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02-01-1994 - Landscape Maintenance Contract City Spec. #CC-94-4 West Covina/Los Angeles County Civic Center. City of West Covina Memorandum To CITY MANAGER AND CITY COUNCIL AGENDAFROM PATRICK J. GLOVER ITEM NO. C-7a MAINTENANCE DIRECTOR SUBJECT: DATE February 1, 1994 AWARD OF BID/LANDSCAPE MAINTENANCE CONTRACT CITY SPECIFICATION NO. CC-94-4 WEST COVINA/LOS ANGELES COUNTY CIVIC CENTER SUMMARY: This five year contract provides for the maintenance of landscaping, hardscaping and sprinkler systems of the . West Covina/Los Angeles County Civic Center. Also included in this contract is mandatory green waste recycling. BACKGROUND Creative Landscaping, Inc. currently maintains the Civic Center under City Specifications No. CC-89-4 at an annual cost of $84,208.56. This contract expires on March 31, 1994. Bids for a five year landscape maintenance contract were opened in the City Clerk's office on Tuesday, January. 11, 1994 at 10:00 am. Three bids were received and reviewed for errors. Two of the three bids received were valid bids and one was determined to be an invalid bid proposal. Ten bid packets had been received by prospective bidders and the contract was advertised in the San Gabriel Valley Tribune on December 16, 1993 and again on December 23, 1993. Eight companies attended the bidders meeting and three companies bid on the five year agreement as follows: BID AMOUNT ANNUAL CONTRACT PRICE MCR Landscaping $318,000.00 $ 63,600.00 (Insufficient Bid Bond) Azteca Landscape $364,999.80 $ 72,999.96 Landscape West, Inc. $384,000.00 $ 76,800.00 ANALYSIS The current annual cost of this contract service provided by Creative Landscaping, Inc. is, $84,208.56. The responsive low bid by Azteca Landscape for the new contract is a 14%decrease in the annual cost. However, the insufficient. bid bond of MCR Landscaping was due to confusion about the contract language, for bid bond requirements. MCR apparently misinterpreted the bond requirement of 10% of the five year aggregate amount with the annual contract bid amount. Staff believes that the, language could be re-evaluated and changed for clarification. This will provide the opportunity to attract additional bidders and will more than likely result in a lower contract bid. Contractors were bidding on a five-year contract. This contract has no escalator clause and does not provide for annual cost of living increases. However, there is a cancellation clause allowing termination of the contract by either party upon thirty days written notice. FISCAL IMPACT Sufficient funds have been allocated in the 93-94 Citywide Lighting and Maintenance District budget,to cover the cost of this service contract. ALTERNATIVES Reject the low bid of MCR Landscaping, Inc. due to an insufficient bid bond and accept the responsive low bid of Azteca Landscape of Pomona. Since the second bid .is $47,000 higher than the unresponsive low bid, it is quite, probable that re -bidding. the contract will result in a price less than the second low bidder's proposal. . RECOMMENDATION Staff recommends that the City Council reject all bids and readvertise for new bid proposals. This would allow staff the opportunity to re-evaluate the bid proposal language and bonding requirements and further produce the opportunity to attract additional bidders for this maintenance contract. This will more than likely result in a lower contract bid.. APPROVED ell v. Thomas lt� Works Division Manager/City Engineer trick J. Glo Maintenance Director 802-94