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HomeMy WebLinkAbout11 AMENDMENT 5 TO WEST COAST ARBORISTS AGREEMENTAGENDA REPORT Agenda item Reviewed: City Manager Finance Director 11 MEETING DATE: NOVEMBER 6, 2:012 TO: FROM: JEFFREY C. PARKER, CITY MANAGER HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL SUBJECT: APPROVE AMENDMENT NO. 5 TO AN AGREEMENT FOR TREE MAINTENANCE SERVICES BETWEEN THE CITY OF TUSTIN AND WEST COAST ARBORISTS, INC. SUMMARY In April 2006, the City Council unanimously approved a five, (5) year extension with an additional 5 (1 year optional) for tree services with West Coast Arborists. In July of 2011, the Council approved the first of the one year options. Council Member Gavello contacted the City Manager office inquiring about the 2012 extension. Aftar review it was concluded that the Council has not taken action this year and as such, staff is requesting the City Council's consideration of the West Coast Arbor agreement. In e,valuating the history of our tree trimming services agreements, it is clear that staff has and continues to meet the goals of the Council to engage in contracts that provide high quality service in a cost effective manner (refer to page 3 for city comparisons). As a result of our evaluation, I am re,commending that the City enter into a four (4) year fixed agreement with no price increase with West Coast Arborists, to provide tree services rather than the one (1) year options for the next four (4) years. RECOMMENDATION It is recommended that the City Council approve contract amendment No. 5 with West Coast Arborists, inc to extend the existing contract by four (4) years from July 1, 2012 through June 30, 2016 with no increase in price and authorize the Mayor to execute the contract amendment, subject to the City Attorney's approval. ALTERNATIVE ACTIONS(s) 1. That the City Council approve amendment No. 5 with West Coast Arborists, inc. to extend the existing contract by one -year from July 1, 2012 to June 30, 2013 with no increase in cost and that each subsequent no cost increase one -year extension through 2016 be, re,viewed and approved by City Council. 2. That the, City Manager be authorized to extend each no cost increase one -year extension through 2016. FISCAL IMPACT There is no cost increased with this action. The proposed annual cost of this contract is a sum not to exceed the approved annual budget for services rendered for each year of the five year terra. The annual cost of this contract is budge,ted at $433,000. Of this amount, $301,000 is funded through .the City's General Fund and the remaining $132,000 is funded through the Tustin West Coast Arborist, Inc. Tree Trimming Contract November 6, 2012 Page 2 Landscape and Lighting District Fund. Furthermore, if one of the other two alternative actions is taken, there is still no cost increase associated with either action since prior City Council action approved a sum not to exceed the approved budget for services rendered for each year of a five year term through 2016 with no cost increase. DISCUSSION /BACKGROUND The City of Tustin has utilized the services of West Coast Arborists, Inc. (WCA) since February of 1993 for a full range of tree maintenance services. On February 16, 1993 the City Council unanimously approved the award of contract for tree trimming services to WCA. The original bid was extremely competitive and allowed for the trimming of 5,094 City trees at a unit bid price of $39. A summary of the original bids is summarized below: Bid - -- -- ---- ----- ------- uantit — amity - -- --- Unit Price -- --- - -------- - - - -- -- Extended Amount - - - Extended Amount Coast Arborists 5094 $ 39 $ 198,666 66 Bidder 2 - - -- - --- -- --- --- 5094 -- -- --- -- --- ---- -- -- -- $ 47 - - --- -- -------- - - - - -- --198, -- -- $ 239,418 - - --- ---- - - Bidder 3 -- - -- — 5094 $ 49 _ $ 249,606 Bidder 4 5094 $ 72 $ 366,768 In terms of context, all subsequent City Council actions are summarized below: • On January 17, 1994 after successfully completing the initial one year contract, the City Council unanimously approved a one year renewal no cost increase. • On May 1, 1995 the City Council unanimously approved a one year renewal with no cost increase. • On June 17, 1996 the City Council unanimously approved a five year extension and authorized an expansion of the Contract to provide tree trimming services for 9,135 trees per year with no increase in the per tree unit price. At that time, the City's landscape maintenance contract was restructured, shifting 1,221 to WCA that were previously the responsibility of the City's landscape maintenance contractor. Additionally, WCA assumed responsibility of the tree trimming from the City's landscape contractor for the Tustin Landscape and Lighting District area. This shift added 2,820 trees to their annual maintenance schedule. In addition, WCA provided assistance in the development of a Street Tree Master Plan in which they collected the entire street tree inventory and provided the City with a database