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Home My WebLink AboutC25740 Landscape Maintenance Area LMA 6 909-06CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: Reject All Bids for Contract No. C25740, Authorize the City Manager to Extend the Existing Contract No. C23630 on a Month -to -Month Basis for Landscape Maintenance Area No. 6 to Vintage Associates, Inc. of Bermuda Dunes, California (906-06) and Direct Staff to Pursue Professional Horticultural Services for LMA 6 through the RFQ Process SUBMITTED BY: Mark Greenwood, P.E. Director of Public Works DATE: October 12, 2006 CONTENTS: Letter Vicinity Map Recommendation: By minute motion: 1. Reject all bids for Contract No. C25740 for Landscape Maintenance Area No. 6; 2. Authorize the City Manager to extend the existing Contract No. C23630 with Vintage Associates, Inc. of Bermuda Dunes, California for Landscape Maintenance Area 6 on a month -to -month basis for up to six months; 3. Authorize a 5% monthly price increase for Contract No. C23630; and 4. Direct staff to pursue professional horticultural service for LMA 6 through the RFQ process. Discussion: On September 1, 2006 the City Clerk advertised and called for bids for Landscape Maintenance Area No. 6. Bids were opened and read aloud on Monday, September 25, 2006 at 10:00 am with the following results: 1. Greenscape Landscape, Inc. (Temecula, CA) 2. PWLC II, Inc. (Palm Springs, CA) 3. Sunflower Landscape, Inc (Indio, CA) 4. Garza Landscaping, Inc. (Indio, CA) 5. Vintage Associates, Inc. (Bermuda Dunes, CA) 6. R.Z. Landscape (Indio, CA) $ 56,800.00 $ 69,204.00 $ 78,000.00 $ 79,800.00 $ 98,400.00 $557,520.00 G:\PubWorks\PROJECTS\906-XX LMA 6\2006-07\Staff Reports\Extend Contract LMA6 906-06 .doc Extend C2363O Landscape Maintenance Area No. 6 to Vintage Associates, Inc. Page 2 of 3 October 12, 2006 LMA 6 is comprised of perimeter landscape and Desert Willow Drive at the City's Desert Willow Golf Resort. These landscape areas are significant to the City and require a higher standard of maintenance than typical for the industry; however, with the City's policy requiring the contract to be bid per Public Works code, it has historically been awarded to the lowest bidder. It has been staffs experience that even contractors that have the horticultural skills to achieve the required standards do not adequately provide these services because of their low bid. Staff has attempted to overcome these issues by using a specialized contract and by providing a higher level of supervision of the contractor; unfortunately, staff efforts have only been met with limited success. Reviewing the bid documents from this perspective, staff comments are as follows: 1. In their bid documents, the low bidder, Greenscape Landscape, Inc., did not indicate any desert landscape experience. In addition, their bid was $1,368.00 per month less than the present contract cost. It is staffs opinion that their bid is unreasonably low. 2. The next low bidder, PWLC II, presently holds the contract for LMA 4 which is comprised of street median landscaping in the east and north sections of the City. As of this date, their performance has not been completely acceptable. 3. The next two bidders, Garza Landscaping, Inc. and Sunflower Landscape, have both had problems meeting contract standards, presently and in the past. 4. Vintage Landscape is the present contract holder for LMA 6. Their bid was 26 percent higher than their present contract price. This indicates that the present contract was underpriced. Staff has contacted Vintage Landscape and they are willing to continue the present contract on a month -to -month basis for no more than six months; they are requesting a five percent increase of the existing monthly fee, which would bring the total to $6,406.05. Funds are available in account 241-4195-495-3320. Therefore, staff recommends that, by minute motion, City Council reject all bids for Contract No. C25740 for Landscape Maintenance Area No. 6, authorize the City Manager to extend the existing Contract No. C23630 with Vintage Landscape of Bermuda Dunes, California for Landscape Maintenance Services G:1PubWorkslPROJECTS1906-)0( LMA 612006-O71Staff Reports1Extend Contract LMA6 906-06 doc Extend C23630 Landscape Maintenance Area No. 6 to Vintage Associates, Inc. Page 3 of 3 October 12, 2006 on Landscape Maintenance Area 6 on a month -to -month basis for up to six months, authorize a five percent monthly price increase in Contract No. C23630, and direct staff to pursue professional horticultural services for LMA 6 through the RFQ process. Prepared By: Approval: Homer Cray ACM for D Carlos Orteg City Manager /hsk/bg pment Services Department He Mark Gre-nwood, P.E. Director of Public Works Paul Gibson Finance Director CITY. COUNCIL ,ACTION: APPROVED v/ DENIED RECEIVED OTHER MEETING DATE J(9 — AYES: ral, }Qiit1, �pfP4-�}, c �Pecj(1<<f1Y) NOES: �Vl ABSENT: ABSTAIN: VERIFIED BY:/2,1).Kirykir Original on File witiat City Clerk's Office G:1Pub WorkslStaf Reportsl2006\October 12110 Extend Contract to Vintage 906-061Extend Contract LMA6 906-06. doc 09/26/2006 16:44 7607723674 VINTAGE ASSOCIATES PAGE 02 � �I�ITTAGE ASSUCIATES, INC. September 26, 2006 Spencer Knight City of Palm Desert 73-510 Fr�ed Waring D�ive Palm Desert, CA 92260-2578 RE� Contract No. C23630 — Landscape Maintenance Area No. 6(Project No. 906XX) Dear Sp�ncer, We would like to express our thanks and appreciation to The City of Palm Desert for their cooperation and suppoR �ver the last year. This year we have been chatlenged to make the most af our aperating efficiencies as we continue to experience escalating operating and personnet rel�ted expenses_ We are experiencing increases in almost atl areas with the most signlficant inereases in: 1) labor, 2) fuel cost and 3) insurance. Our average houriy labor (gardeners, mowing and irrlgation) rate increased 59�o from $8.43/hour in 2005 to $8.84/hour in 20�6. Our salaries for foremen and supervisors increased a simi{ar amount. The increases are a resuEt af the tight job market in the Caache{la Valley, tn additian, just recentl�r passed +s the state's minimum wage �ate that wiH increase .75 cents an hour on January � 2007 and increase another .50 cents on January 1�, 2008. Fuel costs have increased 50% over I�st year. Our general liability insurance incre�sed 50°r6 over tast year partiaily due to our inaustry factors. Heaith insurance premiums increased over 1 D% and we improved our medic�l coverage this year for a group of our senior houriy employees which increased our cost total health insuranGe cost 50°10_ Vintage Associates is willing to continue the iandscape mairrtenance of Area 6 and extend the tenn of th�s cantraot up to 8 months from the current te�minatan date, provided the cu�rent monthly cost is increased f�ve percent (5%) in order to help caver these expenditures. We v�lue your business and th2�nk you in advance for your consideration. Sinc�,p�rely, r/ f � w , r �' � `F�` uHahy anager of Business Development �'REE RTTE 1� VINTAGE LANDSCAPE �► �'URFSCAPES � VINTAGE NURSFRY � SCNMIDT SERVICE5 � �o�re „Avuv unnn �tFRtuTTnA ntTNFS, CA 92203 PHdNE (760) 772-3673 �AX (760) 772-3674 L a n d s c a p e L a n d s c a p e C o n t r a c t A r e a sContract A r e a s C o n t r a c t A r e a 6Contract A r e a 6 0 1,500 3,000 Feet