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HomeMy WebLinkAbout2014-02-25; City Council; 21517; Review Results Proposals 14-02 Parks Maintenance, Considering Rejection of BidsCITY OF CARLSBAD - AGENDA BILL AB# 21,517 REVIEWING THE RESULTS OF REQUEST FOR PROPOSALS #14-02 - PARKS MAINTENANCE SERVICES - AND CONSIDERING THE REJEaiON OF ALL BIDS DEPT.DIRECTOR MTG. 02/25/2014 REVIEWING THE RESULTS OF REQUEST FOR PROPOSALS #14-02 - PARKS MAINTENANCE SERVICES - AND CONSIDERING THE REJEaiON OF ALL BIDS CITY ATTY. 3^ DEPT. p&R REVIEWING THE RESULTS OF REQUEST FOR PROPOSALS #14-02 - PARKS MAINTENANCE SERVICES - AND CONSIDERING THE REJEaiON OF ALL BIDS CITY MGR. ^j^ RECOMMENDED ACTION; Review the results of Request for Proposals #14-02 - Parks Maintenance Services - and adopt Resolution # 2014- 033 ^ rejecting all bids and direct staff to continue cost cutting and efficiency measures. Alternatively, council may choose to outsource all or part of the parks maintenance services. ITEM EXPLANATION; On July 24, 2012 the city council received a report on the parks and recreation department operational assessment conducted by the firm of Baker Tilly. This assessment was an independent review of the department's lines of business in terms of their costs, methods and quality of service. The focus of the assessment was to identify opportunities to provide the same high level of services at lower costs. The assessment included a finding that between $1,700,000 and $3,866,000 dollars could potentially be saved by fully contracting out parks maintenance services. The city council directed staff to pursue obtaining proposals to fully contract out parks maintenance services, and initiate the meet and confer process with the Carlsbad City Employees' Association (CCEA). Since the Baker Tilly assessment, the parks maintenance section has improved Its efficiencies by identifying and implementing new practices. The workforce has been reduced by 10.5 full-time maintenance positions, contractual maintenance services have increased from 50 percent to 65 percent and the parks maintenance annual operating budget has been reduced by $638,000. The staff reduction took place through resignations, retirements and transfers to other departments and the positions were not backfilled. Instead, in several cases, contracts were increased in order to accomplish the requisite parks maintenance services. City staff is committed to continuing to seek out efficiencies that will lower costs while maintaining or improving our level of service. Upon city council direction to pursue obtaining proposals to outsource parks maintenance services, the meet and confer process between the city and the CCEA was initiated. On February 7, 2013, an agreement was reached between these two entities regarding contracting out work (Exhibit 2). The agreement requires that two CCEA appointees be afforded the opportunity to meet with city management staff developing the RFP. The appointees were to be allowed to provide written feedback and suggestions on the development of the RFP. These obligations were fulfilled and the RFP was developed to the satisfaction of both city and the CCEA appointees. DEPARTMENT CONTACT: Kyle Lancaster 760-434-2941, Kyle.Lancaster@carlsbadca.gov FOR CLERK USE. COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • REPORT RECEIVED • Page 2 On July 17, 2013, the parks maintenance services RFP was advertised for bid by staff, for a 35 day period. The RFP was broken In to five specific work categories: Trees Maintenance; Community Parks and School Athletic Fields; Passive Parks and Facilities Landscapes; Streetscapes, Medians and Parkways; and Undeveloped Parks, Ui'ban Forests, and Trails Maintenance. Potential contractors had the ability to bid on any or all of the of work categories. On August 22, 2013, four sealed contractor bids were opened and reviewed by staff. Staff recommended that two of the bids be found non-responsive, as the RFP's minimum contractor qualifications were not met. This resulted in a lack of comparative bids for a best value analysis in any of the RFP's five work categories. On September 10, 2013, the city council rejected all bids and directed staff to update and reissue the RFP. Updates to the RFP included: a longer advertisement period, an optional tour of sites from each of the work categories within the RFP, and modifying the contractor's minimum qualification language to encourage additional interest in the RFP. On September 16, 2013, Parks Maintenance Services RFP #14-02 was advertised for bid by staff, for a 63 day period. On November 19, 2013, six sealed contractor bids were opened. None of the six contractors bid on all five of the work categories. Instead, the contractors bid on only one, two, or three of the work categories. Staff subsequently reviewed all of the bids, and concluded they were each responsive to the provisions of the updated RFP. Staff performed a standard best value analysis of each of the bids based on the following pre- determined weighted criteria: cost, ability to provide service, previous performance and references, quality of service, and unspecified value added offerings. All of the bids conform to the prevailing wage, with the best value bid reflected in bold font. In four of the five categories, the best value bid was also the low bid. The bids will expire on November 19, 2014. Prevailin2 Wa2e Trees Maintenance Community Parks i& School Athletic Fields Maintenance Passive Parks & Facilities Landscapes Maintenance Streetscapes, Medians, 4& Parkways Maintenance Undeveloped Park Sites, Urban Forests, & Trails Maintenance LeBahn's Landscaping, Inc 2,115,556.00 854,344.80 2,009,435.20 MCE, Inc. 1,557,280.00 819,852.00 Nissho of CA, Inc. 1,358,476.00 767,904.00 623,368.24 West Coast Arborists, Inc. $708,400.00 Western Gardens Landscaping, Inc. $574,020.00 $329,923.16 Westturf Landscape Management, Inc. $337,392.00 $680,147,200 467,360.00 Page 3 In the Trees Maintenance category, only one bid was received, from West Coast Arborists, Inc., at $708,400. In the Community Parks &. School Athletic Fields Maintenance category, three bids were received, and the bid from Nissho of California, Inc. was determined to be the best value at $1,358,476. In the Passive Parks 8i Facilities Landscapes Maintenance category, five bids were received, and the bid from Nissho of California, Inc. was determined to be the best value at $767,904. In the Streetscapes, Medians, 8i Parkways Maintenance category, three bids were received, and the bid from Nissho of California, Inc. was determined to be the best value at $623,368.24. In the Undeveloped Park Sites, Urban Forests, & Trails Maintenance category, two bids were received, and the bid from Western Gardens Landscaping, Inc. was determined to be the best value at $329,923.16. The total of these best value determined bids is $3,991,711.40 per contract year. West Coast Arborists, Inc., Nissho of California, Inc., and Western Gardens Landscaping, Inc. each have previous installation/maintenance experience with the city. The following table compares the annual amounts of the best value determined bids of RFP #14-02 with the projected annual costs of the parks maintenance section's current operations model (which includes both contracts and staff at a ratio of approximately 65:35). By way of a footnote (*), please be advised a fully contracted operations model would require two additional parks inspectors. The estimated costs for those two additional inspectors have been included in this comparison. Community Trees Parks, Athletic Fields Passive Parks, Facilities Landscapes RFP Results- Fully Contracted $ 708,400 $ 1,358,476 $ 767,904 $ Additional Inspectors* 40,728 61,092 40,728 Streetscape, Medians, Parkways Undeveloped Parks, Urban Forest, Trails Totals 623,368 $ 30,546 329,923 $ 3,788,071 30,546 203,640 Fully Contracted Plus Add'l. Insp. 749,128 1,419,568 808,632 653,914 360,469 3,991,711 Current Mix- Contracted/Staff 570,521 1,804,198 955,265 702,226 324,998 4,357,209 $-Difference $ 178,607 $ (384,630) $ (146,633)$ (48,312)$ 35,471 $ (365,498) As reflected above, a fully contracted operations model (including two additional inspectors) would yield the city an annual savings of approximately $365,498 over the section's current operations model. A decision by the city council to pursue a fully contracted operations model would also require a 'Meet and Confer Process' with the CCEA per the attached agreement. The current parks maintenance operations costs an additional 9.16% (or $365,498 annually) over a fully contracted operations model. This premium is below that recommended by Baker Tilly at 10-15% and below the 10 percent premium the City of San Diego places on staff bids over contractor bids within its managed competition program. This premium is a best practices standard that accounts for transition costs and increased risks due to outsourcing. 