operating program at no cost. • On June 4, 2001 the City Council unanimously approved a five year extension with no cost increase in lieu of a five one year extensions. • On April 3, 2006 the City Council unanimously approved a five year extension and for the first time in 12 years of providing service, increased the fee schedule by 15 %, with no further increase for the duration of the five year extension. Labor, fuel, and insurance costs had increased substantially over that 12 years and although WCA tried to minimize the impact of these changes, they could not continue to absorb those cost. That resulted in a revised per tree unit price of $45 per tree, which was still less than the second low bid price in the original 1993 bid. During this 12 year period, the Consumer Price Index had risen by more than 30 %. By comparison, the average price for gas in 1993 was $1.07 per gallon. In 2006, the average price was $2.59 per gallon. Fuel alone increased 142 %. Insurance and West Coast Arborist, Inc. Tree Trimming Contract November 6, 2012 Page 3 workers compensation increased 231.4% and 294.5 %, respectively. Despite the economic trends; the integrity, health and preservation of Tustin's urban forest remained a common goal and WCA provided the City with a new Global Positioning System (GIPS) based tree inventory and mapping system at no cost to the City, an estimated market value of approximately $60,000. On July 19, 2011 the City Council approved 4 -1 (Councilmember Gavello dissenting) the first extension of 5 one -year extensions with no cost increase. WCA and the City have forged a very productive, efficient and effective working relationship. As a result of the successful partnership built between the City and WCA, more and more trees have been maintained annually at low cost and a dedicated commitment to providing quality urban forestry maintenance to residents and businesses. Staff has received numerous compliments on the work that is performed by WCA. The cooperation of WCA with City staff to implement a sound tree maintenance program was instrumental in the recognition of the City by the National Arbor Day foundation as a Tree City USA for the past 12 years and the 2010 Sterling Tree City USA in recognition of ten years of participation in the Tree City USA Growth Award program. All work has been performed in a timely, efficient and professional manner with little disruption to citizen and street traffic. WCA staff has also been receptive and accommodating to the needs of staff and citizens while responding to emergencies, planting new trees, special request/tree donations, and removing stumps. Once again, WCA has notified the City that they will hold the current pricing with no increase for the duration of the five year extension while also proposing the following to help offset the City's expenses and financial strain; (i) a payment discount of 2 %, if paid within 30 days from receipt of invoice; (ii) provide the City with access to WCA tree inventory and record - keeping system (ArborAccess) with unlimited software support & training (valued at $3,600 annually); and (iii) continued to participate in the City's Arbor Day festivities. The following table provides a price comparison for tree pruning service within Orange County and recent bids for some agencies of greater Los Angeles County: City of Tustin $ 45.00 Local Cities ------- --- Laguna Hills - --- ------ $ -- --- ---------------- --- --- 4_5.00________ Yorba Linda $ 46.50 Costa Mesa $ 46.60 Fullerton $ 47.00 Santa Ana $ 47.00 Lake Forest $ 48.00 San Juan Capistrano $ 55.00 Laguna Niguel $ 56.00 -- -- ---------------------- - - -- --- Anaheim Dana Point ------- $ $ - -- --- 58.00 59.00 Huntington Beach (avg) $ 130.00 County of Orange $ 135.00 Mission Viejo (avg) $ 136.00 West Coast Arborist, Inc. Tree Trimming Contract November 6, 2012 Page 4 Carson 1 $ 55.00 Burbank --------------- ------ -- -- ---- ---------- - - - - -- ( $ -------------------------------------- 70.00 Cerritos (avgJ $ 99.00 - ---- -- -- ---- -- ---- --- -- ---- -------- - ----- Beverly Hills (avg) ------ --- -- - -- - $ ---- -------- --- - -- -- -- - 125.00 Santa Monica 1 $ 174.00 The City's urban forest has an estimated value of $50.11VI and is comprised of nearly 16,000 trees, ranging in size from 15 to 60+ feet in height. In the interest of securing a measure of financial security for both the City and the contractor and to retain a quality service provider, staff recommends that the City Council approve Amendment No. 5 to extend the current Contract Agreement with West Cost Arborists, Incorporated. It should be noted, that if the service prove to be unsatisfactory or the City feels that it would like to go out to bid sooner for whatever reason, there is a contract clause permitting the City to terminate the contract, without cause, with 30 days notification to WCA. Attachment: Contract Amendment No. 5, Exhibit C AMENDMENT NO. 5 TO AN AGREEMENT FOR TREE MAINTENANCE SERVICES BETWEEN THE CITY OF TUSTIN AND WEST COAST