HomeMy WebLinkAbout2006/08/22 Item 21
COUNCn.. AGENDA STATEMENT
Item ~
Meeting Date 08/22/06
ITEM TITLE: Resolution Amending the FY 07 budget by appropriating $33,486
from Open Space District 20, Zone 5 and Open Space District 8 funds;
awarding a landscape maintenance contract per the terms & conditions of bid
#01-04/05 to Aztec Landscaping in the amount of $242,3 78.24 for the period
September 1, 2006, through June 30, 2007, for the landscape maintenance of
Open Space District 20, Zone 5 and Open Space District 8; and authorizing
the Purchasing Agent to renew the agreement for four (4) additional, one (1)
year option periods
SUBMfITED BY, Drr.ctM ,fpOb?"'" Opomti~ ~
REVIEWED BY: City Manager 'if! (4/5 Vote: Yes..x...No~
The current landscape maintenance contractor for Open Space Districts 8 and 20, Zone 5 is in default
of their landscape maintenance contract. As a result, the second lowest bidder is being awarded the
landscape maintenance contract for these open space areas, which represents an increase of$33,486
over the lowest bid.
BOARD/COMMISSION RECOMMENDATION: N/A
RECOMMENDATION: That council adopt the resolution amending the FY 07 services and
supplies budgets of Open Space District 20, Zone 5 and Open Space District 8 by appropriating
$32,676 and $810 from the available balances of those funds respectively; awarding a landscape
maintenance contract per the terms & conditions of bid #01-04/05 to Aztec Landscaping in the
amount of$242,378.24 for the period September 1,2006, through June 30, 2007, for the landscape
maintenance of Open Space District 20, Zone 5 and Open Space District 8; and authorizing the
Purchasing Agent to renew the agreement for four (4) additional, one (1) year option periods
DISCUSSION:
On June 20, 2006, New Way Landscape & Tree Services notified the City of their intention to
default on their multi year landscape maintenance contract, effective July 1, 2006. Due to their
default, the City holds, at its option, the debarment of New Way Landscape & Tree Services from
bidding on City contracts for a specified period of time.
New Way has agreed to, and has been, maintaining these areas on an interim month-by-month basis
until the City awards another vendor these contracts. Staffhas contacted the second low bidder who
has agreed to honor the bid they submitted 17 months ago when these districts were last formally bid
(Apri114,2005). Aztec Landscaping was the second low bidder on both of the districts that will be
abandoned by New Way. It is staff s opinion that these bid numbers are reasonable and fair in light
of the current market and economic environment.
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Page 2, Item J I
Meeting Date 08/22706
Aztec Landscaping is currently providing satisfactory landscape maintenance for Open Space
District 9 and Open Space District 20, Zone 6. Open Space District 20, Zone 5 and Open Space
District 8 are also logical extensions to Aztec's current areas of responsibility as they are
geographically near, or contiguous with Aztec's existing areas of responsibility. Aztec Landscaping
has agreed and is ready to commence work in these two areas on September I, 2006. The contract
amounts for the remaining fiscal year (FY07) are as follows:
FY07
Open SDace District Contract Amount
OSD 20 Zone 5 $219,913 42
OSD 8 $22,464.82
TOTAL $242,378.24
Original bid submittals are available in the Purchasing Agent's office.
Performance standards and terms & conditions of Landscape Maintenance of Open Space Districts
Bid # 1-04/05 shall apply to the new areas. Aztec will provide a performance & payment bond
through the life of the contract, including option periods.
The initial contract is for the remaining 10 months of the current fiscal year (September 06-June
2007), with four subsequent one-year options, if work performance is satisfactory. Additional one-
year extensions shall be by mutual agreement of the Contractor and City Prices shall remain firm
for the first contract year. For the option years, price increases are based on changes in the annual
San Diego Consumer Price Index, for an amount not to exceed 5%. The City reserves the right to
accept option year price increases or terminate the contract without penalty
Decision Maker Conflicts.
Staff has reviewed the property holdings of the City Council and has found a conflict, in that
Councilmember Castaneda has holdings within 500' of the property, which is the subject of this
action.
