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Home My WebLink About09 APPROVAL OF CONTRACT AMENDMENT NO. 5i Agenda Item 9 =-- ~ AGENDA REPORT Reviewed: i -''~ City Manager Finance Director MEETING DATE: JUNE 15, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVAL OF CONTRACT AMENDMENT NO. 5 FOR SPECTRUM CARE LANDSCAPE AND IRRIGATION MANAGEMENT, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN THE GENERAL FUND AND TUSTIN LEGACY AREAS OF THE CITY SUMMARY Staff is requesting the City Council to approve a contract amendment with SpectrumCare Landscape and Irrigation Management, Inc. (SpectrumCare) to provide a one (1) year extension to the existing landscape maintenance contract for the General Fund and Tustin Legacy areas in the City. The proposed amendment will result in a 4% decrease from the existing contract fee and will also require the performance of additional maintenance by the Contractor at no additional cost to the City. RECOMMENDATION It is recommended that the City Council approve contract amendment No. 5 to the existing contract with SpectrumCare Landscape and Irrigation Management, Inc., to provide a one (1) year extension from July 1, 2010 through June 30, 2011 and authorize the Mayor and City Clerk to execute the contract amendment, subject to final budget approval for FY 2010-2011. FISCAL IMPACT The annual not to exceed value of the proposed contract amendment is $332,674 for the General fund areas and $71,207.16 for Tustin Legacy. Sufficient funds have been budgeted in the 2010- 2011 Fiscal Year Field Services, Water Services and Marine Base Redevelopment Fund budgets for these services. As proposed, the contract amendment will result in an annual savings of 4% or $16,967 in the 2010-11 Fiscal Year budget. Additionally, SpectrumCare will contribute an average $2,000 per month toward a citywide Landscape Irrigation Enhancement Program, for a total contribution not-to-exceed $24,000 annually. Each subsequent extension, if granted per the amendment, will realize the same annual net savings and enhancement benefit. DISCUSSION The City has contracted with SpectrumCare Landscape & Irrigation Management, Inc. (SpectrumCare) since January 1, 2007 for maintenance of all General Fund and Water Services properties. Tustin Legacy landscape maintenance responsibilities were included when the contract was extended in July of 2008. The original agreement with SpectrumCare was fora 6-month period with three 1-year extensions available to the City. The current contract extension with SpectrumCare will expire on June 30, 2010. SpectrumCare Contract Amendment (GF, Water & Legacy) June 15, 2010 Page 2 SpectrumCare has approached the City with a desire to continue to provide the landscape maintenance services in the City. SpectrumCare has requested the City to consider a one year contract extension with an option for two additional one year extensions. In exchange, SpectrumCare is proposing to continue to provide all current landscape maintenance services and reduce the current contract cost by 4%. The annual contract cost reduction totals $16,967. Total compensation will not exceed $332,674 for General Fund areas and $71,207.16 for the Tustin Legacy properties for the 2010/2011 Fiscal Year. In addition, SpectrumCare has also offered, at no cost to the City, to implement a Landscape Irrigation Enhancement Program. SpectrumCare will contribute $2,000 per month, not-to-exceed $24,000 annually, for a citywide enhancement program -primarily focused on our gateway entries over the next year working with staff. This additional work is separate from the extra work within the Tustin Landscape and Lighting District Capital Improvement Project. SpectrumCare has provided consistent service of acceptable quality over the last three and a half years and staff has been very satisfied with their responsiveness to the City's concerns. Therefore, staff is recommending that the City Council approve contract amendment number 5 to the existing contract with SpectrumCare Landscape and Irrigation Management, Inc., to provide a one (1) year contract extension from July 1, 2010 through June 30, 2011 with a City option to grant two additional one-year extensions. ~~~ ~-~ Stack, P.E. s hurchill Public Works/City Engineer Field Services Manager Attachment: Contract Amendment # 5 S:\City Council Items\2010 Council ItemsWpproval of