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HomeMy WebLinkAboutStaff Report 2407-3314CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, October 28, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     8.Approval of Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for Tree Pruning and Removal Services in the Amount of $3,011,228, for a New Total Not-to-Exceed Amount of $6,776,608, and Extend the Term by Two Years; CEQA Status – Exempt per Section 15301(h) (maintenance of existing landscape) Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: October 28, 2024 Report #:2407-3314 TITLE Approval of Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for Tree Pruning and Removal Services in the Amount of $3,011,228, for a New Total Not-to- Exceed Amount of $6,776,608, and Extend the Term by Two Years; CEQA Status – Exempt per Section 15301(h) (maintenance of existing landscape) RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for tree pruning and removal services in the amount of $3,011,228, for a revised not-to-exceed amount of $6,776,608, and to extend the contract term by two years, through October 17, 2026 for a total term of five years. BACKGROUND The Public Works Urban Forestry Section is responsible for maintaining the health of more than 38,000 public trees located along streets and in various City-owned public places. Tree pruning is a key maintenance task in keeping the population healthy. The purpose of tree pruning is to improve tree structure, enhance vigor, and maintain safe conditions for motorists and pedestrians as they move through the street corridor. This maintenance is achieved through pruning all City-owned trees on a cyclical basis and involves removing and replacing trees when necessary. In 2021, the City conducted a formal solicitation for the Tree Pruning and Removal Services contract. The three-year contract1 was awarded to West Coast Arborists, Inc. (WCA) in the amount of $3,765,380. This contract includes pruning, removal, stump grinding, and other maintenance of trees located along street corridors and on City property. 1 City Council, October 18, 2021; SR#12172 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81494 This contract, which is scheduled to expire on October 17, 2024, has a three-year term with funding authority not to exceed $3,765,380. As the end of the contract term approached and staff began to prepare for a new solicitation, WCA approached staff with an offer to reduce the rates for all services by 2% in the two extension years, Year Four and Year Five, from the current Year Three rates. This offer was contingent upon the City amending the contract to extend it for an additional two years. The 2% reduction results in annual savings of $27,909, or $55,818 over the two-year extension. ANALYSIS Contractor Performance FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Vers.: Aug. 5, 2019 Page 1 of 16 AMENDMENT NO. 1 TO CONTRACT NO.C21181420 BETWEEN THE CITY OF PALO ALTO AND WEST COAST ARBORISTS, INC. This Amendment No. 1 (this “Amendment”) to Contract No. C21181420 (the “Contract” as defined below) is entered into as of October 21, 2024, 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 E. Via Burton Street, Anaheim, CA 92806 (“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing tree pruning and removal services throughout parks, open spaces and facilities within the City of Palo Alto, as detailed therein. B. The Parties now wish to amend the Contract in order to (1) extend the contract term for two years through October 17, 2026, and (2) increase compensation by Three Million Eleven Thousand Two Hundred Twenty-Eight Dollars ($3,011,228) from Three Million Seven Hundred Sixty- Five Thousand Three Hundred Eighty Dollars ($3,765,380) to a new not to exceed total compensation of Six Million Seven Hundred Seventy-Six Thousand Six Hundred Eight Dollars ($6,776,608), as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C21181420 between CONSULTANT and CITY, dated October 18, 2021. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 3 “TERM” of the Contract is hereby amended to read as follows: “The term of this Agreement is from October 18th, 2021 through October 17th, 2026, subject to the provisions of Sections R and W of the General Terms and Conditions.” SECTION 3. Section 5 “COMPENSATION FOR ORIGINAL TERM” of the Contract is hereby amended to read as follows: Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 2 of 16 “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 at Exhibit C, not to exceed a total maximum compensation amount of Six Million One Hundred Sixty Thousand Five Hundred Fifty-Three Dollars ($6,160,553). 