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01-04-2000 - Landscape Maintenance District #'s 6 & 7 - Project #MD-6 & 7-00-1 - Award of BidCity of West Covina Memorandum TO: City Manager and. City Council AGENDA FROM:. Jeffrey .W. Collier, Director, ITEM NO.-' B-6c Public Services Department DATE January 4, 2000 SUBJECT: LANDSCAPE MAINTENANCE DISTRICT NOS. 6 & 7 PROJECT NO. MD .6 & 7-00-1 - AWARD OF BID SUMMARY: This five-year contract provides for the landscape, hardscape, and sprinkler system maintenance .of Maintenance District Nos. 6 and 7.. The low bidder is L & M Diversified Services of Azusa in the amount of $320,110.00. BACKGROUND: The City provides, for the maintenance of landscape, hardscape, and sprinkler systems for Maintenance District Nos. 6 and 7. Maintenance District. No. 6 is located west of Grand Avenue, south of Cameron Avenue. It consists of approximately 87 acres, of which nine is landscaped. Maintenance District No: 7 is located near Hillside Drive and Citrus Street and consists of approximately 24 acres, of which 8 acres are landscaped. On June 21, 1994, the City Council awarded a five -.year landscape maintenance contract for Maintenance. District No. 7 to Aloha Landscape of West Covina in the amount of $37,801 annually ($3,150.09 per month).. The contract was scheduled to expire on August 31, 1999. On August 17, 1999, the City Council approved an extension to the contract with Aloha Landscape for a period not to exceed six months. This extension allowed staff to bid Maintenance District No. 7 in unison with Maintenance District No. 6. The five-year landscape maintenance contract for Maintenance District No. 6 was awarded by the City Council to Landscape West on October 18, 1994 in the amount of_$39,408 annually ($3,284 per month). This five-year contract will expire on December 31, 1999. Staff suggested that by combining the landscape maintenance contracts for Maintenance District No. 6 and 7, the. City could realize additional savings due to the "economy of scale." DISCUSSION: A Notice Inviting Bids was advertised in the SanGabriel Valley Tribune on November 4, and 18, 1999. Eight companies attended a mandatory bidders meeting on Tuesday; November 16, 1999. Bids for the five-year landscape maintenance. contract were opened in the City Clerk's office on Tuesday, November 23, 1999 at 10:00 a.m. . Seven bids were received, reviewed for errors, and determined to be valid proposals as follows: 'eCyO. T3 CTO ID, NX ',NT . v 1. L & M Diversified Services Azusa $ 320,110.00 _ $ 64,022.00 2. Azteca Landscape Pomona $ 326,750.00 $ 65,350.00 3. Landscape West Anaheim $ 369,065.00 $ 73,813.00 4. Plant Control Santa Ana $513,150.00 $102,630.00 5. Aloha Landscape Inc. West Covina $ 538,673.75 , $ 107,734.75 6. Mariposa Horticultural Enterprise Irwindale $ 581,673.75 $ 116,334.75 7. L. Barrios & Associates San Dimas $ 665,040.00 $ 133,008.00 MD # 6 & 7 — Award of Bid Page 2 — January 4, 2000 1) MD#6 — 9 acres manufactured landscape, 78 acres natural open space. 2) 1NJD#7 — 8, acres manufactured landscape, 16 acres natural open space. 3) * MD#7 - New area, %2 acre manufactured slope east of Westridge Road. 4) * MD#7 - New area, 6 1/4 acres manufactured slope and open space area, south of Castle Rock Court. 5) * Unit cost per 1,000 square feet to maintain new landscape areas added to this agreement. 6) * Unit cost per 1,000 square feet to weed abate natural open space area. *These items were added for future developments. For bidding purposes, I $ 3,711.00 $ 1,155.06 $ 64.06 $ 400..00 $ 44,532.00 $ 1300.00 $ .768.00 $ 4,800 $ 35.00 W tri . were included in the total amount bid. Annual Contract Amount: $ 64,022.00. Total (60 Month) Contract Amount: $ 320,110.00 '.L & M Diversified Services has never provided landscape maintenance services to the City. However, they have 13 years of landscape maintenance experience and are currently, providing these services to the cities Azusa, Ventura, and Ontario, and tree trimming for Los Angeles County Public Works Department. Staff contacted these agencies for references , and were told that L & M are "extremelv-resnonsive." "very thorough." "professional_" and "customer oriented_ FISCAL IMPACT: The low bid submitted by L & M Diversified Services included $44,532 annually for Maintenance District No. 6 and $19,490 annually for Maintenance District No. 7. These costs represent a 12 percent increase for Maintenance District No. 6 and 49 percent decrease for Maintenance District No. 7. It appears from Public Services staff estimates that there will be sufficient funds available in Maintenance District No. 6 to cover the costs of this service contract only until the year 2003. There are, however, sufficient funds to cover Maintenance District No. 7 through the entire contract period: Staff anticipates funding for Maintenance District No .7 will be depleted by the year. 2005. Thus, assessment rates will need to be evaluated and adjusted should the City Council determine that a five-year contract. is appropriate to ensure that the projected revenues are sufficient to cover projected costs. Public Services and Finance staff are in the process of preparing a detailed fiscal. analysis of all assessment districts. This report will be presented to the City Council in the near future. ALTERNATIVES: Reject all bids and, re -advertise for new bid proposals. Staff is uncertain whether this alternative would produce any significant savings and it would involve additional costs for the bidding process. RECOMMENDATION: It is recommended that the City Council accept the bid of L & M Diversified Services of Azusa for a five-year contract in the amount of $320,110.00 ($64,022.00 annually) including the additional areas to be added in Maintenance District No. 7 and authorize the Mayor and City Clerk to execute. an agreement for the work to be performed.