DATE: January 17, 2023
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT: Adoption of a Resolution Authorizing the City Manager to Negotiate and Execute a Landscape Maintenance Contract for the Downtown Hayward Maintenance with New Image Landscape Company, in an Annual Amount of $156,000, and an Additional $20,000 Annually for Contingencies, and Approve an Increase in the Budget Appropriation and Transfer of $116,402 from the General Fund to the Landscape Maintenance Fund
RECOMMENDATION
That Council adopts a resolution (Attachment II): 1) authorizing the City Manager to negotiate and execute a landscape maintenance contract for Downtown Hayward landscape maintenance with New Image Landscape Company in an annual amount of $156,000, plus an additional $20,000 annually for contingencies; and 2) approve an increase in the annual General Fund budget appropriation by $116,402 to allow for sufficient funding of the contract with New Image Landscape Company.
SUMMARY
A request for quotes (RFQ) was published on October 4, 2022, to seek an experienced and qualified landscape contractor who is specially trained, experienced, and competent to perform Landscape Maintenance in accordance with the terms, conditions and specifications contained in the RFQ for contracted landscape maintenance for the Downtown Hayward area.
The project scope includes 156,000 square feet of landscaped area; a total of four quotes were received. Staff recommends executing the landscape maintenance contract with New Image Landscape Company in an annual amount of $156,000. The term of this agreement will be through June 2024. The City will have the option to extend the contract for up to three one-year extensions through June 2027. If the City chooses to exercise the option to extend the agreement, the annual base amount of $156,000 would be subject to a CPI increase for each extension. Staff also requests approval of an additional annual $20,000 contingency to cover additional services that may be required during the contract term.
BACKGROUND AND DISCUSSION
The City’s Maintenance Services Department Landscape Division manages landscape maintenance contracts for numerous medians on the City’s main thoroughfares. This report seeks approval to award the landscape maintenance service contract for the Downtown Hayward area. The RFQ was developed to provide quality landscape maintenance services to the downtown community.
Four vendors responded to RFQ #2306-092922, with quotes ranging from $74,933 to $178,800. The Municipal Code does not require maintenance contracts of this type to be awarded to the lowest bidder. Selection of a maintenance contractor is based on price, qualifications, experience with similar projects, availability to complete the work in a timely manner, and other project-specific factors. The current landscape maintenance contractor for this area has not provided services that meet the specifications in the current contract. Staff reviewed all four submitted proposals, based on the number of hours (72 per week) estimated to adequately maintain and experience doing municipal landscape maintenance, staff recommends awarding the contract to New Image Landscape Company.
Vendor Bid Amounts
VENDOR
HOURS
MONTHLY
YEARLY
BAYSCAPE LANDSCAPE
39/WEEK
$10,003
$120,036
BRIGHTVIEW
36/WEEK
$ 6,244
$ 74,933
LOS LOZA
60/WEEK
$14,900
$178,800
NEW IMAGE
72/WEEK
$13,000
$156,000
SUSTAINABILITY FEATURES
Downtown Hayward Maintenance includes landscape improvements that have the following sustainability features:
1. Water Conservation - This areas irrigation includes weather-based controllers to conserve water resources based on the weather and amount of rain received.
STRATEGIC ROADMAP
This agenda item contributes to the following Strategic Priorities:
1. Combat Climate Change – Improve sustainable practices and increase green spaces.
2. Support Quality of Life – Optimize City services and clean and beautify the City.
FISCAL AND ECONOMIC IMPACT
The FY 2023 operating budget includes a budget appropriation of $59,598 for landscape maintenance contract services. The contract with New Image Landscape Company is $156,000 annually, plus a $20,000 contingency, totaling $176,000 annually. An increase in General Fund appropriation and transfer to the Landscape Maintenance Fund in the amount of $116,402 is required to fully fund the contract and contingency with New Image Landscape Company in FY 2023.
The annual contract budget appropriation for the New Image Landscape Company contract will be included in the operating budget for each subsequent fiscal year as outlined in the contract. The term of the agreement extends through June 2024, with the option for up to three (3) one-year extensions.
The contract with New Image Landscape Company supports continued landscape maintenance needs along key City corridors, sustaining an overall positive aesthetic in the City, potentially leading to more economic investment along these areas.
NEXT STEPS
If Council approves the attached resolution, the City Manager will execute the agreement with New Image according to the terms described in this report.
Prepared by: Liz Sanchez, Management Analyst II
Recommended by: Richard Nield, Landscape Maintenance Manager Todd Rullman, Director of Maintenance Services
Approved by:
_________________________________
Kelly McAdoo, City Manager