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HomeMy WebLinkAbout08 APPROVE AMENDMENT NO. 3 FOR TREE MAINTENANCE SERVICES WITH WEST COAST ARBORISTS, INC.• Agenda Item 8 AGENDA REPORT Reviewed: City Manager Finance Director MEETING DATE: DECEMBER 17, 2019 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE AMENDMENT NO. 3 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 4% to adjust for increased cost for insurance with a five-year term that will be priced in accordance with any increase in the CPI for each of those years. RECOMMENDATION It is recommended that the City Council: 1. Approve Contract Amendment No. 3 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; and 2. Approve additional appropriations of $187,000 from the Gas Tax Fund (Fund 130), $40,000 from the Park Development Fund (Fund 131), and $3,000 from the General Fund (Fund 100). FISCAL IMPACT An additional appropriation in an amount of $230,000 from various funds are required to cover the cost of the additional insurance and the tree removal needed to minimize the risk to the City. The proposed appropriation of $187,000 from the Gas Tax Fund will be used for the maintenance of trees within the public street right-of-way. The proposed appropriation of $40,000 from the Park Development Fund will be used for the maintenance of trees within City parks. The proposed appropriation of $3,000 from the General Fund will be used for the maintenance of trees within City facilities. CORRELATION TO THE STRATEGIC PLAN This item contributes to the fulfillment of the City's Strategic Plan Goal B: Create and implement a plan to protect the City's public assets. Specifically, the implementation of Strategy 5e, public safety needs. BACKGROUND/DISCUSSION Over the last several years there have been a number of lawsuits against California municipalities resulting from damages sustained from tree failure. The City's insurance carrier, California Insurance Pool Authority (CIPA), is requesting its member agencies increase the current general liability coverage limits provided by their tree maintenance contractors. Current insurance is $1,000,000 of liability coverage per occurrence and $2,000,000 in aggregate liability coverage. The CIPA proposed limits are $20,000,000 of liability coverage per occurrence and $25,000,000 in aggregate liability coverage. WCA is unable to renew the existing Agreement without a price increase to offset the cost associated with increasing their insurance coverage, which is estimated at $40,000 annually. Contract Amendment — West Coast Arborists December 17, 2019 Page 2 WCA initially proposed an increase of nine percent (9%) for the final year of the contract, FY 2019- 2020. Recognizing that an increase of that magnitude would present a significant hardship to the City's operating budget, staff explored other options, including issuing a comprehensive Request for Proposals, revising the specifications and frequency of tree trimming and maintenance, and negotiating a contract extension for a smaller increase. In negotiating with WCA, the City has been able to reach an agreement that will maintain the same level and quality of services currently provided at an increased cost of approximately four percent (4%) through the end of the current fiscal year with a five-year term through December 31, 2024. Annual fee adjustments will be priced in accordance with the increase in the CPI for each of those years. These negotiated prices are significantly more favorable to the City than other municipalities have been able to achieve in their recent bids and contract renewals. In addition to the increased insurance coverages provided by WCA, staff has been conducting more aggressive evaluations of trees that are declining and/or diseased. The objective of these evaluations is to determine the health, viability and any risk that could be associated with the condition of certain trees. The evaluation focused on mature trees that are showing signs of decline and/or a risk potential that could present a liability to the City. Evaluation results indicate that 188 trees require removal. Several additional trees require specialized pruning and treatment in order to minimize the risk exposure associated with these trees. 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, all trees have been maintained at low cost and a dedicated commitment to providing quality urban forestry maintenance to residents and businesses. All work is 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. 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. 