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Home My WebLink About2006-06-07 STAFF REPORTS 2N FP.LM 5A 0 C xoonn*co's P a City Council Staff Report (DATE: JUNE 7, 2006 CONSENT CALENDAR SUBJECT: APPROVE AWARD OF CONTRACTS FOR LANDSCAPE MAINTENANCE SERVICES FOR PARKS, PARKWAYS, ASSESSMENT DISTRICTS AND MISCELLANEOUS LANDSCAPED AREAS FROM: David H. Ready, City Manager BY: Department of Parks and Recreation SUMMARY On April 14, 2006, the City issued a Request For Proposal (RFP 15-06) for Parks and Parkways Landscape Maintenance Services for the various locations throughout the community. The City received proposals from two qualified landscape maintenance contractors, conducted evaluations of those proposals, and is recommending that Kirkpatrick Landscaping Services of Indio, California, be awarded a contract for parks landscape maintenance services and Merchants Landscape Services of Rancho Cucamonga, California, be awarded a contract for parkways and assessment district landscape maintenance services. The incumbent contractor, Pac West Land Care, of Vista, California, did not submit a proposal. RECOMMENDATION: 1. Adopt Minute Order No. approving award of contract to Kirkpatrick Landscape Services for parks landscape maintenance services for an initial term of three years, with two additional two-year renewal options at the City Manager's discretion, in the amount of $1,756,350.15, plus annual CPI adjustments, if earned, for the initial term, and subject to approval of final form of contract by the City Attorney. 2. Adopt Minute Order No, approving award of contract to Merchants Landscape Services for parkways and assessment district landscape maintenance services for an initial term of three years, with two additional two- year renewal options at the City Manager's discretion, in the amount of $1,721,184.00, plus annual CPI adjustments, if earned, for the initial term, and subject to approval of final form of contract by the City Attorney. liTEM NO. .„... City Council Staff Report June 7, 2006 -- Page 2 Parks & Parkways Landscape Maintenance Services 3. Authorize the City Manager to prepare and execute contractual agreements with Kirkpatrick Landscape Services for landscape maintenance of City parks and Merchants Landscape Services for landscape maintenance of City parkways, assessment districts and miscellaneous landscape areas. STAFF ANALYSIS: The City of Palm Springs committed to privatization of maintenance services for its various parks, parkways, assessment districts and miscellaneous landscaped areas in '1995 in an effort to reduce General Fund operating and maintenance costs. This was the first significant effort in privatizing City services by the City. Due to a recent analysis conducted by the Department of Parks and Recreation, staff believes that privatization still remains the most cost effective way to deliver the routine grounds maintenance services as provided for within the proposed agreements. Since privatizing maintenance services many years ago, City staff has learned a great deal about both the positive and negative aspects of privatization. This knowledge has led to contract revisions and augmentations from time to time to improve accountability, increase service levels, add or delete locations, and develop improvements within the Scope of Services. At each opportunity, staff has included better management and operational controls into each revision to enhance contractor accountability and better define the City's service expectations. The current document represents this effort over the past 12 years and is believed to be the most comprehensive and acceptable agreement to date. In previous agreements, there has been a provision allowing staff to assess liquidated damages if the contractor fails to perform to acceptable standards. The new contract expands on this provision through the establishment of permissible limits for liquidated damages, which restrict the contractor from earning a cost-of-living increase if these limits are exceeded. Staff has also incorporated extensive language within the contract, stipulating "selective" ornamental pruning standards, dedicated staffing levels, employee identification provisions, performance documentation and improvements in records reporting. Each of these modifications is intended to increase accountability on the part of the contractors and provide staff with improved management tools to better administer the contracts. The Procurement and Contracting Division issued RFP 15-06 on April 14, posting it to the City's website, advertising it in The Desert Sun, The Press Enterprise, and the Los Angeles Times. Thirty two (32) firms registered as being interested in the RFP and seven (7) firms attended the pre-proposal conference that was held on April 26. Two (2) firms, Kirkpatrick and Merchants, submitted proposals. The RFP document allowed the City to either award one contract for the entire Scope of Services or two separate contracts, one for parks and one for parkways. City Council Staff Report .June 7, 2006 -- Page 3 Parks & Parkways Landscape Maintenance Services When the City initially privatized landscape maintenance services in 1995, two separate agreements, with two different contractors were negotiated. One agreement was for maintenance of all City parks