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Home My WebLink About07 - CC-7 - Contract Amendment- West Coast Arborists - 7/5/2016CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 5, 2016 ITEM NUMBER: CC -7 SUBJECT: CONTRACT AMENDMENT -WEST COAST ARBORISTS, INC. DATE: JUNE 23, 2016 FROM: PUBLIC SERVICES DEPARTMENT - MAINTENANCE SERVICES DIVISION PRESENTATION BY: BRUCE HARTLEY, MAINTENANCE SERVICES MANAGER FOR FURTHER INFORMATION CONTACT: BRUCE HARTLEY (714) 754-5123 RECOMMENDATION 1. Approve and authorize the Chief Executive Officer to execute Amendment #2 to the professional services agreement with West Coast Arborists, Inc. to increase by 1.5%, based on the Consumer Price Index, the annual amount of the contract by $7,050 and the unit pricing schedule for urban forest maintenance tasks (Attachment 1). 2. Authorize the Chief Executive Officer to approve the one (1) year time extensions per the terms and conditions of the existing agreement, upon mutual agreement of both parties. BACKGROUND The City Council awarded a five-year contract, with three optional 1 -year term extensions, to West Coast Arborists, Inc. (WCA) on October 1, 2012. The terms of the agreement established unit costs for all tree maintenance tasks required by the City. West Coast Arborists, Inc. has requested a 1.5% price increase per the terms of the contract. This would affect the total price of the contract and the unit price structure reflecting the incorporation of the increase into each of the unit costs. Additionally, the five-year initial term of the contract will expire in October 2017. The Agreement allows for three one-year term extensions. Approval of extensions requires an amendment approved by the City Council. Staff is requesting City Council to provide authorization to the CEO to approve the one-year term extensions upon mutual agreement of both parties, and only if the compensation increases by the amount of the annual CPI as specified in the Agreement. ANALYSIS The existing Professional Services Agreement allows for the contractor to annually request an increase in the contract price to adjust for changes in the Consumer Price Index (CPI). The CPI for the past year is 1.5% (Attachment 2). WCA has requested the total price of the contract and the unit cost schedule be increased by 1.5% to reflect the CPI increase (Attachment 3). The work performed by WCA is invoiced based on the unit 1 costs and is limited by the Agreement and the Purchase Order to not exceed the total contract amount. FISCAL REVIEW If approved, the CPI increase of 1.5% will result in an increase in the cost of the Urban Forestry Maintenance contract in the amount of $7,050. This additional funding is included in the FY 16-17 Public Services operating budget. ALTERNATIVES CONSIDERED The CPI price increase is included in the terms and conditions of the existing contract. No alternatives were considered. LEGAL REVIEW The City Attorney prepared the Agreement and has approved it as to form. CONCLUSION West Coast Arborists, Inc. is the City's provider for tree maintenance services. Per the terms of the agreement, an increase in the annual contract based on the Consumer Price Index is allowed. The requested 1.5% increase in the contract is consistent with the published CPI for Orange County and is recommended to be approved. Additionally, the initial 5 -year term of the contract will end in October 2017. Staff is requesting that the Council authorize the CEO to approve the one-year term extensions to the contract per the terms of the existing agreement if both parties agree and the services being provided meet the terms and requirements of the City. JAMES ROSS Interim Public Services Director BRUCE HARTLEY Maintenance Services Manager Attachments: 1. Amendment #2 2. CPI May 2015 to May 2016 for Los Angeles -Riverside -Orange County area 