REPORT TO COUNCIL
SUBJECT
Title
Award a Contract in the Amount of $1,190,000 to West Coast Arborists, Inc. for Street Tree Maintenance Services (F24-035)
Report
REPORT IN BRIEF
Approval is requested to award a contract to West Coast Arborists, Inc. of Anaheim, CA, 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 a potential economic decline. Consequently, there was no contracted routine street pruning in fiscal years 2020/21, 2021/22 and 2022/23. The current 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, resulting in a backlog of approximately 15,000 trees that were not pruned on schedule.
In January 2023, Council authorized $1,190,000 to fund a tree pruning contract to address the population of backlogged trees (RTC No. 23-0444). Staff prepared an Invitation for Bids (IFB) to contract out pruning services with a project scope consisting of five geographic zones with 3,000 street trees per group, for a total of 15,000 trees.
An 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. On July 30, 2024, Council awarded a contract was to Utility Tree Service, LLC (RTC No. 24-0617) in the amount of $1,190,000 based on a reduced quantity of trees (9,500), which was necessary to keep the project within the budget appropriation.
After contract award, Utility Tree Service notified City staff that they were unable to abide by their bid-upon unit price per tree due to the overall quantity of trees being reduced and offered a revised unit price of $152.98 per tree. City staff contacted and negotiated with the second lowest bidder, West Coast Arborists, who agreed to prune the reduced number of trees at a unit price of $148 per tree.
Therefore, staff recommends awarding a contract in the amount of $1,190,000 to West Coast Arborists, Inc., which would address approximately 8,000 trees. Staff will prioritize the trees based on the tree species and an assessment of the current condition of each geographic zone.
FISCAL IMPACT
Budgeted funds are available in Project 836640- Tree Pruning Backlog. Staff will consider either a recommendation to address the remainder of the backlogged trees during the FY 2023/24 Budgetary Year-End review in December 2024 or as part of the FY 2025/26 Recommended Budget.
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 West Coast Arborists, Inc. 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 period, subject to available budget and if pricing and 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
An “X” 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
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
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, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Services Agreement
3. Project Financial Summary for 836640 - Tree Pruning Backlog