City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.N
1 of 5
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Public Landscape Subject: Award Bid to United Pacific Services, Inc. for the Comprehensive Urban Forest Maintenance Program
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4415 to United Pacific Services, Inc. to provide urban forest maintenance services for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with United Pacific Services, Inc. in an amount not to exceed $8,731,559 over a five-year period, which includes a $1,746,312 contingency, and one additional five-year renewal option in the amount of $9,800,877, which includes a $1,960,175 contingency, on the same terms and conditions for a total amount not to exceed $18,532,436 over a 10-year period with future year funding contingent on Council budget approval.
Summary
Santa’s Monica’s urban forest is an invaluable asset that provides the community with many environmental, economic, and social benefits. The City’s approximately 36,000 public trees are maintained solely by a vendor under the oversight of the Public Works Department’s Public Landscape Division. Vendor services include tree pruning, tree removal, tree planting, watering, addressing emergencies, young tree care, and inventory management. Staff recommends awarding bid #4415 to United Pacific Services, Inc. to provide these services to maintain and advance the health, safety, and benefits of the City’s urban forest. Staff also recommends entering into an agreement with a five-year initial term with an option to renew for an additional five years. The fiveyear initial term would be in an amount not to exceed $8,731,559, which includes a 25% contingency in the amount of $1,746,312. Costs for services remain the same 2 of 5
throughout the entire initial five-year term. Staff recommends a 25% contingency for this work to accommodate emergencies and unscheduled tasks, work requested by various departments and funds, and to have enough contract authority to accommodate potential future funding restorations contingent on Council budget approval as funding for urban forest work decreased by approximately 30% at the start of the COVID pandemic.
The five-year renewal option would be in an amount not to exceed $9,800,877, which includes a 25% contingency in the amount of $1,960,175 and 4% cost escalator in each of the additional five years. As part of their bids, vendors provided cost escalators for each year of the five-year renewal option. The contingency would be for the same aforementioned reasons. If the five-year renewal option is exercised, the total ten-year contract amount would not exceed $18,532,436.
Discussion
The City of Santa Monica has long been on the forefront of sustainability measures and providing a healthy community for our residents and visitors alike. A thriving urban forest is a recognized hallmark of a healthy and sustainable community. Continued investment and maintenance of the urban forest reflect the City’s commitment to continued innovation and high standards for the wellbeing of our community and environment. Santa Monica’s tree canopy covers approximately 12% of the City’s land area with over half being attributed to 35,800 public trees on the streets and in the parks. The City’s urban forest not only results in cooler temperatures, but also an estimated $2,323,743 in total tree benefits. The total tree benefit incorporates savings due to storm water runoff mitigation, air quality improvements such as absorbing pollutants and reducing energy use, and, perhaps most significantly, carbon dioxide sequestration. It is also proven with research that trees help increase property value by providing a more attractive urban landscape.
The Public Landscape Division of Public Works is tasked with delivering the vision of Santa Monica’s Urban Forest Master Plan adopted by City Council in 2011. Appropriate 3 of 5
urban forest maintenance is a critical element of this Master Plan, and the division annually responds to nearly 900 tree related 311 service requests.
The City has historically contracted urban forest maintenance services. The “Contract and As-Needed Staffing Review Policy, Practice, Recommendations” report approved by Council on January 13, 2015, recommends that urban forest maintenance services be contracted due to capital/equipment requirements, specialized expertise, and risk management. Bid #4415 requires the vendor to provide all equipment and personnel needed to deliver the needed services. A sample of the volume of services performed can be illustrated by an average of the last three fiscal years within these four primary categories:
• Trees (including palms) pruned: 7,023
• Trees removed: 207
• Trees planted: 479
• Trees watered: 12,693
Vendor Selection
Bidder Recommendation
Best Bidder United Pacific Services, Inc.
Evaluation Criteria Bid evaluated on the price; the ability, capacity, and skill of the bidder to perform
or provide the materials or services; the
capacity of the bidder to perform the
contract or provide the service promptly,
within the time specified, and without delay
or interference.
Municipal Code SMMC 2.24.180
Submittals Received
United Pacific Services, Inc. $6,985,247
Mariposa Tree Management, Inc. $8,450,846
West Coast Arborists, Inc. $9,034,383
Bid Data
Date Posted Posted On Advertised in (City
Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
8/24/21 ProcureNow Santa Monica 17 9/14/21
4 of 5
Daily Press
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, the ability, capacity and skill of the bidder to perform or provide the materials or services; the capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference.
Staff determined United Pacific Services submitted the best price by projecting future costs over a five-year and ten-year period (including annual cost escalators provided by each of the three vendors for each year of the five-year renewal option) based on the estimated annual frequencies provided in the bid and actual productivity from the two most recent fiscal years prior to posting the bid.
Additionally, staff evaluated ability, capacity, and skill using professional qualifications, reference checks, and an inventory management software demonstration to select United Pacific Services as the best bidder.
Protest
On May 27, 2022, City staff posted a pending award notification on the City's online bidding site, putting all vendors on notice that staff's recommendation to Council would be to award bid #4415 to United Pacific Services, Inc. On June 2, 2022, the City's Purchasing Agent received a timely protest from West Coast Arborists, Inc (WCA). The protest questioned pricing evaluation. On June 23, 2022, after reviewing the submitted protest documents, the Finance Director denied the protest based on the bid tabulation which is an automated function of the bid opening process in ProcureNow. The bid tabulation does not consider any additional analysis that may be required depending on the pricing methodology used. The pricing methodology used for the bid was a rate card model.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund in the Public 5 of 5
Landscape Division operating budget, urban forest renewal CIP, and various other funds dependent on requests (contingency) to award a contract with United Pacific Services, Inc for tree maintenance services. Future year funding is contingent on Council budget approval.
Contract Request
FY 2022-23
Request Amount
Years 2 – 5 Total
(Initial Term)
Future Years
(5 Year Optional
Renewal Term)
Department/
CIP Account #
Total Contract
Amount
$967,533 $3,767,714 $5,305,863 01500024.550010 $10,041,110 $450,000 $1,800,000 $2,534,839 C0104650.689000 $4,784,839 $354,383 $1,391,929 $1,960,175
Various - Depends
on Department and
Fund Request
$3,706,487
$1,771,916 $6,959,643 $9,800,877 TOTAL $18,532,436
Prepared By: Carlos Collard, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. FY22-23 UPS Oaks Initiative