HomeMy WebLinkAboutC31570 - Landscape Maintenance Area 18 - Month to MonthContract No. C31570
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: ACCEPT, WITH CONSEQUENCES, TRUGREEN LANDCARE'S
ELECTION TO NOT ACCEPT THE AWARD OF CONTRACT NO.
C31570 FOR LANDSCAPE MAINTENANCE SERVICES IN LMA
18, AUTHORIZE THE NEGOTIATION OF MONTH -TO -MONTH
LANDSCAPE MAINTENANCE SERVICES WITH HORTECH, INC.,
REJECT ALL PREVIOUS BIDS FOR LMA 18 THAT WERE
CONSIDERED AT THE MAY 24, 2012, CITY COUNCIL MEETING,
AND AUTHORIZE STAFF TO RESTRUCTURE AND REBID THE
CONTRACT FOR LMA 18 (PROJECT NO. 918-12)
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
CONTRACTOR: TruGreen LandCare
1616 Marlborough Ave, Bldg S
Riverside, CA 92507
DATE: June 28, 2012
CONTENTS: Notification Letter of Rejection of Contract
Vicinity Map
Recommendation
By Minute Motion:
1. Accept, with consequences, the election of TruGreen LandCare
(TruGreen) of Riverside, California, to not accept Contract No. C31570
for landscape maintenance services for LMA 18 (Project No. P918-12);
2. Authorize the City Manager to negotiate with Hortech, Inc., of Bermuda
Dunes, California, for month -to -month landscape maintenance
services for LMA 18 for a period of time not to exceed 120 days and at
a cost not to exceed $6,500 per month;
3. Authorize the City Manager to negotiate with Hortech, Inc., of Bermuda
Dunes, California, for the overseeding of turf areas in LMA 18 at a cost
not to exceed $2,500; and
4. Reject all previous bids for LMA 18 that were considered at the May
24, 2012, City Council meeting and direct staff to restructure and rebid
the contract for landscape maintenance services for LMA 18.
Staff Report
TruGreen LandCare Election to Not Accept Contract No. C31570
June 28, 2012
Page 2 of 3
Funds are available in the General Fund Account No. 110-4611-453-3320, R/M
Landscaping Services.
Background
On March 28, 2012, the City Clerk advertised and called for bids for LMA 18 for Fiscal
Years 2012/2013 and 2013/2014, and on April 25, 2012, bids were opened and read
aloud. The successful low bidder was TruGreen LandCare of Riverside, California, and
Contract No. C31570 was awarded to them by the City Council on May 24, 2012.
On June 14, 2012, TruGreen tendered a letter to the City indicating that they had
elected to not accept the award of contract. The letter implied that TruGreen had
significantly underbid the work. Staff contacted the City Attorney and at his request the
bid bond documents were forwarded to him for action. The City Attorney has indicated
that he will pursue TruGreen's bid bond to recover incurred costs due to their decision
not to accept the award of contract.
Landscape maintenance contracts have traditionally been bid as a public works project,
making them subject to the low bidder requirement. This process has resulted in a
chronic problem of underbidding. The result of these underbid contracts is increased
staff time to oversee the maintenance contracts in order to bring the contractor into
compliance with contract specifications, poor quality workmanship, and at times early
termination of contract thus requiring additional staff time to re -bid the contracts.
Staff would like to take this unfortunate event and use it as an opportunity to re -address
the process of bidding landscape maintenance work by using a service based contract.
This type of contract will allow the selection process to be based on price as well as
other factors (i.e. man hours, equipment, and experience) rather than price alone. Staff
expects to have this contract developed, bid, awarded, and executed within 120 days.
In order to provide interim landscape maintenance services for LMA 18, staff has
contacted Hortech, Inc., who has successfully worked for the City as a landscape
maintenance vendor in the past and has prior experience with and/or knowledge of this
LMA. The time period for this interim landscape maintenance will extend into
overseeding season and, as a result, a proposal has been requested and received for
general landscape maintenance services and for overseeding. The proposed cost is
$6,500 per month for general landscape maintenance services, and $2,500 for
overseeding. The work requested is based on the current contract specifications, but is
not all inclusive because the time period is substantially less than a full year. The intent
of the scope of work is to maintain the LMA in good, functional, and safe condition until
a new contract can be developed, bid, awarded, and executed.
Staff Report
TruGreen LandCare Election to Not Accept Contract No. C31570
June 28, 2012
Page 3 of 3
Fiscal Analysis
This is an on -going maintenance activity with no fiscal impact beyond the contract
amount. The City Attorney is pursuing TruGreen's bid bond, which will offset the
additional expenses incurred as a result of the non -acceptance of the contract.
Prepared By:
Paul S. Gibson, Director of Finance
Approval:
t
h7l M. Wohlmuth, City Manager
Departme,ntpe,Ad:
Mark Groer�vood, P.
Director of Public Wor.
CITY COUNCTLAC-
APPROVED DENTED
RECEIVED OTHER
ri=lilml on File with City �C1( Office
` r► r rM► s.` w t s's
June 14, 2012
H. Spencer Knight
Landscape Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
Dear Spencer:
7i-uGreen LandCaxe
San Diego Branch 6372
5248 Governor Drive
San Diego, CA 92122
Office: 858-453-1755
Fax: 858-453-7197
Mailing Address
P.O. Box 22207
San Diego, CA 92192-2207
As per our phone conversation we are going to elect to not accept the award for LIMA 1, 16, 17, and 18.
At the time of submission we had, in our employ, two individuals that were soon to depart the company.
After our internal approval process, numbers were altered, and an "unresponsive" bid was submitted to
the City of Palm Desert. For this, on behalf of our team, I apologize.
Following the notice of award, these red flags were noticed. We put together a team to look over the
numbers and scope to ensure that we, in good faith, could perform the work at the submitted price.
After a week of due diligence, our team has decided that it is not in the best interest of all parties
involved, for us to move forward with this book of work.
Again, I apologize for the inconvenience. Our team takes great pride in our work, and we are taking all
action required to ensure that this does not happen in the future. We Took forward to participating in
future RFP processes.
Sincerely
Jared ice
Branch Manager
LANDSCAPE AREA 18
OF?A-W t`
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�C�NFORMf`�O
LEGEND
LMA 18
Palm Desert Parcels
City Boundary
e1 INCH 1,500 FEET
'Q
Palma Village Park
+/- 59,000 Sq Ft