22124.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
January 9, 2023
TO: City Council
FROM: Department of Public Works
SUBJECT: APPROVAL OF SECOND AMENDMENT TO THE CONTRACT
BETWEEN THE CITY OF SIMI VALLEY AND VENCO WESTER N, INC., FOR LANDSCAPE DISTRICT NO. 1 MAINTENANCE SERVICES,
CONTRACT B, SPECIFICATION NO. SV 18-18R
STAFF RECOMMENDATION
It is recommended that the City Council approve the Second Amendment to the contract with Venco Western, Inc. for the Simi Valley Landscape District No. 1 Maintenance Services, Contract B, Specification No. SV 18- 18R, extending the term through December 31, 2023, and increasing the amount of the agreement for the extended term period, in the amount of $634,081.84 (not-to-exceed amount).
BACKGROUND AND OVERVIEW
On January 13, 2020, the City Council awarded a contract (see Attachment A,
Valley Landscape District No. 1, Contract B, Specification, No. SV 18-18R. The City’s contract with Venco Western, I nc. expired on December 31, 2022. T he contract had provided the City with an option to extend the contract for t hree (3) additional one -year terms. The City now desires to extend the term with Venco Western Inc., for one (1) additional year.
Staff recently solicited bids for l andscape maintenance of Waterworks District Facilities, including 18 water tanks and 8 pump stations. However, the City did not receive competent bids on two bid solicitation attempts . The City Manager approved rejection of the bids and negotiation of an amended contract with Venco Western ensued. Venco Western, Inc. provided a quote on the services, included in this contract amendment in Schedule III. Consequently, the City is also asking to increase the not -to-exceed amount of the contract for the extended term by $634,081.84.
AGENDA ITEM NO.
Consent (2)
22124.SR.JD
FINDINGS AND ALTERNATIVES
The services to be performed under this Second Amendment to the Contract include routine maintenance, as identified in Schedule I ($493,796.84), and extra work that would be completed under Schedule II ( up to $ 25,000). Schedule II represents potential additional work for site upgrades to drought-tolerant planting/irrigation, equipment repairs, repair work due to traffic collisions or wind damage, or other such work not included in Schedule I. The amount provided in Schedule II reflects estimated costs based on previous expenditures, and actual expenditures may vary but will stay within the budgetary limits. Schedule III ($115,284) includes the landscape maintenance of Waterworks District facilities including 18 Tank Sites and 8 Pump Stations.
The cost breakdown for Contract B is as follows:
Schedule I Schedule II Schedule III Total Cost
FY 2022-23
Jan-June $246,898.42 $12,500 $57,642 $317,040.42 FY 2023-24
Jul-Dec $246,898.42 $12,500 $57,642 $317,040.42
Release of
Contract $1.00
Total $493,796.84 $25,000 $115,284 $634,081.84
Staff is continuing to modify the landscape areas the City is responsible for maintaining in order to reduce the cost of maintenance. As part of this contract, staff and the contractor will continue those modifications.
The following alternatives are available for the City Council’s consideration:
1. A pprove the attached S econd Amendment to the contract with Venco Western, Inc. increasing the not-to-exceed amount of the contract by $634,081.84, and extending the term through December 31, 2023;
2. Do not award the contract amendment, and provide staff with further direction.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to approve the Second Amendment to the contract between the City of Simi Valley and Venco Western, Inc . retroactively effective to January 1, 2023 , and extending the term of the contract for an additional one (1) year to December 31, 2023, for an amount not to exceed $634,081.84.
2 22124.SR.JD
SUMMARY
The City’s Landscape Maintenance Contract with Venco Western, Inc., (Contract B, Specification SV 18-18R) expired on December 31, 2022. Staff recommends that the City Council approve the attached second amendment retroactively effective to January 1, 2023, and extending the contract for an additional one (1) year to December 31, 2023, for an amount not-to-exceed $634,081.84.
For Ronald K. Fuchiwaki
Public Works Director
Prepared by: Lisett Bautista, Budget and Administration Manager
INDEX
Page
Second Amendment to the Contract ........................4 Attachment A – First Contract Amendment ..............7 Attachment B – Original Contract .......................... 14
3 A22124.CON.JD
SECOND AMENDMENT TO CONTRACT BETWEEN THE CITY
OF SIMI VALLEY AND VENCO WESTERN , INC. FOR SIMI
VALLEY LANDSCAPE DISTRICT NO. 1, MAINTENANCE
SERVICES, CONTRACT “B”, SPECIFICATION NO. SV 18-18R
THIS SECOND AMENDMENT TO CONTRACT is made and entered into in the City of Simi Valley on this 9
th day of January 2023, retroactively effective to January 1, 2023 (“Effective Date”) by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as C ity, and VENCO WESTERN, INC., hereinafter referred to as Contractor, each a “Party”, and collectively “Parties”.
