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Recommendation to adopt Specifications No. PA-02105 and award contracts to Midori Gardens and Azteca for providing landscape maintenance services at various sites in an estimated annual amount of $789,588 for the period commencing August 1, 2005 for one year, with the option of renewing for three additional one-year periods. (Citywide)
DISCUSSION
On November 4, 2003, the City Council adopted specifications and authorized the City
Manager to advertise for bids to provide landscape maintenance services at various
designated sites, including parks and street medians citywide. An extensive employee
service delivery review process was initiated at the same time.
On July 21, 2004, thd City entered into a Contract with William Vandergeest Landscape
Care, Inc. (Vandergeest) to provide the street median landscaping citywide.
Vandergeest recently informed the City that they will not be renewing their contract at
the conclusion of the initial one-year contract period on July 21, 2005.
The Department of Parks, Recreation and Marine assumed responsibility for street
median landscape maintenance in October 2004 Since that time, we have learned a
great deal regarding the scope of work and required service levels. The new contract
will provide us the opportunity to add street medians that were inadvertently omitted
from the original specifications and those that were recently assigned to the City as part
of development agreements. The contract specifications were also adjusted to better
reflect the maintenance needs of the various landscape elements (e.g., turf, shrubs,
hardscape).
The bid specifications include a requirement that Proposition "L" contractors provide
health care benefits, pay $1.25 per hour in lieu of such benefits or pay prevailing wages
(which already include a component for health benefits) to their full-time and part-time
employees working under contract with the City. In addition, the specifications require
the contractors to provide supplemental information, such as the number of employees,
types of tools and vehicles used under the contract.
The bid specifications require all bidders to submit evidence indicative of their ability to
finance, provide and sustain the specified services to the satisfaction of the City. This
evidence includes a minimum of two consecutive years of recent experience providing
services at facilities and areas similar in nature and scope to those required.in this
contract, a bidders bond, client and credit references, financial statements, work history
and required licenses. Upon contract award and before the start of the contract,
contractors are required to submit a performance bond, insurance certificates for
commercial general liability, workers’ compensation, auto and all risk property
insurance, and an employee honesty bond. Finally, the contract has numerous financial
remedies for contractor non-compliance and non-performance that include payment
deductions.
The bid was advertised on May 4, 2005, and 26 potential bidders specializing in
landscape maintenance services were notified of the bid opportunity; seven are
Minority-owned Business Enterprises (MBEs), three are Women-owned Business
Enterprises (WBEs), and four are Long Beach businesses. The bid document was
made available from the Purchasing Division located on the Plaza Level of City Hall and
on the Purchasing Division website at www.Ibpurchasincl.org. A bid announcement was
also included in the Purchasing Division’s weekly update of Open Bid Opportunities sent
to 32 local, minority, and women’s groups. Bids were opened on May 20, 2005. Midori
Gardens, of Santa Ana, CA and Azteca Landscape, of Ontario, CA, were the lowest
responsible bidders.
The attached City Auditor’s report certifies that the City’s current cost to provide landscape
maintenance services is $2,422,376, and the total contractors’ cost is $686,598. According
to the City Auditor’s analysis, the contractor’s cost is $1,735,778 or 72 percent less when
compared to the City’s cost.
Based on the cost comparisons and City Auditor’s review, it is recommended that the
City Council award contracts for one year, with three one-year renewal options, to
Azteca Landscape and Midori Gardens, at the annual amount not to exceed $789,588.
The proposed annual amount is 15 percent above the contract bid cost to provide for
optional and supplemental tasks, non-scheduled work and emergency functions to
ensure public safety. The optional and supplemental tasks include irrigation repair,
plant replacement, turf renovation, special event preparation, and repair for other areas.
These tasks shall be evaluated by the City and performed on an as-needed basis, upon
request.
On June 6, 2004, Ms. Janet Wright, President of the International Association of
Machinists and Aerospace Workers, was notified by mail of the plans to award contracts
for landscape maintenance services and that it is anticipated that no permanent
employees will be laid off as a result of issuing these contracts.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin on April 28,
2005 and Budget Management Officer David Wodynski on June 2,2005.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-02105 and award contracts
concurrently is requested on June 14, 2005 to ensure that the new contracts are in
place by August ?, 2005. The current street median landscape services contract
expires on July 21, 2005.
FISCAL IMPACT
The total amount of the contracts, in the estimated annual amount of $789,588 is
budgeted in the General Fund (GP) and Tidelands Fund (TF) in the Department of
Parks, Recreation and Marine (PR). There is no guarantee that all funds will be
expended each year.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
[Respectfully Submitted,]