2005 AGN SEP 06 I23 - Laserfiche WebLink

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ITEM #23 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF SEPTEMBER 6, 2005 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Amer Jakher, P.E., City Engineer QL1 SUBJECT: APPROVE AWARD OF MAINTENANCE AGREEMENT TO EZ SUNNYDAY LANDSCAPE FOR LLMD MAINTENANCE SERVICES IN THE ANNUAL AMOUNT OF $ 196,800. DATE: August 29, 2005 BACKGROUND: The City has maintained the areas within Landscape Lighting and Maintenance District 1 (LLMD) since 1999. Areas within LLMD 2 have been maintained by the City since its creation in 2003. The costs to maintain the areas within LLMD 1 have increased while assessments have remained the same since 1988. As costs of living have increased since the creation of LLMD 1 the costs to maintain the landscaped areas in District 1 are no longer being met by the assessments paid by the property owners. For several years District 1 has operated on a reserve fund, this reserve has been expended as of June 30, 2004. As a result, in fiscal year 2004/2005 a shortfall of $197,295 between assessments and total costs existed. In the current fiscal year, a shortfall has again been absorbed by the general fund totaling $156,741.90. DISCUSSION/ANALYSIS: After reassessing the City's basic maintenance costs two solutions were found to exist that would allow the City to continue to provide the maintenance services for property owners within the LLMDs without incurring a shortfall of funds. These two options are: 1) assess the property owners the actual costs of maintaining the areas or 2) obtain a contractor to provide the service at lower costs. The City balloted the property owners within District 1 to establish a three percent inflator that would allow the City to incrementally meet the actual maintenance costs. The ballots received from the property owners were opened and counted on July 5, 2005 and the results were not in favor of the three percent increase. Simultaneously, staff requested and was granted authority by Council on May 17, 2005 to request bids from contractors that provide landscape maintenance services. The City advertised the request for bids for the maintenance services for LLMD 1 and LLMD 2. On August 3, 2005, five contractors completed the mandatory job walk. Of these five contractors two contractors submitted sealed bids to the City Clerk's Office by August 10, 2005. The bids received were as follows: • EZ Sunnyday Landscape $196,800 • CTAI Pacific Greenscape $300,000. The City requests authorization to award the maintenance agreement for the LLMDs to the lowest bidder, EZ Sunnyday Landscape, in the amount of $196,800 with an option to renew the agreement up to five subsequent years; each year needing Council approval for renewal. Annual assessments received from property owners within LLMD 1 total $53,514 and assessments from LLMD 2 total $261,048; total assessments total $314,562. Thus, the total annual bid amount is 7/10/03 City Clerk's Office Cb