December 20, 2005

SUBJECT:      Authorization to Increase Expenditures Under an Existing Contract for the Removal of Existing Tree Stumps and the Installation of New and Replacement Street Trees (#F0512-37)

REPORT IN BRIEF

Approval is requested to increase expenditures under an existing blanket purchase order with Anderson’s Tree Care of San Jose for the removal of more than 200 street tree stumps and the installation of more than 300 City-provided new and replacement street trees for the Department of Public Works Trees and Landscape Division.

BACKGROUND

The removal and replacement of street trees is a service that traditionally has been competitively bid with Public Works staff preparing specifications and determining the number of stumps to be removed as well as the number of trees to be installed each fiscal year.

Invitation for Bids No. F0401-28 was issued by Purchasing staff on January 11, 2005, for the FY 2004/05 street tree program and specified the removal of approximately 245 tree stumps and the installation of approximately 365 new and replacement street trees.   Bids were requested for three sizes of stumps and tree planting at parkway, sidewalk, and tree well sites.

Six responsive bids were received with the lowest responsive and responsible bidder being Anderson’s Tree Care of San Jose who bid $46,610 for the specified work.  Blanket purchase order No. 27456-B in the amount of $46,610 was issued by the Purchasing Division on February 10, 2005, under the City Manager’s contract award authority of $50,000 or less.  Two change orders were subsequently issued to extend the purchase order term by one month and to purchase additional tree stakes.

DISCUSSION

Bid specifications were based on the best estimate of Public Works staff as to the number of stumps in each of three sizes and the number of plantings at each type of site.  However, actual conditions in the field were somewhat different than anticipated (i.e., some stumps classified as small (less than 12” in diameter) were determined in the field to be medium (12” – 24” in diameter)).  As a result, expenditures under the contract were somewhat higher than anticipated.  Staff, therefore, requests authorization to increase the total contract amount from $46,610 to $54, 379, an increase of $7,769, to compensate the contractor for work actually encountered in the field.

FISCAL IMPACT

Total contract amount will be $54,379 (tax included). Funds have been budgeted in the operating accounts for Public Works Program 218 – Street Trees.

RECOMMENDATION

It is recommended that Council authorize additional expenditures under blanket purchase order No. 27456-B with Anderson’s Tree Care of San Jose, in substantially the same form as the attached Change Order and in an amount not to exceed $7,769, for stump removal and tree planting services, making a total contract amount of $54,379.

Prepared by

Elaine Wesely

Purchasing Officer

Reviewed by:

Mary J. Bradley

Director, Finance

Reviewed by

Marvin Rose

Director, Public Works

Approved by:

Amy Chan

City Manager

Attachments

A.       Blanket Purchase Order No. 27456-B(pdf)

B.       Change Order No. 1(pdf)

C.       Change Order No. 2(pdf)

D.       Draft Change Order No. 3(pdf)