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HomeMy WebLinkAbout16 Purchase of Grass SeedMEETING DATE: PREPARED BY: REQUEST: STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT June 10, 2021 Randy Chavez, Landscape Supervisor Bertha A. Gonzalez, Accounting Specialist Delegate to the City Manager Authorization to Approve the Purchase of 160,000 pounds of grass seed from the lowest, responsible bidder for Fiscal Year 2021 /22 (Project No. 921-21). Recommendation By Minute Motion: 1. Delegate to the City Manager authorization to approve the purchase of 160,000 pounds of grass seed for the City and the Desert Willow Golf Resort; and, 2. Authorize the City Manager to execute the agreement. Funds for the City's portion are available in General Fund Account No. 1104610-4332001, R/M Civic Center Park, 1104610-4337100, R/M Tri-Cities Sport Facility, 1104611- 4332001, R/M Parks, 1104614-4337001, R/M Medians, and 2764374-4332100, R/M Haystack for the City's portion. The Desert Willow Corporation will fund the balance. Background Analysis The City of Palm Desert (City) and Desert Willow Golf Resort (DWGR) purchase grass seed on an annual basis to overseed the City's parks, sports fields, and greenbelts, and the DWGR's Firecliff and Mountain View golf courses. The City and DWGR combine their seed orders to maximize cost savings. Seed growers typically release their seed prices to suppliers the first week of July for the upcoming overseeding season. The City and DWGR staff have been in contact with various seed suppliers and the consensus is that there will be fewer product available this season compared to previous years since the seed supply was exhausted last year and there was no carry over to supplement this year's demand. For this reason, suppliers are forecasting a 10% decrease in supply this season. The City and DWGR staff discussed the option of receiving bids before the first week of July to meet DWGR's delivery deadline of September 17, 2021. The cost of seed fluctuates each year; however, by receiving bids early, there is a likelihood the cost per pound will be as much as thirty cents more than the projected cost since vendors will not know what the upcoming seed prices will be. This year, the forecast is that rye seed prices will be approximately $1.65 to $1.75 per pound due to reduced supply. June 10, 2021 - Staff Report Delegate City Manager to Approve the Purchase of Grass Seed Page 2 of 2 Staff anticipates the seed cost to be significantly higher this year compared to what was paid in previous years. The following table indicates the seed cost over the past three years and the estimated cost for next fiscal year: Seed 2018 2019 2020 2021* Perennial rye grass seed blend $0.955 $0.89 $1.04 $1.75 Perennial rye grass seed, Apron $1.015 $0.97 $1.14 $2.00 Poa Trivialis grass seed $2.73 $2.85 $3.20 $4.00 Year DWGR Cost City Cost Total 2018** $92,578.80 $32,928.40 $125,507.20 2019 $137,301.20 $32,127.20 $169,428.40 2020 $149,177.40 $35,859.20 $189,039.60 2021* $230,500.00 $59,500.00 $290,000.00 *Estimate "Only 118,000 pounds ordered due to accumulated inventory Staff has advertised through PlanetBids a Request for Quotes with a due date of July 9, 2021. However, due to the City Council's summer meeting schedule, the decreased seed inventory, time needed to execute the agreement, and delivery schedule deadline, staff requests that the City Council delegate to the City Manager authorization to approve the purchase of 160,000 pounds of grass seed to the lowest, responsible bidder. This will help secure the lowest possible price and the seed quantity needed for a successful overseeding season. Fiscal Analysis The City will use 32,000 pounds of the grass seed for an estimated amount of $60,000, including tax and shipping. Desert Willow Golf Resort will use the remaining seed (128,000 pounds). Staff accounted for the cost increase and included funds for this purchase in the operating budget for Fiscal Year 2021/22. LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT REVIEW CITY MANAGER N/A .Andy Firestine Wt. 711001•& .Andy Firestine Robert W. Hargreaves Andy Firestine Janet M. Moore City Attorney Assistant City Manager Director of Finance City Manager, Todd Hileman: Andy Firestine Assistant City Manager L. Todd i'- Lmt.aw CTTY COIJNCILA£TION ' D_- RECEIVED OTHER MEETING DATE l>2 l U () AYES:t{1'rIjTo►1!}th!_ai��!Petztryle/lLiinfanb1161+K 11v NOES: ABSENT: NVle ABSTAIN. _ f 17Y- 1P .-- VERIFIED BY. �► I C r C Original on File with City Clerk's Office