HomeMy WebLinkAboutAgenda Report - March 4, 2020 C-05AGENDA ITEM C005
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Change Order No. 2 with
West Coast Arborists, Inc. of Stockton for Two -Year Contract Extension for Power
Line Clearing and Vegetation Management ($2,500,000)
MEETING DATE: March 4, 2020
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Change Order
No. 2 with West Coast Arborists, Inc. of Stockton for a two-year contract
extension for power line clearing and vegetation management, in an
amount not to exceed $2,500,000.
BACKGROUND INFORMATION: In July 2017, the City Council awarded a multi-year contract for
power line clearing and vegetation management services in the
amount of $750,000 annually for a three-year term with the option to
renew two additional years.
While the original approval was for a contract with Utility Tree Service, Inc. (UTS), the City and UTS were
unable to reach agreement on final contract terms and conditions; thus, the contract was subsequently
awarded to the next lowest bidder - West Coast Arborists, Inc. (WCA). Because of the delay associated
with the time between when negotiations terminated with UTS and the time a final contract was executed
with WCA, there was a backlog of vegetation management needs that required attention once WCA was
issued a notice to proceed. Therefore, on December 4, 2019, the City Council approved Change Order
No. 1 for $655,087 to add additional WCA crews to address the backlog.
WCA's current three-year contract with the City is set to end June 30, 2020 unless the City chooses to
exercise the contract extension provision. Based on discussions with other utilities currently bidding for
similar services, if the City were to end its current contract, it could face significant cost increases due to
the current demand by utilities for vegetation management services. WCA has agreed to maintain its
pricing, adding only inflationary adjustments for which they did not realize, but were entitled to request,
during their initial three-year term.
WCA has been performing well for the City and Lodi Electric Utility (LEU) continues to receive positive
feedback regarding their completed work. Pursuant to State of California General Order 95, LEU must
routinely patrol, clear and remove vegetation that encroaches into its overhead power lines. In addition,
as part of the recently adopted Wildfire Mitigation Plan required under Senate Bill 901, LEU is committed
to meeting or exceeding the minimum industry standard vegetation management practices as it relates to
clearing vegetation from power lines. LEU is also committed to responding to customer -initiated requests
in a timely manner.
As such, staff recommends authorizing the City Manager to execute Change Order No. 2 to extend
WCA's existing contract for two additional years through June 30, 2022 and increasing the annual not -to -
exceed amount from $750,000/year to $1,250,000/year for a total two-year extension cost of $2,500,000.
APPROVED:
tephen tohwa6auer, City Manager
Adopt Resolution Authorizing City Manager to Execute Change Order No. 2 with West Coast Arborists, Inc. of Stockton for Two -Year Contract Extension for Power
Line Clearing and Vegetation Management ($2,500,000)
March 4, 2020
Page 2
This will ensure sufficient funding to address both existing and possible additional requirements once
LEU's Wildfire Mitigation Plan is submitted to the Governor's newly established Wildfire Safety Advisory
Board by July 2020.
FISCAL IMPACT. Vegetation management costs will not exceed $1,250,000 annually for
Fiscal Year 2020/21 and 2021/22.
FUNDING AVAILABLE: Funds will be budgeted for as part of the annual budget process in account
number 50064500.72499.
0 It 'U64'
Andrew Keys
Deputy City Manager/Internal Services Director
r
Off 196rkheimer
Electric Utility Director
Prepared by: Melissa Price, Rates & Resources Manager
JB/MP/nb
CITY OF LODI
PROPOSED CHANGE ORDER
PROJECT
CO No.: 2
Power Line Clearing I Vegetation Management
CONTRACTOR. PCO No.:
West Coast Arborists, Inc. RF1 No.:
ARCHITECT/ENGINEER: F/ No.:
City of Lodi Submit Proposal Within 15 Days Upon Receipt of This Request
Brief Description Of Work
Power Line Clearing / Vegetation Management Services
Change Order #2: Contract Extension to continue performing power line clearing and vegetation management
services including GPS tree inventory data collection through June 30, 2022 per pricing in attached contractor
proposal dated February 10, 2020 for an annual total not -to -exceed cost as indicated below.
