HomeMy WebLinkAbout11 Consideration to Award a Contract for Intrusive Pole Inspection Serv FinalAGENDA ITEM #11
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MEETING DATE:April 7, 2021
TO:Board of Directors
FROM:Stephen Moore, Electric Operations Manager
SUBJECT:Consideration to Award a Contract for Wood Pole Inspection
Services
APPROVED BY______________________________
Joe Horvath P.E.,Electric Utility Director/Assistant General Manager
RECOMMENDATION:
Authorize the Interim General Manager to execute a contract with Osmose Utilities
Services, Inc.for Wood Pole Inspection Services, with an option to extend for up to two
additional years at the current contract terms and conditions,in the not to exceed amount
of $158,321 for FY21 and $200,000 annually for option years FY22 and FY23 for a total
contract amount not to exceed $558,321.
BACKGROUND:
Intrusive wood pole inspections are a requirement of California Public Utilities Commission
(CPUC)General Order 165 (GO 165). GO 165 states that “each utility subject to this
General Order shall conduct inspections of its distribution facilities, as necessary, to ensure
reliable, high-quality, and safe operation”. GO 165 requires intrusive inspection for all wood
poles that exceed 15 years in age or that have previously passed an intrusive pole
inspection.While the District is not regulated by the CPUC, all Public Owned Utilities
(POUs) in California voluntarily comply with GO 165.
In August,2001, the District awarded Intec Services,Inc. a three year contract to conduct a
W ood Pole Inspection Program. These services were extended through 2005 to complete
the inspection of all District wood poles.In 2005, a final report was provided to the District
which has been used by the Electric Engineering Department to evaluate and prioritize
wood pole replacements with the goal of meeting GO 165 requirements and improving
system reliability.
In January of this year,staff issued a Request for Proposals (RFP)to perform Wood Pole
Inspection Services to meet the requirements of GO 165.The RFP was posted in 12 plan
rooms and also sent to four qualified contractors identified by the Department of Industrial
Relations.The W ood Pole Inspection Program includes testing and treatment as
necessary,of the District’s 5,490 wood poles over a three year cycle, and includes the
following services to be performed:
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Inspection of approximately 1,673 poles in FY21 and 1,908 annually for FY22 and
FY23. Inspection includes performing visual, sound,and intrusive boring and
excavation of pole butt for inspections depending on the age and condition of the wood
pole;
Preservative treatment as necessary,including the application of fungicide and
insecticide chemicals approved by the State of California and the Environmental
Protection Agency for the preservation of wood poles; and
Documentation and reporting of all pole inspection and treatment activities provided to
the District in an electronic format.
Two proposals were received in response to the RFP. A staff committee of three members
was selected and a two-step process was used to review the proposals.Step one of the
review process focused solely on the technical requirements of the RFP while step two
considered only the cost portion of the proposals. The criteria considered during the review
process included:
Project Organization and Key Personnel (10%);
Experience and Technical Competence (15%);
Executive Summary of Proposed W ork (25%);
Proposed Project Schedule (5%);
Local Vendor (5%);
Exceptions to Contractual Arrangements (10%); and
Cost (30%).
The first proposal review of the technical criteria (excluding cost) resulted in the ranking
below:
Technical Scoring
Firm Rank
Osmose Utilities Services, Inc.1
Intec Services, Inc.2
The second proposal review considering cost only resulted in the ranking below:
Cost Scoring
Firm Rank
Osmose Utilities Services, Inc.1
Intec Services, Inc.2
An aggregate ranking of the technical and cost reviews was developed last resulting in the
final ranking below:
Overall Scoring
Firm Rank
Osmose Utilities Services, Inc.1
Intec Services, Inc.2
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Based on the final proposal ranking,staff found that the proposal from Osmose Utilities
Services, Inc.is the most advantageous to the District and recommends that the Board
considers award of a contract to Osmose Utilities Services Inc. for Wood Pole Inspection
Services for FY21, with an option to extend for two years.The proposed contract is
Attachment 1.
It is important to note that Osmose Utilities Services Inc. identified exceptions in their bid
regarding indemnity and insurance language. Staff worked with District Counsel and the
Bidder to come to an agreement on an acceptable modification for indemnity language
which was written and provided by District counsel. The Bidder was also agreeable to
retract their exception on insurance language.
The Board approved FY20 and FY21 budget included a total $203,000 for Pole Testing
Services. To date the District has spent $44,679 leaving a balance $158,321.Based on the
cost per pole for inspection, testing, and treatment from the recommended bidder, staff
believes that approximately 1,673 poles can be processed in FY21.Staff anticipates that
$181,000 will be required in FY22 and FY23 respectively to complete the inspections,
testing, and treatment of the remaining 3,817 District poles. Staff will include these
amounts in the upcoming proposed 2-year budget for Board review.
The planned schedule for this project is:
April 7, 2021 –Board Consideration of Approval
April 11, 2021 -Issue the Notice to Proceed
May 1, 2021 -Contractor mobilization
October 31, 2021 -90% completion of FY21 inspections
November 30, 2021 -100% completion of FY21 inspections
December 31, 2021 Reports received
This item is in support of the following objectives and goals identified by the District.
1.05.020 Objectives:
4.Provide Reliable and High quality electric supply and distribution system to meet current
and future needs.
6. Manage the District in an effective, efficient, and fiscally responsible manner.
1.05.030 Goals:
4.5 Provide effective and efficient maintenance and replacement programs.
6.1. Utilize modern, cost effective work methods and equipment.
FISCAL IMPACT:
The Board approved FY20 and FY21 budget included a total $203,000 for Pole Testing
Services, $100,000’20 and $103,000’21.To date the District has spent $44,679 leaving a
balance $158,321.Staff recommends Board approval of $158,321 to be expended in FY21
and the remainder of contract services to be performed in FY22 and FY23.
The overage of $55,321 in FY21 will reduce general fund balance in FY21,which was
$55,321 higher at 2020 year end, due to the under-spent pole testing in 2020.
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ATTACHMENTS:
1.Contract for Wood Pole Inspections Services