City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 28, 2024
Report #:2407-3314
TITLE
Approval of Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for Tree Pruning and Removal Services in the Amount of $3,011,228, for a New Total Not-to- Exceed Amount of $6,776,608, and Extend the Term by Two Years; CEQA Status – Exempt per Section 15301(h) (maintenance of existing landscape)
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for tree pruning and removal services in the amount of $3,011,228, for a revised not-to-exceed amount of $6,776,608, and to extend the contract term by two years, through October 17, 2026 for a total term of five years.
BACKGROUND
The Public Works Urban Forestry Section is responsible for maintaining the health of more than 38,000 public trees located along streets and in various City-owned public places. Tree pruning is a key maintenance task in keeping the population healthy. The purpose of tree pruning is to improve tree structure, enhance vigor, and maintain safe conditions for motorists and pedestrians as they move through the street corridor. This maintenance is achieved through pruning all City-owned trees on a cyclical basis and involves removing and replacing trees when necessary.
In 2021, the City conducted a formal solicitation for the Tree Pruning and Removal Services contract. The three-year contract1 was awarded to West Coast Arborists, Inc. (WCA) in the amount of $3,765,380. This contract includes pruning, removal, stump grinding, and other maintenance of trees located along street corridors and on City property. 1 City Council, October 18, 2021; SR#12172
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This contract, which is scheduled to expire on October 17, 2024, has a three-year term with funding authority not to exceed $3,765,380. As the end of the contract term approached and staff began to prepare for a new solicitation, WCA approached staff with an offer to reduce the rates for all services by 2% in the two extension years, Year Four and Year Five, from the current Year Three rates. This offer was contingent upon the City amending the contract to extend it for an additional two years. The 2% reduction results in annual savings of $27,909, or $55,818 over the two-year extension.
ANALYSIS
Staff recommends approval of Amendment No. 1 (Attachment A) to the contract with WCA to add funding and extend the contract by two years. The proposed updated fee schedule provided by WCA is included in Attachment A. Contractual tree pruning and removal services were analyzed to determine whether to solicit bids for a new contract or extend the current one. Staff’s recommendation to extend the current contract is based on the following:
State of the Tree Care Industry
With multiple wildfire events and strong winter storms in recent years, the demand for tree workers in the utility line clearance segment of the tree care industry has grown tremendously in a short period of time. This has created a shortage of experienced, qualified workers for the remainder of the industry. While this trend is beginning to stabilize, there is still much volatility in the industry. It is likely this volatility surrounding access to experienced labor will affect future tree company pricing for municipal services.
Palo Alto-Specific Contract Details
The details of the contract scope of work and specifications ensure that the work performed by the street tree pruning contractor follows industry best management practices and meets or exceeds industry standards. Contracts that were examined and compared to the City’s current contract all adhere to best management practices and tree care industry standards as part of their scopes of work; however, there are many items in the City’s scope of work that exceed minimum standards and that, under the other contracts examined, could have resulted in higher overall costs.
Staffing Resource Considerations
The contract extension is expected to continue to require a predictable amount of staff oversight, whereas a new contract is likely to require additional oversight at the onset and possibly beyond. Interpretation of contract specifications is understood with the current contractor, thus reducing staff time required to address issues such as notifications, traffic control, and customer expectations.
Contractor Performance
The current contractor, WCA, has demonstrated over the term of the contract that it shares the goals of the City to protect the urban forest by providing high quality, professional tree care services. WCA has been responsive to the City’s needs and understands the high standards expected when working in Palo Alto. WCA has repeatedly demonstrated its ability to meet or exceed expectations, with consistent, documented, positive feedback from the residents of Palo Alto throughout the term of the contract.
FISCAL/RESOURCE IMPACT
Funding for the first year of this extension is available in the Public Works Department Fiscal Year 2025 Adopted Operating budget. Funding for the second and final year of the extension will be addressed as part of the FY 2026 annual budget process, subject to Council approval of the annual budget appropriation.
The table below shows the breakdown of the five-year contract, including the two-year extension (Year 4 and Year 5):
The contract’s total not-to-exceed amount of $6,776,608 includes a five-year total of $616,055 for additional services that may be needed during the term of the contract. No direct funding is available for the $616,055 additional services portion of this contract at present. The intention in granting this contract authority is to make additional services under this contract available to other departments or for projects that may arise during the contract term. One example of an additional service project is the recent removal of 38 eucalyptus trees in the Esther Clark Park to reduce fire hazards, using $105,860 of Community Services Department funding approved in the FY 2025 budget. Once funding for an additional service project is secured by the managing department, it can then be applied to the contract for use on an additional services project via a City-approved Task Order as detailed in the contract.
STAKEHOLDER ENGAGEMENT
This contract is for a continuation of existing tree trimming services and stakeholder engagement was not deemed necessary.
ENVIRONMENTAL REVIEW
The recommended action is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape).
ATTACHMENTS
Attachment A: West Coast Arborists, Inc. Contract C21181420, Amendment No. 1 APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer