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HomeMy WebLinkAboutE-16 Staff Report - West Coast Arborist 2 year extension CONSENT ITEM E-16 TO: HONORABLE MAYOR AND MEMBERS OF THE C ITY COUNC IL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MIKI CARPENTER, DIRECTOR OF RECREATION AND FAMILY SERVICES DATE: MAY 6, 2019 SUBJECT: CONTRACT EXTENSION FOR WEST COAST ARBORIST, INC FOR CITY-WIDE TREE MAINTENANCE SERVICES BACKGROUND: West Coast Arborist, Inc. (WCA) has been the City’s Tree Maintenance contractor since 1999. WCA has provided the City with a successful tree maintenance program which includes a web based tree inventory program. On March 21, 2016, the City Council approved bid specifications and authorized staff to proceed with the formal procurement process for tree maintenance services. WCA was awarded a three year contract with two, one-year extensions. The City of Azusa’s existing three (3) year contract with WCA for tree maintenance services for both the Parks and Electric Divisions, is set to expire on June 30, 2019. The original contracted amount was $622,799. As noted, the current contract allows for two, one-year extensions, for a total of five (5) years. While WCA is interested in an extension beyond the current third year, they are requesting a cost adjustment of 2.7% based on the Consumer Price Index (CPI), which brings the annual total cost to $639,615, an increase of $16,816, for routine tree maintenance services. Making this adjustment, but extending for two years instead of only one, ensures that the costs will be frozen at this rate for the remainder of the contract term. RECOMMENDATION: It is recommended that the City Council take the following actions: 1) Approve a two-year extension with West Coast Arborist, Inc. for City-wide tree maintenance services for trees in the public and utility right of ways in the amount of $677,992, which includes a 6% contingency for non-routine and emergency services as needed; and 2) Authorize the City Manager to execute, in a form acceptable to the City Attorney, the two year extension. May 6, 2019 Page 2 ANALYSIS: WCA is requesting a cost adjustment of 2.7% based on the CPI, which brings the annual total cost to $639,615, an increase of $16,816. WCA noted that this increase was necessitated due to increased labor expenses. While the current contract allows two, 1-year extensions, the recommended action would ensure that the cost will be locked in for two years instead of only one. FISCAL IMPACT The recommended actions award a contract extension to WCA in the amount of $639,615, annually. Further, these actions authorize staff to amend the contract up to 6%, or $38,377, for a not-to-exceed contract amount of $677,992. These funds are budgeted in the following accounts: Recreation and Family Services account #10-25-420-000-6493; Light and Water Electrical Operation Budget account #33-40-735-930-6493; Gas Tax account #12-25-420-000-6493; and Public Benefit account #24-40-739-082-6625/RSTREE6625. Prepared b y: Fiscal Impact Review: Miki Carpenter Talika M. Johnson Director of Recreation and Family Services Director of Finance Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1) 2016-2019 City-Wide Tree Maintenance Contract 2) Letter of Interest from WCA, Inc. Attachment 1 Attachment 2