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REJECT BIDS FOR THE STREETSCAPE LANDSCAPE MAINTENANCE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion rejecting all bids received for the Streetscape Landscape Maintenance, Project No. OM-18-082, 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 Landscape for streetscape landscape maintenance services throughout Stockton expires December 31, 2018.
The City advertised the Streetscape Landscape Maintenance project for bids on April 26, 2018. On May 24, 2018, the City received three bids for this project (Attachment A). Odyssey Landscape, the apparent low and responsive bidder, submitted a bid in the amount of $2,264,960. Although an increase in the contract price was anticipated, the low bid was higher than expected and there are insufficient funds to award the contract.
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.
Rejecting the current bids and re-advertising the project with revised specifications to provide service level options will enable award of a final contract that matches the available budget. It is recommended that Council approve a motion to reject all the bids received.
DISCUSSION
Background
Project No. OM-18-082 provides for streetscape landscape maintenance, weed control, and tree services for areas such as street medians, areas between curb and fence, tree wells, and open space areas. Maintenance services include: regular mowing and edging of the turf, irrigation system adjustments, shrub trimming, emptying trash cans, trash collection, and seasonal leaf pick-up. These maintenance services are funded by the General Fund and various zones of the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2.
The City’s current streetscape maintenance contractor, Odyssey Landscape, has not requested an optional contract extension for calendar year 2019. The annual cost at current contract rates is $1,193,962. Odyssey Landscape has asserted that they are unable to provide the specified services within the compensation established under this contract.
Present Situation
On April 26, 2018, the Streetscape Landscape Maintenance project was advertised for bids. On May 24, 2018, three bids were received with the following results:
COMPANY NAME BID AMOUNT
Odyssey Landscape (Lodi, CA) $2,264,960
Al Fresco Landscaping, Inc. (Hollister, CA) $2,274,900
Brightview Landscape Services (Stockton, CA) $2,481,976
Engineer’s Estimate $2,000,000
The Local Business Preference Ordinance, pursuant to SMC section 3.68.090, applies to this contract. This provides a two percent preference on bidders who have a physical business location within the boundaries of San Joaquin County, and a five percent preference on bidders who have a physical business location within the boundaries of Stockton. Application of the bid preference did not change the bid order. The Local Employment Ordinance, SMC section 3.68.095, applies to this contract.
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 that date. The CWTA was not applied to this project as this project is for maintenance services.
Odyssey Landscape, the apparent low and responsive bidder, submitted a bid in the amount of $2,264,960, which is approximately 13 percent over the engineer’s estimate. There are insufficient funds to award the project. 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.
Regional municipalities, such as San Jose, Antioch, Lodi, and Manteca, have also experienced higher contractor bids on landscape maintenance projects. Staff contacted several maintenance contractors who said the increases in costs are primarily attributed to escalating labor and equipment costs. In consideration of the available budget for this work, staff recommends Council approve a motion to reject all bids received.
The project will be re-advertised with a revised specification to include minimum baseline services with additive bid service levels that will enable award of a final contract that matches the available budget.
FINANCIAL SUMMARY
The recommended action has no financial impact. There is sufficient funds in the FY 2018-19 Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 Annual Budget (072-6900-590) which was approved on June 5, 2018, by Resolution No. 2018-06-05-1504 and in the General Fund parks account (010-3070-590) for the rebidding process.
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Bid Abstract