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HomeMy WebLinkAboutE-13 Staff Report - BPO Amendment WCA CONSENT ITEM E-13 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: AUGUST 19, 2019 SUBJECT: AMEND BLANKET PURCHASE ORDERS FOR WEST COAST ARBORIST, INC. BACKGROUND: Pursuant to a competitive solicitation, on June 6, 2016 the City Council authorized the issuance of a three-year contract to West Coast Arborists, Inc. for the Parks and Electric division’s tree maintenance. On May 6, 2019, the City Council approved a two-year extension of the contract with West Coast Arborists, Inc. Azusa Light & Water (ALW) utilizes West Coast Arborists, Inc. for line clearing, vegetation management, fire clearance, and tree maintenance services of the electric overhead lines. Over the last few years, ALW has budgeted for the increase in line clearing and fire hazard clearance due to the risk of wild fires in the Foothill areas and to get ahead of additional vegetation growth due to higher rainfall recently in Southern California. As a result, West Coast Arborists, Inc. (WCA) has performed line clearing on almost 5,000 trees. The proposed action will allow ALW to procure the appropriate services to ensure electric line safety and the reduction of fire hazards. RECOMMENDATIONS: Staff recommends the City Council take the following actions: 1)Amend the existing L&W FY 18-19 blanket purchase order for West Coast Arborists, Inc. from $288,000 to $373,000. 2)Authorize an increase of the annual West Coast Arborist purchase order annual authorization from $677,992 per year to $815,300 per year. ANALYSIS: In FY 2018-2019, a blanket purchase order (BPO) amount for West Coast Arborists, Inc. was approved for $288,000 to trim 4,000 trees for the Electric division annual line clearing. Due to a higher than average rain season and the growth of younger trees into the power line area, WCA performed additional work to remove tree stumps, remove dead trees, and prune new growth. The unanticipated APPROVED CITY COUNCIL 8/19/2019 Amend BPO for WCA August 19, 2019 Page 2 work consisting of 986 additional trees trimmed and trees removed to clear electrical lines of possible fire hazards amounted to $83,515.50. As a result, Staff recommends: 1) increasing ALW’s blanket purchase order by an additional $85,000 for work performed during the 2018-2019 fiscal year, and 2) increasing the FY19-20 and FY 20-21 contract purchase order annual authorization amount to $815,300 to account for the increased tree maintenance and fire hazard clearance work to be performed. FISCAL IMPACT: The FY 19/20 Approved Budget included a total of $765,313 ($292,213 in 10-25-420-000-6493, $59,000 in 12-25-420-000-6493, $30,000 in 24-40-739-082-6625, $330,000 in 33-40-735-930-6493, and $54,100 in 37-25-420-000-6493) for WCA. Upon Council approval and when funding is required for the additional $49,987, Staff will prepare a budget transfer using budget savings from the Electric Funds. Prepared by: Reviewed and Approved: Danny Smith Manny Robledo Senior Management Analyst Director of Utilities Reviewed and Approved: Reviewed and Approved: Hien Vuong Sergio Gonzalez Assistant Director of Utilities - Electric Operations City Manager Fiscal Impact Review: Talika M. Johnson Director of Finance