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Home My WebLink About2015-10-13 - AGENDA REPORTS - LMD CONTR RENEWALS (2)0 Agenda Item: 7 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: October 13, 2015 SUBJECT: LANDSCAPE MAINTENANCE CONTRACT RENEWALS CONTRACTS 12-00396-A, 12-00322-B9 12-00323-B, and 11-00387-C DEPARTMENT: Administrative Services PRESENTER: Dennis Luppens RECOMMENDED ACTION City Council: 1. Approve second renewal option for landscape services under contract 12-00396-A to Stay Green, Inc. for services encompassing Landscape Maintenance District (LMD) Zones T-23 (Mountain View), T-29 (American Beauty), and 17 (Bouquet/Railroad) in the amount of $215,658; include a Consumer Price Index (CPI) increase of .1%equaling $216; and authorize a contingency amount of $80,000 for a total annual amount not to exceed $295,874. 2. Approve the second renewal option for landscape services under contract 12-00322-B to Stay Green, Inc. for services encompassing Landscape Maintenance District (LMD) Zones T-2 (Old Orchard), T-3 (Valencia Hills), T-4 (Valencia Meadows), T-5 (Valencia Glen), T-6 (Valencia South Valley), and T-7 (Valencia Central and North Valley) in the amount of $222,364; include a Consumer Price Index (CPI) increase of .1 %, equaling $222; and authorize a contingency amount of $66,709 for a total annual amount not to exceed $289,295. 3. Approve the second renewal option for landscape services under contract 12-00323-B to Stay Green, Inc. for services encompassing Landscape Maintenance District Zone T-17 (Rainbow Glen) in the amount of $10,195; include a Consumer Price Index request of .1 % increase of $10; and authorize a contingency amount of $2,500 for a total annual amount not to exceed $12,705. 4. Approve contract 11-003 87-C to American Heritage Landscape for an additional six months to April 30, 2016, in a total amount not to exceed $182,000 for landscape FWN 7 Im" - ), i I * � p Page 1 Packet Pg. 83 D maintenance services for LMD Zones T -23A (Mountain View Condos) and T -23B (Seco Villas). 5. 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. BACKGROUND In 2012, the City Council awarded three contracts for landscape maintenance services. Each contract was competitively bid and awarded by action of the City Council to Stay Green, Inc. (SGI). The term for each of these contracts was for two (2) base years, plus three (3) one-year renewal options. As these contracts are nearing the completion of their first renewal option year, staff is requesting City Council approval to execute the second one-year renewal option. These three contracts provide landscape maintenance services for the following LMD zones: Contract No. 12-00396-A for Zones T-23 (Mountain View Slopes), T-29 (American Beauty), and 17 (Bouquet/Railroad) in the amount of $215,658; Contract No. 12-00322-B for Zones T-2 (Old Orchard), T-3 (Valencia Hills), T-4 (Valencia Meadows), T-5 (Valencia Glen), T-6 (Valencia South Valley), and T-7 (Valencia Central and North Valley) in the amount of $222,364; and Contract No. 12-00323-B for Zone T-17 (Rainbow Glen) in the amount of $10,195. SGI continues to perform in a manner which meets the City's standards, as well as the established terms and performance specifications of their contracts. A review of actual expenditures over the past two years supports maintaining the recommended annual contingency amounts at their current levels: $80,000 for Contract No. 12-00396-A, $66,709 for Contract No. 12-00322-B, and $2,500 for Contract No. 12-00323-B. Based on recent bid results for other LMD maintenance contracts, the pricing associated with the second renewal of this contract remains competitive within this service sector. Therefore, staff recommends the City Council exercise the second renewal option for the above referenced contracts, inclusive of CPI, in the following amounts: Contract No. 12-00396-A not to exceed an annual amount of $295,874; Contract No. 12-00322-B not to exceed an annual amount of $289,295; and Contract No. 12-00323-B not to exceed an annual amount of $12,705. Similarly, in 2011, the City Council awarded a contract for landscape maintenance services to American Heritage for LMD Zones T -23A (Mountain View Condos) and T -23B (Seco Villas) in the amount of $267,030. During the most recent renewal, the total amount of this contract was reduced to $180,354 to stay within the constraints of staff s long-term financial forecast. On September 2, 2015, the City received six bids from potential vendors to perform work associated with Bid No. LMD-15-16-03. An analysis of the bids determined all six proposals exceeded the engineer's estimate and the operational budget previously approved by City Council during the Fiscal Year 2015-16 Annual Budget. As a result, staff recommends extending the contract with American Heritage for six months at the current rate. Page 2 Packet Pg. 84 D This action will allow staff to maintain operational expenses within the existing budget and re- bid for landscape maintenance services. The process for re -bidding this contract will also include LMD Zone T-23, which is contiguous to Zones T -23A and T -23B. By consolidating all three of the LMD zones under one contract, staff anticipates realizing more advantageous pricing through economies of scale. ALTERNATIVE ACTIONS 1. Direct staff to re -bid the contracts. 2. Other action as determined by the City Council FISCAL IMPACT There is no impact to the General Fund with this action. Funding to support these contracts has been appropriated by the City Council in the Fiscal Year 2015-16 Budget within the accounts listed below. Zone T-23 - 12512-5161.010 and 12512-5141.001 Zone T-29 - 12515-5161.010 and 12515-5141.001 Zone 17 - 12535-5161.010 and 12535-5141.001 Zone T-2 - 12502-5161.010 and 12502-5141.001 Zone T-3 - 2503-5161.010 and 12503-5141.001 Zone T-4 - 12504-5161.010 and 12504-5141.001 Zone T-5 - 12505-5161.010 and 12505-5141.001 Zone T-6 - 12506-5161.010 and 12506-5141.001 Zone T-7 - 12507-5161.010 and 12507-5141.001 Zone T-17 - 12511-5161.010 and 12511-5141.001 Page 3 Packet Pg. 85