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Agenda Item 19.

City Council Meeting

Meeting Date:	06/20/2023
FROM:	Bill Gallardo

Subject:

Public Works Consumer Price Index (CPI) Contract Increases

RECOMMENDATION

Approve CPI increases for agreements with Guaranteed Janitorial Services Inc., Mariposa Landscape Inc., Nieves Landscape Inc. and Tropical Plaza Nursery, Inc.; and
Approve amendments authorizing the City Manager to execute future CPI increases as long as the CPI increases do not exceed 5% of the contract amount.

BACKGROUND/DISCUSSION

The Public Works Department has multiple contracts for landscape maintenance, janitorial, and at City facilities, including the City's five Landscape and Lighting Maintenance Districts with a CPI escalator in the agreement requiring City Council approval. The 2023-24 Fiscal Year Increases are shown in the table below for reference.

In addition, staff recommend that the City Manager execute future CPI increases (if applicable) so long as the CPI increase does not exceed 5% of the contract amount. Approval of the attached amendments does not guarantee a CPI increase for the contractor(s) but provides the authority for the City Manager to approve CPI increases if necessary. The City Attorney has advised and approved that this will provide administrative efficiencies, and staff will continue negotiating the best price for the City while maintaining service levels to the community.

Contract/Contractor	Fund		Current Contract Price	% CPI	CPI Increase	2023-2024 Contract Price
Mowing at City Parks - Nieves Landscape Inc.	General Fund (Parks) Blackstone CFD	110 360	$122,004	3.7	$4,514	$126,519
Mow & Landscape Maintenance at City Facilities & Trails - Mariposa Landscape Inc.	General Fund (Landscape) La Floresta CFD	110 361	$98,281	0	$0	$98,281
Mow & Landscape Maintenance at Medians/Greenbelt/Parkways - Nieves Landscape Inc.	General Fund (Landscape) La Floresta CFD	110 361	$150,105	3.7	$5,554	$155,659
Mow & Landscape Maintenance at Gateway Center - Tropical Plaza Nursery, Inc.	General Fund (Landscape)	110	$17,262	3.7	$639	$17,901
Mow & Landscape Maintenance at Maintenance District 1 M.D. #1) - Nieves Landscape Inc.	Landscape & Lighting MD 1	341	$16,980	3.7	$629	$17,609
Mow & Landscape Maintenance at M.D. #3 - Nieves Landscape Inc.	Landscape & Lighting MD 3	343	$28,782	3.7	$1,065	$29,847
Mow & Landscape Maintenance at M.D. #5 - Tropical Plaza Nursery, Inc.	Landscape & Lighting MD 5	345	$32,723	3.7	$1,211	$33,934
Mow & Landscape Maintenance at M.D. #6 - Nieves Landscape Inc.	Landscape & Lighting MD 6	346	$72,233	3.7	$2,673	$74,906
Mow & Landscape Maintenance at M.D. #7 - Nieves Landscape Inc. (service reduction)	Landscape & Lighting MD 7	347	$13,829	0	Service Reduction	$11,922
Landscape Maintenance at City Reservoirs - Tropical Plaza Nursery, Inc.	Water	420	$19,946	3.7	$738	$20,684
Facilities Janitorial Service - Guaranteed Janitorial Services. Inc.	Building Maintenance	490 110	$378,288	3.7	$13,997	$392,285

COMMISSION/COMMITTEE RECOMMENDATION

This item was agendized for the June 13, 2023, Finance Committee meeting, and the meeting was canceled.

FISCAL IMPACT/SUMMARY

The total CPI increase for the Public Works maintenance agreements is $31,020 for FY 2023-24. Funding is available and included in the City's FY 2023-25 Operating Budget.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Eric Aulls, Public Works Superintendent
Concurrence: Michael Ho, P.E., Director of Public Works/City Engineer

Attachments
Contract Amendments