Item No. 9.
| MEETING DATE: November 2, 2020 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Jeff Henderson, Management Analyst |
| SUBJECT: | APPROVE AMENDMENT NO. 1 TO TREE MAINTENANCE AGREEMENT WITH WEST COAST ARBORISTS, INC. (WCA) |
RECOMMENDATION:
That the City Council:
A. Approve and authorize the City Manager to execute Amendment No. 1 to the City's tree maintenance agreement with West Coast Arborists, Inc.; and
B. Authorize staff to issue a purchase order to West Coast Arborists, Inc. in the amount of $321,882.
A. Approve and authorize the City Manager to execute Amendment No. 1 to the City's tree maintenance agreement with West Coast Arborists, Inc.; and
B. Authorize staff to issue a purchase order to West Coast Arborists, Inc. in the amount of $321,882.
DISCUSSION:
In September 2014 the City entered into an agreement with West Coast Arborists, Inc., (WCA) for tree maintenance services for City owned trees. This agreement had an original five-year term that ended in 2019, as well as five one-year extensions which enables the agreement to be extended by the City through June 30, 2024.
In reviewing the liability insurance coverage provided by WCA, the City’s Risk Management Division staff have recommended that the insurance limits provided by WCA in the City's tree maintenance agreement be increased to more adequately protect the City against potential future liabilities. In January 2020 WCA submitted a request for a price increase of 8.1 percent, which consisted of a 5 percent increase for higher insurance costs and a 3.1 percent increase for a cost of living adjustment (COLA). Due to the economic downturn caused by the COVID-19 pandemic, and after successful negotiation with WCA, Public Works Department staff was able to remove the 3.1 percent COLA request. If the annual contract extension is approved, the 5 percent cost increase would take effect immediately on November 2, 2020.
In reviewing the liability insurance coverage provided by WCA, the City’s Risk Management Division staff have recommended that the insurance limits provided by WCA in the City's tree maintenance agreement be increased to more adequately protect the City against potential future liabilities. In January 2020 WCA submitted a request for a price increase of 8.1 percent, which consisted of a 5 percent increase for higher insurance costs and a 3.1 percent increase for a cost of living adjustment (COLA). Due to the economic downturn caused by the COVID-19 pandemic, and after successful negotiation with WCA, Public Works Department staff was able to remove the 3.1 percent COLA request. If the annual contract extension is approved, the 5 percent cost increase would take effect immediately on November 2, 2020.
FISCAL IMPACT/SOURCE OF FUNDING:
The total amount of funding budgeted by the City in Fiscal Year 2019-2020 for the WCA tree maintenance agreement was $306,554 ($191,273 in the Refuse budget and $115,281 in the Parks budget). If this revised agreement is approved, the new cost for WCA tree maintenance in Fiscal Year 2020-2021 will be $321,882 ($200,837 for the Refuse budget and $121,045 in the Parks budget). This represents an annual increase of $15,328, with $5,764 applicable to the City's General Fund. Funding for these additional costs have already been included in the adopted Fiscal Year 2020-2021 budget, so no additional funding appropriation is necessary at this time.
GENERAL PLAN RELEVANCE:
ED 9.1 Balanced Fiscal Practices.
ED 9.2 Long-Term Infrastructure Viability.
BR 1.8 Tree Preservation.
ED 9.2 Long-Term Infrastructure Viability.
BR 1.8 Tree Preservation.