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HomeMy WebLinkAbout08 - Tree Maintenance ServicesCITY OF NEWPORT E qc,FCity Council Staff Report February 28, 2017 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mike Pisani, Municipal Operations Director - 949-644-3055, mpisani@newportbeachca.gov PREPARED BY: Shelby Morgan, Management Assistant, smorgan@newportbeachca.gov PHONE: 949-644-3013 TITLE: Approve Amendment No. 2 with Great Scott Tree Service, Inc. for Tree Maintenance Services ABSTRACT: Due to an increase in the volume of services performed by Great Scott Tree Service, Inc. ("GSTS"), the Municipal Operations Department is requesting an amendment to increase the annual "not to exceed" amount allowed for tree maintenance services. RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. 2 to the Maintenance Services Agreement with Great Scott Tree Service, Inc. to increase the total amount not to exceed to $1,700,000 per contract year, and authorize the Mayor and City Clerk to sign the agreement. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for the level of services currently required. It will be expensed to the appropriate accounts in the Municipal Operations Department, to accounts from other departments, or to Capital Improvement Accounts managed by the Public Works Department. 8-1 Approve Amendment No. Two with Great Scott Tree Service, Inc. for Tree Maintenance Services February 28, 2017 Page 2 DISCUSSION: The City entered into an agreement with Great Scott Tree Service, Inc. ("GSTS") in November 2013. Under the terms of the agreement, GSTS performs a full array of tree maintenance services for the City, including the pruning, removal, and planting of more than 34,000 trees located on parkways and medians, in parks, and at City facilities. The agreement contains a "not to exceed" (NTE) amount of $1,300,000 per contract year, and the initial term of the agreement expires on November 30, 2023. The $1,300,000 NTE amount is sufficient to fund the regular pruning cycle, and a normal level of tree removals and planting for the urban forest as it stood in 2013. Since that time, however, the urban forest has continued to grow through the opening of new facilities (Marina Park) and other capital improvement projects that have had a significant landscape element (Newport and Balboa Boulevard medians) and added hundreds of trees. There is also additional work required on periodic or emergency basis that, if funded under the current NTE limit, would utilize funding authority for routine tree pruning. Examples of periodic work include skinning of palm trees to reduce the dropping of leaf bases. While we trim palm trees on an annual basis to reduce frond drop onto streets, sidewalks and private property, palms need to be skinned on a five- to ten-year cycle to avoid the drop of other debris. There are also properties maintained on an "as needed" basis that do not require regular tree trimming, but occasionally GSTS is required to perform work there. Also, in the past 45 days, we have expended nearly $150,000 during the January 20 and February 17 storms response where we lost approximately 160 city trees. These large wind events require weeks of follow up work to remove stumps. Eventually new trees will need to be planted, at a cost of $150,000 or more. This additional, unforeseen work also reduces the funding authority available for tree pruning. Consequently, staff is not requesting any extra budgetary funding at this time, but only an increase in the NTE limit of the GSTS agreement to $1,700,000 per contract year. No other changes in contract terms are being requested at this time; the unit prices remain the same as in the original agreement, except for annual CPI adjustments. Increasing the NTE limit will allow GSTS to provide necessary periodic and emergency tree services for City residents. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Approve Amendment No. Two with Great Scott Tree Service, Inc. for Tree Maintenance Services February 28, 2017 Page 3 NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Amendment No. 2 with Great Scott Tree Service, Inc. ATTACHMENT A AMENDMENT NO. TWO TO MAINTENANCE SERVICES AGREEMENT WITH GREAT SCOTT TREE SERVICE, INC. FOR TREE MAINTENANCE SERVICES THIS AMENDMENT NO. TWO TO MAINTENANCE SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 28th day of February, 2017 Services ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City'), and GREAT SCOTT TREE SERVICE, a California corporation ("Contractor"), whose address is 10761 Court Avenue, Stanton, California 90680, and is made with reference to the following: RECITALS A. On November 13, 2013, City and Contractor entered into a Maintenance Services Agreement ("Agreement") for tree maintenance services for City -maintained trees ("Project"). B. On November 13, 2014, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") to reflect Extra Work performed under the Agreement, and to increase the total compensation. C. Since entering into the Agreement, the volume of work needed by the City covered by the Agreement is higher than originally anticipated. Such work includes providing tree maintenance services for City -maintained trees. D. City desires to enter into this Amendment No. Two to increase the total compensation for the Agreement to account for the increased volume of work not anticipated at the time of executing the Agreement, update the project manager information, update the notices section and clarify prevailing wage language. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. COMPENSATION TO CONSULTANT Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items and subcontractor fees, shall not exceed One Million Seven Hundred Thousand Dollars and 00/100 ($1,700,000.00), per contract year, subject to the annual Consumer Price Index increase detailed in Section 4.2 below, without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. Two, including all reimbursable items and subcontractor fees, in an amount not to exceed Two Million Eight Hundred Thousand Dollars and 00/100 ($2,800,000.00). 2. PROJECT MANAGER Section 5.1 of the Agreement is amended in its entirety and replaced with the following: "Contractor shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Contractor has designated Scott Griffiths to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel." 3. NOTICES Section 23.3 of the Agreement shall be amended in its entirety and replaced with the following: "All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Scott Griffiths Great Scott Tree Service, Inc. 10761 Court Ave. Stanton, CA 90680 4. LABOR AND PREVAILING WAGE The title of Section 26 shall be amended and read as follows: "Labor and Prevailing Wage." Section 26.5 shall be added to the agreement to read: "This agreement shall be paid in accordance with Section 1770 of the California State Labor Code and in accordance with the tenus of the Southern California Master Labor Agreement, which has established a prevailing rate of per diem wages to be paid in the performance of this agreement. The Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the contract. A copy of said determination is available by calling the prevailing wage hotline number (415) 703- 4774, and requesting one from the Department of Industrial Relations. All parties to the contract shall be governed by all provisions of the California Labor Code Relating to prevailing wage rates (Sections 1770-7981, inclusive)." 5. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Great Scott Tree Service, Inc. Page 2 WE IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By:r Aaron C. Harp o2-�51-t City Attorney QES ATTEST: Date: 0 Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Kevin Muldoon Mayor CONTRACTOR; GREAT SCOTT TREE SERVICE, INC., a California corporation Date: Bv: Scott P. Griffiths President Date: Bv: Steven J. Guzowski Chief Financial Officer [END OF SIGNATURES] Great Scott Tree Service, Inc. Page 3