Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/06/2017
ITEM NO: 10
DATE: MAY 24, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIVE YEAR AGREEMENT
FOR SERVICES WITH JENSEN LANDSCAPE SERVICES, LLC (JENSEN) FOR
LANDSCAPE MAINTENANCE SERVICES IN AN AMOUNT NOT TO EXCEED
$123,790 PER YEAR INCLUDING A TEN PERCENT CONTINGENCY AND
AUTHORIZE AN ANNUAL INCREASE BASED ON THE CONSUMER PRICE
INDEX SUBJECT TO TOWN COUNCIL BUDGET APPROVAL EACH
SUBSEQUENT YEAR.
RECOMMENDATION:
Staff recommends that the Town Council authorize the Town Manager to execute a five year
Agreement for Services (Attachment 1) with Jensen Landscape Services, LLC (Jensen) for
landscape maintenance services in an amount not to exceed $123,790 per year including a ten
percent contingency and authorize an annual increase based on the Consumer Price Index
subject to Town Council budget approval each subsequent year.
BACKGROUND:
As part of the Adopted FY 2017/18 Operating Budget, landscape maintenance funds are
provided for mowing, edging, and landscape maintenance in Town parks, median islands, and
special assessment district areas.
The Town of Los Gatos has utilized contractual landscape maintenance services for routine
maintenance to supplement Town staff, allowing the Parks and Public Works staff to focus on
providing day to day operational services within the parks system. Staff reviews such
maintenance contracts routinely to ensure that the contract servi ces align with the Town’s
needs, that the contracts are competitively priced, and that the service provider continue to
PAGE 2 OF 4
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIVE YEAR AGREEMENT
FOR SERVICES WITH JENSEN LANDSCAPE SERVICES, LLC (JENSEN) FOR
LANDSCAPE MAINTENANCE SERVICES IN AN AMOUNT NOT TO EXCEED
$123,790 PER YEAR INCLUDING A TEN PERCENT CONTINGENCY AND
AUTHORIZE AN ANNUAL INCREASE BASED ON THE CONSUMER PRICE INDEX
SUBJECT TO TOWN COUNCIL BUDGET APPROVAL EACH SUBSEQUENT YEAR.
MAY 24, 2017
S:\COUNCIL REPORTS\2017\06-06-17\10 - Jensen Landscape Maintenance\Staff Report Landscape Maintenance Services Final.docx 6/1/2017 3:20 PM MM
BACKGROUND (cont’d):
meet the Town’s expectations and contract terms. The maintenance agreement with the
Town’s current provider, LandCare, has been in place for three years and expires on June 30,
2017.
DISCUSSION:
Staff prepared a Request for Proposals (RFP) for the following landscape maintenance service
categories:
Median island maintenance
Turf mowing
Landscape and lighting district maintenance
Additional as-needed services (e.g. irrigation repairs, turf aeration, and fertilization)
Firms were asked to provide pricing for each category, allowing the Town to award to one or
multiple vendors. Firms also provided a percentage discount should the Town award all
categories to one company. This methodology provides the most flexibility to the Town in
selecting the best value for the program while providing competitive pricing. As a result of the
RFP process, four proposals were received on May 10, 2017. The results are listed on
Attachment 2.
Staff determined that Jensen was the best qualified and the most cost competitive firm to
provide the requested services. Jensen offered a five percent discount if awarded all
categories, which amounts to a net saving of $5,472 per year. Jensen provides landscape
maintenance services to multiple Bay Area cities including the City of San Jose International
Airport, Santa Clara Valley Water District, and the City of Mountain View. Reference checks
with all three cities were positive.
The RFP process included line item costs for miscellaneous services for irrigation repairs and
turf maintenance on an as-needed basis. Staff anticipates some use of these services in
drought recovery efforts, including turf renovation at parks.
The agreement term of five years allows for continuity of service and maximizes savings by
engaging the firm for multiple years. The contract language provides for cancellation should
the Town desire to do so during the contract term. To accommodate the potential impacts of
PAGE 3 OF 4
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIVE YEAR AGREEMENT
FOR SERVICES WITH JENSEN LANDSCAPE SERVICES, LLC (JENSEN) FOR
LANDSCAPE MAINTENANCE SERVICES IN AN AMOUNT NOT TO EXCEED
$123,790 PER YEAR INCLUDING A TEN PERCENT CONTINGENCY AND
AUTHORIZE AN ANNUAL INCREASE BASED ON THE CONSUMER PRICE INDEX
SUBJECT TO TOWN COUNCIL BUDGET APPROVAL EACH SUBSEQUENT YEAR.
MAY 24, 2017
S:\COUNCIL REPORTS\2017\06-06-17\10 - Jensen Landscape Maintenance\Staff Report Landscape Maintenance Services Final.docx 6/1/2017 3:20 PM MM
DISCUSSION (Continued):
inflation on the service, the contract allows for annual increases tied to the Consumer Price
Index (CPI) beginning in year two.
CONCLUSION:
The award of contract to Jensen Landscape Services will allow for the continuation of contract
landscaping services for median islands, special assessment districts, and turf maintenance at
the current frequency and level of service.
FISCAL IMPACT:
The Proposed FY 2017/18 Budget includes targeted funding within the Parks Maintenance
budget in the amount of $107,100 for landscape maintenance services. This budgeted amount
is $16,690 below the cost of services recommended for this contract. Staff attributes the
increased costs to the robust economy and high demand for services. The five year term of the
contract with an annual CPI adjustment should help to normalize these increases over the term
of the agreement.
If the Council approves this item, the contract would be issued to the firm in the amount of
$103,959, as identified in Attachment 1, which provides for the base service level with no
additional services. By providing authority to the Town Manager at the recommended amount
of $123,790, the Town retains the flexibility to authorize the additional services in the contract,
such as unanticipated irrigation repairs, turf aeration, and fertilization. These authorizations
occur as change orders to the contract.
Staff remains accountable to the overall allocated budget within the Department and will
monitor service levels and request additional funds at the FY 2017/18 Mid-Year Budget process
should they be needed. If at that time the Council determines funds are not available or the
Council identifies other priorities, staff will manage service levels to remain within budget.
Funding for subsequent years will be considered during the Town’s annual budget process. The
following table outlines the expense items:
PAGE 4 OF 4
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIVE YEAR AGREEMENT
FOR SERVICES WITH JENSEN LANDSCAPE SERVICES, LLC (JENSEN) FOR
LANDSCAPE MAINTENANCE SERVICES IN AN AMOUNT NOT TO EXCEED
$123,790 PER YEAR INCLUDING A TEN PERCENT CONTINGENCY AND
AUTHORIZE AN ANNUAL INCREASE BASED ON THE CONSUMER PRICE INDEX
SUBJECT TO TOWN COUNCIL BUDGET APPROVAL EACH SUBSEQUENT YEAR.
MAY 24, 2017
S:\COUNCIL REPORTS\2017\06-06-17\10 - Jensen Landscape Maintenance\Staff Report Landscape Maintenance Services Final.docx 6/1/2017 3:20 PM MM
FISCAL IMPACT (Continued):
Budgeted Funds $107,100
Base Contract Amount $103,959
Turf Maintenance $8,577
Subtotal $112,536
Contingency (10%) $11,254
Total Authority $123,790
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Agreement for Services
2. Summary of Proposals