title
APPROVE RESOLUTION TO AWARD A SERVICE CONTRACT TO MARINA LANDSCAPE MAINTENANCE FOR PARKS MAINTENANCE AND JANITORIAL
recommended action
RECOMMENDATION
It is recommended that the City Council approve a resolution to:
1. Award a three-year Service Contract not to exceed the amount of $2,212,042.08 annually, for a total of $6,636,126.24, to Marina Landscape Maintenance of Stockton, CA, for the Parks Maintenance and Janitorial, Project No. OM-18-062.
2. Authorize the City Manager to execute up to four one-year extensions to this contract, at an annual cost of $2,267,343.13, $2,324,026.71, $2,382,127.38, and $2,441,680.56, respectively, for a cumulative seven-year contract total not to exceed the amount of $16,051,304.02.
3. Amend the Fiscal Year 2017-18 budget to increase expenditure appropriations as follows:
A. Increase the Community Services Department’s Strong Communities fund by $500,000.
B. Increase the Landscape Maintenance District budgets by $91,703.
C. Increase the Economic Development’s Boat Launch operating budget by $1,529 for maintenance of Buckley, Morelli, and Louis Park boat launch facilities.
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 resolution.
body
Summary
The City contracts for maintenance services at all City parks. The existing contract with Odyssey Environmental Services, Inc. (Odyssey) for landscape and janitorial maintenance services at 66 City of Stockton park sites expires on December 31, 2017. The proposed resolution would authorize a contract for Park Maintenance and Janitorial service, and make the necessary budget appropriations to fund the contract.
The current contract has an annual cost of approximately $1,325,000, including repair contingencies. This price is relatively unchanged from the initial contract, awarded in 2009. Increases in operating costs due to the improving economy and inflation make it difficult for Odyssey to provide adequate service at current compensation rates. Odyssey informed the City that extension of the current contract is not an option. Staff reviewed the baseline services with the goal of improving the overall appearance and functionality of the City’s parks, and prepared an updated bid package.
On August 24, 2017, the City received three bids for maintenance and janitorial services for Project No. OM-18-010. Two of the bids significantly exceeded the engineer’s estimate and available budget, and one bid was non-responsive. On October 17, 2017, Council approved a motion to reject all bids. The project was rebid as Project No. OM-18-062 with a restructured bid schedule that included a base bid and eleven deductive bid alternatives. The deductive bid alternatives are optional reductions in service that can be implemented if baseline costs are not within the available budget. The deductive bid alternatives are not specific to fund source, and service reductions apply to all parks in the contract.
After the rebid, the City received two bids for this project on October 26, 2017. Marina Landscape Maintenance submitted the apparent low base bid of $2,443,796.08. This bid yielded an approximate 9% reduction from the previous lowest responsive bid ($2,692,825.00). However, there are still insufficient funds to award the base contract.
Three of the deductive bid alternatives are recommended to lower the cost of the contract. These services reductions are not projected to have a significant negative effect on City park facilities. It is recommended deductive bid alternates G, H, and K be included with the base bid as follows:
|
BASE BID |
$2,443,796.08 |
|
|
Bid Alternate G |
- $25,750.00 |
Deduct park turf aeration (excludes sports fields) |
|
Bid Alternate H |
- $137,712.00 |
Deduct park turf edging (excludes sports fields) |
|
Bid Alternate K |
- $68,292.00 |
Reduce weekly Nov. & Mar. mowing to bi-weekly |
|
TOTAL AWARD |
$2,212,042.08 |
|
The recommended total award amount, including deductive bid alternates, to Marina Landscape Maintenance is $2,212,042.08 annually, for a total of $6,636,126.24 over the three-year contract.
Staff completed a thorough review of City expenditure data, current available annual funding for the services provided by this contract is approximately $1.6 million. Anticipated salary savings and other efficiencies increase this amount to approximately $1.7 million. Additional funding is required to award the contract, even if all deductions are utilized.
Award of the recommended contract requires an additional $500,000. Staff recommends that this amount be allocated from the Strong Communities fund to ensure parks are adequately maintained to support recreational activities. Staff recommends Council award a Service Contract to Marina Landscape Maintenance in the amount of $6,636,126.24.
There are four one-year extensions available in this contract with an annual increase of 2.5%. The available extensions are at an annual cost of $2,267,343.13, $2,324,026.71, $2,382,127.38, and $2,441,680.56, respectively, for a cumulative seven-year contract total not to exceed the amount of $16,051,304.02.