FISCAL IMPACT
All landscape maintenance costs will be borne by the respective homeowners in each Open Space
District. Therefore, there is no impact to the General Fund.
Attachments:
City's letter dated August 9,2006, to New Way Landscape & Tree Services
New Way Landscape & Tree Services "Release Offer Letter" dated August 11,2006
C:\Documents and Settings\robertb\My Documents\Bob\A113 OSD 20, Z5 & 8.doc
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~.:a
~~=~.;..
em Of
(HUlA VISTA
PURCHASING DIVISION
-\ ugust 9, 2006
NiL Rr:ndy Newh:,rd
New Way Land.scape & Tree Sen'lces
:485 Ronson Road
Sa.'l Drego, CA 92111
Subject: Bid #1-04/05, Open Space Lalldscllpe vlaintenance
Dear i'v'lr. :\ewhard;
1n accordance with City of Chula Vista Bid #1-04105, New Way Landscape & Tree Servic<,;s is
obligated to continoe providing landscape maimenance sen'ices for one additional yc~r; through
6/30107. This requirerne.nt was covered in the pre-bid meeting and has been past practice for at
1 east ten years.
Howewr. the City of Chu,a Vista is wimng to release New Way ii'om thelt obligation subJ~c; to
the fo UO'.,l./ing cor:di1ion,$:
L NeVl '"''lay Landscape ~1a~nlel1nnce & Tree Scrvic.e will continue to 1113111Lain Liel r
[espec~i'{e op~n :;pacr;; districts through 8/31/00,
2, :\cw \Vay shaH maintain appropriate .Insurance & \\~orker"sCotnpcn$3.tio1l. ,~:.>v('r~tge
througll 8/3I1U5.
All other terms and conditions of the origlual agreemeut remain unchanged.
.,
.>
In lieu of action against New Way's Perfonnanee Bond, the City will consider whether New Way
Landscap~ng should he debarred from bidding on City contr",cts for a spccllled period of li:ne.
Shculd the City decide that debanl1ent is an appropriate measure, you will be iIlfonn~d b,' J
separate lener that sclS forth the te:-ms of the dehanl1ent 2nd your rights to al1 app.~al on I.l,e
proposed debarment.
Sincerely
ce. Pub;ic">', ()rk~ Operations Departm~nt, OpCll Space Division
275 fOIJrth ,A;~e~H!.C" MS F,,10b.
Oul. V"ta, C~ 91910
Phone (619) 397.6304
Fax. '"AX (619; 39' .6309
.7$,.\Jf?
PRIDE
ATWO&K
www.chulavistaca.gov
- 7. 1'Gfl.O:;r.iI.lff.l!:i ~K\'::~ ?'~;iOO"
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?Il,1i,l:-II-"';: lJii b'?J
FROM-N.w Way LandsC3Plni
BoHCS-8m
T-m P 01/11 F-9:C
& ~~;;.,;Ya~" s"'""
August 11,2006
Mr. lohn? Co~ins, CPoM,
Pur<.:hasing Agent
City ofChula Vista
Purchasing Division
276 Fourrh Avenue
i'vl$ F-106
Chula Vista, CA. 91 'IJ II
~ubjcct: Bid;/;' H)4JGS Upen Sp..~l:' ::"!IICd~;;::lpe Maln,enwlce
Dear Mt. Cogg.ins,
We are in r~cdpt ofyollr letter lkwd Al.g.U'! 9. 2006 regarrling Bia #1 . 04/05, Open
Space Ll1l1liscjlpe MaiuIC:!1t:nCC' c'Rdf:3S<: Offer L:trer"). N!:!w W~y Llifldscap.: &. Tree
Servi<:e:; ("New Way 'OJ ao.:cepb ~ (,ur otTer 10 release New Way frum its obligatiolls
elTe.::,i;-c Aug~( 31, 20De, sub~.:cr TO In.:: 1"l1lb aud cOi.ditiullS ,>utlir.ed in your R.cle-ase
Offer L::tter.
