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Item 5BCity of Southlake, Texas MEMORANDUM February 12, 2002 TO: Billy Campbell, City Manager FROM: Kevin Hugman, Director of Community Services (ext. 1527) SUBJECT: Award of bid to O'Donnell's Landscape Services, Inc. for mowing of City parks, facilities, rights -of -way and State rights -of -way. Action Requested: City Council award of bid to O'Donnell's Landscape Services, Inc. in the amount of $161,223.75 for mowing of City parks, facilities, rights -of -way and State rights -of -way. Background Information: The FY 2001 -2002 Parks and Recreation Division Budget contains a line item amount of $150,000 for contract mowing and landscape maintenance of Southlake Town Square public areas, City parks, facilities, rights -of -way and State rights -of -ways. Contract documents were provided to eighteen potential companies with six bids submitted. Facilities added to this contract from the previous year include the West D.P.S. Facility, Chesapeake Park, and expanded areas of Bob Jones Park. The City received and opened six bids on January 29, 2002, in accordance with state bidding procedures. The low bidder was unable to provide the minimum number of references required for similar work as specified in the bid specifications and required as part of the contract. Only one reference could be contacted and doubt existed as to the bidder's ability to carry out the obligations of the mowing contract. The second low bidder failed to enclose the required bid bond. The third low bidder, O'Donnell's Landscape Services, submitted a bid of $161,223.75. They are based in Southlake and included such references as Georgetown Park on Southlake Boulevard and Twin Lakes Subdivision in Keller. All references were very pleased with the service provided by O'Donnell's Landscape Services. The owner of O'Donnell's Landscape Services was previously the Vice President of sales under Minor's Landscape Services for a period of ten years followed by a one year term as Regional Manager of sales under TruGreen LandCare. O'Donnell's Landscape Services has been incorporated for two years. Financial Considerations: The FY 2001 -2002 Parks and Recreation Budget allocates $150,000 for contract mowing services. A contract was awarded in January, 2002 for Billy Campbell, City Manager February 12, 2002 Page 2 Southlake Town Square public areas to American Landscape Systems in the amount of $29,250 leaving an unencumbered balance of $120,750. The proposed contract amount of $161,223.75 exceeds the unencumbered balance by $40,473.75. Although an overrun in the mowing line item is a possibility, previous year's expenditures were less than budgeted as a result of fewer mowing cycles being performed due to inclement weather or dry conditions. Below are the actual versus budgeted amounts in the mowing line item for fiscal years 1999 -00 and 2000 -01. This includes Town Square mowing as well. Adopted Budzeted Actual Differenc e FY 1999-00 $130,000 $ 98,981 $31,019 FY 2000-01 $130,000 $108,762 $21,238 Citizen Input/ Board Review: Not applicable. Legal Review: The City Attorney has reviewed the contract documents. The bidding process followed State procedures. Alternatives: City Council discussion may result in various alternatives. Supporting Documents: Supporting documents include the following items: • Bid tabulation. Staff Recommendation: City Council award of bid to O'Donnell's Landscape Services, Inc. in the amount of $161,223.75 for mowing of City parks, facilities, and City and State rights -of -way. ICI City of Southlake COMMUNITY SERVICES DEPARTMENT BID TABULATIONS Billy Campbell, City Manager February 12, 2002 Page 3 PROJECT NAME: Mowing of parks, City and State R.O.W.'s, and facilities PROJECT NO: N/A WORKING DAYS: Annual Contract DATE: January 29, 2002 EST.: $145,000 BIDDER BID BOND BID AMOUNT Jones Lawn Care" Yes $151,813 American Landscape Systems No $159,898 O'Donnell's Landscape Services Yes $161,223.75 Southern Sprinkler Yes $165,757 Michael's Landscape No $189,420 TruGreen Landscape Yes $309,427.78 06 -63 -0003 ** Jones Lawn Care was low bidder, however, a review of references and maintenance projects indicated that they did not have sufficient prior experience to meet the minimum qualifications to undertake the mowing project.