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HomeMy WebLinkAbout2016-10-25 - AGENDA REPORTS - LMD CONTR 14-00398 14-00316 ZONE T8 (2)Agenda Item: 10 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: fill DATE: October 25, 2016 SUBJECT: RENEWAL OF LANDSCAPE MAINTENANCE DISTRICT CONTRACTS 14-00398 (BACKFLOW DEVICE TESTING) AND 14- 00316 (ZONE T8 LANDSCAPE SERVICES) DEPARTMENT: Neighborhood Services PRESENTER: Darin Seegmiller RECOMMENDED ACTION City Council: 1. Approve first renewal option for Contract 14-00398 to Backflow Prevention Device Tester for backflow device testing in an annual amount not to exceed $116,978. 2. Approve first renewal option for Contract 14-00316 to Stay Green, Inc. for landscape maintenance services for Zone T8 (Valencia Summit) in an annual amount not to exceed $390,398. 3. Authorize the City Manager or designee to execute all contracts and associated documents, contingent upon the appropriation of funds by the City Council in the annual budget for such Fiscal Year, and execute all documents subject to City Attorney approval. 4. Authorize the City Manager or designee to execute up to two additional one-year renewal options for each contract, not to exceed the annual bid amount plus contingency and CPI adjustments. BACKGROUND Contract 14-00398 The City of Santa Clarita (City) maintains approximately 500 cross -contamination prevention systems throughout the Landscape Maintenance Districts (LMD) and City owned facilities. By law, the Santa Clarita Water Division, Valencia Water Company, Newhall County Water District, and Los Angeles County Department of Public Health require annual testing of all Page 1 Packet Pg. 50 backflow devices operated by the organization. In 2014, the Council awarded a maintenance service contract to Backflow Prevention Device Tester to provide contractual maintenance for all City -owned backflow prevention devices in the amount of $100,000. The term of the contract has an initial period of two years, with an option for three one-year renewals. The terms of the renewal allow the vendor to request an increase based on the Consumer Price Index (CPI) of 1.72%. The CPI is reflective of the rate at the time of original contract award. The proposed contract amount includes a CPI increase equaling $1,720 and authorization of a contingency amount of $15,258 for a total annual amount not to exceed $116,978. Contract 14-00316 In 2014, landscape maintenance services were competitively bid and awarded to Stay Green, Inc. by action of the City Council to provide landscape maintenance services to LMD Zone T8 (Valencia Summit). The term of the base contract was for two years, plus three one-year renewal options. The terms of the renewal also allow the vendor to request an increase based on the Consumer Price Index of 2.03%. The CPI is reflective of the rate at the time of original contract award. Staff is requesting City Council approval to execute the first one-year renewal option. Stay Green, Inc. continues to perform in a manner that meets the City's performance standards, as well as the established terms and specifications of their contracts. A review of actual expenditures over the past two years supports maintaining the contingency amount at its current level of $99,000. Based on recent bid results for other LMD maintenance contracts, the pricing associated with the renewal of this contract remains competitive within this service sector. Therefore, staff recommends the City Council exercise the first renewal option for this contract for an amount of $285,600; include a Consumer Price Index request of 2.03%, equaling $5,798; and authorize a contingency amount of $99,000 for a total annual amount not to exceed $390,398. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT No impact to the General Fund. Adequate funds have been previously appropriated by the City Council during adoption of the Fiscal Year 2016-17 budget. Please note the difference in Consumer Price Index among the two agreements is reflective of CPI at the time of the original award of each contract. Page 2 Packet Pg. 51