We have enjoyed d-.c rllationSlli?", we nave l.'ulti,ated with your team over the years.
ThllIlk you for your slIpport in tm, man..r. Pi,;as~ accept our kindest wishes for
c\mrinued ~llccesS in your !<:arr.'5 e!ldel1\'ors.
?;if.?
Rand::,- Newhard
President
7485 R.On5on R.c)ad, San Dl~:;(), CA 92m (858) 505..s~OO FAX (8'i3) 505.8305 . t~ 27 ",501C32
\~""'w. tle\oV'\o'fay PI\).( 0 (fI,
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RESOLUTION NO 2006-_
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FY 07 BUDGET BY
APPROPRIATING $33,486 FROM OPEN SPACE DISTRICT 20,
ZONE 5 AND OPEN SPACE DISTRICT 8 FUNDS;
A WARDING A LANDSCAPE MAINTENANCE CONTRACT
PER THE TERMS AND CONDITIONS OF BID #01-04/05 TO
AZTEC LANDSCAPING IN THE AMOUNT OF $242,378.24
FOR THE PERIOD SEPTEMBER 1, 2006, THROUGH JUNE 30,
2007, FOR THE LANDSCAPE MAINTENANCE OF OPEN
SPACE DISTRICT 20, ZONE 5 AND OPEN SPACE 8, AND
AUTHORIZING THE PURCHASING AGENT TO RENEW THE
AGREEMENT FOR FOUR (4) ADDITIONAL, ONE (1) YEAR
OPTION PERIODS
WHEREAS, on June 20, 2006, New Way Landscape & Tree Services notified the City of
their intention to default on their multi year landscape maintenance contract, effective July 1,
2006; and
WHEREAS, due to their default, the City holds, at its option, the debarment of New Way
Landscape & Tree Services from bidding on City contracts for a specified period of time; and
WHEREAS, New Way has agreed to, and has been, maintaining these areas on an
interim month-to-month basis until the City awards another vendor these contracts; and
WHEREAS, staff has contacted the second lowest bidder who has agreed to honor the
bid they submitted 17 months ago when these districts were last formally bid (April 14, 2005),
and
WHEREAS, Aztec Landscaping was the second lowest bidder on both of the districts that
will be abandoned by New Way It is staff's opinion that these bid numbers are reasonable and
fair in light of the current market and economic environment; and
WHEREAS, Aztec Landscaping is currently providing satisfactory landscape
maintenance for Open Space District 9 and Open Space District 20, Zone 6; and
WHEREAS, Open Space District 20, Zone 5 and Open Space District 8 are also logical
extensions to Aztec's current areas ofresponsibility Aztec Landscaping has agreed and is ready
to commence work in these two areas on September 1,2006; and
WHEREAS, performance standards and terms & conditions of Landscape Maintenance
of Open Space Districts Bid #1-04/05 shall apply to all new areas. Aztec will provide a
performance and payment bond through the life of the contract, including option periods; and
WHEREAS, the initial contract is for the remaining 10 months of the current fiscal year
(September 06-June 2007), with four subsequent one-year options, if work performance is
satisfactory Additional one- year extensions shall be by mutual agreement of the Contractor and
City; and
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WHEREAS, prices shall remain firm for the first contract year, for the option years, price
increases are based on changes in the annual San Diego Consumer Price Index, for an amount
not to exceed 5% The City reserves the right to accept option year price increases or terminate
the contract without penalty.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby amends the FY 07 budget by appropriating $33,486 from Open Space District 8
funds, awarding a landscape maintenance contract per the terms and conditions of bid #0 I -04/05
to Aztec Landscaping in the amount of $242,378.24 for the period September I, 2006, through
June 30,2007, for the landscape maintenance of Open Space District 20, Zone 5 and Open Space
8, and authorizing the purchasing agent to renew the agreement for four (4) additional, one (1)
year option periods
Presented by
Approved as to form by
Dave Byers
Director of Public Works Operations
~{c:~t\~~~\)~
Ann Moore \
City Attorney
J:lAttorneylRESO\FINANCElAmend FYO? 82206
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