ARBORISTS, INC. THIS AMENDMENT is entered into this day of 2012, by and between the City of Tustin, a Municipal Corporation (herein referred to as "City'), and West Coast Arborists, Inc., a California Corporation, (herein referred to as "Contractor'). RECITALS A. WHEREAS, City and Contractor entered into an Agreement dated February 16, 1993, the "Agreement', wherein Contractor agreed to perform tree maintenance services in accordance with the agreement and specifications entitled "Contract Tree Trimming "; B. WHEREAS, the initial term of the Agreement was for one year, with the option to be extended for three additional one -year periods; C. WHEREAS, City and Contractor entered into an Amendment to that Agreement on June 17, 1996, which extended the Agreement for a period of five years from July 1, 1996 through June 30, 2001, with the option to be extended for up to five, one -year periods beyond the initial five -year extension; D. WHEREAS, City and Contractor entered into an amendment to the Agreement, for another five years from July 1, 2001 through June 30, 2006 at the same rate of compensation "; E. WHEREAS, City and the Contractor entered into an Agreement on April 3, 2006 which extended the Agreement for an additional five (5) year period from July 1, 2006 through June 30, 2011 with an option to be extended for five (5) one -year extensions, beyond the proposed five -year extension; F. WHEREAS, City and the Contractor entered into the first of five (5), one -year extensions to the current Agreement for the period of July 1, 2011 through June 30, 2012; G. WHEREAS, City and the Contractor desire to extend the Agreement for an additional four -year period from July 1, 2012 through June 30, 2016; H. WHEREAS, City and Contractor also agree to hold the Contractor's compensation under this Agreement to the 2011 /2012 contract unit prices for the period from July 1, 2012 to June 30, 2016 with no increase in price for four - years; WHEREAS, Contractor agreed to provide the City a payment discount of 2.0% for payment made within 30 days from receipt of an invoice; J. WHEREAS, Contractor agreed to provide the City with access to Contractor's tree inventory and record- keeping system (ArborAccess) with unlimited software support and training while under contract for tree maintenance at no additional cost to the City; K. WHEREAS, Contractor agreed to participate in the City's Arbor Day festivities at no additional cost to the City; and L. WHEREAS, City and Contractor find that a four -year extension of the Agreement will promote stability at a predictable cost and provide top high quality tree maintenance for time certain. AGREEMENT The Agreement is hereby amended as follows: A. Article VII of the Agreement is amended so that the term of this Agreement shall be for a period of four - years; commencing July 1, 2012 through June 30, 2016, unless terminated pursuant to Section B, Page B -2, Paragraph 6 "Termination During Contract Period ", of this Agreement, or terminated without cause by the City with 30- days prior written notification. B. The City shall pay the Contractor a sum not to exceed the approved annual budget for services rendered for each one the four year term pursuant to the revised and amended Exhibit C, attached to this amendment with no increase in price for four - years. C. West Coast Arborist will also discount all invoices by 2% that are paid within 30 -days of receipt. D. Except as expressly amended by this Amendment, all other terms and conditions of the Agreement and all attachments and exhibits thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date first above written. APPROVED AS TO FORM: City Attorney APPROVED AS TO CONTENT: Douglas S. Stack Public Works Director (Seal) THE CITY OF TUSTIN BY: Mayor of the City of Tustin ATTEST: City Clerk of the City of Tustin CONTRACTOR Firm Name: West Coast Arborists, Inc. 2200 Via Burton Street Anaheim, CA 92806 AN Patrick O. Mahoney TITLE: President ATTACH PROPER NOTARY ACKNOWLEDGEMENT FOR SIGNATURES OF AUTHORIZED PERSON (S) WN:n:3ri91 6Y�I `I�r+I�I��i]�K�I�I »t�y�ti[iIt<I The undersigned certifies that he /she has read all documents related to this bid proposal and understands all terms and conditions related thereto; and in conformity with the terms and conditions, hereby proposes to the City of Tustin the following: UNIT PRICE EXTENDED PRICE AS DESCRIBED IN THIS CONTRACT: Trim 7,000 trees in various locations throughout the City of Tustin $45.00 $315,000 Removal /Replacement Per unit prices below $118,000 UNIT UNIT PRICE DESCRIPTION EXTRA WORK: Complete Tree & Stump Removal Diameter inch $ 15.00 Stump Only Removal Diameter inch $ 4.50 Tree Planting 15 gallon w /root barrier Each $109.00 w/o root barrier Each $ 92.00 24 inch box w /root barrier Each $224.00 w/o root barrier Each $184.00 Watering Day $ 299.00 Crew Rental 3 men, aerial unit, dump truck and chip per Hourly $109.00 Emergency Call Out Hourly $230.00 GPS Tree Inventory/Mapping No Cost No Cost Use of Tree Inventory Software Program No Cost No Cost