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Home My WebLink About06.A- Parks, Recreation & Community Services DOC ID: 1552 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Report/Information From: Kevin L. Hawkins M/CC Meeting Date: 02/06/2012 Prepared by: Harriet Myers, (909) 384-5233 Dept: Parks, Recreation& Community Ward(s): 1, 3, 4, 5, & 6 Services Subject: Approval of Landscape Maintenance Reorganization Plan - Parks, Recreation and Community Services. (Recommended for Approval at the Ways and Means Committee Meeting of January 11, 2012 - Committee Members Present: Kelley, Johnson, Shorett) Financial Impact: Presently, 24 full-time City Employees are maintaining the City's 58 LMDs and over 550 acres of open space, which includes 39 parks and other city green-space. The Proposed FY 2011/12 Budget for LMD maintenance is $1,271,200 and Park Maintenance is budgeted at$2,119,600, which includes the gas tax funded tree crews and consolidated internal services costs. In 2010, the City's LMDs generated$1,285,297 in revenue for maintenance; however, total expenses were $1,447,688, resulting in a current general fund subsidy for LMD and general park maintenance of$192,844. According to the Real Property Division, figures for 2011 are typically not available until 30 days of the following year or February 2012. It is estimated the cost of servicing the LMDs under a contract is $578,600, resulting in a general fund subsidy of an amount to be determined. The estimated cost of maintaining the City's parks is still underfunded; however, the $2,119,600 would remain constant. In FY 10/11, according to Finance and the Real Property Division, a return to LMD contracting could reduce the financial impact to the Assessment District Reserve $1,100,077, which remains the case in FY 11/12. As a result of the delay in moving this item forward, it is estimated that the General Fund Subsidy to the LMDs for Calendar Year 2010 (to be assessed at the end of Calendar Year 2011) will be approximately$192,844. Granted, this is not solely due to the current LMD staffing structure; however, implementation of the outsourcing proposal can mitigate the General Fund impact and improve maintenance/service delivery to both our LMDs and park sites. Funds for any subsequent contract remain available in the Assessment District Reserve (Account No. 254-150-5506-1462-0106). fL Updated: 2/2/2012 by Mayra Ochiqui Packet PgA 16' 1552 Please note this balance does not indicate available funding. It does not include non-encumbered reoccurring expenses or expenses incurred,but not yet processed. Motion: Approve the Ways and Means Committee's recommendation to direct staff to initiate the Bid Process as part of the LMD Reorganization Plan,which via Option A, would return the City's LMD maintenance to contract services and the pre- 2009 staffing levels. SYNOPSIS OF PREVIOUS COUNCIL ACTION: January 11, 2012 - The Ways and Means Committee reviewed the proposed reorganization and recommended the matter be presented to the Mayor and Common Council with a recommendation of approval. BACKGROUND During the May 2011Budget Workshops, the City Council expressed concern with the decline in quality and consistency of the maintenance of City's landscape maintenance districts (LMDs). The Council directed that this matter be referred to the Ways and Means Committee for review, analysis and recommendations. In February 2009, as a continuation of the Interim City Manager's efforts to reduce costs, the Mayor and Common Council approved a plan to restructure the City's Parks, Recreation and Community Services Department to reduce General Fund expenditures while protecting jobs. Specifically, the plan involved consolidating the maintenance of the City's 58 Landscape Maintenance Districts (LMDs), 39 parks and other open space. Under the plan, which was initially considered a pilot program, the City eliminated 14 of the existing 24 park maintenance positions, which were general fund funded. Twelve of the 14 positions were shifted to LMDs, which had previously been maintained using contractors, resulting in 24 park maintenance positions remaining in the Department. The existing contracts were allowed to expire or were terminated. The Department aggressively supplemented the 24 City maintenance positions, which were now responsible for the maintenance of the LMDs, the City's parks, and various open space areas, with community volunteers, SBETA, Urban Conservation Corps (UCC), California Conservation Corps (CCC) and Glen Helen Correctional workers in an effort to maintain service delivery levels. Further, the Department has used service agreements with local landscaping companies to supplement services as needed. The restructuring resulted in a General Fund savings of approximately $1.1 million. At the time the restructuring plan was implemented, it was intended to be a temporary measure, and the intent was to return park workers to the parks activities and contract for LMD maintenance when additional resources were realized. The measures approved and related costs savings are as follows: Measure Cost Terminated 14 general park maintenance positions $ 749,086 General park maintenance and operations savings $ 100,000 Updated:2/2/2012 by Mayra Ochiqui Packet Pg. 117 1552 Transferred 12 positions to LMDs (includes $150,000 in $ 886,480 