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HomeMy WebLinkAbout06 APPROVE AMENDMENT NO. 1 TO AN AGREEMENT FOR TREE MAINTENANCE SERVICES BETWEEN THE CITY OF TUSTIN & WEST COAST ARBORISTS, INC.G1TY �AGENDAIR'ETORT MEETING DATE: JULY 5, 2016 TO: JEFFREY C. PARKER, CITY MANAGER Agenda Item Reviewed: City Manager Finance Director FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE AMENDMENT NO. 1 TO AN AGREEMENT FOR TREE MAINTENANCE SERVICES BETWEEN THE CITY OF TUSTIN AND WEST COAST ARBORISTS, INC. SUMMARY: Staff recommends that the City Council approve a contract amendment to the Urban Forestry Management Contract with West Coast Arborists, Inc. (WCA). The amendment includes an increase of 31% to adjust for a Department of Industrial Relations (DIR) ruling that increases the prevailing wage for the classifications employed by WCA. The current contract is for $502,161 and the amendment will set the limit at $657,831. RECOMMENDATION: It is recommended that the City Council approve contract Amendment No. 1 with West Coast Arborists, Inc. to adjust the fee schedule and authorize the Mayor to execute the contract amendment, subject to the City Attorney's approval. FISCAL IMPACT: Sufficient funds for this contract service have been appropriated in the Fiscal Year 2016- 2017 Public Works Department Operating Budget. CORRELATION TO THE STRATEGIC PLAN: This item relates to the City's Strategic Plan by implementing Goal B (3), by way of maintenance and improvement of public facilities. BACKGROUND/DISCUSSION Since 1999, WCA has utilized the prevailing wage determination for the craft: "Landscape Maintenance Laborer' which amounts to an hourly wage rate of approximately $9-$10. This classification was used for all tree maintenance work not related to construction or line clearance, as they have wage classifications of their own. For many years, unions have disputed with the DIR, and tree maintenance companies, that the work performed for public agencies consisted of construction work as opposed to maintenance work and therefore should be utilizing the "Construction Laborera' classification, which amounts to an hourly wage rate between $40-$50. After much thought, WCA agreed to enter into a Collective Bargaining Agreement (CBA) with the Southern California District Council of Laborers and Its Affiliated Local Unions (LiUNA) on June 1, 2015. Subsequently, on August 22, 2015, a new prevailing wage determination was issued by the DIR. The new rates stem from WCA's CBA with the Laborers Union and although not as high as the Construction Laborers rates as originally proposed by the DIR and Unions; they are more than the wages for the current classification of Landscape Maintenance Laborer. WCA approached the City on March 15, 2016 to discuss a contract increase that is a result of the new prevailing wage determination for "Tree Maintenance (Laborer)" issued on August 22, 2015 by the DIR. The adjustment to wages has substantially altered WCA's ability to perform the services at the amounts originally agreed to. For the past year, WCA chose to absorb the cost increase to labor in order for cities to better plan for this increase. However, wage rates, as determined by the DIR, will increase on July 1, 2016 and each July thereafter. At this time, WCA proposes a 31 percent cost increase to account for the DIR's pre -determined increase. The requested increase exceeds the consumer price index that is authorized per the existing agreement and therefore requires City Council approval. Staff has met with WCA multiple times to discuss the impacts of the DIRs decision and has concluded that the amendment is necessary to continue to provide tree maintenance services throughout the City. The City of Tustin has utilized WCA since February of 1993 for a full range of tree maintenance services. 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. 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 City staff and citizens while responding to emergencies, planting new trees, special request/tree donations, and removing stumps. The DIR ruling will impact labor costs for all municipal tree maintenance service providers. It is unlikely that competitive bidding would result in cost savings. The City's urban forest has an estimated value of $52AM and is comprised of over 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. 1 with West Cost Arborists, Incorporated. Do gas . Stack, P.E. D. e o of Public Works/City Engineer Attachment: Amendment No. 1 to Agreement with West Coast Arborist, Inc. FIRST AMENDMENT TO CONTRACT AGREEMENT THIS FIRST AMENDMENT (the "Amendment") is entered into the day of 2016, 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"). This Amendment is made with reference to the following: RECITALS A. WHEREAS, City and Contractor entered into an Agreement dated August 1, 2013 (the "Agreement"), wherein Contractor agreed to perform tree maintenance services in accordance with the Agreement and specifications entitled "Urban Forestry Management." B. WHEREAS, City and Contractor desire to adjust Contractor's compensation under this Agreement to reflect a 31% increase to all contract items listed on the Fee Schedule, effective July 1, 2016 for the 2016/2017 fiscal year. This increase will reflect the rise in the Consumer Price Index, for Los Angeles, Riverside and Orange County Metropolitan area in future years. AGREEMENT The Agreement is hereby amended as follows: A. Compensation 1. The areas of tree maintenance services to be provided by the Contractor under this Agreement and the corresponding compensation are amended as follows in Exhibit A, Fee Schedule C. 2. Contracted unit prices are subject to annual review effective July 1 of each year to reflect a not-to-exceed Consumer Price Index (CPI) changes in cost. The rates may be adjusted each year on July 1, at the sole discretion of the City and, upon written request for an increase from Contractor one-hundred twenty (120) days prior to July 1, all based upon the percentage change in the CPI for All Urban Consumers for the Los Angeles-Riverside-Orange County Metropolitan Area ("Index") published by the United States Department of Labor, Bureau