Loading...
HomeMy WebLinkAbout2005-12-13; City Council; 18367; Amend Custodial & Median Maintenance Servicen a w 8 2 2 s Q z 0 F d 0 z 0 3 CITY OF CARLSBAD - AGENDA BILL - TITLE: AUTHORIZATION TO AMEND THE CUSTODIAL AND MEDIAN MAINTENANCE SERVICE AGREEMENTS IN ORIGINAL CONTRACT AMOUNT IIITG. I 12-13-65 EXCESS OF TWENTY-FIVE PERCENT OF THE IEPT. PW/GS RECOMMENDED ACTION: Adopt Resolution No. 2005-356 approving increasing the twenty-five percent limit on amendments to the Custodial and Median Maintenance Service Agreements with The Business Cleaning Company and Westturf Landscape Maintenance and authorizing the City Manager to execute future amendments contingent upon available funds. ITEM EXPLANATION: General Services utilizes various maintenance contractors to perform maintenance on City-owned and maintained parks, facilities, and medians and open space throughout Carlsbad. Two of the major agreements for contracted maintenance are the Median Maintenance Services and Custodial Maintenance Services. Recent additions to the City’s parks and facilities inventory and roadway infrastructure have resulted in additional maintenance responsibilities being added to the above-mentioned agreements. Currently, both maintenance agreements have reached the twenty-five percent limit in amendments to the original contract that the City Manager can approve without City Council authorization as allowed under Section 3.28.040 of the Carlsbad Municipal Code. The purpose of this agenda bill and resolution is to allow the City Manager to execute future amendments to the agreements. Median Maintenance Services The original agreement for Median Maintenance Services was entered into on February 5, 2004. The original agreement authorized a compensation of $1 39,372 per agreement year and authorized the City Manager to extend the agreement for three additional one-year periods. Since the agreement was authorized, several additional medians were added to the inventory including portions of Carlsbad Boulevard, Poinsettia Lane, El Camino Real and Rancho Santa Fe Road. Additional amendments were executed to fund an increase in annual compensation based on the Consumer Price Index increase for San Diego County and to fund $15,000 per agreement year for extra work above and beyond normal maintenance activities as detailed in the agreement. These amendments total $34,760. These additions place the agreement $83 from the City Manager’s authorized spending limit. The Engineering Department has informed General Services that completion of other medians are expected in the near future. These additional medians will require maintenance by the City. Additional locations include, but are not limited to, portions of Alga Road, El Camino Real, Palomar Airport Road, Poinsettia Lane, and Melrose Drive. General Services requests that the City Council authorize the City Manager to amend the current agreement for Median Maintenance Services to a total, not-to-exceed $250,000 per agreement year, in order to allow future amendments to fund maintenance of additional locations and annual compensation adjustments. Future amendments to the agreement are contingent upon funding approved by the City Council. This agreement will be placed out to bid at the end of the allowable extensions previously authorized by the City Council, no later than February 5, 2008. I Page 2 of Agenda Bill No. @, 36 7 Custodial Maintenance Services The original agreement for Custodial Maintenance Services was entered into on July 15, 2004. The original agreement authorized a compensation of $1 66,800 per agreement year and authorized the City Manager to extend the agreement for three additional one-year periods. Since the agreement was authorized, several additional facilities were added to the inventory including buildings in Leo Carrillo Park, a new modular building at the Parks Maintenance yard, a new modular restroom at Pine Park, new buildings and restrooms at Aviara Park, and a new restroom at Hidden Canyon Park. Additional amendments were executed or are pending to fund this additional work at a total annual cost of $39,624. These additions place the agreement $2,076 from the City Manager’s authorized spending limit. General Services anticipates completion and addition of other facilities in the near future. These additional facilities will require maintenance by the City. Additional locations include, but are not limited to, the new Learning Center, Senior Center Expansion, and Alga Norte Park facilities. General Services requests that the City Council authorize the City Manager to amend the current agreement for Custodial Maintenance Services to a total, not-to-exceed $250,000 per agreement year in order to allow future amendments to fund maintenance of additional locations and annual compensation adjustments. Future amendments to the agreement are contingent upon available funding from the Parks and Facilities Maintenance budget. This agreement will be placed out to bid at the end of the allowable extensions previously authorized by the City Council, no later than July 15, 2008. General Services can maintain our current assets with the above-mentioned contracts but the City Manager cannot fund any additional maintenance locations without authorization from the City Council. ENVIRONMENTAL REVIEW: These maintenance agreements are not a project as defined by Section 15378 of the CEQA Guidelines. FISCAL IMPACT: Medians Agreement Explanation The City was recently required to accept from developers two segments of median landscaping for ongoing maintenance. Section 3.28.040 of the Carlsbad Municipal Code allows the City Manager to authorize increases to the existing maintenance contract to cover additional expenses up to a maximum of 25% of the original contract value. However, due to prior additions to the contract there is no longer capacity to add additional expenses such as these new median areas. Authorizing the amendment as requested would allow the City to add these segments to the medians contract in providing the proper level of landscape maintenance service. The funding background for this agreement: In February 5,2004 - Median Maintenance Agreement was awarded for a total cost of $1 39,372 Additional amendments to add new median sections for maintenance, CPI% increases and $15,000 in extra work $34,760 CURRENT CONTRACT TOTAL $1 74,132 This current amount is only $83 from the 25% limit for additions to this contract. 2- Page 3 of Agenda Bill No. /%, 36 7 Over the course of the next two plus years remaining in the potential agreement term, there will be several additional medians that will be accepted into the City’s inventory. These include portions of Alga Road, El Camino Real, Palomar Airport Road, Poinsettia Lane, and Melrose Drive. Additional annual CPI increases and various extra work (e.g., replacing dead plants) will also likely be required over this period. Specific acreage numbers for these medians are not currently available and, therefore, make accurate costing estimates difficult. However, it is estimated that these additions could add upward of $75,000 per year to the cost of the contract, which led to a request to increase the contract capacity amount to $250,000. The actual amount that the contract would be increased would match any actual expenditure. Please note that if the amendment is approved, no new expenditure will be added to the contract until budget funding is identified. These current and future costs will create costs that will exceed the existing limit of 25% above the base contract amount. This leaves two options in order to go forward. Option 1 - Amend existing service agreement. Benefits to this option include: 0 The current cost per acre for the current agreement is believed to be lower than the rate that would be achieved if the agreement were to go out to bid in today’s market (option #2). 0 The current contractor is completing the maintenance work in an acceptable manner, is meeting contract expectations, and has a good working relationship with City staff. 0 Saves staff time to create a new agreement and go out to bid. Option 2 - Re-bid the contract. The benefits to this option is: 0 Follows the normal rules of City contracting when a contract amount reaches the 25% limit over the base contract rate. It is the recommendation of staff to pursue Option #I in this case to allow for the addition of the new median sites. This option should allow for an overall lower cost per acre to be maintained, as well as reduce staff time in administrating and managing the contract over the next two years until the maximum potential term of the contract expires. The amount of this amendment for contract capacity is recommended to be $250,000 to cover additional medians to the contract, CPI increases, and other unforeseen extra costs over the remaining maximum term of the contract. Fundincl Future Median Amendments In reviewing the Medians budget, it appears that the current contingency amount can cover projected additional expenditures this fiscal year. New median additional expenditures that exceed the contingency amount will require a request for additional funds during the budget process in the spring. This would likely translate into a request for an increase in the existing annual General Fund loan amount. Custodial Maintenance Aclreement Explanation With respect to the Custodial Maintenance Agreement, the City has also reached the 25% limit over the base contract amount and more facilities are expected to be added to the City’s inventory over the remaining two and half years of the potential agreement term. 3 Page 4 of Agenda Bill No. 17, a7 The funding background for this agreement: In July 15, 2004 - the Custodial Maintenance Agreement was awarded for a total cost of $1 66,800 Additional amendments to add new custodial sections for maintenance, and CPI% increases. $39,624 CURRENT CONTRACT TOTAL $206,424 This current amount is only $2,076 from the additional 25% limit for the contract. Additional facilities requiring Custodial Maintenance are expected to be added to the City’s inventory over the next several years. These additions include the new Learning Center, Senior Center expansion, and the Alga Norte Park facilities. Increased capacity to this agreement will allow for the costs of the added custodial maintenance facilities to fit within the existing agreement. The additional costs are estimated to be upward of $40,000 per year, which led to a request to amend the agreement to a maximum of $250,000. The options for action are the same as outlined in the median discussion above. Amending the existing agreement will allow staff the capacity to take on the additional custodial maintenance work. Future Funding Additional amendments to the Median Maintenance Services contract in fiscal year 05-06 will be funded through department contingency. Future fiscal year amendment funding will be requested through the annual budget request process, as needed. Additional funding for Custodial Maintenance is available in the Facilities and Parks Maintenance budgets. EXHIBITS: 1. Resolution No. 2005-356 approving increasing the twenty-five percent limit on amendments to the Custodial and Median Maintenance Service Agreements with The Business Cleaning Company and Westturf Landscape Maintenance and authorizing the City Manager to execute future amendments contingent upon available funds. DEPARTMENT CONTACT: Dale A. Schuck, (760) 434-2949, dschu@ci.carlsbad.ca.us 4 I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 119 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2005-356 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO AMEND THE CUSTODIAL AND MEDIAN MAINTENANCE PERCENT OF THE ORIGINAL CONTRACT AMOUNT. SERVICE AGREEMENTS IN EXCESS OF TWENTY-FIVE WHEREAS, the agreements for Median Maintenance Services with Westturf Landscape Maintenances and Custodial Maintenance Services with The Business Cleaning Company have been amended by the City Manager near the twenty-five percent increase authorized by the Carlsbad Municipal Code; and WHEREAS, future medians and facilities will be added to the General Services inventory; and WHEREAS, the City of Carlsbad is responsible for performing median and custodial maintenance services for these additional medians and facilities; and WHEREAS, the current agreements cannot be amended by the City Manager without City Council approval; and WHEREAS, agreements are in place to perform median and custodial maintenance needs with Westturf Landscape Maintenance and The Business Cleaning Company; and WHEREAS, future funding for Median Maintenance will be available from future assessments or as otherwise authorized by the City Council; WHEREAS, sufficient funds are available for future amendments to the Custodial Maintenance agreement in the Parks and Facilities Maintenance budget; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the City Manager is authorized to execute amendments to the Median Maintenance Services agreement with Westturf Landscape Maintenances to an amount, not-to-exceed, $250,000 per agreement year, contingent upon future funding approved by the City Council. Ill Ill That the above recitations are true and correct. 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 3. That the City Manager is authorized to execute amendments to the Custodial Maintenance Services agreement with The Business Cleaning Company to an amount, not-to-exceed, $250,000 per agreement year, contingent upon available funding in the Parks and Facilities Maintenance budgets. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 13th day of December , 2005 by the following vote, to wit: Kulchin, Packard, Sigafoose -v- ATTEST (SEAL)