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Home My WebLink About2012-11-13 - AGENDA REPORTS - LMD T33 T65 T65A CONTR (2)Agenda Item: 10 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Kevin Tonoian DATE: November 13, 2012 SUBJECT: AWARD CONTRACT FOR BID NUMBER LMD 12-13-03 FOR LANDSCAPE MAINTENANCE SERVICES IN LMD ZONES T33 (CANYON PARK), T65 (FAIR OAKS RANCH PHASE I), AND T65A (FAIR OAKS RANCH PHASE II & III) DEPARTMENT: 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 T33, T65, and T65A in the annual amount of $137,081, and $60,000 for non -routine repairs and maintenance not inclusive of the base scope of services, for a two-year contract in an amount not to exceed $394,162. 2. 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 During the coming six months, the City will assume responsibility for 11 additional local Landscape Maintenance District zones as a result of the completed Copperstone, Fair Oaks, Jakes Way, and Vista Canyon annexations, and the pending North Copperhill annexation. Inclusive of these pending and completed annexations, the City's LMD operation will encompass 52 financially independent local zones. Collectively, these 52 zones encompass approximately 1,500 landscaped acres inclusive of medians and parkways, six park sites, over 20 miles of paseos, numerous bridges, and 44,000 trees. Landscape maintenance services for the City's entire LMD operation is provided through contracts with private companies. The City advertised LMD Bid 12-13-03 for the maintenance of LMD Zones T-33 (Canyon Park), T-65 (Fair Oaks Ranch Phase I), and T -65A (Fair Oaks Ranch Phase II & III) on two occasions during September and October 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 of this bid process, six sealed bids were received and opened by Purchasing staff on October 25, 2012. The results of the bids are shown in Attachment "A." At the time of bid opening, the apparent lowest bid was submitted by American Heritage Landscape. However, due to pricing error within their proposal, American Heritage Landscape has requested that the City of Santa Clarita withdraw their bid. With the withdrawal of American Heritage Landscape's bid, the bid submitted by Venco Western, Inc. represents the lowest responsive bid. However, Venco Western's operation is based out of Oxnard, CA, and they are therefore not a local company. The proposal submitted by Stay Green Inc., a local company, was within 10% of Venco Western's bid, and they have agreed to match their proposal. As the City Council is aware, 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 locally -based bidder agrees to reduce its bid to match the bid or quote of the lowest bidder. Therefore, staff is recommending award of bid number 12-13-03 to Stay Green Inc. In addition to the recommended annual contract amount of $137,081 to fund the base scope of re -occurring landscape maintenance services, staff is requesting the Council increase the potential total annual value of the Stay Green contract by $60,000 to fund non -routine repairs and maintenance. Based on operational experience and expenditure history, staff budgets funds to address non-scheduled expenditures in each LMD local zone. These non-scheduled expenditures include repairs due to damage or vandalism, irrigation and/or drainage repairs, and landscape replacement due to damage, inclement weather, or plants reaching the end of their life cycle. It is important to note the $60,000 staff is requesting in additional contract expenditure authority is not part of the base scope of services and not guaranteed compensation under the terms of a proposed contract. By 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 independent inspectors not affiliated with Stay Green and approved by the LMD 2— Administrator. 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. Furthermore, this approach limits the contractor's ability to manage maintenance operations in a manner which could potentially increase their profit margins during any given fiscal year. A thorough evaluation of the bids determined the proposals submitted by Stay Green Inc. to be the lowest responsive bid. Special Districts staff conducted a due -diligence review of Stay Green 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 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 are available in Fund 357. ATTACHMENTS Attachment A - Bid Results 3 Attachment A Landscape Maintenance Service Contracts City Council Meeting November 13, 2012 LMD Bid 12-13-03 (LMD Zones T33, T65, and T65A) Landscape Engineers Estimate - $180,000 annually COMPANY LOCATION BID AMOUNT American Heritage Landscape Venco Western, Inc. Stay Green Inc. Marina Landscape, Inc. Parkwood Maintenance Oakridge Landscape Canoga Park, CA Oxnard, CA Santa Clarita, CA Anaheim, CA Van Nuys, CA North Hills, CA $ 49,308 (Withdrawn) S 137,081 $ 142,416 $ 154,584 $ 165,528 $ 167,136 -y-