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16-1101_E. STEWART & ASSOCIATES, INC._D7_Agenda ReportCity of San Juan Capistrano Agenda Report 11/1/2016 07 TO : Honorable Mayor and Members of the City Council FROM : ~Siegel, City Manager SUBMITTED BY: Steve May, Public Works and Utilities Director~ PREPARED BY : DATE : SUBJECT: Tom Toman, Assistant Public Works Directo « November 1, 2016 Consideration of a Resolution wa1v1ng the Formal Request for Proposals (RFP) Process, and Approval of an Amendment to the existing Maintenance Services Agreement for Weed, Rubbish, Winter Preparation, and Thistle Abatement (E. Stewart and Associates, Inc.) RECOMMENDATION : By motion, 1. Adopt a Resolution waiving the formal request for proposal (RFP) process for weed, rubbish, and thistle abatement, and winter preparation services; and, 2. Approve and authorize the City Manager to execute an amendment to the existing maintenance services agreement with E. Stewart and Associates, Inc., for weed, rubbish, and thistle abatement, and winter preparation services at the current unit pricing not to exceed $240,000 annually for an additional two year term, with two, one-year optional extensions. EXECUTIVE SUMMARY: The current agreement for weed, rubbish, and thistle abatement, and winter preparation with E. Stewart and Associates, Inc. (ESA) expires on December 31, 2016. ESA has offered to enter into a contract amendment maintaining the same rates for work City Council Agenda Report November 1, 2016 Page 2 of 3 performed over the past nine years. The offer letter from ESA is included as Attachment 1. Staff recommends approval of an amendment to the existing maintenance services agreement with ESA extending the term through December 31, 2018, with two, one- year optional extensions at the City's discretion, without competitive bidding as explained below. In order to approve this exception to the competitive bid process, the City Council would need to adopt the attached resolution (Attachment 2) and extend the agreement via an amendment (Attachment 3). DISCUSSION/ANALYSIS: The City's agreement with ESA provides for winter preparation activities and for weed and refuse abatement under provisions of the Municipal Code. A list of operations and work summary under the agreement is attached for reference as Attachment 4. ESA has provided exceptional service to the City for 18 years and has offered to enter into a contract amendment under the same terms and fees as the previous nine years. Previous solicitations conducted in 2002 and 2007 for weed, rubbish, and thistle abatement services resulted in only one proposer, ESA, being deemed the only qualified proposer willing to perform the full scope of work required by the City at a reasonable price. A formal RFP process would likely result in higher fees, and it is recommended that a contract amendment be approved without a formal RFP process under the exceptions provided for in the Municipal Code. Section 3-4.306(e)(3) of the Municipal Code provides an exception to the formal RFP process where the process is deemed not to be the most cost-effective approach. Additional benefits to the City and the community by extending this agreement with ESA include the following: • Familiarity with the city (both public and private properties) • Historic and institutional knowledge of the areas that require work • Flexibility to City needs and priorities • Minimal staff oversight and supervision • Established relationships with other municipal and regulatory agencies FISCAL IMPACT: There is sufficient funding in the current operating budget to cover the proposed contract costs. ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA) the recommended action is exempt from CEQA per Section 15061 (b )(3), the general rule that the CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Extension of a maintenance services agreement with ESA, to provide City Council Agenda Report November 1, 2016 Page 3 of 3 weed, rubbish, winter preparation and thistle abatement would not be an activity with potential to cause significant effect on the environment and therefore exempt from CEQA. CITY COUNCIL REVIEW: • On March 17, 1998, the City Council approved a personal services agreement with Stewart and Associates to provide weed and thistle abatement/control on City property and open space and private property, street right of way areas, and water facility sites. • On October 15, 2002, the City Council approved a personal services agreement with Stewart and Associates to provide weed, rubbish, and thistle abatement. • On January 16, 2007, the City Council approved the personal services agreement with E. Stewart and Associates, Inc. (Incorporated in 2004) to provide weed, rubbish, and thistle abatement. • On March 15, 2016, the City Council adopted a resolution waiving the formal request for proposal (RFP) process and authorized the City Manager to execute a maintenance services agreement with E. Stewart and Associates, Inc. for weed, rubbish, winter preparation, and thistly abatement, for an amount not to exceed $240,000. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission review. NOTIFICATION: E. Stewart and Associates, Inc. (ESA) ATTACHMENT(S): Attachment 1: E. Stewart Offer Letter Attachment 2: Resolution Attachment 3: Amendment No. 1 to Maintenance Services Agreement, ESA Attachment 4: Operations List and Work Summary October 6, 2016 E. Stewart and Associates, Inc. 1000 Calle Ncgocio San Clemente, CA 92673 (949) 498·9250 FAJ((949)498-4961 Ms. Jill Thomas, Senior Management Analvst City of San Juan Capistrano 32400 Paseo Adelanto San Juan capistrano, CA 92675 RE: Weed, Rubbish, and Thistle Abatement Contract Extension Dear Ms. Thomas, I would like to thank you and your staff for the confidence and support extended to my company over the past 30 years we have performed weed abatement for the City of San Juan capistrano. My employees and I have found It a privilege to work in the beautiful community of San Juan Capistrano . Because we would love to continue doing so, I would like to respectfully request an extension of our weed, rubbish, and thistle abatement contract at the current unit pricing for an addftlonaiS years. We appreciate the opportunity to provide the services that enable the City and It's residents to be In compliance with fire safety and prevention programs, and continue to strive to provide the standard of work the Oty has come to expect. We thank you for your consideration. Sincerely, ~~~.::6 Ed Stewart Attachment 1 1 of 1 RESOLUTION NO. 16-11-01-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO WAIVE THE FORMAL REQUEST FOR PROPOSAL/REQUEST FOR QUALIFICATION BID (RFP/RFQ) PROCESS AS A NON COST-EFFECTIVE APPROACH, AND AUTHORIZING STAFF TO PROCEED WITH AN AMENDMENT TO THE EXISTING MAINTENANCE SERVICES AGREEMENT WITH E. STEWART AND ASSOCIATES, INC., FOR WEED, RUBBISH, WINTER PREPARATION, AND THISTLE ABATEMENT WHEREAS, the City entered into an Maintenance Services Agreement with E. Stewart and Associates, Inc., for weed, rubbish and thistle abatement services on March 15, 2016 ("Agreement"); and WHEREAS, the Agreement is presently set to expire on December 31, 2016; and WHEREAS, the City wishes to extend the term of the Agreement to December 31, 2018, with two one-year optional extensions at the City's discretion; and WHEREAS, pursuant to Section 6-7.01 of the San Juan Capistrano Municipal Code, abatement of weeds and thistle, and the removal of garbage, refuse, and dirt throughout the City must be performed annually to assist in reducing risks associated with fire, health, and safety. Additionally, Assembly Bill 337, High Fire Severity Zone Abatement, requires the City to abate weeds in designated High Fire Hazard Severity Zones, and as directed by the Orange County Fire Authority ("Authority"); and WHEREAS, weed abatement and winter preparation is imperative to ensure compliance with the City's municipal code and state law; and WHEREAS, previous solicitations conducted in 2002 and 2007 for weed, rubbish and thistle abatement services resulted in only one proposer (E. Stewart and Associates, Inc.) being deemed the sole qualified proposer willing to perform the full scope of work required by the City at a reasonable price; and WHEREAS, Section 3-4.304 of the San Juan Capistrano Municipal Code provides that maintenance services contracts over $25,000 are subject to a formal RFP/RFQ bid process; and WHEREAS, Section 3-4.306(e)(3) of the San Juan Capistrano Municipal Code provides an exception to the formal RFP/RFQ process where the process is deemed not to be the most cost-effective approach; and WHEREAS, undergoing a formal RFP/RFQ process for weed, rubbish and thistle abatement services would not be the most cost-effective approach given the lack of Attachment 2 -Page 1 of 2 responses from qualified firms other than E. Stewart and Associates, Inc., to the City's previous solicitations; and WHEREAS, E. Stewart and Associates, Inc., is familiar with the City's needs, has indicated that it will hold existing pricing; has historical knowledge of the nuances of the service areas; has demonstrated its flexibility to meet the City's service requirements; requires minimal staff oversight; has historically provided excellent service to the City; has an understanding of the requirements of the Authority and is able to perform the services necessary to comply with directives from the Authority and as otherwise required by AB 337; and can immediately begin performing services without any substantive ramp up time. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS: 1. That the foregoing recitals are true and correct and incorporated herein by this reference. 