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09-01-2020 - AGENDA ITEM 08 CONSIDERATION OF FOURTH AMENDMENT TO THE UNITED MAINTENANCE SYSTEMS, INC. PROFESSIONAL SERVICES AGREEMENT FOR JANITORIAL SERVICES AT CITY BUILDINGS AND FACILITIES12/1 /2020 Print Staff Report AGENDA ITEM NO. 8 DATE: September 1, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF FOURTH AMENDMENT TO THE UNITED MAINTENANCE SYSTEMS, INC. PROFESSIONAL SERVICES AGREEMENT FOR JANITORIAL SERVICES AT CITY BUILDINGS AND FACILITIES RECOMMENDATION: It is recommended that the City Council approve the Fourth Amendment to the Professional Services Agreement with United Maintenance Systems, Inc. for janitorial services at City buildings and authorize the City Manager to negotiate and execute the amendment. BACKGROUND: The original contract with United Maintenance Systems, Inc. for janitorial services at City buildings commenced on February 1, 2017 and had a one year term with three, one year extensions. The three amendments extended the term through January 31, 2021. Following the City Council's declaration of a fiscal emergency through Resolution 2020-46 on May 19, 2020, the city manager asked staff to negotiate reductions in all service contracts by 5-10%. DISCUSSION: Staff worked with United Maintenance Systems, Inc. to negotiate savings by reducing the scope of janitorial services at all City buildings except City Hall and the Police Department. Contract janitorial services will be eliminated at the following locations, through the term of the contract: • City maintenance yard • Cameron Community Center (currently closed) • Shadow Oak Park (currently closed) • Palm View Park (currently closed) • Senior Citizens Center (currently under limited operations) The reductions will result in a monthly saving of $12,600, and a potential saving of $88,200 for the remainder of the contract term - January 31, 2021. Staff at the Senior Center and City Yard will assume the responsibility of cleaning their own facilities. When the community centers are allowed to reopen, staff will reassess the need for having janitorial services provided using contracted services. https://destinyhosled.com/print_ag_memo.Gfm?seq=931 &rev_num=0&mode=Extemal&reloaded=true&id=93782 1 /2 12/1/2020 Print Staff Report LEGAL REVIEW: The City Attorney's Office has reviewed the amendment and approved it as to form. OPTIONS: The City Council has the following options: 1. Adopt staff's recommendation. 2. Provide alternative direction. Prepared by: Mike Cresap Public Services Superintendent Fiscal Impact FISCAL IMPACT: The reduced scope of services will result in a monthly saving of $12,600 or $88,200 through the term of contract - January 31, 2021. This results in direct savings to the General Fund. Attachments Attachment No. 1 - United Maintenance Systems - Fourth Amendment CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL GOALS & OBJECTIVES: https://destinyhosled.com/print_ag_memo.Gfm?seq=931 &rev_num=0&mode=Extemal&reloaded=true&id=93782 2/2 ATTACHMENT NO. 1 FOURTH AMENDMENT TO CITY OF WEST COVINA PROFESSIONAL SERVICES AGREEMENT WITH UNITED MAINTENANCE SYSTEMS, INC. FOR JANITORIAL SERVICES AT CITY BUILDINGS AND FACILITIES THIS FOURTH AMENDMENT ("Amendment") is made and entered into as of June 1, 2020 ("Effective Date") by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and UNITED MAINTENANCE SYSTEMS, INC., a California corporation ("Contractor"). WHEREAS, City and Contractor entered into a Professional Services Agreement dated January 17, 2017 for Contractor to provide janitorial services at City buildings and facilities (the "Original Agreement"); and WHEREAS, the Original Agreement provides for a term commencing February 1, 2017 and ending February 1, 2018, with the option to extend the term of the agreement for three (3) successive one (1) year periods; and WHEREAS, City and Contractor extended the term through January 31, 2019 through the First Amendment to the Original Agreement; and WHEREAS, City and Contractor extended the term through January 31, 2020 through the Second Amendment to the Original Agreement; and WHEREAS, City and Contractor extended the term through January 31, 2021 through the Third Amendment to the Original Agreement; and WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency through the adoption of Resolution No. 2020-46; and WHEREAS, in declaring the fiscal emergency, the City Council directed the City Manager to take any and all actions necessary to address the fiscal emergency, including, but not limited to, measures relating to personnel and benefit costs, operations, and reductions in service levels, and reviewing and negotiating changes to labor agreements, service agreements, and franchise agreements, to the extent permitted by law; and WHEREAS, City and Contractor have negotiated a reduction in Contractor's service levels pursuant to the Original Agreement, which will reduce Contractor's monthly compensation by $12,600.00; and WHEREAS, City and Contractor desire to amend the Original Agreement accordingly; and WHEREAS, City and Contractor intend and desire that this Amendment be effective retroactive to the Effective Date. United Maintenance Systems, Inc. Fourth Amendment Form Revised April 2020 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: This Amendment shall be effective retroactive to the Effective Date. The Scope of Services shall be amended to reflect that janitorial services will not be provided to the following buildings: a. City Maintenance Yard Office b. Cameron Community Center C. Shadow Oak Recreation Center d. Palm View Recreation Center e. Senior Citizens Center 3. By amending the Scope of Services to reflect that janitorial services will not be provided to the buildings identified in Section 1, Contractor's monthly compensation shall be reduced by the following amounts, for a total monthly reduction of $12,600.00: a. City Maintenance Yard Office - $750.00/month b. Cameron Community Center - $3,900.00/month C. Shadow Oak Recreation Center - $2,850.00/month d. Palm View Recreation Center - $1,700/month e. Senior Citizens Center - $3,400/month Section 2.1 of the Original Agreement shall be amended to reflect that, for the period commencing June 1, 2020 and ending January 31, 2021, Contractor's monthly compensation shall not exceed Sixty -Eight Thousand Six Hundred Dollars ($68,600.00). 5. All terms not defined herein shall have the same meaning and use as set forth in the Original Agreement. 6. All other terms, conditions, and provisions of the Original Agreement not in conflict with this Amendment shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS.] United Maintenance Systems, Inc. Fourth Amendment Form Revised April 2020 IN WITNESS WHEREOF, City and Contractor have executed this Amendment as of the date set forth above. CITY OF WEST COVINA CONTRACTOR David Carmany Jae Kim City Manager Operations Manager ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney United Maintenance Systems, Inc. Fourth Amendment Form Revised April 2020