3 with West Cost Arborists, Incorporated. Do las . Stack, P.E. Di ct of Public Works/City Engineer Attachment- Amendment No. 3 to Agreement with West Coast Arborist, Inc. SACily Couni Items12019 Council Item M-17-20191WCA Third Contract AmendmariMpprove Third Contract Amendment for WCA SC V2.docx THIRD AMENDMENT TO CONTRACT AGREEMENT THIS THIRD AMENDMENT (the "Amendment") is entered into the day of 2019, 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 entered into the First Amendment to the Agreement on July 5, 2016, and extended the Agreement until June 30, 2018. C. WHEREAS, City and Contractor entered into the Second Amendment to the Agreement on July 1, 2018, and extended the Agreement until June 30, 2019. D. WHEREAS, City and Contractor desire to adjust Contractor's compensation under this agreement to reflect a 3.1 % increase in accordance with the Consumer Price Index for Los Angeles, Riverside and Orange County Metropolitan area, effective December 17, 2019. E. WHEREAS, City has requested a change to the Contract insurance requirements and agrees that said changes require additional compensation to Contractor. F. WHEREAS, City and Contractor agree to adjust the fee schedule to reflect a four percent (4%) increase to all contract items listed on the fee schedule, effective December 17, 2019. G. WHEREAS, City and Contractor desire to adjust the term of the contract through December 31, 2024. AGREEMENT The Agreement is hereby amended as follows: A. Term. The term of the agreement shall be December 17, 2019 through December 31, 2024. B. 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 December 17, 2019. The same method of adjustment shall apply to all future annual fee adjustments. C. Additional Insurance Requirements Contractor shall maintain commercial general liability insurance with coverage in an amount not less than $ 20,000,000 per occurrence, $ 25,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. D. Effect of Amendment This Amendment No. 3 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. 3 and shall continue in full force and effect. In the event of any conflict or inconsistency between the provisions of this Amendment No. 3 and any of the provisions of the Agreement, the provisions of this Amendment No. 3 shall in all respects govern and control. E. 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. 3, by the same. F. Entire Agreement. The Agreement together with Amendment No. 3 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. 3 shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees. G. Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Amendment No. 3 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. 3, which shall be interpreted to carry out the intent of the partied hereunder. H. Authority The persons executing this Amendment No. 3 on behalf of the parties hereto warrant that they are duly authorized to execute this Amendment No. 3 on behalf of said parties and that by do executing this Amendment No. 3 the Parties hereto are formally bound to the provisions of this Amendment No. 3. IN WITNESS WHEREOF, this Amendment No. 3 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. APPROVED AS TO FORM: City Attorney m ATTEST: THE CITY OF TUSTIN Mayor of the City of Tustin City Clerk of the City of Tustin 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: Full prune Hardwood tree 0" - 6" Diameter Standard Height 7" - 12" Diameter Standard Height 13" - 18" Diameter Standard Height 19" - 24" Diameter Standard Height 25" - 30" Diameter Standard Height 31" - 36" Diameter Standard Height 36"+ Diameter Standard Height Crown Raise/Clearance Prune Hardwood tree 0" - 6" Diameter Standard Height 7" - 12" Diameter Standard Height 13" - 18" Diameter Standard Height 19" - 24" Diameter Standard Height 25" - 30" Diameter Standard Height 31" - 36" Diameter Standard Height 361)+ Diameter Standard Height Palm Tree Trimming: Prune Date Palm (Phoenix spp.) Clean Trunk for Date Palm (Phoenix spp.) Prune Fan Palm (Washingtonia spp.) Clean Trunk for Fan Palm (Washingtonia spp.) Prune all other Palm Species Unit Price in Figures $ 55.20 $ 84.33 $ 84.33 $ 84.33 $ 142.41 $ 142.41 $ 142.41 $ 40.67 $ 55.20 $ 55.20 $ 55.20 $ 84.33 $ 84.33 $ 84.33 $ 142.41 $ 14.53/foot $ 65.41 $ 14.53/foot $ 65.41 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 $ 29.07 $ 14.53 36 inch Box $ 7" - 12" DSH $ 29.07 $ 29.07 72.68 Fan Palm 10-30 feet BTH 13" - 18" DSH $ 50.87 $ 29.07 19" - 24" DSH $ 50.87 $ 29.07 25" - 30" DSH $ 50.87 $ 43.61 31" - 36" DSH $ 50.87 $ 43.61 Over 36" DSH $ 50.87 $ 43.61 Stump grinding per stump diameter inch at grade $ 10.15 Tree Plantinq (Unit Cost shall include tree + Dlantina + double staked with 2" lodge Doles 15 Gallon $ 145.36 24 inch Box $ 290.70 36 inch Box $ 944.78 48 inch Box $ 1.453.52 Fan Palm per foot BTH (brown trunk height) $ 72.68 Fan Palm 10-30 feet BTH $ 72.68 Tree Watering: Watering of young trees, water truck/operator-per day $ 581.40 Emergency Services: Fully equipped 3 person crew called in for emergency service: During normal business hours $ 218.10 After hours, weekends &/or holidays $ 348.84 ISA Certified Arborist — per hour $ 145.36 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: $ 14.53 per lineal foot Root Pruning and installation of 18 inch root barrier: $ 27.63 per lineal foot Root. Pruning and installation of Root barrier Product depth will vary from 12" to 30" and could include horizontal applications. $ 27.63 per lineal foot Total estiriiated cost;(q Total + B Total + C +Total) $ 69.79 Generat"Labor Rates Hourly rate for 1 Ground Person Hourly rate for 1 Equipment Operator Hourly rate for 1 Trimmer $ 72.70 $ 72.70 $ 72.70 Day Rate Service Crew: Boom truck per eight (8) hour day to include a chip body, low decibel chipper, 1 trimmer, 2 ground persons $ 1,744.80