Agenda Item: 10
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: December 13, 2022
SUBJECT: LANDSCAPE MAINTENANCE DISTRICT CONTRACTS FOR
ZONES T2, T3, T4, T5, T6, AND T7
DEPARTMENT: Administrative Services
PRESENTER: Keith Miller
RECOMMENDED ACTION
City Council:
1. Award a two-year contract to Venco Western, Inc., to provide landscape maintenance services to Landscape Maintenance District Zone T-2 (Old Orchard) for an annual base amount of $86,388, plus an additional $42,000 in annual contract expenditure authority to address unforeseen maintenance and repairs, for a total two-year amount not to exceed $256,776.
2. Award a two-year contract to Venco Western, Inc., to provide landscape maintenance services to Landscape Maintenance District Zone T-3 (Valencia Hills) for an annual base amount of $83,952, plus an additional $35,000 in annual contract expenditure authority to address unforeseen maintenance and repairs, for a total two-year amount not to exceed $237,904.
3. Award a two-year contract to Venco Western, Inc., to provide landscape maintenance services to Landscape Maintenance District Zone T-4 (Valencia Meadows) for an annual base amount of $81,024, plus an additional $23,376 in annual contract expenditure authority to address unforeseen maintenance and repairs, for a total two-year amount not to exceed $208,800.
4. Award a two-year contract to Venco Western, Inc., to provide landscape maintenance services to Landscape Maintenance District Zone T-5 (Valencia Glen) for an annual base amount of $95,892, plus an additional $25,000 in annual contract expenditure authority to address unforeseen maintenance and repairs, for a total two-year amount not to exceed $241,784.
5. Award a two-year contract to Venco Western, Inc., to provide landscape maintenance services to Landscape Maintenance District Zone T-6 (Valencia South Valley) for an annual base amount of $58,632, plus an additional $20,000 in annual contract expenditure authority to address unforeseen maintenance and repairs, for a total two-year amount not to exceed $157,264.
6. Award a two-year contract to Venco Western, Inc., to provide landscape maintenance services to Landscape Maintenance District Zone T-7 (Valencia Central and North Valley) for an annual base amount of $146,112, plus an additional $60,000 in annual contract expenditure authority to address unforeseen maintenance and repairs, for a total two-year amount not to exceed $412,224.
7. Authorize one-time appropriations from Landscape Maintenance District Fund 357 totaling $116,192, as identified in Attachment A, to support recurring landscape maintenance services expenditures associated with the recommended contract award commencing in Fiscal Year 2022-23.
8. Authorize ongoing appropriations from Landscape Maintenance District Fund 357 totaling $205,380, as identified in Attachment B, to support recurring landscape maintenance services expenditures associated with the recommended contract award commencing in Fiscal Year 2023-24.
9. Authorize the City Manager or designee to execute up to three additional, one-year renewal options beginning in year three, not to exceed the annual contract amount, inclusive of as- needed expenditure authority, plus an adjustment in compensation consistent with the appropriate Consumer Price Index, upon request of the contractor, and contingent upon the appropriation of funds by the City Council in the annual budget for such fiscal year.
10. Authorize the City Manager or designee to execute all contracts and associated documents, modify the awards in the event impossibility of performance arises, and execute all documents subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) administers 61 financially independent zones within the Landscape Maintenance District (LMD), providing landscape maintenance services through contracts with private companies. Request for Proposal (RFP) number LMD-22-23-13, for the maintenance of LMD Zone T2 (Old Orchard), Zone T3 (Valencia Hills), Zone T4 (Valencia Meadows), Zone T5 (Valencia Glen), Zone T6 (Valencia South Valley), and Zone T7 (Valencia Central and North Valley) was published and circulated via the City’s Bidnet system on September 9, 2022.
Unlike a bid procurement, where the recommended contract award is based upon the lowest, most responsive bid, this procurement utilizes multiple weighted criteria to evaluate and score proposals. While the price for services is a component constituting 10 percent of the weighted evaluation criteria, 65 percent of the evaluation criteria focuses on the composition and structure of the contractor’s crew, their schedule to rotate through the maintenance areas, and overall
value.
The following categories comprised the weighted criteria used to evaluate proposals.
