HomeMy WebLinkAbout7 Tree Trimming Contract7
CONSENT
To: Board of Directors
From: Joe Horvath
Date. August 01, 2018
Subject: Consideration of an Amendment to the Tree Trimming Contract
1. WHY THIS MATTER IS BEFORE THE BOARD
Board authorization is required for procurements in excess of $15,000.
2. HISTORY
The District has a responsibility to maintain vegetation so as not to threaten the safety
and integrity of electric facilities. The District's Vegetation Management Program is an
important part of the District's goal of delivering safe, reliable and cost-effective
electric service to its customers. There are approximately 135 miles of overhead
electric distribution facilities in the District's service territory, typically located along
street and road right-of-ways. The District performs vegetation management
operations annually to systematically clear vegetation from all overhead electric
facilities in conformance to State and Federal requirements.
The District awarded a contract for tree trimming services on December 7, 2016 to
Wright Tree Service in the amount of $267,000 for FY17, with an option to extend the
contract for up to two additional years. The Board extended the contract for FY18 on
December 6, 2017 and approved an increase to the contract amount for a total not to
exceed cost of $390,000,
On July 18, 2018 a workshop was presented to the Board to discuss important
changes to State regulations affecting tree trimming operations. The State has
increased the minimum clearance requirement at time of trimming from 6.5 feet to 12
feet, a very significant change. Therefore, starting this year, the District directed the
tree trimming contractor to perform trimming operations necessary to achieve the 12
feet of clearance in conformance to the new requirement.
3. NEW INFORMATION
The District performs vegetation management operations annually to clear vegetation
from all overhead electric facilities on a five-year cycle. The increase to State
mandated trimming requirements has resulted in a subsequent increase in the amount
of labor and costs necessary to perform trimming operations on a given section of
overhead facilities. The District has expended more than 80 percent of the FY18
budget year to date on tree trimming operations. The greater amount of trimming
required has necessitated a corresponding need to increase the contract limit for tree
trimming operations. Staff estimates a total contract amount of $700,000 will be
required this year to maintain trimming operations on the five year cycle.
4. FISCAL IMPACT
Sufficient funds exist in the Board Adopted Electric Utility's FY18 budget for this
proposed increase to the existing contract.
5. RECOMMENDATION
Authorize the General Manager to execute an amendment with Wright Tree Service
increasing the contract amount for FY18 from $390,000 to an amount not to exceed
$700,000.
L
Joe Horvath
Electric Utility Director
� 01W
Michael D. Holley
General Manager