TITLE
Recommendation to authorize City Manager to execute all documents necessary to amend 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, increasing the aggregate annual contract amount by $358,674, for a total annual amount of $3,513,938; authorize a 10 percent contingency in the amount of $351,394, for an aggregate annual amount not to exceed $3,865,332; and execute any necessary future amendments thereto, provided that the aggregate total amount of contract authority is not exceeded. (Citywide)
DISCUSSION
Currently, the City of Long Beach (City) has contracts for grounds maintenance services with Azteca Landscape, Inc. (Azteca), and Merchants Landscape Services, Inc. (Merchants), for a combined aggregate annual amount not to exceed $3,155,264. The City exercised the first of two renewal options, expiring May 31, 2016, with one renewal option remaining for an additional one-year period.
City Council approval is hereby requested to amend the foregoing contracts with Azteca and Merchants to increase the aggregate annual contract amount by $710,068, including a recommended 10 percent contingency amount of $351,394.
Since the time that the contracts were awarded to Azteca and Merchants, the City has added new parks and medians and has made modifications to grounds maintenance services provided throughout parks, street islands and other City properties. Consequently, it was necessary to update the scope of services and service areas of the contracts (Attachment). As a result of these changes, the contracts with Azteca and Merchants need to be amended to increase the aggregate total amount of contract authority. Additional service changes are expected in the future as parks and facilities are made available to the public; therefore, a 10 percent contingency is requested.
This matter was reviewed by Deputy City Attorney Linda T. Vu on March 7, 2016 and by Budget Management Officer Victoria Bell on March 4, 2016.
TIMING CONSIDERATIONS
City Council action is requested on April 5, 2016, in order to execute contract amendments in a timely manner.
FISCAL IMPACT
Aggregate costs for these services will not exceed $3,865,332 per year, including the recommended 10 percent contingency of $351,394, representing an increase of $710,068 from previously approved amounts. Of that amount, $3,513,938 is budgeted in the General Fund (GF), Tidelands Operations Fund (TF 401), Marina Fund (TF 403), Special Grants Fund (SR 120), and Transportation Fund (SR 182) in the Parks, Recreation and Marine Department (PR). The 10 percent contingency of $351,394 is unbudgeted, and will not be expended in FY 16. As new areas of service are authorized, funding for the associated additional ongoing maintenance expense will be addressed as part of the annual budget development process. This recommendation will result in a positive impact on jobs, although the exact number is unknown at this time.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIE KNIGHT
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER