HomeMy WebLinkAbout11 AWARD OF CONTRACTS FOR ANNUAL LANDSCAPE MAINTENANCE SERVICES FOR GENERAL FUND/WATER FACILITIES & TUSTIN LANDSCAPE & LIGHTING DISTRICT—_ • 1 1
AGENDA REPORT Agenda ItemReviewed.
City Manager
Finance Director
MEETING DATE: JULY 7, 2015
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: AWARD OF CONTRACTS FOR ANNUAL LANDSCAPE MAINTENANCE
SERVICES FOR THE GENERAL FUND/WATER FACILITIES AND THE TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
SUMMARY
Staff is requesting the City Council award landscape maintenance services contracts for the
General Fund City/Water Facilities and Tustin Landscape and Lighting District, covering an initial
term, beginning August 1, 2015 through June 30, 2016 with an option for four additional one-year
extensions at the City's sole discretion.
RECOMMENDATION
It is recommended that the City Council award landscape maintenance services contracts to
Merchants Landscape Services, Inc. for the General Fund City/Water Facilities in the amount of
$618,552 annually and Mariposa Landscapes, Inc. for the Tustin Landscape and Lighting District
(TLLD) in the amount of $546,204 annually, authorizing the Mayor and the City Clerk to execute
the contract documents on behalf of the City.
FISCAL IMPACT
Sufficient funds for this fiscal year have been budgeted and appropriated within the Public Works
Operating budgets. Each subsequent year is contingent upon City Council approval of the annual
budget appropriation and satisfactory performance of services provided. Each contract contains a
30 -day Notice of Cancellation provision. General Fund revenues cover all expenditures except for
those itemized for water services and those specifically covered through the TLLD. Landscape
maintenance services for the City's water facilities are funded by the Water Enterprise Fund and
services provided in the TLLD are covered through annual assessment levied through the District
and a District reserve fund.
Assessments collected through the TLLD only partially fund the services for this area. The balance
is paid out of a reserve fund that holds unused construction funds that can only be used for
maintenance and construction needs in the TLLD. This contribution varies from year to year and
the projected fund balance as of June 30, 2015 is $3,400,000. The increased cost associated with
the proposed landscape contract brings the total estimated expenditure from the reserve fund to
$307,000 for FY 2015-16. Evaluation of the Assessment District will be necessary no later than FY
2023-2024 to ensure the annual revenue collected will pay for the services provided.
CORRELATION TO THE STRATEGIC PLAN
The recommendation relates to the City's Strategic Plan by implementing Goal B (3), by way of
maintenance and improvement of public facilities.
Award of Landscape Maintenance Contracts
July 7, 2015
Page 2
BACKGROUND
The General Fund area contract covers all citywide landscape, planting and irrigation within the
public right-of-way, including public facilities; Metrolink Station, City Hall, Senior Center, Corporate
Yard, Family Youth Center and Water Facilities. The TLLD contract covers the annual landscape
maintenance services for the Assessment District, including irrigation repair and plant material
replacement. Although both contracts have annual extensions through June 30, 2018, staff
elected to re -bid these contracts using minimum staffing requirements rather than specified levels
of service. The current contracts were written at a time when the City's financial resources were
uncertain. To keep costs as low as possible, the level of service required was minimal (weeding,
mowing, edging, and blowing). The existing contracts were allowed to expire on June 30, 2015
and are now operating on a month-to-month basis until new service agreements are executed.
The existing landscape contractors, Spectrum Care Landscape & Irrigation Management, Inc. and
Merchants Landscape Services, Inc. have provided consistent service of acceptable quality over
the last two years and staff has been satisfied with their professionalism, customer service and
responsiveness to the City's concerns. However, in response to resident complaints and a general
desire to see landscape improvements, staff evaluated the option to re -bid these contracts using
minimum staffing levels (labor based contract) rather than using specified levels of service
(performance based contract).
Essentially a labor based contract requires a specific number of employees and certain equipment
be provided by the contractor. These resources can then be directed by City staff, which allows for
greater control over the services provided. Additionally, requiring a minimum level of staffing
eliminates the need to increase contractor compensation for small maintenance areas that are
likely to be added to the General Fund contract as development in Tustin Legacy continues or for
one-time landscape rehabilitation projects that are outside of the general scope of work for
maintenance.
DISCUSSION
On April 16, 2015 three proposals were received for the General Fund/Water Facilities and five
proposals were received for the Tustin Landscape and Lighting District out of a total of the ten
potential vendors that attended the pre -proposal meetings held on March 17, 2015. Each proposal
was evaluated on responsiveness to the proposal, experience, staffing, licenses, references,
management approach and financial impact.
The price proposals are summarized as follows in order of least dollar amount:
General Fund City/Water Facilities (existing contract amount is $328,676):
Merchants Landscape Services, Inc. — Santa Ana ........................... $ 618,552
ValleyCrest Landscape Services, Inc. — Santa Ana .......................... $ 623,971
Marina Landscape Maintenance, Inc. —Anaheim .............................$ 671,804
Tustin Landscape and Lighting District (existing contract amount is $292,668):
Mariposa Landscapes, Inc. — Irwindale ............................................ $ 546,204
Merchants Landscape Services, Inc. — Santa Ana ........................... $ 593,425
Marina Landscape Maintenance, Inc. —Anaheim .............................$ 644,950
ValleyCrest Landscape Services, Inc. — Santa Ana .......................... $ 650,901
Midori Gardens — Santa Ana............................................................ $ 701,880
Generally speaking, labor based contracts cost more than performance based contracts.
However, the results are far superior. The resources provided become an extension of staff and
there is limited opportunity for contract disagreements.
Award of Landscape Maintenance Contracts
July 7, 2015
Page 3
As a result of the solicitation and competitive bidding process, staff believes having two service
providers to be advantageous in terms of quality care, performance, responsiveness,
competitiveness and flexibility. Based upon staffs evaluation, interviews, reference checks and
past vendor performance, it is recommended that City Council award the subject contracts for
necessary landscape maintenance services.
Stack, P.E.
Public Works/City Engineer
SACity Council Items\2015 Council Items\07-07-2015Wward of Contracts for Landscape Maintenance Service.doc