SR - AGR-6375 - LANDSCAPE MAINTENANCE OF CITY PARKS AND RECREATION TRAILS1. SUBJECT
Appropriation of $123,584 from General Fund unreserved fund balance and award of four -year
agreement for landscape maintenance of city parks and recreation trails, Proposal No. 156 -37, to
Merchants Landscape, Inc. (Merchants) in the aggregate not to exceed amount of $2,993,600.
2. SUMMARY
The proposed four -year agreement will provide comprehensive landscape maintenance of 20 city
parks and recreation trails at the same service level provided today. An appropriation of
$123,584 from the unreserved general fund balance is necessary to cover the difference in cost
from the current budgeted amount compared to the new agreement cost for the ten months
remaining in fiscal year 2016 — 2017 (FY 17). Funds to cover cost of services for the remaining
fiscal years will need to be budgeted during the annual budget process.
3. RECOMMENDED ACTION
1. Authorize the appropriation of $123,584 from General Fund 100 unreserved fund balance to
expenditure account 100.7022.51420.00000 (Maintenance Contracts); and
2. Approve agreement and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
Upon appropriation, funds will be available to cover the cost of the agreement for the remaining
ten months of FY 17 as follows:
100.7022.51420.00000 (Maintenance Contracts) $583,000
5. STRATEGIC PLAN GOAL(S)
3a. Enhance and promote quality of life in the community — Refurbish, maintain, develop and /or
expand public use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Land Use Element Goal 1.0 Meet the present and future needs of all residential and business
sectors with a diverse and balanced mix of land uses.
Policy 1.7: Provide a range of open space and park amenities to meet the diverse needs of
current and new residents.
7. DISCUSSION and BACKGROUND
Background
Over the course of time, the City has transitioned from all in -house employee manned city park
and recreational trail maintenance, to a hybrid of employee and contract services, to where in
2011 the City moved to full contract services for city parks and recreational trail maintenance. In
July 2011 the City entered into a five -year landscape maintenance services agreement with
Merchants. This original agreement was set to expire June 30, 2016, however was extended by
City Council on June 14 for an additional 90 -days to allow for a more detailed review of new
service proposals. The current agreement with Merchants is set to expire September 30, 2016.
Discussion
Community Services Department advertised a Request for Proposals (RFP) for landscape
maintenance services of city parks and recreation trails (Bid 156 -37) on March 17, 2016. The
RFP covers landscape maintenance services including, but not limited to, mowing and edging;
limited tree care and trimming; turf care, including aeration and fertilization; shrub, ground cover
and vine care, weed management (manually and chemically); litter /trash collection and disposal;
cleaning of tables and hard surfaces; pest control; and tot lot and sand court care for 20 of the
City's 21 developed parks. The one park not included in this proposal is Plaza Park which is
maintained under a separate agreement. In addition, the RFP covers maintenance of the Santiago
Creek Bike Trail (Recreational Trails) which includes the same scope and specifications of the
parks, as well as, regular inspection and cleaning of the trail tread, and weed abatement and /or
trimming of vegetation along areas adjacent to the trail and along the trail spur (old railroad right
of way) section from near Grijalva Park Sports Center to Collins Ave. The service level for all
maintenance is consistent with the 2011 agreement.
Four proposals were received on April 7, 2016 and evaluated by a staff committee from
Community Services and Public Works Departments. The Evaluation Summary is attached for
reference. Of the four proposals received, Mariposa Landscape and Landscape West did not
score high enough to be considered. Mariposa Landscape did not score well due to their cost
proposal being more than double the current budgeted amount. Landscape West was less than the
current budgeted amount, however, the overall proposal was rated very low due to poor
references on performance, an inadequate proposed staffing model, and a low rating in the area
of capacity and experience.
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ITEM 08/09/16
The top two rated firms were interviewed in an effort to better understand their ability to best
deliver the services at a reasonable cost to the City. Both firms included cost proposals that
exceed the current annual budget amount of $551,300 (four -year aggregate of $2,205,200). Of
the top two proposals, Nieves Landscape was ranked best overall, however, their cost proposal
for the four -year aggregate amount of $4,212,649 is substantially higher than the current annual
budgeted amount aggregated over four years. The second best proposal was submitted by
Merchant. Their cost proposal for the four -year aggregate amount of $2,973,600, though higher
than the current budgeted amount, is more in line with what was anticipated based on recently
negotiated City service contracts. Known factors which contribute to increased costs include the
Affordable Care Act, mandated wage rates, increased costs for insurance, and fluctuation of gas
prices. A Cost Proposal Abstract including the annual and four -year aggregate cost from each of
the proposers is attached for reference.
