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HomeMy WebLinkAbout2014-02-25; City Council; Resolution 2014-0331 RESOLUTION NO. 2014-033 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REJECTING ALL BIDS FOR REQUEST FOR PROPOSALS #14-02 - PARKS MAINTENANCE SERVICES 4 5 WHEREAS, on July 24, 2012 the city council received a report on the parks 8i recreation 6 7 8 9 10 11 parks maintenance services, and initiate the meet and confer process with the Carisbad City 12 Employees' Association (CCEA); and WHEREAS, on February 7, 2013, an agreement between the city and the CCEA regarding outsourcing work was reached; and WHEREAS, the obligations under this agreement were fulfilled and the request for 27 28 department operational assessment conducted by the firm of Baker Tilly; and WHEREAS, the assessment included a finding that significant savings may be achieved by outsourcing parks maintenance services; and WHEREAS, the council directed staff to pursue obtaining proposals to outsource all 13 14 15 16 proposals (RFP) was developed to the satisfaction of both the city and the CCEA appointees; 18 and 1^ WHEREAS, the RFP was divided into five specific work categories that define current 20 21 22 23 24 WHEREAS, staff reviewed aii of the bids, and recommended that two of the bids be 25 declared non-responsive; and 2^ WHEREAS, staff did not have comparative bids to perform a best value analysis in any of the five categories and was unable to determine if substantial savings could be realized 5 service levels and potential contractors had the ability to bid on any or all of the categories; and WHEREAS, on July 17, 2013, RFP #14-01 was advertised for bid for 35 days; and WHEREAS, on August 22, 2013, the sealed bids of four contractors were opened; and 1 outsourcing parks maintenance services; and 2 WHEREAS, on September 10, 2013, the city council rejected all bids for RFP #14-01, and directed staff to update and re-issue the RFP for a longer advertisement period; and WHEREAS, on September 16, 2013, RFP #14-02 was advertised for bid for 63 days; and WHEREAS, on November 19, 2013, the sealed bids of six contractors were opened; and 7 WHEREAS, none of the six contractors bid on all five of the work categories; and 8 WHEREAS, staff performed a best value analysis of the bids, and found that In four of 9 the five categories, the best value determined bid for prevailing wage was also the low bid; and 10 WHEREAS, the total of these best value bids was $3,991,711.40 per contract year; and 11 WHEREAS, since the period of the Baker Tilly operational assessment, the parks 12 maintenance section has improved its efficiencies by identifying/implementing new practices, 14 and has reduced its workforce by 10.5 full-time maintenance positions; and 15 WHEREAS, since the period of assessment the ratio of contractual maintenance services to staff maintenance services has increased from approximately 50:50 to 65:35; and WHEREAS, as a result of the above actions, the parks maintenance annual operating budgets have been reduced by a total of $638,000 since FY 11-12; and WHEREAS, a fully contracted operations model (including two requisite additional 21 inspectors) would yield an annual savings of approximately $365,498 over the parks 22 maintenance section's current operations model; and WHEREAS, a decision to pursue a fully contracted operations model would also require completing the process detailed in Section 4 'Meet and Confer Process' of the referenced agreement with the CCEA; and 16 17 18 19 20 23 24 25 26 27 /// 28 17 18 19 20 23 24 25 26 presumably be impacts from the transition; and WHEREAS, the city would assume the risks of redeployment of city resources, and/or a contractor's lack of commitment to the agreed upon terms, should the associated contracts prove to be unsuccessful; and 1 WHEREAS, should a fully contracted operations model be implemented, there would 2 3 4 5 6 7 WHEREAS, conversely, the parks maintenance section's current operations model would 8 require a premium of approximately 9.16% (or $365,498 annually) over a fully contracted 9 operations model; and 10 WHEREAS, the above process, impacts, and risks would be limited under the current 11 operations model; and 12 1^ WHEREAS, Baker Tilly has indicated a best practice premium for staff services over 14 contractual services is 10% to 15%, and the City of San Diego places a premium 10% on staff 15 bids over contractor bids within its managed competition program; and 16 WHEREAS, parks & recreation staff remains committed to continuous improvement efforts under the current operations model; and WHEREAS, staff recommends the city council reject all bids for RFP #14-02. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad, 21 California, as follows that 22 1. The above recitations are true and correct. 2. All bids for Request for Proposals #14-02 - Parks Maintenance Services are hereby rejected. /// 27 /// 28 "7 -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of Februarv 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Blackburn. None. ABSENT: None. ATTEST: BARBARA ENGLESON, City Clerk