Title
Contract for Electric Distribution Line Clearance, Tree Trimming, Right-of-Way Maintenance, Weed Control and Related Work (B)
Explanation
The utility’s electric transmission and distribution systems require periodic line clearance, tree trimming, right-of-way maintenance, weed control and related services. Approximately 600 distribution system and 125 transmission system miles of line are maintained in accordance with American National Standards Institute’s (ANSI) arboricultural standards. In addition, the North American Reliability Corporation (NERC) has established stringent line clearance maintenance standards that must be adhered to. The purpose of this contract is to enhance system reliability, heighten customer satisfaction, promote safety and comply with federal regulation in a cost effective manner while preserving the aesthetic qualities of the tree canopy.
In addition to routine maintenance, this contract provides the utility with access to emergency response resources as required in major system restoration efforts. Asplundh has the capability to supplement local crews with resources from regions throughout the country. The availability of such additional resources was critical to the utility’s restoration efforts following the 2017 hurricane season.
This contract is subject to the Living Wage Ordinance and the wages paid to the Contractor’s employees reflect the current rates established by the U.S. Department of Health and Human Services. Wages may be adjusted annually to maintain compliance with this ordinance. Any fiscal impact is reported to the City Commission on an annual basis.
An Invitation to Bid for these services was sent by Utilities Purchasing to 201 prospective bidders, with 2 responding. This was an evaluated bid. Bidders were first evaluated based on established minimum requirements which included the qualifications and references of the business, staff training and certification, and an emergency response and mobilization plan. The bid pricing from the companies that met the minimum qualifications were then given to the evaluators. Asplundh Tree Expert Company provided the lowest bid and is being recommended for award of the contract.
Our current contract for these services expires on September 30, 2019. The new contract, starting on October 1, 2019, will be for three years with an option for a two year renewal.
Due to the cancellation of the September 19, 2019 City Commission meeting, staff will not have another opportunity to present to the City Commission before the contract expires so we will not present it to the UAB for their advice.
Fiscal Note
GRU budgeted $2,303,259 in its FY2020 budget based on the cost of the current contract. However, the two responsive bids came in significantly higher than anticipated, with the annual cost of this contract to be approximately $3,034,400. An additional $731,141 is required to provide the same level of service provided in the current contract. The shortfall will be funded from savings within GRU’s Electric T&D operations and maintenance budget or through potential rate increases in FY2021.
Recommendation
The City Commission: 1) authorize the General Manager, or his designee, to execute a three-year contract with Asplundh Tree Expert Company, subject to the approval of the City Attorney as to form and legality; and 2) approve the issuance of a purchase orders in not-to-exceed budgeted amounts for these services for each year of the contract, subject to the final appropriation of funds for each year.