TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Director of Public Works
Juan Price, Maintenance Superintendent
SUBJECT:Title
Request to Exercise Contract Renewal Option for Landscaping Services Provided by Merchants Landscape, Inc. (Public Works Director Olmos).
APPROVE
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Recommended Action
RECOMMENDATION:
Staff requests approval to exercise the two year renewal option for landscaping services provided by Merchants Landscape, Inc. as provided within the currently approved contract terms.
Body
FISCAL IMPLICATIONS:
Sufficient funds are included in the 15/16 Public Works operating budget for annual contracted landscape maintenance services. The contract is spread over several accounts including parking facilities, parks, athletic fields, schools, water, wastewater and stormwater sites. The current annual cost for the various listed sites totals $416,000.
BACKGROUND:
The City has contracted private firms for landscape and irrigation maintenance services for over 30 years. The scope of work includes, but is not limited to, the regularly scheduled mowing, powerwashing, fertilizing, irrigation repair, sweeping and restroom maintenance at over 80 separate sites. Services can be all inclusive such as at Marine Ave. and Polliwog Park, or limited to sweeping and weed abatement on smaller right-of-way areas. The contracted work also includes the preparation of baseball diamonds and other athletic fields for daily use.
DISCUSSION:
Merchants Landscape, Inc. has provided landscape maintenance services to the City for the previous 5 year contract term. The contract expires on June 31, 2015 and allows for two each two year extensions for a total of four additional years at the City's discretion. Staff recommends renewing with the incumbent contractor to retain the site specific knowledge and experience the contractor's staff has accumulated. There are more than 80 locations that the landscape contractor is responsible for, each location having its particular scheduling and operational requirements for landscape maintenance.
Merchants Landscape has provided satisfactory service to the City during this contract term, and has shown great flexibility in scheduling and inclusion of duties not part of the original contract. Additionally, the contractor has made adjustments as directed by staff. Merchants Landscape has included several new sites at very reasonable prices including the addition of the Mira Costa Athletic fields.
Also, Merchants Landscape has assisted staff during City emergencies and projects in a very responsive manner, including:
· Distribution of sand bags during heavy rain events
· Temporary hand watering of landscape during construction
· Rapid response to storm and traffic related tree knockdowns
· Labor for parks maintenance projects such as the Live Oak Tot Lot rehabilitation
Staff has contacted other local agencies regarding landscape related bids and found that, in general, newly bid contracts have increased approximately 10% for a similar scope of work.
POLICY ALTERNATIVES:
ALTERNATIVE #1:
Decline renewal option and instruct staff to advertise for new Landscaping Services contract.
PROS:
Presents an opportunity to modify scope of work if desired.
CONS:
There is a significant amount of staff time needed in contract development and a steep learning curve associated with bringing on the new service provider to a satisfactory performance level. The pending retirement of the contract manager will exacerbate this difficult process further. Additionally, contract pricing is expected to rise for a similar scope of work.
CONCLUSION:
Current market conditions indicate a high probability of an overall contract price increase if the contract is put out for bid. The complexity of the current contract usually results in a learning curve before an acceptable level of service is attained. Staff recommends approval of the two year renewal request to maintain the current level of service.
Attachments
1. Amended Agreement