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  Agenda Item   25.    
City Council Meeting
Meeting Date: 08/17/2021  
FROM: Bill Gallardo

Ratify Termination and Award Multiple Contracts for Landscape Maintenance Services at Various Locations in the City of Brea
1.  Ratify Termination of S. C. Yamamoto and,
 2.  Award Landscape Maintenance Agreements to:
      A.) Nieves Landscape Inc. for Mowing at City Parks in the amount of $103,950;
      B.) Nieves Landscape Inc. for Landscape Maintenance at City Medians, Parkways and
           Greenbelts in the amount of $138,392.64;
      C.) Nieves Landscape Inc. for Landscape Maintenance in Maintenance District 1 in the
            amount of $16,350;
      D.) Nieves Landscape Inc. for Landscape Maintenance in MD 3 in the amount of $27,000;
      E.) Nieves Landscape Inc. for Landscape Maintenance in MD 6 in the amount of
      F.) Nieves Landscape Inc. for Landscape Maintenance in MD 7 in the amount of
            $13,410; and
3.  Authorize City Manager to approve contract extensions.
In July of 2020, staff posted a joint City RFP on for landscape maintenance services that included mowing, irrigation work, ball field maintenance, playground maintenance and other landscape maintenance activities.  Of the 33 companies that downloaded the RFP, eight proposals were received, seven of which were qualified proposers.  Staff from Brea and La Habra interviewed all seven companies to determine their ability to perform the work required at competitive rates.  After evaluating criteria such as appearance of equipment, company's uniform policy, references, quality of work in the field, proposal quality and interview results, staff ranked the companies as follows:

1. S. C. Yamamoto, Inc.
2. Nieves Landscape, Inc.
3. Mariposa Landscapes, Inc.
4. Complete Landscape Care, Inc. 
5. Tropical Plaza Nursery, Inc.
6. Priority Landscape Services, LLC.
7. Merchants Landscape Services, Inc. 

Contracts were awarded in December of 2020 to Mariposa Landscapes, Inc., S. C. Yamamoto, Inc. and Tropical Plaza Nursery, Inc. (Contractors).  Some of the other contractors withdrew their offers for pricing or not meeting insurance requirements.  The effective date of the contracts was January of 2021, for an initial period of four and one half years until June 30, 2025, with three possible one-year extensions at the sole discretion of the City.  Awards were made to Contractors in an effort to balance cost efficiencies while maintaining quality.

S.C. Yamamoto was awarded six contracts and has struggled to maintain quality levels in all areas.  Staff met with them in December 2020 to review the specific Contract areas and related boundaries to avoid a long learning curve.  Staff has also met with them on several other occasions in addition to the daily interactions with our Landscape Contract Administrator.  Staff suggested schedules for City and Maintenance District areas to help improve their productivity and quality.  On June 22, 2021, staff issued a Notice-to-Cure letter giving the Contractor 30 days to resolve their quality and productivity issues until July 21, 2021.  After an unsatisfactory response to the Notice-to-Cure, a 30-day Notice to Terminate was issued on July 21, 2021, which will be effective August 20, 2021.

Staff is recommending the six contracts be awarded to Nieves Landscape, Inc. who rated second highest in all areas evaluated.  The following chart shows current prices and recently negotiated prices with Nieves.
Agreement/Contractor New Contract
Contract price
Parks Mowing - Nieves Landscape $103,950 $68,040 $36,708
Landscape Maintenance at Medians/Entry
Markers and Greenbelts - Nieves Landscape
$138,392.86 $139,560 ($1,167.14)
Landscape Maintenance in Maintenance
District 1 - Nieves Landscape
$16,350 $12,480 $3,870
Landscape Maintenance in Maintenance
District 3 - Nieves Landscape
$27,000 $21,120 $5,880
Landscape Maintenance in Maintenance
District 6 - Nieves Landscape
$65,000 $60,000 $5,000
Landscape Maintenance in Maintenance
District 7 - Nieves Landscape
$13,410 $10,080 $3,330

As shown above, the cost increase to the mowing contract is $35,910 from the current cost and $28,111 more than the pre-RFP contract price of $75,833.  Increases to the Districts compared to the pre-RFP contract prices are shown below:
District New Contract Price Pre-RFP Contract Price Difference
M.D. #1 $16,350 $14,712 $1,638
M.D. #3 $27,000 $24,961 $2,039
M.D. #6 $65,000 $66,009 ($1,009)
M.D. #7 $13,410 $13,206 $204

If approved, the new contracts with Nieves would go into effect immediately with the initial term to expire on June 30, 2025.  Just as with the original landscape contracts, staff recommends the contracts include three possible one-year extensions at the sole discretion of the City.  Any potential future CPI increases would be reviewed and approved by the Finance Committee.
This item was reviewed by the Finance Committee at their meeting on August 10, 2021 and recommended for City Council approval.
Staff issued a joint RFP with the City of La Habra in July of 2020.  The two cities interviewed the seven proposers and based on the interviews, proposals and references, staff made award recommendations.  S.C. Yamamoto has been unable to meet it's contract conditions and was issued a Notice of Termination effective August 20, 2021.  Staff is recommending the six contracts be awarded to Nieves Landscape, Inc.  The additional funding needed (shown below) will be addressed through the first quarter 2021-2022 budget adjustments:
110-51-5151-4269 $36,708
110-51-5142-4269 $0
341-51-5112-4266 $1,638
343-51-5112-4266 $2,039
346-51-5112-4266 $0
347-51-5112-4266 $204
William Gallardo, City Manager
Prepared by:  Bill Bowlus, Public Works Superintendent
Concurrence:  Tony Olmos, P.E., Director of Public Works
Agreement for Parks Mowing
Agreement - City Medians
Agreement - MD1
Agreement - MD3
Agreement - MD6
Agreement MD7
Notice to Cure
Notice of Termination
Fee Schedule Parks Mowing
Fee Schedule City Medians Greenbelts Entry Markers
Fee Schedule MD1
Fee Schedule MD3
Fee Schedule MD6
Fee Schedule MD 7
Approved COI Nieves

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