HomeMy WebLinkAbout17 - Amendment to M/RSA for Landscape Services for Parks and Facilities (Contract No. 8772-1)Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
September 23, 2025
Agenda Item No. 17
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, Parks & Trees Superintendent - 949-644-3069,
kpekar@newportbeachca.gov
TITLE: Approval of Amendment No. One to Maintenance and Repair
Services Agreement for Landscape Services for Parks and Facilities
with Merchants Landscape Services, Inc. (Contract No. 8772-1)
ABSTRACT:
The City of Newport Beach utilizes contract services to perform landscape maintenance
at City parks and facilities. As part of the agreement, Merchants Landscape Services, Inc.
(Merchants) performs an extensive number of on -call services, such as emergency storm
response, athletic field work, irrigation part replacement, plant replacement, landscape
enhancement and City street tree planting. Due to the high level of on -call work to date,
as well as anticipated work for the remainder of the agreement term, staff requests a
$1,300,000 increase to the on -call portion of the agreement for the remaining term.
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. One to the Maintenance and Repair Services Agreement
with Merchants Landscape Services, Inc. for Landscape Services for Parks and
Facilities to increase the on -call portion of the contract by $1,300,000 for a new on -
call NTE amount of $4,300,000 and a total NTE amount of $14,450,000 and authorize
the Mayor and City Clerk to sign the amendment.
DISCUSSION:
The Agreement encompasses 257 acres of landscape with approximately 43 acres of
sports fields spread out over 72 sites throughout the city. The sites maintained range from
large active sports parks, such as Sunset Ridge Park with a newly added parking lot and
pedestrian bridge, to smaller pocket parks, such as Galaxy View Park. The agreement
covers facilities, such as the Police Department and City fire station landscaping, and
maintenance of certain natural mitigation sites, such as Big Canyon.
17-1
Approval of Amendment No. One to Maintenance and Repair Services Agreement for
Landscape Services for Parks and Facilities with
Merchants Landscape Services, Inc. (Contract No. 8772-1)
September 23, 2025
Page 2
The current five-year agreement with Merchants was entered into on January 1, 2022, at
a total NTE of $13,150,000. The on -call portion of the contract was initially set at an NTE
of $3,000,000, or approximately $600,000 per year. Typical on -call services include
emergency storm response, traffic accident repairs, irrigation part replacements,
unforeseen plant replacements, athletic field renovations (such as new sod), landscape
enhancements, City street -tree plantings, clean-ups, repairs and plantings due to
vandalism. Merchants' on -call services have been utilized throughout the initial years of
the agreement more than anticipated. For example, unprecedented storms over the early
years of the contract resulted in Merchants assisting with emergency storm response
services including beach sand clean-ups at Newport Pier Plaza and Peninsula Park.
Replacement of plant material and the cost of irrigation parts for repairs has increased
due to inflation and supply chain issues. Merchants assisted with several large re -sodding
jobs, including sizeable athletic field renovations at Bonita Canyon Sports Park, Mariners
Park, Irvine Terrace Park and Lincoln Athletic Center. They also provided athletic
fieldwork requested by the City's youth sports groups, which is funded by user fees but
affects the NTE.
Several landscape projects on the horizon will require Merchants' assistance (e.g.
Police Station parking lot irrigation retrofit and landscape). These improvement and
rehabilitation needs are expected to stay consistent throughout the remainder of the
contract term.
The table below shows some of the typical expenditures over Merchants' initial term and
the approximate annual cost associated with each. The table is not inclusive of all types
of on -call work performed.
Typical Expenditures
Average Annual
Cost
Irrigation Repair Parts
$230,000
Plant Replacements and Hydroseeding
$130,000
Sod Work
$160,000
Tree Replacements (Accidents and Street Trees)
$40,000
Landscape Enhancements (smaller non-CIP type work)
$245,000
Staff is satisfied with the level of service and value Merchants provides and receives many
compliments from the public and other departments regarding the contractor's
maintenance and customer service. Merchants' supervisors and field staff have
developed detailed working knowledge regarding the intricate landscaped areas that
make up the contract. Finally, Merchants management has not requested an increase in
the contractor's billing rates, thus there is a value-added benefit with the amendment for
additional on -call work.