2. That undergoing a formal RFP/RFQ process at this time for weed, rubbish and thistle abatement services would not be the most cost-effective approach. 3. That Amendment No. 1 to the Agreement extending the term of the Agreement is hereby approved. 4. That the City Manager or his designee is hereby authorized to execute Amendment No. 1 to the Agreement. PASSED, APPROVED, and ADOPTED is 1st Day of November, 2016 . Pam Patterson, Esq., Mayor Maria Morris, City Clerk Attachment 2 -Page 2 of 2 AMENDMENT NO.! TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND E. STEW ART AND ASSOCIATES, INC. 1. Parties and Date. This Amendment No. 1 to the Maintenance Services Agreement is made and entered into as of this 181 day of November, 2016, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 ("City") and E. Stewart and Associates, Inc., a California corporation, with its principal place of business at 1000 Calle Negocio, San Clemente, California ("Contractor"). City and Contractor are sometimes individually referred to as "Party" and collectively as "Parties." 2. Recitals. 2.1 Contractor. The City and Contractor have entered into an agreement entitled "MAINTENANCE SERVICES AGREEMENT' dated March I 5, 2016 ("Agreement") for the purpose of retaining the services of Contractor to provide professional weed and rubbish abatement and winter preparation services. 2.2 Amendment Purpose. The City and Contractor desire to amend the Agreement to extend the Maintenance Services Agreement for Weed, Rubbish, Winter Preparation, and Thistle Abatement at the current unit pricing for an additional two year term, with two one-year optional extensions at the City's discretion. 2.3 Amendment Authority. This Amendment No. l is authorized pursuant to Section 3. I .2 of the Agreement. 3. Terms. 3.1 Amendment. Section 3.1.2 of the Agreement is hereby amended in its entirety to read as follows: 3 .1.2 Term. The term of this Agreement shall be from March 15, 2016, to December 31, 2018, with two one-year optional Page 1 of3 6114702100\29314735 I Attachment 3 1 of 3 extensions at the City's discretion, unless earlier tenninated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. In addition to the foregoing optional extensions exercisable at the City's discretion, the Parties may, by mutual, written consent, further extend the term of this Agreement if necessary to complete the Services. 3.2 ontinuing Effect of Agreement. Except as amended by this Amendment No.1, all other provisions of the Agreement remain in full force and effect and shall govern the actions ofthe parties under this Amendment No.1. From and after the date of this Amendment No.1, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement as amended by this Amendment No.1. 3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undettaken pursuant to this Amendment No.1. 3.4 Severability. If any portion of this Amendment No.1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Page 2 of3 61147 02100\29314735.1 Attachment 3 2 of 3 SIGNATURE PAGE FOR AMENDMENT NO.! TO MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND E. STEWART AND ASSOCIATES, INC. CITY OF SAN JUAN CAPISTRANO Approved By: Ben Siegel City Manager Date Attested By. Maria Morris, City Clerk 61147 .. 02100\2931473S.l E. STEW ART AND ASSOCIATES, INC. ~.0~ Signature 5hw1W .w 8*=wl'fe r Name Title Date 1 ' Page 3 of3 E. Stewart and Associates, Inc. 1000 Calle Negoclo San Clemente, CA 92673-6205 Attachment 3 3 of 3 OPERATIONS WORK SUMMARY A!!aofWork QygotJtv Tl£1!! of Work Annual City Proaram 114 acres Disking 18 acres Mowing 27 acres Handwork Reservoir Sites 42 acres Performed Monthlv City Right-of-Way 20 acres Performed MonthlY AB 337 High Fire Hazard Severity Zone 230acres Dis king 20 acres Handwork Notifications, Inspection, Posting, Problem Resolution, Abatement of Non-Compliant Properties Program Administration 825+ Parcels I (Februarv throuah Auaust) Winter Preparation 34 Locations V-Ditches 25 Locations Drainage Facility Areas Small Ditches Sandbaa Placement Swales leading to drains and trail crossinas Sandbaa Placement Thistle Abatement Open space as requ ired If directed bv CitY Council and budaet supported Dlsking is perfonned in agricultural areas only. Fugitive dust prohibits disking on residential lots. Dlsklng Is the most cost effective for weed abatement, however, the use of this method is limited by water quality standards and restrictions in many circumstances. Mowing is perfonned on flat or slightly sloped areas with no obstructions, rocks, etc., and is the preferred method of weed abatement. Mowing costs are higher than disking, however, water quality standards and restrictions require this type of work in some areas. Handwork is perfonned on parcels with obstructions (fences, rocks, benns) and slopes in excess of 2:1. Handwork (labor) Is the least cost effective method of weed abatement, however, is required for full implementation of the program. Attachment 4 1 of 1