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HomeMy WebLinkAbout05 GEN FUND LANDCARE 05-16-05 AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director -¡;¡r MEETING DATE: MAY 16, 2005 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: SUBJECT: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION CONTRACT AMENDMENT FOR LANDSCAPE MAINTENANCE SERVICES FOR THE GENERAL FUND AREAS WITH TRUGREEN LANDCARE SUMMARY Approval of the first contract amendment with TruGreen LandCare, will extend the agreement for landscape maintenance services for the General Fund areas for the period from July 1, 2005 to June 30, 2006, and will provide a price increase of 3.8%. This Amendment will also provide for enhanced level of service by providing additional labor at a cost of $1,248 per month. RECOMMENDATION It is recommended that the City Council approve the first amendment to the contract agreement between TruGreen LandCare and the City of Tustin for landscape maintenance services for the General Fund areas, subject to City Attorney approval. FISCAL IMPACT Adequate funds will be requested in the City of Tustin's Field Services and Water Services Operating Budget for the 2005/2006 Fiscal Year to cover the cost of the proposed adjustment. DISCUSSION The City has contracted with TruGreen LandCare since July 1, 2004 for maintenance of all General Fund areas. The original agreement was for a 1-year period with three 1-year extensions available to City. This contract amendment would extend the agreement for the first of three 1-year extensions from July 1, 2005 through June 30, 2006 and would grant the contractor a 3.8% increase which is less than the 4.4% adjustment in the Consumer Price Index. TruGreen LandCare has not been providing consistent service of a reasonable quality over the last year, but has been very responsive in trying to correct any service deficiencies that are not up to City standards. Staff and TruGreen have met and reviewed potential options to enhance the level of service and to insure a higher quality of performance at a reasonable cost to the City. Staff has concluded that the best way for the City to accomplish the enhanced level of service is to authorize TruGreen LandCare to provide additional Laborer/Supervisor (with a truck) at a rate of 16 hours per week to rove the General Fund Areas and to take care of the hot spot areas on a regular basis. Staff has negotiated a reduced hourly rate for this additional labor for an extra cost of $1,248.00 per month or $14,976.00 annually. This cost will be in addition to the 3.8% Cost of Living. Contract Amendment for Landscape Maintenance Services for the General Fund Areas with TruGreen Landcare May 16, 2005 Page 2 Staff has also investigated the option of rebidding the contract and has concluded, based on informal discussions with landscape contractors, the bidding experience of neighboring cities and our experience with last years rebidding that there is a potentially high risk in receiving higher prices for the same service from other landscape contractors. The implementation of the proposed amendment will allow the City to receive the desired level of service at a reasonable cost. The contractor will be compensated a sum not to exceed $207,888.30 for the period from July 1,2005 through June 30, 2006 or $17,324.03 per month. ~~ Director of Public Works/City Engineer ¡),~H1 ø~~ Wisam Altowaiji Field Services Manager TDS: WA: ccg: Contract amends TruGreen Gen Fund areas 5-16-05.doc. Attachment FIRST AMENDMENT TO CONTRACT AGREEMENT THIS FIRST AMENDMENT is entered into this - day of - 2005, by and between the City of Tustin, a Municipal Corporation (herein referred to as "City"), and TruGreen Land Care, a California corporation, (herein referred to as "Contractor"). This Amendment is made with reference to the following: RECITALS A. WHEREAS, City and Contractor entered into an Agreement dated June 7, 2004, 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 one year, with the option to be extended for three additional one-year terms by written agreement of the parties; C. WHEREAS, City and Contractor desire to exercise the extension clause pursuant to Section 0, Page 0-2, Paragraph 4, "Length of Contract", Item B, to. extend the Agreement for one year; D. WHEREAS, City and Contractor also desire to adjust Contractor's compensation under this Agreement, to reflect a 3.8% increase effective July 1, 2005 for the 2005/2006 fiscal year. This increase will reflect the rise in the Consumer Price Index, for Los Angeles, Orange and Riverside Counties, pursuant to Section D, Page 0-3, Paragraph 6, "Extension of Term of Contract". E. WHEREAS, City and contractor also desire to provide additional labor at a rate of 16 hours per week to enhance the current level of service, and also desires to adjust contractors compensation under the Agreement to reflect a negotiated price increase of $18 per hour for that additional labor, subject to the required enhanced level of performance by the contractor. AGREEMENT The Agreement is hereby amended as follows: A. The term of the Agreement is extended for the first one-year extension, through June 30, 3006, unless sooner terminated pursuant to Section 0, Page 0-9, Item 6-5 of the Agreement. B. City shall pay the contractor the following sums for the periods indicated: 1. From July 1, 2005 to June 30, 2006, the City shall pay the Contractor, on a monthly basis, an amount equal to $17,324.03. 2. City shall pay the Contractor a sum not to exceed $207,888.30 for the period from July 1, 2005 to June 30, 2006. C. Except as expressly amended by this first Amendment, all other terms and conditions of the Agreement and all attachments and exhibits thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date first above written. THE CITY OF TUSTIN BY: (Seal) Mayor of the City of Tustin ATTEST: City Clerk of the City Tustin APPROVED AS TO FORM City Attorney Date APPROVED AS TO CONTENT: Public Works Director Date CONTRACTOR Firm Name: TruGreen LandCare (Seal) BY: TITLE: Sergio Hernandez Reaional Operations Manaaer ATTACH PROPER NOTARY ACKNOWLEDGEMENT FOR SIGNATURES OF AUTHORIZED PERSON (S)