Loading...
HomeMy WebLinkAbout03 APPROVE AMENDMENT NO. 4 TO SOCAL SANDBAGS FOR CARETAKER SERVICESMEETING DATE TO: FROM: SUBJECT: SUMMARY Agenda Item Reviewed: ENDPORT City Manager Finance Director JULY 1, 2014 JEFFREY C. PARKER, CITY MANAGER CITY MANAGER'S OFFICE TUSTIN LEGACY PROPERTY MANAGEMENTICARETAKER SERVICES Approval is requested for allocation of funding for Tustin Legacy Property Management/Caretaker services from the Land Proceeds Fund. RECOMMENDATION It is recommended that the City Council: Approve a supplemental appropriation in an amount not to exceed $400,000 from the unappropriated reserves of the Land Held for Resale Fund (Fund 189) for Fiscal Year 2014 -2015 to fund the services required pursuant to proposed Amendment No. 4 to the City's Consultant Services Agreement with So Cal Sandbags for Tustin Legacy Property Management/Caretaker Services. FISCAL IMPACT It is estimated that the cost of the current contract for So Cal Sandbags' property management/caretaker services from July 1, 2014 through June 30, 2015 will not exceed $400,000 and will be funded from the Land Held for Resale Fund (Fund 189). BACKGROUND The City and So Cal Sandbags, Inc. ( "Consultant ") entered into a Consultant Services Agreement on January 3, 2011, as amended by that certain Amendment No. 1 to the Consultant Services Agreement dated as of June 19, 2011, by Amendment No. 2 dated as of July 26, 2012, and by Amendment No. 3 as of June 18, 2014 (as amended, the "Original Agreement ") for the provision of property management and caretaker services for City- maintained properties located on a portion of Tustin Legacy. Agenda Report Property Management/Caretaker Amendment No. 4 July 1, 2014 Page 2 Among other things, property management also includes providing erosion and sediment control obligations across the site; otherwise, failure to ensure all erosion and sediment control are properly installed and regularly maintained can subject the project and City to penalties of up to $10,000 a day. There is also the need to continue to maintain certain regulatory permits (401, 404, and 1600), previously assumed from the former master developer, as obtained from the Regional Water Quality Control Board, U.S. Army Corps of Engineers, and the California Department of Fish & Game, respectively, and among other things provide the necessary authorizations to remove certain wetland channels across the site in support of development within the Project Area. In addition to performing the required erosion and sediment control obligations, property maintenance must continue to be performed (e.g., weed control/abatement, litter collection, etc.) to protect existing grading and fill sites that have been created for certain Tustin Legacy Backbone Infrastructure (i.e., Tustin Ranch Road construction project boundaries, ramps for pedestrian walkways to cross Armstrong Road, Warner Avenue and Tustin Ranch Road), fire prevention, access control to the property (e.g., perimeter fencing, securing and minimal maintenance of Hangar 29), and maintenance of security fencing and gates. Until the responsibility of various Disposition Parcels are transferred, and until such time as new developer(s) or specific capital improvement projects are identified for all remaining portions of the property, or portions of the property (depending on the strategy selected), management of properties within the site must continue to ensure proper maintenance and oversight of the properties. Pursuant to Amendment No. 1, the original Service Area was modified to remove property associated with the Tustin Ranch Road Phase I Construction Project, pursuant to Amendment No. 2 additional property was added back to the total Service Area to reflect the re-incorporation of certain properties due to changes in the Tustin Ranch Road Phase II Construction Project limits, pursuant to Amendment No. 3 the Service Area was modified to reflect the removal of Disposition Parcels 1A-North and 2A plus the inclusion of adjacent properties formerly maintained by a separate contractor, and pursuant to Amendment No. 4 the Service Area was again modified to reflect the removal of property associated with development of property in Disposition Parcels 1B and 6A. These changes to the City Service Area are reflected in the updated Service Area Map attached as Exhibit A to Amendment No. 4. To determine if additional modifications to the Service Area will be needed to reflect changes in City responsibilities of various early Disposition Parcels, Amendment No. 4 will require the City to provide confirmation Agenda Report Property Management/Caretaker Amendment No. 4 July 1, 2014 Page 3 of the Service Area and notice to the Consultant by January 1, 2015 to proceed with the second six months of service. The initial Agreement executed on January 3, 2011 for the same services was at an annual cost not-to-exceed $547,524 and was subsequently reduced to $425,000 after the Consultant was on-site for a period of time and was able to better determine actual costs. The total costs for FY 12/13 are projected to be just at or under $425,000; therefore, the same amount is requested for FY 13/14 with the elimination of the Spectrum Care contract and incorporating the services into So Cal Sandbags' contract resulting in an annual savings of $71,207.16. Various grading and import operations that occurred on City property during FY13/14 have resulted in an increase in caretaker activities (e.g. changes in topography have greater erosion control needs); however, the total costs for FY 14/15 are actually projected to be reduced slightly to not to exceed $400,000 as a result of the development of property by Standard Pacific Homes in DP 1B/6A. So Cal Sandbags, Inc. has provided property management/caretaker services on City- maintained properties at Tustin Legacy since January 2011 and has continued to protect the City's interest and has repeatedly exceeded the City's expectations. Staff will be available to answer any questions. 44,bue+ Ma West Principal Management Analyst Attachment: 1. Amendment No. 4 to Consultant Services Agreement for Property Management/Caretaker Services AMENDMENT NO. 4 TO CONSULTANT SERVICES AGREEMENT FOR PROPERTY MANAGEMENT /CARETAKER SERVICES FOR A PORTION OF TUSTIN LEGACY This Amendment No. 4 to CONSULTANT SERVICES AGREEMENT ("Amendment No. 4") is made and entered into by and between the CITY OF TUSTIN, a municipal corporation ("CITY") and So Cal Sandbags, Inc, a California Corporation ("CONSULTANT"). RECITALS 1. The City and So Cal Sandbags, Inc. ("Consultant") entered into that certain Consultant Services Agreement on January 3, 2011, as amended by that certain Amendment No. 1 to the Consultant Services Agreement dated as of June 19, 2011, by Amendment No. 2 dated as of July 26, 2012, and by Amendment No. 3 dated as of June 18, 2013 (as amended, the "Original Agreement") pursuant to which, Consultant agreed to provide property management and caretaker services for City-maintained properties located on a portion of Tustin Legacy. 2. In approving the Original Agreement, the City Council authorized that in the event that the City Service Area needed to be reduced as a result of construction or property transfers during the term of the Consultant Services Agreement, the City Manager to execute any Amendments to the Consultant Services Agreement. 3. Pursuant to Section 7 ("Term") of the Original Agreement, the Agreement may be renewed annually, subject to budget appropriations, in accordance with the provision set forth therein, including required Agreement changes or modification provision contained in Section 2.5 ("Changes"). Sufficient funds have been appropriated for the Fiscal Year 2013-14 and the City and Consultant desire to renew the Agreement for the Fiscal Year through June 30, 2015. 4. Property management and caretaker services on City-maintained properties at Tustin Legacy continue to be an on-going need of the City to ensure protection of public health and safety. Failure to ensure all erosion and sediment control are properly installed and regularly maintained can subject the City to penalties of up to $10,000 a day. In addition, the City continues to maintain certain regulatory permits (401, 404, and 1600), previously assumed from the former master developer, as obtained from the Regional Water Quality Control Board, U.S. Army Corps of Engineers, and the California Department of Fish & Game, respectively, and that among other things provide the necessary authorizations to remove certain wetland channels across the site in support of development at Tustin Legacy. The site will eventually be self-mitigating with the future widening of Peters Canyon Channel; however, since the wetlands status of channels within the site were eliminated during the former master developer's construction 1 activities in compliance with regulatory permits, the channels must be maintained in their current condition in order to avoid recreating wetlands and potentially subjecting the City to additional mitigation requirements and associated costs. In addition to performing the required erosion and sediment control obligations across the site, the City must continue to perform property maintenance (e.g., weed control/abatement, litter collection, etc.), protect existing grading and fill sites that have been created for certain Tustin Legacy Backbone Infrastructure (i.e. Tustin Ranch Road Phase II project boundaries, ramps for pedestrian walkways to cross Armstrong Road, Warner Avenue and Tustin Ranch Road), fire prevention, access control to the property (e.g., perimeter fencing, Hangar 29), and maintenance of security fencing and gates. Until the City transfers responsibility of various Disposition Parcels, and until. such time as a new developer(s) or specific capital improvement projects are identified for all or portions of the property (depending on the strategy selected), the City must continue to manage properties within the site to ensure proper maintenance and oversight of the properties. 