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Home My WebLink About14 - Landscape Contract AmendmentsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 14 September 14, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, (949) 644 -3055 mharmon @newportbeachca.gov SUBJECT: Approval of Four (4) Landscape Contract Amendments ISSUE: Staff has renegotiated contracts with the following four (4) firms that provide landscape maintenance services to the City: West Coast Arborists, Inc., TruGreen Landcare, Inc., Park West Landscape Maintenance, Inc., and Merchants Landscape Services, Inc. The amendments to these contracts are attached to this report for City Council consideration. RECOMMENDATION: Staff recommends that the City Council approve the following contract amendments: Annual Not To Exceed Amount 1) West Coast Arborists, Inc. $710,000 2) TruGreen Landcare, Inc. $820,000 3) Park West Landscape, Inc. $455,000 4) Merchants Landscape Services, Inc. $710,000 Reducing the funding levels to the contracts listed above will reduce overall landscape maintenance cost by approximately $600,000 per year. DISCUSSION: Background The General Services Department currently contracts with the following firms for landscape maintenance: Approval of Four (4) Landscape Contract Amendments September 14, 2010 Page 2 1) West Coast Arborists, Inc.- WCA is responsible for maintaining the urban forest through scheduled grid trimming of neighborhood trees, responding to tree related emergencies due to storms, vehicle accidents, etc., and the removal and replacement of city trees as necessary. 2) TruGreen Landcare, Inc.- TruGreen is responsible for turf maintenance in all City parks, sports fields and facilities. This work includes irrigation, hardscape maintenance, and litter removal. 3) Park West Landscape Maintenance, Inc.- Park West is responsible for landscape maintenance services in the Newport Coast area, including roadside slopes, medians and parkways, 14 acres of nature parks, and landscaped areas surrounding the Newport Coast Community Center and Newport Ridge Fire Station. 4) Merchants Landscape Services, Inc.- With the exception of the Park West work listed above, Merchants maintains all of the City's medians and roadway areas, including turf, ground- cover, shrub, and hardscape maintenance. The landscape maintenance contracts listed above represent the largest contracted service managed by the General Services Department, with a combined cost of approximately $3.5M in FY 2009 -2010. During the development of the FY2010 -2011 budget, staff was tasked with looking at ways to reduce operational costs in areas that would have the least impact on our residents and visitors. General Services staff met several times with our landscape contractors to thoroughly review the existing services provided, and to work together to identify areas where service levels could be reduced to provide cost reductions for the City. This renegotiation of the service agreements with our landscape contractors has resulted in a projected cost savings of $600,000 for FY 2010 -2011, while continuing to provide quality services for our customers. Service Level Changes and Potential Impacts Staff is working closely with our landscape contractors to minimize the impact to our community due to the contract changes. We will reduce the frequency of such activities as aerating select turf areas, trimming, fertilizer applications, and replacing damaged or dead vegetation. Given the limited funds, staff will closely manage the contracts so that service levels are maintained in high profile parks and facilities, i.e. sports parks, recreation centers, etc., while reducing maintenance frequency in other areas. The greatest impact may be in the reduction of funding for the West Coast Arborists contract. This amendment will directly result in changing the trimming cycle in most Approval of Four (4) Landscape Contract Amendments September 14, 2010 Page 3 neighborhoods from the current practice of trimming every three years, to a trim cycle of every four years. In areas where ocean views are highly regarded and protected, this change may result in concerns from residents. In addition to the trimming cycle, staff has deferred all new tree planting until funding becomes available. Staff will continue to monitor any issues or concerns and report back to City Council with a recommendation to adjust the funding level for tree maintenance if necessary. FINANCIAL REVIEW: Renegotiating the contracts reduced the Parks and Trees Operating budgets by approximately $600,000 in FY 2010 -2011 ( #3170 -8080 and #3180 - 8080). The current budget that was approved by City Council in June 2010 included this reduced amount of funding based on the revised landscape agreements, and therefore, a budget amendment is not needed for this action. ENVIRONMENTAL REVIEW: This project does not require environmental review. PUBLIC NOTICE: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). LEGAL REVIEW: The City Attorney's Office has reviewed this report and