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Home My WebLink About06/06/2017 Turf Mowing Contract7/26/2017 Board Docs® Pro IN Agenda Item Details Meeting Jun 06, 2017 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 8. VILLAGE MANAGER'S REPORT Subject 8.1 MOTION TO WAIVE REQUIREMENTS FOR PUBLIC BIDDING AND AWARD A CONTRACT FOR $47,606.02 TURF MOWING IN AN AMOUNT NOT TO EXCEED $55,525. Type Action Preferred Date Jun 06, 2017 Absolute Date Jun 06, 2017 Fiscal Impact Yes Dollar Amount 55,525.00 Budgeted Yes Budget Source GENERAL FUND Recommended STAFF RECOMMENDS THAT THE VILLAGE BOARD WAIVE THE REQUIREMENTS FOR PUBLIC Action BIDDING AND AWARD A TWO (2) YEAR CONTRACT FOR TURF MOWING TO ALLSCAPE, INCORPORATED IN AN AMOUNT NOT TO EXCEED $55,525. YEAR 2 EXPENDITURES WILL BE AT BID RATES BUT LIMITED TO FUNDS APPROPRIATED IN THE 2018 BUDGET. Information Sealed bids for the 2017-2018 turf mowing contract were opened on February 13, 2017. On March 7, 2017, the Village Board awarded the work to the lowest cost bidder, Alvarez Landscape (Alvarez), in an amount not to exceed $50,000 in 2017. Next year's expenditures were to be at bid rates but limited to funds appropriated in the 2018 budget. For reference, the tabular results of the bid opening are reprinted in Table 1 below: Table 1 (Reprinted from March 7, 2017 Village Board agenda) Contractor 2017 2018 E Total cost Alvarez Landscaping $47, 606.02 $47,606.02 E$95,212.04 A11scape $84,968.00 $84,968.00 $169,936.00 Fleck's Landscaping $85,766.00 $85,766.00 $171,532.00 Moore Landscapes $150,214.00 $150,214.00 E$300,428.00 The scope of work includes of 29 acres of weekly turf mowing at 75 distinct, publicly owned sites throughout Mount Prospect. Bidders submitted a weekly cost to mow each individual site. Alvarez had not performed work for the Village of Mount Prospect in the past. However, reference checks, including telephone interviews with contract administrators, indicated the firm had ample resources and experience to perform the specified work. Alvarez began mowing on April 3, 2017. On April 27, 2017 we were contacted by the project manager for Alvarez who stated that they had "under bid" the proj ect and wanted to talk to the Village about adjusting their bid price. Staff advised http://www.boarddocs.com/il/vomp/Board.nsf/Public 1/3 7/26/2017 Board Docs® Pro Alvarez that terms and prices could not be modified after award and execution of the contract without re -bidding the work to avail similar opportunity to other contractors. Staff subsequently engaged further discussion of Alvarez' issues and suggested that they not string trim all the sites every week but rather every other week, or as needed. Staff also suggested that better routing of work crews could reduce personnel requirements and improve crew efficiency. Alvarez agreed to implement staff's suggestions. On May 8, 2017 staff contacted Alvarez to notify them of contract performance deficiencies. Specifically, our inspections indicated that all mowing areas were not receiving adequate quality or frequency of service. On the same day, in response to our outreach, we were contacted by the vice president of Alvarez, who apologized for their poor performance and asked that they be released from the contract. Subsequently, staff held a meeting with both the vice president and project manager from Alvarez on May 11, 2017 to discuss the matter in further detail. At this meeting, Alvarez again stated that they "underbid" the project, and asked for an increase in their rates or a reduction in the scope of work. Staff declined these requests. On May 19, 2017, staff received an email from Alvarez' vice president formally requesting release from the contract and requesting that the transmittal be received as their formal ten-day notice of termination required by contract provisions. The Village Attorney has determined that this notice satisfies Alvarez' contractual obligation. For reference, a copy of this email is attached. The turf mowing contract provides that either party, the Village or the contractor, can elect to terminate the agreement upon ten (10) days written advanced notice. The contract does not require a performance bond to guarantee completion of the work. Analysis of previous turf mowing contracts containing a performance bond requirement indicated the provision yielded inflationary pressure on bid prices and a limiting effect on the volume of bidders. Staff concluded that the nature of the landscape maintenance market place does not ubiquitously support work bonding as a business practice. Other than a detrimental effect on their work history, Alvarez will not incur a significant financial penalty for terminating this contract. Staff now seeks Village Board approval to hire a new contractor to complete the remainder of the Alvarez' two (2) year contract. It is the opinion of staff that re -bidding the work at this juncture would not serve the best interests of the Village. Re- bidding would require a 4-6 weeks hiatus, during the height of growing season, in order to let a new bid, award a contract, and mobilize a new contractor. Furthermore, it is also staff's opinion that the results of the February 2017 bid letting are sufficiently recent and remain a valid representation of the market place. In addition, it is likely that the tuning of a turf mowing bid letting so late in the growing season would limit bidders to poor performers with inadequate books of business or larger firms willing to absorb the new work at premium rates. As soon as Alvarez indicated they were looking to be released from the contract, staff contacted Allscape Contractors, Inc. of Romeoville, Illinois (Allscape), the second lowest bidder from the February 2017 bid opening, to see if they were still interested in the work. The owner of the company indicated that he was, and could assume the contract within two (2) weeks. A copy of Allscape's bid submittal is attached. Allscape has not performed work for the Village in the past. However, all of their bid submittal references provided very favorable reports. We also asked Allscape to provide additional references. All of the additional references, including a reference for municipal work from the Village of Cary that is essentially the same size and scope as our contract, also indicated that Allscape's work was satisfactory and that they consistently adhered to the specifications of the respective contracts. http://www.boarddocs.com/il/vomp/Board.nsf/Public 2/3 7/26/2017 Board Docs® Pro Alternatives 1. Waive the requirements for public bidding and award a two (2) year contract for turf mowing. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends that the Village Board waive the rules requiring public bidding and award a two (2) year contract for turf mowing to Allscape Contractors, Inc. of Romeoville, Illinois in an amount not to exceed $55,525 in 2017. Expenditures in 2018 will be at bid rates but limited to appropriations authorized in the 2018 budget. 2017-2018 - Turf Mowing Contract - Allscape Contractos, Inc.pdf (5,097 KB) Alvarez' Notice of Termination.pdf (68 KB) Motion & Voting STAFF RECOMMENDS THAT THE VILLAGE BOARD WAIVE THE REQUIREMENTS FOR PUBLIC BIDDING AND AWARD A TWO (2) YEAR CONTRACT FOR TURF MOWING TO ALLSCAPE, INCORPORATED IN AN AMOUNT NOT TO EXCEED $55,525. YEAR 2 EXPENDITURES WILL BE AT BID RATES BUT LIMITED TO FUNDS APPROPRIATED IN THE 2018 BUDGET. Motion by Paul Hoefert, second by Richard Rogers. Final Resolution: Motion Carries Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel http://www.boarddocs.com/il/vomp/Board.nsf/Public 3/3