The URL can be used to link to this page

Home My WebLink AboutSR - AGR-6294 - TREE SERVICES PUBLIC WORKS COMMUNITY SERVICESAGENDA ITEM December 8, 2015 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Joe DeFrancesco Public Works D' ket or , Marie Kni#htf1(�u Community 5 ices ReviewedNerified 9 . City Manager K 2 9 2 Finance Direct To Be Presented By: Joe DeFrancesco X Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes Public Hrgs Admin Reports Plan/Environ 1. SUBJECT Award of Contracts for Request for Proposal No. 156 -05 to provide Tree Services for Public Works and Community Services Departments. 2. SUMMARY The City received two qualifying proposals to the Request for Proposal (RFP). This proposal is to provide citywide tree maintenance services including street trees, parks and assessment district trees. The selection committee completed their review and has ranked West Coast Arborists, Inc. (WCA) as the top service provider based on a comprehensive rating system. 3. RECOMMENDED ACTION 1. Award an annual contract in an amount of $613,365 per calendar year to WCA for tree services within public street right -of -way (street trees) citywide for a term of five years starting January 1, 2016. Authorize the Mayor and City Clerk to execute the necessary documents on behalf of the City of Orange. 2. Award an annual contract in an amount of $300,000 per calendar year to WCA for tree services within parks, City facilities, medians, rights -of -way (parkway trees) and assessment districts for a term of five years starting January 1, 2016. Authorize the Mayor and City Clerk to execute the necessary documents on behalf of the City of Orange. 3. Authorize the appropriation of $207,600 from the Sanitation (220) Unreserved Fund Balance to expenditure account number 220.5022.51700.00000, Sanitation — Contractual Services. 4. Authorize the appropriation of $39,000 from the Water (600) Unreserved Fund Balance to expenditure account number 600.8041.51431.00000, Water — Landscape Maintenance. 5. Authorize the appropriation of $63,400 from the General Fund Unreserved Fund Balance to expenditure accounts: ITEM 1 12/8/15 100.7022.51420.00000 Maintenance Contracts $56,000 100.7012.51431.00000 Landscape Maintenance 2,000 100.7022.51431.00000 Landscape Maintenance 5,400 $63,400 4. FISCAL IMPACT With the approval of the appropriation, funds will be available in the following accounts for the remaining 6 months of FY 16: 220.5022.51700.00000 Sanitation - Contractual Services $ 207,600 100.7022.51420.00000 Landscape Maintenance $ 56,000 100.7012.51420.00000 Maintenance Contracts $ 2,000 100.7022.51431.00000 Landscape Maintenance $ 5,400 600.8041.51431.00000 Water - Landscape Maintenance $ 39,000 291.7026.51700.00000 Santiago Hills LMAD $ 40,000 $ 350,000 The remaining funding will be available through our annual budget process for FY 17. 1 5. STRATEGIC PLAN GOAL(S) lb. Provide for a safe community - Provide and maintain infrastructure necessary to ensure public safety. 2a. Be a fiscally healthy community - Expend fiscal resources responsibly. 4b) Provide outstanding public service - Provide facilities and services to meet customer expectations. 3a) Refurbish, maintain, develop, and /or expand public use places and spaces. 6. GENERAL PLAN IMPLEMENTATION Natural Resources Goal 5.0 Provide recreational facilities and programs that adequately serve the needs of the residents. Policy 5.1: Maintain existing City parks at levels that provide maximum recreational benefit. 7. DISCUSSION and BACKGROUND The City's urban forest is managed by two departments. Public Works oversees the maintenance of street trees in the public rights -of -way and Community Services oversees the maintenance of trees in the parks, medians, City facilities, and assessment districts. As such, there are two separate agreements executed so each Department can manage the work needed independently. The current agreements for tree services through both departments cover the annual trimming schedules that are performed on a grid basis, as well as special requests for trimming, emergency services and ITEM 2 12/8/15 replacements. These agreements have been in place since 1993 with a renewal in 2005 at the 1993 pricing. The Public Works agreement will expire at the end of 2015. The Community Services agreement expired on June 30, 2015 and only emergency tree services have been performed in their service area for the remaining six months of the year in order to be able to bid the City's tree services at one time. On September 1, 2015, the City issued RFP 156 -05 for tree maintenance services citywide including street trees, parks, City facilities, medians and assessment districts. On September 24, 2015, the City received two proposals. A rating panel consisting of members from the City's Public Works Department and Community Services Department reviewed the proposals received. The following selection criteria were listed in the RFP and utilized by the panel to