of Statistics for the preceding year (December to December) calculated to the nearest one cent. The Index published more immediately preceding the effective adjustment date is to be used in determining the amount of adjustment. If the Index has changed from the previous Index basis, the unit prices for the following year of the term of the contract shall be set, if approved by the City, by multiplying the previous unit prices by a ratio, the numerator being the new Index value and the denominator being the previous Index value. The Index value for the beginning of the original contract term shall be the Index in effect at the time of the proposal. If only a portion of a unit price changes, that portion alone shall be adjusted by the ratio. The portion of the total unit price to be adjusted shall be determined by the Director of Public Works based on documentation submitted by the Contractor. The first rate adjustment, if approved by the City, will be effective July 1, 2017. The same method of adjustment shall apply to all future renewal years. B. Effect of Amendment This Amendment No. 1 is supplemental to the Agreement and is by reference made a part of the Agreement. All of the terms, conditions, and provisions of the Agreement unless specifically modified herein, shall apply to this Amendment No. 1 and shall continue in full force and effect. In the event of any conflict or inconsistency between the provisions of this Amendment No. 1 and any of the provisions of the Agreement, the provisions of this Amendment No. 1 shall in all respects govern and control. C. Incorporation of Recitals The Recitals above are hereby incorporated into this section as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of Amendment No. 1, by the same. D. Entire Agreement. The Agreement together with Amendment No. 1 constitute the entire Agreement between the parties and supersedes all prior negotiations, arrangements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof. No amendments or other modifications of the Agreement and Amendment No. 1 shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees. E. Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Amendment No. 1 shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Amendment No. 1, which shall be interpreted to carry out the intent of the partied hereunder. F. Authority The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that they are duly authorized to execute this Amendment No. 1 on behalf of said parties and that by do executing this Amendment No. 1 the Parties hereto are formally bound to the provisions of this Amendment No. 1. IN WITNESS WHEREOF, this Amendment No. 1 has been executed in the name of City, by its officer's thereunto duly authorized, and Contractor as of the day and year first above written. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the year and date first above written. THE CITY OF TUSTIN BY: Mayor of the City of Tustin ATTEST: City Clerk of the City of Tustin APPROVED AS TO FORM: City Attorney CONTRACTOR BY: Patrick Mahoney President Exhibit A SCHEDULE C FOR URBAN FORESTRY MANAGEMENT CITY OF TUSTIN The undersigned proposes to furnish all materials, supplies, equipment and/or services set forth herein, subject to all conditions outlined in the RFP, at prices indicated below: Hardwood Tree Trimming: Unit Price in Figures Full prune Hardwood tree 0" - 6" Diameter Standard Height $ 49.75 7" - 12" Diameter Standard Height $ 76.00 13" - 18" Diameter Standard Height $ 76.00 19" - 24" Diameter Standard Height $ 76.00 25" - 30" Diameter Standard Height $ 128.35 31" - 36" Diameter Standard Height $ 128.35 36"+ Diameter Standard Height $ 128.35 Crown Raise/Clearance Prune Hardwood tree 0" - 6" Diameter Standard Height $ 36.65 7" - 12" Diameter Standard Height $ 49.75 13" - 18" Diameter Standard Height $ 49.75 19" - 24" Diameter Standard Height $ 49.75 25" - 30" Diameter Standard Height $ 76.00 31" - 36" Diameter Standard Height $ 76.00 36"+ Diameter Standard Height $ 76.00 Palm Tree Trimming: Prune Date Palm (Phoenix spp.) $ 128.35 Clean Trunk for Date Palm (Phoenix spp.) $ 13.10/foot Prune Fan Palm (Washingtonia spp.) $ 58.95 Clean Trunk for Fan Palm (Washingtonia spp.) $ 13.10/foot Prune all other Palm Species $ 58.95 Exhibit A Root Pruning: Annual total estimated cost includes the cost for all labor, materials, permits, special equipment, licenses, hauling and disposal fees necessary to complete the contract requirements. Root pruning and installation shall be done on an"as needed"basis per Department's requirement. Root Pruning and installation of 12 inch root barrier: $ 13.10 per lineal foot Root Pruning and installation of 18 inch root barrier: $ 24.90 per lineal foot Root Pruning and installation of Root barrier Product depth will vary from 12" to 30" and could include horizontal applications. $ 24.90 per lineal foot Annual total estimated cost (A Total + B Total + C + Total) $ 62.90 General Labor Rates Hourly rate for 1 Ground Person $ 65.50 Hourly rate for 1 Equipment Operator $ 65.50 Hourly rate for 1 Trimmer $ 65.50 Day Rate Service Crew: Boom truck per eight (8) hour day to include a chip body, low decibel chipper, 1 trimmer, 2 ground persons $ 1,572.00 Exhibit A Tree Removal: Tree and Stump removal per inch trunk Diameter at Standard Height (DSH) Removal Cost Removal Cost (Milled Urban Lumber) (Standard Removal) 0" - 6" DSH $ 26.20 $ 13.10 7" - 12" DSH $ 26.20 $ 26.20 13" - 18" DSH $ 45.85 $ 26.20 19" - 24" DSH $ 45.85 $ 26.20 25" - 30" DSH $ 45.85 $ 39.30 31" - 36" DSH $ 45.85 $ 39.30 Over 36" DSH $ 45.85 $ 39.30 Stump grinding per stump diameter inch at grade $ 9.15 Tree Planting (Unit Cost shall include tree +planting + double staked with 2"lodge poles) 15 Gallon $ 131.00 24 inch Box $ 262.00 36 inch Box $ 851.50 48 inch Box $ 1,310.00 Fan Palm per foot BTH (brown trunk height) $ 65.50 Fan Palm 10-30 feet BTH $ 65.50 Tree Watering: Watering of young trees, water truck/operator-per day $ 524.00 Emergency Services: Fully equipped 3 person crew called in for emergency service: During normal business hours $ 196.50 After hours, weekends Wor holidays $ 314.40 ISA Certified Arborist— per hour $ 131.00