and the other agreement was for the remaining City parkways and assessment districts. Since that time, there have been several revisions to these agreements, which have left the City, at the present time, with a single landscape maintenance contractor. Although this arrangement may contain some economies of scale, it has also seriously limited the number of contractors who are capable of bidding on such a large contract. Combining the contracts unintentionally limited the pool of qualified contractors with the capacity to service the City's needs. ;separating the operation into two different agreements provides the City with a higher degree of flexibility. Additionally, when new projects come forward that could require amending the service agreements, the City will have the flexibility of obtaining maintenance quotes from two different contractors as opposed to a single contractor. In the unlikely event that either of the recommended contractors fails to perform properly or surrenders in default, the City would then have the option of having an onsite contractor readily available to assume the other contractor's work. This could be done relatively easily if the City desired to do so rather than going through the lengthy process of issuing a formal bid or requests for proposal. FISCAL IMPACT: IFinance Director Review: The value of the current contract with Pac West Land Care for both Park and Parkway landscape maintenance services is $1,033,520.28 which does not include maintenance services for the Convention Center or Mountain Gate II. The aggregate cost of the two proposed agreements is $1,159,178.05, inclusive of both the Convention Center ($58,014) and Mountain Gate II ($44,384) which collectively total $102,398. This represents an increase of $125,657.77' to the existing contract amount but only $23,259.77 over the exiting agreement utilizing identical service level comparisons. If the current contractor had continued, they would have been eligible for a cost of living increase of roughly $40,000 per year which is roughly $17,000 higher than the agreements being currently proposed. Staff anticipated there would be an increase in annual cost of both the parks and parkways agreements and subsequently provided the Finance Department with these estimates during the budget process. The annual cost for parks landscape maintenance services from Kirkpatrick Landscaping Services will be $585,450.05 (plus an annual CPI increase, if earned) and the annual cost for parkways landscape maintenance services will be $573,728.00 (plus an annual CPI increase, if earned). Funds are available and have been budgeted for this purpose in Account Nos. 001- 2451-43240, 001-2451-43500, 001-2451-43510, 001-2451-43520, 001-2451-43530, 001-2451-43540, 001-2451-43550, 001-2451-43560, 001-2451-43570, 001-2451- 43580, 001-2451-43590, 001-4471-43200, 112-2080-43200, and 812-8192-43060. City Council Staff Report June 7, 2006 -- Page 4 Packs & Parkways Landscape Maintenance Services tt Mikesell, Director T L. Butzla stant City Manager apartment of Parks and Recreation Ad istrative e i es ee David H. Ready, City%aageTs Attachments: 1. MINUTE ORDERS (2) City Council Staff Report June 7, 2006 -- Page 5 Parks & Parkways Landscape Maintenance Services MINUTE ORDER NO. APPROVING AWARD OF CONTRACT TO KIRKPATRICK LANDSCAPE SERVICES FOR PARKS LANDSCAPE MAINTENANCE SERVICES FOR AN INITIAL TERM OF THREE YEARS, WITH TWO ADDITIONAL TWO-YEAR RENEWAL OPTIONS AT THE CITY MANAGER'S DISCRETION, IN THE AMOUNT OF $1,756,350.15, PLUS ANNUAL CPI ADJUSTMENTS, IF EARNED, FOR THE INITIAL TERM, AND SUBJECT TO APPROVAL OF FINAL FORM OF CONTRACT BY THE CITY ATTORNEY. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order, approving award of contract to Kirkpatrick Landscape Services for parks landscape maintenance services for an initial term of three years, with two additional two- year renewal options at the City Manager's discretion, in the amount of $1,756,350.15, plus annual CPI adjustments, if earned, for the initial term, and subject to approval of final form of contract by the City Attorney, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 7th day of June, 2006. James Thompson, City Clerk City Council Staff Report June 7, 2006 -- Page 6 Parks 8, Parkways Landscape Maintenance Services MINUTE ORDER NO. APPROVING AWARD OF CONTRACT TO MERCHANTS LANDSCAPE SERVICES FOR PARKWAYS AND ASSESMENT DISTRICT LANDSCAPE MAINTENANCE SERVICES FOR AN INITIAL TERM OF THREE YEARS, WITH TWO ADDITIONAL TWO-YEAR RENEWAL OPTIONS AT THE CITY MANAGER'S DISCRETION, IN THE AMOUNT OF $1,721,184.00, PLUS ANNUAL CPI ADJUSTMENTS, IF EARNED, FOR THE INITIAL TERM, AND SUBJECT TO APPROVAL OF FINAL FORM OF CONTRACT BY THE CITY ATTORNEY. I, .Dames Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order, approving award of contract to Merchants Landscape Services for parkways and assessment district landscape maintenance services for an initial term of three years, with two additional two-year renewal options at the City Manager's discretion, in the amount of $1,721,184.00, plus annual CPI adjustments, if earned, for the initial term, and subject to approval of final form of contract by the City Attorney, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 7th day of June, 2006. James Thompson, City Clerk