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APPROVE CONTRACT CHANGE ORDER NO. 1 WITH WEST COAST ARBORISTS INC. FOR EMERGENCY TREE SERVICES (PROJECT NO. O&M 16-014)
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RECOMMENDATION
It is recommended that the City Council approve a motion to approve findings pursuant to Stockton Municipal Code (SMC) section 3.68.070 in support of an exception to the competitive bidding process, and authorize the City Manager to execute Contract Change Order (CCO) No. 1 to add $150,000 in fiscal year 2016-17 to the contract with West Coast Arborists, Inc. for emergency tree service requests (Project No. O&M 16-014).
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the motion.
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Summary
Staff recommends approval of findings to support an exception to the competitive bidding process to issue CCO No. 1 for $150,000, revising the original contract with West Coast Arborists, Inc. to $220,000 for fiscal year 2016-17 (Attachment B). The City contracts for emergency on-call tree services for extreme weather events, such as storms and high winds, and for high priority service requests during peak demand hours.
Recently, the City has spent between $50,000 and $70,000 per year for on-call emergency tree services. More recently, staff resources for tree services reduced from five employees to three due to a retirement and long term medical leave. Concurrently, there was a significant increase in emergency call volume due to wind storms and an inventory of aging trees. Emergency calls to the contractor more than tripled due to these conditions. The combination of these factors increased demand for after-hours services, with insufficient staff available to respond. Accordingly, the estimated value of contracted emergency tree work for fiscal year 2016-17 increased. The current estimate is based on a continuation of existing conditions, and therefore could be affected positively or negatively by weather conditions.
The original contract was entered into under the Council delegated authority. To procure services, staff requested quotes from eight contractors in the local region and entered into an on-call hourly rate contract with an initial annual value not to exceed $70,000 with West Coast Arborists, Inc., of Stockton, CA (Attachment A). The contract guaranteed fixed hourly rates for a three-year period.
DISCUSSION
Background
Public Works provides emergency tree services during normal and after business hours throughout the year. Emergency tree services include, but are not limited to, removal of downed trees and limbs on homes or vehicles, and trees blocking streets. During extreme weather events the City’s tree crew relies on a tree contractor to supplement staff response to emergency call-outs. In addition, during the larger storm events, call-outs continue for an extended period, and the City’s tree crew does not have the capacity to respond to all events safely. The City’s tree contractor provides emergency tree services for such extreme weather events, such as storms and/or high winds, as well as high priority service requests during peak demand hours.
In February 2016, the City obtained bids to provide on-call emergency tree services on a unit price basis. Staff reviewed past contracts, bids, and State Department of Industrial Relations records to identify local contractors that had the required licenses and certifications to provide these services to the City. The request was sent to the eight contractors. One bid was received, from West Coast Arborists, Inc., as follows:
|
Item No. |
Quantity |
Unit of Measure |
Project Description |
West Coast Arborists, Inc. |
|
1 |
1 |
Hour |
Standard Crew |
$380 |
|
2 |
1 |
Hour |
Crane with Operator |
$150 |
|
|
|
|
TOTAL |
$530 |
On May 20, 2016, Contract No. 2016-05-20-8001 was entered into with West Coast Arborists, Inc. to provide emergency on-call tree services (O&M 16-014) at the unit prices noted above with an initial annual amount not to exceed $70,000 (Attachment A). This amount was based on experience from previous years, which has fluctuated between $50,000 and $70,000. While annual expenditures were anticipated to vary from year to year based on need, the contract guaranteed unit prices for a three-year period that expires on June 30, 2019.
Present Situation
The staff resources for tree services reduced from five employees to three due to a retirement and long term medical leave. Concurrently, there has been a significant increase in emergency call volume due to wind storms and an inventory of aging trees. The combination of these two factors resulted in an increased demand for after-hours services, with insufficient staff available to respond. Emergency calls to the contractor more than tripled due to these conditions. The estimated cost of emergency tree work for fiscal year 2016-17 increased to $220,000. The current estimate is based on a continuation of existing conditions, and therefore could be affected positively or negatively by weather conditions.
Staff is requesting approval of CCO No. 1 for an additional $150,000, increasing the annual contract amount to $220,000 to reflect the revised estimate of annual expenditures. The contract hourly rates will continue to apply.
Findings
Pursuant to SMC section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. Emergency tree service call-outs are unpredictable and are largely dependent on weather conditions.
2. Emergency tree service call-outs require immediate attention and may occur at any time.
3. The City does not have sufficient staffing to respond to all emergency call-outs.
4. Contracted emergency tree services allow the City to supplement staffing resources to provide a timely response to situations that threaten the public safety and property.
5. The unit hourly rates for CCO No. 1 were established pursuant to a bid process involving eight local vendors.
6. West Coast Arborists, Inc. provided excellent service in the current and previous contracts with the City so it is in the public interest to utilize this business for such services
FINANCIAL SUMMARY
These expenses are budgeted in the FY 2016-17 Public Works’ operating budget. There are sufficient funds available in the Park Maintenance and Street Trees budget for the additional $150,000 for CCO No. 1 with West Coast Arborists, Inc.
Costs will be divided between the two accounts as follows:
|
Park Maintenance, General Fund Maintenance and Repair Services |
010-3070-590.20-25 |
$100,000 |
|
Gas Tax, Street Trees Maintenance and Repair Services |
030-3071-590.20-25 |
$ 50,000 |
|
Total |
|
$150,000 |
Attachment A - Contract with West Coast Arborists, Inc.
Attachment B - Contract Change Order No. 1