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ITEM #17 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF SEPTEMBER 5, 2006 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: AMER JAKHER, P.E.; PW DIRECTOR/ CITY ENGINEER SUBJECT: APPROVE AWARD OF MAINTENANCE AGREEMENT TO EZ SUNNYDAY LANDSCAPE FOR LLMD MAINTENANCE SERVICES IN THE ANNUAL AMOUNT OF $ 2059500. DATE: August 29, 2006 BACKGROUND: Between 1999 and 2005, the City of Colton maintained the areas correspondent to the Landscape Lighting Maintenance District (LLMD) 1 and 2. The larger of the two districts is LLMD 1. This LLMD does not have an escalator that allows for cost of living adjustments, thus the revenues received for the maintenance of this LLMD are based upon assessed costs relevant to the year it was established, 1988. To decrease maintenance costs the City bid the maintenance of these LLMDs and found that a contractor, EZ Sunnyday Landscape, was able to provide these services at a cost savings to the City. DISCUSSION/ANALYSIS: On September 6, 2006, council approved the award of the maintenance agreement for LLMD 1 and 2. The approved agreement allowed for an option to renew up to five additional terms; the original agreement term is October 2005 to October 2006. Staff request the agreement be awarded for a second term — October 2006 to September 2007. During fiscal year 2005/2006 maintenance of additional areas were incorporated into the LLMDs. These areas are: 1) improvements made to medians along South La Cadena Drive, located within LLMD 1, and 2) Tract 16315 released by the contractor into LLMD 2. Staff requests the original bid of $196,800, awarded to EZ Sunnyday Landscape in September 2005 be amended to include maintenance of these two areas; the proposed agreement for the second term would be awarded in the not to exceed amount of $205,500. FINANCIAL IMPACT: The award of this agreement will not have an impact on general fund. These services will be paid from account 702-6150-6210-2350($145,500) and account 701-6150-6220-2350($60,000); the budget for LLMD 1 and LLMD 2 were approved by Council on June 20, 2006. ENVIRONMENTAL IMPACT: Not applicable. CONFLICT OF INTEREST: Exact Business Name: EZ Sunnyday Landscape President or Equal: Jackie Zecena 7/10/03 City Clerk's Office Cb