Not -to -exceed amount of $1,250,000 - FY 2020/21 (July 1, 2020 - June 30, 2021)
Nnt-tn-PYCPPH amnunt of R1 250 000 - FY 2021/22 (July 1. 2021 - June 30. 2022)
Request, Proposal, Recommendation And Approval
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Requesting Official: Jeff Berkheimer Request Date: 2/7/2020 Schedule Impact: completion dale Days
helow
Contract❑r Proposal Date: 2/10/2020 Add Amount: $2,500,000 Deduct Amount $0.00
Reason For Change: Contract Extension Account: 50064500.72499
CONTRACTOR AGREES TO FURNISH ALL LABOR AND MATERIALS AND PERFORM ALL WORK REQUIRED 'I'O COMPLE; rE THE, ABOVE DESCRIBED
WORK CHANGE IN ACCORDANCE. WITH THE REQUIREMENTS FOR SIMILAR WORK COVERED BY -['IIE CONTRACT EXCEPT AS OTHERWISE
STIPULATED HEREIN FOR THE STATED CONSIDERATION. TO PERFORM THE CHANGES FOR THE AMOUNT INDICATED WHICH INCLUDES ANY
EXTENDED OR JOBSITF, OVERIIEAD, DISRUPTION, RIPPLE EFFECT AND OTHER IMPACT COSTS. NO WORK WILL BE STARTED UNTIL TIIIS
PROPOSAL IS ACCEP'T'ED. IF THE CONTRACTOR DOES NOT SIGN ACCEPTANCE OF THIS ORDER, THE CONTRACTOR SHOULD REFER TO SECTION 4-
1.03A OF THE STANDARD SPECIFICATIONS REGARDING FILING A WRFITEN PROTEST WITHIN THE SPECIFIED TIME.
Represents 3 years
ORIGINAL CONTRACT: (FY 17/18 -FY 19120) $2,250,000.00
at a not -to -exceed of
$750K/year
PREVIOUS ADDS: Change Order No. 1 $655,087.00
through FY 19/20
Contractor Date
PREVIOUS DEDUCTS: $0.00
THIS CHANGE ORDER: $2,500,000.00
Electric Utility Director Date
TOTAL CONTRACT AMOUNT $5,405,087.00
INCLUDING ALL CHANGE ORDERS:
City Manager Date
ORIGINAL COMPLETION DATE: 6130/2020
ADJUSTED CONTRACT 6/30/2022
COMPLETION DATE:
Approved as to Form:
West Coast Contract Change Order 2 JAN ICI: p. MAGI']ICH 2/12/2020
City Attorney
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Tree Care Professionals Serving Communities no Care About Trees
February 10, 2020
Lodi Electric Utility
ATTN: Melissa C. Price, Rates & Resources Manager
13315. Ham Lane
Lodi, CA 95242
RE: UTILITY LINE CLEARANCE SERVICES AGREEMENT
Dear Ms. Price,
www.WCAINC.com
With this contract year coming to a close on June 30, 2020, West Coast Arborists, Inc. would
like to take this opportunity to express our gratitude to you and your staff for making the
partnership successful. Together we have worked diligently to ensure that the City's urban
forest continues to thrive.
The purpose of this letter is to respond to your request dated February 7, 2020, pertaining to
our current agreement for utility line clearing services. At this time we would like express our
interest in extending our current agreement for an additional 2 -year term with a cost
adjustment. The adjustment for FY20-21 reflects an increase of 7.1% based on the past
Consumer Price Index for 2018 (3.9%) and 2019 (3.2%). This will help to offset the increases in
prevailing wage as established by the Department of Industrial Relations and our other
operating costs.
Subject to City Council approval, the new bid rates will become effective on July 1, 2020 and
will remain valid through June 30, 2021. After June 30, 2021, the rates are subject to change
per the latest Consumer Price Index for the previous 12 months. The proposed rates for FY
2021-22 reflect an approximate CPI adjustment of 3.5% for budgeting purposes. Attached to
this letter, please find our proposed rate schedule.
We appreciate your ongoing efforts to make this Agreement a success for both the City and
WCA and look forward to continuing a successful business relationship. Should you have any
questions, please do not hesitate to contact me at (800) 521-3714.
Sincerely,
Patrick Mahoney
President
CITY OF LODI - ELECTRIC UTILITY
Pricing for Utility Line Clearance Trimming Services performed by WCA, Inc.
Date submitted: February 10, 2020
The current rates originated from the bid dated June 14, 2017. Please note that rates above include equipment.
Per the City's request dated February 7th, 2020, we are submitting our proposed rates. The rates for FY20-21 reflect an increase
of 7.1% based on the Consumer Price Index for 2018 (3.9%), and 2019 (3.2%)
Subject to City Council approval, the new rates will become effective on July 1, 2020 and will remain valid through June 30, 2021.
After June 30, 2021, the rates are subject to change per the latest Consumer Price Index for the previous 12 months.
The proposed rates for FY2021-22 reflect an approximate CPI adjustment of 3.5% for budgeting purposes.
