TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ted Semaan, Interim Public Works Director
Christopher O’Brien, Maintenance Supervisor
Nicky Petroff, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 9 to the Landscaping Services Agreement with Merchants Landscape Services Inc., for Landscaping Services at a Cost Not-to-Exceed $901,470 (Budgeted) (Interim Public Works Director Semaan).
ADOPT RESOLUTION NO. 25-0087
Body
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RECOMMENDATION:
Staff recommends that the City Council Adopt Resolution No. 25-0087 approving Amendment No. 9 to the Agreement with Merchants Landscape Services, Inc. (Merchants) for an additional year of landscaping services at a total annual cost not-to-exceed $901,470.
FISCAL IMPLICATIONS:
Amendment No. 9 results in a total increase of $21,825 over a one-year period starting on September 1, 2025. Sufficient funds for the landscaping services under this agreement are available within the Department’s adopted budget for FY 2025-2026.
BACKGROUND:
The City has historically contracted for landscape services, including shrub and ground cover maintenance, maintenance of parks and public plazas, and irrigation repair, maintenance, and monitoring. On September 1, 2018, following a competitive Request for Proposal process, the City entered into an agreement with Merchants for landscaping services. The agreement has a term of five years, with two options to renew for two years each. As of August 31, 2023, the City has exercised two, one-year extensions, and the agreement will expire on August 31, 2025, if not further extended by mutual agreement.
While the current agreement allows for two-year extensions, staff recommends proceeding with one-year terms at this time. Although current pricing remains favorable compared to market conditions, shorter extensions provide the City with greater flexibility to reassess service needs, adjust for rising costs, and strategically evaluate future contracting options.
In 2024, the City approved Amendment No. 7 to the agreement with Merchants, increasing the annual cost of base services from $655,744 to $727,745. An additional $20,000 was also included for costs previously agreed upon by the City to ensure that non-organic pesticides are not used under the terms of the agreement, bringing the total annual cost to $747,745. Additionally, the amendment clarified terms related to the procurement of wood chips and infield mix by establishing annual volume caps of 1,200 cubic yards and 30 tons, respectively. Materials exceeding these quantities are to be provided by the City, with installation by Merchants at no additional cost.
In 2025, Amendment No. 8 was executed under the City Manager’s authority, increasing the contingency for unforeseen services by $74,900 from $57,000 to $131,900.
DISCUSSION:
The current annual cost for landscaping services provided by Merchants is $747,745. Effective September 1, 2025, Merchants has requested a 3% increase, which is allowed under the Agreement and would raise the annual cost to $769,569.60. This reflects an increase of approximately $21,825 for the upcoming contract year.
To ensure continuity of services, staff recommends that the City Council adopt Resolution No. 25-0087, approving Amendment No. 9 to the Agreement with Merchants for an additional year of landscaping services at a total annual amount not-to-exceed $901,470. This total includes monthly services of $64,130.80 (equating to $769,569.60 annually), plus a contingency of $131,900 to cover unforeseen services or emergencies.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the amendment as to form.
ATTACHMENTS:
1. Resolution No. 25-0087
2. Amendment No. 9 - Merchants Landscape Services, Inc.
3. Agreement and Amendment No. 1 through 8 - Merchants Landscape Services, Inc.