REPORT TO COUNCIL
SUBJECT
Title
Award a Contract in the Amount of $1,190,000 to Utility Tree Service, LLC for Street Tree Maintenance Services
Report
REPORT IN BRIEF
Approval is requested to award a contract to Utility Tree Service, LLC of Pennsylvania in an amount not to exceed $1,190,000 for street tree maintenance services.
Approval is requested to authorize the City Manager to increase the quantities included in the contract and renew the contract for one (1) additional one-year period, subject to available budget and if pricing and services remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(h) for the maintenance of existing landscaping.
BACKGROUND AND DISCUSSION
During the COVID-19 pandemic, contracted tree pruning was suspended in order to conserve expenditures for anticipated revenue reductions due to potential economic decline. Consequently, there was no contracted routine street pruning in fiscal years 2020/21, 2021/22 and 2022/23. The current structural tree pruning contract provides for pruning of 5,500 street trees each fiscal year.
During the pandemic years, the city urban forestry staff maintained the street trees in Sunnyvale on a priority, hazard reduction basis. The backlog of trees scheduled for routine structural pruning remained. In January 2023, Council authorized $1,190,000 to fund an independent tree structural tree pruning contract to prune 15,000 street trees that required scheduled structural pruning (RTC No. 23-0444). Staff prepared an Invitation for Bids (IFB) to contract out pruning services consisting of five geographic zones at 3,000 street trees per group, for a total of 15,000 trees to address the deficit.
An Invitation for Bids (IFB) was advertised for competitive bidding on the City’s DemandStar public procurement network on January 8, 2024. Sealed bids were opened on February 7, 2024, with seven (7) responsive bids received. Utility Tree Service, LLC submitted the lowest bid for all five of the geographical zones (Groups A-E) in the amount of $1,869,450, or $124.63 per tree, as shown on the Bid Summary in Attachment 1 to the report. Staff recommends awarding a contract in the amount of $1,190,000, which is the amount of budget appropriated for dealing with the backlog and would address approximately 9,500 trees.
FISCAL IMPACT
Budgeted funds are available in Project 836640- Tree Pruning Backlog.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract to Utility Tree Service, LLC in a not-to-exceed amount of $1,190,000 in substantially the same form as Attachment 2 to the report;
- Authorize the City Manager to execute the agreement when all conditions have been met;
- Authorize the City Manager to increase the quantities under the contract, subject to available budget; and
- Authorize the City Manager to renew the contract for one (1) additional one-year option, subject to available budget and if pricing and if services remain acceptable to the City
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_x_ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Services Agreement
3. Project Financial Summary for 836640 - Tree Pruning Backlog