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CONSIDERATION OF ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS FOR CERTAIN OPEN SPACE DISTRICTS TO AZTEC LANDSCAPING, INC., BLUE SKIES LANDSCAPE, INC., AND BRICKMAN GROUP; AND WAIVING IRREGULARITIES IN THE BID RECEIVED FROM BRICKMAN GROUP FOR BID GROUP 1
A. RESOLUTION NO. 2014-195 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING IRREGULARITIES, ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY AND BRICKMAN GROUP FOR LANDSCAPE MAINTENANCE SERVICES FOR BID GROUP 1 OPEN SPACE DISTRICTS 1, 17 AND 20 (ZONE 7) IN THE AMOUNT OF $181,728; BID GROUP 7 TELEGRAPH CANYON ROAD I-805 TO LA FITNESS AND OTAY RANCH VILLAGE 1 WEST SOUTH SLOPES (CFD 99-2) IN THE AMOUNT OF $140,241; APPROPRIATING FUNDS THEREFOR AS SPECIFIED IN THE BODY OF THIS RESOLUTION; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT (4/5 VOTE REQUIRED)
B. RESOLUTION NO. 2014-196 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 3 EASTLAKE MAINTENANCE DISTRICT NO.1 ZONES A, B, AND D AND OPEN SPACE DISTRICT 31 IN THE AMOUNT OF $192,413.76; BID GROUP 5 OPEN SPACE DISTRICTS 2, 7, 18, AND 23 IN THE AMOUNT OF $94,829.64; BID GROUP 8 OLYMPIC PARKWAY 805 SR125, EASTLAKE LANDSWAP OLYMPIC PARKWAY SR125 HUNTE PARKWAY, OTAY RANCH VILLAGE 2 SANTA VENETIA (CFD 13M) IN THE AMOUNT OF $226,592.16; APPROPRIATING FUNDS THEREFOR AS SPECIFIED IN THE BODY OF THIS RESOLUTION; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT (4/5 VOTE REQUIRED)
C. RESOLUTION NO. 2014-197 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY AND BLUE SKIES LANDSCAPE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 2 OPEN SPACE DISTRICT 20 ZONES 2, 3, 4, 5 AND 6 IN THE AMOUNT OF $517,186.99; BID GROUP 4 OPEN SPACE DISTRICTS 14, 15, AND 24 IN THE AMOUNT OF $217,293.28; BID GROUP 6 MCMILLIN OTAY RANCH VILLAGE 6 - CFD 08M AREA 1, AND OTAY RANCH VILLAGE 6 - CFD 08M AREA 2 IN THE AMOUNT OF $342,646.39; APPROPRIATING FUNDS THEREFOR AS SPECIFIED IN THE BODY OF THIS RESOLUTION; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council conduct the public hearing and adopt the resolutions.
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SUMMARY
On September 2, 2014, the City received three bids for landscape maintenance services in twenty-five Open Space Districts ("OSDs"). Funding for the contracts is included within the budget for each OSD. Today's action is to accept the bids, award the contracts to Aztec Landscaping, Inc., Blue Skies Landscape, Inc., and Brickman Group; and authorize entering into landscape maintenance contracts with each contractor.
It also requests that Council waive a minor mathematical error in the bid by Brickman Group for Bid Group 1. Even with this error, Brickman Group's corrected bid of $181,728 is $18,339 lower than the second lowest bidder.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity, consisting of accepting bids and awarding landscape maintenance contracts, for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines because the proposal consists of continuing city administrative/maintenance activities, which will not result in a physical change to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The City of Chula Vista has 42 Open Space Districts and Maintenance Community Facilities Districts (collectively the "Districts"). The City levies an annual assessment on property owners within each District to provide funding for maintenance of common area spaces. The City contracts with landscape firms to provide landscape maintenance services in the Districts.
In twenty-five (25) OSDs, the landscape maintenance contracts have lapsed. The 25 OSDs were divided into eight (8) groups for the purpose of bidding ("Bid Groups"), as some of the OSDs (for example, District 17) are smaller than the others contiguous to them. By combining the areas, economies of scale could be obtained. The eight (8) Bid Groups are as follows:
• Group 1 - OSDs 1, 17, and 20 Zone 7;
• Group 2 - OSD 20 Zones 2, 3, 4, and 5;
• Group 3 - Eastlake Maintenance Districts A, B, D, and OSD 31;
• Group 4 - OSDs 14, 15, and 24;
• Group 5 - OSDs 2, 7, 18, and 23;
• Group 6 - Village 6 McMillin (CFD 08M Area 1) and Village 6 Otay Ranch (CFD 08M Area 2);
• Group 7 - Telegraph Canyon Road I-805 to LA Fitness and Otay Ranch Village 1 West South Slopes (CFD 99-2);
• Group 8 - Olympic Parkway I-805 to SR-125, Eastlake Land Swap (Olympic Parkway, SR-125 to Hunte Parkway CFD 07M Area B), and Otay Ranch Village 2 (Santa Venetia CFD 13M).