17-2
Approval of Amendment No. One to Maintenance and Repair Services Agreement for
Landscape Services for Parks and Facilities with
Merchants Landscape Services, Inc. (Contract No. 8772-1)
September 23, 2025
Page 3
Consequentially, to maintain high quality and attractive parks and facilities, staff is
requesting an increase to the on -call portion of the agreement by $1,300,000 for a new
on -call NTE amount of $4,300,000 and total overall NTE of $14,450,000 for the five-year
term of the contract.
FISCAL IMPACT:
The adopted and future planned operating budgets include sufficient funding for this
amendment. It will be expensed to the following Public Works Department accounts:
Account Name
Org Number
Account Number
Contract Services - Parks
0108031
811017
Public Landscape Enhancements
0108031
911008
Contract Services - Trees
0108032
811017
Maintenance and Repair Damage
0108031
851014
Maintenance Irrigation Repair
0108031
851038
Turf Renovation
0108031
851030
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. One to the Maintenance and Repair Services Agreement
17-3
ATTACHMENT A
AMENDMENT NO. ONE TO
MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH MERCHANTS LANDSCAPE SERVICES, INC. FOR
LANDSCAPE SERVICES FOR PARKS & FACILITIES
THIS AMENDMENT NO. ONE TO MAINTENANCE/REPAIR SERVICES
AGREEMENT ("Amendment No. One") is made and entered into as of this 23rd day of
September, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("City"), and MERCHANTS LANDSCAPE
SERVICES, INC., a California corporation ("Contractor"), whose address is 1190
Monterey Pass Rd, Monterey Park, CA 91754, and is made with reference to the
following:
RECITALS
A. On January 1, 2022, City and Contractor entered into a Maintenance/Repair
Services Agreement (Contract No. C-8772-1) ("Agreement") to perform annual
landscape maintenance services of City parks and facilities ("Project").
B. The parties desire to enter into this Amendment No. One to confirm all extensions
of the term of the Agreement have been utilized, to update the insurance
requirements, and to increase the total compensation to cover on -call services
through the end of the term.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. 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 December 31, 2026, unless terminated earlier as set forth herein."
2. COMPENSATION TO CONTRACTOR
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant 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 this reference.
4.1.1 Contractor's compensation for all Services performed in accordance
with this Agreement, including all reimbursable items, if any, shall not exceed One Million
Nine Hundred Fifty Thousand Dollars and 00/100 ($1,950,000.00) for the Original Term
and for each Renewal Term (each twelve (12) month period from January 1 to December
31, commencing with the Effective Date).
17-4
4.1.2 Contractor's compensation for all On -Call Services during the course
of this Agreement, including all reimbursable items, if any, shall not exceed Four Million
Three Hundred Thousand Dollars and 00/100 ($4,300,000.00),
4.1.3 Contractor's compensation for all Work performed in accordance
with this Agreement, including all Services and all On -Call Services, and all reimbursable
items and subconsultant fees, if any, shall not exceed Fourteen Million Four Hundred
Fifty Thousand Dollars and 00/100 ($14,450,000.00), without prior written authorization
from City. 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 Consultant's additional compensation
for additional On -Call Services to be performed in accordance with this Amendment No.
One, including all reimbursable items and subconsultant fees, if any, in an amount not to
exceed One Million Three Hundred Thousand Dollars and 00/100 ($1,300,000.00).
'0111111111111111 1i; 64117_1i; [a] 2
As of the Effective Date of this Amendment No. One, Exhibit H of the Agreement
shall be deleted in its entirety and replaced with Exhibit H, attached hereto and
incorporated herein by reference. Any reference to Exhibit H in the Agreement shall
hereafter refer to Exhibit H attached hereto.
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]
Merchants Landscape Services, Inc Page 2
17-5
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 5lV2 Sr
By: Qa,l
lra
n C. Harp
Attorney A
ATTEST:
Date:
Molly Perry
Interim City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
Joe Stapleton
Mayor
CONTRACTOR: MERCHANTS
LANDSCAPE
SERVICES, INC., a California corporation
Date:
M
Mark Brower
President
Date:
By:
Donna Brower
Secretary
[END OF SIGNATURES]
Attachments: Exhibit H — Insurance Requirements
Merchants Landscape Services, Inc Page 3
17-6
EXHIBIT H
INSURANCE REQUIREMENTS — MAINTENANCE/REPAIR/JANITORIAL SERVICES
Provision of Insurance. Without limiting Contractor's indemnification of City, and prior to
commencement of Work, Contractor shall obtain, provide and maintain at its own
expense during the term of this Agreement, policies of insurance of the type and
amounts described below and in a form satisfactory to City. Contractor agrees to
provide insurance in accordance with requirements set forth here. If Contractor
uses existing coverage to comply and that coverage does not meet these
requirements, Contractor agrees to' amend, supplement or endorse the existing
coverage.
Acceptable Insurers. All insurance policies shall be issued by an insurance company
currently authorized by the Insurance Commissioner to transact business of
insurance in the State of California, with an assigned policyholders' Rating of A -
(or higher) and Financial Size Category Class VI (or larger) in accordance with the
latest edition of Best's Key Rating Guide, unless otherwise approved by the City's
Risk Manager.
Coverage Requirements.
Workers' Compensation Insurance. Contractor shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury by
disease in accordance with the laws of the State of California, Section 3700
of the Labor Code.
Contractor shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its City Council,
boards and commissions, officers, agents, volunteers and employees.
General Liability Insurance. Contractor shall maintain commercial general liability
insurance and, if necessary, umbrella liability insurance, with coverage at
least as broad as provided by Insurance Services Office form CG 00 01, in
an amount not less than two million dollars ($2,000,000) per occurrence,
four million dollars ($4,000,000) general aggregate. The policy shall cover
liability arising from premises, operations, products -completed operations,
personal and advertising injury, and liability assumed under an insured
contract (including the tort liability of another assumed in a business
contract).
Automobile Liability Insurance. Contractor shall maintain automobile insurance at
least as broad as Insurance Services Office form CA 00 01 covering bodily
injury and property damage for all activities of Contractor arising out of or in
connection with Work to be performed under this Agreement, including
coverage for any owned, hired, non -owned or rented vehicles, in an amount
Merchants Landscape Services, Inc Page H-1
17- 7
not less than one million dollars ($1,000,000) combined single limit each
accident.
Umbrella or Excess Liability Insurance. Contractor shall obtain and maintain an
umbrella or excess liability insurance policy with limits of not less than one
million dollars ($1,000,000) that will provide bodily injury, personal injury
and property damage liability coverage at least as broad as the primary
coverages set forth above. Such policy or policies shall include the
following terms and conditions:
• A drop down feature requiring the policy to respond in the event that
any primary insurance limits are exhausted by paid claims;
• Pay on behalf of wording as opposed to reimbursement;
• Concurrency of effective dates with primary policies;
• Policies shall "follow form" to the underlying primary policies; and
Insureds under primary policies shall also be insureds under the
umbrella or excess policies. 11
Other Insurance Requirements. The policies are to contain, or be endorsed to contain,
the following provisions:
Waiver of Subrogation. All insurance coverage maintained or procured pursuant
to this Agreement shall be endorsed to waive subrogation against City, its
City Council, boards and commissions, officers, agents, volunteers and
employees or shall specifically allow Contractor or others providing
insurance evidence in compliance with these requirements to waive their
right of recovery prior to a loss. Contractor hereby waives its own right of
recovery against City, and shall require similar written express waivers from
each of its subcontractors.
Additional Insured Status. All liability policies including general liability, products
and completed operations, excess liability, pollution liability, and automobile
liability, if required, shall provide or be endorsed to provide that City, its City
Council, boards and commissions, officers, agents, volunteers and
employees shall be included as insureds under such policies.
Primary and Non Contributory. All liability coverage shall apply on a primary basis
and shall not require contribution from any insurance or self-insurance
maintained by City.
Notice of Cancellation. All policies shall provide City with thirty (30) calendar days
notice of cancellation (except for nonpayment for which ten (10) calendar
days notice is required) or nonrenewal of coverage for each required
coverage.
