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HomeMy WebLinkAboutAGENDA REPORT 2004 0616 CC REG ITEM 10FTO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT The Honorable City Council ITEM 10- F". t or Mary K. Lindley, Director of Community Services May 3, 2004 (CC Meeting of June 16, 2004) SUBJECT: Consider Contract Extensions for Sunridge Landscape Services and Venco Western for Landscape Maintenance Services SUMMARY The City Council is being asked to extend its contracts with Sunridge Landscape Services (Sunridge) and Venco Western ( Venco) for various landscape maintenance services throughout the City. Both Sunridge and Venco currently serve as the City's two landscape maintenance contractors. They were both awarded new contracts in June 2003. Their contract terms expire June 30, 2004, but they both have three, one -year extension provisions that the Council is being asked to exercise. DISCUSSION Sunridge Sunridge Landscape Services, under the ownership of Craig Loft, has provided landscape maintenance services to the City since before 1988 (prior to 1990 the company was called Turf Pro) . In 1996, the City conducted a formal bid process and Sunridge was awarded a four -year contract as the lowest qualified bidder. In 2000, the City approved a new contract with Sunridge that had extension periods through June 2003. Finally, in June 2003, the City entered into a new one -year contract, with three optional one -year term extensions. The City's contract with Sunridge covers maintenance of all City landscaped areas in parks, parkways and medians, and other miscellaneous properties including, but not limited to, the Civic Center, Metrolink Station, the Buffer Zone, Public Works M: \MLindley \Landscp Zones \landscape contract extension 2004 ccagd.doc 000172 The Honorable City Council June 2, 2003 Page 2 Office, Engineering and Building and Safety Office, and some Moorpark Redevelopment Agency property (661 Moorpark Avenue and property along High Street) . The only areas excluded from its contract are the landscaped areas along Miller Parkway (parkways and medians) and a parkway on the east side of Spring Road, south of Peach Hill Road. These areas are maintained by Venco Western. Additionally, Sunridge's contract requires them to open, clean, and stock all park restrooms; open the park gates at the AVCP access road, AVCP tennis courts, Miller Park tennis courts, Tierra Rejada Park tennis courts, and the Shadyridge Buffer Zone, Monday through Friday. Going back to 1991, Sunridge sought and received only three cost -of- living increases, as follows: July 1995 - 2 percent, July 2000 - 5 percent, and July 2003 - 3 percent. While over the past 10 years (1994 - 2003) , the annual average Consumer Price Index (CIP) for the Los Angeles- Riverside - Orange County area has increased 22.8 percent, Sunridge has received a combined cost - of- living increase of 10 percent over the same period. This year, Sunridge is requesting that the City adjust its compensation by specific landscape areas, which amounts to an overall increase of 12.97 percent. In a letter to the City, Mr. Loft, Sunridge owner, states that he has incurred significant cost increases and cites the following examples: Workers' Compensation (400); minimum wage impacts (29o); fuel cost increases (360); liability insurance increases since September 11, 2001 (180); and fertilizer costs, a product of oil (220). Additionally, Mr. Loft believes that the scope of work in some landscaped areas has grown as the landscape has matured and the general use in the parks has increased. In particular, Mr. Loft cites Poindexter Park as one example in which the daily use by the public has resulted in a greater workload than had been anticipated by the City or by Sunridge when the maintenance cost was arranged. As a result, Sunridge is devoting more man -hours and resources than was budgeted, at a loss to the company. If the Council were to approve the increase requested by Sunridge, it would amount to $57,084. The total annual contract cost would increase from $533,808 to $590,882. Sunridge has carried out its contract obligations in a more than satisfactory manner, and has demonstrated on numerous occasions 0001"73 The Honorable City Council June 2, 2003 Page 3 a willingness to assist the City by performing beyond its contractual responsibilities at no additional cost to the City. Where other landscape maintenance contractors bill for every extra work assignment, Sunridge does not. As one example, Sunridge goes out of its way to provide extra maintenance and hardscape cleaning on High Street before Country Days. Additionally, Mr. Loft has come out on the day of Country Days to ensure that everything looks good, and he has never billed the City for this effort. Sunridge has been quick to provide the City with assistance in eliminating hazards, such as downed trees, in inclement weather, again, without cost to the City. Sunridge is quick to respond to irrigation problems at any time of the day and willingly assists staff with the review of new development landscape plans (at no cost) . For this reason, staff believes that a cost increase to the Sunridge contact is appropriate. Because the City is facing decreased revenues as a result of the state's budget situation, and the total impacts are uncertain, staff does not believe this is the appropriate time to adjust Sunridge's contract costs the full amount being requested. A more fiscally feasible rate adjustment would be 8 percent. The proposed FY 2004/05 budget presented to the Council for consideration included an 8 percent increase for Sunridge. Mr. Loft has agreed that an 8 percent increase would relieve his situation and he would accept the increase with no other changes to his contract. Venco In 2000, the City awarded a contract to Venco Western as the successful low bidder, for the maintenance of landscape areas on Miller Parkway, the north side of Tierra Rejada Road, between Miller Parkway and Spring Road, and a small portion of Spring Road (southeast parkway) . To date, Venco's performance has been satisfactory. Over the past year, it has made performance corrections required by staff. From July 2000 to July 2002, Venco did not receive a cost -of- living increase. In July 2003, the Council approved a cost of living increase tied to the Landscape and Lighting Assessment increase of 3 percent. The CPI adjustment between December 2002 to December 2003 (the time period used to calculate the landscape assessment) is 1.8 percent. Since Venco is not facing 0001'74 The Honorable City Council June 2, 2003 Page 4 the same situation as Sunridge, i.e., Venco does not maintain any parks or areas impacted by public use, and the landscape it is responsibility for is still fairly young, staff is recommending that they be offered a CPI adjustment consistent with the actual CPI increase of 1.8 percent. This would increase their contract by $841 annually, for a total contract price of $47,544. STAFF RE CODMENDAT I ON Approve one -year contract extensions, including CPI adjustments, with Sunridge Landscape Services, Inc. and Venco Western, Inc. for landscape maintenance services as described in this report and authorize the City Manager to execute the amendments on behalf of the City. 000175