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HomeMy WebLinkAbout05 - Landscape Maintenance in Newport CoastCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 5 September 11, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, 949 - 644 -3055 mharmonO -city. newoort- beach.ca. us SUBJECT: Selection of a Vendor for Contract Negotiations for the Landscape Maintenance of Public Areas in Newport Coast ISSUES: Should the City Council select a vendor and direct staff to negotiate a two -year agreement to provide landscape maintenance services in the Newport Coast section of the City? RECOMMENDATION: Direct staff to negotiate a two -year agreement with Park West Landscape Maintenance, Inc., of Santa Ana to provide landscape maintenance services in the Newport Coast area, and return to the September 25th City Council meeting with an agreement for approval. DISCUSSION: History of City Landscape Maintenance in Newport Coast., On September 10, 2002, the City Council approved a contract with Park Landscape Maintenance to maintain the 14.95 acres of Newport Coast landscape which had become the City's maintenance responsibility. The term of the contract with Park Landscape was for one year, with the possibility of up to four automatic one -year extensions upon approval by both parties. In December 2003, Assistant City Manager Kiff presented a report to the City Council requesting to enter agreements with various Newport Coast. community associations to maintain the landscaping on certain slopes, parkways, and medians Selection of a Vendor for Contract Negotiations for the Landscape Maintenance of Public Areas in Newport Coast September 11, 2007 Page 2 along public streets. In an associated action, the Council approved a recommendation authorizing the General Services Director to enter into or amend the existing contract with the (newly renamed) contractor, Park West Landscape Maintenance, Inc. to add these areas at the current contract price. Additional areas were added to the agreement in February 2004 and April 2005. Following the acquisition of five native parks from the County of Orange in July 2005, the City Attorney's Office advised it was prudent to memorialize the additional acreage (including the February 2004 and April 2005 additions) in a contract amendment. This amendment was approved by the Council on November 8, 2005, but did not change the expiration date of the contract (September 30, 2007). Consequently, PWLM currently provides maintenance of 92.08 acres of landscape in Newport Coast, and has offered to continue at the same price through October 31, 2007 while the RFP /Contract process is completed ($32,238 per month, or $386,856 per year). The landscape in Newport Coast is different from other areas in the City for a number of reasons. First, the land being maintained is not City property. When the communities were developed, the major landowner (The Irvine Company) and the planning jurisdiction (the County of Orange) established a complex program of private ownership of lands like street medians, parkways, slopes along public streets, which ordinarily would be public property. These areas belong to either the Newport Coast Master Association or the Newport Ridge Association, and the City maintains it under Maintenance Agreements approved in December 2003. Consequently, the Associations' management company, and Association board members make monthly inspections, the results of which are forwarded to both City staff and the contractor. Second, recycled water for irrigation is purchased from the Irvine Ranch Water District (IRWD). IRWD's pricing includes penalties for excess usage, and while the allocations are at a level which allow adequate irrigation at the 60 -75% level, usage quickly escalates when sprinkler heads are broken or valves are leaking. Since the contractor is responsible for any penalties, they have a greater incentive to ensure that irrigation systems are checked and kept in good repair. Additionally, the varied sites we are asking the vendor to maintain are usually not combined in a single contract. Elsewhere in the City, we have combined park and facility contracts, but Citywide medians and roadside areas are separately contracted. The Newport Coast contractor is responsible for the maintenance of medians, roadsides, densely landscaped slopes, facilities (Fire Station 8 and the Community Center following City assumption of maintenance) and an extensive series of v- ditches. A map is attached which details the areas included in this contract. Request for Proposal Process: On July 25, 2007, staff mailed Requests for Proposal to 18 landscape maintenance companies, with a due date of August 15. Selection of a Vendor for Contract Negotiations for the Landscape Maintenance of Public Areas in Newport Coast September 11, 2007 Page 3 There were two changes between the current maintenance agreement and the guidelines given in the RFP. First, as noted above, the existing agreement had a one year term, but was renewable in one -year increments up to four times. The RFP discusses our intent to enter into a two -year agreement, with an allowance for up to three one -year extensions. While the end result is very similar, it does protect the City from the vendor giving notice that they choose not to renew at the end of only one year, requiring another RFP process. The RFP also provides for a CPI increase not to exceed 2.5% at the end of the two -year term and annual thereafter upon renewal of the agreement. A second change is the requirement for a minimum level of manpower. The RFP stated that the workforce should include a supervisor plus 12 employees: a leadworker, an irrigation technician, nine positions for general maintenance, and one position dedicated to general litter control, refuse removal, and grounds policing, to ensure the contract area is checked for litter each day. This manpower requirement doesn't preclude a contractor from bringing in additional manpower as necessary, but it allows the City to quantitatively measure their adherence to the contract on a daily basis. On August 2, a mandatory pre -bid meeting was held at Fire Station 8 in Newport Coast, and the meeting was attended by eight vendors. Following the meeting, the vendors toured the Coast area to view the maintenance areas. RFP Results: Staff received three proposals by the 11:00 a.m. deadline on August 15. The respondents and annual contract costs were as follows: Vendor Annual Cost Annual Cost Difference from Lowest Proposal Park West Landscape $495,277.50' -0- Maintenance, Inc. Mission Landscape $495,360700 $82.50 Services, Inc. TruGreen Landcare, $695,000.00 $199,722.50 LLC. "Park West had listed its annual costs as $495,277.00. Their bid unit costs, however totaled $495,277.50. Evaluation of Contractors: As noted above, PWLM currently maintains the landscape included in this contract. Mission Landscape maintains landscape for various HOAs in the Newport Coast area, and is familiar with the expectations of the community. Selection of a Vendor for Contract Negotiations for the Landscape Maintenance of Public Areas in Newport Coast September 77, 2007 Page 4 Staff visited sites outside the City which were maintained by PWLM and Mission Landscape and found the quality of work to be excellent in each case. Likewise, staff contacted representatives of The Irvine Company and the Rancho Santa Margarita Corporation who had positive comments about Mission. Likewise, UC Irvine and Merit Property Management had positive comments about PWLM, DeAartmentRecommendadon: As noted above, General Services Department staff looked at the work performed by the two lowest cost vendors, checked with €their clients, and found them to be very similar in company philosophy, the quality of the work, and responsiveness of the staff. Either firm would maintain the Newport Coast landscape at a high level, meet contract requirements, and be responsive to City staff needs and requests. Staff is, however, recommending approval to negotiate with PWLM based on cost, familiarity with the contract specifications and areas, and greater ability to perform at top level upon the desired start date of the contract, November 1. While our analysis showed Mission is a first -class organization, there would still be a learning curve upon commencement of the contract. Consequently, we are seeking approval to negotiate with PWLM and return to the September 25th meeting with an agreement for approval. In negotiations, we will attempt to further define fixed pricing for extra work and out of contract services. FUNDING: PWLM's new cost is $108,421 more per year than under their current agreement. Of that increase, $13,957 is attributable to the inclusion of the maintenance of the Newport Coast Community Center landscape.. The remainder is due to an increase in the cost to maintain the native areas added in 2005 and cost increases over the past five years, as the previous agreement did not include any CPI increase. Consequently, staff will request a budget amendment concurrent with approval of an agreement at the September 25th meeting to fund the difference over the eight months of the fiscal year for which this contract would be in force (November 1, 2007 through June 30, 2008). ENVIRONMENTAL REVIEW: This action requires no environmental review, as it is not a project pursuant to CEQA. Selection of a Vendor for Contract Negotiations for the Landscape Maintenance of Public Areas in Newport Coast September 71, 2007 Page 6 Prepared by: Submitted by: Mike Pisani Mark Ha on Deputy General Services Director General Services Director Attachment: Newport Coast Maintenance Contract Map