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
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5 WHEREAS, on July 24, 2012 the city council received a report on the parks 8i recreation
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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
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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
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proposals (RFP) was developed to the satisfaction of both the city and the CCEA appointees;
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1^ WHEREAS, the RFP was divided into five specific work categories that define current
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24 WHEREAS, staff reviewed aii of the bids, and recommended that two of the bids be
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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
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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
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the five categories, the best value determined bid for prevailing wage was also the low bid; and
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WHEREAS, the total of these best value bids was $3,991,711.40 per contract year; and
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WHEREAS, since the period of the Baker Tilly operational assessment, the parks
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maintenance section has improved its efficiencies by identifying/implementing new practices,
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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
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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
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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
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operations model; and
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WHEREAS, the above process, impacts, and risks would be limited under the current
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operations model; and
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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.
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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