HomeMy WebLinkAboutStaff Report 3852
City of Palo Alto (ID # 3852)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/17/2013
City of Palo Alto Page 1
Summary Title: Contract Amendment Power Line Clearing Project
Title: Approval of a Contract Amendment to the Utilities Enterprise Fund
Contract with Asplundh Tree Expert Company in an Amount Not To Exceed
$1,062,000 for a Period of One Year
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or his designee
to execute the attached contract amendment to the Utilities Enterprise Fund contract
with Asplundh Tree Expert Company (Attachment A) in an amount not to exceed
$1,062,000 for a period of one year.
Background
The City has contracted out power line clearing work since the mid-1980’s to ensure
clearing of trees and other vegetation from electrical conductors, poles, substations,
fiber optic lines, traffic signals, and street lights throughout Palo Alto. In October 2008,
the FY2008-09 contract, with the option to extend for up to four additional years, was
awarded to Asplundh Tree Expert Company (Asplundh) to provide these services. The
option to extend the contract was exercised each of the past four years due to
Asplundh’s effective performance of the work, its motivated on-site superintendent and
its consistent staffing of the project. In consideration of difficult financial times for the
City, Asplundh agreed to accept a reduced (less than the Consumer Price Index) or no
rate increase for the past two extensions. On June 30, 2013, the contract will expire.
The attached contract amendment (no. 1) will allow an additional year’s extension
beyond that previously approved by City Council and will extend the contract to June
30, 2014.
Discussion
The Public Works Department’s Urban Forestry (Tree) Section administers the contract
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for power line clearing work, which is paid for out of the Utilities Electric Fund. Since
March 2011, the Tree staff has been working at below authorized staffing levels and is
now facing the unplanned, impending retirement of the project manager responsible for
administering this contract. The hiring process has been initiated and it is anticipated
that this position will be filled by August 2013. By the end of FY2013-14 the section
expects to be back to full staffing levels.
Both the Public Works and Utilities Departments recommend retaining Asplundh, a
proven contractor, to provide the essential power line clearing service while the new
project manager becomes oriented to the project and to the City’s requirements. In
addition to this contract, the project manager will also be responsible for the City’s tree
maintenance, stump removal, and Canopy contracts. At the end of this final contract
extension with Asplundh in 2014, bids will be sought for a new contract for utility line
clearing. If the attached contract extension with Asplundh is not approved, there will
be an approximately two or three month delay in utility line clearing until a new
contract can be advertised for bids and approved by Council.
Resource Impact
Funds for this contract amendment are available in the FY2013-2014 Utilities
Department budget. Consistent with the contract provisions and by mutual agreement
the contractor’s FY2012-13 rates will be increased by 2.0% for FY2013-14, less than the
Consumer Price Index (CPI-W) of 2.4% for the San Francisco-Oakland-San Jose area.
The contract amount will not exceed $1,062,000.
Policy Implications
This recommendation does not represent any change to existing City policies.
Environmental Review
The recommended action is exempt from review under the California Environmental
Quality Act pursuant to CEQA Guidelines Section 15301(h)(maintenance of existing
landscape).
Attachments:
Amendment 1_C09127935_Asplundh signed (PDF)
AMENDMENT NO. 1 TO CONTRACT NO.C09127935
BETWEEN THE CITY OF PALO ALTO AND
ASPLUNDH TREE EXPERT COMPANY
This Amendment No.1 to Contract No.C09127935
("Contract") is entered into May 30, 2013, by and between the CITY
OF PALO ALTO, a charter city and a municipal corporation of the
State of California ("CITY"), and ASPLUNDH TREE EXPERT COMPANY, a
corporation in the state of Pennsylvania, located at 4676 E.
Waterloo Road, Stockton, CA 95215, Telephone Number 209.931.8174
( "CONTRACTOR") .
R E CIT A L S:
WHEREAS, the Contract was entered into between the
parties for the provision of power line clearing project; and
WHEREAS, the parties wish to amend the Contract;
NOW, rHEREFORE, in consideration of the covenants, terms,
conditions, and'"provisions of this Amendment, the parties agree:
SECTION 1.
follows:
Section 3 TERM is hereby amen0ed to read as
, ,
"The term of this Agreement is from the date of award to
June 30, 2014:~ subject to the provisions of subsection 3 (b) and
Section R of the General Terms and Conditions. '
.... '
CITY'has the right to extend the term of '"this Agreement
based upon the same conditions of the initial term, subject to
adjustments for compensation as set forth in SectionE of the
General Terms' and Conditions. CITY shall notify' CONTRACTOR in
writing of its 'exercise of its option for an Additional Term not
less than thirty (jO) days prior to the end of the then current
term. CITY's exercise of it right to extend the' term of this
Agreement is not a waiver of the "time is of the essence" provision
in Section 4. ,i
SECTION 2. Section 5 COMPENSATION is hereby amended to
read as follows:
"5. COMPENSATION FOR ORIGINAL TERM. 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:
A sum calculated in accordance with the fee schedule set forth
in Exhibit C, not to exceed a total maximum compensation
amount of seven hund~ed ninety-seven thousand eighty dollars
($797,080) for the first year and one million sixty-two
thousand dollars ($1,062,000) for each additional year.
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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."
SECTION 3. 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.
APPROVED: ASPLUNDH TREE EXPERT COMPNY
City Manager BY:#??2~
Name: 6;veJ:J (t ~Iw,il
APPROVED AS TO FORM:
Senior Asst. City Attorney
ATTACHMENT:
EXHIBIT C -COMPENSATION
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EXHIBIT C
COMPENSATION
CITY shall compensate CONTRACTOR for performance of the Services
according to the following schedule, with· the maximum amount of
compensation not to exceed ($797,080) for the first year and
$1,062,000) for each additional year, subject to adjustments for
compensation as set forth in Section E of the General Terms and
Conditions:
Description Quantities Per
, Year
Rate
Unit Cost Line Clearing . 3,800 trees· $
'58.05
Hourly Cost Line Clearing 6,300 crew hours $
112.95
Unit Cost Pole Clearing 9 poles $
42.00
. Unit Cost Pole Clearing & Spraying 5 poles $
44.00
I
All Payments are based upon City's acceptance of Contractor's
performance of the phase as evidenced by successful completion of the
Deliverable for that Phase. City shall have no obligation to pay
unless Contractor has successfully completed and City has approved
the Project Phase for which payment is due.
The maximum amount of compensation to be paid to Contractor,
including both payment for services and reimbursable expenses,
shall not exceed million sixty-two thousand dollars dollars
($1,062,000). Any hours worked for which payment would result in a
total exceeding the maximum amount of compensation set forth herein
shall be at no cost to City.
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