Merchants Landscape Services, Inc Page H-2
17-8
Additional Agreements Between the Parties. The parties hereby agree to the following:
Evidence of Insurance. Contractor shall provide certificates of insurance to City
as evidence of the insurance coverage required herein, along with a waiver
of subrogation endorsement for workers' compensation and other
endorsements as specified herein for each coverage. Insurance certificates
and endorsement must be approved by City's Risk Manager prior to
commencement of performance. Current certification of insurance shall be
kept on file with City at all times during the term of this Agreement. The
certificates and endorsements for each insurance policy shall be signed by
a person authorized by that insurer to bind coverage on its behalf. At least
fifteen (15) days prior to the expiration of any such policy, evidence of
insurance showing that such insurance coverage has been renewed or
extended shall be filed with the City. If such coverage is cancelled or
reduced, Contractor shall, within ten (10) days after receipt of written notice
of such cancellation or reduction of coverage, file with the City evidence of
insurance showing that the required insurance has been reinstated or has
been provided through another insurance company or companies. City
reserves the right to require complete, certified copies of all required
insurance policies, at any time.
City's Right to Revise Requirements. City reserves the right at any time during the
term of the Agreement to change the amounts and types of insurance
required by giving Contractor sixty (60) calendar days advance written
notice of such change. If such change results in substantial additional cost
to Contractor, City and Contractor may renegotiate Contractor's
compensation.
Right to Review Subcontracts. Contractor agrees that upon request, all
agreements with subcontractors or others with whom Contractor enters into
contracts with on behalf of City will be submitted to City for review. Failure
of City to request copies of such agreements will not impose any liability on
City, or its employees. Contractor shall require and verify that all
subcontractors maintain insurance meeting all the requirements stated
herein, and Contractor shall ensure that City is an additional insured on
insurance required from subcontractors. For CGL coverage,
subcontractors shall provide coverage with a format at least as broad as CG
20 38 04 13.
Enforcement of Agreement Provisions. Contractor acknowledges and agrees that
any actual or alleged failure on the part of City to inform Contractor of non-
compliance with any requirement imposes no additional obligations on City
nor does it waive any rights hereunder.
Requirements not Limiting. Requirements of specific coverage features or limits
contained in this Section are not intended as a limitation on coverage, limits
or other requirements, or a waiver of any coverage normally provided by
any insurance. Specific reference to a given coverage feature is for
purposes of clarification only as it pertains to a given issue and is not
Merchants Landscape Services, Inc Page H-3
17-9
intended by any party or insured to be all inclusive, or to the exclusion of
other coverage, or a waiver of any type. If the Contractor maintains higher
limits than the minimums shown above, the City requires and shall be
entitled to coverage for higher limits maintained by the Contractor. Any
available insurance proceeds in excess of the specified minimum limits of
insurance and coverage shall be available to the City.
Self -insured Retentions. Any self -insured retentions must be declared to and
approved by City. City reserves the right to require that self -insured
retentions be eliminated, lowered, or replaced by a deductible. Self-
insurance will not be considered to comply with these requirements unless
approved by City.
City_ Remedies for Non -Compliance. If Contractor or any subcontractor fails to
provide and maintain insurance as required herein, then City small have the
right but not the obligation, to purchase such insurance, to terminate this
Agreement, or to suspend Contractor's right to proceed until proper
evidence of insurance is provided. Any amounts paid by City shall, at City's
sole option, be deducted from amounts payable to Contractor or reimbursed
by Contractor upon demand.
Timely Notice of Claims. Contractor shall give City prompt and timely notice of
claims made or suits instituted that arise out of or result from Contractor's
performance under this Agreement, and that involve or may involve
coverage under any of the required liability policies. City assumes no
obligation or liability by such notice, but has the right (but not the duty) to
monitor the handling of any such claim or claims if they are likely to involve
City.
Contractor's Insurance. Contractor shall also procure and maintain, at its own cost
and expense, any additional kinds of insurance, which in its own judgment
may be necessary for its proper protection and prosecution of the Work.
Merchants Landscape Services, Inc Page H-4
17-10