HomeMy WebLinkAbout08 APPROVAL OF CONTRACT AMENDMENT NO. 4=_- ` AGENDA REPORT Rev ewed m 8 .~.*~''~ City Manager Finance Director MEETING DATE: JUNE 15, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVAL OF CONTRACT AMENDMENT NO. 4 FOR SPECTRUM CARE LANDSCAPE AND IRRIGATION MANAGEMENT, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT 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 Tustin Landscape and Lighting District. 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 District. RECOMMENDATION It is recommended that the City Council approve contract amendment No. 4 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 $321,780. Sufficient funds have been budgeted in the 2010-2011 Fiscal Year Landscape and Lighting District budget for these services. As proposed, the contract amendment will result in net annual savings of 4% or $13,400 in the Districts 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 District properties in the Tustin Landscape and Lighting District (TEED). 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 has approached the City with a desire to continue to provide the landscape maintenance services in the TLLD. 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 SpectrumCare Contract Amendment (TEED) June 15, 2010 Page 2 reduce the current contract cost by 4%. The annual contract cost reduction totals $13,400. Total compensation will not exceed $321,780 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. 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 No. 4 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. u a S. Stack, P.E. as urchill r t of Public Works/City Engineer Fiel Services Manager Attachment: Contract Amendment # 4 S:\City Council Items\2010 Council Items\Approval of Contract Extension -Spectrum TLLD.docx ~ouRT~ Ann~~onn>=r~r ro CONTRACT AGi~l=E~11ENT This Fourth 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 "Can#ractor"). This Amendment is made with reference to the following: RECITALS A. WHEREAS, City and Contractor entered in#o an Agreement dated November 20, 2006 (the "Agreement"), wherein Contractor agreed to perform landscape maintenance services in accordance with the Agreement and specifications entitled °Annual Landscape Maintenance Services for the Assessment District" for the period from January 1, 2007 to June 30, 2007, B. WHEREAS, the initial term of the Agreement was 6 months, with the option to be extended for three additional ane-year terms by written agreement of the parties; C. WHEREAS, City and Contractor entered into the First Amendment to the Agreement an Ju{y 1, 2007 and extended the Agreement until June 80, 2008. D. WHEREAS, City and Contractor entered into the Second Amendment to the Agreement on July 1, 2008 and extended the Agreement until June 30, 2005 E. WHEREAS, City and Contractor entered into the Third Amendment to the Agreement on May 15, 2009 and extended the Agreement until June 30, 2010. F. WHEREAS, City and Contractor desire to extend the Agreement for an additional one (1) year period from July 1, 2010 #hrough June 30, 2011. G. WHEREAS, City and the Contractor also desire to adjust Contractor's compensation under this Agreement to reflect a voluntary 4% decrease in the corttraet unit prices for the period from July 1, 201'0 to June 84, 2011 or ttte duratfon of the Agreement. H. WHEREAS, Con#ractor agreed to provide the City annually $24,000 of {andscapefirrigation upgrades at no cast to the City. Locations to be determined by staff within either General Fund Areas or Assessment District Areas. I. WHEREAS, City and Contractor end that a one (1) year extension of the Agreement will promote stability at a predictable cost and provide upgrades to the existing Iandscapelirrigation at no additional cost to the City, AGff2EEMENT 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, 2011 unless sooner terminated pursuant to Section Q, Item 6-5 of the Agreement. B. Section C, Article !I of the Agreement, as amended, is further amended to decrease Contractor's compensation by 4°!o for the 2010/2011 fiscal year. City shall pay the Gontractor the following sums for the periods indicated: 1. From July 1, 2010 to June 34, 2011, the Gity shall pay the Contractor, on a monthly basis an amount equal to $26,815.04. 2. City shalt pay the Contractor a sum not to exceed $321,780.48 for the period from July 1, 2010 to June 30, 2011. C. Except as expressly amended by this fourth and final amendment, all o#her terms and conditions of the Agreement and al! attachments and exhibits #hereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date fiirst above v+rr(tten. BY: THE CITY C7F TUST(N (SeaE} Mayor of fhe Gity ofTustin ATTEST: APPROVED AS TO FORM City Clerk of the City of Tustin ~, City Attorney Date APPROVED AS TO CONTENT: Public Works Director Date CONTRACTOR Firm Name: SpectrumCare Landscape and Irrigation Management, (nc. (Seal} BY: John Hall TITLE: President ATTACH PROPER NOTARY ACKNOWLEDGEMENT FOR SIGNATURES OF AUTHORIZED PERSON (S}