Based on the results of the Evaluation Summary, interviews, and consideration of the City's
annual budget, staff recommends award of a four -year agreement to Merchants beginning
September 1, 2016. The agreement requires City Council to appropriate the needed funds each
fiscal year, for years two through four, to continue with the agreement. If the funds are not
appropriated in any of the subsequent fiscal year budgets, the contract can be terminated. The
agreement allows for the City Manager to execute each of the three annual extensions, subject to
City Council's approval through the annual budget process of an amount sufficient to pay the
compensation set forth in each year.
In addition to the scheduled routine work, the agreement allows for $5,000 of additional work
each year (aggregate total of $20,000) to be performed as directed by the Parks Division
Manager. Examples of additional work requested in the last maintenance agreement are
replacement planting of trees and shrubs, and sod /turf replacement.
An appropriation of $123,584 from the unreserved general fund balance is necessary to cover the
difference in cost from the current budgeted amount compared to the new agreement cost for the
ten months remaining in FY 17. Funds for the additional fiscal year agreements will need to be
budgeted during the annual budget process.
The total value of scheduled work under this agreement is $2,993,600. The yearly breakdown is
as follows:
Year
Base Amount
Additional Repairs
Annual Total
Annual Difference
Year One
$693,600
$5,000
$698,600*
Year Two
$720,000
$5,000
$725,000
$26,400 (4% increase)
Year Three
$756,000
$5,000
$761,000
$36,000 (5% increase)
Year Four
$804,000
$5,000
$809,000
$48,000 (6% increase)
TOTALS:
$2,973,600
$20,000
$2,993,600
$110,400
*The agreement is effective September 1, 2016. Ten months of year one is included in FY 17, at
a total not to exceed amount of $583,000 (including the $5,000 additional repairs).
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ITEM 08/09/16
8. ATTACHMENTS
Evaluation Summary
Cost Proposal Abstract
Draft Agreement
ITEM 08/09/16
CITY COUNCIL MINUTES AUGUST 9, 2016
3. CONSENT CALENDAR (Continued)
3.4 Treasurer's Reports for the months of April, May, and June 2016. (C2500.F)
ACTION: Received and filed.
AGREEMENTS
3.5 Agreement with California Waters Development, Inc. (California Waters) for
ongoing maintenance of City Fountains for a four -year Aggregate amount not to
exceed $70,317. (A2100.0; AGR -6373)
ACTION: Approved agreement with California Waters Development Inc., and authorized
the Mayor and City Clerk to execute on behalf of the City.
(ITEM REMOVED AND HEARD SEPARATELY)
3.6 Appropriation of $123,584 from General Fund Unreserved Fund Balance and Award
of four -year Agreement for Landscape Maintenance of City Parks and Recreation
Trails, Proposal No. 156 -37, to Merchants Landscape, Inc. in the aggregate not -to-
exceed amount of $2,993,600. A2100.0; AGR -6375)
City Manager Rick Otto clarified that this was a four -year agreement for landscape services
for 20 of the City's improved parks including Santiago Creek Trail.
MOTION — Smith
SECOND — Murphy
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to: 1) Authorize the appropriation of $123,584 from General Fund 100 unreserved
fund balance to expenditure account 100.7022.51420.00000 (Maintenance Contracts); and
2) Approve agreement with Merchants Landscape Inc. and authorize the Mayor and City
Clerk to execute on behalf of the City.
3.7 Agreement with Stantec Consulting Service, Inc. for professional services for the UCI
Medical Center (UCIMC) Master Meter Program in an amount not -to- exceed
$94,660. (A2100.0; AGR -6374)
ACTION: Awarded Consultant Services Agreement to Stantec Consulting Service, Inc. of
Irvine, CA, in an amount not to exceed $94,660; and authorized the Mayor and City Clerk
to execute the necessary documents on behalf of the City.
3.8 A Consultant Services Agreement with CSG Consultants, Inc., a Private Consultant
Firm, to Provide Plan Review and Field Inspection Services for the Building Division
of the Community Development Department. (A2100.0; AGR- 3375.L)
ACTION: Approved and authorized the Mayor and City Clerk to execute a consultant
services agreement with CSG Consultants, Inc., with the total compensation not to exceed
$80,000.
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