signed the attached Amendments. Submitted /Prepared by: /PA4�� Mark Harmon General Services Director Attachments 1) Contract Amendment for West Coast Arborists, Inc. 2) Contract Amendment for TruGreen Landcare, Inc. 3) Contract Amendment for Park West Landscape Maintenance, Inc. 4) Contract Amendment for Merchants Landscape Services, Inc. Attachment 1 AMENDMENT NO. THREE TO CONTRACTOR AGREEMENT WITH WEST COAST ARBORISTS, INC. FOR CITY TREE TRIMMING SERVICE THIS AMENDMENT NO. THREE TO CONTRACTOR AGREEMENT ( "Amendment No. Three "), is entered into as of this 14th day of September, 2010, by and between the CITY OF NEWPORT BEACH, a California Municipal corporation ( "City "), and WEST COAST ARBORISTS, INC., a California corporation whose address is 7072 Thomas Street, Buena Park, California, 90621 ( "Contractor'), and is made with reference to the following: RECITALS: A. On December 3, 1993, City and Contractor entered into a Contractor Agreement for general City tree maintenance services ( "Agreement'). B. On June 12, 1995, City and Contractor amended the Agreement extending the term of the Agreement to December 4, 2004 ( "Amendment No. One "). C. On February 17, 2004, City and Contractor entered into a Second Amendment to the Agreement for general City tree maintenance services extending the term of the Agreement to December 4, 2013 ( "Amendment No. Two "). D. Contractor provides general tree maintenance services including trimming, pruning, planting and removing of City trees ( "Project'). E. In an effort to reduce City expenditures, Contractors were asked to reduce costs and decrease the frequency of certain services. F. City desires to enter into this Amendment No. Three to reflect the negotiated reduced costs agreed upon between the parties, as provided herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. COMPENSATION TO CONTRACTOR Paragraph 4 of the Agreement shall be amended hereby and the following is substituted in its entirety: City shall pay to Contractor an amount not to exceed Nine Hundred Fifty Thousand Dollars and 00/100 ($950,000.00) per Agreement year without prior written authorization from City (`Total Amended Annual Compensation "). Contractor shall submit invoices to City on a monthly basis describing the Work performed the preceeding month. Contractors bills shall include a brief description of the Services performed and /or the specific task to which the charges relate and the date and location of the Services performed. City shall Page I1 pay invoices within thirty (30) days after approval of an invoice by the City. Payment shall be deemed made when deposited in the United States mail, first class postage pre -paid, and addressed to Contractor as specified in Section entitled "Notices" in the Agreement. 1.1 The Total Amended Annual Compensation reflects Contractors reduction in rates and /or Services for a total of Two Hundred Two Thousand Seven Hundred Twenty Five Dollars and 78/100 ($202,725.78) per Agreement year. 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES NEXT PAGE] SME APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By: Leonie Mulvihill Assistant City Attorney ATTEST: UM Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California Municipal Corporation IN Keith Curry, Mayor CONTRACTOR: West Coast Arborists 0 M [insert name] [insert corporate officer title] [insert name] [insert financial officer title] Page 13 Attachment 2 AMENDMENT NO. TWO TO CONTRACTOR AGREEMENT WITH TRUGREEN LANDCARE FOR LANDSCAPE MAINTENANCE FOR CITY'S PARKS AND FACILITIES THIS AMENDMENT NO. TWO TO CONTRACTOR AGREEMENT ( "Amendment No. One "), is entered into as of this 14th day of September, 2010, by and between the CITY OF NEWPORT BEACH, a California Municipal corporation ( "City "), and TRUGREEN LANDCARE, a California General Partnership, whose address is 1323 West 130th Street, Gardena, California, 90247 ( "Contractor"), and is made with reference to the following: RECITALS: A. On August 30, 2006, City and Agreement for landscaping and facilities ( "Agreement "). Contractor entered into a Contract Service maintenance services for the City's parks and B. On July 14, 2009, City and Contractor entered into an amendment to the Agreement ( "Amendment No. One ") to increase the scope of work and compensation to include landscaping and maintenance services for Coast Peak Park. C. Contractor provides landscaping and maintenance services for City parks and facilities ( "Project "). D. In an effort to reduce City expenditures, Contractors were asked to reduce costs and decrease the frequency of certain services. E. City desires to enter into this Amendment No. Two to reflect the negotiated reduced costs agreed upon between the parties, as provided herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: im f� TERM Section 1 of the Agreement and Section 1 of Amendment No. One shall be amended hereby and the following is substituted in its entirety: The term of the Agreement shall terminate on August 31, 2013, unless terminated earlier as provided for in the Agreement. SCOPE OF WORK Section 2 of the Agreement and Section 2 of Amendment No. One shall be amended hereby by replacing Exhibit C with the Exhibit C attached hereto and incorporated herein. Exhibit A Page 11 3. COMPENSATION Section 6 of the Agreement and Section 3 of Amendment No. One shall be amended hereby and the following is substituted in its entirety: City shall pay to Contractor an amount not to exceed Eight Hundred Twenty Thousand Dollars and no /100 ($820,000.00) per Agreement year without prior written authorization from City ( "Total Amended Annual Compensation "). Contractor shall submit invoices to City on a monthly basis. City shall pay invoices within thirty (30) days after approval of an invoice by the City. Payment shall be deemed made when deposited in the United States mail, first class postage pre -paid, and addressed to Contractor as specificed in Section entitiled "Notices" in the Agreement. 3.1 The Total Amended Annual Compensation reflects Contractors reduction in rates for a total of One Hundred Ninety Three Thousand Three Hundred Ninety Seven Dollars and 50/100 ($193,397.50) per Agreement year. 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES NEXT PAGE] Exhibit A Page 12 APPROVED AS TO FORM: CITY OF NEWPORT BEACH, OFFICE OF THE CITY ATTORNEY A California Municipal Corporation By: Leonie Mulvihill Assistant City Attorney ATTEST: By: Leilani I. Brown City Clerk By: Keith Curry Mayor CONTRACTOR: TRUGREEN LANDCARE, a California General Partnership By: [insert name] [insert corporate officer title] By: [insert name] [insert financial officer title] [END OF SIGNATURES] Attachments: Exhibit C — Maintenance Frequency Schedule Exhibit A Page 13 EXHIBIT C Maintenance Frequency Schedule FUNCTION FREQUENCY Irrigation Inspection Weekly Turf Maintenance Mowing Weekly Edging At each mowing Clipping Removal At each mowing String Trimming At each mowing Fertilize Four times /year Vertical Mow Once /year Aerate Twice /year, Four times for Sports Fields Pest and Weed Control As needed Visual Inspection Weekly Topdress Application Twice /year, for Sports Fields Perennial Rye Seed Twice /year Gypsum Application Once /year, for select turf sites Ground Cover Maintenance Trim Monthly Fertilize Twice /year Pest and Weed control As needed Visual Inspection Weekly Pre - emergent Application Twice /year Shrub, Vine, and Tree Maintenance Trim Four times /year Fertilize Twice /year (once /year for trees) Restake /Check Each site visittevery two weeks min. Visual Inspection Weekly Oak Trees - Liquid Iniect/Drench Once /year Hardscape Maintenance Six days /week, Seven days /week Memorial Dav thru Labor Da Grounds Policing /litter Removal, Including Six days /week, Seven days /week Specialty/Sports Areas and Park Amenities Memorial Dav thru Labor Da Site Inspection Six days /week, Seven days /week Memorial Dav thru Labor Da Exhibit A Page 14 EXHIBIT C (Continued) FUNCTION FREQUENCY Sandlwood chip areas Cleaned and raked Six days /week, Seven days /week Memorial Dav thru Labor Da Rototilled Four times /year Drinking Fountains Six days /week, Seven days /week Memorial Dav thru Labor Da Native Area Maintenance Weed Control As needed Tree Handwatering Weekly The City Administrator and Contractor may agree to a modification of this Schedule. Exhibit A Page 15 Attachment 3 AMENDMENT NO. ONE TO CONTRACTOR AGREEMENT WITH PARK WEST LANDSCAPE MAINTENANCE SERVICES FOR NEWPORT COAST THIS AMENDMENT NO. ONE TO CONTRACTOR AGREEMENT ( "Amendment No. One "), is entered into as of this 14 day of September, 2010, by and between the CITY OF NEWPORT BEACH, a California Municipal corporation ( "City "), and PARK WEST LANDSCAPE MAINTENANCE, INC., a California corporation whose address is 22421 Gilberto Suite A, Rancho Santa Margarita, CA 92688 ( "Contractor "), and is made with reference to the following: RECITALS: A. On September 25, 2007 City and Contractor entered into an Agreement for landscaping and maintenance services to the Newport Coast Area ( "Agreement'). B. Contractor provides landscaping and maintenance services to the Newport Coast area, including approximately 65 acres of evergreen slopes; 13 acres of roadway medians and parkways; 14 acres of nature parks; and the landscaped areas surrounding the Newport Coast Community Center and Newport Ridge Fire Station ('Project'). C. In an effort to reduce City expenditures, Contractors were asked to reduce costs and decrease the frequency of certain services. D. City desires to enter into this Amendment No. One to reflect the negotiated reduced costs agreed upon between the parties, as provided herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SCOPE OF WORK Section 2 of the Agreement be amended hereby by replacing Exhibit C with the Exhibit C attached hereto and incorporated herein. 