3 Page 4 Given that the city can perform the services within 10 percent of the fully outsourced model and that the parks and recreation staff has already achieved substantial annual cost savings and is committed to identifying and implementing additional measures to close the $365,498 gap, staff recommends the city council reject all bids for RFP #14-02 - Parks Maintenance Services. Alternatively, city council may accept any or all of the bids for RFP #14-02 - Parks Maintenance Services. FISCAL IMPACT; There is no direct fiscal impact to the city associated with the recommended action. ENVIRONMENTAL IMPACT; Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS; 1. Resolution # 2014-033 ^ rejecting all bids for RFP #14-02 - Parks Maintenance Services 2. Agreement between the City of Carlsbad and the Carlsbad City Employees Association Regarding Contracting Out Work, dated February 7, 2013 1 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 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 11 parks maintenance services, and initiate the meet and confer process with the Carlsbad City 12 Employees' Association (CCEA); and 13 WHEREAS, on February 7, 2013, an agreement between the city and the CCEA regarding 14 outsourcing work was reached; and 15 WHEREAS, the obligations under this agreement were fulfilled and the request for ly 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 all 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 27 the five categories and was unable to determine if substantial savings could be realized s 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 28 1 outsourcing parks maintenance services; and 2 WHEREAS, on September 10, 2013, the city council rejected all bids for RFP #14-01, and 3 directed staff to update and re-issue the RFP for a longer advertisement period; and 4 WHEREAS, on September 16, 2013, RFP #14-02 was advertised for bid for 63 days; and 5 , WHEREAS, on November 19, 2013, the sealed bids of six contractors were opened; and 6 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 -2- 22 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 operations model; and WHEREAS, the above process, impacts, and risks would be limited under the current operations model; and 9 10 11 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 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. 16 17 18 19 20 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, 21 California, as follows that 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 1 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 February 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Blackburn. None. ABSENT: None. ATTEST: BARBARA ENGLESON, Cfty Clerk Side Letter Re: Contracting Out Date: February 7,2013 AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD CITY EMPLOYEES ASSOCIATION REGARDING CONTRACTING OUT WORK The City of Carlsbad ("City") and the Carlsbad City Employees Association ("CCEA") agree to the following: 1. The City has the right to contract out any or all of the services currently being perfonned by CCEA-represented classifications or that could be performed by CCEA-represented classifications to any one or more public or private entities or individuals. 2. Prior to contracting out the services referenced in item number 1 above, the City shall first satisfy its obligation to meet and confer with CCEA regarding both the decision and effects of contracting out those services. 3. CREATION OF A REQUEST FOR PROPOSAL ("RFP") a. CCEA may appoint up to two (2) of its members to attend a meeting with City staff responsible for the creation of an RFP for the purpose of providing input to the City regarding the creation of the RFP for contracting out Ihe services referenced in item number 1 above. This first meeting shall occur prior to the RFP being prepared by City staff. b. After the draft RFP is completed by City staff, a copy of the draft RFP shall be forwarded to the CCEA appointees by email and a subsequent meeting shall be scheduled, which shall take place within seven (7) calendar days fi-om the date the RFP is received by the CCEA appointees. The purpose of the meeting is for CCEA appointees to meet with the City staff responsible for preparing the RFP in order to discuss the RFP and ask questions as necessary. Additional meetings may be scheduled if mutually agreeable. Following conclusion of the meeting(s), CCEA's appointees may provide written feedback/suggestions regarding the RFP for the consideration of City staff prior to it being finalized and sent to any potential contractors. CCEA's feedback/suggestions shall be forwarded to City staff responsible for the creation of the RFP by email within seven (7) calendar days fi-om the date of conclusion of these meetings. c. Prior to distribution of the RFP to potential contractors, the City shall provide the CCEA appointees with a final version of the RFP. d. Neither CCEA nor its appointees shall have veto power over any City decision related to the contents of an RFP or the RFP process. e. Neither CCEA nor its appointees may use the appointees' involvement in the RFP process to delay the RFP process. f CCEA's appointees shall sign confidentiality agreements, as agreed to by the City and CCEA, prior to receiving any information related to an RFP. Page 1 of 2 1 4 MEET AND CONFER PROCESS a. The City may send RFPs created following the procedure outlined in item number 3 above to potential contractors prior to engaging in the meet and confer process with CCEA. _b. After the City receives responses to die RFP, the City Council or designee shall determine wheiher to pursue contracting out of those services that are the subject of the RFP. c. In the event that the City Council or designee decides to pursue contracting out of any or all of the services dial are the subject of the RFP, the City's negotiating team will make a proposal in writing to CCEA to contract out tiiose services and will provide a copy of the leading proposal to CCEA along with its proposal. d. After reviewing the City's proposal, CCEA may request in writing to meet and confer over the decision to contract out services and/or the effects of that decision no later dian fourteen (14) calendar days from the date of CCEA's receipt of the City 's proposal. The first meeting of the meet and confer process shall be scheduled widiin fourteen (14) calendar days of CCEA's written request If CCEA requests to meet and confer over both the decision and effects, decision and effects negotiations shall take place simultaneously. It is understood by the parties that the meet and confer process is not required to be completed in one single meeting e. The negotiations over the decision and/or effects shall be subject to combined impasse procedures. 5. CITY COUNCIL DECISION a. After the meet and confer process has concluded by either reaching agreement or exhausting impasse procedures, the City Council will make its final decision on whether to contract out those services subject to the RFP. 6. This agreement shall be enforceable once executed by the parties and shall be made a part of any subsequent Memorandum of Understanding between die City and CCEA until such time as the parties agree to remove it. This Agreement is entered into on this 7* of February, 2013. On Behalf of CCEA On Behalf of the City of Carisbad By: 7^o'.^-^-^--J^?i^'^ By: ^.fj^^^^fe^^-^^^^ Pam Drew, President Steve Beriiner, Esq Page 2 of 2 Morgen Fry From: Sent: Subject: Follow Up Flag: Flag Status: Council Internet Email Monday, February 24, 2014 3:36 PM FW: city services Follow up Flagged From: Beverly Conner rmallto:beverlvconner(a)roadrunner.cQm] Sent: Monday, February 24, 2014 9:47 AM To: Council Internet Email Cc: diane nygaard Subject: city services Dear Mayor and all council members, I believe we can stay within our budget without outsourcing city services. Beverly Conner 6550 Ponto Dr. Carlsbad, CA 92011 natft! o^i Distribution: City Clerk Asst. City Clerk Deputy Clerk Book Morgen Fi From: Sent: Subject: Follow Up Flag: Flag Status: Council Internet Email Monday, February 24, 2014 3:36 PM FW: park maintenance Follow up Flagged From: Wesley Marx rmailto:wmarx33@)sbcQlobal.nef] Sent: Monday, February 24, 2014 10:42 AM To: Council Internet Email Subject: park maintenance Ton Honorable Mayor and City Council Members, We appreciate the continuing efforts by the Council to maintain a cost-effective govemment However, we are concerned that outsourcing park maintenance will be a case of false economy We support the staff recommendations. Yours sincerely, Judith and Wesley Marx, 2995 Ocean St. Morgen Fi From: Sent: Subject: Importance: Council Internet Email Monday, February 24, 2014 3:38 PM FW: Contracting Out Parks Maintenance- City Council Hearing - 6 Pm Tues Feb 25 High From: John Rodenhausen rmailto:iohn.rodenhausen(aamail.cQm] Sent: Monday, February 24, 2014 11:10 AM To: Council Internet Email Subject: FW: Contracting Out Parks Maintenance- City Council Hearing - 6 Pm Tues Feb 25 Importance: High 1 agree that we all add value to the people of Carlsbad who like myself pay heavy tax's to keep things going fine I have been to the many meetings at Town Hall and wonder with the $ Millions in reserve coming from the tax payers again why would you take av^ay