TITLE
Recommendation to adopt Specifications No. PA-00413 and award contracts to Marina Landscape, Inc., of Anaheim, CA (not an MBE, WBE, SBE or Local), and Azteca Landscape, Inc., of Ontario, CA (MBE and WBE), for providing grounds maintenance services, in a total combined annual amount of $2,137,284, for a period of two years, with the option of adding expenditures up to 15 percent (or $320,593) above the annual contract amount, if necessary and if funds are available, for a not to exceed total combined annual amount not to exceed $2,457,877, with the option of renewing for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into annual contracts with Marina Landscape, Inc. and Azteca Landscape, Inc., to provide grounds maintenance services for the Department of Parks, Recreation and Marine for the following service areas:
· Northwest Parks and Streets Area 1 - Marina Landscape, Inc. ($338,680)
· Northeast Parks and Streets Area 2 - Azteca Landscape, Inc. ($906,420)
· Southwest Parks and Streets Area 3 - Marina Landscape, Inc. ($437,501)
· Southeast Parks and Streets Area 4 - Marina Landscape, Inc. ($454,683)
The bid specifications were thoroughly reviewed and updated by the Department of Parks, Recreation and Marine and the Purchasing Division to identify areas which could be better served by streamlined operations and reduced frequencies. The redeveloped scope of services provides the ability for alternative pricing which could yield further cost savings. Following the establishment of the current landscaping contracts, 32 new sites were added to the landscaping and maintenance services that were not initially covered by these contracts (attached). As a result of the reduction in common tasks and frequencies for these areas, many supplemental operations, such as irrigation repairs, service needs related to special events or other unknown circumstances, will be funded by the 15 percent contingency on an as-needed basis. Upon contract award and before start of the contracts, contractors are required to submit a bidder's bond, insurance certificates and other required documents.
In addition, the contract has numerous financial remedies for contractor non-compliance and non-performance that include payment deductions.
The bid was advertised in the Press-Telegram on March 16, 2013, and 337 potential bidders specializing in landscaping services were notified of the bid opportunity. Of those bidders, 47 downloaded the bid via our electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.longbeach.gov/purchasing. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 30 local, minority and women-owned business groups. Seven bids were received on April 17, 2013. Of those seven bidders, two were Minority-owned Business Enterprises (MBEs), two were Women-owned Business Enterprises (WBEs), none were certified Small Business Enterprises (SBEs), and none were Long Beach businesses (Local). Marina Landscape, Inc., of Anaheim, CA (not an MBE, WBE, SBE or Local), and Azteca Landscape, Inc., of Ontario, CA (MBE, WBE), were the lowest responsible bidders.
Local Business Outreach
In an effort to align with our outreach goal, Long Beach businesses were encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the Bids Online database to download the bid specifications. Through outreach, 46 Long Beach vendors were notified to submit bids, of which eight downloaded and none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Amy R. Webber on May 8, 2013 and by Budget Management Officer Victoria Bell on May 9, 2013.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-00413 and award contracts concurrently is requested on May 21, 2013 to maintain continuity of services.
FISCAL IMPACT
The cost of these contracts, in an estimated combined annual amount of $2,137,284, is budgeted in the General Fund (GP), Tidelands Operations Fund (TF 401), Marina Fund (TF 403), Special Grants Fund (SR 120), and Transportation Fund (SR 182), in the Department of Parks, Recreation and Marine (PR). The City will have the option of adding expenditures up to 15 percent (or $320,593) above the annual contract amount for supplemental operations, if necessary and if funds are available. The award of these contracts will provide continued support to our local economy by assisting in the preservation of 23 full-time employees residing the Long Beach with employment.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER