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APPROVE MOTION TO AWARD A SERVICE CONTRACT FOR THE STREETSCAPE LANDSCAPE MAINTENANCE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Award a three-year Service Contract not to exceed the amount of $1,913,125 annually, for a total of $5,739,375 to Al Fresco Landscaping, Inc. of Hollister, CA, for the Streetscape Landscape Maintenance, Project No. OM-19-010.
2. Authorize the City Manager to execute up to two one-year extensions to this Service Contract, at an annual cost of $1,913,125, for a cumulative five-year contract total not to exceed the amount of $9,565,625.
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 City contracts for landscape maintenance and weed control services along streets, public open spaces, and City facilities throughout the City of Stockton. The previous streetscape landscape maintenance contract expired at the end of 2018 and had an annual cost of approximately $1.2 million.
On April 26, 2018, the City advertised the Streetscape Landscape Maintenance, Project No. OM-18-082, for bids. On May 24, 2018, the City received three bids for the project. 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 were insufficient funds to award the contract. On October 6, 2018, Council approved a motion to reject all bids.
The project was re-advertised as Project No. OM-19-010 with a restructured bid schedule that included a significantly reduced base bid scope of maintenance services, essential weed control, and eight additive bid alternatives. The additive bid alternatives are optional increases in service that can be implemented if budget is available. Addition of all of the alternatives would provide a level of maintenance equivalent to the baseline services in the previous contract.
The City received two bids for this project on November 29, 2018. Al Fresco Landscaping, Inc. submitted the apparent low base bid of $1,777,125, plus additive bid alternatives in the amount of $294,700 for a total combined cost of $2,071,825. The base bid, excluding bid alternatives, is an approximately 22 percent reduction from the previous lowest responsive bid. The recommended total award amount (including additive bid alternates for litter and leaf removal at back-up walls, alley weed control, and limited tree maintenance in Assessment Districts) is $1,913,125 annually, for a total of $5,739,375 over the three-year contract. There are two optional one-year extensions available in this contract at the same annual cost, for a cumulative five-year contract total in the amount of $9,565,625.
Annual funding in the amount of approximately $1.2 million has been allocated for the services provided by this contract. Available unencumbered funds are sufficient to fund the recommended contract through the remainder of Fiscal Year (FY) 2018-19. Additional funding of approximately $680,000 beyond FY 2018-19 allocations will be required for future years to maintain recommended service levels. Future funding allocations and/or service reductions will be addressed during the FY 2019-20 operating budget process.
DISCUSSION
Background
The City utilizes a multi-year service contract to maintain streetscape landscaping. This includes all arterial road tree wells, median landscaping, back-up wall landscaping, public building landscaping (including PD Main, Teen Center, City Hall, Civic Center, and all Libraries), six public parking lots, and undeveloped public rights-of-way. All non-park landscaping within the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 is also maintained by the same contract. Contracted maintenance services primarily include litter and leaf collection, shrub, ground cover, and tree pruning, irrigation and vandalism repairs, pump maintenance, and weed removal and control.
The previous streetscape landscape maintenance contract with Odyssey Environmental Services, Inc., Project No. OM-16-002, expired December 31, 2018. The cost under the previous maintenance contract was approximately $1.2 million annually.
The landscape maintenance contract is funded from the General Fund (both Public Works and Community Services Department allocations) and the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2, where funding comes from the annual landscape maintenance assessment in the various zones.
On April 26, 2018, the City advertised for bids to provide streetscape landscape maintenance services (Project No. OM-18-082), and on May 24, 2018, the City received three bids. All bids exceeded the engineer’s estimate and available budget for the services. The bids received were submitted by Odyssey Landscape ($2,264,960), Al Fresco Landscaping, Inc. ($2,274,900), and Brightview Landscape Services ($2,481,976). The project had been bid with full landscape maintenance services as one base bid, and the bid items did not offer the opportunity to reduce services to reduce cost.
On October 16, 2018, Council approved Motion No. 2018-10-16-1110 to reject all bids for Project No. OM-18-082.
Present Situation
On October 4, 2018, the project was re-advertised as Streetscape Landscape Maintenance, Project No. OM-19-010. This new Service Contract includes a restructured base bid and eight additive bid alternates. The base bid provides limited services that include maintenance of plants, irrigation, weed control, graffiti, and litter abatement for the landscaped areas where maintenance is funded by the City’s General Fund and provides full landscape maintenance services for the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 funded areas. The base bid also provides full weed control on unlandscaped areas, vacant areas, and tree wells. An incidental repair allowance and labor allowance are included in the base bid for general repairs, special requests, and vandalism-related repairs.
For the City’s General Fund areas to receive the remaining services that have historically been provided, additive alternate bid items will need to be approved with the base bid award. These additive alternate bid items include the following services: trash and debris collection at back-up walls, routine and heavy seasonal tree and shrub pruning, tree well maintenance, and alley trash and weed removal.
Bids for Project No. OM-19-010 were opened November 29, 2018. The bid from Al Fresco Landscaping, Inc. of Hollister, CA, in the amount of $1,777,125 annually, was the apparent low bid. Odyssey Landscape of Lodi, CA, submitted a corrected bid of $2,952,486. After applying a two percent local business preference, Odyssey Landscape’s final base bid amount was $2,893,436.28.
BID SUMMARY AL FRESCO ODYSSEY
LANDSCAPING, INC. LANDSCAPE
(Hollister, CA) (Lodi, CA)
BASE BID AMOUNT $1,777,125.00 $2,952,486.00
ADJUSTED BID AMOUNT $1,777,125.00 $2,893,436.28
(2% County Local Preference)
ENGINEER’S ESTIMATE $2,000,000.00 $2,000,000.00
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 within the City of Stockton, and a two percent bid preference to businesses located within San Joaquin County. Odyssey Landscape operates a business located in Lodi, CA, 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. Al Fresco Landscaping, Inc. submitted the apparent responsive lowest bid and has been determined to be the most responsive and responsible bidder for the award of a contract pursuant to Stockton Municipal Code section 3.68.160 (B), with a base bid of $1,777,125. Additive bid alternatives for the lowest base bid are as follows:
ITEM ANNUAL COST DESCRIPTION
Bid Alternate 1 $36,000.00 Back-Up Walls - trash and leaf removal
Bid Alternate 2 $72,000.00 Tree Wells - trimming
Bid Alternate 3 $24,000.00 Tree Wells - sucker removal
Bid Alternate 4 $24,000.00 Tree Wells - trash removal
Bid Alternate 5 $60,000.00 Alleys - weed control
Bid Alternate 6 $35,000.00 Heavy Winter Pruning for all
Assessment District service areas
Bid Alternate 7 $22,000.00 Heavy Winter Pruning for all General
Fund service areas
Bid Alternate 8.a $5,000.00 Tree Services - raising at Assessment
District service areas
Bid Alternate 8.b $5,000.00 Tree Services - raising at General Fund
service areas
Bid Alternate 8.c $3,200.00 Tree Services - raising at all back-up
wall service areas
Bid Alternate 8.d $5,000.00 Tree Services - raising at all weed
control service areas
Bid Alternate 8.e $3,500.00 Tree Services - raising at all weed
control - Fire Marshall standards
service areas
Staff recommends inclusion of bid alternates 1, 5, 6, and 8a. Items 6 and 8a are in Assessment Districts and funding is available. Items 1 and 5 are in General Fund service areas. These two items provide debris and weed removal services that have an immediate impact on community appearance. Eliminating these services would likely generate public notice and service requests. The recommended total award amount, including the additive bid alternates, to Al Fresco Landscaping, Inc., is $1,913,125 annually, for a total of $5,739,375 over the three-year contract. There are two optional one-year extensions available in this contract at the same annual cost, for a cumulative five-year contract total in the amount of $9,565,625.
Annual funding in the amount of approximately $1.2 million has been allocated for the services provided by this contract. Funding is from the General Fund and Assessment Districts. The unencumbered balance in these accounts is sufficient to fund the recommended contract award for the balance of FY 2018-19. Additional funding will be required for future years, even if additive bid alternatives are not utilized. A portion of this additional cost can be funded from Assessment Districts in future fiscal years; allocation of the remaining approximately $600,000 will be addressed during the FY 2019-20 budget process. Suspension of certain maintenance functions such as debris removal, repairs, and irrigation will be required to reduce expenditures if funding is not available.
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 that are not included pursuant to a construction contract, the CWTA does not apply.
FINANCIAL SUMMARY
The recommended contract can be funded for the remainder of FY 2018-19 (March 1 - June 30, 2019) using existing budget appropriations, and department budget shifts and savings:
Current Required Additional
Fund Unencumbered for FY 18-19 Required
Public Works
General Fund $258,240 $382,000 $123,760
(010-3070-590)
LMD $328,870 $273,341 $0
(072-6900-590)
Community Services $9,871 $9,871 $0
General Fund (041)
Totals $596,981 $665,212 $123,760
There is an impact to the City’s General Fund and the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 Annual Budget as a result of taking the recommended actions.
The required additional $123,760 can be funded from the current Parks Operating budget based on estimated savings and minor service level adjustments.
Additional funding of approximately $680,000 beyond FY 2018-19 allocations will be required for future years to maintain recommended service levels. Future funding allocations and/or service reductions will be addressed during the FY 2019-20 operating budget process.
Attachment A - Service Contract with Al Fresco Landscaping, Inc.