Public Works staff prepared specifications and advertised the services by Bid Groups on August 15, 2014. A mandatory pre-bid meeting was held on August 20, 2014. The purpose of the meeting was to review and clarify the bid requirements. Staff explained that bids would be evaluated and contracts awarded by Bid Group to the lowest most competent and qualified bidder for each Bid Group.
On September 2, 2014, the Director of Public Works received and opened three (3) bids from the following companies:
• Aztec Landscaping, Inc.
• Blue Skies Landscape, Inc.
• Brickman Group
The lowest qualified bidders recommended for award are as follows:
Bid Group |
Contractor |
Annual Amount ($) |
1 |
Brickman Group |
181,728.00 |
2 |
Blue Skies Landscape, Inc. |
517,186.99 |
3 |
Aztec Landscaping, Inc. |
192,413.76 |
4 |
Blue Skies Landscape, Inc. |
217,293.28 |
5 |
Aztec Landscaping, Inc. |
94,829.64 |
6 |
Blue Skies Landscape, Inc. |
342,646.39 |
7 |
Brickman Group |
140,241.00 |
8 |
Aztec Landscaping, Inc. |
226,592.16 |
Total |
1,912,931.22 |
Contractor Annual Amounts
1 - Groups 1 & 7: Brickman Group = $321,969.00
2 - Groups 3, 5, & 8: Aztec Landscaping, Inc. = $513,835.56
3 - Groups 2, 4, & 6: Blue Skies Landscape, Inc. = $1,077,126.66
In reviewing the bids, staff determined that some of the documents provided by staff in the bid documents were in conflict with each other. This created an ambiguity in how costs were to be allocated within a Bid Group. Staff expected the costs to be allocated within a Bid Group in one manner; however, the way the bid documents were written, a bidder could have allocated these costs differently. Staff expected bidders to allocate costs for 40 hours, weekly, of irrigation systems maintenance within Bid Group 1 by 23% to District 1 and 77% to District 20 Zone 7. The Brickman Group, however, allocated the 40 hours of irrigation systems weekly maintenance costs within Bid Group 1 by dividing the costs equally among Districts 1, 17, and 20 Zone 7. When the costs were reallocated in the manner staff expected, there was no net change in the dollar amount and Brickman Group Bid was still the lowest bid ($18,399 less than the second lowest bidder) for that Group. As the bid documents stated that the contract would be awarded to the lowest, responsible bidder by Bid Group, the Brickman Group, regardless of the manner of its allocation of the costs, was the lowest bidder by Bid Group.
Therefore, staff recommends waiving the mathematical error in Brickman Group bid for Bid Group 1, accepting the contractors' bids and awarding the landscape maintenance contracts to Aztec Landscaping, Inc., Blue Skies Landscape, Inc., and Brickman Group in the manner identified in the table above. The contracts are presented for your approval on the City's standard form, customized for this particular scope of work. Key provisions include:
The contracts are for one year with three one-year options by mutual agreement of the contractor and City if work performance is satisfactory. Prices shall be firm for the first contract year. For the option years, price increases are based on change in the annual San Diego Area Consumer Price Index, for an amount not to exceed 5%. The City reserves the right to accept option year price increases or an amount not to exceed 5%. The City reserves the right to accept option year price increases or terminate the contracts without penalty.
The contractors who bid on this project are not required to pay prevailing wages to persons employed by them for the work performed under this project. However, recent state legislation may impose prevailing wage requirements on the work to be performed during the term of the contract. If the City determines that it is required by law to pay prevailing wages, the City and Contractor shall amend the terms of the contract, as necessary, to ensure compliance with all applicable state and local laws governing the payment of prevailing wages.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong & Secure Neighborhoods and a Connected Community. This action supports the goal of a Healthy Community, which includes maintaining community open space for public enjoyment.
CURRENT YEAR FISCAL IMPACT
There is no impact to the General Fund from this action. All landscape maintenance costs will be borne by the respective property owners in each Community Facilities District.
ONGOING FISCAL IMPACT
The annual contract cost will be included in the annual budget for each Community Facilities District
ATTACHMENTS
1. Landscape Maintenance Standards
2. Map of Open Space Districts
Staff Contact: Sam Oludunfe