HomeMy WebLinkAboutAgenda Report - May 19, 2021 C-05AGENDA ITEM (!,=5
CITY OF LODI
COUNCIL COMM LAICATION
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AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Change Orders No. 3 and
No. 4 with West Coast Arborists, Inc. of Stockton for Power Line Clearing and
Vegetation Management Services through June 30, 2027 ($8,850,000)
MEETING DATE: May 19, 2021
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute Change
Orders No. 3 and No. 4 with West Coast Arborists, Inc. of Stockton for
Power Line Clearing and Vegetation Management Services through
June 30, 2027 for a total not -to -exceed amount of $8,850,000.
BACKGROUND INFORMATION: In July 2017, the City Council awarded a multi-year contract with
West Coast Arborists, Inc. (WCA) 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.
In 2019, City Council approved Change Order No. 1 in the amount of $655,087 for additional crews to
address a backlog of vegetation management activities that resulted from a delay associated with failed
contract negotiations with a previous contractor. In 2020, the City Council approved Change Order No. 2
for a two-year extension option through June 30, 2022 based on current market conditions in the amount
of $1.25 million annually.
Lodi Electric Utility (LEU) is now proposing to execute two change orders with WCA as follows:
Change Order No. 3
This proposed change order will add $100,000 to the existing contract for Fiscal Year 2021/22 in order to
fund the removal of two large groups of trees growing near electric utility lines in the public right of way
and which recently caused a large outage to approximately 10,000 LEU customers during the severe
wind storm last January. This work was not anticipated as part of LEU's regular tree trimming and line
clearing efforts and is thus an added cost to the existing contract. '
Change Order No. 4
WCA's current contract with the City, including extensions, is set to end June 30, 2022. WCA has agreed
to offer a five-year contract extension which includes a 10 percent savings relative to a recently awarded
and competitively bid project from a neighboring public power agency, as well as holds labor rates stable
for the final two years of the proposed contract extension. This will allow the City to lock in price certainty
and continuity of service through June 2027 at rates which will be among the lowest in the industry. LEU
is proposing a total five-year not -to -exceed amount of $8,750,000 for this proposed change order, or
approximately $1.75 million annually. While annual expenditures will depend on actual vegetation
management activities completed and some years may require more work than others, this proposed
change order will not exceed $8,750,000 over the five-year term July 1, 2022 through June 30, 2027.
APPROVED:
Stephen Sch au , City Manager
Adopt Resolution Authorizing City Manager to Execute Change Orders No. 3 and No. 4 with West Coast Arbodsts, Inc. of Stockton for Power Line Clearing and
Vegetation Management Servbw through June 30, 2027 ($8,050,000)
May 19, 2021
Page 2
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 and subsequent annual review and updated
requirements under existing legislative and regulatory requirements, 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.
FISCAL IMPACT: $100,000 for Change Order No. 3 and $8,750,000 for Change Order No. 4.
FUNDING AVAILABLE: Funds will be budgeted for as part of the annual budget process in account
number 50064500.72499.
Andrew Keys
Andrew Keys
Deputy City Manager/Internal Services Director
Jeff Berkheimer
Electric Utility Director
Signature: JWWAIT X2jj'"
Email: akeys@lodi.gov
CITY OF LODI
PROPOSED CHANGE ORDER
PROJECT
CO No.: 3
Power Line Clearing / Vegetation Management
CONTRACTOR: PCO No.:
West Coast Arborists, Inc. RFI No.:
ARCHITECT/ENGINEER: FI 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 #3: Funds for additional unanticipated power line clearing activities per Contractor proposal dated
April 20, 2021.