5. Pursuant to Amendment No. 1, the original Service Area was modified to remove property associated with the Tustin Ranch Road Phase I Construction Project, pursuant to Amendment No: 2 additional property was added back to the total Service Area to reflect the re-incorporation of certain properties due to changes in the Tustin Ranch Road Phase II Construction Project limits, pursuant to Amendment No. 3 the Service Area was modified to reflect the removal of Disposition Parcels 1A-North and 2A plus the inclusion of adjacent properties formerly maintained by a separate contractor, and pursuant to Amendment No. 4 the Service Area was again modified to reflect the removal of property associated with development of property in Disposition Parcels 1B and 6A. These changes to the City Service Area are reflected in the updated Service Area Map attached hereto as Exhibit A pursuant to Section 2.5 ("Changes"). To determine if additional modifications to the Service Area will be needed to reflect changes in City responsibilities of various early Disposition Parcels, Amendment No. 4 will require the City to provide confirmation of the Service Area and notice to the Consultant by January 1, 2015 to proceed with the second six months of service. 6. The CITY and CONSULTANT desire to amend the Original Agreement to renew the contract for an additional year and to modify the Service Area. NOW, THEREFORE, based on the promises and mutual covenants herein, the parties agree as follows: AGREEMENT 2 1. Section 2: ("Compensation") of the Agreement is hereby amended to add: "2.1 Compensation. For the services rendered pursuant to this Agreement, Consultant shall be compensated and reimbursed consistent with the specific cost line items and requirements for operating costs, as more fully set forth in Exhibit C and which is incorporated herein by reference as though fully set forth herein, and which shall not in any event exceed a total compensation amount for a twelve month period of Four Hundred Thousand Dollars ($400,000). The monthly operating cost for the provision of caretaker/property management services shall also not exceed the amounts as set forth in Exhibit C. The "Not to Exceed Monthly Amount" is based on the estimated average for the year. Because of the seasonal nature of maintaining the site particularly due to rainfall, the "Not to Exceed Monthly Compensation Amount" in the dry months may not be reached. In "wet"months the effort to maintain the site by the Consultant may also result in the Consultant needing to apply additional resources and hours which would typically exceed the "Not to Exceed Monthly Compensation Amount". To recognize this variation of seasonal response, time and materials that do not get billed up to the "Not To Exceed Monthly Compensation Amount" in any one month (the `Monthly Surplus') as shown in Exhibit C may be applied, if determined warranted by the City, to a subsequent month during the annual term of this Agreement based on a time and materials basis only provided; however, in no case shall the maximum "Not to Exceed Compensation Amount" for the year be exceeded." 2. Section 7: ("Term") of the Agreement is hereby amended to add: "Unless terminated in accordance with Section 8.7 of this Agreement, the term of services under this Agreement shall commence upon execution of the Agreement for a one (1) year period, including required Agreement changes or modifications contained in Section 2.5. Notwithstanding the above-mentioned provisions, the City shall also provide confirmation of the Service Area and notice to the Consultant by January 1, 2015 prior to the Consultant proceeding with the second six months. If modifications to the Service Area or other terms of the Agreement are needed to reflect changes in the City's property management/caretaker responsibilities at Tustin Legacy or changes in the City's funding resources, changes to the Agreement will need to occur pursuant to Section 2.5 ("Changes') prior to proceeding with the second six months of service." 3. Exhibit A ("Service Area Map") of the Agreement is hereby replaced with the Service Area Map attached hereto as Exhibit A. 4. Except as amended herein, all other terms and conditions of the Original Agreement and all the attachments and exhibits thereto shall remain in full force and effect and are not modified by this Amendment No. 4. 3 • IN WITNESS WHEREOF, the parties have executed this Amendment No. 4 to be effective as of the dates stated below: CONSULTANT "So Cal Sandbags" Date Peter Rasinski President CITY OF TUSTIN Date Jeffrey C. Parker City Manager APPROVED AS TO FORM: By: David Kendig, City Attorney S:\RDA\Consultants\So Cal Sandbags\AMENDMENT NO 4 So Cal Sandbags.docx 4 Exhibit A Service Area Map