Title
Approval of Services Agreement No. AGR19-10 with Julian Herrera, dba Allied Tree Service and Fencing in the amount of $1,000,000.00, plus Applicable Gross Receipts Tax, for the Purpose of Electric Power Line Trimming
Recommended Action
I move that Council approve Services Agreement No. AGR19-10 with Julian Herrera, dba Allied Tree Service and Fencing in the amount of $1,000,000.00, plus applicable gross receipts tax, for the purpose of Electric Power Line Trimming
Utilities Manager Recommendation
Staff recommends that Council approve the agreement as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve the agreement as presented.
Body
The trimming and cutting of trees near and around energized power lines is a critical operation and maintenance (O&M) program for the department. Failure to clear trees from power line contacts can result in lengthy power outages and start/cause fires. The department trims and cuts trees near power lines for emergencies or during routine trouble calls. However, the tree trimming work load has become a 3 day, 6-9 month O&M effort; mostly due because the majority of the overhead power lines are within enclosed, customers’ back yards. In order to access the power line right-of-way (ROW), the tree trimming activities need to be closely coordinated with the customer including date(s) and time(s); thereby prolonging the work process.
Also and during the last few years, the department has seen an increase in trouble calls for 80 foot tall (or taller) trees outside of the power line ROW, but could topple onto the powerline under high wind conditions. These 80 foot trees need to be climbed near the top and methodically cut as the worker climbs down the tree. Climbing and cutting 80 foot tall (or taller) trees requires special training and climbing gear which our department staff is not specifically equipped nor trained to safely perform. Due to the increased work load and time required, it is more cost effective to contract the tree trimming work activities rather than utilize the department’s overhead maintenance crew. Also, the department’s overhead maintenance crew has other project deadlines and O&M priorities including pole and cross-arm replacement - which are other critical O&M power line activities. Finally, utilizing the department’s overhead maintenance crew to trim trees would require the department to subcontract the other overhead power line O&M which is 3-4 times more expensive than subcontracting for tree-trimming.
Alternatives
Council could choose not to approve the recommendation at which time the department would likely trim trees with in-house crews on a reactive basis as opposed to a preventive basis. In addition, the electric reliability would be affected.
Fiscal and Staff Impact
The department spent almost $120,000 for FY 2018 on tree-trimming and expects its tree-trimming budget to increase. The new contractor rates have gone up almost 25% since the last contract was awarded in 2015.This contract is for a term of 4 years, with expected expenditures of a maximum of $250,000 per year.
Attachments
A - AGR19-20