Not -to -exceed amount of $100,000 - FY 2021/22 (July 1, 2021 - June 30, 2022)
Request, Proposal, Recommendation And Approval
Requesting Official: Jeff Berkheimer Request Date: N/A Schedule Impact: 0 Days
Contractor Proposal Date: 4/20/2021 Add Amount: $100,000 Deduct Amount $0.00
Reason For Change: Additional work requested by City Account: 50064500.72499
CONTRACTOR AGREES TO FURNISH ALL LABOR AND MATERIALS AND PERFORM ALL WORK REQUIRED TO COMPLETE THE ABOVE DESCRIBED
WORK CHANGE IN ACCORDANCE WITH THE REQUIREMENTS FOR SIMILAR WORK COVERED BY THE CONTRACT EXCEPT AS OTHERWISE
STIPULATED HEREIN FOR THE STATED CONSIDERATION. TO PERFORM THE CHANGES FOR THE AMOUNT INDICATED WHICH INCLUDES ANY
EXTENDED OR JOBSITE OVERHEAD, DISRUPTION, RIPPLE EFFECT AND OTHER IMPACT COSTS. NO WORK WILL BE STARTED UNTIL THIS
PROPOSAL IS ACCEPTED. 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 WRITTEN PROTEST WITHIN THE SPECIFIED TIME.
Represents 3 years
ORIGINAL CONTRACT: (FY 17/18 -FY 19/20) $2 250,000.00
at a not -to -exceed of
$750K/year
PREVIOUS ADDS: Change Orders No. 1 $3,155,087.00
and No. 2
Contractor Date
PREVIOUS DEDUCTS: $0.00
THIS CHANGE ORDER: $100,000.00
Electric Utility Director Date
TOTAL CONTRACT AMOUNT
$5,505,087.00
INCLUDING ALL CHANGE ORDERS:
City Manager Date
ORIGINAL COMPLETION DATE: 6/30/2020
ADJUSTED CONTRACT No Change 6/30/2022
COMPLETION DATE:
5-19-21 West Coast Contract Change Order 3 4/20/2021
WEST COAST ARBORISTS, INC.
vsochl�e 3625 E. Stevenson Avenue Stockton, CA 95205
209.547.0297 Phone 209.547.0385 Fax WCAINC.COM
PROPOSAL FDR TREE MAINTENANCE SERVICES
CUSTOMER INFORMATION
Main Contact
Billing Contact
TIM COMBS
TIM COMBS
CITY OF LODI - ELECTRIC UTILITY
CITY OF LODI - ELECTRIC UTILITY
1331 SOUTH HAM LANE
1331 SOUTH HAM LANE
LODI, CA 95242
LODI, CA 95242
209.333.6800 tcombsilodi.gov
209.333.6800 tcombs9lodi.gov
Yes
JOB LOCATION
I. East side of Lower Sacramento Rd. North of Lodi Ave.
2.1211 W. Elm St.
3.845 S. Ham Ln.
SCOPE OF WORK
1.30 Pine tree and stump removals.
2. Large Deodar Cedar removal.
3. Large Oak removal.
700.00 Aerial Crew Man Hour $95.00 0,500.00
352.DO Foreman/Supervisor Man Hour $95.00 $33,440.00
COMMENTS
These are all large jobs that will require special equipment. Crane, roll off, loader etc. This work is not to exceed $100,000.00
CA Contractors License 366764 Federal Tax ID: 95-3250682 CA DIR Registration 1000000956
ESTIMATED BY
ACCEPTED BY
AR—EA MANfFC,ER
TITLE
TITLE
0-4/20/21
DATE
DATE
Printed on: 4120120211:13:21 PM Page 1 of 1
CITY OF LODI
PROPOSED CHANGE ORDER
PROJECT
CO No.: 4
Power Line Clearing / Vegetation Management
CONTRACTOR: PCO No.:
West Coast Arborists, Inc. RFI No.:
ARCHITECT/ENGINEER: FI 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 #4: Contract Extension to continue performing power line clearing and vegetation management
services through June 30, 2027 per pricing in attached contractor proposal dated February 11, 2021 for an
additional total not -to -exceed cost of $8,750,000.
Request, Proposal, Recommendation And Approval
Requesting Official: Jeff Berkheimer Request Date: N/A Schedule Impact: see Below Days
Contractor Proposal Date: 2/11/2021 Add Amount: $8,750,000 Deduct Amount $0.00
Reason For Change: Contract extension mutually agreed upon by City and Contractor Account: 50064500.72499
CONTRACTOR AGREES TO FURNISH ALL LABOR AND MATERIALS AND PERFORM ALL WORK REQUIRED TO COMPLETE THE ABOVE DESCRIBED
WORK CHANGE IN ACCORDANCE WITH THE REQUIREMENTS FOR SIMILAR WORK COVERED BY THE CONTRACT EXCEPT AS OTHERWISE
STIPULATED HEREIN FOR THE STATED CONSIDERATION. TO PERFORM THE CHANGES FOR THE AMOUNT INDICATED WHICH INCLUDES ANY
EXTENDED OR JOBSITE OVERHEAD, DISRUPTION, RIPPLE EFFECT AND OTHER IMPACT COSTS. NO WORK WILL BE STARTED UNTIL THIS
PROPOSAL IS ACCEPTED. 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 WRITTEN PROTEST WITHIN THE SPECIFIED TIME.
Represents 3 years
ORIGINAL CONTRACT: (FY 17/18 -FY 19/20) $2 250,000.00
at a not -to -exceed of
$750K/year
PREVIOUS ADDS: Change Orders No. 1, $3,255,087.00
No. 2 and No. 3
Contractor Date
PREVIOUS DEDUCTS: $0.00
THIS CHANGE ORDER: $8,750,000.00
Electric Utility Director Date
TOTAL CONTRACT AMOUNT
$14,255,087.00
INCLUDING ALL CHANGE ORDERS:
City Manager Date
ORIGINAL COMPLETION DATE: 6/30/2022
ADJUSTED CONTRACT 6/30/2027
COMPLETION DATE:
5-19-21 West Coast Contract Change Order 4 4/20/2021
Tree Care Professionals Serving Communities Who Care About Trees
February 11, 2021
Lodi Electric Utility
ATTN: Jeff Berkheimer, Director
1331 S. Ham Lane
Lodi, CA 95242
RE: UTILITY LINE CLEARANCE SERVICES AGREEMENT
Dear Mr. Berkheimer,
www.WCAINC.com
I hope 2021 is off to a good start for you and your team. As you know, our current contract is set to
expire on June 30, 2022. 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 begin early discussions on a possible 5 -year extension to our current
agreement for utility line clearing services. The additional 5 -year term would begin on July 1, 2022 and
extend through June 30, 2027. Attached to this letter please find our proposed rates for the entire term.
Please note that these proposed rates for years 1, 2 and 3 of the proposed 5 -year extension reflect an
approximate 10.0% discount (10.4% in FY22-23, 10.1% in FY23-24 and 10.5% in FY24-25) off our current
contract rates with Roseville Electric.
• The proposed rates for FY22-23 reflect an average increase of 14.2% (23.5% & 4.9% respectively)
from FY21-22
• The proposed rates for FY23-24 reflect a 4.25% increase from FY22-23
• The proposed rates for FY24-25 reflect a 3.25% increase from FY24-25
These pre -determined increases will help to offset the increases in prevailing wage as established by the
Department of Industrial Relations and our other operating costs.
In the spirit of mutual benefit, WCA agrees to hold the rates the same for FY25-26 and FY26-27.
Upon your review, we would be glad to meet to discuss this proposal in further detail. 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
Cc: Tim Combs, Electric Utility Superintendent
Melissa C. Price, Rates & Resources Manager
CITY OF LODI - ELECTRIC UTILITY
Proposed
5 -Year Extension
Pricing for Utility Line Clearance Trimming Services performed
by WCA, Inc.
Date
submitted: February 11, 2021
FY23-24
FY24-25
FY25-26
FY26-27
Unit Prices
Unit Prices
Current 2- Year
Unit Prices
Unit Prices
Extension
Unit Prices
$121.00
2017-2020
FY20-21
FY21-22
Item
Description
Unit
Bid Prices
Unit Prices
Unit 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
$162.00
OPTIONAL SERVICES
$162.00
$162.00
1
GPS Tree Inventory Data Collection
Tree Site
N/A
$4.00
$4.00
$4.00 $4.00 $4.00 $4.00 $4.00
The rates for years 1, 2 and 3 of the proposed 5 -year extension reflect an approx. 10.0% discount (10.4% in FY22-23, 10.1% in FY23-24 and 10.5% in FY24-25)
off our current contract rates with Roseville Electric.