Contract Extension -Spectrum GF, Water and Legacy.docx FIFTH AMENDMENT TO CONTRACT AGREEMENT This Fifth Amendment (The "Amendment") is entered into the _ day of 2010, by and between the City of Tustin, a municipal corporation (herein referred to as "City"), and SpectumCare Landscape & Irrigation Management, Inc., a California corporation, (herein referred to as "Contractor"). This Amendment is made with reference to the following: RECITALS A. WHEREAS, City and Gontractor entered into an Agreement dated November 20, 2008 (the "Agreement"}, wherein Contractor agreed to perform landscape maintenance services in accordance with the Agreement and specifications entitled "Annual Landscape Maintenance Services for the General Fund areas." B. WHEREAS, the initial term of the Agreement was 6 months, with the option to be extended for three additional one-year terms by written agreement of the parties; C. WHEREAS, City and Contractor entered into the First Amendment. to the Agreement on July 1, 2007 and extended the Agreement until June 30, 2008. D. WHEREAS, City and Contractor entered into the Second Amendment fio the Agreement on July 23, 2007, to add the landscape maintenance of "Tustin Legacy Parcels". E. WHEREAS, City and Contractor entered into the Third Amendment to the Agreement. on July 1, 2008, which extended the Agreement until June 30, 2009, and added five newly landscaped areas at Tustin Ranch Road, Warner Avenue, Edinger Avenue, Moffett Drive, and Valencia Avenue to the Agreement. F. WHEREAS, City and Gontractor entered into the Fourth Amendment to the Agreement on June 16, 2009, which extended the Agreement from July 1, 2009 through June 30, 2010. This Agreement also added three new landscaped areas at Pasadena Well, Edinger Avenue median from Newport Avenue to Del Amo Avenue, and the new Tustin Library. G. WHEREAS, City and the Contractor desire to amend the Agreement far an additional one {1) year period from July 1, 2010 through June 34, 2011. H. WHEREAS, City and Contractor also desire to adjust Contractor's compensa#ion under this Agreement to reflect a voluntary 4% decrease in the contract unit prices for the period from July 1, 2010 to June 30, 2011 or the duration of the Agreement. 1. WHEREAS, Contractor agreed to provide the City annually $24,040 of landscape/irrigation upgrades at na cost to the City at [ocatians to be determined by staff within either General Fund Areas or Assessment District Areas. J. WHEREAS, City and Contractor find that a one (1) year extension of the Agreement will promote stability at a predictable cost and provide upgrades to the existing landscape/irrigation at no additional cost to the City. AGREEMENT The Agreement is hereby amended as follows: A. Section D, item 2-1, Paragraph 4, Length of Contract, is amended to extend the term of the Agreement for an additional one-year period Through June 30, 20111, unless sooner terminated pursuant to Section D, Item 6-5 of the Agreement. B. Section C, Article II of the Agreemen#, as amended, is further amended to decrease Contractor's compensation by 4°I~ for the 2010/2011 Fiscal Year. City shall pay the Contractor the following sums as indicated: 1 _ From Jufy 1, 2010 to June 30, 2011, the City shall pay the Contractor, on a monthly basis an amount equal to $27,722.83 for the General Fund areas. The City shall also pay the eontrac#or, on a monthly basis, an amount squat to $5,933.93 for Tustin Legacy parcels. 2. City shall pay the Contractor a sum not to exceed $332,674 for the period from July 1, 2010 to June 30, 2011 for the General Fund areas. The City shall also pay a sum not to exceed $71,207.16 for the period from July 1, 2010, to June 30, 2011 for the Tustin Legacy parcels. C. Except as expressly amended by this Amendment, all other terms and conditions of the Agreement and all attachments and exhibits thereto, shall remain in full force and effect. fN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date first above written. THE CITY OF TUSTIN APPROVED AS TO FORM ~' ~ , - ~~ :,~- City Attorney _____ APPROVED AS TO CONTENT: ATTEST: City Clerk of the City of Tustin bate Public WorKs Director Date BY: (Seal) Mayor of the City of Tustin CONTRACTOR Firm Name: SpectrumCare Landscape and Irrigation Management, Inc. (Seal) BY: Jahn Hail. TITLE: President ATTACH PROPER NOTARY ACKNOWLEDGEMENT FOR SIGNATURES OF AUTHORIZED PERSON (S}