HomeMy WebLinkAbout#8 On- Call Crane Services AGENDA ITEM #8
Public Utility District m
MEETING DATE: July 17, 2024
TO: Board of Directors
FROM: Keith Renshaw, Electric Engineering Manager
SUBJECT: Consideration of Executing a Contract for On-Call Crane Services
APPROVED BY.
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute an annual service contract with Bragg
Crane, Inc. for on-call crane services for the remainder of 2024, with the option to
extend for four additional years, for a not to exceed annual authorization of $125,000.
BACKGROUND:
District Code section 3.08.030 — Bid Procedure for Issuance of Service Contracts Over
$15,000
Estimated annual authorization requested: $125,000
The Electric Department utilizes third party contractors for on-call crane services
primarily to support the District's ongoing Vegetation Management Program (VMP).
Additionally, there have been instances over the years where Water or Electric
Department projects required crane services.
For the first time in 2021, the District began including on-call crane services as part of
the Annual Procurement package. At that time, staff identified that the need for crane
services would become more regular due to increased vegetation management efforts.
Changes to California Public Utilities Commission (CPUC) General Orders and Public
Resource Code pertaining to electric line clearances in close proximity vegetation
translated to more tree removals required of the District when compared to previous
versions of the District's VMP.
Historically, staff has presented annual procurements to the Board for consideration
and approval in the December timeframe, before the start of the next fiscal year.
Services procured under this action are routine and recurring in nature. Annual
procurement approvals provide efficiencies in streamlining administrative workloads
and avoiding delays when products and services are needed throughout the year.
Staff was unable to complete the public bid process for on-call crane services prior to
presenting the Annual Procurement package for Board consideration in late 2023. In
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January 2024 staff published a Request for Bids for on-call crane services and four
responses were received. Of the four respondents, one declined to bid and the
remaining three were deemed unresponsive.
ANALYSIS AND BODY:
In late May 2024, staff published a second Request for Bids for on-call crane services.
The second Request for Bids resulted in one responsive bid from Bragg Crane, Inc.
(Bragg). Bragg had been awarded the District's previous multi-year contract for on-call
crane services that started in 2021 and was extended for option years 2022 and 2023,
as allowed by the provisions of the 2021 Request for Bids.
Because of the Electric Department's ongoing need for crane services to support the
District's VMP, Staff recommends that the Board approves an annual Service Contract
for on-call crane services with Bragg Crane Inc. for the remainder of FY24. If approved,
this contract will be effective upon execution in July 2024 and ending December 31,
2024, with the option to extend the contract for four additional years (option years 2025,
2026, 2027, and 2028). For contract extension years, the contract period for on-call
crane services will begin on January 1 and end December 31 each year. The requested
annual authorization for on-call crane services is $125,000 for FY24, and $125,000 for
each option year.
This item is in support of the following objectives and goals identified by the District:
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
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.
District Code 1 .05.030 Goals:
1. Manage for Financial Stability and Resiliency
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
FISCAL IMPACT:
The 2021 to 2023 three-year average spent on crane services is $57,000, with a low of
$41,000 and high of $71,000.
The requested amount of$125,000 per year is conservative and includes contingencies
for both vegetation management and potential utilization in future capital projects.
The Board approved FY24-25 Budget allocates $2,000,000 for FY24, and $2,060,000
for FY25 for Right-of-Way Vegetation Management (G.L. 1 .6.583.00.514). On-call
crane services utilized for VMP work supplement the work done by District's primary
vegetation contractor, and the FY24-25 capital budget allocation are sufficient to cover
this item's cost.
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ATTACHMENTS:
None
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