HomeMy WebLinkAboutC30760, C30810, C30820, and C30830 Merchants Landscape Services LMA 1, 16, 17, and 18Contract Nos. C30760, C30810
C30820, and C30830
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: TERMINATE CONTRACTS WITH MERCHANTS LANDSCAPING
SERVICES, INC., FOR LANDSCAPE MAINTENANCE AREAS 1,
16, 17, AND 18, EFFECTIVE JUNE 30, 2012, AND AUTHORIZE
STAFF TO GO OUT FOR BID FOR THESE LANDSCAPE
MAINTENANCE AREAS
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
CONTRACTOR: Merchants Landscape Services, Inc.
1510 S. Lyon Street
Santa Ana, CA 92705
DATE: February 23, 2012
CONTENTS: Deficiency Summary
Letter Dated August 2, 2011
Letter Dated August 31, 2011
Letter Dated September 19, 2011
Letter Dated February 9, 2012
E-mail Response dated February 13, 2012
Recommendation
By Minute Motion:
1. Effective June 30, 2012, terminate without cause the following
Landscape Maintenance Area (LMA) contracts with Merchants
Landscaping Services, Inc. (Merchants):
a. Contract No. C30760 for LMA 1 (Project No. 901-11).
b. Contract No. C30810 for LMA 16 (Project No. 916-11).
C. Contract No. C30820 for LMA 17 (Project No. 917-11).
d. Contract No. C30830 for LMA 18 (Project No. 918-11).
2. Authorize staff to go out for bid for the maintenance of LMAs 1, 16, 17,
and 18.
Background
On June 23, 2011, the City Council awarded contracts to Merchants for LMAs 1, 16, 17,
and 18 for a two-year term; and on May 12, 2011, the contract for LMA 9 was extended
for one year and is set to expire on June 30, 2012.
Staff Report
Terminate Merchants Landscaping Contracts for LMA 1, 16, 17, and 18
February 23, 2012
Page 2 of 2
Merchants started work on the LMAs on July 1, 2011, and from the onset has had
difficulty in meeting contract standards. Additionally, when asked to perform extra
maintenance work, Merchants most often declines. Their poor performance has
resulted in the assessment of deficiency fines for all five contracts for seven consecutive
months; with the exception of LMA 1 that had no deficiency fines assessed for
December 2011. The attached Deficiency Summary demonstrates these deficiencies.
Their first month's performance was so substandard that on August 2, 2011, a 30-day
notice to terminate was sent to Merchants. Staff subsequently met with Merchants'
representatives to discuss the deficiencies, and by August 31, 2011, Merchants'
performance had improved, and staff provided notification that termination would not be
pursued. By mid -September, Merchants was struggling again to meet contract
standards and staff indicated this to Merchants in a letter dated September 19, 2011.
Since that time, Merchants has continued to perform poorly, and it is apparent that they
are not able to provide the level of service required in the contract.
Staff discussed this situation with the City Attorney and believes that the most prudent
course of action is to terminate the contracts at the end of Fiscal Year 2011-2012
without cause. It will take 90 to 120 days to prepare bid documents, bid, and award new
contracts. By leaving Merchants in place until June 30, 2011, the City will not incur
additional costs as a result of hiring a third party to complete the last four months of
Merchants term. Merchants has been notified by letter dated February 9, 2012, of this
action.
Fiscal Analysis
There is no fiscal impact to terminating these LMA contracts at the end of the current
fiscal year.
Prepared by: r / _ Depart)fe,�it
H. "penjr Knight', Landscape, Manager Mark Gr e ood, P.F
T X_�') I .,If Directo of Public Worth
Zg� CITY COUNCIL�TION
Paul Gibson, irector of Finance APPROVED DENWt D
RECEIVED OTHER
Joh 1'M` Wohlmuth
fit Manager
MEETI G DAT
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ABSENT:
ABSTAIN:
VERIFIED BY:
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73-5 10 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 9226o-2578
rm:760 346-o6xx
infoC)cicyofpalmdese rc.org
August 2, 2011
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Mark Bower, President
Merchants Landscape Services, Inc.
