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HomeMy WebLinkAbout10/07/2014 Proposal to Extend Parkway Tree Removal Contractfount I'tospect Mount Prospect Public Works Department ' INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: DIRECTOR OF PUBLIC WORKS DATE: OCTOBER 1, 2014 SUBJ: PROPOSAL TO EXTEND PARKWAY TREE REMOVAL CONTRACT FOR ONE (1) YEAR. BACKGROUND On January 17, 2012, the Village Board awarded a contract for the removal of parkway trees to Homer Tree Care, Inc. of Lockport, Illinois (Homer). This contract facilitates the timely and cost- effective removal of dead and diseased trees from village -owned property and rights-of-way. The award was pursuant to a public bidding process. The term of the initial contract was one (1) year. However, the contract terms and the Village Board award included authorization to extend the contract in one (1) year intervals for a second and third year provided Homer agreed not to increase rates and the village was otherwise satisfied with the work. In compliance with these terms, the contract was extended in 2013 and again in 2014. The current and final extension of this contract terminates at the end of December 2014. The funds expended under this contract during the last three (3) years are delineated in Table 1 below: Table 1 2014 $290,556 2013 $266,127 2012 7$216,523 PROPOSAL Homer recently submitted a proposal to extend the existing parkway tree removal contract for an additional one (1) year term commencing January 1, 2015 and concluding December 31, 2015. Prices and all other terms from the initial 2012 contract remain unchanged. Page 2 of 2 Proposal to Extend Parkway Tree Removal Contract for One (1) Year October 1, 2014 DISCUSSION The impetus for Homer's extension proposal is rooted in their participation in the Kensington Business Center Private Property Tree Removal project. As part of this project, Homer has agreed to extend village contract rates for private property tree removals to Kensington Business Center property owners. This project, and Homer's role, was discussed in some detail at the September 9, 2014 Committee of the Whole meeting. Staff presently harbors concerns that logistical issues associated with gaining access to private property might delay Homer's work on this project past the current contract termination date (December 2014). To alleviate these concerns, Homer has proposed extending the contract term for one (1) year. It is the opinion of staff that Homer's participation is an important component of the project's financial appeal for Kensington Business Center property owners. Furthermore, if the parkway tree removal contract is re -bid, there is no guarantee that a new contractor would honor tree removal rates already offered to property owners. More importantly, a new contractor might not agree to extend contract rates to Kensington Business Center owners and requiring same as a contract condition might increase the village's costs for routine parkway tree removals. In addition, staff perceives an upward pressure on tree contractor rates next year. In large part, this is due to the high demand for tree services due to storms, disease, and insect infestation in recent years. Consequently, as a stand-alone proposal, Homer's offer to extend the existing contract rates for another year is attractive. The proposed expenditure level for parkway tree removals in 2015 is approximately $240,000. RECOMMENDATION I recommend that the Village Board accept the proposal from Homer Tree Care, Inc. of Lockport, Illinois to extend the parkway tree removal contract for a one (1) year term commencing on January 1, 2015 and concluding on December 31, 2015. Expenditures under this proposed extension will be limited to amounts authorized in th 2015 budget. Sean P. Dorsey Cc: Deputy Director of Public Works Jason Leib Forestry/Grounds Superintendent Dave Hull Administrative Superintendent Kristina Jakupovic File C:\Users\sdorsey\Documents\KBC TREES\HOMER CONTRACT EXTENSION MEMO.docx