HomeMy WebLinkAbout2012-10-23 - AGENDA REPORTS - LMD CONTR (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
October 23, 2012
FOR
Kevin Tonoian
AWARD CONTRACTS FOR BID NUMBER LMD 12-13-01 TO
PROVIDE LANDSCAPE MAINTENANCE SERVICES IN LMD
ZONES T-23, T-29, T-51, AND 17
Administrative Services
RECOMMENDED ACTION
City Council:
Award a two-year maintenance service contract to Stay Green Inc., to provide contractual
landscape maintenance for Landscape Maintenance Districts (LMD) Zones T-23, T-29, and
17 in the annual amount of $214,500 and $80,000 for unforeseen repairs and maintenance
that are not part of scheduled services for a two-year contract in an amount not to exceed
$589,000.
2. Award a two-year maintenance service contract to Oakridge Landscape Inc., to provide
contractual landscape maintenance for Landscape Maintenance Districts (LMD) Zone T-51 in
the annual amount of $84,900, and $40,000 for unforeseen repairs and maintenance that are
not part of scheduled services for a two-year contract in an amount not to exceed $249,800.
3. Authorize the City Manager or designee to execute all contracts and associated documents, or
modify the awards in the event issues of impossibility of performance arise, and execute up to
three (3) annual renewal options not to exceed the annual bid amounts plus Consumer Price
Index (CPI) adjustments, 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.
BACKGROUND
The City administers 40 zones within the Landscape Maintenance District (LMD). The LMD
operation is comprised of approximately 1,000 landscaped acres, including medians, parkways,
three parks, over 20 miles of paseos, bridges, and 38,000 trees. Landscape maintenance services
for the City's LMD operation are provided through contracts with private companies. During the
coming six months, the City will assume responsibility for eleven (11) additional local LMD
zones as a result of the completed Copperstone, Fair Oaks, Jakes Way, and Vista Canyon
annexations, and the pending North Copperbill annexation.
Purchasing staff advertised LMD Bid 12-13-01 for the maintenance of LMD Zones T-23
(Mountain View), T-29 (American Beauty), T-51 (Valencia High), and 17 (Railroad Avenue) on
two occasions during August and September 2012. Bid notifications were also provided to the
Santa Clarita Valley Chamber of Commerce, Valley Industrial Association, and 157 known
vendors on file with the Purchasing Division. All bid documents were also made available on
the City's website.
As a result, seven sealed bids in response to LMD 12-13-01 were received and opened by
Purchasing staff on September 19, 2012. The results of the bids are shown in Attachment "A.
Santa Clarita Municipal Code (S.C.M.C.) § 3.12.205 Support of Santa Clarita Businesses states
that the lowest bid or quote submitted by a Santa Clarita business that is within ten percent (10%)
of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed
to be the lowest bidder if the bidder agrees to reduce its bid to match the bid or quote of the
lowest bidder. In this instance, the lowest and most responsible bidder for each LMD zone (Stay
Green Inc., LMD Zones T-23, T-29, and 17; and Oakridge Landscape Inc., LMD Zone T-51) are
local companies.
Based on experience and expenditure history, staff can forecast certain re -occurring maintenance
activities and expenditures which are not a part of the routine monthly maintenance for each of
these LMD zones. These non-scheduled expenditures include repair activities due to damage or
vandalism, irrigation, and/or drainage repairs, and plant replacement due to damage, inclement
weather, or end of plant life cycle.
In consideration of these non -routine expenditures, staff is requesting the Council increase the
potential total annual value of the Stay Green Inc. contract by $80,000 and the Oakridge
Landscape Inc. contract by $40,000 beyond their base bid amounts. It is important to note that
neither of these amounts are guaranteed compensation under the terms of a proposed contract.
By authorizing contract expenditure authority beyond the base bid amounts, the City Council is
taking action to ensure that LMD revenues generated by property owners are utilized in the most
cost-effective manner. Specifically, as a result of not including non-scheduled work as part of
the base bid, the City retains the discretion to authorize and compensate the contractor for
additional work once it has been reviewed by field inspectors and approved by the LMD
Administrator. Furthermore, inclusion of non-scheduled activities as a component of the base
_z_
contract provides contractors with greater latitude to manage maintenance operations in a manner
which could potentially increase their profit margins.
A thorough evaluation of the bids determined the proposals submitted by Stay Green Inc. and
Oakridge Landscape Inc. to be the lowest responsive bids. Special Districts' staff conducted a
due -diligence review of Stay Green Inc.'s and Oakridge Landscape Inc.'s professional references
and determined their performance record meets the City's high standards. Hourly costs for
unscheduled services are capped and not guaranteed compensation through this recommended
contract award.
The presence of numerous and qualified vendors within the landscape industry, coupled with
existing economic conditions, has created an environment where aggressively priced bids have
become the norm during the past few years. As a result, the City continues to achieve significant
cost reductions for landscape maintenance services through the competitive bid process, securing
lower annual maintenance costs and enabling the City to minimize future maintenance cost
increases.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
There is no impact to the General Fund. Sufficient LMD funds were appropriated by the City
Council as part of the Fiscal Year 2012-2013 budget in the following accounts:
T-23 - 12512-5161.010,12512-5141.001
T-29 - 12515-5161.010,12515-5141.001
T-51 - 12553-5161.010,12553-5141.001
Zone 17 - 12535-5161.010, 12535-5141.001
ATTACHMENTS
Attachment A - Bid Results
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