Description: AGENDAHED.JPG
  

Item No:                    5D.

 

Meeting Date:           March 25, 2013

 

From:                          Mike Thornton, Purchasing Manager for

                                    Paul Kalv, Electric Utility Director

 

Subject:                      Resolution authorizing execution of a Fixed Unit Price Agreement for annual tree trimming and line clearing services for the Electric Utility.

 

 


Staff Recommendation:

Staff recommends approval of the resolution authorizing execution of the Fixed Unit Price Agreement with Lewis Tree Service, Inc.  The Electric Utility budgets for this service annually.

 

Analysis:

The purpose of this solicitation is to contract with a qualified contractor to cut, clear and maintain the rights–of-way for the City of Leesburg’s Electric Department.  This includes manpower, equipment, supervision, repair/maintenance, trimming, herbicide and other requirements for tree trimming and right-of-way-clearing.  The work will consist primarily of the cutting and removal of brush, live and dead trees to provide suitable electrical and mechanical clearance between trees, power lines, utility equipment/apparatus and structures.  Work could occasionally include removal of complete trees and stump grinding.

 

The Electric Utility trims residential areas and street trees by bush hog mowing with a tree cutter generally every two years.  Some areas may be trimmed on a three year cycle, but every two years is more common.  “Danger tree” cutting is done on an average of a seven  to nine  year cycle.  The cycle is specific to each line depending on the right-of-way width, the line voltage, type of line construction, and type of easement.  A “danger tree” is any tree outside of the right of way that, if it should fall, could either come near the conductor or partially block the right of way. The City of Leesburg purchases the rights to address these “danger trees” when purchasing the right-of-way property.  The right to cut a “danger tree” does not give the City the right to own or remove the “danger tree” from the area.  Herbicides are used on a very limited basis.  The herbicide cycle is around five years. All herbicides are applied at low volumes with either a Radiarc sprayer or backpack sprayer.

 

The contracted vendor will have crews assigned to the City and work on trimming and line clearing on a continual basis throughout the year.  Assigned work areas are managed by the Electric Utility’s Contract Supervisor.
Prior Year Budget & Expenditures

Fiscal Year

Adopted Budget Amount

Actual Expenditure Amount*

2013

$650,000.00

$161,379.41 (Oct – Feb)

2012

$600,000.00

$503,016.00

2011

$500,000.00

$504,413.00

2010

$500,000.00

$532,980.00

* Expenditure amounts include costs for trimming parks and street trees.

 

Procurement Analysis:

On February 8, 2013 Invitation to Bid 130121 was issued inviting interested and qualified parties to submit a bid response.  The opportunity was advertised in both The Daily Commercial and Orlando Sentinel newspapers.  The bid was also posted to the on-line bid management system Public Purchase.

 

On February 28, 2013 the Purchasing Division received four bid responses. A summary of the total bid for core items is included below..  The detailed bid tabulation is attached for your review.

 

Company Name

Corporate Office

Total Bid Core Items

Lewis Tree Service, Inc.

West Henrietta, New York

$447,128.00

The Davey Tree Expert Company

Kent, Ohio

$590,652.38

Evergreen Tree Service

Dunedin, Florida

$632,968.00

ABC Professional Tree Services, Inc.

Webster, Texas

$740,280.00

 

Staff has reviewed all bids received and Lewis Tree Service, Inc. has submitted the lowest unit prices for the core items and is both responsive and responsible.  Lewis Tree Service, Inc. has been providing the City with Tree Trimming and Line Clearing services since September 11, 2000.  The City has been pleased with their performance and has no reason not to enter into a new agreement with the Contractor.

 

Unit prices bid by Lewis on the core items is lower than the current prices being paid under the last contracted.

 

Item Description

Current Price

New Price

Unit Savings

Estimated Item Savings

Hourly Crew

$84.56

$84.49

($0.07)

$140.00

Footage Crew

$0.78

$0.75

($0.03)

$8100.00

Supervisor

$28.41

$27.56

($0.85)

$1,700.00

Estimated Annual Savings

$9,940.00

 

The proposed Fixed Unit Price Agreement is for an initial term through September 30, 2018 and provides for an additional term.  Unit prices are fixed through September 30, 2014.  Price escalation based on the Producers Price Index (PPI) is permitted by request thereafter.

 

Local Vendor Preference was not applied as none of the four vendors qualified for the preference according to policy.

 

Options:

1.  Authorize execution of the Agreement with Lewis Tree Service, Inc.; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

The Electric Utility budgets annually for tree trimming costs.  For the 2013 fiscal year $650,000.00 is budgeted and there is $488,620.59 available.

 

Submission Date and Time:    3/21/2013 8:26 AM____

 

Department: _Electric Utility___________

Prepared by:  _Mike Thornton_________                     

Attachments:         Yes__X_   No ______

Advertised:  Yes__Not Required ______                     

Dates:   February 7, 2013____________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-1062-531.46-25__

 

Project No. __415931____________

 

WF No. _____WF0806721 / 001___

 

Budget  _____$650,000.00________

 

Available ____$488,620.59________


 

RESOLUTION NO._______________

 

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIXED UNIT PRICE AGREEMENT WITH LEWIS TREE SERVICE, INC. FOR TREE TRIMMING AND LINE CLEARING SERVICES FOR THE ELECTRIC UTILITY; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement with LEWIS TREE SERVICE, INC. whose address is 300 Lucius Gordon Drive, West Henrietta, New York 14586 for Tree Trimming and Line Clearing Services pursuant to Invitation to Bid 130121

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __25th___ day of __March___ 2013.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk