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HomeMy WebLinkAbout12 ANN'L LDSCPE MAINT 06-07-04 AGENDA REPORT Agenda Item Rewewed: ~ City Manager Finance Director ~ MEETING DATE: JUNE 7, 2004 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES SUBJECT: AWARD OF CONTRACT FOR ANNUAL LANDSCAPE MAINTENANCE SERVICES FOR ASSESSMENT DISTRICT AREAS FROM JULY 1, 2004 THROUGH JUNE 30, 2005 WITH THE OPTION OF THREE ONE-YEAR EXTENSIONS SUMMARY Award of the contract for the annual landscape maintenance services to TruGreen Land Care to provide landscape maintenance services in the City of Tustin's Assessment District Areas. The contract will provide for all daily and periodic landscape maintenance service needs for the Fiscal Year 2004/2005 with the option of three one-year extensions through June 30, 2008. RECOMMENDATION It is recommended that the City Council award the subject contract to TruGreen Land Care in the amount of $207,840, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. FISCAL IMPACT Sufficient funds for this contract will be appropriated in the City of Tustin's Landscape and Lighting District Operating Budget for the Fiscal Year 2004/2005. It is anticipated that the Operating Budgets for the following three years will contain similar amounts for the optional three one-year extensions. BACKGROUND The current Landscape Maintenance Services Contract for Assessment District Areas will expire on June 30, 2004. The City Council authorized advertisement for two new proposals, one for Assessment District Areas and another for General Fund Areas on March 15,2004. Two mandatory walkthrough meetings were held on March 30, 2004, with six prospective bidders attending the Assessment District meeting and seven attending the General Fund Areas meeting. Only one proposal packet for each area was received from TruGreen Land Care on April 8, 2004. City staff investigated the reason for receiving only one proposal by contacting the prospective bidders that attended the mandatory meetings and found that one could not meet the City's bonding requirements, another could not provide the bond in a timely manner, and two did not think they could be competitive in their price with the required level of service as compared to the current contracts. In addition, Lanco Landscape, the current contractor for the General Fund areas decided to eliminate the landscape maintenance division of their business Award of Contract for Annual Landscape Maintenance Services for Assessment District Areas from July 1,2004 through June 30,2005, with the Option of Three One-Year Extensions June 7,2004 Page 2 DISCUSSION The specifications for the new contracts stated that the intent of the City was to have two separate contractors (one for each area) to provide the required landscape services similar to the current contracts. Separate contracts for each area provide additional resources and flexibility in case of unsatisfactory performance in one area. TruGreen Land Care, the current provider for the Assessment District areas, was the only contractor who submitted proposal packets for both areas. As a result, City staff waived the requirement for two separate landscape contractors and initiated negotiations with TruGreen Land Care for possible award of both contracts to them. The negotiations resulted in a proposal of $207,840 for the landscape maintenance services for the Assessment District Areas. Staff is recommending award of the General Fund Areas and the Assessment District Areas contracts to TruGreen Land Care. Trugreen Land Care will be monitored closely during the year for performance and adherence to the contract requirements. The City Council is hereby requested to award the annual contract for Landscape Maintenance Services for the Assessment District Areas to TruGreen Land Care. The newly negotiated contract amount is $207,840 per year, or $17,230.00 per month, for the period of July 1, 2004 through June 30, 2005 with the option of three one-year extensions through June 30, 2008. The extension will be at the sole discretion of the City, subject to the contractor's overall satisfactory performance, and based upon future consumer price index (CPI) adjustments. If the contractor's performance proves to be unsatisfactory, the City will not renew the contract and solicit proposals for the 2005/06 Fiscal Year. c~~ Tim D. Serlet Director of Public Works/City Engineer c - t::J~ Wisam Altowaiji D Field Services Manager S:\City Councilltems\2004 CouncilltemslAward of Contract AD Areas.doc