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HomeMy WebLinkAbout07 - Amendment to M/RSA with Nature's Image, Inc. (Contract No. 8537-1)e �EvuPpRr CITY OF O NEWPORT BEACH <,FORN City Council Staff Report April 29, 2025 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Kevin Pekar, Public Works Superintendent - 949-644-3069 kpekar@newportbeachca.gov TITLE: Approval of Amendment No. Two to Maintenance/Repair Services Agreement with Nature's Image, Inc. (Contract No. 8537-1) ABSTRACT: To enhance the City of Newport Beach's hazardous fuel mitigation efforts and wildfire preparedness, staff requests City Council approval of an amendment to the City's agreement with Nature's Image, Inc. (Nature's Image) for weed abatement and vegetation management services. If approved, the amendment would extend the term through April 22, 2029, increase the total not -to -exceed (NTE) contract amount by $2,334,050 to $4,868,983, and incorporate green -waste reporting requirements into the agreement. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. Two to the Maintenance/Repair Services Agreement with Nature's Image, Inc. to extend the term through April 22, 2029, increase the not -to -exceed amount by $2,334,049.71, for a new not -to -exceed amount of $4,868,982.95, and incorporate green -waste reporting requirements, and authorize the Mayor and City Clerk to execute the amendment. DISCUSSION: Beyond ornamental landscape maintenance, the City also separately contracts with Nature's Image for weed abatement and vegetation reduction/management services specifically to address fire hazardous fuels on City -owned lands, help protect the community from the potential threat of wildfire, and meet State of California standards. Nature's Image has provided the City with superior weed abatement and vegetation management services over the past six years, and staff from the Public Works Department and the Fire Department's Fire Prevention Division approve of the contractor's performance. The original contract was competitively bid in 2019, and Nature's Image had the highest scoring proposal overall, including the lowest cost proposal. Staff negotiated with Nature's Image on the current proposed amendment, and Nature's Image is not requesting additional increases to its current rates beyond the existing contractual Consumer Price Index increase of 2%. 7-1 Approval of Amendment No. Two to Maintenance/Repair Services Agreement with Nature's Image, Inc. (Contract No. 8537-1) April 29, 2025 Page 2 To further enhance these services, staff requests that the City Council approve a contract amendment extending the City's agreement with Nature's Image through April 22, 2029, and increasing the agreement's total NTE amount by $2,334,050 to $4,868,983. This increase in contract authority will also provide for an additional $250,000 worth of vegetation removal/management per year to reduce fire hazardous fuels on City properties. The proposed total NTE increase should sufficiently fund both historical work levels and the enhanced hazard mitigation services per year through the remaining contract term. This will enable the City to expand hazard -related vegetation management in current sites such as Buck Gully, as well as at sites with minimal previous mitigation, such as the City -owned area between Bonita Canyon Sports Park and Arroyo Park. The increased fuel reduction effort would begin this fiscal year. These contract services are used to control and manage vegetation and habitat surrounding homes and open areas throughout the city. Along with vegetation clearance, trimming and weed abatement to reduce hazardous fuels, these services may also include erosion protection, slope stabilization, slope restoration and other activities that may be necessary to support hazardous fuel reduction activities. The agreement does not include any spraying of insecticides or herbicides, and is only for manual, hand -tool labor of weeds and other hazards, as per the City's Integrated Pest Management Policy. The amended agreement will also incorporate, at no additional cost to the City, necessary green -waste reporting requirements for the contractor to help meet State organic material recycling mandates. FISCAL IMPACT: The proposed FY 2025-26 budget will include sufficient funds to sustain historical and enhanced service levels. Most services are expended to the Public Works Department Parks Hazard Mitigation account, 0108031-841055. Other departments occasionally utilize this contract for specific projects and fund those services through their own operating accounts. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Amendment No. Two with Nature's Image 7-2 ATTACHMENT A AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES AGREEMENT WITH NATURE'S IMAGE FOR WEED ABATEMENT SERVICES THIS AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 29th day of April, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and NATURE'S IMAGE, INC., a California corporation ("Contractor"), whose address is 20361 Hermana Circle, Lake Forest, CA 92630, and is made with reference to the following: RECITALS A. On April 23, 2019, City and Contractor entered into a Maintenance/Repair Services ("Agreement") to perform maintenance and/or repair services ("Project"). B. On April 9, 2024, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No One.") to extend the term of the Agreement and to increase the total compensation. - C. The parties desire to enter into this Amendment No. Two to reflect additional Services not included in the Agreement, as amended, to extend the term of the Agreement to April 22, 2029, to update the Schedule of Billing Rates, and to increase the total compensation. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: TERM Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on April 22, 2029, unless terminated earlier as set forth herein." 2. SERVICES TO BE PERFORMED Exhibit A to the Agreement shall be supplemented to include the Scope of Services, attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). Exhibit A to Amendment One and Exhibit A to Amendment No. Two shall collectively be known as "Exhibit A." The City may elect to delete certain Services within the Scope of Services at its sole discretion. 7-3 3. COMPENSATION TO CONTRACTOR Effective as of May 1, 2025, Exhibit B to the Agreement shall be replaced in its entirety with the Schedule of Billing Rates, attached hereto as Exhibit B and incorporated herein by reference. Section 4.1 of the Agreement is amended -in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items and subcontractor fees, shall not exceed Four Million Eight Hundred Sixty Eight Thousand Nine Hundred Eighty Two Dollars and 95/100 ($4,868,982.95), without prior written authorization from City. Except as otherwise stated in Section 4.2 of the Agreement, no billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment No. Two, including all reimbursable items and subcontractor fees, in an amount not to exceed Two Million Three Hundred Thirty Four Thousand Forty Nine Dollars and 71/100 ($2,334,049.71). 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] NATURE'S IMAGE, INC. Page 2 7-4 IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Dateja�Z5 By: Aar n C. Harp City Attorney ATTEST: Date: M Leilani I. Brown City Clerk Attachments: CITY OF NEWPORT BEACH, a California municipal corporation Date: M Joe Stapleton Mayor CONTRACTOR: NATURE'S IMAGE, INC., a California corporation Date: By: Michelle M Caruana Chief Executive Officer, Chief Financial Officer, Secretary [END OF SIGNATURES] Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates NATURE'S IMAGE, INC. Page 3 7-5 EXHIBIT SCOPE OF SERVICES NATURE'S IMAGE, INC. Page A-1 7.6 EXHIBIT A SCOPE OF SERVICES • REPORTING o Contractor shall provide the City with Green Waste Reports on a monthly basis which shall report monthly tonnage of green waste disposed of by Contractor in the performance of this Agreement. 7-7 EXHIBIT B SCHEDULE OF BILLING RATES NATU,RE'S IMAGE, INC. Page B-1 7.8 natures� iw)A image 20361 Hermana Circle, Lake Forest, CA 92630 Phone: (949) 680-4400 Fax: (949) 680-4450 February 25, 2025 ATTN: Kevin Pekar Parks and Trees Superintendent City of Newport Beach kpekar(cD-newportbeachca.gov RE: Contract C-8537-1, Weed Abatement Services - 2025 Adjustment to Billing Rates Per section 4.2 of the contract, Exhibit B (Schedule of Billing Rates) shall be adjusted in proportion to the changes in the Consumer Price Index, subject to a maximum annual increase of 2.0%. The Consumer Price Index data to be used shall be from the month that is three (3) months prior to the anniversary date of the agreement. The effective date of the agreement is April 23rd, thus CPI adjustments will be determined based on the January data. CPI data for January 2025 supports 3.3% increase for the 12-month percent change, therefore the annual maximum increase of 2.0% shall be applied to the updated Billing Rates for 2025. (Source: httos://www.bls.gov/regions/west/news-release/consumemriceindex losangeles.htm#tableA) Please see the attached updated Billing Rates with the 2.00% increase. The updated schedule of Billing Rates shall be applied to all work starting May 1, 2025 to April 30, 2026. Sincerely, Daniel Slinger Chief Estimator M: (949) 795-2480 Email: dslinger(a)-naturesimage.net Attachments: Billing Rates Natures Image, Inc. CL# California A & C-27 720513 (DIR # 1000003271), & Arizona A-21 168366 DGS Small Business (SB/SBPW- DGS #15579) & SBA Woman Owned Small Business (#WOSB180914) CPUC Utility Supplier Diversity Program, Woman Business Enterprise (WBE) #10BS0017 7-9 Copy of Year 6_ Bitting Rate Increase C-8537-1. Weed Abatement Services Billing Rates (May 1, 2025 to April 30, 2026) LOCATIONS Site # Site Description Work Type Standard Annual Cost 1 19th Street and Balboa Blvd W CFC $2,779.83 2 2315 Holly Lane 1111 CFC $89.10 3 Back Bay Road C WUI $16,141.04 4 Big Canyon Nature Park H - $80,571.51 5 Bonita Canyon and University Bridge W CFC $70.17 6 Bonita Creek Park Service Road C WUI $2,270.86 7 Buck Gully (Lower) H - $821.92 8 Buck Gully (Middle) H - $3,700.87 9 Upper Middle Buck Gully H - $35,869.33 10 Buck Gully (Upper) H - $1,966.82 11 Cliff Drive Nature Park W CFC $553.51 12 Coast Highway (Roadside east of Pelican Point) W CFC $1,661.65 13 Fernleaf Ramp W CFC $393.14 14 Fletcher Jones Bike Trail C WUI $350.82 15 Harbor Cove Fire Access Road and Trail C WUI $29,501.12 16 Harbor View Nature Park W CFC $14,908.16 17 Hillside Area Along Coast Highway (North of Back Bay View Park) W CFC $1,700.64 18 Iris easement W CFC $314.07 19 Jamboree and Bayview Way C WUI $1,479.01 20 Jamboree and MacArthur W CFC $2,011.37 21 liamboree Roadside Apron and Bike Trail W CFC $1,220.62 22 Kings Road (1801 &1811 Kings Rd) W CFC $268.40 23 Mariners Drive cul-de-sac W CFC $189.33 24 Mesa Drive (east.of Irvine Avenue) W CFC $790.73 25 Newport Dunes bike path W CFC $794.07 26 Newport Dunes Slope (Below Coast Highway) W CFC $3,039.32 27 San Miguel Drive at Big Canyon Reservoir W CFC $1,142.68 28 Santa Ana Ave E, W - $16,239.04 29 South side of Bayside at Carnation and along Fernleaf W CFC $719.46 30 Spyglass Canyon Park H - $11,247.38 31 Spyglass Roadside W CFC $1,172.73 32 University Drive at Irvine Ave W CFC $382.00 33 1 Valley Acreage (Near Spyglass Canyon Park) H - $1,859.90 (C) Clearance Trimming, (E) Erosion Protection, (H) Hazard Reduction, (W) Weed Abatement (CFC) 2016 California Fire Code (CFC), Section 304.1.2, (WUI) City of Newport Beach Wildland Urban Interface Area Standard for Hazard Reduction Unit Costs Labor per hour $72.39 Per Hour Debris hauling per yard $217.17 Per Yard Clear debris from v-ditches and shovel width clearance on both sides of the ditches per foot $1.95 Per Foot page 1 of 2 7-10 Copy of Year 6_ Billing Rate Increase Function Cost Function" - Pest Control I Cost Unit General Weed Control Post Emergent $12.81 1,000 Square Feet Pre-EmergenUturf or planter . - $22.28 1,000 Square Feet Pruning $7.24 10 Linear Feet Removals Full Tree PrUninglRemovals $133.65 10 Linear Feet Pruning $2,450.16 Day (3-Man Crew) Removals Planting Standard Material $2,450.16 Day (3-Man Crew) 1 Gal. Shrub $17.82 Each 5 Gal. Shrub $50.11 Each 15. Gal Shrub $194.90 Each 15. Gal Tree $278.43 Each 24 in. Box Tree $612.55 Each 36 in. Box Tree $1,670.57 Each 64 Count Flat Groundcover $66.82 Flat 16 Count 4 in. Flat Annual Color $44.55 Flat Turf- Seed and Top Dress $0.17 1,000 Square Feet Turf- Sod $1.11 1,000 Square Feet Hand -spread and rake in City Supplied Seed $41.21 1,000 Square Feet Hydroseed - Standard Coastal Sage Scrub Mix Erosion $100.24 1,000 Square Feet (Min. 0.5 Acre) Jute Netting $206.04 1,000 Square Feet Straw Waddles $389.79 100 Linear Feet 6mm Poly Sheeting secured w/ stakes and sandbags $361.96 1,000 Square Feet Straw Waddles secured w/ stakes $445.49 100 Linear Feet Sand Bags $434.35 100 Linear Feet page 2 of 2 7-11