01-18-2000 - Landscape Maintenance District #'s 6 & 7 - Award of Bid - Clarification for ReconsiderationCity of West Covina
Memorandum.
.:'TO: City Manager and City Council AGENDA
FROM: Jeffrey W. Collier, Director ITEM NO: C-2
Public Services Department DATE January 18, 2000
SUBJECT: LANDSCAPE MAINTENANCE DISTRICT NOS. 6 & 7
AWARD OF BID- CLARIFICATION FOR RECONSIDERATION
SUMMARY:' This five-year contract provides for the landscape, hardscape,' and sprinkler system
maintenance within 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,
and south of Cameron Avenue. It consists of approximately 87 acres, of which nine are
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 CityCouncil 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 conjunction with Maintenance District No. 6. .
The five-year landscape maintenance contract for Maintenance .District No. 6 was awarded by
the, City Council to Landscape_ Weston 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 was
confident that by combining, the.landscape maintenance contracts for Maintenance District No. 6
and 7, the City could realize additional savings due to "economy of scale:
At the City Council meeting on January 4, 2000, concerns 'were raised about the administration and
overhead charges against Maintenance District Nos. 6 and 7 ;and the potential for relieving the City
of the responsibility of landscape maintenance within these Districts. This item is being brought
back to the City, Council in an effort to address Council concerns and to recommend that the City
Council award this cost -saving contract to the low bidder. .
DISCUSSION: -
Bid Results
A Notice Inviting Bids was advertised in the San. Gabriel 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:
NO:;
CONTRACTOR : "
CITY
`BID AMOUNT
60` MONTH'..
ANNUAL -
AMOUNT
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,.,
$ 3699065.00
$ 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
T'
L. Barrios & Associates
San Dimas'
$ 665,040.60
$ 133,008.00
MD # 6 & 7 —Award of Bid
Page 2 — January 18, 2000
ITEM # DESCRIPTION r
) MD#6 - 9 acres manufactured landscape, 78 acres
natural open sace.
2) MD#7 — 8 acres manufactured landscape, 16 acres
natural open sace.
3) * MD#7 - New area, % acre manufactured slope
east of Westrid a Road.
4) , * MD#7 — New area, 6 1/4 acres manufactured slope
and open sace 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 sace area.
3,711.00
$ 1,155.00
$ 64.00
$ 400.00
$ 44,532.00
$ 13,860.00
$ 768.00
$ 4,800 •
$ 35.00
$ 27.00
*These items were added for future developments. For bidding purposes, they 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 of Azusa, Ventura, and Ontario, and tree trimming for the Los Angeles
County Public Works Department. Staff contacted these agencies for references and was told that L
& M is "extremely responsive," "very thorough," "professional," and "customer oriented.
Administration and Overhead
During the January 4, 2000 City Council meeting, concern was raised regarding- administration and
overhead (A&O) charges to the _ Districts. The City removed all Engineering Division costs,
including staff costs and "Engineering -related" A&O.charges, from Maintenance Districts 6 and 7
several years ago. These costs are now funded'from the General Fund, meaning that non -District
residents of West Covina pay for some of the administration costs for these Districts. The Finance
Department continues to charge A&O costs to both Districts to cover the Maintenance Division's
costs. This A&O is charged at a rate'of 3.5% for Maintenance District No. 7 and 6.4% for
Maintenance District No. 6. A&O charges in the current year budget total $6,176 for Maintenance
District No.-6 and $4,010 in Maintenance District No. 7.
If the City were to have Maintenance District Nos. 6 and 7 return to .the prior practice of fully .
paying for their true costs, each District would need to fund the Engineering Division's allocation of
staff and A&O costs for administration of the Districts. The last.time these costs were charged to
the Districts • was in Fiscal Year 1993/94. During that year the budget included Engineering costs
totaling $24,330 for Maintenance District No. 6 and $24,600 for Maintenance District No. 7.
Staff realizes there is Council concern for unwarranted A&O charges and staff, is, committed to
continue to work together in an effort to come to a consensus regarding this issue. The appropriate.;
venue for this discussion is during the budget and District rate setting process. Even in the event
that the City Council were to decide to eliminate"all A&O charges, it would not change the amount
to be paid to a contractor for the maintenance of these areas. Therefore, this issue should not impact
the award of this contract. Instead, consideration should be given to the immediate cost savings that
will be realized to the District (and ratepayers in the Districts) by the award of this lower cost
contract.
Homeowner Responsibility for Future Maintenance .
It was- also suggested during the January, 4, 2000 City Council meeting that consideration be
given to privatizing the responsibility of landscape and open space maintenance within
Maintenance District Nos. 6 and 7 to private homeowner associations (HOA).. That is possible, -
however it would require that. there be unanimous consent by every property owner in the
Districts so that a condominium project could be established to include these common open
space lots: In. addition, if the maintenance responsibility for these areas were reverted to
homeowner responsibility, it is anticipated that the HOA would contract with a property
J
MD "# 6 & 7 — Award of Bid •
Page 3 — January t& 2000 y.
management firm to manage�the, landscape maintenance contract. In that case, the management
firm would include an A&O charge to, the residents as well.
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%
increase for Maintenance District No. 6 and a 49% decrease for Maintenance District No. 7.
Public Services Department staff estimates that there will be, sufficient funds available in
Maintenance District No. 6 to cover the costs of this service contract only through Fiscal Year 2001-
2002 with a rate increase required in Fiscal Year 2002-2003. Estimates indicate that there are
sufficient funds to cover Maintenance District No. 7 through Fiscal Year 2001-2002 with a rate
increase required in Fiscal Year 2002-2003. The projected increase'in assessment rates has been
known since the City Council determined to reduce the reserves for the Districts several years ago."
Public Services and Finance staff are in the process of preparing a detailed, long-term fiscal analysis
of all assessment districts. This report will be presented to the City Council. in the near future.
ALTERNATIVES
If the City Council does not approve this contract the. Council could choose one of the following
options: _
1. 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.
2. Reject all bids and re -advertise for separate bid proposals for Maintenance District No: 6
and Maintenance District No. 7.. Staff believes that the cost of this ,option would result
in a higher cumulative cost.
RECOMMENDATION:
It is recommended that the City Council accept'the.'bid of L & M Diversified Services of Azusa for
a five-year contract for Maintenance District Nos. 6 and 7 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 anagreement for the work to be performed.
Prepared by:
Barbara Briley
Administrative Analyst
Reviewed and approved by:
ey W. Collier L. Corky
lic Services Director Supt. of Maintenance Operations
Margie Tucker
Finance Director
z:Agenda 99-194\BAB