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HomeMy WebLinkAboutA001 - Council Action Form dated June 24, 2025ITEM #:25 DATE:06-24-25 DEPT:ELEC SUBJECT:ELECTRIC DISTRIBUTION LINE CLEARANCE PROGRAM CONTRACT RENEWAL COUNCIL ACTION FORM BACKGROUND: The Electric Services Line Clearance Program addresses the tree trimming and removal necessary to provide reliable and safe electrical service. Trees are proactively trimmed to maintain safe clearance from electric lines and are safely removed in coordination with Electric Services staff in instances where they have fallen onto lines. On June 14, 2022, City Council awarded a contract to Wright Tree Service, Des Moines, IA, for these tree trimming services. This contract contained the option to renew the contract for four additional one-year periods. The period from July 1, 2025 through June 30, 2026 is the third renewal period. The bid from Wright Tree Service originally awarded in 2022 did not contain the customary fixed price or percentage increases for future optional renewals. Instead, Wright Tree Service proposed a discussion with City staff prior to each renewal to come to an agreeable contract price. Staff has conferred with the vendor and it has been determined that pricing reflecting a 2.5% increase for FY 2025/26 is mutually acceptable. Attachment 1 contains pricing information with a comparison of FY 2024/25 rates and proposed FY 2025/26 rates. The benefits of having a contact for these services in place include the following: Consistency of work and quality from a single contractor Reduction in the City’s exposure to market forces regarding prices and availability for labor and travel Saved City staff time obtaining quotes, evaluating bids, and preparing specifications and other procurement documentation. The approved FY 2025/26 operating budget includes $457,750 for this program. Staff estimates the total cost of the contract to be approximately $464,000, including 7% sales tax. However, the actual amount paid will depend on the amount of line clearance services required. Expenses will first be charged to the available $457,750 in the line clearance budget. Should the cost of necessary services surpass that amount, the remaining $6,250 will be financed with funds from the Overhead Line Maintenance account. Services provided under this contract are monitored by Electric Services staff to ensure all expenditures are appropriate and in accordance with the approved scope and funding. Invoices are paid based on bid unit prices and for services received and accepted by the City. City staff has been satisfied with Wright Tree Service’s performance in the prior years of the contract and recommends renewal of the contract. 1 ALTERNATIVES: 1. Approve the following: a. Contract renewal for Electric Distribution Line Clearance Program with Wright Tree Services, Des Moines, IA, for the for the one-year period from July 1, 2025 through June 30, 2026, in an amount not-to-exceed $464,000. b. A performance and payment bond in the amount of $464,000. 2. Do not renew the contract and instruct staff to rebid these services. CITY MANAGER'S RECOMMENDED ACTION: An ongoing tree trimming program helps mitigate the number of customer interruptions resulting from extreme weather events. Having a yearly contract establishes a fixed price for performance of the required tree trimming services at an acceptable price. It has proven to be cost-effective to have a company under contract to provide these services. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as stated above. ATTACHMENT(S): Attachment 1 - 2022-115 FY2026 Price Comparison.xlsx 2 Attachment 1 CITY OF AMES, IOWA LINE CLEARANCE PROGRAM FY 2025-2026 LABOR DESCRIPTION STRAIGHT TIME TIME & ONE- HALF STRAIGHT TIME TIME & ONE- HALF Working Foreman $48.85 $65.39 $50.11 $68.15 Trimmer A $44.46 $59.38 $45.60 $62.01 Trimmer B $38.45 $51.56 $39.41 $53.60 Trimmer C $36.52 $48.51 $37.42 $50.90 Trimmer D $34.61 $45.90 $35.46 $48.23 Ground Person $29.94 $39.52 $30.67 $41.72 Line Permitter $44.46 $59.38 $45.60 $62.01 EQUIPMENT DESCRIPTION Hydraulic aerial device Manual aerial device Chip truck Brush Tractor Truck&Trailer for Brush trac. Hydro Axe Truck&Trailer for Hydro Axe. Pick-up Truck Power saw Brush Chipper Hand pruning equip. Ropes and body belts MATERIALS & SUPPLIES Weedone CB Banvel CST per gal Garlon 4 per gal Tree Paint: Maintain A per case of 12 13 0z.cans Other supplies Cost plus % $0.58 n/a $46.70 $100.32 10% $5.76 included w/ truck included w/ truck BID PRICE n/a $18.52 $18.81 $72.67 $19.97 $11.77 $18.52 $11.52 $76.36 FY2024-25 Wright Tree Service, Inc. West Des Moines, IA HOURLY RATE RATE PER CREW HOUR $18.52 $18.52 $11.52 $76.36 FY2025-26 Wright Tree Service, Inc. West Des Moines, IA HOURLY RATE RATE PER CREW HOUR $18.81 $72.67 $19.97 $11.77 $0.58 $5.76 included w/ truck $100.32 10% included w/ truck BID PRICE n/a n/a $46.70 3