3. WCA Request for CPI Price Adjustment 2 ATTACHMENT 1 SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT ("Amendment") is made and entered into , 2016 ("Effective Date"), by and between the CITY OF COSTA MESA, a municipal corporation (the "City"), and WEST COAST ARBORISTS, INC., a California corporation ("Consultant"). Recitals WHEREAS, the City and Consultant entered into a Professional Services Agreement on October 1, 2012 to provide tree maintenance services, including trimming, pruning, planting and removal (the "Agreement"); and WHEREAS, the City and Consultant amended the Professional Services Agreement on February 1, 2016 to increase the maximum annual compensation limit to allow Consultant to provide additional tree maintenance services to support the City's Parkway Maintenance Capital Improvement program; and to continue to provide tree maintenance services, including prompt removal of dead trees, emergency services during or following storms, and preventative maintenance, throughout the year; and WHEREAS, Consultant is requesting an increase in compensation under the terms of the Agreement in the amount of the annual increase in the Consumer Price Index for Los Angeles -Riverside -Orange County (CPI); and NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Section 2.1 of the Agreement is hereby amended to add $7,050 to the maximum annual compensation limit. This amount reflects a CPI increase of 1.5%. 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above. [Signatures appear on the following page.] C CITY OF COSTA MESA, A municipal corporation Date: Chief Executive Officer Date: Interim Finance Director Date: Interim Public Services Director CONSULTANT Date: Signature Name and Title Social Security or Taxpayer ID Number ATTEST: City Clerk APPROVED AS TO FORM: Date: City Attorney APPROVED AS TO INSURANCE: Date: Risk Management M Consumer Price Index, Los Angeles area — May 2016 : Western Information Office : ATTACHMENT #2 A to Z Index I FAQs About BL I Contact Us Subscribe to E-mail Updates IM Follow Us ,j I what's New I Release Calendar I Skog Search BLS.gov Home Subjects I Data Tools I Publications I Economic Releases I Students I Beta Western Information Officei a�lr Search Western Region Western Home Western Geography Western Subjects I Western Archives I Contact Western Geoaraohlt tgfrirnWtlon > Western > News Release Consumer Price Index, Los Angeles area — May 2016 Area prices were up 0.5 percent over the past month, up 1.5 percent from a year ago Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI -U), advanced 0.5 percent in May, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the May increase was influenced by higher prices for medical care and shelter. (Data in this report are not seasonally adjusted. Accordingly, month-to- month changes may reflect seasonal influences.) Over the last 12 months, the CPI -U advanced 1.5 percent. (See chart 1 and table A.) Energy prices fell 18.4 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy advanced 3.5 percent over the year. (See table 1.) Chart 1. Over -the -year percent change in CPI -U, Los Angeles„ May 2413—May 20163 Percent change 4.0 3.0 2.0 1.0 0.0 -1.0 AJI items AllIterttSltl;ofbpdand en. . r" News Release Information 16 -1239 -SAN ' Thursday, June 16, 2016 I Contacts Technical information: (415)625-2270 BLSlnfoSFMM.aov w w _btrS.iizaykeolws1wesl Media contact: (415)625-2270 I PDF PDF version J' I May Aug Nov Feb May Pug Nov Feb May Aug Nov Feb May '13 14 15 tS Source: U.S., Bureau of LaborStalistics. Food Food prices declined 0.5 percent for the month of May. (See table 1.) Prices for food at home decreased 1.1 percent, but prices for food away from home moved up 0.2 percent for the same period. Over the year, food prices rose 1.3 percent. Prices for food away from home advanced 3.8 percent since a year ago, but