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. Optional Additional Services Provision (This provision applies only if checked and a not-to- exceed compensation amount for Additional Services is allocated below under this Section 5.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to- exceed compensation amount of Six Hundred Sixteen Thousand, Fifty-Five Dollars ($616,055) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Six Million Seven Hundred Seventy-Six Thousand Six Hundred Eight Dollars ($6,776,608), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 5. CONTRACTOR shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 8 (Invoicing). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “GENERAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONTRACTOR shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONTRACTOR for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 5. CONTRACTOR shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 5. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.” Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 3 of 16 SECTION 4. Section 6 “COMPENSATION DURING ADDITIONAL TERMS” of the Contract is hereby amended to read as follows: CONTRACTOR’S compensation rates for each additional term shall be the same as the original term; OR CONTRACTOR’s compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR’s compensation rates shall be reflected in a written amendment to this Agreement. SECTION 5. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C” entitled “SCHEDULE OF FEES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 4 of 16 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO ___________________________ City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee WEST COAST ARBORISTS, INC. Officer 1 By:___________________________ Name:________________________ Title:_________________________ Officer 2 By:___________________________ Name:________________________ Attachments: Exhibit “C” entitled “SCHEDULE OF FEES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 President Patrick Mahoney, President VP/Secretary Richard Mahoney, Secretary Vers.: Aug. 5, 2019 Page 5 of 16 EXHIBIT C SCHEDULE OF FEES,AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Compensation based upon fee schedule. CITY shall pay CONTRACTOR according to the following schedule of fees. The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Section 5 of this Agreement. Any services provided or 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. SCHEDULE OF FEES - 10” - -30” -YEAR TOTAL NOT TO EXCEED FOR PROGRAM PRUNING (1st Year + 2nd Year + 3rd Year Subtotal): One Million Three Hundred Forty-Four Thousand Dollars ($1,344,000). (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 6 of 16 - 10” 98.00 ,000.00 98.00 ,000.00 - 122.50 245,000.00 122.50 245,000.00 -30” 1.90 148,862.00 1.90 148,862.00 249.90 34,986.00 249.90 34,986.00 -YEAR TOTAL NOT TO EXCEED FOR PROGRAM PRUNING (1st Year + 2nd Year + 3rd Year + 4th Year + 5th Total): Two Million Three Hundred Ninety-Seven Thousand Six Hundred Ninety-Six ($2,397,696.00). (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 7 of 16 2A. UNIT PRICES FOR PALM PRUNING SIZE CLASS FIRST YEAR OF CONTRACT SECOND YEAR OF CONTRACT THIRD YEAR OF CONTRACT UNIT PRICE X QUANTITY = EXTENDED PRICE UNIT PRICE X QUANTITY = EXTENDED PRICE UNIT PRICE X QUANTITY = EXTENDED PRICE DATE PALM SPECIES UNDER 55’ WORKING HEIGHT $280.00 -YEAR TOTAL NOT TO EXCEED FOR PALM PRUNING (1st Year + 2nd Year + 3rd Year Subtotal): Fifty-One Thousand One Hundred Fifty Dollars ($51,150). *NOTE: D.B.H.= Diameter at Breast Height (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 8 of 16 2B. UNIT PRICES FOR PALM PRUNING SIZE CLASS FOURTH YEAR OF CONTRACT FIFTH YEAR OF CONTRACT UNIT PRICE X QUANTITY = EXTENDED PRICE UNIT PRICE X QUANTITY = EXTENDED PRICE DATE PALM SPECIES UNDER 55’ WORKING HEIGHT $294.00 5,880.00 294.00 5,880.00 92.00 7,840.00 92.00 7,840.00 151.90 3,038.00 151.90 3,038.00 96.00 3,920.00 96.00 3,920.00 -YEAR TOTAL NOT TO EXCEED FOR PALM PRUNING (1st Year + 2nd Year + 3rd Year + 4th Year + 5th Year Total): Ninety-Two Thousand Five Hundred Six Dollars ($92,506.00). *NOTE: D.B.H.= Diameter at Breast Height (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 9 of 16 3A. UNIT PRICES FOR DEMAND PRUNING SIZE CLASS 4” - 10” D.B.H. $135.00 x $140.00 = $145.00 = $14,500.00 11” - 20” D.B.H. $230.00 x $240.00 = $250.00 = $125,000.00 21”-30” D.B.H. $325.00 x $335.00 = $350.00 = $175,000.00 31” and $495.00 x $515.00 = $535.00 = $107,000.00 -YEAR TOTAL NOT TO EXCEED - DEMAND PRUNING (1st Year + 2nd Year + 3rd Year Subtotal): One Million Twenty-One Thousand Dollars ($1,021,000). (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 10 of 16 3B. UNIT PRICES FOR DEMAND PRUNING SIZE CLASS 4” - 10” D.B.H. $142.10 x 14,210.00 $142.10 = 14,210.00 11” - 20” D.B.H. $245.00 x 122,500.00 $245.00 = 122,500.00 21”-30” D.B.H. $343.00 x 171,500.00 $343.00 = 171,500.00 31” and $524.30 x 104,860.00 $524.30 = 104,860.00 -YEAR TOTAL NOT TO EXCEED - DEMAND PRUNING (1st Year + 2nd Year + 3rd Year + 4th Year + 5th Year Total): One Million Eight Hundred Forty-Seven Thousand One Hundred Forty Dollars ($1,847,140.00). (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 11 of 16 (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) 4A. HOURLY RATES FOR BASIC SERVICES (OUTSIDE UNIT AND DEMAND PRUNING) TASK FIRST YEAR OF CONTRACT SECOND YEAR OF CONTRACT THIRD YEAR OF CONTRACT HOURLY RATE X HOURS = EXTENDED PRICE HOURLY RATE X HOURS = EXTENDED PRICE HOURLY RATE X HOURS = EXTENDED PRICE 3- - -YEAR TOTAL NOT TO EXCEED AMOUNT FOR BASIC SERVICES (1st Year + 2nd Year + 3rd Year Subtotal): -Five Dollars ($306,555). Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 12 of 16 (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) 4B. HOURLY RATES FOR BASIC SERVICES (OUTSIDE UNIT AND DEMAND PRUNING) TASK FOURTH YEAR OF CONTRACT FIFTH YEAR OF CONTRACT HOURLY RATE X HOURS = EXTENDED PRICE HOURLY RATE X HOURS = EXTENDED PRICE 3- 49.90 74,970.00 $249.90 74,970.00 - 317.55 23,816.25 $317.55 23,816.25 78.35 8,917.50 $178.35 8,917.50 178.35 3,567.00 $178.35 3,567.00 126.40 2,528.00 $126.40 2,528.00 211.70 4,234.00 $211.70 4,234.00 83.20 0 5,664.00 $283.20 0 5,664.00 -YEAR TOTAL NOT TO EXCEED AMOUNT FOR BASIC SERVICES (1st Year + 2nd Year + 3rd Year + 4th Year + 5th otal): Five Hundred Fifty-Three Thousand Nine Hundred Forty-Eight Dollars and Fifty Cents.($553,948.50). Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 13 of 16 (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) 5A. UNIT PRICES FOR TREE REMOVAL (TO 6 INCHES ABOVE SOIL LINE) SIZE CLASS 4” - 10” D.B.H . $355.00 = $3,550.00 $370.00 x = $7,400.00 $385.00 x $7,700.00 11” - 20” D.B.H . $755.00 = $15,100.00 $785.00 x = $31,400.00 $815.00 x $32,600.00 21”- 30” D.B.H . $2,100.00 = $25,200.00 $2,180.00 x = $54,500.00 $2,270.00 x $56,750.00 31” D.B.H . $2,900.00 = $23,200.00 $3,000.00 x = $45,000.00 $3,135.00 x $47,025.00 -YEAR TOTAL NOT TO EXCEED AMOUNT FOR TREE REMOVAL (1st Year + 2nd Year + 3rd Year Subtotal): -Nine Thousand Four Hundred Twenty-Five Dollars ($349,425). Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 14 of 16 5B. UNIT PRICES FOR TREE REMOVAL (TO 6 INCHES ABOVE SOIL LINE) SIZE CLASS 4” - 10” D.B.H . $377.30 = $7,546.00 $377.30 x = $7,546.00 11” - 20” D.B.H . $798.70 = $31,948.00 $798.70 x = $31,948.00 21”- 30” D.B.H . $2,224.60 = $55,615.00 $2,224.60 x = $55,615.00 31” D.B.H . $3,072.30 = $46,084.50 $3,072.30 x = $46,084.50 -YEAR TOTAL NOT TO EXCEED AMOUNT FOR TREE REMOVAL 1st Year + 2nd Year + 3rd Year + 4th Year th Year Total): -One Thousand Eight Hundred Twelve Dollars ($631,812.00). Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 15 of 16 6A. UNIT PRICES FOR STUMP GRINDING SIZE CLASS FIRST YEAR OF CONTRACT SECOND YEAR OF CONTRACT THIRD YEAR OF CONTRACT UNIT PRICE X QUANTITY = EXTENDED PRICE UNIT PRICE X QUANTITY = EXTENDED PRICE UNIT PRICE X QUANTITY = EXTENDED PRICE Less than 13” diameter - 30” -YEAR TOTAL NOT TO EXCEED AMOUNT FOR STUMP REMOVAL (First Year + Second Year + Third Year): Three Hundred Fifty-Three Thousand Two Hundred Fifty Dollars ($353,250) 6B. UNIT PRICES FOR STUMP GRINDING SIZE CLASS FOURTH YEAR OF CONTRACT FIFTH YEAR OF CONTRACT UNIT PRICE X QUANTITY = EXTENDED PRICE UNIT PRICE X QUANTITY = EXTENDED PRICE Less than 13” diameter 191.10 19,110.00 191.10 19,110.00 - 30” 372.40 74,480.00 372.40 74,480.00 485.10 48,510.00 485.10 48,510.00 -YEAR TOTAL NOT TO EXCEED AMOUNT FOR STUMP REMOVAL (1st Year + 2nd Year + 3rd Year + 4th Year + 5th Subtotal): Six Hundred Thirty Seven Thousand Four Hundred Fifty Dollars ($637,450.00). (EXHIBIT C IS CONTINUED ON THE NEXT PAGE.) Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Vers.: Aug. 5, 2019 Page 16 of 16 PRICING SCHEDULE TOTALS ACROSS ALL FIVE CONTRACT YEARS FIVE-YEAR TOTAL FOR PROGRAM PRUNING (from Section 1, above) $2,397,696.00 -YEAR TOTAL FOR PALM PRUNING (from Section 2, above) $92,506.00 -YEAR TOTAL FOR DEMAND PRUNING (from Section 3, above) $1,847,140.00 -YEAR TOTAL FOR HOURLY SERVICES (from Section 4, above) $553,948.50 -YEAR TOTAL FOR TREE REMOVAL (from Section 5, above) $631,812.00 E-YEAR TOTAL FOR STUMP GRINDING (from Section 6, above) $637,450.00 $616,055.00 -Six Thousand Six Hundred Seven Dollars and Seventy-Five ($6,776,608). BASE & ADDITIONAL SERVICES Total by Year (Additional Services-If (Base + Additional Docusign Envelope ID: 0F32F936-8E15-4119-B904-6825630C8411 Certificate Of Completion Envelope Id: 0F32F9368E154119B9046825630C8411 Status: Completed Subject: Please DocuSign: C21181420_West Coast Arborists_Amendment #1 Source Envelope: Document Pages: 16 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 O'Brien, Nanette AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Nanette.OBrien@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 10/2/2024 9:06:53 AM Holder: O'Brien, Nanette Nanette.OBrien@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Patrick Mahoney, President pmahoney@wcainc.com President Security Level: Email, Account Authentication (None)Signature Adoption: Drawn on Device Using IP Address: 46.193.0.233 Signed using mobile Sent: 10/2/2024 12:27:03 PM Viewed: 10/2/2024 12:34:34 PM Signed: 10/2/2024 12:34:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Richard Mahoney, Secretary rmahoney@wcainc.com VP/Secretary Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 12.215.229.227 Sent: 10/2/2024 12:34:50 PM Viewed: 10/2/2024 1:46:54 PM Signed: 10/2/2024 1:47:49 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Peter Gollinger peter.gollinger@cityofpaloalto.org Urban Forester City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 10/2/2024 1:47:52 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Carbon Copy Events Status Timestamp Victor Gonzalez vgonzalez@wcainc.com Vice President West Coast Arborists, Inc. Security Level: Email, Account Authentication (None) Sent: 10/2/2024 1:47:53 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Svetlana Milijkovic Svetlana.Miljkovic@CityofPaloAlto.org Management Analyst Copa Security Level: Email, Account Authentication (None) Sent: 10/2/2024 1:47:54 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/2/2024 12:27:04 PM Certified Delivered Security Checked 10/2/2024 1:46:54 PM Signing Complete Security Checked 10/2/2024 1:47:49 PM Completed Security Checked 10/2/2024 1:47:54 PM Payment Events Status Timestamps Dear Mayor and Council Members, On behalf of City Manager Ed Shikada, please see staff responses below for questions from Council Member Tanaka on the Monday, October 28 Council Meeting. Item 5: Approval of Construction Contract Number C25192135 with Anderson Pacific Engineering Construction, Inc. in the Amount Not-to-Exceed $6,215,000; Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to- Exceed Amount of $621,500 for Related, Additional but Unforeseen Work Which May Develop During the Project; Approval of Amendment Number 5 to Contract C21176592C with Carollo Engineers, Inc. in the Amount of $1,314,192 for a New Compensation Not-to-Exceed Amount of $14,695,384 for the Wastewater Treatment Fund for the 12kV Electrical Power Distribution Loop Rehabilitation Bid Package 2 Project at the Regional Water Quality Control Plant, Funded by the Plant Repair, Retrofit, and Equipment Replacement Project (WQ-19002); CEQA Status – Exempt Under Section 15301 Staff is confident in the sufficiency of the contingency, given the comprehensive bid package and improved knowledge about supply chain uncertainties. If additional contingency is needed, staff will return to Council with an appropriate recommendation. Staff requested proposals from all five pre-approved construction management firms but only received the proposal from Carollo Engineers. As described in the report, other firms indicated they would not be submitting a proposal because they were not well-positioned for the work or were nonresponsive. Carollo Engineers has performed well in its management of the Bid Package 1 construction project, and staff believes their proposal is cost-effective and positions the Bid Package 2 project for a positive outcome. This project is authorized by the existing partner agreements. Item 8: Approval of Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for Tree Pruning and Removal Services in the Amount of $3,011,228, for a New Total Not-to-Exceed Amount of $6,776,608, and Extend the Term by Two Years; CEQA Status – Exempt per Section 