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City Council Regular
Meeting Date: 02/11/2020  

1. Approve Amendment No. 1 to Agreement No. A2017-256 with Azteca Landscape, Inc. increasing the total not-to-exceed contract amount, including contingencies, to $6,611,480.81.

2. Approve Amendment No. 2 to Agreement No. A2017-257 with Excel Landscape, Inc. increasing the total not-to-exceed contract amount, including contingencies and a correction to Amendment No. 1, to $6,649,511.68.
On November 28, 2017, the City Council approved five year agreements for landscape maintenance services with Azteca Landscape, Inc. (Azteca) and Excel Landscape, Inc. (Excel). These firms were chosen through the public bidding process and both were the lowest responsible bidders. Azteca maintains the landscaping in the North Service District comprising the area from Eucalyptus Drive to the northern border of the City. Excel maintains the South Service District from Eucalyptus Drive to the southern border of the City.

The agreements commit the contractors to provide regular landscape maintenance for a fixed monthly cost. Additionally, these agreements have a unit pricing component for work outside the monthly duties. This unit pricing provides pre-bid pricing amount for repairs of irrigation and also planting projects. The agreements provide a ten percent contingency amount for this extra work. This affords an efficient method of caring for the landscape assets within their maintenance areas. Also, the work performed by both of these contractors are covered through a replacement warranty.

The City of Chino Hills is recognized as a leader in water conservation and has, over many years, consistently looked for ways to reduce landscape water consumption and provide financial savings. The contingency portion of these contracts allows staff to address irrigation issues to reduce water waste and provide landscape renovations that increase the use of drought tolerant plantings.

In the current fiscal year, staff is working on pilot programs testing new low water use material. The initial plan is to replace old plant material on the slopes surrounding Alterra Park on Soquel Canyon Parkway and Slate Drive. This is a native grass offering the appearance of turf, using minimal irrigation. With the success of the pilot program, staff can plan future landscape improvements that substantially reduce water while protecting City-maintained slopes from erosion.
The City has also been awarded rebates for drought tolerant plantings on eight sites. After completion of these landscape improvements, the City will receive a reimbursement in an amount up to $291,275 from Metropolitan Water District and Inland Empire Utility Agency. The turf replacements will decrease water usage and beautify older turf areas. The current contractors in these areas are responsible to maintain and warranty the plantings. Consequently, staff is requesting increases to the agreements to accomplish this important work.
The proposed landscape improvements is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations § 15301 (h) as a Class 1 Categorical Exemption (Existing Facilities). The improvements involve maintenance of existing landscape and is not anticipated to have any significant impacts with regard to traffic, noise, air quality, or water quality.
On November 28, 2017, Council authorized Agreement A2017-256 with Azteca in the amount of $5,867,255.28 plus contingency of $586,725.53 for a total of $6,453,980.81. Amendment No. 1 adds an additional contingency of $157,500 bringing the new contract amount to 6,611,480.81.

On November 28, 2017, Council also authorized Agreement A2017-257 with Excel Landscape in the amount of $5,886,685.56 plus a contingency of $588,668.56 for a total of $6,475,354.12. Amendment No. 1 decreased the authority of the Agreement to $5,783,465.16, adjusting for service level changes, for a total agreement authority of $6,361,811.68. In review of Amendment No. 1, staff discovered an error of $36,000 in the calculation of the final year of the agreement. Amendment No. 2 corrects that error and adds an additional contingency of $248,100 for a total increase of $284,100, bringing the new contract amount to $6,649,511.68.

The approval of these amendments is not a commitment, rather an authority to spend on extra landscaping services associated with the maintenance of the infrastructure. Sufficient funding exists in various Public Works Landscape Operations and Capital Outlay budgets. Expenditures will be charged to the appropriate budget when work is performed.
This agenda item has been reviewed by the Finance Director.
Amendment No. 1 - Azteca Landscape, Inc.
Amendment No. 2 - Excel Landscape, Inc.

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