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HomeMy WebLinkAbout2012-08-28 - AGENDA REPORTS - LMD ZONES MAINT T8 T17 (2)Agenda Item: 13 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Kevin Tonoian DATE: August 28, 2012 SUBJECT: AWARD CONTRACT FOR BID NUMBER LMD 11-12-44 FOR LANDSCAPE MAINTENANCE SERVICES IN LMD ZONES T8 AND T17 DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council 1. Award a two-year maintenance service contract to Marina Landscape hie. to provide contractual landscape maintenance for Landscape Maintenance Districts (LMD) Zones T8 in the annual amount of $180,192, and $99,000 for unforeseen repairs and maintenance that are not part of scheduled services for a two-year contract in an amount not to exceed $558,384. 2. Award a two-year maintenance service contract to Stay Green Inc. to provide contractual landscape maintenance for Landscape Maintenance Districts (LMD) Zones T17 in the annual amount of $10,140, and $5,000 for unforeseen repairs and maintenance that are not part of scheduled services for a two-year contract in an amount not to exceed $30,280. 3. Authorize the City Manager or designee to execute all contracts and associated documents, 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 and operates 40 zones within the Landscape Maintenance Districts (LMD). LMD 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. The landscape contracts for the aforementioned zones are concluding their final option year and therefore were competitively re -bid in anticipation of their scheduled expiration date of September 30, 2012. Purchasing staff advertised LMD Bid 11-12-44 for the maintenance of LMD Zones T8 and T17 on two occasions, once during June and July. LMD Zone T8 consists of the landscaped common areas within the Valencia Summit community including the Valencia Summit Park. LMD Zone T17 consists of landscaped slopes that are part of the Rainbow Glen community. Bid notifications were also provided to the Santa Clarita Valley Chamber of Commerce, Valley Industrial Association, and 209 known vendors on file with the Purchasing Division. All bid documents were also made available on the City's website. As a result, eight sealed bids in response to LMD 11-12-44 were received and opened by Purchasing staff on July 31, 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. The low bidder for LMD Zone T8 is Marina Landscape Inc. Although they are not a local company, their bid was more than 10% lower than the next lowest local bidder. A local company, Stay Green Inc., is the low bidder on the contract for LMD Zone T17. Based on actual expenditure history during previous years, staff can forecast certain reoccuring maintenance activities and expenditures which are not a part of the routine monthly maintenance for these LMD zones. In consideration of these cost centers, an additional $99,000 is recommended to be added to the bid amount for the LMD Zone T8 contract. Also, an additional $5,000 is recommended to be added to the bid amount for the LMD Zone T17 contract. The amounts are not guaranteed compensation under the terms of a proposed contract but provide the City the ability to use the successful contractor to address unanticipated landscape activities which may arise but are not a part of routine monthly maintenance services. These activities include vandalism and accidents, irrigation and/or drainage repairs, and plant replacement due to damage, inclement weather, or end of plant life cycle. A thorough evaluation of the bids determined the proposals submitted by Manna Landscape Inc. and Stay Green Inc. to be the lowest and responsive bids. Special Districts staff conducted a due -diligence review of Marina's and Stay Green'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 2 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: Zone T8 - 12508-5161.010, 12508-5141.001 Zone T17 - 12511-5161.010,12511-5141.001 ATTACHMENTS Attachment A Attachment A Landscape Maintenance Service Contracts City Council Meeting August 28, 2012 LMD Bid 11-12-44 (LMD Zone T8) Landscape Engineers Estimate - $350,000 annually COMPANY LOCATION Marina Landscape Inc. Anaheim, CA Venco Western Oxnard, CA American Heritage Landscape Canoga Park, CA Stay Green Inc. Santa Clarita, CA Oak Springs Nursery Santa Clarita, CA Oakridge Landscape North Hills, CA Clean Cut Landscape, Inc Clovis, CA Parkwood Maintenance Van Nuys, CA LMD 11-12-44 (LMD Zone T17) Landscape Engineers Estimate - $15,300 annually BID AMOUNT $180,192 $226,877 $233,472 $234,000 $244,896 $259,269 $278,444 $313,272 COMPANY LOCATION BID AMOUNT Stay Green Inc. Santa Clarita, CA $10,140 American Heritage Landscape Canoga Park, CA $12,288 Venco Western Oxnard, CA $12,600 Oakridge Landscape North Hills, CA $12,898 Oak Springs Nursery Santa Clarita, CA $13,200 Parkwood Maintenance Van Nuys, CA $14,568 Marina Landscape Inc. Anaheim, CA $14,832 Clean Cut Landscape, Inc Clovis, CA $18,947 —I/—