HomeMy WebLinkAboutItem H tie AGENDA STAFF REPORT
.„40F
DATE: December 12, 2016
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Jim Basham, Director of Community Development
SUBJECT: CITY WIDE LANDSCAPE MAINTENANCE SERVICE
CONTRACT
SUMMARY OF REQUEST:
That the City Council take the following actions:
1. Reject all Landscape Maintenance Services bids;
2. Direct staff to bring back a landscape services agreement to fulfill
general landscape maintenance services until the end of this fiscal
year; and,
3. Direct staff to conduct a cost-benefit analysis to consider bringing
landscape maintenance services in-house.
BACKGROUND AND ANALYSIS:
For the past five years, the City has contracted with Spectrum Landscape Care
for city wide landscape maintenance services within the public right of way and
parks. Spectrum's annual contract with the City was $240,000. Due to financial
difficulties, Spectrum was forced to terminate their contract with the City without
prior notice on October 6, 2016. To ensure service was maintained, staff
secured a purchase order with Brightview Landscaping Services not to exceed
$28,000.
On October 18`", staff released a Request for Proposal (RFP) for City-wide
landscape maintenance services. A total of five vendors responded to the
request. The annual bids are listed below:
Vendor _ Annual Amount
Brightview Landscaping Services $631,457.72
SoCal Landscape Maintenance Inc. $496,298.49
Master Landscape & Maintenance Inc. $1,068,483.70
Complete Landscape Care, Inc. $666,422.75
Merchants $604,1115.35
Agenda Item H
The results of all five bids represent an increase in cost of almost three times the
amount the City was previously paying for the same maintenance services. The
increased costs are primarily due to prevailing wages required under State law.
The lowest bidder submitted a proposal for $496,298.49, which staff believes will
result in numerous change orders throughout the contract years. After reviewing
the bid proposals, a contract to fulfill the City's maintenance requirements with
prevailing wages would cost approximately of $600,000 annually.
As an alternative, staff suggests that City Council direct staff to bring back a cost
benefit analysis demonstrating the ability of in-house staff to provide the same
service but with full-time employees at a reduced cost. During the interim, staff
would like to conduct an open bid process and bring back a contract for
temporary landscape maintenance services until the end of this fiscal year.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
FINANCIAL IMPACT:
There is no financial impact related to this item.
RECOMMENDATION:
That the City Council takes the following actions:
1. Reject all landscape maintenance service bids;
2. Direct staff to bring back a landscape services agreement to fulfill general
landscape maintenance services until the end of this fiscal year; and,
3. Direct staff to conduct and bring back a cost-benefit analysis to consider
bringing landscape maintenance services in-house.
S TTED : : NOTED AND APPROVED:
''L� i
i T Basham Ji�Ingram, City Man.C•r
Diu-ctor,of Community Development
Prepared by Tim Kelsey, Recreation Manager
Page 2