monthly Not-to-Exceed Amount $62,356.83 Total Agreement Not-to-Exceed Amount $187,070.50 DocuSign Envelope ID: 10CD8F24-815F-43F1-903C-804990A8687B June 20, 2023 Item #12 Page 9 of 9 Tammy Cloud-McMinn From: Sent: To: Subject: To All Concerned Area Residents: Mary Real <anewday4me2020@gmail.com> Tuesday, June 20, 2023 12:44 PM All Receive -Agenda Item# U For the Information of the: <;ITY COUNCIL DateW/d<f ££.A ✓ CC V:-/ CM vACM t/1:>CM (3) v City Clerk; Council Internet Email; Scott Chadwick; Geoff Patnoe; Kyle Lancaster; Mary Real General Comment, Item 12 Carlsbad City Council Mtg. 6-20-2023 Park & Recreation is shortchanging Seniors at the Senior Center and is not spending whatever money is budgeted on improving the Senior Center wireless communications or the games or spending donated money on serving the senior community. The current "management" is following the models of Cost Recovery and monetizing the Senior Center (Thank You Mike Pacheco and Kyle Lancaster). They have wasted money and annoyed a lot of seniors with their attitude of Non -Involvement or supervision. Maybe the money in the budget for the Senior Center should stay in the Special Funds of the Senior Center rather than revert to the General Fund to make Management look good? Where are the plans to build a second Senior Center in the La Costa area south of town for the growing senior population? Mayor Blackburn and City Council Members and Scott Chadwick: Why are you shortchanging the Seniors at the Senior Center? Respectfully Submitted, Mary Lucid CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content i safe. 1