I. Recitals
A. The Parties entered into a written contract ( "Contract") executed on January 13, 2020, for the performance of the Sim i Valley Landscape District No. 1 Maintenance Services, Contract “B”, Specification No. SV 18-18R effective January 13, 2020, through December 31, 2021. Thereafter, the Parties entered into a First Amendment to the CONTRACT (“First Amendment”), executed by the Parties on May 3, 2021. Both the CONTRACT and its First Amendment are incorporated herein by reference.
B. The Contract expired on December 31, 2022, and the Parties now desire to extend the term of the CONTRACT for one (1) year retroactively effective beginning January 1, 2023 to December 31, 2023, and increase the not to exceed amount of the Contract by $634,081.84 as set forth below.
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows:
II. Amendment
1. Section 2.
Term. The first sentence is deleted in its entirety and is amended to read as follows:
“The term of this Contract shall be extended from the Effective Date through December 31, 2023. The Contract may be extended for one (1) additional one (1) year term upon mutual written consent of the City and Contractor.”
2. Section 5
. Obligations of the City. Subsection B. the second sentence is amended to read as follows:
“ In no event shall the total amount paid under this Second Amendment exceed $493,796.84 for schedule I, $25,000 for schedule II, and $115,284 for schedule III, for a total not to exceed amount of $ 634,081.84, unless otherwise agr eed to by the parties in writing. The Contractor shall keep a tally of the cost for the work ordered by City. The Contractor shall not accept work orders from the C ity if the cost for the work will exc eed the amount indicated above unless otherwise agreed to by the parties in writing.”
4 A22124.CON.JD
3. Mailing Address. The mailing address of each party to this contract amendment is as follows:
CITY Ronald K. Fuchiwaki, Director
Department of Public Works
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Michael Sandoval
Maintenance Superintendent
(805) 583-6437CONTRACTOR Venco Western, Inc.
2400 Eastman Avenue
Oxnard, CA 93030
Staff Contact: Linda Burr, President
(805) 981-2400
4. Except as herein amended, all other terms and conditions of the Contract shall remain in full force and effect.
[SIGNATURES ON NEXT PAGE]
5 A22124.CON.JD
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be the day and year first above written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: V ENCO WESTERN, INC.
By:
David L. Caceres, City Attorney
Print Name:
Approved as to Content: Title:
By:
Brian Paul Gabler, City Manager
Print Name:
Title:
Johanna Medrano
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
6 ATTACHMENT A
7 8
9 10
11 12
13 CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
VENCO WESTERN, INC., FOR SIMI VALLEY LANDSCAPE
DISTRICT NO. 1 MAINTENANCE SERVICES CONTRACT B,
SPECIFICATION NO. SV 18-18R
THIS CONTRACT is made and entered into in the City of Simi Valley on this 13th day of January 2020, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and VENCO WESTERN, INC., a California corporation, hereinafter referred to as CONTRACTOR.
RECITALS
WHEREAS, on October 4, 2019, CITY invited bids for the Simi Valley Landscape District No. 1 Maintenance Services Contract B per Specification No. SV 18-18R; and
WHEREAS, pursuant to said invitation, CONTRACTOR submitted a Proposal which was accepted by CITY for said project.
AGREEMENT
NOW, THEREFORE , in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
1. Recitals. The foregoing recitals are true and correct and are a part of this CONTRACT.
2. Term . The term of this CONTRACT shall be from the date this CONTRACT is made and entered, as first written above, until the 31st day of December 2021. The CONTRACT may be extended for a maximum of three (3) additional one-year terms upon mutual written consent of the City Council and CONTRACTOR. The CITY shall notify CONTRACTOR of its intent to exercise said option by advising CONTRACTOR in writing on or before ninety (90) days prior to CONTRACT expiration date. CONTRACTOR shall notify the CITY of its intent to exercise said option by advising the CITY in writing on or before ninety (90) days prior to CONTRACT expiration date. Unit prices may be adjusted in accordance with the percentage change in the Consumer Price Index (CPI) for the Los Angeles, Long Beach, Anaheim, CA areas for the previous 12-month period (January to January).