After contract award, the 12 parks funded from Landscape Maintenance Assessment Districts will be restored to full service through a contract change order as the Districts have sufficient funds for the baseline bid services.
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 be 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, the contractor 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. In mid-2017, Odyssey advised that the existing contract reimbursement rates were inadequate, and they were not prepared to extend the contract beyond 2017.
The current contract with Odyssey has an annual cost of approximately $1,325,000, including repair contingencies funded from the Public Works General Fund budget, Community Services Recreation Fund budget, Landscape Maintenance District Funds and the Economic Development Boat Launch Fund budget. This price is relatively unchanged from the initial 2009 contract. Increases in overall operating costs due to the improving economy and inflation make it difficult for Odyssey to provide adequate service at current compensation rates. As extension of the contract was not an option, staff reviewed baseline services with the goal of improving overall appearance and functionality of the City’s parks, and prepared an updated bid package.
On August 24, 2017, the City received three bids for maintenance and janitorial services for Project No. OM-18-010. Two of the bids significantly exceeded the engineer’s estimate and available budget, and one bid was non-responsive. The two responsive bids received from Al Fresco Landscaping, Inc., and Marina Landscape Maintenance, were for $2,692,825.00, and $2,928,043.69, respectively.
On October 17, 2017, Council approved a motion to reject all bids for Project No. OM-18-010.
Present Situation
On October 5, 2017, the project was re-advertised as Project No. OM-18-062 with a restructured bid schedule that included a base bid and eleven deductive bid alternatives. The deductive bid alternatives are optional reductions in service that can be included with the base bid if there are insufficient funds for baseline costs. The deductive bid alternatives are not specific to fund sources; they are service reductions that apply to parks maintained by General Funds and Landscape Maintenance Districts.
On October 26, 2017, two bids were received with the following results:
|
BID SUMMARY |
Marina Landscape Maintenance (Stockton, CA) |
Al Fresco Landscaping, Inc. (Hollister, CA) |
|
Base Bid Amount |
$2,443,796.08 |
$2,457,997.00 |
|
Adjusted Bid Amount (2% County Local Preference) |
$2,394,920.16 |
$2,457,997.00 |
|
ENGINEER’s ESTIMATE |
$2,500,000.00 |
$2,500,000.00 |
|
Optional Deductive Bid Alternates FROM MARINA LANDSCAPE maintenance BID |
|
|
A. Deduct all daily restroom services (Close Restrooms). |
-$117,900.00 |
|
B. Deduct daily restroom services between Oct 1st through March 31st. |
-$58,956.00 |
|
C. Deduct daily restroom services between Oct 1st through March 31st; Reduce daily restroom services to 4x’s per week between Apr 1st through Sept 30th. |
-$75,432.00 |
|
D. Reduce daily restroom services to 4x’s per week. |
-$35,424.00 |
|
E. Reduce daily restroom services to 4x’s per week between Oct 1st through March 31st. |
-$34,056.00 |
|
F. Deduct park turf fertilization. |
-$5,100.00 |
|
G. Deduct park turf aeration. |
-$25,750.00 |
|
H. Deduct park turf edging. |
-$137,712.00 |
|
I. Reduce daily trash pickup to 4x’s per week. |
-$35,424.00 |
|
J. Reduce daily trash pickup to 4’x per week between Oct 1st through Mar 31st. |
-$26,568.00 |
|
K. Reduce weekly mowing to bi-weekly mowing in Nov and March. |
-$68,292.00 |
The basis of award for the project is the lowest bid received for the base bid. 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 with the City of Stockton, and a two percent bid preference to businesses located within San Joaquin County. Marina Landscape Maintenance operates a business just outside Stockton city limits, and therefore is entitled to a two percent San Joaquin County bid preference. Application of the Local Business Preference has no effect on the bid order. Marina Landscape Maintenance is the apparent low and responsive bidder with a base bid of $2,443,796.08.
There are insufficient funds to award the base bid due to significant increase over the previous contract for services. The FY 2017-18 Adopted Budget included $1.3 million based on the previous contract. The Landscape Maintenance Districts and Boat Launch Fund has sufficient revenues to absorb the increase in the cost of contracted services. Current available annual funding for the services provided by this contract is approximately $1.6 million. Anticipated salary savings and other efficiencies increase this figure to approximately $1.7 million. This funding is inadequate even if all possible service deductions are applied. Increasing the General Fund allocation is not possible as it would reduce the General Fund balance below minimum levels when incorporated into the City’s Long-Range Financial Plan. Use of Strong Communities funds is recommended to ensure that parks are adequately maintained to support recreational activities.
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.
Staff recommends awarding a Service Contract to Marina Landscape Maintenance with deductive bid alternates G, H, and K, for $2,212,042.08 annually, for a total of $6,636,126.24 over the three-year contract. Application of the recommended deductive alternatives is not ideal; but provides a mechanism for minimal baseline services, including keeping restrooms open. The recommended deductive bid alternates are as follows:
|
BASE BID |
$2,443,796.08 |
|
|
Bid Alternate G |
- $25,750.00 |
Deduct park turf aeration (excludes sports fields) |
|
Bid Alternate H |
- $137,712.00 |
Deduct park turf edging (excludes sports fields) |
|
Bid Alternate K |
- $68,292.00 |
Reduce weekly Nov. & Mar. mowing to bi-weekly |
|
TOTAL AWARD |
$2,212,042.08 |
|
Annual funding for parks maintenance and janitorial services is proposed from the following:
|
Public Works |
|
General Fund (010) |
$1,166,765 |
|
Landscape Maintenance District (072) |
$298,853 |
|
Economic Development |
|
Boat Launch Fund (045) |
$10,349 |
|
Community Services |
|
Recreation Fund (044) |
$206,075 |
|
Strong Communities Fund (083) |
$530,000 |
|
Total |
$2,212,042 |
The Strong Communities allocation could be reduced to approximately $375,000 by closing restrooms and reducing trash collection. Staff does not recommend this alternative due to the significant public impact of these service reductions.
There are four one-year extensions available in this contract with an annual increase of 2.5%. The available extensions are at an annual cost of $2,267,343.13, $2,324,026.71, $2,382,127.38, and $2,441,680.56, respectively, for a cumulative seven-year contract total not to exceed the amount of $16,051,304.02.
After contract award, parks funded from Landscape Maintenance Assessment Districts will be restored to full service through a contract change order as Districts have sufficient funds for the baseline bid services.
FINANCIAL SUMMARY
Existing appropriations are not sufficient to fund the $2,212,042.08 cost of the Service Contract with the deductive bid alternates. The table below provides a breakdown of how the contract can be afforded in FY 2017-18 using existing budget appropriation, increased budget appropriations, and department budget savings:
|
Fund/Department |
Budgeted Appropriation |
Recommended Additional Appropriation |
Department Budget Savings |
Total |
|
Public Works |
|
General Fund (010) |
$1,106,765 |
$0 |
$60,000 |
$1,166,765 |
|
Landscape Maintenance Districts (072) |
$298,853 |
$0 |
$0 |
$298,853 |
|
Economic Development |
|
Boat Launch (045) |
$8,820 |
$1,529 |
$0 |
$10,349 |
|
Community Services |
|
Recreation (044) |
$146,075 |
$0 |
$60,000 |
$206,075 |
|
Strong Communities (083) |
$0 |
$500,000 |
$30,000 |
$530,000 |
|
Totals |
$1,560,513 |
$501,529 |
$150,000 |
$2,212,042 |
Staff recommends increasing the expenditure appropriations in the Boat Launch Fund and the Strong Communities Fund as shown in the “Recommended Additional Appropriations” column of the funding table. There are sufficient revenues to fund the cost of the contract. With these appropriations, there is sufficient funding to award the project services with the recommended deductive bid alternates.
There is an impact to the City’s General Fund and Strong Communities fund as a result of taking the recommended actions. Approximately $90,000 of the funding identified for the first year of the contract is of a one-time nature. An ongoing solution for this portion of the contract and future year contract inflation rates will have to be identified during the FY 2018-19 budget development process. The general fund balance can absorb an increase of $90,000 and remain above the 5% minimum fund balance level in the long term.
Strong Communities Funding forecasted a 16-year expenditure plan emphasizing funding operations, adding additional Recreation and Library full time employees, completing existing Capital Improvement Program (CIP) projects, and developing new CIP projects that most closely align with the established fund guiding principles. Strong Communities revenues over the life of the measure are insufficient to fund every need. Considering this, allocating $500,000 annually from Strong Communities towards park maintenance further constrains long-range Recreation specific project priorities and precludes the development of the proposed multi-use Sports Complex.