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Home My WebLink About12 TREE TRIMMING 04-03-06AGENDA REPORT MEETING DATE: APRIL 3, 2006 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION SUBJECT: EXTENSION OF WEST COAST ARBORIST, INC. TREE TRIMMING CONTRACT SUMMARY Staff recommends that the City Council approve a contract amendment to provide a five (5) year extension to the existing Tree Trimming Contract with West Coast Arborists, Inc. The proposed extension will increase the existing fee schedule by 15%, with no further increase for the duration of the five (5) year extension. The contract amendment will also provide for an option of additional five (5) one-year extensions based upon future Consumer Price Index adjustments. RECOMMENDATION It is recommended that the City Council approve a contract amendment to provide a five (5) year extension to the existing Tree Trimming Contract with West Coast Arborists, Inc. from July 1, 2006 through June 30, 2011 and authorize the Mayor to execute the contract amendment, subject to the City Attorney's approval. FISCAL IMPACT The proposed annual cost of this contract will be budgeted in FY 2006/07 in the amount of $420,000. Of this amount $310,000 will be funded through the City's General Fund and will be budgeted in the Public Works Landscape Division. The remaining $110,000 will be funded through the Tustin Landscape and Lighting District. BACKGROUND The City of Tustin has utilized the services of West Coast Arborists, Inc. ryvCA) since February of 1993 for a full range of tree maintenance services. 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. 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 and removing stumps. Extension of West Coast Arborist, Inc. Tree Trimming Contract April 3, 2006 Page 2 The original contract with WCA was for the period from February 16, 1993 through February 15, 1994 with three (3) one-year extension options. The contract was extended twice to June 30,1996. On June 17, 1996, the City Council approved an amendment to the Contract Agreement with WCA that extended the term of the contract for five (5) years from July 1, 1996 through June 30, 2001 and provided an option to the City to additionally extend the contract for up to five (5) one-year periods beyond the initial five year extension. On June 4, 2001, the City Council approved another amendment to extend the Contract Agreement for the final 5-year period from July 1, 2001 to June 30, 2006 in lieu of the five (5) one-year extensions. DISCUSSION The current amendment to the Contract Agreement with WCA expires on June 30, 2006. WCA has offered the City a five (5) year contract extension with a one time 15% price adjustment in the contract unit prices for the five (5) year term of the contract extension ending on June 30, 2011. WCA will also provide the City with a new Global Positioning System (GPS) based tree inventory and mapping system at no additional cost to the City. This tree inventory has a market value of approximately $60,000. Additionally, the amendment will allow for five (5) one-year extensions beginning on June 30, 2011 with cost adjustments based on the Consumer Price Index for the next five years. The requested 15% price adjustment in compensation by WCA is the first adjustment in the contract unit prices since the execution of the original contract in 1993. During the same time period, the Consumer Price Index has risen by more than 30%. 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 modify the current Contract Agreement and enter into a five (5) year extension with a 15% adjustment in compensation. It should be noted that should the service prove to be unsatisfactory or should the City feel that it would be in its best interest to re-bid the contract, there is a contract clause permitting the City to terminate the contract without cause, with 30 days notification to West Coast Arborists, Inc. Tim D. Serlet Director of Public Works/City Engineer Wisam Altowaiji Field Services Manager Ex! of West Coast tree trimming contract.doc. Attachment AMENDMENT TO CONTRACT AGREEMENT THIS AMENDMENT is entered into this - day of -' 2006, by and between the City of Tustin, a Municipal Corporation (herein referred to as "City"), and West Coast Arborists, Inc., a California Corporation, whose address is 2200 Via Burton Street, Anaheim, California, 92806 (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 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 exten~ion; D. WHEREAS, City and Contractor entered into amendment to the Agreement on September 17, 2001, which extended 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 desire to amend 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 Contractor also desire to adjust Contractor's compensation under this Agreement to reflect a negotiated 15% increase in the contract unit prices for the period from July 1, 2006 to June 30, 2011; G. WHEREAS, Contractor agreed to provide the City with a new Global Positioning System (GPS) based tree inventory and mapping system at no additional cost to the City. H. WHEREAS, City and Contractor find that another five-year extension of the Agreement will promote stability at a predictable cost and provide top quality tree maintenance for time certain; AGREEMENT The Agreement is hereby amended as follows: A. The term of this Agreement shall be for a period of five-years, commencing on July 1, 2006, through June 30, 2011, 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. City shall pay the Contractor a sum not to exceed the approved budget of approximately $420,000, for services rendered for each year of the five-year term of this Agreement. Payment shall be made according to the revised billing schedule, which reflects the 15% unit price adjustment attached as Exhibit C, and incorporated into this Agreement. The Contractor will also provide a GPS based tree inventory/mapping system at no additional cost to the City. No other price adjustment will be made. C. 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. THE CITY OF TUSTIN BY: (Seal) Mayor of the City of Tustin ATTEST: City Clerk of the City of Tustin APPROVED AS TO FORM: City Attorney APPROVED AS TO CONTENT: Date Public Works Director Date (Seal) CONTRACTOR Firm Name: West Coast Arborists, Inc. 2200 Via Burton Street, Anaheim, Ca 92806 BY: Patrick O. Mahoney TITLE: President ATTACH PROPER NOTARY ACKNOWLEDGMENT FOR SIGNATURES OF AUTHORIZED PERSON (S) EXHIBIT C SCHEDULE OF COMPENSATION 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 Removal/Replacement Per unit prices below $315,000 $105,000 $45.00 UNIT DESCRIPTION UNIT PRICE EXTRA WORK: Complete Tree & Stump Removal Diameter inch $ 15.00 Stump Only Removal Diameter inch $ 4.50 Tree Planting 15 gallon w/root barrier w/o root barrier 24 inch box w/root barrier w/o root barrier Each Each Each Each $109.00 $ 92.00 $224.00 $184.00 $ 299.00 Watering Day Crew Rental 3 men, aerial unit, dump truck and chip per Hourly $109.00 $230.00 Emergency Call Out Hourly GPS Tree Inventory/Mapping No Cost No Cost Use of Tree Inventory Software Program No Cost No Cost