3. Incorporation By Reference . Public Contract Code Section 22300, Specification No. SV 18-18R, consisting of 282 pages and all documents incorporated by reference therein, and the CONTRACTOR'S Bid consisting of the CONTRACTOR'S Proposal Statement, Proposed Schedule of Work and Prices, and Bidder's Statement of Subcontractors and Material Fabricators, are hereby incorporated by reference and made a part of this CONTRACT.
PW\Adrnin\PURCH\Lscape & Tree Maint\Lscape Maint\Contract B\SV 18-18R\Award Docs\Venco Western Contract (SV 18-18R).CS
ATTACHMENT B
14 4. Precedence of CONTRACT Documents. If there is a conflict between or among CONTRACT documents , the document highest in precedence shall control. The precedence shall be:
First:
Second:
This Document consisting of 8 pages excluding paragraph 3 Permits from other agencies as may be required by law
Special Provisions Third:
Fourth: Bid Terms and Conditions
Detailed Plans Fifth :
Sixth: Standard Plans
Seventh: Standard Specifications Modifications
Eighth: "Standard Specifications for Public Works Construction" (SSPWC) Reference Specifications Ninth:
Tenth: CONTRACTOR'S Proposal
Change orders , supplemental agreements, and approved revisions to plans and specifications become a part of item First.
5. Obligations of the CITY .
A. The CITY shall be obligated to pay CONTRACTOR based
upon the actual City-authorized quantities in place and the unit and/or lump sum prices bid by CONTRACTOR , including but not limited to all labor , material and equipment, rather than the CONTRACT bid price .
B. CITY shall make regular progress payments to the
CONTRACTOR within 30 days after mutual concurrence with the unit quantities and/or lump sum items of work performed , subject to applicable retention requirements . In no event shall the total amount paid exceed the CONTRACT bid price of $987,594.68 for schedule I work and $50,000 for Schedule II work for a not exceed CONTRACT amount of $1,037,594.68 unless otherwise agreed to by the parties in writ ing.
C. Upon receipt of an invoice for work performed to CITY'S satisfaction, CITY shall make progress payments within thirty (30) days of receipt of invoice . If the work is not performed satisfactorily or the invoice is defect ive, CITY shall notify CONTRACTOR, in writing, of the reasons within seven (7) days of receipt of invoice . The intent of this Section is to comply with Public Contract Code Sect ion 20104 .50.
6. Obligations of the CONTRACTOR .
A. CONTRACTOR shall perform as required b y this
CONTRACT. CONTRACTOR agrees to perform the services more specifically set forth in the "Scope of Work" attached hereto and incorporated herein as Exhibit "A" and as further described in the incorporated documents . CONTRACTOR also warrants on behalf of itself and all subcontractors engaged for the performance of this CONTRACT that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employ ed in the performance of the work hereunder.
PW\Admin \PURCH\Lscape & Tree Maint\Lscape Maint\Cont ract B\SV 18-18R\Award Docs\Venco Western Contract (SV 18-18R).CS
2 15
B. CONTRACTOR shall obey all Federal, State, local , and special district laws, ordinances , and regulations.
C. CONTRACTOR shall abide by the CITY 'S Business Tax
Ordinance , of which proof of payment must be obtained prior to performance of this CONTRACT. CONTRACTOR shall maintain a valid Business Tax Certificate for the term of the CONTRACT.
D. Prevailing wage: In addition to any applicable federal requirements , the CONTRACTOR shall comply with all applicable California laws related to prevailing wage , including but not limited to California Labor Code 1720 et seq. and all other California prevailing wage laws and regulations, and all requirements , regulations or decisions of the California Department of Industrial Relations related thereto . CONTRACTOR further stipu lates to follow all requirements and pay any penalties due , if any, under Section 1813 of the California Labor Code. The CONTRACTOR shall post the prevailing rate per diem wages at each job site. Further CONTRACTOR shall indemnify , defend, and hold CITY harmless from any claim that prevailing wages should have been paid pursuant to this CONTRACT, including federal prevailing wage requirements under the Davis-Bacon Act, if applicable and shall be liable for the payment of same and any penalties thereon . CONTRACTOR is responsible for paying all legally required prevailing wages, and in the case of a difference between state and Federal law, the highest legally required rate.
CONTRACTOR and all subcontractors must be registered
and remain register ed with DIR (Department of Industrial Relations) through the term of the CONTRACT in accordance with the California Labor Code ("Labor Code "), in particular Labor Code Section 1771.1, and any successor or replacement provision thereto , unless a small project exemption applies ($25,000 for public works or $15 ,000 for maintenance) . CONTRACTOR further agrees that it will follow all requirements and obligations set forth in Labor Code Section 1776.