M&O) Eliminated Annual Maintenance Contracts -$ 650,000 Total GF Savings $ 1,085,566 During the Budget workshops in April 2010, August 2010, and May 2011, it was determined that certain revenue measures, in which future parks and open space maintenance staffing was heavily dependent upon, would not move forward. Since 2009, park maintenance staffing ratios have ballooned from a 1 person per 20 acre of parkland to a 1 person per 60 acre parkland, resulting in inconsistency in the maintenance of landscaping throughout the City. This is due to the heavy reliance upon non-city personnel and volunteers. (Note: industry standards recommend a ratio of 1 person per 10 acres of parkland maintenance). ANALYSIS Over the past two years, despite the extraordinary efforts of the City's parks workers, City staff agree that the model currently being utilized to maintain the City's parks and open space and the LMDs is unsustainable and does not provide consistent, quality service and maintenance. Moreover, after significant improvements to LMD maintenance in FY07/08, the Department has received numerous complaints from residents and some business owners regarding concerns over ongoing maintenance as mentioned in the Grand Jury report. On October 13, 2010, a formal bid process was initiated to solicit bids for the servicing of 58 Landscape Maintenance Districts in the City utilizing outside contractors. Notices of bids were posted in local media, industry websites, and to approved vendor lists. The bid documents requested pricing for maintenance of easements, open space, and medians in designated City Assessment Districts. There was a mandatory pre-bid conference and job walk on October 20, 2010, which resulted in the attendance of sixteen vendors. The bid closing date was November 10, 2010, and seven bids were received. The agreements would have covered the maintenance of 58 Landscape Maintenance Districts in the City of San Bernardino from April 1, 2011,to March 31, 2012,with the option for two additional years. Vendor ANNUAL OPTION OPTION Total BASE YEAR YEAR ONE YEAR TWO COST COST COST X $ $ 200,200 $ $ 600,800 194,200 206,400 Y $ $ 194,000 $ $ 597,900 194,000 209,900 Z $ $ 196,100 $ $ 583,900 190,400 197,400 Updated:2/2/2012 by Mayra Ochiqui Packet Pg. 118 1552 If a contract were awarded for LMD maintenance, approximately 12 City positions, which had been shifted to the LMDS,would be eliminated at an estimated cost of$628,300. The original 12 �. employees who were transferred from City Park maintenance into the LMDs in 2009 as a General Fund cost savings measure would be returned to the City Parks. According to the City's Civil Service rules, without the identification of any additional funding, which is estimated at $628,300 for salaries and benefits, this action would result in the termination through bumping. Currently, 2 full-time positions are vacant and are being filled with part-time personnel. Given the uncertainty of the City's financial outlook, recommendation of the award of the contract by Council was delayed pending further discussion. The purpose of this discussion is to identify a course of action that will restore the maintenance of the LMD and parks and open spaces to a more consistent/quality service level. The following is a summary of the options available for consideration: • Option A: Contract with outside vendors for LMD maintenance and reorganize the Park Maintenance Division by returning those employees back to City parks and eliminating 12 full-time positions through bumping and attrition • Option B: Continue the in-house pilot program which includes maintaining the existing staffing and maintenance levels in the City's LMDS and Parks • Option C: Seek, through a vote of residents, approval for a reassessment of each district resulting in higher annual assessment values in accordance with Proposition 218 If the Council were to approve contracting for the maintenance of the LMDs, staff would attempt to utilize the volunteers, SBETA, UCC, CCC, and Glen Helen Correctional workers at the City parks and open space areas in an attempt to improve the quality of the maintenance at these sites. The bids for LMD maintenance, which were received in November 2010, have expired and new bids would be required if the Council were to direct that LMD maintenance be provided utilizing contract services. An expedited process may look as follows: 1. Issue RFQ February 14,2012 2. Advertise in Sun February 14, 2012 3. Mandatory Pre-Proposal Mtg & Job Walk February 21, 2012 4. Written Questions from Vendors due February 28, 2012 5. Responses Due from City March 6, 2012 6. Proposals Due March 13, 2012 it 3:00 PM 7. RFP Evaluation and Negotiations To Be Determined 8. Vendor Selection April 2012 Updated:2/2/2012 by Mayra Ochiqui Packet Pg. 119 1552 9. Request for Council Action Due May 2012 10. Council Approval June 2012 11. Vendor Award June/July 2012 RECOMMENDATION Direct staff to initiate the Bid Process as part of the LMD Reorganization Plan, which via Option A, would return the maintenance of the City's LMDs to contract services and result in a reduction in parks maintenance personnel of approximately 12 positions, which would be achieved through bumping and attrition pursuant to the City's employment rules and regulations. Supporting Documents: E i Updated: 2/2/2012 by Mayra Ochiqui Packet Pg. 120