Agenda Item: 5
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 23, 2024
SUBJECT: LMD ZONE 2008-1 LANDSCAPE MAINTENANCE CONTRACT DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams
RECOMMENDED ACTION
City Council:
1. Award a contract to Stay Green Inc. to provide landscape maintenance services for Landscape Maintenance District Zone 2008-1 Major Thoroughfare Medians, for a two-year contract amount not to exceed $3,064,598.
2. 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.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
4. Appropriate a one-time budget increase in Fiscal Year 2023-24 from the Areawide Fund Balance (Fund 367) to expenditure account 3672400-516110 in the amount of $33,920.
5. Appropriate an ongoing budget increase, beginning in Fiscal Year 2024-25, of $407,043 from the Areawide Fund Balance (Fund 367) to expenditure account 3672400-516110.
6. Find that the award of contracts is exempt from the California Environmental Quality Act pursuant to Article 19 – Categorical Exemptions, Section 15301, Existing Facilities, (h) Maintenance of Existing Landscaping.
BACKGROUND
The City of Santa Clarita (City) administers 62 financially independent zones within the Landscape Maintenance District (LMD), providing landscape maintenance services through contracts with private companies. Request for Proposal (RFP) LMD-23-24-26 for the maintenance of LMD Zone 2008-1 (Area Wide Major Thoroughfare Medians) was published and circulated via the City’s e-procurement system BidNet on February 13, 2024.
Unlike a bid procurement, where the recommended contract award is based upon the lowest, most responsive bid, the RFP procurement approach utilizes multiple weighted criteria to evaluate and score proposals. This approach reinforces performance expectations and ensures that vendors dedicate adequate employees to service the contract. While the price for services is a component constituting 10 percent of the weighted evaluation criteria, 90 percent of the evaluation criteria focuses on the overall value provided, including the composition and structure of the contractor’s crew, their schedule to rotate through the maintenance areas, understanding of the specifications, and references.
The following categories comprised the weighted criteria used to evaluate proposals:
• Value Provided - Team Composition/Crew Structure/Rotation Schedule/Response Times (65%)
• Acknowledgement and Understanding of Specifications (15%) • Proposal Amount (10%)
• References and Certifications (10%)
The City transmitted the solicitation to 568 vendors on BidNet, of which 36 vendors downloaded the RFP. Seven companies submitted proposals for consideration. An evaluation panel comprised of staff representing the City’s Special Districts division scored the responses based on a 300-point system, with the results outlined below:
COMPANY LOCATION POINTS
AWARDED
ANNUAL
COST
Stay Green Inc. Santa Clarita, CA 291 $1,413,312
Marina Landscape Services, Inc. Stevenson Ranch, CA 272 $1,448,640 Mariposa Landscapes, Inc. Irwindale, CA 272 $1,582,896 Oakridge Landscape, Inc. Valencia, CA 222 $1,827,468 SGD Enterprises DBA Four Seasons
Landscaping
Van Nuys, CA 200 $1,252,960
Elite Maintenance & Tree Service Clovis, CA 184 $907,368 American Heritage Landscape, Inc. Canoga Park, CA 157 $2,156,880
In reviewing proposals, Stay Green Inc. (Stay Green) was awarded the highest score by the evaluation team. The evaluation team determined that Stay Green’s proposal offered the best overall value to meet the landscape maintenance needs within LMD Zone 2008-1. Stay Green’s proposal demonstrated an excellent “Value Provided” ranking, the highest of all proposers in this category. Stay Green also earned the highest score in the category of “Rotation Schedule” and
second highest in “Team Composition.” Additionally, City staff coordinated with Stay Green to further reduce the proposed monthly maintenance service cost from $1,413,312 to $1,247,040 annually by reducing the proposed crew size of 17 to 15 to more accurately reflect the historical manpower required to meet City standards. While SGD Enterprises DBA Four Seasons Landscaping and Elite Maintenance & Tree Service submitted lower-cost proposals in comparison to Stay Green’s initial cost offering, their scores out of 300 points (200 for SGD Enterprises and 184 for Elite Maintenance & Tree Service, respectively) highlighted to the evaluation team their inadequate proposed manpower, ineffective rotation schedules, and a lack of comprehensive understanding of the City’s expectations for a contract of this magnitude.
Continuing the evaluation process, staff requested revised pricing from the second-highest ranked firms, Marina Landscape Services, Inc., and Mariposa Landscapes, Inc. Analysis of the revised cost files confirmed that Stay Green remained the frontrunner among all proposers. Stay Green also committed to reducing their monthly invoice by $320 per person during inclement weather, resulting in anticipated savings of approximately $30,000 annually. Staff completed a due-diligence review of Stay Green’s professional references and determined their work history meets the City's standards and performance expectations. Based on the above, staff recommends awarding the landscape maintenance contract to Stay Green Inc.
To support these contracts, staff is requesting an ongoing appropriation of $407,043, specific to LMD Zone 2008-1. The requested ongoing base adjustment is reflective of rising fuel and industry labor costs. Moreover, the recommended contract amount is necessary to ensure Stay Green can perform monthly landscape maintenance and repairs, maximize operational efficiencies, and complete such work promptly. Maintenance and repairs include responding to emergencies, irrigation repairs, replacement of irrigation systems, addressing vandalism, and one-time beautification enhancement projects.
The increase in expenditure authority granted by the City Council does not guarantee 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 Stay Green under the contract will continue to require staff review and advanced authorization by the City’s Special Districts division. Furthermore, 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 obligations.
This award of this contract is not subject to California Environmental Quality Act (CEQA) review pursuant to CEQA Guidelines Article 19 - Categorical Exemptions, Section 15301, Existing Facilities, (h) Maintenance of Existing Landscaping. This contract meets the criteria for this exemption because the scope of work falls under existing landscape maintenance.
ALTERNATIVE ACTION
Other action as determined by the City Council.
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FISCAL IMPACT
The recommended action requires a one-time appropriation of $33,920 in the current fiscal year and an ongoing appropriation of $407,043 beginning in Fiscal Year 2024-25 from theArewide Fund Balance (Fund 367) to support recurring landscape maintenance costs associated with the award of this contract. Funding for future years is contingent upon the appropriation of funds by the City Council in the annual budget for such fiscal year.
ATTACHMENTS
LMD Zone 2008-1 RFP Documents (available in the City Clerk's Reading File) LMD Zone 2008-1 Stay Green, Inc. Proposal With Revised Cost File (available in the City Clerk's Reading File)