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SR 10-10-2017 3A City Council Report City Council Meeting: October 10, 2017 Agenda Item: 3.A 1 of 5 To: Mayor and City Council From: Susan Cline, Director, Public Works, Public Landscape Subject: Contractual Services Agreement for Water Feature and Pond Maintenance Services and Repairs Recommended Action Staff recommends that the City Council: 1. Award Bid #4276 to California Waters, LLC, a California-based company, for water feature and pond maintenance services and repairs for the Public Landscaping Division; 2. Authorize the City Manager to negotiate and execute an agreement with California Waters, LLC in an amount not to exceed $287,004 for one year, with four additional one-year renewal options (including 4% increases for years 2 and 3, a 5% increase for year 4, and a 6% increase for year 5), for a total amount not to exceed $1,567,358 over a five-year period, with future year funding contingent on Council budget approval. Executive Summary The City oversees the routine maintenance and repair of seven water features and the Douglas Park pond. Since this is a specialized activity, these services are performed by a contractor to provide maintenance two to four times per week at each location, repairs as needed and annual maintenance, which includes draining, thoroughly cleaning, inspecting and refilling the locations. Staff conducted a competitive bid process and recommends California Waters, LLC as the lowest bidder for this project for a total amount not to exceed $287,004 for one year, with four additional one-year renewal options (including 4% increases for years 2 and 3, a 5% increase for year 4, and a 6% increase for year 5), for a total amount not to exceed $1,567,358 over a five-year period, with future year funding contingent on Council budget approval. Background In 2014, staff executed a contractual services agreement for water feature maintenance services through an informal bid. On June 23, 2015, Council approved two one-year 2 of 5 renewal options with California Waters under the 2014 contract (Attachment A). The second one-year renewal option expired June 30, 2017. To ensure services were not interrupted, an interim blanket purchase order was issued to the existing vendor until a new agreement could be executed. Discussion California Waters, LLC would service the Douglas Park pond and seven water features at the five sites listed below: 1. Three water features at Tongva Park; 2. One water feature at City Hall’s Ken Genser Square; 3. One water feature at the Public Safety Facility; 4. One water feature at the Santa Monica Main Library; and 5. One water feature at the Annenberg Community Beach House. Work would include the following:  Maintenance two to four times per week at each location, which can include removing submerged and floating debris, vacuuming algae, cleaning interior and exterior concrete surfaces or tile, and ensuring proper operation of several mechanical devices;  Repairing or replacing pumps, motors and lights; and  Annual maintenance, which includes draining, thoroughly cleaning, inspecting and refilling the locations. Vendor/Consultant Selection On June 5, 2017, the City published Notices Inviting Bids for water feature and pond maintenance services and repairs in accordance with City specifications. The bid was posted on the City's on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 33 vendors downloaded the bid. Four bids were received and publicly opened on June 30, 2017. 3 of 5 Bidder Bid Amount (Maintenance) Bid Amount (Repairs)* Bid Total Advanced Aquatic Technology, Inc. $227,590 *$86,000 $313,590 Aqua Bio Environmental Technologies, Inc. $402,620 *$86,000 $488,620 California Waters, LLC $201,004 *$86,000 $287,004 Commercial Aquatic Services, Inc. $246,840 *$86,000 $332,840 *The bid amount of $86,000 listed for repairs is based on repair costs City staff incurred from FY 2016-17, including an estimated increase for prevailing wage. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product and compliance with City specifications. Based on these criteria, California Waters, the lowest bidder, is recommended as the best bidder. One protest was received on June 29, 2017 from the Water Fountain Guy (Mr. Dale Sanchez). The protest indicated that he was disqualified from bidding on Bid No. 4276 for failure to be attend all job walk locations as required by the Notice Inviting Bids (“Notice”). The Notice advised that bidders were required to attend all job walk locations. Since Mr. Sanchez did not attend all job walk locations, he was disqualified from submitting a bid. On August 17, 2017, the Finance Director, after conducting an independent review of the decision to disqualify Mr. Sanchez, denied the protest, finding that Mr. Sanchez was properly disqualified from submitting a bid since he did not attend all job walk locations. Per the City's Purchasing Ordinance, the Finance Director's decision is the final determination. Method of Service On January 13, 2015, Council adopted a Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (Attachment B). This policy includes criteria under which contracting for a public service is appropriate. The previous contract was executed prior to the study at an amount below the Council approval threshold and 4 of 5 therefore was not considered as part of the study. Staff has reviewed the service needs and recommends providing water feature and pond maintenance services through a contractor due to the following criteria: Specialized / technical expertise: The service requires technical or special expertise that City staff could not or does not provide and is outside of the core service mission of the department. Capital / equipment requirements: The service requires significant equipment or other capital investment and maintenance, for which a private contractor could amortize the costs or maximize use of the equipment. Financial Impacts and Budget Actions The agreement to be awarded to California Waters, LLC is for an amount not to exceed $1,567,358. Funds of $287,004 are available in the FY 2017-18 budget in the Public Works Department. The agreement will be charged to the following accounts: 014982.555010 $194,336 11497.544010 $6,668 014982.544010 $71,000 11497.533213 $15,000 TOTAL $287,004 Future year funding is contingent on Council budget approval. Prepared By: Amber Carranza, Administrative Analyst Approved Forwarded to Council 5 of 5 Attachments: A. June 23, 2015 Staff Report (web link) B. January 13, 2015 Staff Report (web link) C. California Waters_Oaks Form FY1718 REFERENCE:    AGREEMENT NO. 10558  (CCS)