1510 S. Lyon Street
Santa Ana, CA 92705
RE: Landscape Maintenance Areas 1, 16, 17, and 18
Dear Mr. Bower:
On May 26, 2011, the City Council awarded to Merchants Landscape Services, Inc.,
(Merchants) the landscape maintenance contracts for Landscape Maintenance Areas 1,
16, 17, and 18 (the LMAs), and Merchants officially began work in the LMAs on July 5,
2011. In spite of the continued direction provided by the City's Landscape Services
staff, Merchants performance to date has been significantly below contract standards.
As a result of Merchants extremely poor performance, deficiencies will be assessed as
follows: LMA 1 - $3,000, LMA 16 - $ 4,300, LMA 17 - $6,300, and LMA 18 - $ 3.900.
Attached are reports from the landscape inspectors detailing the deficiencies. These
amounts will be deducted from the corresponding invoices for the month of July 2011.
An evaluation of the nature of the deficiencies indicates that Merchants has failed to
adequately execute the contract terms. Specifically, failure to comply with contract
specifications, failure to comply in a timely manner with contractually legitimate requests
made by the City, failure to provide specified reports, failure to supply adequate
equipment and labor, and failure to comply with work schedules.
Therefore, in accordance with the terms of the LMA contracts, this letter serves as
written 30-day notice of the City's intent to terminate the contracts for the
aforementioned LMAs. As of the date of this letter, Merchants has 30 days to bring their
performance into compliance with contract standards. If this does not occur, the
contracts will be terminated. Please be advised that any cost incurred by the City as a
result of contract termination will be charged to Merchants, including but not limited to
bringing the LMAs up to contract standard and the difference between Merchants bid
Mr, Mark Bower
August 2, 2011
Page 2
and the replacement contractor's bid. If necessary, the City will pursue Merchants'
Performance Bond.
If you wish to discuss this matter in greater detail or have any questions, please contact
me.
Sincerely,
r
i
H, pen r Kni t
Landscape Manager
HS K/bl
Enclosures (as noted)
cc: Mark Greenwood, P.E., Director of Public Works
C!f Y Of ?HIM DESERT
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7 3 — 5 1 o FRED WARING DRIVE
PALM DESERT, CALIFORNIA 922670-2i78
TEL: 760 346--o6i i
in£oo,ci ty4palmdesert.org
August 31, 2011
CERTIFIED MAIL
RETURNED RECEIPT REQUESTED
Mr. Mark Bower, President
Merchants Landscape Services, Inc.
1510 S. Lyon Street
Santa Ana, CA 92705
RE: Landscape Maintenance Areas 1, 16, 17, and 18
Dear Mr. Bower,
On August 2, 2011, the City of Palm Desert issued Merchants Landscape Services,
Inc., (Merchants) a written 30-day notice of the City's intent to terminate the contracts
for the aforementioned Landscape Maintenance Areas (LMAs). As a response,
Merchants met with City staff to further discuss the contract deficiencies that lead to the
30-day notice. Following the meeting, Merchants response has been positive and has
made good strides in correcting the deficiencies.
Therefore, this letter serves as a formal notice that the City will not, at this time,
terminate the LMA contracts. However, following is a general explanation of how the
fines were assessed for the remaining contract deficiencies. The fines will be deducted
from the July monthly invoices.
Please note that the adjusted fines for contract deficiencies were assessed with
consideration given to the normal learning curve that occurs during the first month of a
new contract. In addition, fines for deficient work that was brought up to contract
standards within the time frame that is established in the Frequency Schedule were not
assessed. The assessed fines are for contract services that were not completed in a
timely manner or left City facilities in an unusable condition. The deficiencies along with
the amended fines are as follows:
Mr. Mark Bower
Merchants Landscape Services, Inc.
August 31, 2011
Page 2 of 2
Deficiency
Original
Total
Mowing -
Amended
Litter/
Trash —
Amended
Power
Wash -
Amended
Tot Lot -
Amended
New Total
LMA 1
$ 3,000
$ 250.00
$ 400.00
N/A
N/A
$ 650.00
LMA 16
$ 4,300
$ 300.00
$ 800.00
$ 200.00
$ 350.00
$ 1,650.00
LMA 17
1$6,300
$ 600.00
$ 450.00
$ 650.00
$ 250.00
$ 1,950.00
LMA 18
$ 3,900
$ 300.00
$ 200.00
$ 400.00
$ 200.00
$ 1,100.00
Mowing of the turf areas was substantially deficient in the month of July 2011 and is still
out of the contract standards in August. Improper mowing practices have resulted in
poor turf appearance, inadequate dispersal or removal of turf clippings, and failure to
lower turf cutting height to the contract specification of % of an inch.