7. Audit.
A. At any time during normal business hours and as often as the CITY may deem necessary, CONTRACTOR shall make available to CITY for inspection its records pertaining to this CONTRACT. CONTRACTOR shall permit CITY to audit , examine and/or reproduce such records . CONTRACTOR will retain such financial records, time sheets, work progress reports , invoices , bills and project records for at least (2) years after termination or final payment under this CONTRACT. This paragraph shall survive for two (2) years after termination of this CONTRACT.
B. CITY shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to CITY as a condition precedent to any payment to CONTRACTOR .
8. Hold Harmless and Indemnification . CONTRACTOR shall defend, indemnify, and hold harmless CITY, its agents , officials , officers , representatives, and employees, from and against all claims, lawsuits, liabilities or damages of whatever nature arising out of or in connection with, or relating in any PW\Ad min\PURCH\Lscape & Tree Maint\Lscape Maint\Contract B\SV 18-1 BR\Award Docs\Venco Western Contract (SV 18-18R).CS
3 16
manner to any act or om1ss1on of CONTRACTOR , its agents, employees, and subcontractors , and employees thereof, pursuant to the performance or non-performance of this CONTRACT. The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the CITY and do whatever is necessary to protect the CITY, its agents, officials, officers, representatives, and employees as to any such claims , lawsuits , liabilities , expenses, or damages arising out of this CONTRACT. The CITY shall be included as an Additional Insured in the automobile/liability insurance policies and endorsements of the CONTRACTOR. The CONTRACTOR must select an attorney acceptable to the CITY who will defend such proceeding and the CITY will control any litigation thereof. Such approval by the CITY will not be unreasonably withheld. This paragraph shall survive the termination of the CONTRACT.
9. Amendments. Any amendment, modification , or variation from the terms of this CONTRACT shall be in writing and shall be effective only upon mutual written approval by the Director of Public Works and CONTRACTOR.
10. Anti-Discrimination. In the performance of the terms of this CONTRACT, CONTRACTOR shall not engage in, nor permit subcontractors to engage in, discrimination in employment of persons because of the age , race, color, religious creed, sex, sexual orientation, national origin, ancestry, physical disability, mental disability, medical condition , or marital status of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735.
11. Termination. If, during the term of this CONTRACT , CITY determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein , CITY may notify CONTRACTOR in writing of such defect or failure to perform. The notice must give to the CONTRACTOR a ten (10) day period of time thereafter in which to perform said work or cure the deficiency . If CONTRACTOR has not performed the work or cured said deficiency within the ten (10) days specified in the notice , such failure shall constitute a breach of this CONTRACT, and CITY may terminate this CONTRACT immediately by written notice to CONTRACTOR to said effect. Thereafter, neither party shall have any further duties , obligations, responsibilities, or rights under this CONTRACT except , however, any and all obligations of CONTRACTOR'S surety shall remain in full force and effect and shall not be extinguished , reduced, or in any manner waived by the termination hereof. In said event , CONTRACTOR shall be entitled to the reasonable value of its services performed from the beginning of the period in which the breach occurs up to the day it received CITY'S Notice of Termination, minus any damages, including liquidated damages if so provided herein , occasioned by such breach . CITY reserves the right to delay any such payment until completion or confirmed abandonment of the project , as may be determined in the CITY'S sole discretion , so as to permit a full and complete accounting of costs. In no event , however , shall CONTRACTOR be entitled to receive in excess of the compensation quoted in its bid.
12. Insurance . CONTRACTOR shall, prior to commencing
performance hereunder , submit proof of all insurance coverage as required by the Specification or other document incorporated in and made a part of this CONTRACT.
PW\Admin\PURCH\Lscape & Tree Maint\Lscape Maint\Contract B\SV 18-18R\Awar d Docs\Ve nco Weste rn Contract (SV 18-18R).CS
4 17
13. Complete CONTRACT. This CONTRACT shall constitute the complete CONTRACT between the parties hereto . No verbal agreement, understanding , or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such verbal agreement , understanding, or representation be binding upon the parties hereto.
14. Independent Contractor. It is expressly understood between the parties to this CONTRACT that no employee/employer relationship is intended ; CONTRACTOR is an independent contractor.
