Submitted By: Lisa M. Crouthamel
presenter
Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve one-year contract renewal with Davey Resource Group for Electric Department tree trimming and line clearance services at an estimated cost of $2,500,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Trees are responsible for numerous electrical service interruptions, especially during storms. Ocala Electric Utility (OEU) implemented a three-year trimming cycle in 2007 wherein one-third of the OEU’s service area is completed annually. During the course of work, any hazardous trees near the power lines are removed and any tree limbs, which may interfere with power delivery, are trimmed.
FINDINGS AND CONCLUSIONS:
In 2018, Davey Resource Group was awarded the bid over two other companies. OEU would like to renew the contract for one additional year with an 8% cost increase which is in line with CPI-U. Davey will hold their renewal rate until the average price of diesel fuel reaches $5.25/gallon. If fuel increases beyond $5.25/gallon, Davey Resources will request an adjustment of 0.5% to each equipment classification for every $.025/gallon that fuel increases, reviewed, and adjusted monthly.
FISCAL IMPACT:
The funds for this project were approved in the FY2022 budget and will also be added to FY23 in account #457-032-231-531-53-34070 at an estimated cost of $2,500,000.
PROCUREMENT REVIEW:
This amendment has been reviewed and approved for compliance with the City’s procurement policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, Robert W. Batsel, Jr.
ALTERNATIVE:
Deny, Table, or Direct Staff Otherwise