15301(h) (maintenance of existing landscape) Why hasn’t a competitive bidding process been conducted for this contract extension, and The RFP and the contract for this three -year general services agreement include the ability to extend the contract up to two years if both parties agree. The service quality West Coast Arborists (WCA) has provided over the three years of the contract has been excellent. Their proposal to provide a 2% cost reduction across all contract items for the two-year extension will save the City $55,818 over the Year Three contract prices for the two-year extension. Industry-wide, staff estimates the costs for municipal tree trimming services have increased between 9% and 15% since the release of the last RFP. WCA is currently servicing more than 350 municipal tree maintenance contracts and is considered an industry leader in providing these services. They operate with 100% diversion of all wood waste produced by their maintenance work. Most of the large wood generated, such as tree trunks, are processed by their Urban Wood Division for use in urban lumber and consumer ready products. All wood mulch generated by WCA tree maintenance is either processed into commercial arbor mulch or composted dire ctly into compost and other soil products. As described in the staff report, Palo Alto’s contract specifications for tree maintenance include standards that meet or exceed typical industry standards. City staff receives unsolicited feedback from citizens on their experience with WCA on a fairly regular basis. Compliments on the services provided and details on their positive interactions with the WCA contract crews far outweigh the few complaints received. Staff conducts an annual Community Forum session on Urban Forestry with the Parks and Recreation Commission, which is an opportunity for community members to learn about and provide input on management of the urban forest, including street tree maintenance. Item 10: Approval of Amendment No. 2 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,200,000 for a total not to exceed $3,801,500 to Continue the City of Palo Alto On-Demand Transit Service through June 2025; Approve a Cost Sharing Agreement with Stanford Research Park to Partially Fund the Service up to $600,000; and Adopt an Ordinance Amending the FY 2025 Municipal Fee Schedule to Increase Fares; CEQA status – not a project 1.Considering the current economic uncertainty, how does the city plan to mitigate potential financial impacts on ridership and funding stability? What specific economic indicators are being monitored to assess risk? Staff response: As written in the staff report: The City has secured funding from Stanford Research Park ($600,000) and the TFCA ($441,000) to reduce reliance on the General Fund. "The FY 2025 Adopted Operating Budget has sufficient funding... with $500,000 in net General Fund support." Staff also continues exploring new partners and grant opportunities. The service will run as a pilot through June 30, 2025, as the service as well as other alternatives will be evaluated for long -term viability. 2.How is the Palo Alto Link service's operational efficiency and cost compared to other similar on-demand transit services in our region? Are we confident that we are not investing in a service that is less efficient than alternatives? Staff response: Other California implementations of on-demand transit similar to this range from $43-$78 per trip (LA Metro, SacRT, OCTA, Carlsbad). The Link’s service and cost efficiency has improved and the operating costs per ride have dropped from over $30 to $24.60. Palo Alto Link remains in the pilot phase and will be re -evaluated during this 10- month extension. 3.Given the significant fare increases proposed, what specific measures are being implemented to ensure that ridership does not decline? Can you guarantee that these increases will not deter low-income users or seniors from using the service? Staff response: We will provide advance notice of the fare increase. The $4 fare is reasonable compared to VTA’s regular bus fare $2.50, given Palo Alto Link’s higher level of service. Staff will monitor ridership. The fare adjustments in conjunction with grant funding and renegotiation of the SRP cost-sharing agreement were a part the City’s strategy in the development of a more fiscally sustainable program, as directed by the Finance Committee during the FY 2025 budget process. The impact of these adjustments will be closely monitored as the program continues for the remainder of the fiscal year.