TITLE
Recommendation to authorize City Manager, or designee, to execute amendments to Contract No. 33071 with Azteca Landscape, Inc., of Ontario, CA, and Contract No. 33259 with Merchants Landscape Services, Inc., of Santa Ana, CA, for grounds maintenance services; extend the term to August 31, 2018 with an option to extend for a period of three months, at the discretion of City Manager; and, increase the aggregate contract amount by $1,932,666, plus $966,333 if the optional three-month extension is exercised, for a total aggregate contract amount not to exceed $9,663,330. (Citywide)
DISCUSSION
The City of Long Beach (City) has maintained contracts for grounds maintenance services for over 1,400 acres of park properties with Azteca Landscape, Inc. (Azteca), and Merchants Landscape Services, Inc. (Merchants), pursuant to a Request for Proposals (RFP) process and award by City Council in June 2013. The two-year contract and two annual renewal options approved by the City Council were exercised by the Department of Parks Recreation and Marine (PRM). On May 23, 2017, the City Council approved the extension of the contracts until February 28, 2018, to allow for a new and revised comprehensive RFP process and award.
PRM, working in conjunction with the Department of Financial Management and the City’s Purchasing Agent, has been diligently working to complete the RFP process. Due to the size and breadth of the scope of these contracts, City Council approval is requested to extend the contracts for six months, to allow for the appropriate time to evaluate, negotiate and award the best and most effective contracts for the City. Additionally, an optional three-month extension with the approval of the City Manager is requested for a total of a nine-month extension, to allot for an implementation period required for new vendors, changes to the current contract scope, and/or to avoid the implementation of a new contract during the critical summer period.
City Council approval is also requested to amend the foregoing contracts with Azteca and Merchants, and increase the aggregate contract amount by $1,932,666, plus $966,333 if the optional three-month extension is exercised, for a total aggregate contract amount not to exceed $9,663,330.
This matter was reviewed by Deputy City Attorney Linda T. Vu on February 1, 2018 and by Budget Management Officer Rhutu Amin Gharib on February 2, 2018.
TIMING CONSIDERATIONS
City Council action is requested on February 20, 2018, to allow for uninterrupted continuation of services.
FISCAL IMPACT
Costs for the current term of contracts, expiring February 28, 2018, may not exceed $6,764,331. The recommended action of extending the current contracts at the existing rates for the six-month period spanning March 2018 through August 2018 will increase total contract costs by $1,932,666. The optional three-month extension, if needed, would cost an additional $966,333, for a revised total aggregate contract amount of $9,663,330 for services provided through November 2018. Sufficient funds for the contracts are budgeted in the General Fund (GF), Tidelands Operations Fund (TF 401), Marina Fund (TF 403), and Transportation Fund (SR 182) in the Parks, Recreation and Marine Department (PR). As new areas of service are authorized, funding for additional ongoing maintenance expenses will be addressed as part of the annual budget development process. This recommendation will result in a positive impact on local jobs, but the exact number is unknown at this time.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
MARIE KNIGHT
DIRECTOR OF PARKS, RECREATION AND MARINE
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER