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HomeMy WebLinkAboutItem 1f - Reject Landscape Maintenance ContractDATE: November 4, 2014 TO: Honorable Mayor and City Council STAFF REPORT Public Works Services Department FROM: Tom Tait, Public Works Services Director By: Jacquelyn Mercado, Public Works Office Coordinator SUBJECT: REJECT ALL BIDS RECEIVED FOR LANDSCAPE MAINTENANCE SERVICES, DIRECT STAFF TO RE -BID THE CONTRACT WITH REVISED SPECIFICATIONS FOR THESE SERVICES, AND AWARD A TWO MONTH CONTRACT EXTENSION WITH CLS LANDSCAPE MANAGEMENT, INC. IN THE AMOUNT OF $70,760 Recommendation: Reject Bids, Direct Staff to Re -bid, and Approve an Extension with CLS SUMMARY The Public Works Services Department ( "PWSD ") is responsible for the landscape maintenance of all City -owned landscaped areas. In order to ensure that exceptional landscape services are provided, a formal Request for Qualifications and bid were conducted for these services. As a result, two bids were received;, subsequently, one bidder requested to withdraw their bid due to an error and the second bid was significantly higher than the approved budget. It was determined that modifying the bid schedules and re- bidding the project will allow the City to receive more competitive bids within the approved budget amount. It is recommended that the City Council reject all bids received for landscape maintenance services and direct staff to re -bid the contract with revised specifications and award a two month contract extension with CLS Landscape Management, Inc in the amount of $70,760. DISCUSSION PWSD is responsible for the maintenance of all City -owned landscaped areas, which includes medians, parkways, parks, water facility sites, parking districts, and City -owned facilities. Due to the complexity of the specifications, high standards required for landscaping throughout the City, and the possibility of getting a low bid from a contractor who could not meet the specifications of the contract, a Request for Qualifications was advertised in the City's adjudicated paper on July 7, 2014. As a result, four contractors submitted their qualifications for review and all four were pre- Contract for Landscape Maintenance Services November 4, 2014 Page 2 of 3 qualified to submit a bid. To further communicate the City's required landscaping needs, all four pre - qualified contractors attended an extensive site walk, which allowed them to view first hand landscaped areas that would be covered under the contract. On September 30, 2014, the City Clerk publicly opened two sealed bids with the following results: FIRM LOCATION BASE BID BID ALTERNATE CLS Landscape Management, Inc. Chino, CA $ 477,371.16 $ 24,940.80 Mariposa Horticultural Irwindale, CA $ 665,700.16 $ 4,800.00 The base bid included all work specified in the current contract, with some additional clarifications for trouble spots and emerging issues throughout the City. The bid alternate was for the addition of landscaping maintenance on the freeway on /off ramps. The prices submitted above are annualized costs. Following the bid opening, CLS Landscape Management, Inc. ( "CLS ") requested to withdraw their bid on their own accord due to errors in their bid. Additionally, PWSD contacted the two additional pre - qualified contractors who did not submit a bid to determine the reasons why. One contractor stated that after attending the site walk and careful review of the City's specifications, it was determined that they could not provide the required labor necessary to perform the City's required landscaping needs. A second non - responsive contractor stated that they internally did not have enough dedicated sales personnel to complete a bid of this size. The one remaining bid received by Mariposa Horticultural was significantly higher than the approved budget. In follow -up conversations with Mariposa, it became clear that the personnel "man counts" identified in the specifications were unnecessarily pushing the costs higher; the same high quality work could be accomplished with fewer personnel. In order to stay within the approved budget, the scope of work from the original bid specifications will need to be revised to allow bidders to determine the labor requirements necessary to perform the City's required landscaping needs. All other quality standards will remain in place; it will simply be left to the contractor to decide the right number of people for the job. It is anticipated that revising the labor requirements in the bid specifications and re- bidding this project will enable the City to receive more competitive bids within the approved budget amount and to provide landscape maintenance levels that are acceptable to the City of Arcadia. The existing landscape maintenance contract with CLS, the City's current landscape contractor, is set to expire on December 4, 2014. To allow for rebidding of the contract without interruption of service, it is recommended that the City Council also approve a two month contract extension with CLS for landscaping services through the end of January 2015. This extension will allow for continued landscaping services, while PWSD modifies the bid specifications and re -bids the project to receive more competitive bids within the approved budget amount. Contract for Landscape Maintenance Services November 4, 2014 Page 3 of 3 FISCAL IMPACT Sufficient funds are budgeted in each Department's Contract Services accounts for landscape maintenance services in the Fiscal Year 2014 -15 Operating Budget. RECOMMENDATION It is recommended that the City Council reject all bids received for landscape maintenance services, direct staff to re -bid the contract with revised specifications, and award a two month contract extension with CLS Landscape Management, Inc in the amount of $70,760. Approved. Dominic Lazza City Manager