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REJECT ALL BIDS FOR THE PARKS MAINTENANCE AND JANITORIAL PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to reject all bids received for Parks Maintenance and Janitorial, Project No. OM-18-010, pursuant to Stockton Municipal Code section 3.68.160(B).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The existing contract with Odyssey Environmental Services, Inc. for maintenance and janitorial services at 66 City of Stockton park sites expires December 31, 2017.
The City advertised the Parks Maintenance and Janitorial Project for bids in August 2017. On August 24, 2017, the City received three bids for maintenance and janitorial services, from Odyssey Landscape of Lodi, Marina Landscape Maintenance of Stockton, and Al Fresco Landscaping, Inc. of Hollister (Attachment A). The low bid received was from Al Fresco Landscaping, Inc. in the amount of $2,692,825.00. Although an increase in the contract price was anticipated, the low bid is 58 percent over the engineer’s estimate, and there are insufficient funds to award the project.
Stockton Municipal Code (SMC) section 3.68.160(B) provides that the City Council shall award a contract to the lowest and best regular responsible bidder, or reject all bids. Staff contacted the respondents to better understand the significant price increases and current market conditions. Rejecting the current bids and re-advertising the project with revised specifications will result in more service level options, including the potential of reduced services, for Council to consider. Staff will also perform additional outreach to achieve more favorable bid outcomes. It is recommended that Council approve a motion to reject all the bids received.
DISCUSSION
Background
Up until the mid-1990’s, all City parks were maintained by City staff and maintenance was funded from the General Fund. In 1995, to reduce reliance on the General Fund, the City formed assessment districts to provide funding for maintenance of new parks.
The first new parks to be maintained with funding from assessment districts were completed in 1997. Maintenance of the new assessment district parks was primarily undertaken by contractors. City staff provided inspection of the contractor’s work to ensure conformance with the maintenance specifications.
On May 19, 2009, Council approved an expansion of contracted services to all City parks using the same maintenance model implemented for the assessment district parks. A service contract was awarded to Odyssey for routine landscape maintenance, site cleaning, janitorial, inspection of playgrounds and equipment, replanting, and irrigation system repairs. Contracting all park maintenance services reduced City costs by $1.2 million per year at the time, and savings would more today if adjusted for inflation.
Various other sites beyond traditional parks were added to the contract including boat launches, Pixie Woods, North Stockton Soccer Complex, and Victory Park Rose Garden. Maintenance services include: regular mowing and edging of the turf, irrigation system adjustments, shrub trimming, emptying trash cans, trash collection from the park grounds and adjoining sidewalk and gutter areas, and cleaning the park bathrooms. Additionally, Odyssey performs weed abatement at several undeveloped future park sites. These maintenance services are funded by the General Fund except for 12 parks located within various zones of the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 where funding comes from the respective annual park maintenance assessment.
The existing contract with Odyssey for maintenance and janitorial services expires December 31, 2017. Odyssey advised that they are unable to continue services within the existing contract reimbursement rates and would not continue under an extension of the current contract.
Present Situation
The project was advertised for bids on August 3, 2017. On August 14, 2017, a mandatory pre-bid meeting was held for the project and was attended by two contractors: Odyssey and Al Fresco Landscaping, Inc. of Hollister. Staff advertised a secondary mandatory pre-bid meeting and reached out to 9 regional landscape contractors inviting them to the pre-bid meeting. Three contractors attended the secondary mandatory pre-bid meeting held on August 17, 2017: Odyssey, Al Fresco Landscaping, Inc., and Marina Landscape Maintenance.
On August 24, 2017, three bids (Attachment A) were received with the following result:
|
COMPANY NAME |
BID AMOUNT |
LOCAL PREFERENCE |
|
Al Fresco Landscaping, Inc. (Hollister, CA) |
$ 2,692,825.00 |
$ 2,692,825.00 |
|
Marina Landscape Maintenance (Stockton, CA) |
$ 2,928,043.69 |
$ 2,869,482.82 |
|
Odyssey Landscape (Lodi, CA) |
No Bid Amount (Non-responsive Bid) |
Not Applicable |
|
Engineer’s Estimate (based on current expenditures) |
$ 1,700,000.00 |
$ 1,700,000.00 |
The project is locally funded and, therefore, requires the use of the Local Employment Ordinance (Stockton Municipal Code (SMC) section 3.68.095), and the Local Business Preference (SMC section 3.68.090). SMC section 3.68.090 gives a five percent bid preference to businesses located within the City of Stockton, and a two percent bid preference to businesses located within San Joaquin County.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works construction projects over $1 million that are bid after the effective date noted above. As this project is for maintenance services, CWTA does not apply.
Al Fresco Landscaping, Inc., the apparent low and responsive bidder, submitted a bid in the amount of $2,692,825.00, which is approximately 58 percent over the engineer’s estimate (based on current expenditures). There are insufficient funds to award a project at this cost. The bid from Marina Landscape Maintenance had multiple irregularities with math extension errors. The corrected amount was $2,928,043.69; approximately 72 percent over the engineer’s estimate. The bid from Odyssey was non-responsive as no bid cost could be determined from the missing values and bid forms.
Staff recommends Council approve a motion to reject all bids received. Stockton Municipal Code (SMC) section 3.68.160(B) provides that the City Council shall award a contract to the lowest and best regular responsible bidder, or reject all bids. It has been determined that rejecting the current bids and re-advertising the project with revised specifications and additional outreach could possibly result in a more favorable outcome.
Staff surveyed Al Fresco Landscaping, Inc. as well as other contractors who expressed an interest in the project but did not submit a bid, to understand the reasons for the low participation and higher than expected bid result. Some factors have been attributed to the escalating costs for equipment and personnel, and upfront equipment investment necessary for the maintenance services. The contractors provided suggestions regarding frequencies, scope, and contingencies. Staff reviewed these suggestions and evaluated other cost saving opportunities. Rejecting the current bids and re-advertising the project with revised specifications will result in more service level options, including the potential of reduced services, for Council to consider. Staff will also perform additional outreach to achieve more favorable bid outcomes. It is recommended that Council approve a motion to reject all the bids received.
As the existing contract with Odyssey expires December 31, 2017, staff intends to advertise for bids and recommend a contract award in December. In addition to developing more service level options and conducting outreach improve bid results, staff will also have more time to evaluate funding options.
FINANCIAL SUMMARY
There is sufficient funding in the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 Annual Budget account (072-6900-590), and in the Public Works Park Maintenance General Fund account (010-3070-590) to rebid the project. Given the original bid results, staff will also develop funding option alternatives in addition to service level reductions for Council consideration in December.
Attachment A - Project Bid Abstract