• Value Provided (30%)
• Rotation Schedule (20%)
• Team Composition/Crew Member Structure (15%)
• Acknowledgement and Understanding of Specifications (15%) • Proposal Amount (10%)
• References & Certifications (10%)
A multiple weighted criteria procurement reinforces performance expectations and works to ensure that vendors dedicate adequate employees to service the contract. To improve maintenance standards and enforce accountability, the solicitation also includes provisions to impose payment reductions for poor performance should the contractor fail to meet their maintenance schedule.
The City transmitted the solicitation to 340 vendors, including the Santa Clarita Valley Chamber of Commerce and the Valley Industrial Association, of which 25 vendors downloaded the RFP.
Four companies provided proposals for consideration with the results below.
Venco Western, Inc. (Venco) achieved the highest score, with the evaluation team determining their proposal offered the best overall value. Venco’s proposal was distinguished by the overall composition and structure of their crew, their approach for rotating personnel throughout each assigned LMD zone, and a schedule of maintenance services encompassing 344 total weekly man hours. Further, while multiple companies identified comparable crew manhours for the recurring maintenance, Venco’s proposal represents the greater value as their base operational cost is considerably lower than the number two rated proposal.
As part of this action, staff is requesting one-time appropriations of $116,192 from Fund 357 to support recurring landscape maintenance services associated with the recommended contract award through the end of Fiscal Year 2022-23, as listed in Attachment A. Staff is also requesting ongoing appropriations of $205,380 from Fund 357 commencing in Fiscal Year 2023-24 to support recurring landscape maintenance costs as listed in Attachment B.
The request for additional appropriations is a direct result of how prevailing wage increases have affected the overall landscape labor market and inflationary impacts upon fuel and material costs.
This impact is evidenced by the range of competitive pricing provided by the four responding vendors. In this instance, staff’s recommended contract award reflects an overall increase of 48
PROPOSAL COMPANY LOCATION BID
AMOUNT
POINTS
AWARDED
Proposal 1 Venco Western, Inc. Oxnard, CA $552,000 277.66 Proposal 2 Oakridge Landscape, Inc. Santa Clarita, CA $722,016 251.67 Proposal 3 American Heritage Landscape, Inc. Canoga Park, CA $911,400 243.34 Proposal 4 Mariposa Landscapes, Inc. Irwindale, CA $919,872 216.00
percent for the same level of service, as compared to pricing when these same zones were competitively awarded in 2017.
In order to maximize operational efficiencies and ensure as-needed work and repairs are completed in a timely manner, staff recommends increasing the annual expenditure authority associated with each landscape maintenance contract as detailed in the recommended action section of this report. As-needed work constitutes, but is not limited to, responding to emergencies, repairs or replacement of irrigation systems which are damaged or have reached the end of their useful service life, replacement of dead plant material, addressing vandalism, and one-time beautification enhancement projects.
The increase in expenditure authority granted by the City Council does not represent any guarantee of additional compensation under the terms of the recommended contract. Beyond retaining the discretion to utilize alternative contractors as deemed necessary, all unscheduled repair work or one-time enhancement projects performed by Venco will continue to require staff review and advanced authorization by the City’s Special Districts Division.
Finally, staff has completed a due-diligence review of Venco’s professional references and determined their work history meets the City's standards and performance expectations. Based on the above, staff recommends awarding this landscape maintenance contract to Venco.
ALTERNATIVE ACTION
1. Do not award contract to Venco Western, Inc.
2. Other action as determined by the City Council.
FISCAL IMPACT
The recommended action requires a one-time appropriation of $116,192 from Landscape Maintenance District Fund 357 to support recurring landscape maintenance services associated with the recommended contract award through the end of Fiscal Year 2022-23. This action also requires an ongoing appropriation of $205,380 from Fund 357 commencing in Fiscal Year 2023- 24 support recurring landscape maintenance costs associated with the award of this contract.
ATTACHMENTS
LMD Requested One-Time Budget Appropriations - Attachment A LMD Requested Ongoing Budget Appropriations - Attachment B RFP#LMD-22-23-13 Final (available in the City Clerk's Reading File) Response File Zones T2, T3, T4, T5, T6, T7 Venco Western (available in the City Clerk's Reading File)