In addition, field inspections indicate that landscapes in LMA 9 are in sub -standard
condition. As a reminder, the contract for LMA 9 is a full service contract and does not
reflect the changes made in the other contracts. Therefore, the City requests that
Merchants' staff inspect the area and make the necessary corrections to bring its
condition up to contract standards.
Be advised that the City expects that the contract standards for the all the LMAs be met
in a timely manner. If not, the City will once again pursue contract termination.
Merchants' invoices for the month of July 2011 are currently being processed for
payment under a separate cover. If you have any further questions, please feel free to
contact me at skri oil c� itvof lmdesert.om or extension 454.
Sincerely,
t �
H. pe er ight
Landscape Manager
/bg
cc: Mark Greenwood, P.E., Director of Public Works
Randy Chavez, Senior Landscape Inspector
CITY Of PRIM DESERT
7 3 — 5 1 o FRED WARING DRIVE
PALM DESERT, CALIFORNIA 9226o-2578
TEL: 760 346-o6i i
infoo ciryofpalmdesert.org
September 19, 2011
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Mark Bower, President
Merchants Landscape Services, Inc.
1510 S. Lyon Street
Santa Ana, CA 92705
RE: Landscape Maintenance Areas 1, 9, 16, 17, and 18
Dear Mr. Bower:
Merchants Landscape's August invoices to the City of Palm Desert are being processed
for payment. Although Merchants made headway in meeting the terms of the existing
contracts during the month of August, there are still a number of items that are being
only partially completed or not being completed at all. Following is a brief description of
these items and the fines that are being levied.
1. LMA 1: Fine — $300
• Incomplete or no irrigation checks.
• Incomplete or no weed control.
• Work not being done according to schedule with no notification to the City of a
schedule change.
2. LMA 9: Fine — $800
• Incomplete or no weed control.
• Failure to remove suckers on trees.
• Volunteer plants not removed.
• Incomplete or no litter removal.
• Lack of safety pruning of trees.
• Failure to remove dead flower stalks.
3. LMA 16: Fine — $1,600
• Turf not mowed to contract height and appearance.
• Incomplete pick up of dog waste.
• Incomplete litter pick up.
Mr. Mark Bower
September 19, 2011
Page 2
• Lack of safety pruning of trees.
• Failure to remove suckers from trees.
• Failure to prune shrubs that are encroaching into pedestrian areas.
• Incomplete or no power washing.
• Failure to or incomplete raking of planter areas.
• Ball field turf not edged.
• Incomplete weed removal.
• Failure to removed dead flower stalks.
• Incomplete cleaning of sidewalks.
4. LMA 17: Fine — $3,000
• Turf not mowed to contract height and appearance.
• Incomplete or no edging of turf areas.
• Incomplete or no ant control.
• Incomplete or no weeding.
• Failure to remove volunteer plants.
• Failure to remove dead plants.
• Incomplete power washing.
• Incomplete or no maintenance of annual flower beds.
• Incomplete ball field maintenance.
• Incomplete litter removal.
• Work not being done according to schedule with no notification to the City of a
schedule change.
5. LMA 18: Fine — $100
• Mowing work not per schedule.
Merchants Landscaping still appears to be struggling with turf maintenance. It is still the
City's opinion that the contracts are undermanned and inadequately equipped.
During the past month the City received numerous complaints from residents and
soccer league representatives regarding the condition of the turf at the Soccer Park.
The unplayable and unsafe turf conditions that were present two days prior to the start
of league play were unacceptable. In addition, the City received numerous complaints
from school officials, sport league representatives, and residents about the unsafe turf
conditions at Magnesia Falls Park. In fact, the middle school adjacent to the park uses
the area for physical education activities and had to cancel classes because of the
unsafe turf conditions. This is also unacceptable. In order to have these deficiencies
corrected, I had to contact Merchants and require that these areas be brought to a safe
condition within a short period of time or I would be forced to have the work performed
by another company at Merchants' cost. While Merchants' staff responded immediately
and managed to get the work done so the fields are usable, the appearance of the fields
at both facilities remains unacceptable.
