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HomeMy WebLinkAboutStaff Report 6760City of Palo Alto (ID # 6760) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/25/2016 City of Palo Alto Page 1 Summary Title: Amendment No. 4 to Tree Pruning and Removal Contract Title: Approval of Amendment Number 4 to Contract Number C13148075 in the Amount of $117,000 With West Coast Arborists Inc., for Tree Pruning and Removal Services for a Total Contract Compensation Not-to-Exceed $1,349,410 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or designee to execute Amendment No. 4 to Contract No. C1314875 with West Coast Arborists, Inc.(Attachment A) in the amount of $117,000,increasing the not-to-exceed compensation to $1,349,410 for tree pruning and removal services through June 30, 2016. Background The City has used contract services for tree pruning and removal since 2000, providing a proactive cycle of basic tree maintenance for the City. The most recent tree maintenance contract was initiated in 2013, and awarded to West Coast Arborists, Inc. (CMR #3252) as a three-year contract with two,one-year mutual renewal options, to perform pruning, removal, stump grinding, and other maintenance of approximately 5,054 City trees annually along street corridors within the City’s limits. The original contract was set to expire on June 30, 2015. Several amendments have been executed to extend the contract term and/or add funding. Amendment No. 1 was executed to correct the original contract agreement termination date of June 30, 2015 to January 13, 2016. Amendment No. 2 was approved by Council on March 9, 2015 (CMR #5270), adding $182,410 and extending the term of the contract to March 14, 2016 to address backlogged City of Palo Alto Page 2 pruning work orders, the increase in drought-related work orders and to provide staff more time to complete the Request for Quotations (RFQ) process for a replacement contract.Amendment No. 3 was executed to extend the contract term to June 30, 2016 to bridge the gap between the contract expiration and the expected City Council approval of a new contract. A new, 3-year RFQ for Tree Pruning and Removal Services was developed and competitively solicited in January 2016. Results from the lowest, responsible bidder indicate a significant cost increase for services (in some cases 200-300%). Cost increases are attributed but not limited to an increase in demand due to drought, changes in labor agreements and prevailing wage requirements, and scope of work expansion. Available funding in the existing contract was effectively exhausted in March 2016. Discussion Due to the significant cost increase expected in the new contract, staff determined that it was appropriate to allow Finance Committee and City Council to consider the new multi-year contract as part of the FY 2017 proposed budget. Funding in the current contract has been exhausted, and staff is therefore recommending approval of Amendment No. 4 at this time to provide additional funding so that tree pruning and removal services can be continued. The addition of $117,000 in contract funds will provide pruning for approximately 1,680 trees and removal of approximately 30 trees if needed,consistent with current contract rates, maintaining the monthly average of 420 trees on a 7-year pruning cycle. Retaining West Coast Arborists via Amendment No.4, will continue essential pruning and removal services until the budget process is complete and a new contract awarded. Pruning and removal services promote the health of the tree population and enhance street appearance and safety. Resource Impact Sufficient funding for this amendment is available in the Fiscal Year 2016 operating budget. City of Palo Alto Page 3 Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review The recommended action is CEQA-exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape). Attachments: ·Attachment A -Amendment 4 to Contract C13148075 West Coast Arborists (PDF) Revision April 28, 2014 AMENDMENT NO. 4 TO CONTRACT NO. C13148075 BETWEEN THE CITY OF PALO ALTO AND WEST COAST ARBORISTS, INC. This Amendment No .4 to Contract No. C13148075 (“Contract”) is entered into April 25, 2016 , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and WEST COAST ARBORISTS, INC., a California corporation, located at 2200 East Via Burton Street, Anaheim, CA 92806 (“CONTRACTOR”). R E C I T A L S A. The Contract was entered into between the parties for the provision of General services for tree pruning and removal services. B. The parties wish to amend the Contract by increasing the compensation from One million two hundred thirty two thousand four hundred ten dollars ($1,232,410) to a not to exceed total amount of One million three hundred forty nine thousand four hundred ten dollars ($1,349,410) for continuation of services as specified in Exhibit “A” of the original contract per Council Staff Report #6760, date 4/25/16. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 5 “COMPENSATION FOR ORIGINAL TERM” is hereby amended to read as follows: “CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ ); OR The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of One million three hundred forty nine thousand four hundred ten dollars ($1,349,410) . CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. DocuSign Envelope ID: 8DAFB94C-363D-43C7-9852-269929C6D3AE Revision April 28, 2014 SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: _____________________________ Senior Deputy City Attorney WEST COAST ARBORISTS, INC. By:___________________________ Name:_________________________ Title:________________________ DocuSign Envelope ID: 8DAFB94C-363D-43C7-9852-269929C6D3AE Vice President Victor Gonzalez