the value in the people who already do a great job. Why would the city officials expect we the tax payers to cast a vote to keep you in office, if you try to take away great services already in place? Please explain. John E. Rodenhausen Carlsbad Hosp East Trail Co-Captain AND The Crossings - Volunteer/ PA 3006 Wintergreen Drive Carlsbad, CA 92008 John.rodenhausen^gmail.com 760-390-7232 Global Cell 760-692-9571 E-Fax From: diane nygaard rmailto:dandd2(Q)peoplepc.mm] Sent: Monday, February 24, 2014 9:49 AM To: Diane Nygaard Subject: Contracting Out Parks Maintenance- City Council Hearing - 6 Pm Tues Feb 25 Importance: High Trail Volunteers On Tuesday night the City Council will decide whether to contract out all or parts of park maintenance services Over 20 employees could potentially lose their jobs. These are good jobs for people without a college degree- jobs with a career path and benefits. These are employees with contact with the public and children that should not just so to the lowest bidder. ^ ^ The staff we work with in trail maintenance are one of the five groups under consideration for contracting out We have already seen the impacts of cost cutting measures with fewer annual trail volunteer events, and longer times to get maintenance issues addressed as there are fewer staff to do the work. This is a time we need to speak In support of the parks maintenance staff who do the day-to-day work that maintains our trails and open space. Tell the council how much we value their work and how important they are to support our volunteer efforts. Please Email the Mayor and Council @ - Attend and speak at the City Council hearing: When : 6 pm Tues Feb 25*^ Where : City Hall -1200 Carlsbad Village Drive Tell them : - You value the work of the parks maintenance staff that support your volunteer efforts and do such a good job maintaining trails and open space - you agree with the staff recommendation: continue to look for efficiencies that do not reduce the quality of services-Carlsbad residence value, trail, open space and parks and do not want to see these services cut. - Carlsbad has over $ 63 m in excess reserve funds- you don't want services cut - that is what we pay taxes for - These are sensitive positions with unsupervised contact with the public and children- these are not services to go to lowest price bidder. The full staff report. Item # 9 can be found here : http://www.carlsbadca.gov/cityhall/meetings/Documents/Regular%20Council%20Agendas/02-25-14AgendaPacket.Ddf Diane Nygaard Carlsbad Trail Volunteer PS I do not live in Carlsbad so my comments will not be helpful on this issue- they need to hear from Carlsbad residents. Morgen Fry From: Sent: To: Subject: Follow Up Flag: Flag Status; Paige DeCino <pdecino@hotmail.com> Monday, February 24, 2014 10:07 AM Council Internet Email Valuable P&R employees Follow up Flagged All Receive - Agenda Item # For the Information of the: CITY COUNCIL . ACM GA CC / Date fjfegjfcf City Manager Dear Carlsbad City Council members. As part of the Carlsbad Community Garden Collaborative, I've had the opportunity to see, up close, the work done by not just the managers of Parks 8i Rec but also the employees out In the field. Just recently, our workday at the new Calavera Schoolhouse Community Garden demonstrated the commitment from employees from all levels as we had an extremely successful day of building the raised beds. The event was well organized, supplies made ready, and department staff participated to make this a real community-city success. I fear that if many of the PSiR jobs are out-sourced, Carlsbad will lose this sense of commitment and closeness that we now enjoy. That sense of community that the city is so proud of, which Includes the city staff, will no longer exist. Please maintain the existing policy of having city staff perform all the needs for the city in this department. Thank you. Paige DeCino Date: cg./6,S7?^ Distribution: City Clerk _j Asst. City Clerk _ Deputy Clerk _ Book Morgen Fry From: Den Kennedy <denkennedy@aol.com> Sent: Tuesday, February 25, 2014 11:08 AM To: Council Internet Email Subject: Contracting out all or parts of park maintenance services Mayor and Council: re: Contracting out all or parts of park maintenance services 1 object to contracting out these services. These are good jobs for people without a college degree-jobs with a career path and benefits. A high percentage of the impacted employees are minorities, many of whom will have little potential to find comparable positions to support their families. 1 agree with the staff recommendation: continue to achieve cost efficiencies in park maintenance without laying off city staff. These are sensitive positions with unsupervised contact with the public and children- these are not services to go to lowest price bidder. Sincerely, Den Kennedy DenKenneClv@aol.com 760.402.9345 7206 Lantana Ter. Carlsbad, CA 92011-4711 Morgen Fry From: Mary James <james.marywanda@gmail.com> Sent: Tuesday, February 25, 2014 1:31 PM To: Council Internet Email Subject: The Crossings &Veteran's Park Trails maintenance workers My name is Mary James and 1 am the volunteer trail captain for the above 2 trails. 1 go out once a week to make sure the trails are tidy and report any issues to Liz and Morgan. In the past 3 years I can not tell you what a prompt response I always get from the maintenance crew that address those issues. Trail erosion and obstruction, broken fencing, large trash disposal, signage and kiosk upkeep, weed removal and trail maintenance. They are always prompt. 1 mean "Johnny on the spot!" Please do not change this crew of ours in any way except keeping them employed. Thank you, Mary James Sent from my iPhone Morgen Fry Prom: Fred's Win7 Catastrophe <regenerative@earthlink.net> Sent: Tuesday, February 25, 2014 2:43 PM To: Council Internet Email Subject: Don't Outsource Parks & Rec Staff, Here's Why! Mayor &. Carlsbad Council, Why not outsource Parks & Rec maintenance staff? They are part of our team of First Responders, for one thing. When we get our next Superstorm, leaving every road blocked by fallen trees, powerlines, and communications lines dont you want your civil servant Parks 8i Rec tree crews to be living in-town? 1 sure do! Who else knows how to safely operate big bucket trucks and chain saws, to open the roads for public safety personnel? Secondly, outsourcing skilled municipal service jobs to for-profit contractors has been shown to provide inferior service at the same or higher cost to municipalities. I sure wouldnt want to be on the Council that voted to pay more, and get worse service! Outsourcing lawn care, tree care, and irrigation monitoring/maintenance means that well have no institutional memory. Ive worked at universities and farms that had a high turnover. Once we had lost the guys and gals who knew which pipes and conduits went where, under which roads, and to which ponds, security lighting, and street lights - it meant that we had to waste time hand-digging until we found the particular whatchyahoosit. Same goes for trees and shrubs. They dont all want the same Irrigation schedule, nor pruning methods. One 20-acre farm I co-managed had a small tornado blow through while 1 was away on vacation. The young kids fllling-in cut-down and removed tree species that had evolved for periodic high winds. They wouldve grown back well, with a slight prune to balance the canopies. I was the old agroforester, and had to sadly explain where the well-intentioned young crew had gone terribly wrong. Lastly, when I took the Carlsbad Citizens Academy classes, we were told that the city wanted to pay our employees enough so that they could afford to live in-town. This cuts down on commute pollution, commute times, and response times in emergencies. Outsourcing does none of these! Instead of considering outsourcing, maybe we need to ensure that city staff can afford to live in-town, and make sure builders and realtors have city staffers in-mind when homes are built and sold. Thanks for your mindful consideration, Fred Chambers 235 Pine Ave 92008 760.505.8500 cell/txt/sms Morgen Fry From: Vicki Geehan <vicki.geehan@psualum.com> Sent: Tuesday, February 25, 2014 4:31 PM To: Council Internet Email Cc: David Geehan Subject: No Outsourcing Please! Mayor 8i Carlsbad Council, Why not outsource Parks &. Rec maintenance staff? They are part of our team of First Responders, for one thing. When we get our next Super storm, leaving every road blocked by fallen trees, power lines, and communications lines, don't you want your civil servant Parks 8i Rec tree crews to be living in-town? 1 sure do! Who else knows how to safely operate big bucket trucks and chain saws, to open the roads for public safety personnel? Secondly, outsourcing skilled municipal service jobs to for-profit contractors has been shown to provide inferior service at the same or higher cost to municipalities. 