AGENDA MEMORANDUM

 

 

Meeting Date:           September 22, 2008

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing a first amendment to an existing agreement with Lewis Tree Service, Inc. for ongoing tree trimming and related services

 

 

Staff Recommendation:

Staff recommends approval of the first amendment with Lewis Tree Service, Inc. for an additional one-year term.

 

Analysis:

Lewis Tree Service, Inc. provides tree trimming services primarily to the Electric Department. The contractor also provides tree services to other departments within the City when requested. The City originally contracted with Lewis Tree Service, Inc., in October 2005 for a three-year period.  The original agreement provides for the City to exercise no more than two one-year extensions beyond the original three year period

 

The original agreement includes a provision for the contractor to request an annual increase up to 5% each year.  Lewis Tree Service, Inc. has not requested any increases during the first three years of this agreement.  The contractor is now requesting a 15% increase to the original unit costs established in 2005.  Given the increase in the cost of skilled and trained labor as well as fuel and other operating expenses over the past three years, the Purchasing Manager and Electric Utility Director feel this increase is reasonable.  The Purchasing Department compared the new rates requested by Lewis Tree Service to a recently awarded contract by another local agency to another tree service.  The proposed rates from Lewis Tree Service for two and three person crews are lower than the rates obtained by that agency.

 

Extension of this contract will allow for uninterrupted service during hurricane season.  It will also retain their staff that is familiar with City operations and electric utility service area.  The Electric Department has recently lost several employees to the early retirement option.  One of those employees was responsible for overseeing the work of the contractor.  Retaining the existing company will minimize the burden on the electric superintendent which is now charged with overseeing the tree crew in addition to his regular duties.

 

The amount of business with this vendor for fiscal years 2007 and 2008 is $446,698.97 and $447,743.73 respectively.  The City has received excellent service and dependability from Lewis Tree Service, Inc. and staff wishes to continue the relationship with this vendor.

Options:

1.  Authorize execution of the first amendment with Lewis Tree Service, Inc.; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

Funds for Electric Utility tree trimming and services are budgeted on an annual basis.  The proposed budget for Fiscal Year 2008-09 is $400,000.00.

 

 

Submission Date and Time:    9/17/2008 5:44 PM____

 

Department: _Electric Department______

Prepared by:  _Mike Thornton__________                     

Attachments:         Yes_X__   No ______

Advertised:   ____Not Required __X___                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________JB______                                     

                              

Deputy C.M. _________EFS_______                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-1062-531-4625__

 

Project No. __415931___________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO AN ORIGINAL AGREEMENT WITH LEWIS TREE SERVICE FOR TREE TRIMMING AND REMOVAL AS NEEDED; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute a first amendment to an original agreement executed on October 1, 2005 with LEWIS TREE SERVICE, INC. whose address is 300 Lucius Gordon Drive, West Henrietta, NY  14586, for tree trimming and related services pursuant to original invitation to bid number LB-05-21.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _22nd____ day of _September________ 2008

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk