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Agenda Item 27.

City Council Meeting

Meeting Date:	06/18/2019
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 in their fifth of five possible years. These landscape maintenance contracts were initially awarded in July of 2014 as a one year contract with four possible extensions. Staff is requesting the extensions to allow time to work on a joint North Orange County Cities Request for Proposals (RFP) for landscape maintenance services. Staff anticipates being able to award new contracts from the RFP for the 2020-2021 Fiscal Year.

Current contract prices along with a two percent 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.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed this item at their meeting on June 11, 2019 and recommended it for City Council approval.

FISCAL IMPACT/SUMMARY

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, P.E., Director of Public Works