Report Prepared by: Jeff Frederick, Public Works Manager - Tax Services
Title
SUBJECT: Approval of Agreement for Landscape Maintenance Services with Green Horizon, Inc., for Maintenance of Various City Parks in an Annual Amount of $343,521.36 Beginning July 1, 2026, Through June 30, 2027, with the Option to Extend for Two (2) Additional One (Year) Terms Through June 30, 2029
REPORT IN BRIEF
Considers approving a Services Agreement with Green Horizon, Inc., for maintenance services in an annual amount of $343,521.36 at various City Parks.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Services Agreement with Green Horizon, Inc., in the annual amount of $343,521.36, to provide landscape maintenance services at various City Parks through June 30, 2027, with the option to extend through June 30, 2029; and,
B. Authorizing the City Manager to sign the necessary documents and approval of amendments or change orders up to 10% of the total contract cost for added landscape locations and future CPI increases.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion.
4. Continue to a future meeting (date and time to be specified in the motion); or,
5. Deny.
AUTHORITY
Professional Contractual services with an estimated value greater than $39,000, are made by written contract in accordance with Merced Municipal Code Section 3.04.120.
CITY COUNCIL PRIORITIES
Addresses City Administrative Priority for enhancing public spaces.
DISCUSSION
The City and Green Horizon, Inc., entered into an agreement dated May 6, 2024, and a First Amendment to that agreement dated July 1, 2025, to provide landscape maintenance services through June 30, 2026. The original agreement included the option of renewing the agreement through June 30, 2029. The First Amendment dated July 1, 2025, was to add maintenance of a City Park upon completion of the park (CP-42).
City staff initially prepared a Second Amendment to exercise the first optional one-year renewal period. However, the original agreement expired before the renewal option was exercised and the agreement could no longer be amended or renewed. Accordingly, staff is recommending approval of a new agreement that incorporates the substantive terms and conditions of the original agreement, except as specifically modified.
The proposed agreement terms and conditions are consistent with the original competitive solicitation, so no additional benefits or obligations are contemplated. The proposed agreement compensation schedule for the initial year is 2.9% Consumer Price Index ("CPI") adjustment for Fiscal Year 2026-2027, which was contemplated in the original agreement and results in an increase of $9,681.36 over last year’s payment. The base period for calculating the CPI adjustment is December 2025.
Increases in compensation for the additional two-year extension period (Fiscal Years 2027/2028 and 2028/2029) are determined by the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index-All Urban Consumers West (CPI). At no time will the compensation amount fall below the previous year’s contract amount. At no time will the CPI increase exceed 3%.
IMPACT ON CITY RESOURCES
Funding is provided in the Fiscal Year 2026-2027 Adopted Budget.
ATTACHMENTS
1. Proposed Services Agreement
2. First Amendment
3. Original Agreement