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HomeMy WebLinkAbout07 AMENDMENT NO. 12 TO CSA WITH SO CAL SANDBAGS INC DocuSign Envelope ID:7F6E1 BB4-CA29-4240-9805-2C0B8B984BB5 0 Agenda Item 7DS Reviewed: ?n�� AGENDA REPORT City Manager DS 1W Finance Director �a MEETING DATE: DECEMBER 21 , 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT SUBJECT: AMENDMENT NO. 12 TO CONSULTANT SERVICES AGREEMENT WITH SO CAL SANDBAGS INC FOR PROPERTY MANAGEMENT/CARETAKER SERVICES AT TUSTIN LEGACY SUMMARY: Amendment to existing Consultant Services Agreement (CSA) with So Cal Sandbags Inc that incorporates the Navy owned Reuse Parcel 18 site into the property management and caretaker Tustin Legacy service area and updates total budget. RECOMMENDATION: Authorize the City Manager to execute Amendment No. 12 to the CSA with So Cal Sandbags Inc. FISCAL IMPACT: The existing CSA with So Cal Sandbags Inc for FY 21/22 is a not to exceed amount of $360,000 which was adopted in the FY 21/22 budget. Amendment No. 12 to the CSA would add $55,000 for the cost of maintaining Reuse Parcel 18, bringing the total for the CSA for FY 21/22 to $415,000. On November 16, 2021 , the City Council approved a supplemental appropriation to account for the increased City costs of maintenance and security for Reuse Parcel 18. CORRELATION TO THE STRATEGIC PLAN: This action correlates to the City's Strategic Plan for Economic and Neighborhood Development (Goal A). BACKGROUND: On November 16, 2021, the City Council (acting as the Local Reuse Authority for former MCAS Tustin) approved a supplemental budget appropriation total of $330,000 to account for the City taking responsibility for maintenance and security on the approximately 78 acres of Navy owned Reuse Parcel 18 site at Tustin Legacy. DocuSign Envelope ID:7F6E1 13134-CA29-4240-9805-2COB81398413135 Agenda Report—Amendment No. 12 to CSA with So Cal Sandbags, Inc December 21, 2021 Page 2 A portion of the $330,000 approved scope of work includes incorporating Reuse Parcel 18 into the existing Tustin Legacy property management/caretaker CSA with So Cal Sandbags Inc. The property management/caretaker services include items such as weed control/abatement, pest control, litter collection, erosion control, fire prevention, access control and maintenance of fencing. This is a critical service in the City's larger responsibility of Executive Developer for Tustin Legacy, as the City maintains vacant property until such time as it is developed and/or transferred to other parties. So Cal Sandbags Inc has been successfully performing this contract role since 2011. In 2016, the City Council authorized the City Manager to execute amendments to the CSA with So Cal Sandbags Inc as long as the total compensation does not exceed $400,000 per Fiscal Year. Since 2016, the total compensation has continued to decrease and has been below $400,000 each year since; reflecting disposition of property from the City to others, or for development of parks and infrastructure construction that no longer require third party maintenance. The CSA is amended prior to each Fiscal Year to determine that year's area to be maintained and the not to exceed cost of services. In 2016, the City released a Request For Proposals (RFP) for property maintenance and caretaker services to ensure it was receiving the best possible service for a competitive price. Upon evaluation of responses, the City entered into a negotiated amendment (Amendment No. 6) to the existing So Cal Sandbags Inc contract. The most recent amendment to the CSA with So Cal Sandbags Inc for FY 21/22 (Amendment No. 11) reflects a not to exceed amount of$360,000 which was executed by the City Manager and adopted in the FY 21/22 budget. DISCUSSION: The cost of incorporating the 78 acres of Reuse Parcel 18 into the existing CSA with So Cal Sandbags Inc will add $55,000 to the existing CSA for the balance of FY 21/22. This requires an amendment (Amendment No. 12) to the CSA to reflect the new not to exceed total for FY 21/22 of $415,000 and requires City Council approval. Future amendments, if below $400,000, will be executed by the City Manager. So Cal Sandbags Inc. has performed its maintenance and caretaker services at a very high level and has continued to protect the City's interests at Tustin Legacy. The City Council has authorized the City to assume responsibility for maintaining and securing Reuse Parcel 18 and therefore Amendment No. 12 is recommended for approval. Do'c_ luSigned by: DocuSigned by: � rffli t 1jyr14Koster —efiH6jf 2Pfduee Economic Development Director Senior Management Analyst Attachment: Amendment No. 12 to CSA with So Cal Sandbags, Inc. DocuSign Envelope ID:7F6E1 BB4-CA29-4240-9805-2C0B8B984BB5 AMENDMENT NO. 12 TO CONSULTANT SERVICES AGREEMENT FOR PROPERTY MANAGEMENT /CARETAKER SERVICES FOR A PORTION OF TUSTIN LEGACY This Amendment No. 12 to Consultant Services Agreement ("Amendment No. 12") 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 dated as of June 19, 2011 , by Amendment No. 2 dated as of July 26, 2012, by Amendment No. 3 dated as of June 18, 2013, by Amendment No. 4 dated September 29, 2014, by Amendment No. 5 dated as of July 2, 2015, by Amendment No. 6 dated as of June 28, 2016, by Amendment No. 7 dated July 5, 2017, by Amendment No. 8 dated July 19, 2018, by Amendment No. 9 dated July 9, 2019, by Amendment No. 10 dated June 15, 2020, and by Amendment No. 11 dated June 18, 2021 (as amended, the "Original Agreement"), and 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 is authorized to execute any Amendments to the Consultant Services Agreement. In 2016, the City Council authorized the City Manager to execute subsequent amendments to the Original Agreement as long as the contract does not exceed $400,000 per Fiscal Year. 3. Pursuant to Section 7 ("Term") of the Original Agreement, the agreement may be renewed annually, subject to budget appropriations, in accordance with the provisions set forth therein, including required agreement changes or modifications contained in Section 2.5 ("Changes"). Sufficient funds have been appropriated for the Fiscal Year 2021-22 after the recent supplemental appropriation approved by the Tustin City Council on November 16, 2021 for Reuse Parcel 18 maintenance. 