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Finance Committee

Meeting Date:	06/11/2019
FROM:	Bill Gallardo

Subject:

Extend Landscape Maintenance Contracts for One Year in Maintenance Districts Nos. 1, 3, 5 and 6

RECOMMENDATION

Authorize the City Manager to extend the current landscape maintenance contracts for one additional year in Maintenance Districts Nos. 1, 3, 5 and 6.

BACKGROUND/DISCUSSION

The current contracts in Maintenance Districts 1, 3, 5 and 6 with Tropical Plaza Nursery, Inc. are set to expire in July 2019. These landscape maintenance contracts were initially awarded in July of 2014 as a one year contract with four possible extensions. Four extensions have been issued and the contracts are now in their fifth year of five possible years.

However, there has been recent interest in pursuing a joint contract for landscape maintenance services by a number of north Orange County cities. To allow time to work on a joint Request for Proposals (RFP), staff is requesting for a one year time extension for these contracts. Staff anticipates being able to award new contracts from the RFP for the 2020-21 Fiscal Year.

Current contract prices, along with a 2% requested CPI increase are shown in the table below. The CPI for the 2018 twelve month period was 3.2% which is the maximum increase based on our current agreement.

District	Current Contract	2% CPI Increase	Total Contract Price
District 1	$14,003	$280	$14,283
District 3	$23,759	$475	$24,234
District 5	$28,527	$571	$29,098
District 6	$77,187	$1,544	$78,730

Tropical Plaza Nursery, Inc. has successfully completed the landscape maintenance in the districts for over fifteen years and staff recommends the one year extension until the new RFP is completed.

SUMMARY/FISCAL IMPACT

The current contracts are in the fifth year of five possible years. Staff is requesting to extend the contracts one additional year until a joint RFP can be completed.

There is no General Fund impact with this action. Funding is available in each of the District's budgets through individual assessments for the maintenance contracts and other operational costs. Funds 341, 343, 345 and 346 will be used.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Bill Bowlus, Public Works Superintendent
Concurrence: Tony Olmos, Director of Public Works