Title
Approval of Services Agreement No. AGR26-72 with Southwest Fire Defense, LLC in the Amount of $1,000,000.00, plus Applicable Gross Receipts Tax, for the Purpose of Electric Power Line Tree Trimming Services Near and Around 15,000 Volt Energized Power Lines Over the Next Seven Years
Recommended Action
I move that the Board of Public Utilities recommend Services Agreement No. AGR26-72 with Southwest Fire Defense, LLC in the amount of $1,000,000.00 plus applicable gross receipts tax, for the purpose of Electric Power Line Tree Trimming services near and around energized power lines over the next seven years and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the board approve the motion as presented.
Body
Tree trimming activities will be defined by LAC-DPU engineering. Task orders for each job will be drafted for review and approval by Southwest Fire Defense, LLC and LAC-DPU. Once task orders are agreed upon and signed by both parties, a purchase order will be issued to initiate the necessary tree trimming.
Alternatives
The Electric Utility requires tree trimming to maintain system reliability and public safety. Without the assistance of contractors, the system cannot be properly maintained.
Fiscal and Staff Impact
Typically DPU averages approximately $10,000 a month in tree trimming services or $120,000/year plus applicable GRT. The contract amount of $1 Million is above the $840,000 usage projection over the next seven years, however, this larger contract limit will allow for Community Services and Public Works to utilized this on-call contract for their tree removal needs. These departments will use their respective budgets that will make up the other portion of this contract limit. No additional staffing are needed and Electric Engineering staff will manage this on-call contract.
Attachments
A - AGR26-72_Southwest Fire Defense LLC