C I I Y 01 P0110 01SERI
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Mr. Mark Bower
September 19, 2011
Page 3
The City is very concerned about the ability of Merchants' to successfully complete the
overseeding program in the allotted time frame. At this time I am requesting that
Merchants submit an overseeding schedule along with a description of the equipment
that will be used (with photos). Please submit this documentation to me no later than
5:00 p.m. Friday, September 30, 2011.
Also in question, is Merchants ability to change out the annual flowers on El Paseo. This
is a labor intensive task that needs to be completed in a timely manner without
negatively impacting regular contract work. I am requesting a schedule, including crew
size, for this process. This schedule is due along with the aforementioned overseeding
documentation.
As I have previously mentioned, Merchants has made noticeable progress in meeting
contract standards. However, the contracts are now well into their third month and there
are still very noticeable and unacceptable non-compliance issues. Please be advised
that if these issues are not brought to contract standard by October 3, 2011, the City
shall exercised its options to terminate contracts.
If you have any questions, please contact me.
Sincerely,
I
H. 4periper Knight
Lan sca a Manager
:6*116A
cc: Mark Greenwood, P.E., Director of Public Works
Randy Chavez, Senior Landscape Inspector
CITY Of PRIM DESERT
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7 3 — 5 1 o FRED WARING DRIVE
PALM DESERT, CALIFORNIA 9 2 2 60-2 5 7 8
TEL:760 346—o6ii
info(d)cityofpalmdesert.org
February 9, 2012
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. Mark Bower, President
Merchants Landscape Services, Inc.
1510 S. Lyon Street
Santa Ana, CA 92705
RE: Landscape Maintenance Areas 1, 9, 16, 17 and 18
Dear Mr. Bower:
On July 1, 2011, Merchants Landscape Services, Inc., began providing landscape
maintenance services on the City's LMAs 1, 9, 16, 17, and 18. From the onset of these
contracts, Merchants struggled to meet contract standards, and continues to struggle
after seven months of service. Enclosed is a chart showing the level of deficiencies and
fines for the seven -month period July 2011 through January 2012. The continual
monthly assessment of fines for incomplete or non -performed work in all contract areas
(with one minor exception) indicates that Merchants either does not have the means or
desire to meet contract standards.
Therefore, staff is requesting that the City Council, at its meeting on February 23, 2012,
exercise their contractual right to terminate the contracts for LMAs 1, 16, 17, and 18
effective June 30, 2012. The LMA 9 contract ends on June 30, 2012, and will not be
renewed. The time between February 23 and June 30 will allow the City to re -bid these
contracts and acquire a new service provider without the need to bring in a third party
vendor.
This termination action is without cause. If Merchants maintains the current contracts
per specifications through June 30, 2012, the City will take no action against Merchants'
*,
ypYRIRIFD DM Rf(Y(IID PRVI0.
Mr. Mark Bower
February 9, 2012
Page 2
You are welcome to contact me if you have any questions or concerns.
ASinc�ly,
H. en er ht
LandscaY' e Manager
HSK/bl
Enclosure (as noted)
cc: John M. Wohlmuth, City Manager
Mark Greenwood, P.E., Director of Public Works
David Erwin, City Attorney
Randy Chavez, Senior Landscape Inspector
IIIY 0f P H I M 0 [ S [ R I
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Longman, Beth
Subject: FW:
From: Mark Brower lmailto:mark@merchantslandscape.com]
Sent: Monday, February 13, 2012 1:36 PM
To: Knight, Spencer
Cc: 'Michael Kartchner'
Subject:
Hi Spencer,
I was disappointed to receive your letter today, but I understand your position. We have invested all the assets and labor
within our budget to support these contracts, however it has become apparent it is not enough. I greatly appreciate
your request to end our contracts on the first anniversary without cause. I can personally guarantee you Mike will
continue supporting the contract with the current assets and manpower through June 30tn
If for any reason you become concerned that this is not the case, please contact me immediately.
Thanks for your help,
Mark Brower
President
Merchants Landscape Services Inc.
(800) 645-4881, Fax (714) 972-3185
1