prices for food at home decreased 0.6 percent. Entergy The energy index advanced 1.1 percent over the month. The increase was mainly due to higher prices for natural gas service (11.9 percent). Prices for gasoline edged up 0.1 percent, while prices for electricity were unchanged for the same period. Energy prices fell 18.4 percent over the year, largely due to lower prices for gasoline (-27.5 percent). Prices paid for electricity decreased 2.7 percent, but prices for natural gas service increased 2.0 percent during the past year. 5 http://ww'tiv.bls.gov/regions/west/news-release/consumerpriceindex losangeles.htm 06/22/2016 Consumer Price Index, Los Angeles area -May 2016: Western Information Office: U.... Page 2 of 4 All items less food and energy The index for all items less food and energy increased 0.7 percent in May. Higher prices for medical care (3.1 percent) and shelter (0.5 percent) were partially offset by lower prices for apparel (-0.3 percent) and education and communication (-0.3 percent). Over the year, the index for all items less food and energy advanced 3.5 percent. Components contributing to the increase included medical care (9.8 percent) and shelter (4.3 percent). Partly offsetting the increases was a price decline in education and communication (-0.5 percent). Table A. Los Angeles -Riverside -Orange County CPI -U monthly and annual percent changes (not seasonally adjusted) Month 2011 Monthly Annual 2012 Monthly Annual 2013 Monthly Annual 2014 Monthly Annual 2015 Monthly _ Annual 2016 Monthly Annual January 0.9 1.8 0.8 2.1 0.8 2.0 0.5 0.8 -0.3 -0.1 0.7 3.1 February 0.5 2.3 0,5 2.1 0.7 2.2 0.5 0.5 0.7 0.1 0.0 2.4 March 1.1 3.0 1.0 2.0 0.1 1.3 0.6 1.0 1.0 0.51 0.3 1.7 April 0.5 3.3 0.0 1.5 -0.4 0.9 0.0 1.4 -0.1 0.51 0.2 2.0 May 0,0 3,1 0.1 1.6 0.1 1.0 0.4 1.7 1.0 1.1 0.5 1.5 June -0.4 2.9 -0.4 1.6 -0.1 1.4 0.1 1.8 -0.3 0.8 July -0.4 2.4 -0.1 1.9 -0.1 1.3 0.1 2.0 0,7 1.4 August 0.2 2.4 0.6 2.3 0.1 0.8 -0.1 1.8 -0.3 1.1 September 0.5 3.1 0.4 2.2 0.2 0.6 0.0 1.7 -0.4 0.7 October 0.0 2.8 0.81 3.0 0.1 -0.1 -0.1 1.4 0.2 1.0 November -0.1 3.0 -1.01 2.1 -0.5 0,4 0.7 1.3 0.0 1.6 December 1 -0.51 2.2 -0.71 ul ul 1.11 -0.51 0.7 -0.11 2V The June 2016 Consumer Price Index for the Los Angeles -Riverside -Orange County is scheduled to be released on July 15, 2016. Technical Note The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI -U) which covers approximately 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI -W) which covers 28 percent of the total population. The CPI -U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force. The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 87 urban areas across the country from about 6,000 housing units and approximately 24,000 retail establishments --department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index. The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details see the CPI home page on the Internet at www.bls.aov/coi and the BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at www.bls.00v/oaub/hom/homchl7 a.htm. In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period. The Los Angeles -Riverside -Orange County, CA. metropolitan area covered in this release is comprised of Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties in the State of California. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339. Table 1. Consumer Price Index for All Urban Consumers (CPI -U): Indexes and percent changes for selected periods Los Angeles4Uverslde-Orange County, CA (1982-84=100 unless otherwise noted) Indexes Item and Group Expenditure category All items Mar. Apr. May 2016 2016 2016 247.8731 248.368 249,671 Percent change from - May I Mar. I Apr. 2015 2016 2016 0. X http://www.bls.gov/regions/west/news-release/consumerpriceindex losangeles.htm 06/22/2016 ATTACHMENT #3 -.H Tree CarePrgkssionals Serving Communities Who Care About Trees www.WCAINC.com June 22, 2016 City of Costa Mesa ATTN: Bruce Hartley, Maintenance Services Manager P.O. Box 1200 Costa Mesa, CA 92628-1200 RE: Tree Maintenance Services Dear Mr. Hartley, With this fiscal year coming to a close, West Coast Arborists, Inc. would like to take a moment to thank you and the City for another Successful year. Together we have worked diligently to ensure that our mutual goal of improving the City's urban forest is being achieved each day. The purpose of this letter is to express our interest in continuing with the agreement for an additional year with a slight increase in cost. Over the course of the year, the cost of operating has continued to increase particularly in labor, with the latest prevailing wage determination. For this reason, we respectfully request a cost adjustment of 1.5% based on the Consumer Price Index (CPI) for the Los Angeles -Orange -Riverside region. Attached for your review is our proposed Schedule of Compensation for 2016-2017. We appreciate your consideration in this matter. We look forward to continuing our successful business relationship. Should you have any questions or require additional information, please do not hesitate to call me at (800) 521-3714. Sincerely, r Victor M. Gonzalez Vice President, Marketing 1-7 City of Costa Mesa Proposed Schedule Of Compensation for FY16-17 Tree Maintenance & Various Services provided by West Coast Arborists, Inc. ITEM DESCRIPTION UNIT CURRENT UNIT PRICES PROPOSED UNIT PRICES 1 Grid Pruning Each $ 46.00 $ 46.70 2 Full Prune 0-6 DSH Each $ 38.00 $ 38.60 3 Full Prune 7-12 DSH Each $ 58.00 $ 58.90 4 Full Prune 13-18 DSH Each $ 58.00 $ 58.90 5 Full Prune 19-24 DSH Each $ 58.00 $ 58.90 6 Full Prune 25-30 DSH Each $ 98.00 $ 99.50 7 Full Prune 31-36 DSH Each $ 98.00 $ 99,50 8 Full Prune > 36 DSH Each $ 98.00 $ 99.50 9 Crown restoration/Crown reduction Each $ 148.00 $ 150.20 10 Clearance Pruning 0-6 DSH Each $ 28.00 $ 28.40 11 Clearance Pruning 7-12 DSH Each $ 38.00 $ 38.60 12 Clearance Pruning 13-18 DSH Each $ 38.00 $ 38.60 13 Clearance Pruning 19-24 DSH Each $ 38.00 $ 38.60 14 Clearance Pruning 25-30 DSH Each $ 58.00 $ 58.90 15 Clearance Pruning 31-36 DSH Each $ 58.00 $ 58.90 16 Clearance Pruning > 36 DSH Each $ 58.00 $ 58.90 17 Prune Date Palm Each $ 98.00 $ 99.50 18 Date Palm Trunk Cleaning Each $ 190.00 $ 192.85 19 Prune Fan Palm Each $ 48.00 $ 48.75 20 Fan Palm Trunk Cleaning Each $ 190.00 $ 192.85 21 Prune all other Palms Each $ 48.00 $ 48.70 22 Trec & Stump Removal 0-6 DSH Inch $ 15.00 $ 15.25 23 Tree & Stump Removal 7-12 DSH Inch $ 15.00 $ 15.25 24 Tree & Stump Removal 13-24 DSH Inch $ 20.00 $ 20.30 25 Tree & Stump Removal >25 DSH Inch $ 20.00 $ 20.30 26 Tree & Stump Removal 0-12 DSH - Milled Inch $ 20.00 $ 20.30 27 Tree & Stump Removal over 13" DSH - Milled Inch $ 35.00 $ 35.50 28 Stump Grinding Inch $ 8.00 $ 8.10 29 Plant 15 Gallon Tree Each $ 100.00 $ 101.50 30 Plant 24" Box Tree Each $ 225.00 $ 228.40 31 Plant 36" Box Tree Each $ 750.00 $ 761.25 32 Plant 48" Box Tree Each $ 1,500.00 $ 1,522.50 33 Plant Fan Palm BTH Foot $ 150.00 $ 152.25 34 Plant Fan Palm 10-30 BTH Each $ 2,500.00 $ 2,537.50 35 Root Pruning & installation of 12" root barrier Foot $ 7.00 $ 7.10 36 Root Pruning & installation of 18" root barrier Foot $ 15.00 $ 15.25 37 Root Pruning & installation of 12-30" root barrier Foot $ 20.00 $ 20.30 38 Crew Rental - per man Man Hour $ 50.00 $ 50.75 39 Day Rate Service Crew Day $ 1,200.00 $ 1,218.00 40 Watering/Small Tree Care Day $ 475.00 $ 482.10 41 Emergency Response - 7am-5pm (3 men) Man Hour $ 150.00 $ 152.25 42 Emergency Response - after hrs (3 men) Hour $ 240.00 $ 243.60 43 ISA Certified Arborist Hour $ 120.00 $ 121.80 Current prices have been in effect since 2013. Proposed prices reflect a 1.5% increase based on the latest CPI for the LA -Orange -Riverside region. 7