HomeMy WebLinkAbout2005-12-13; City Council; 18367; Amend Custodial & Median Maintenance Servicen
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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.
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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.
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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.
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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
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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.
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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)