06-21-2013 BPU RPT 14 - Laserfiche WebLink

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W A T E R E N E R G? :3w& RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: June 21, 2013 ITEM NO: 14 SUBJECT: FIRST AMENDMENT TO AGREEMENT WITH UTILITY TREE SERVICE INC. FOR LINE CLEARANCE TREE TRIMMING AND VEGETATION MANAGEMENT SERVICES ISSUE: The item for Board of Public Utilities consideration is approval for the First Amendment to the Agreement with Asplundh Tree Expert Co. (Utility Tree Service Inc.) for utility line clearance tree trimming and vegetation management services. RECOMMENDATION: That the Board of Public Utilities approve the First Amendment to the Agreement with Utility Tree Service Inc. for utility line clearance tree trimming and vegetation management services in an amount not -to- exceed $1,753,504, contingent upon final budget adoption by the City Council. BACKGROUND: Electric line clearance tree trimming is a vital function of the utility and required by California law in General Order 95, Rule 35. Utility Tree Service Inc. has been providing this service under contract since 2008 when the corporation was identified as Asplundh Tree Expert Co. To ensure the best possible services and pricing, the City issued a formal Request for Proposals for line clearance tree trimming services in September 2007. In March 2008, the proposal evaluation team consisting of staff from Public Utilities, Public Works and Finance Departments selected Asplundh Tree Expert Co. and negotiated a favorable agreement through June 30, 2013. The agreement included provisions to extend the term by mutual consent of the parties for a period not to exceed two additional years. Furthermore, due to corporate legal restructuring, Asplundh Tree Expert Co. wishes to assign its rights and obligations under the Agreement to Utility Tree Service, Inc. The line clearance staff assigned to the City work will remain unchanged. City staff from Public Works and Public Utilities met with the vendor to ensure continuity of service, and after reviewing with Legal, recommend assigning the Agreement to Utility Tree Service, Inc. Utility Tree Service Inc. has agreed to a one -year extension of the current agreement maintaining the existing terms and pricing as proposed in 2008. Based on their excellent performance and the fact they are holding pricing at current levels in this climate of volatile fuel costs, staff recommends authorizing a one -year extension from July 1, 2013 through June 30, 2014. FISCAL IMPACT: The total cost for the First Amendment to the Agreement will not exceed $1,753,504. Sufficient funds are included in the proposed Fiscal Year 2013 -14 Professional Services Account Nos. 6105000 - 421201 and 6105000- 421000.