15. Time of Performance. Time is of the essence in this CONTRACT.
16. Liquidated Damages. Should the CONTRACTOR fail to complete the project , or any part thereof , in the time agreed upon in the CONTRACT or within such extra time as may have been allowed for delays or extensions granted as provided in the CONTRACT , the CONTRACTOR shall reimburse the CITY for the additional expense and damage for each calendar day that the CONTRACT remains uncompleted after the CONTRACT completion date. It is agreed that the amount of such additional expense and damage incurred by reason of failure to complete the CONTRACT is the per diem rate $500 per calendar day. Such amounts are hereby agreed upon as liquidated damages for the loss to the CITY resulting from the failure of the CONTRACTOR to complete the project within the allotted time and to the value of the operation of the works dependent thereon .
It is expressly understood and agreed that this amount is a reasonab le amount and is established in lieu of damages which are incapable of calculation at the inception hereof ; and this amount is not to be considered in the nature of a penalty. The CITY shall have the right to deduct such damages from any amount due, or that may become due to the CONTRACTOR , or the amount of such damages shall be due and collectible from the CONTRACTOR or the CONTRACTOR'S Surety.
Progress payments made after the scheduled completion date shall not constitute a waiver of liquidated damages .
17. Conflict of Interest. Neither CONTRACTOR nor any employees , agents, or subcontractors of CONTRACTOR who will be assigned to this project , to the best of CONTRACTOR'S knowledge , own any property or interest in properties , business relationships , or sources of income which may be affected by the performance of this CONTRACT. Should one party hereto learn of any such interest , income source , or business relationship , such fact shall immediately be brought to the attention of the other party hereto. If the parties thereupon cannot mutually agree upon a means to eliminate the conflict , CITY may terminate the CONTRACT immediately for non-performance pursuant to Section 11 herein.
18. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto ; provided, however , that no party hereto shall assign any of the benefits and burdens hereunder , whether voluntarily or by operation of law, without the prior written consent of the other party, and any such assignment without said consent shall be void.
PW\Admin\PURCH\Lscape & Tree Maint\Lscape Maint\Contract B\SV 18-18R\Awa rd Docs\Ve nco Western Contract (SV 18-18R).CS
5 18
19. Authority to Execute Contract. Both CITY and CONTRACTOR do covenant that each individual executing this CONTRACT on behalf of each party is a person duly authorized and empowered to execute contracts for such party.
20. Jurisdiction and Venue . Jurisdict ion is in an appropriate court in the State of California and venue lies in Ventura County, and the parties do not consent to arbitration. In the event of any dispute, each party shall bear its own fees and costs (including attorneys ' fees). This CONTRACT shall be governed by California law, without regard to conflict of law principles.
21. Non-Appropriation of Funds . Payments due and payable to CONTRACTOR for current goods and/or services are within the curre nt budget and within an available , unexhausted and unencumbered appropriation of CITY. In the event CITY has not appropriated sufficient funds for payment of goods and/or services beyond the current fiscal year, this CONTRACT shall cover only those costs incurred up to the conclusion of the current fiscal year.
22. Notices . All written notices required by, or related to this CONTRACT shall be sent by Certified Mail, Return Receipt Requested , postage prepaid and addressed as listed below. Neither party to this CONTRACT shall refuse to accept such mail; the parties to this CONTRACT shall promptly inform the other party of any change of address. All notices required by this CONTRACT are effective on the day of receipt, unless otherwise indicated herein . The mailing address of each party to this CONTRACT is as follows:
CITY Ronald K. Fuchiwaki, Director
Department of Public Works
2929 T apo Canyon Road
Simi Valley, CA 93063
Staff Contact: Emilio Blanco, Maintenance Superintendent (805) 583-6437
PW\Admin\PURCH\Lscape & Tree Maint\Lscape Maint\Contract B\SV 18-1 SR\Award Docs\Venco Western Contract (SV 18-18R).CS
6 19
CONTRACTOR Venco Western, Inc.
2400 Eastman Avenue
Oxnard , CA 93030
Staff Contact: Linda Burr, President
(805) 981-2400
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written .
Approved as to Form :
Lo'::::1::;:;:;:ney
Daniel . Willhite
Deputy Administrative Services Director
(Support Services) ......
City of Simi Valley, A Municipal C rporation
By:
, Mayor of the City
alifornia
::"m i
Print Name: \AV\d<J :I) .JS.., 'fv
Title:~ f~\ ~
By:
Print Name: _____ _____ _ _
Title: ----------- - ---
PW\Admin\PURCH\Lscape & Tree Maint\Lscape Maint\Contrac t 8\SV 18-18R\Awa rd Docs\Ve nco Western Contract (SV 18-18R).CS
7 20