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 controls are properly installed and regularly maintained can subject the City to penalties of up to $10,000 a day and third-party lawsuits. Additionally, the City is responsible for maintaining regulatory permits obtained from the Regional Water Quality Control Board, U.S. Army Corps of Engineers, and the California Department of Fish & Game that were assumed from the former master developer which provide the 1 DocuSign Envelope ID:7F6E1 BB4-CA29-4240-9805-2C0B8B984BB5 necessary authorizations to remove certain wetland channels across the site in support of development within Tustin Legacy. Property maintenance (i.e. weed control/abatement, litter collection) must continue to be performed to protect existing grading and fill sites that have been created for certain Tustin Legacy infrastructure improvements such as Tustin Ranch Road, Warner Avenue, Armstrong Avenue, Moffett Drive and proposed pedestrian bridges. Fire prevention, access control to the property, maintenance of security fencing and gates and maintenance of Hangar 2 are also critical aspects of property maintenance. The City will need to maintain the property until it is developed and/or transferred to other parties. 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 11 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. Pursuant to Amendment No. 4, the Service Area was modified to reflect the removal of property associated with development of property in Disposition Parcels 1 B and 6A. Pursuant to Amendment No. 5, the Service Area was modified to reflect the removal of property associated with the new Army Reserve site, Warner Avenue and the addition of property associated with the Veterans Sports Park at Tustin Legacy as well as increased license activity at Hangar 2. The Service Area was not modified substantially for Amendment No. 6. Pursuant to Amendment No. 7, the Service Area was modified to reflect the removal of property associated with The Village at Tustin Legacy (22 acres), Tustin Legacy Park Phase 1 Segment 1 (11 acres), FLIGHT at Tustin Legacy (37 acres) and the future TUSD Legacy Academy site (40 acres). Pursuant to Amendment No. 8, the Service Area was modified to remove property associated with Levity at Tustin Legacy (15 acres), Veterans Sports Park (32 acres), and various new roads. Pursuant to Amendment No. 9, the Service Area was modified to remove property associated with Tustin Legacy Park Phase 1 Segment 2 (12 acres) and Moffett Drive (Tustin Ranch Road to Legacy Road); and adding back in property associated with FLIGHT Phase 2 (20 acres). Pursuant to Amendment No. 10, the Service Area was not changed; however, the former Army Reserve site was added as an optional location at no additional cost. The Service Area was not modified under Amendment No. 11 . The Service Area is being modified under Amendment No. 12 to include maintenance of Reuse Parcel 18 property, excluding the North Hangar/Hangar 1 , for the balance of FY 21/22 as well as removing acreage associated with property recently conveyed to Brookfield Homes Southern California LLC for The Landing project. 2 DocuSign Envelope ID:7F6E1 BB4-CA29-4240-9805-2C0B8B984BB5 NOW, THEREFORE, based on the promises and mutual covenants herein, the parties agree as follows: AGREEMENT 1. Section 2.1: ("Compensation") of the Original Agreement is hereby amended to read: "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 Fifteen Thousand dollars ($415,000). 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 and warranted by the City, to a subsequent month during the annual term of this Agreement based on a time and materials basis only. However, in no case shall the maximum "Not to Exceed Compensation Amount"for the year be exceeded." 2. Exhibit "A" ("Service Area Map") of the Original Agreement is hereby replaced with the Service Area Map attached hereto as Exhibit "A". 3. 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. 12. 3 DocuSign Envelope ID:7F6E1 BB4-CA29-4240-9805-2C0B8B984BB5 IN WITNESS WHEREOF, the parties have executed this Amendment No. 12 to be effective as of the dates stated below: CONSULTANT "So Cal Sandbags" Date Peter Rasinski President CITY OF TUSTIN Date Matthew S. West City Manager APPROVED AS TO FORM: By: David E. Kendig City Attorney 4 DocuSign Envelope ID:7F6E1BB4-CA29-4240-9805-2COB8B984BB5 Exhibit A City Service Area Map 5 " - s.' RF<n,.. .+ ,n.�.�-�ti^�,k4*`�.- fx--,e`��` rar:.r■r.�.. �. ��1,rem '1 �cr �, w , ..c�� a�3k «�J � i SFy 1d6 ■� ■ .� 3' (a 3 3 ;. !.�3`t - r+ � er i��L4- o f 31i ■S� � \}fix ��. l* � $� Eli E 11 '� '� ��/ X1919 r }�y It x - r r a