Rates for FY22-23 reflect an average increase of 14.2% (23.5% & 4.9% respectively) from FY21-22
Rates for FY23-24 reflect a 4.25% increase from FY22-23
Rates for FY24-25 reflect a 3.25% increase from FY24-25
WCA agrees to hold the rates the same for FY25-26 and 26-27.
Proposed
5 -Year Extension
FY22-23
FY23-24
FY24-25
FY25-26
FY26-27
Unit Prices
Unit Prices
Unit Prices
Unit Prices
Unit Prices
$121.00
$126.00
$130.00
$130.00
$130.00
$121.00
$126.00
$130.00
$130.00
$130.00
$121.00
$126.00
$130.00
$130.00
$130.00
$121.00
$126.00
$130.00
$130.00
$130.00
$151.00
$157.00
$162.00
$162.00
$162.00
$151.00
$157.00
$162.00
$162.00
$162.00
$151.00
$157.00
$162.00
$162.00
$162.00
$151.00
$157.00
$162.00
$162.00
$162.00
$151.00
$157.00
$162.00
$162.00
$162.00
$4.00 $4.00 $4.00 $4.00 $4.00
The rates for years 1, 2 and 3 of the proposed 5 -year extension reflect an approx. 10.0% discount (10.4% in FY22-23, 10.1% in FY23-24 and 10.5% in FY24-25)
off our current contract rates with Roseville Electric.
Rates for FY22-23 reflect an average increase of 14.2% (23.5% & 4.9% respectively) from FY21-22
Rates for FY23-24 reflect a 4.25% increase from FY22-23
Rates for FY24-25 reflect a 3.25% increase from FY24-25
WCA agrees to hold the rates the same for FY25-26 and 26-27.
RESOLUTION NO. 2021-133
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE CHANGE ORDERS NO. 3 AND NO. 4
TO CONTRACT WITH WEST COAST ARBORISTS, INC., OF
STOCKTON, FOR POWER LINE CLEARING AND VEGETATION
MANAGEMENT SERVICES THROUGH JUNE 30, 2027
WHEREAS, in July 2017, the City Council awarded a multi-year contract to West Coast
Arborists, Inc. (WCA) 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 for two additional
years; and
WHEREAS, in 2019, City Council approved Change Order No. 1 in the amount of
$655,087 for additional crews to address a backlog of vegetation management activities that
resulted from a delay associated with failed contract negotiations with a previous contractor; and
WHEREAS, in 2020, the City Council approved Change Order No. 2 for a two-year
extension option through June 30, 2022, based on current market conditions in the amount of
$1.25 million annually; and
WHEREAS, Lodi Electric Utility (LEU) is now proposing to execute Change Orders No. 3
and No. 4; and
WHEREAS, Change Order No. 3 will add $100,000 to the existing contract for Fiscal
Year 2021/22 in order to fund the removal of two large groups of trees growing near electric
utility lines in the public right of way and which recently caused a large outage to approximately
10,000 LEU customers during the severe wind storm last January; and
WHEREAS, Change Order No. 4 will extend WCA's existing contract to June 30, 2027
and add an additional not -to -exceed amount of $8,750,000 over five years (July 1, 2022 through
June 30, 2027); and
WHEREAS, WCA has been performing well for the City and LEU continues to receive
positive feedback regarding their completed work; and
WHEREAS, the proposed extension includes a 10 percent savings relative to a
recently -awarded and competitively -bid project from a neighboring public power agency, as well
as holds labor rates stable for the final two years of the proposed contract extension; 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 and subsequent annual review and updated
requirements under existing legislative and regulatory requirements, LEU is committed to
meeting or exceeding the minimum industry standard vegetation management practices as it
relates to clearing vegetation from power lines.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute Change Orders No. 3 and No. 4 with West Coast
Arborists, Inc., of Stockton, California, for power line clearing and vegetation management
services through June 30, 2027 for a total not -to -exceed amount of $8,850,000; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to
make minor revisions to the above -referenced document(s) that do not alter the compensation
or term, and to make clerical corrections as necessary.
Dated: May 19, 2021
I hereby certify that Resolution No. 2021-133 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held May 19, 2021 by the following votes:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
/JENNIF�,;,,kR'CUSMIR
l
2021-133