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Home My WebLink AboutUnbudgeted Expenditure - Budget Appropriation Revision of $1 REQUEST FOR ACTION 5�� ' -Dip w 0 MEETING DATE: DEPARTMENT ID NUMBER: Council/Agency Meeting Held: 7 3a o,ys Deferred/Continued to: c779. %4144- UAppro,ved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: Department ID Number: REQUEST FOR ACTION SUBMITTED TO: HONORABLE MEMBERS OF CITY COUNCIL c _. �g SUBMITTED BY: MICHAEL T. UBERUAGA, CITY ADMINISTRATOR en PREPARED BY9 'LES JONES, DIRECTOR OF PUBLIC WORKS SUBJECT: BUDGET APPROPRIATION REVISION `•= "' Statement of Issue,Funding Source,Recommended Action,Alternative Action,Analysis,Environmental Status,Attachment(s) Statement of Issue: The Park, Tree and landscape Division of Public Works Department budgeted $281,095.20 for Park Maintenance Contract Services and $77,016.00 for Landscape Maintenance Contract Services in the FYB for 1996/97. The budget was adopted prior to going out for bids as recommended in the "Privitization Opportunities" study by the David M. Griffith Company. The lowest private bid of$376,016.76 is $17,905.56 more than the budgeted funds of$358,111.20, approved by the City Council. Funding Source: ss x Unappropriated Fund Balance. tfl� x ..r,cs rrr x. RCA.DOC -2- 04/28/97 8:50 AM t REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: Recommended Action: Approve the Budget Appropriation of$17,905.56 from the Unappropriated Fund Balance to the Park, Tree and Landscape Division Budget: 1) Increase Account# E-AA-PW-544-3-90-00 - $14,054.76 2) Increase Account# E-AA-PW-541-3-90-00 - $ 3,850.80 TOTAL ADDITIONAL FUNDS: $17,905.56 Alternative Action(s): Do not approve the Budget Appropriation Revisions of$17,905.56 in the Recommended Action, and require existing staff to maintain areas now contracted, which will cause a substantial reduction in quality of service. The additional time necessary to provide service will jeopardize safety of park users and vehicle movement on City arterial highways relative to plant overgrowth obstructing sight distance of on coming traffic. Analysis: The David M. Griffith Company, Inc. was hired to study various Public Works Divisions including Park, Tree and Landscape to analyze whether any of the services should be bid out for cost effective delivery of services. Various Park, Tree and Landscape services have been contracted with private business for over 20 years, however, DMG recommended a different combination of services be put out to bid. Staff prepared bid documents which were approved by the City Council "Managed Competition Committee." Subsequent to approval, staff requested and received bids for proposed services which were submitted for review to the Committee. The lowest bid was (52.4%) $187,678.00 greater than budgeted funds for the services. The "Managed Competition Committee," directed staff to reject all bids at its March 21, 1997 meeting and recommended staff accept the negotiated low bid from Landscape West, Inc. as found in their letter dated March 13, 1997. (Item No. 2) The negotiated bid is 5% greater than funds budgeted, however, the contractor's bid is for two and one half (2-1/2) years, from April 1, 1997 to October 1, 1999 at $376,016.76 per year. The City's bid was $374,436.0, $1,580.76 less than the contractor. However, the value of contracting to provide competitive delivery of City Services far outweighs the savings. RCA.DOC -3- 04/29/97 12:00 PM i REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: Environmental Status: N/A AttachmentW: ity Clerk's age Number 1) Landscape West, Inc. letter and bid proposal 2) Fiscal Impact Statement RCA.DOC -4- 04/28/97 8:50 AM City of Huntington Beach LANDSCAPE WEST, INC. MAa 1 3 j996 March 13, 1997 '4� �1v�islbiv o`Pust.ic wo�its Mr. Daryl Smith "' Superintendent of Park Tree and Landscape Division CITY OF HUNTINGTON BEACH 17581 Gothard St. .'iuntincaon Beach, CA 92648 Fax: 714/ 375-5135 Re: Maintenance of City Landscape Facilities & Maintenance of City Park Facilities Dear Daryl: Landscape West, Inc., has maintained the park and landscape facilities for various sites for the city of Huntington Beach for the last 11 years. As you are aware Landscape West, Inc., has not had an increase in their contract rates for the last four years. Recently Landscape West, Inc., submitted a bid in July of 1996 for both landscape maintenance facilities and park facilities. Landscape West, Inc., was the successful low bidder althouuh I understand that the city council has rejected all bids and requested that you negotiate with our company for landscape maintenance services. I am submitting to you the following proposals, they are as follows: 1. Currently, we have a contract for the Parks for 5281,095.20 and for the Facilities for $77,016.00. Effective April 1, 1997, we would like a five percent (5%) increase to the current contract prices, and if the contract is a year to year contract there would be a five percent (5%) per year increase. Year Parks Facilities 1 04/1/97 - 9/30/97 5295.149.96 $80,866.80 2 10/1/9.7 - 9/30/98 5309.907.46 $84.910.14 3 10/1/98 - 9/30/99 $325,402.84 $89,155.65 4 10/1/99 - 9/30/00 5341,672.99 $93,613.44 5 10/1/00 - 9/30/O1 5358,756.64 $98,294.12 ,X 2. Currently, we have a contract for the Parks for $281,095.20 and for the Facilities for $77,016.00. Effective April 1, 1997, we would like a five percent (5%) increase to the current contract prices, the contract would be a five year contract, the first three years of C. the contract would have no increase above the initial five percent (5%), in year four and five �R9? there would be a cost of living increase based on the CPI. Year Parks Facilities 1 04/1/97 - 9/30/97 $295,149.96 $80,866.80 2 10/1/97 - 9/30/98 $295,149.96 $80,866.80 3 10/1/98 - 9/30/99 $295,149.96 $80,866.80 4 10/l/99 - 9/30/00 $295,149.96 + CPI $80,866.80 + CPI 5 10/1/00 - 9/30/01 Year"4" price+ CPI Year"4" price+ CPI 950 N. Tustin Avenue, Anaheim, CA 92807 a 714/632-9770 * FAX 714/632-9477 March 13, 1997 City of Huntington Beach Page Two 3. Currently, we have a contract for the Parks for $281,095.20 and for the Facilities for $77,016.00. Effective October 1, 1997 we would like an eight percent (8%) increase to the current contract prices the contract would be on a year to year basis, and would have a five percent (5%) per year increase. Year Parks Facilities 1 10/1/97 - 9/30/98 S303,582.82 $83,177.28 2 10/1/98 - 9/30/99 S318 761.97 $87,336.15 3 10/1/99 - 9/30/00 S334,700.07 $91,702.96 4 10/1/00 - 9/30/01 S351,435.08 $96,288.11 5 10/1/01 - 9/30/02 S369,006.84 $101,102.52 4. Currently, we have a contract for the Parks for $281,095.20 and for the Facilities for $77,016.00. Effective October 1, 1997, we would like an eight percent (8%) increase to the current contract prices, the contract would be for five years and have no increase for the first three years, and a cost of living, CPI increase for years four and five. Year Parks Facilities 1 10/1/97 - 9/30/98 S303,582.82 $83,177.28 2 10/1/98 - 9/30/99 S303,582.82 $83,177.28 3 10/1/99 - 9/30/00 S303,582.82 $83,177.28 4 10/1/00 - 9130101 S303,582.82 + CPI 1$83,177.28 + CPI 5 10/1/01 - 9/30/02 Year"4" price+ CPI Year"4" price+ CPI Daryl, any of these proposals would be acceptable to us as you are aware, the longer term, we can have a contract with your city, the easier it is for us to amortize and expense off our equipment costs. It would be my preference to enter into a contract for a five year term. Please advise the desire of your City Council. If you have any further questions, please feel free to contact me. Sincerely, LANDSCAPE WEST, INC., by, Barry L. Konier President BLK/mvw HB31397.WPD CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Michael T. Uberuaga, City Administrator From: Robert J. Franz, Deputy City Administrator Subject: FIS 97- 31 Appropriation Landscape Services Date: April 21, 1997 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for Appropriation for Landscape Services. If the City Council itproves this request, the estimated unreserved, and signate Fun Balance of the General Fund at September 30, 19 11 el du d to $5,177,7 bert J. z, Deputy City Administrat r Adopted Current Fund Balance-General Fund Budget Estimate Beginning Fund Balance $3,227,959 $6,847,000 Budget Surplus/(Shortfall) 356,590 1,267,831 PERS Refund 1,140,000 Less Approved One-Time Costs (1,350,197) Less Approved Transfers (2,700,000) Less: Pending Budget Amendments (9,000) Less FIS 97-31 (17,906) Estimated 9/30/97 Balance $3,584,549 $5,177,728 Fund Balance-General Fund $5,500,000 - — — $5.000.000 - $4,500,000 $4,000,000 -- — _ $ I $3,500,000 5,177,728 $3,000,000 $3,584,549 $2,500,000 $2,000,000 - -� Adopted Revised Budget Estimate G:VWCCTGgFI S.XLS]fis9731