1 sure wouldn't want to be on the Council that voted to pay more, and get worse service! Outsourcing lawn care, tree care, and irrigation monitoring/maintenance means that we'll have no institutional memory. Once we lose the guys and gals who know which pipes and conduits go where, under which roads, and to which ponds, security lighting, and street lights we have to waste time hand-digging until we find the particular whatchyahoosit. Same goes for trees and shrubs. They don't all want the same irrigation schedule, nor pruning methods. These are examples of why the cost savings being promised by contractors never pan out. This same Council has told us that the city wants to pay our employees enough so that they could afford to live in- town. This cuts down on commute pollution, commute times, and response times in emergencies. Outsourcing does none of these! Instead of considering outsourcing, maybe we need to ensure that city staff can afford to live in-town, and make sure builders and realtors have city staffers in-mind when homes are built and sold. Thanks for your mindful consideration, Vicki and David Geehan 7231 Surfbird Circle Carlsbad, CA 92011 Best Regards, Vicki Geehan 760.889.5834 cell (best way to reach me) 760.476.9279 home vicki. Qeehan(p),Dsualum. com Parks Maintenance Services Request for Proposals Results February 25, 2014 Parks Maintenance Services Scope of Work Categories 1.Trees (19,000) 2.Community parks/school athletic fields (178 acres) 3.Passive parks/facility landscapes (130 acres) 4.Streetscapes/medians/parkways (86 acres) 5.Undeveloped park sites/urban forests (136 acres) & trails (36 mi.) 2 3 Parks Maintenance Operational Assessment 2012 Baker Tilly’s independent review of department –Focused on same level of services at lower cost –Estimated full contracting out savings of $1.7 - $3.9M/year 4 Parks Maintenance Operational Efficiencies Since FY 2011-12 –Reduced workforce by 10.5 full time benefited positions –Lowered annual operating costs by $638,000 –Implemented new maintenance practices Parks Maintenance Services 5 50% 50% FY 10-11 Approximate Distribution of Work Contractors Employees 65% 35% Current Approximate Distribution of Work Contractors Employees 6 Parks Maintenance RFP History First RFP received 4 bids –2 bids declared non-responsive –Rejected all bids Updated and re-issued RFP –Extended advertisement to 60 days –Modified contractor minimum qualifications Second RFP –Received 6 bids (to expire Nov. 2014) 1 2 3 4 5 Note: Bid amounts are based on prevailing wage. * Fully contracted model would require hiring 2 additional Inspectors RFP Results Trees Community Parks, Athletic Fields Passive Parks, Facilities Landscapes Streetscape, Medians, Parkways Undeveloped Parks, Urban Forest, Trails Totals Fully Contracted 708,400$ 1,358,476$ 767,904$ 623,368$ 329,923$ 3,788,071$ Additional Inspectors*40,728 61,092 40,728 30,546 30,546 203,640 Total Cost 749,128 1,419,568 808,632 653,914 360,469 3,991,711 Current Cost 570,521 1,804,198 955,265 702,226 324,998 4,357,209 Difference 178,607$ (384,630)$ (146,633)$ (48,312)$ 35,471$ (365,498)$ Parks Maintenance Evaluation Best Practice Premium City of Carlsbad current mix of contracts/staff –9.16% Per Baker Tilly –10% to 15% City of San Diego managed competition –10% Best Practice Premium Considerations –Meet and Confer •Negotiate decision/effects of contracting – potentially including up to 22 layoffs –Assume redeployment risks – personnel, fleet, equipment, etc. –Contractor commitment to agreed upon terms –Impacts of transitions •Ramp up period •Loss of institutional knowledge –Community connectivity Fully Contracted Model Outcomes –Save $365,498 annually –Meet and Confer •Negotiate decision and/or effects of contracting – potentially including up to 22 layoffs Staff Recommendation Reject all bids –9.16% premium falls below best practice (10% to 15%) –No Meet and Confer: negotiating the decision/effects of contracting – potentially including up to 22 layoffs –Continue trend of continuous improvement in efficiency Alternative Action Council may choose to outsource all or part of the parks maintenance services 12 Continuous Improvement Commitments –Work to close $365,498 gap –Continue to identify and implement efficiencies –Leverage technology to assist parks maintenance administration –Expand contracts to service future improvements Questions? Recommended Action Review the results of Request for Proposals #14-02 – Parks Maintenance Services – and adopt Resolution 2014-033, rejecting all bids and direct staff to continue cost cutting and efficiency measures Alternatively, council may choose to outsource all or part of the parks maintenance services Parks Maintenance Services Requests for Proposal Results