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02-02-2021 - AGENDA ITEM 05 CONSIDERATION OF FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT WITH MARIPOSA LANDSCAPES, INC.AGENDA ITEM NO. 5 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: February 2, 2021 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT WITH MARIPOSA LANDSCAPES, INC. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to negotiate and execute the First Amendment to the Contract Services Agreement with Mariposa Landscapes, Inc., providing for a month -to - month extension of the agreement with a monthly maximum compensation of $17,653.33. BACKGROUND: Mariposa Landscapes, Inc. (Mariposa) has been providing landscape maintenance of citywide medians, right- of-ways, commercial zones, sidewalks, tree wells and other areas to the City of West Covina since November 1999. On February 2, 2016, the City entered into a new agreement with Mariposa for a term of five (5) years, with three optional one-year extensions. DISCUSSION: On February 2, 2016, staff recommended and City Council awarded the agreement in the amount of $1,059,200 for the five(5)-year term. At that time the agreement was awarded, the monies for the three (3) one (I) -year extension options were not included in the $1,059,200. The agreement total with the three (3) extensions should have been approved in the amount of $1,694,720. As the approved amount did not include the extension options, the current agreement cannot be extended without increasing the total compensation. Instead of exercising an extension option, staff has been directed to issue a Request for Proposals (RFP) for the services. In the interim, in order to ensure that there is no lapse in services, staff recommends that City Council authorize the City Manager to execute the First Amendment to the agreement, which provide for a month -to - month extension of the agreement, with a monthly maximum compensation of $17,653.33 (the current maximum monthly compensation). Staff anticipates completing the RFP process and seeking Council authorization for award of a new agreement tentatively in June 2021. 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: Renee M. G. Chavez, Accounting Technician Fiscal Impact FISCAL IMPACT: The total cost for the remainder of the 20-21 fiscal year would be $81,600. There are sufficient funds available in this year's operating budget Account No. 124.61.4141.6130 to cover the $81,600 for the remainder of this Fiscal Year. Attachments Attachment No. 1 - First Amendment to Agreement with Mariposa Landscapes, Inc. CITY COUNCIL GOALS & OBJECTIVES: Enhance the City Image and Effectiveness ATTACHMENT NO. 1 FIRST AMENDMENT TO CITY OF WEST COVINA CONTRACT SERVICES AGREEMENT WITH MARIPOSA LANDSCAPES, INC. FOR LANDSCAPE MAINTENANCE OF CITYWIDE MEDIANS, RIGHTS -OF -WAY, COMMERCIAL ZONES, PARKWAYS AND OTHER AREAS THIS FIRST AMENDMENT ("Amendment') is made and entered into as of the 1st day of February, 2021 ("Effective Date") by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and MARIPOSA LANDSCAPES, INC., a California corporation ("Contractor'). WHEREAS, City and Contractor entered into a Contract Services Agreement dated February 2, 2016 for Contractor to provide landscape maintenance of citywide medians, rights - of -way, commercial zones, parkways and other areas ("Original Agreement'); and WHEREAS, Section 3.4 of the Original Agreement provides for an initial term of five (5) years, commencing on the date Contractor commences work, with the option for City and Contractor to extend the term for up to three (3) additional one (1) year periods; and WHEREAS, City and Contractor desire to confirm that Contractor commenced work on February 2, 2016; and WHEREAS, City and Contractor desire to amend Section 3.4 of the Original Agreement to remove the annual extension options and instead provide that the term of the Original Agreement shall automatically extend on a month -to -month basis until terminated by City; and WHEREAS, City and Contractor desire to add a provision authorizing the City to terminate the Agreement at any time by providing fifteen (15) days written notice to Contractor; and WHEREAS, City and Contractor desire to set forth Contractor's compensation for the monthly extension periods accordingly. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. City and Contractor hereby confirm that Contractor commenced work on February 2, 2016. 2. Section 3.4 of the Original Agreement shall be amended to read as follows: 3.4 Term — Unless earlier terminated in accordance with this Agreement, this Agreement shall continue in full force and effect for a period of five (5) years, commencing on February 2, 2016 and ending on February 1, 2021. Thereafter, the term of this Agreement shall automatically extend for successive one (1) month periods until such time as City provides Contractor with written notice of termination in accordance with Section 3.5 of this Agreement. Mariposa Landscapes, Inc. First Amendment Form Revised April 2020 3. The Original Agreement shall be amended to add a new Section 3.5 to read as follows: 3.5 Termination — The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Contractor. In the event of such termination, Contractor shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. Commencing February 2, 2021, Contractor's monthly compensation shall not exceed Seventeen Thousand Six Hundred Fifty -Three Dollars and Thirty -Three Cents ($17,653.33.00). Contractor shall be paid in accordance with Section 2.1 of the Original Agreement. 5. All terms not defined herein shall have the same meaning and use as set forth in the Original Agreement. 6. All other terms, conditions, and provisions of the Original Agreement shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS.] Mariposa Landscapes, Inc. First Amendment Form Revised April 2020 IN WITNESS WHEREOF, City and Contractor have executed this Amendment as of the date set forth above. CITY OF WEST COVINA CONTRACTOR David Carmany Terry Noriega City Manager President ATTEST Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney Mariposa Landscapes, Inc. First Amendment Form Revised April 2020