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HomeMy WebLinkAbout14 ASSESSMENT TRUGREEN 04-03-06 AGENDA REPORT MEETING DATE: APRIL 3, 2006 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION SUBJECT: CONTRACT AMENDMENT FOR LANDSCAPE MAINTENANCE SERVICES FOR THE ASSESSMENT DISTRICT AREAS WITH TRUGREEN LANDCARE SUMMARY Approval of the second contract amendment with TruGreen LandCare will extend the agreement for landscape maintenance services for the Assessment District areas for the period from July 1, 2006 to June 30, 2007. This amendment also provides for the addition of landscape maintenance services for the Peters Canyon Trail - Phase V. RECOMMENDATION It is recommended that the City Council approve the second amendment to the contract agreement between TruGreen LandCare and the City of Tustin for landscape maintenance services for the Assessment District areas, subject to City Attorney approval. FISCAL IMPACT Adequate funds will be requested in the 2006/2007 Fiscal Year budget to cover the cost of the proposed adjustment. DISCUSSION . The City has contracted with TruGreen LandCare since July 1, 2004 for maintenance of all Assessment District areas. The original agreement was for a 1-year period with three 1-year extensions available to the City. This contract amendment would extend the agreement for the second of three 1-year extensions from July 1, 2006 through June 30, 2007. This contract amendment would also add the maintenance for the Peters Canyon Trail - Phase V and will increase the contractor's compensation by $160 per month for this additional area. TruGreen LandCare has not been providing consistent service of a reasonable quality over the last two years. Staff and TruGreen have met and reviewed potential options to enhance the level of service and to ensure a high quality of performance at a reasonable price to the City. TruGreen LandCare has brought in a new Service Manager specifically to improve the level of service. The new Service Manager has been very responsive in trying to correct past deficiencies by replacing crew members and by implementing a quality control program. We have seen an increase in the level of service in the last 3 months. Due to the inconsistency of their past performance, TruGreen is not requesting an increase in contract prices for the 2006/2007 Fiscal Year. Contract Amendment for Landscape Maintenance Services for the Assessment District Areas with TruGreen Landcare April 3, 2006 Page 2 Staff 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 that there is a high probability in receiving higher prices (approximately 25% more) for the same contract specification from other landscape contractors. Staff is prepared to continually monitor the performance of the contract and make deductions in accordance with the contract specification for those items of work that do not meet the City specifications. The approval of the proposed amendment will provide the desired level of service, without an increase in cost for the existing areas and will provide for the addition of landscape maintenance at the Peters Canyon Trail - Phase V, at a rate of $160.00 per month. The contractor will be compensated a sum not to exceed $240,121.92 for the period from July 1, 2006 through June 30, 2007 or $20,010.16 per month. Tim D. Serlet Director of Public Works/City Engineer Wisam Altowaiji Field Services Manager TDs: WA: cog: Second contract amend TruGreen A.D. 4-3-Q6.doc. Attachment SECOND AMENDMENT TO CONTRACT AGREEMENT THIS SECOND AMENDMENT is entered into this - day of 2006, by and between the Çity of Tustin, a Municipal Corporation (herein referred to as "City"), and TruGreen Land Care, a Califomia LLC, (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 Assessment District 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 entered into the first amendment to the Agreement on July 1, 2005 and extended the Agreement until June 30, 2006. D. WHEREAS, City and Contractor desire to exercise the extension clause pursuant to Section D, Page D-2, Paragraph 4, "Length of Contract", Item B, to extend the Agreement for one year; E. WHEREAS, City and Contractor also desire to add the landscape maintenance for the Peters Canyon Trail - Phase V to the Agreement, and to adjust contractor's compensation under the Agreement to reflect a negotiated price increase for this area. AGREEMENT The Agreement is hereby amended as follows: A. The areas of landscape maintenance services to be provided by the Contractor under this Agreement is amended to include the Peters Canyon Trail - Phase V effective July 1, 2006. B. The term of the Agreement is extended for the second one-year extension, through June 30, 3007, unless sooner terminated pursuant to Section D, Page D-9, Item 6-5 of the Agreement. C. City shall pay the Contractor the following sums for the periods indicated: 1. From July 1, 2006 to June 30, 2007, the City shall pay the Contractor, on a monthly basis, an amount equal to $20,010.16 which includes $160 for Peters Canyon Trail- Phase V. 2. City shall pay the Contractor a sum not to exceed $240,121.92 for the period from July 1,2006 to June 30,2007. D. Except as expressly amended by this second 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 Firm Name: CONTRACTOR TruGreen LandCare (Seal) BY: TITLE: Sergio Hernandez Reqional Operations Manaqer ATTACH PROPER NOTARY ACKNOWLEDGEMENT FOR SIGNATURES OF AUTHORIZED PERSON (S)