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08-18-2020 - AGENDA ITEM 09 CONSIDERATION OF FIRST AMENDMENT TO THE MERCHANT LANDSCAPE SERVICES PROFESSIONAL SERVICES AGREEMENT FOR CIVIC CENTER AND CITY PARKS LANDSCAPE SERVICES12/1/2020 Print Staff Report AGENDA ITEM NO. 9 DATE: August 18, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF FIRST AMENDMENT TO THE MERCHANT LANDSCAPE SERVICES PROFESSIONAL SERVICES AGREEMENT FOR CIVIC CENTER AND CITY PARKS LANDSCAPE SERVICES RECOMMENDATION: It is recommended that the City Council approve the First Amendment to the Professional Services Agreement with Merchant Landscape Services, Inc. and authorize the City Manager to execute the amendment. BACKGROUND: The current 30-month contract with Merchant Landscape Services, Inc. for landscaping and maintenance of the Civic Center and City parks, commenced on January 1, 2020. The annual cost of the contract is $778,488. Following the City Council's declaration of a fiscal emergency through Resolution 2020-46 on May 19, 2020, management asked staff to negotiate reductions in all service contracts by 5-10%. DISCUSSION: Staff worked with Merchant Landscape Services to negotiate savings by reducing the scope of services for all City parks for the current fiscal year as follows: • Suspending all fertilizer turf and shrub applications • Suspending turf renovations • Suspending mulch replenishing • Reducing trash pickup to two days a week - Monday and Friday • Suspending 3 man/40 hours a week requirement • Changing shrub, groundcover and weed control maintenance to an 8-week cycle • Changing edging and weed eater detailing to be bi-weekly The reductions will result in a monthly savings of $10,963 and a potential annual savings of $131,556. The largest impact from these reductions is the suspension of the three -person crew, which will reduce park trash pick up from seven days a week to twice a week. Trash will be picked up on Mondays and Fridays. In addition to park trash pickup, bulky items will not be removed from trash enclosures by Merchant Landscape Services. However, staff is working with Athens to have bulky item pickup at parks covered under the existing waste hauling franchise agreement. https://destinyhosled.00m/print_ag_memo.cfm?seq=915&rev_num=0&mode=6demal&reloaded=true&id=93782 1/2 12/1/2020 Print Staff Report LEGAL REVIEW: The City Attorney's Office has reviewed the amendment and approved it as to form. OPTIONS: The City Council has the following options: 1. Adopt staff's recommendation. 2. Provide alternative direction. Prepared by: Mike Cresap Public Services Superintendent Fiscal Impact FISCAL IMPACT: The current annual cost of the contract is $778,488. With the reduction in scope of service savings of $131,556, the annual cost of the contract for Fiscal Year 2020-21 will be $646,932. This results in a direct savings to the General Fund. Attachments Attachment No. 1 - Amendment CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.Gfm?seq=915&rev_num=0&mode=6demal&reloaded=true&id=93782 2/2 ATTACHMENT NO. 1 FIRST AMENDMENT TO CITY OF WEST COVINA PROFESSIONAL SERVICES AGREEMENT WITH MERCHANT LANDSCAPE SERVICES, INC. FOR LANDSCAPE AND MAINTENANCE OF CIVIC CENTER AND CITY PARKS THIS FIRST AMENDMENT ("Amendment") is made and entered into as of July 1, 2020 ("Effective Date') by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and MERCHANT LANDSCAPE SERVICES, INC, a California corporation ("Consultanf'). WHEREAS, City and Consultant entered into a Professional Services Agreement on January 1, 2020 for Consultant to provide landscaping and maintenance services for the Civic Center and City Parks (the "Original Agreement"); and WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency through the adoption of Resolution No. 2020-46; and WHEREAS, in declaring the fiscal emergency, the City Council directed the City Manager to take any and all actions necessary to address the fiscal emergency, including, but not limited to, measures relating to personnel and benefit costs, operations, and reductions in service levels, and reviewing and negotiating changes to labor agreements, service agreements, and franchise agreements, to the extent permitted by law; and WHEREAS, City and Consultant have negotiated a reduction in Consultant's service levels pursuant to the Original Agreement, which will reduce Consultant's monthly compensation by $10,963.00 and Consultant's annual compensation by $131,556.00; and WHEREAS, City and Consultant desire to amend the Original Agreement accordingly. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: The Scope of Services relating to City Parks shall be amended as follows: a. Suspend all fertilizer turf and shrub applications b. Suspend turf renovations C. Suspend mulch replenishing d. Change trash pickup to twice a week, Mondays and Fridays e. Suspend 3 man/40 hours a week requirement f. Shrub, groundcover and weed control maintenance will be on an 8-week cycle g. Edging and weed eater detailing will be bi-weekly 2. Section 2.1 of the Agreement shall be deleted in its entirety and replaced as follows: 2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "B," attached hereto and made a part of this 1 of 2 Agreement (the "Fee Schedule"). For the period commencing July 1, 2020 and ending June 30, 2021, Consultant's monthly compensation shall not exceed Fifty - Three Thousand Nine Hundred Eleven Dollars ($53,911.00). Commencing July 1, 2021, Consultant's monthly compensation shall not exceed Sixty -Four Thousand Eight Hundred Seventy -Four Dollars ($64,874.00). Consultant's total compensation, including any extension periods exercised pursuant to this Agreement, shall not exceed Three Million Three Hundred Seventy -One Thousand Six Hundred Forty Dollars ($3,371,640.00). All terms not defined herein shall have the same meaning and use as set forth in the Original Agreement. All other terms, conditions, and provisions of the Original Agreement not in conflict with this Amendment shall remain in full force and effect. IN WITNESS WHEREOF, City and Consultant have executed this Amendment as of the date set forth above. CITY OF WEST COVINA CONSULTANT David Carmany Mark Brower City Manager President ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney Donna Brower Corporate Secretary 2of2