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Staff Report PREPARED BY: MATT MORLEY Director of Parks and Public Works Reviewed by: Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 05/02/2017 ITEM NO: 7 DATE: APRIL 19, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A THIRD AMENDMENT TO THE AGREEMENT FOR SERVICES WITH WEST COAST ARBORISTS, INC. TO: A. INCREASE THE AGREEMENT AMOUNT BY $75,000 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $175,000 FOR FY 2016/17. B. INCREASE THE AGREEMENT AMOUNT BY $125,000 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $225,000 FOR FY 2017/18, SUBJECT TO THE APPROPRIATION OF FUNDS IN THE FY 2017/18 OPERATING BUDGET. RECOMMENDATION: Staff recommends that the Town Council authorize the Town Manager to execute a Third Amendment to the Agreement for Services with West Coast Arborists, Inc. (WCA) to: 1. Increase the agreement amount by $75,000 for a total agreement amount not to exceed $175,000 for Fiscal Year (FY) 2016/17. 2. Increase the agreement amount by $125,000 for a total agreement amount not to exceed $225,000 for FY 2017/18, subject to the appropriation of funds in the FY 2017/18 Operating Budget. BACKGROUND: On April 7, 2014, the Town Council authorized the Town Manager to execute an Agreement for Services with WCA to provide tree trimming services to the Town in an amount not to exceed $100,000 annually. The agreement became effective June 1, 2014, with the option to extend annually, for up to two years (to June 30, 2016), subject to the annual appropriation of funds (see Attachment 1). PAGE 2 OF 3 SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A THIRD AMENDMENT TO THE AGREEMENT FOR SERVICES WITH WEST COAST ARBORISTS, INC. (WCA) APRIL 19, 2017 S:\COUNCIL REPORTS\2017\05-02-17\West Coast Arborists\Staff Report final.docx 4/27/2017 1:23 PM SH BACKGROUND (cont’d): On April 4, 2016, Council authorized the Town Manager to execute a First Amendment to the agreement with the option to extend the term for an additional two years (to June 30, 2018) in an amount not to exceed $100,000 annually, subject to the annual appropriation of funds (see Attachment 2). A Second Amendment was executed effective July 1, 2016 exercising the option to extend the term for one additional year (July 1, 2016-June 30, 2017), with the amount of the agreement remaining the same – not to exceed $100,000 annually, subject to the annual appropriation of funds (see Attachment 3). DISCUSSION: The Town’s urban forest has was significantly impacted by the recent historic multi-year drought, which resulted in the need for staff to prioritize the removal of dead or dying trees located in parks and residential areas. The majority of the tree work was focused around removals, along with ongoing maintenance pruning in neighborhoods and parks ensuring the safety of the public. As a result of the drought and this past winter’s record rainfalls and extreme winds which caused extensive damage to the urban forest, staff relied heavily on WCA to remove downed trees in the hillsides zones and residential areas. Due to the unanticipated amount of work, the contract amount is insufficient to cover the necessary expenses. Staff requested additional funding in the amount of $75,000 which was approved through the FY 2016/17 Mid-Year Budget process on February 21st. The approval of the additional funding increases the available funding from $100,000 to $175,000 for FY 2016/17. The action of increasing the contract amount with WCA requires additional Council action and the recommendation will provide authorization for the Town Manager to execute a third amendment to the agreement for the increase (see Attachment 4). At the Council Priority Session in January, the Council identified interest in an increase in tree maintenance funding of $125,000, including $25,000 for the pruning of multiple eucalyptus trees on Hilow Road. This increase would bring the agreement to $225,000 for FY 2017/18. This allocation of these funds will come to Council through the FY 2017/18 Budget process at the May 16th Town Council meeting. PAGE 3 OF 3 SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A THIRD AMENDMENT TO THE AGREEMENT FOR SERVICES WITH WEST COAST ARBORISTS, INC. (WCA) APRIL 19, 2017 S:\COUNCIL REPORTS\2017\05-02-17\West Coast Arborists\Staff Report final.docx 4/27/2017 1:23 PM SH DISCUSSION (cont’d): To streamline the agreement amendment process, staff recommends that the Council provide the authority for the agreement amendment and increase now, subject to the appropriation of those funds through the budget process. If the Council decides not to appropriate additional funds, then the contract will remain at the $100,000 funding level and the Council would need to consider a fourth amendment to the agreement in August . The term of this agreement will expire at the end of FY 2017/18. Consistent with the Town’s procurement policies and practices, staff will obtain proposals for future tree services and the Council will consider a new contract beginning in FY 2018/19. CONCLUSION: Staff recommends that the Town Council authorize the Town Manager to execute a Third Amendment to the Agreement for Services with West Coast Arborists, Inc. (WCA) to: 1. Increase the agreement amount by $75,000 for a total agreement amount not to exceed $175,000 for FY 2016/17. 2. Increase the agreement amount by $125,000 for a total agreement amount not to exceed $225,000 for FY 2017/18, subject to the appropriation of funds in the FY 2017/18 Operating Budget. FISCAL IMPACT: There will be no fiscal impact in FY 2016/17 as an additional $75,000 in funding was approved through the FY 2016/17 Mid-Year Budget process. Funding to support the cost impact in FY 2017/18 will be included as a part of the Town’s Proposed FY 2017/18 Operating Budget for Town Council approval. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Original Agreement 2. First Amendment 3. Second Amendment 4. Third Amendment