2. COMPENSATION Section 6 of the Agreement shall be amended hereby and the following is substituted in its entirety: City shall pay to Contractor an amount not to exceed Four Hundred Fifty Five Thousand Dollars and no /100 ($455,000.00) per Agreement year without prior written authorization from City ( "Total Amended Annual Compensation "). Contractor shall submit invoices to City on a monthly Exhibit A Page 11 basis. City shall pay invoices within thirty (30) days after approval of an invoice by the City. Payment shall be deemed made when deposited in the United States mail, first class postage pre -paid, and addressed to Contractor as specificed in Section entitiled "Notices" in the Agreement. 2.1 The Total Amended Annual Compensation reflects Contractors reduction in rates for a total of One Hundred Eleven Thousand Nine Hundred and Eighty Dollars and 70/100 ($111,980.70) per Agreement year. 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES NEXT PAGE] Exhibit A Page 12 APPROVED AS TO FORM: CITY OF NEWPORT BEACH, OFFICE OF THE CITY ATTORNEY A California Municipal Corporation By: By: Leonie Mulvihill Keith Curry Assistant City Attorney Mayor ATTEST: CONTRACTOR: PARK WEST LANDSCAPE MAINTENANCE, INC., a California Corporation By: By: Leilani I. Brown [insert name] City Clerk [insert corporate officer title] By: [insert name] [insert financial officer title] [END OF SIGNATURES] Attachments: Exhibit C — Maintenance Frequency Schedule Exhibit A Page 13 EXHIBIT C Maintenance Frequency Schedule ' FUNCTION FREQUENCY Irrigation Inspection Weekly Turf Maintenance Mowing Weekly Edging At each mowing Clipping Removal At each mowing String Trimming At each mowing Fertilize Three times /year Vertical Mow Once /year— including seeding and topdress Aerate Twice /year Pest and Weed Control As needed Visual Inspection Weekly Ground Cover Maintenance Trim Monthly Fertilize Three times /year Pest and Weed control As needed Visual Inspection Weekly Pre - emergent herbicide Three times /year Shrub, Vine, and Tree Maintenance Trim Four times /year Fertilize Twice /year (once /year for trees) Restake /Check Each site visit /every two weeks min. Visual Inspection Weekly Pre - emergent herbicide Three times /year Hardscape Maintenance Each site visit/weekly min. Grounds Policing /Litter Removal Six days /week Site Inspection Six days /week The City Administrator and Contractor may agree to a modification of this Schedule. Exhibit A Page 14 Attachment 4 AMENDMENT NO. ONE TO CONTRACTOR AGREEMENT WITH MERCHANTS LANDSCAPE SERVICES, INC. TO PROVIDE LANDSCAPE MAINTENANCE FOR CITY MEDIANS AND ROADWAYS THIS AMENDMENT NO. ONE TO CONTRACTOR AGREEMENT ( "Amendment No. One "), is entered into as of this 14TH day of September, 2010, by and between the CITY OF NEWPORT BEACH, a California Municipal corporation ( "City "), and MERCHANTS LANDSCAPE SERVICES, INC., a California corporation whose address is 1639 East Edinger Avenue, Suite C, Santa Ana, CA 92705 ( "Contractor "), and is made with reference to the following: RECITALS: A. On November 13, 2007 City and Contractor entered into an Agreement for landscaping and maintenance services fir the City's Medians and Roadways ( "Agreement "). B. Contractor provides landscape and maintenance services for approximately 96 acres of the City's median and roadway areas, including turf, ground cover, tree and hardscape maintenance ( "Project "). C. In an effort to reduce City expenditures, Contractors were asked to reduce costs and decrease the frequency of certain services. D. City desires to enter into this Amendment No. One to reflect the negotiated reduced costs agreed upon between the parties, as provided herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SCOPE OF WORK Section 2 of the Agreement be amended hereby by replacing Exhibit C with the Exhibit C attached hereto and incorporated herein. 2. COMPENSATION Section 6 of the Agreement shall be amended hereby and the following is substituted in its entirety: City shall pay to Contractor an amount not to exceed Seven Hundred Ten Thousand and no /100 ($710,000.00) per Agreement year without prior written authorization from City ( "Total Amended Annual Compensation "). Contractor shall submit invoices to City on a monthly basis. City shall pay invoices within thirty (30) days after approval of an invoice by the City. Exhibit A Page 11 Payment shall be deemed made when deposited in the United States mail, first class postage pre -paid, and addressed to Contractor as specificed in Section entitiled "Notices" in the Agreement. 2.1 The Total Amended Annual Compensation reflects Contractors reduction in rates for a total of One Hundred One Thousand Eight Hundred and Forty Dollars and 80/100 ($101,840.80) per Agreement year. 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES NEXT PAGE] Exhibit A Page 12 APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By: Leonie Mulvihill Assistant City Attorney ATTEST: M Leilani I. Brown City Clerk Attachments: CITY OF NEWPORT BEACH, A California Municipal Corporation M Keith Curry Mayor CONTRACTOR: MERCHANTS LANDSCAPE SERVICES, INC., a California Corporation 22 [insert name] [insert corporate officer title] [insert name] [insert financial officer title] [END OF SIGNATURES] Exhibit C — Maintenance Frequency Schedule Exhibit A Page 13