2017-2020
FY 2020-2021
FY2021-2022
Item
Description
Unit
Current Prices
Proposed Prices
Proposed Prices
1
Aerial Crew
Man Hour
$89.00
$95.00
$98.00
2
Foreman/Supervisor
Man Hour
$89.00
$95.00
$98.00
3
ISA Certified Arborist
Man Hour
$89.00
$95.00
$98.00
4
Stump Grinding Crew
Man Hour
$89.00
$95.00
$98.00
5
Emergency Aerial Crew
Man Hour
$129.00
$139.00
$144.00
6
Emergency Foreman/Supervisor
Man Hour
$129.00
$139.00
$144.00
7
Emergency ISA Certified Arborist
Man Hour
$129.00
$139.00
$144.00
8
Emergency Groundman
Man Hour
$129.00
$139.00
$144.00
9
Emergency Stump Grinding Crew
Man Hour
$129.00
$139.00
$144.00
OPTIONAL SERVICES
1
GPS Tree Inventory Data Collection
Tree Site
N/A
$4.00
$4.00
The current rates originated from the bid dated June 14, 2017. Please note that rates above include equipment.
Per the City's request dated February 7th, 2020, we are submitting our proposed rates. The rates for FY20-21 reflect an increase
of 7.1% based on the Consumer Price Index for 2018 (3.9%), and 2019 (3.2%)
Subject to City Council approval, the new rates will become effective on July 1, 2020 and will remain valid through June 30, 2021.
After June 30, 2021, the rates are subject to change per the latest Consumer Price Index for the previous 12 months.
The proposed rates for FY2021-22 reflect an approximate CPI adjustment of 3.5% for budgeting purposes.
RESOLUTION NO. 2020-36
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE CHANGE ORDER NO. 2 WITH
WEST COAST ARBORISTS, INC., OF STOCKTON, FOR TWO-YEAR
CONTRACT EXTENSION FOR POWER LINE CLEARING AND
VEGETATION MANAGEMENT
WHEREAS, in July 2017, the City Council awarded a multi-year contract for power line
clearing and vegetation management services in the amount of $750,000 annually for a three-
year term with the option to renew two additional years; and
WHEREAS, while the original approval was for a contract with Utility Tree Service, Inc.
(UTS), the City and UTS were unable to reach agreement on final contract terms and
conditions; thus, the contract was subsequently awarded to the next lowest bidder - West Coast
Arborists, Inc. (WCA); and
WHEREAS, because of the delay associated with the time between when negotiations
terminated with UTS and the time a final contract was executed with WCA, there was a backlog
of vegetation management needs that required attention once WCA was issued a notice to
proceed; and
WHEREAS, on December 4, 2019, the City Council approved Change Order No. 1 for
$655,087 to add additional WCA crews to address the backlog; and
WHEREAS, WCA's current three-year contract with the City is set to end June 30, 2020
unless the City chooses to exercise the contract extension provision and based on discussions
with other utilities currently bidding for similar services, if the City were to end its current
contract, it could face significant cost increases due to the current demand by utilities for
vegetation management services; and
WHEREAS, WCA has agreed to maintain its pricing, adding only inflationary
adjustments for which they did not realize, but were entitled to request, during their initial three-
year term; and
WHEREAS, WCA has been performing well for the City and Lodi Electric Utility (LEU)
continues to receive positive feedback regarding their completed work; and
WHEREAS, pursuant to State of California General Order 95, LEU must routinely patrol,
clear and remove vegetation that encroaches into its overhead power lines and as part of the
recently -adopted Wildfire Mitigation Plan required under Senate Bill 901, LEU is committed to
meeting or exceeding the minimum industry standard vegetation management practices as it
relates to clearing vegetation from power lines; and
WHEREAS, staff recommends authorizing the City Manager to execute Change Order
No. 2 to extend WCA's existing contract for two additional years through June 30, 2022 and
increasing the annual not -to -exceed amount from $750,000/year to $1,250,000/year for a total
two-year extension cost of $2,500,000.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute Change Order No. 2 with West Coast Arborists, Inc., of
Stockton, California, for a two-year contract extension for power line clearing and vegetation
management, in an amount not to exceed $2,500,000 through June 30, 2022.
Dated: March 4, 2020
I hereby certify that Resolution No. 2020-36 was passed and adopted by the City
Council of the City of Lodi in a regular/special joint meeting held on March 4, 2020 by the
following vote:
AYES: COUNCIL MEMBERS — Chandler, Mounce, Nakanishi, and Mayor Kuehne
NOES- COUNCIL MEMBERS — None
ABSENT. COUNCIL MEMBERS — None
ABSTAIN COUNCIL MEMBERS — None
PAMELA M. FARRIS
Assistant City Clerk
2020-36