AGENDA CAPTION:
Title
Consider approval of Resolution 2018-24R, awarding an annual contract for the management and operation of the San Marcos Cemetery to Gene Bagwell, D/B/A Maintenance Management in the estimated annual amount of $74,172.67 for Fiscal Year 2018 and the remainder to be budgeted in 2019 for the Community Services Department, Parks and Recreation Division contingent upon the proponent’s timely submission of sufficient insurance in accordance with the City’s request for proposal documents; authorizing the City Manager or his designee to execute the appropriate purchasing documents on behalf of the City; and declaring an effective date.
Body
Meeting date: 2/20/2018
Department: Community Services -Rodney Cobb, Executive Director (By Heather Hurlbert, Director of Finance)
Amount & Source of Funding
Funds Required: $74,172.67 FY18
Account Number: 12050220.52400
Funds Available: $74,172.67 FY 2018 remainder to be budgeted in 2019
Account Name: Cemetery Operations
Fiscal Note:
Prior Council Action: Original RFP 217-023 Cemetery Operation & Management was approved by Council March 7, 2017
City Council Goal: [Please select goal from dropdown menu below]
Goal #5 Maintain & Improve City's Infrastructure
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☐ Environment & Resource Protection - Choose an item.
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Parks, Recreation, & Open Space Master Plan
Background Information:
The contract for the Management and Operations of the San Marcos Cemetery (RFP 217-023) with Gene Bagwell dba Maintenance Management awarded in 2017 in the amount of $145,152.00, expires March 31, 2018. Within the terms and conditions of the contract the City of San Marcos has the option to extend the contract for nine (9) additional (1) year periods. This will be the first (1st) extension of the contract. Contract extensions may be awarded administratively in the form of a letter of agreement signed by the Purchasing Manager.
The City of San Marcos has the option to adjust the contract price for any extension period on a percentage equal to the new percentage change from the previous year in the Consumer Price Index (CPI) for Wage Earners and Clerical Workers as published by the United States Department of Labor, Bureau of Labor Statistics. The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of goods and services. The current CPI adjustment, if exercised, would increase our current contract price by 2.2% ($3,193.34). The Cemetery Commission met on January 24, 2018 and discussed the contract extension options and recommends extending the current contract with a 2.2% increase for a total contract amount of $148,345.34.
This contract is effective April 1, 2018 through March 31, 2019, therefore it crosses two (2) fiscal years. The total annual amount of the contract is $148,345.34 but the amount required for FY18 (April 1, 2018 - September 30, 2019) is $74,172.67.
Purchases against this contract for FY18 are contingent upon the City’s approval of the FY18 budget.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval of contract