DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
10/20/2016 Annual Contracts
SUMMARY:
An ordinance awarding five contracts to provide the City with commodities and services on an annual basis for the terms of the contract, for an estimated annual cost of $322,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the terms of the contract:
1. Supply of Five and Fifteen Gallon Shade, Ornamental, Fruit and Nut Trees
A. Mosty Brothers Nursery and Bob Wells Nursery, $60,000.00 annually (2 contracts, Parks and Recreation Department)
B. AgH20 Holdings, LLC and SiteOne Landscape Supply, $200,000.00 annually (2 contracts, Parks and Recreation Department)
2. The Watermark Group for SWMD “Pay as You Throw” Program Door Hangers, $62,000.00 annually (1 contract, Solid Waste Management Department)
BACKGROUND INFORMATION:
The City of San Antonio utilizes annual contracts for procuring high volume repetitive purchases. Annual contracts are an efficient method of securing the best prices through volume purchasing and reducing large amounts of work related to the bid process. Utilization of annual contracts allows the City to procure numerous different commodities in support of the normal daily operations.
Item 1: Supply of Five and Fifteen Gallon Shade, Ornamental, Fruit and Nut Trees
Item 1A. Contracts procured on the basis of low qualifying bid:
Mosty Brothers Nursery and Bob Wells Nursery, $60,000.00 annually, December 1, 2016 through June 30, 2018 with one, one year renewal option.
Item 1B. Contracts procured on the basis of low bid:
AgH20 Holdings, LLC and SiteOne Landscape Supply, $200,000.00 annually, December 1, 2016 through June 30, 2018 with one, one year renewal option.
These contracts will provide the Parks and Recreation Department with a contractor that will furnish and deliver 5 gallon, 7 gallon, and 15 gallon shade, ornamental, fruit and nut trees on an “as needed” basis throughout the City of San Antonio. The list of shade and ornamental tree species include: Bur Oak, Cedar Elm, Chinkapin Oak, Crape Myrtle, Desert-Willow, Eve’s Necklace, Honey Mesquite (thornless), Lacey Oak, Live Oak, Mexican Buckeye, Mexican Olive, Mexican Plum, Mexican Sycamore, Mexican White Oak, Possumhaw, Retama (thornless), Sierra Red Oak, Texas Mountain Laurel, Texas Persimmon, Texas Red Oak, and Texas or Mexican Redbud. The list of fruit and nut tree species include Apple, Apricot, Fig, Nectarine, Olive, Orange, Peach, Pear, Pecan (Desirable), Pecan (Native), Persimmon, Plum, Pomegranate Avocado, Lemon and Lime. The trees will be utilized by the Department to enhance the tree population on City property or for adoption to the public.
Contract procured on the basis of low qualifying bid:
Item 2. The Watermark Group for SWMD “Pay as You Throw” Program Door, $62,000.00 annually, upon award through December 31, 2017 with one, one year renewal option - will provide a contractor to print, score, cut, die cut, and fold door hangers that will enable the Solid Waste Management Department (SWMD) to inform residents about the City's Solid Waste “Pay as You Throw” program.
ISSUE:
These contracts represent a portion of approximately 250 annual contracts that will be brought before City Council throughout the fiscal year. These products and services are used by city departments in their daily operations.
Items 1A&B. Supply of Five and Fifteen Gallon Shade, Ornamental, Fruit and Nut Trees - This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
There were no bids submitted from local bidders for this contract; therefore the Local Preference Program was not applied.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
Item 2. SWMD “Pay as You Throw” Program Door Hangers - This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
Items 1A&B. Supply of Five and Fifteen Gallon Shade, Ornamental, Fruit and Nut Trees - Should this contract not be approved, Parks and Recreation Department would be required to procure trees on an as needed basis. Department will not realize fixed pricing and order consolidation cost savings associated with having a term contract in place.
Item 2. SWMD “Pay as You Throw” Program Door Hangers - Should this contract not be approved, the SWMD would be required to procure solid waste door hangers on an as needed basis. Lack of a contract could result in an inefficient and less cost effective method of informing residents about the City's Solid Waste “Pay as You Throw” program.
FISCAL IMPACT:
Funds are not encumbered by this ordinance. All expenditures will be in accordance with the Department's adopted budget approved by City Council. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of five contracts submitted through this ordinance to provide the City with specified services on an annual contract basis. These annual contracts are critical to the City's daily operations.
These contracts were procured on the basis of low qualifying bid and low bid and Contract Disclosure Forms are not required.