evaluate the proposals: • Price (40 points) — based upon the total Annual Price, plus optional items (special and emergency requests) for the City of Orange. • Timely Performance (20 points) — response time to client issues, phone calls, and emergency requests. Total number of crews /employees /equipment available to conduct work as outlined in the specifications. • Experience (20 points) — number of years providing similar services to municipalities of similar size to Orange. Qualifications and training of employees. • References (20 points) — response provided by proposer's references regarding quality of work and timeliness of work performed. Response from proposer's references regarding their company's methodology to correct deficiencies and prevent re- occurrences. In accordance with the above listed selection criteria, the companies are ranked as follows: 1) West Coast Arborists, Inc. (Public Works 284 pts., Community Services 275 pts.) 2) Great Scott Tree Services, Inc. (Public Works 253 pts., Community Services 218 pts.) The committee unanimously rated WCA as their top scoring firm. WCA has been providing excellent tree services to the City of Orange since 1993 and WCA has always been very responsive to the City's routine service needs as well as special requests and emergency needs. Reference checks were also conducted with three other cities where WCA is the contract service provider. The panel received very positive comments that included high marks for providing adequate staff and equipment resources in response to various tree service requests. WCA was the proposer with the lowest annual base cost. That said, through this agreement there is an increase of $9 per tree for annual trimming ($39 previously compared to $48 for the proposed agreement) and significant increases in hourly rates for special and emergency services. Per a recent change by the State of California, tree trimming workers are now covered by the prevailing wage requirements and as such, the new rate received under this RFP is considerably higher. Prior to the prevailing wage requirements, the basic labor rate was about $9 per hour while the new hourly rate is about $27 per hour. As such, the below noted budget is required. Public Works Agreement The current tree services agreement for Public Works is $415,000. This budget was based on 2005 rates under the current WCA agreement that terminates December 31, 2015. The new annual ITEM 3 12/8/15 agreement amount for Public Works is $613,365, which includes $413,365 for base work and $200,000 for emergency service requests, change order, and contingency work. Due to the very favorable rate under our existing contract, Public Works staff has been able to accelerate the routine tree trimming and reduce the dead and unhealthy tree removal backlog. As a result of the significant cost increase associated with the proposed agreement the current budget will need to be adjusted to maintain the service level. As part of the Sanitation Rate Study, staff will make recommendations on a rate structure that supports the necessary tree trimming service. In order to cover the increased cost of services in the new agreement for the remaining 6 months of this fiscal year, Public Works staff recommends an appropriation of $200,000 from unreserved fund balance. The remaining funding will be available through our annual budget process for FY 17. Community Services Agreement The current annual agreement for tree trimming services for Community Services is $166,000, which included $151,000 for base work and $15,000 for emergency work. The new annual cost for Community Services is $300,000, which includes $238,940 for base cost and $61,060 for emergency service request and contingency work. With only emergency services performed for the last six months of 2015, a year's worth of grid trimming will need to be performed in the last six months of this fiscal year. In order to cover the increased cost of services in the new agreement for the remaining 6 months of this fiscal year and perform the deferred tree maintenance services of the past six months, Community Services recommends the appropriation of $110,000 from unreserved fund balance. The remaining amount of $40,000 was already appropriated in Fund 291 for FY 16 as a result of increased revenue from the new assessment district created by property owner vote in the Santiago Hills neighborhood. The initial term of both agreements is five years commencing January 1, 2016 with the option to extend the agreement an additional two years at the City's sole discretion. The initial five -year term will be performed at the proposed unit pricing and is contingent upon the City Council appropriating the necessary funding each fiscal year as part of the annual budget adoption. Any subsequent City approved extensions are subject to an increase based upon CPI with a maximum increase of 2 %. 8. ATTACHMENTS • RFP No. 156 -05 abstracts • Draft agreements ITEM 4 12/8/15