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CONTRACT 4699B AmendmentAgreement No. 4699B SECOND AMENDMENT TO AGREEMENT NO. 4699 BETWEEN THE CITY OF EL SEGUNDO AND WEST COAST ARBORISTS, INC. THIS SECOND AMENDMENT ( "Amendment ") is made and entered into this 20th day of October, 2016, by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation existing under the laws of California ( "CITY "), and WEST COAST ARBORISTS, INC., a California corporation ( "CONTRACTOR "). The parties acknowledge and agree as follows: 1. Agreement No. 4699 between the parties ( "Agreement ") requires that CONTRACTOR pay prevailing wages to its workers. On June 7, 2016, CONTRACTOR notified the CITY that due to a reclassification of such maintenance workers by the State Department of Industrial Relations, CONTRACTOR is no longer able to perform the services at the prices set forth in the Agreement and CONTRACTOR requested that its price schedule be adjusted.(see attached Exhibit A). 2. Accordingly, pursuant to Section 18 of the Agreement, Section 1(C) is amended to increase the amount of the Agreement to a not to exceed amount of One Hundred and Eighty -Five Thousand Dollars ($185,000) for Fiscal Year 2016 -2017. 3. CONTRACTOR may adjust the unit prices set forth in the Agreement by ten percent (10.0 %) effective each October 22, of 2016, 2017 and 2018. These adjusted unit rates are set forth on the Schedule of Compensation attached hereto as Exhibit B. 4, This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date. Except as modified by this Amendment, all other terms and conditions of Agreement No. 4699 remain the same. [SIGNATURES ON NEXT PAGE] Agreement No. 4699B IN WITNESS WHEREOF the parties hereto have executed this Amendment the day and year first hereinabove written. ATTEST: Taxpayer ID No. Trt cy ver,' Q DP (LA, ,A APPROVED AS TO FORM: . . ..... -... vi r i�/z for Mark D. Hensley, City Attorney 2 Tree Care Professionals Serving Communities Who Care About Trees June 7, 2016 City of El Segundo ATTN. Mark Trujillo, Parks Superintendent 150 Illinois Street El Segundo, CA 90245 RE: TREE MAINTENANCE SERVICES AGREEMENT Dear Mr. Trujillo, Agreement No. 4699B Exhibit A www.WCAINC.com Throughout the past two years, West Coast Arborists, Inc. (WCA) and the City of El Segundo have forged a very productive and cohesive working relationship with the integrity, health and preservation of the City's urban forest as our common goal. For many years, union organizations debated with the State's Department of Industrial Relations (DIR) and our firm that the work we performed for public agencies consisted of construction work and therefore, they demanded that we pay our field employees construction laborer rates which averaged between $40 -$50 per hour. After much careful thought, WCA agreed to enter into a Collective Bargaining Agreement (CBA) with the Laborers Union on June 1, 2015. Subsequently, on August 22, 2015, a new prevailing wage determination was issued by the DIR. The new rates stem from our CBA with the Laborers Union and although not as high as the construction laborers rates as originally proposed by the DIR; they are, however, more than the wages for Landscape Maintenance Laborer. There are benefits to the new prevailing wage; it will allow the cities to continue to afford contracted tree maintenance services at a reasonable cost, help support the State's initiative to increase the lower tiered wages, provide a decent wage for the municipal tree care industry, and allow us to continue to operate at a competitive rate. However, the new prevailing wages are higher than previously used and will increase beyond the Consumer Price Index beginning July 1, 2016. The new wage classification includes pre- determined wage increases for the next three (3) consecutive years. At this time, we respectfully propose an increase over the remaining three years of our current agreement. We propose an increase of 10% effective each October 22, 2016/2017/2018 to help offset these imposed wage rates. Attached to this letter is our proposed price schedule. We appreciate your ongoing efforts to make this Agreement successful for both parties. Should you have any questions, or require additional information please do not hesitate to contact me at (800) 521- 3714. a President Agreement No. 4699B Exhibit B CITY OF EL SEGUNDO TREE MAINTENANCE SERVICES PROVIDED BY WCA, INC. SCHEDULE OF COMPENSATION ITEM DESCRIPTION JUNIT FY16 -17 Each FYI 7-18 PROPOSED UNIT PRICES 165.00 FY18 -19 PROPOSED UNIT PRICES PROPOSED UNIT PRICES $ 39.00 1 Full Trim 0 -6" dsh Each $ 33.00 Each $ 36.00 137.50 2 Full Trim 7 -12" dsh Each $ 98.00 $ $ 108.00 16 $ 119.00 3 Full Trim 12 -16" dsh Each $ 98.00 275.00 $ 108.00 302.50 $ 119.00 4 Full Trim over 16" dsh Each $ 264.00 24 inch box tree w /out Barrier $ 290.00 $ $ 319.00 5 Clearance Trim 0 -6" dsh Each $ 22.00 $ $ 24.00 18 $ 26.00 6 Clearance Trim 7 -16" dsh Each $ 33.00 198.00 $ 36.00 217.50 $ 39.50 7 Clearance Trim over 16" dsh Each $ 44.00 1 Emergency Response $ 48.00 $ $ 53.00 8 Trim Coco Palm Each $ 55.00 $ $ 60.00 20 $ 66.00 9 Trim Washingtonia Palm Each $ 55.00 110.00 $ 60.00 121.00 $ 66.00 10 Trim Date Palm Each $ 55.00 OPS'Tree lnventory $ 60.00 $ $ 66.00 11 Tree & Stump Removal up to 36" Dia. Inch $ 27.50 $ $ 30.00 $ 33.00 12 Tree & Stump Removal over 36" Dia. Inch $ 33.00 prices reflect a 10% increase due to the $ 36.00 for Tree Maintenance and $ 39.50 13 Stump Only Removal Dia. Inch $ 11.00 $ 12.00 $ 13.00 Tree Planting: 14 15 gallon tree w/ Barrier Each $ 165.00 $ 181.50 $ 199.50 15 15 gallon tree w /out Barrier Each $ 137.50 $ 151.00 $ 166.00 16 24 inch box tree w/ Barrier Each $ 275.00 $ 302.50 $ 332.75 17 24 inch box tree w /out Barrier Each $ 302.50 $ 333.00 $ 366.00 18 Crew Rental (3 men w/ equipment) Per hour $ 198.00 $ 217.50 $ 239.25 19 1 Emergency Response Per hour $ 264.00 $ 289.50 $ 318.00 20 Specialty Equipment - Crane /95 -foot aerial Per hour $ 110.00 $ 121.00 $ 133.00 21 OPS'Tree lnventory Tree Site $ 2.20 $ 2.40 $ 2.60 Proposed prices reflect a 10% increase due to the State - mandated prevailing wage for Tree Maintenance and its annual pre- determined wage increases. Fiscal Year (FY) = Actual contract year is between October 22 through October 21.