AGENDA ITEM #13

June 12,2012

Public Hearing

MEMORANDUM

June 8, 2012

TO:

FROM:

County Council

Amanda Mihill, Legislative

Attorne~vLl~

~Michael

Faden, Senior Legislative Attorney

SUBJECT:

Public Hearing:

Bill 16-12, Trees - Utility Vegetation Management

Bill 16-12, Trees - Utility Vegetation Management, sponsored by Council President Berliner and

Councilmember EIrich, is scheduled was introduced on April 17, 2012. A Transportation,

Infrastructure, Energy and Environment Committee worksession is tentatively scheduled for

June 21,2012 at 2:00 p.m.

Bill 16-12 would:

(1)

require certain utilities to submit a vegetation management plan to the County;

(2)

require certain utilities to provide notice to certain property owners before

conducting vegetation management activities;

(3)

require certain utilities to obtain consent from certain property owners before

conducting vegetation management activities;

(4)

require the County Executive to issue implementing regulations;

(5)

require the County Executive to set a fee for certain purposes; and

(6)

generally amend County law regarding utility vegetation management.

The Maryland Public Service Commission (PSC), as required by State law, developed service

quality and reliability standards for the delivery of electricity to customers. Final regulations

have been issued (see excerpts on ©8). These regulations provide, in part, that the PSC

standards apply to the extent not limited by law or regulation of any unit of local government.

This packet contains:

Bill 16-12

Legislative Request Report

COMAR Excerpts

Fiscal and Economic Impact Statements

Circle

#

1

7

8

15

F:\LAW\BILLS\12l6 Trees-Utility Vegetation Mgmt\Public Hearing 'Vlemo.Doc



Bill No.

16-12

Concerning: Trees - Utility Vegetation

_ _.._ __

Management

Revised: 411112012

Draft No. 8

Introduced:

April

17'J..,-,=2.::::..01~2::......-

_ __

Expires:

October 17,2013

Enacted:

_~

_ _ _ _ _ _ __

Executive: _ _ _ _ _ _ _ _ _ __

Effective: _ _ _ _ _ _ __

Sunset Date: None

Ch. _ _, Laws of Mont. Co. _ _ __

COUNTY COUNCIL

FOR MONTGOMERY COUNTY, MARYLAND

By: Council President Berliner and Councilmember EIrich

AN

ACT to:

(1)

(2)

(3)

(4)

(5)

(6)

require certain utilities to submit a vegetation management plan to the County;

require certain utilities to provide notice to certain property owners before

conducting vegetation management activities;

require certain utilities to obtain consent from certain property owners before

conducting vegetation management activities;

require the County Executive to issue implementing regulations;

require the County Executive to set a fee for certain purposes; and

generally amend County law regarding utility vegetation management.

By adding

Montgomery County Code

'Chapter 55A, Trees

Article I, Utility Vegetation Management

Sections 55A-I to 55A-8

Boldface

Underlining

[Single boldface brackets]

Double undec!l!Jlog

[[Double boldface brackets]]

* * *

Heading or defined term.

Added to existing law by original bill.

Deleted from existing law by original bill.

Added by amendment.

Deleted from existing law or the bill by amendment.

Existing law unaffected by bill.

The County Council for lviontgomery County, Maryland approves the following Act:



BILL

No. 16-12

1

2

3

4

Sec.

1.

Article I of Chapter 55A is added as follows:

Chapter 55A. [Reserved] Trees.

ARTICLE I. Utility Vegetation Management.

55A-1. Definitions.

5

In this Section the following words have the meanings indicated:

6

7

8

ANSI standards

means the vegetation management standards described in

ANSI A300, developed .Qy the American National Standards Institute, or any

successor standard.

9

10

11

12

13

Department

means the Department of Transportation.

Director

means the Director of the Department or the Director's designee.

Tree

means

£!

plant that has woody stem or

trunk

that is at least

Q

inches in

diameter at breast height.

Hazardous tree

means

£!

tree that poses an imminent hazard to any utility's

system reliability.

14

15

16

Utility

means

£!

utility company doing business in the County, and includes

£!

contractor or other person directed or controlled .Qy that utility.

55A-2. Applicability.

17

18

19

Except in Section 55A-6(b) or with respect to any tree located in

£!

County

right-of-way, this Article does not

~

to any tree located in

£!

utility's deeded right-

of-way or

publi~

20

21

22

23

24

25

26

utility easement where the utility is authorized to perform

vegetation management activities.

55A-3. Vegetation management plan required.

(ill

Each utility must give the Chief of Tree Maintenance in the Department

£!

£QPY

of any vegetation management plan, and any amendment to that

plan, submitted to the Maryland Public Service Commission within 30

days after the plan or amendment is submitted to the Commission, but

before starting vegetation management activities.

If

£!

utility does

27

@-

f:\law\bills\1216 trees-utility vegetation mgmt\bill 8.doc



BILL

No.

16-12

28

29

30

31

32

regularly scheduled and planned vegetation management but is not

required to submit

£:

vegetation management plan to the Commission,

the utility must submit

£:

plan to the Department.

ilil

The vegetation management plan sent to the County, to the extent not

otherwise required under state law, must describe the following

activitie~

conducted.Qy

33

34

35

36

37

38

that utility:

ill

tree pruning and removal, identified .Qy street name;

vegetation management around poles, substations, and energized

overhead electric plant;

ill

ill

manual, mechanical, or chemical vegetation management along

rights-of-way;

39

40

41

42

ill

ill

(Q)

inspection of each area where vegetation management

performed after the vegetation management;

cultural control practices;

public education regarding vege@tion management practices;

IS

43

44

45

ill

ill

(2)

public and customer notice of planned vegetation management

activities;

debris management during routine vegetation management and

outage restoration efforts; and

independent quality assurance measures.

46

47

48

49

55A-4. Vegetation management practices.

ill

Each utility must conduct vegetation management in accordance with:

50

51

52

53

ill

its vegetation management plan; and

either the most curren! ANSI stan<.lards or alternative vegetation

management standards that

the ANSI standards.

th~

ill

Director finds are equivalent to

G)

f:\law\bills\1216 trees-utility vegetation mgmt\bill 8.doc



BILL NO. 16-12

54

55

56

57

58

(hl

Each utility that removes

§:

tree must

grig4

the stump of the removed

tree and fill in any resulting hole.

W

Each utility must remove any debris from

§:

vegetation management

activity, such as branches, leaves, chips, vines, and logs from the right­

of-way.

55A-5. Public notice of vegetation management; consent.

(ill

Before performing any vegetation management, each utility must make

§:

59

60

61

62

reasonable attempt to notify the owner or occupant of any property on

where vegetation management will be performed.

(hl

The notice required

Qy

this subsection must include

§:

63

64

65

66

"customer bill of

rights", approved

Qy

the Office of Consumer Protection, that specifies

the rights and obligations ofthe property owner and the utility regarding

vegetation management.

67

W

The utility must deliver this notice

Qy

direct mail, door hanger, or

another written method approved

Qy

the Department. A utility may use

more than one method to deliver this notice. This notice must not be

delivered only

Qy

§:

bill insert.

68

69

70

71

@

Before performing any vegetation management activity on

§:

property,

72

73

the utility must obtain the written consent of the owner or occupant of

that property.

55A-6. Specific Circumstances.

(ill

Hazardous trees.

74

75

76

ill

If

§:

utility finds that

§:

tree poses an imminent hazard to its system

reliability, before removing the tree or performing any other

vegetation management activity on that tree the utility must make

reasonable attempts to obtain the consent of the owner or

occupant of the property where the tree is located.

77

78

79

80

o

f:\law\bills\1216 trees-utility vegetation mgmt\biIlB.doc



BILL

No. 16-12

81

82

ill

If the utility cannot obtain the consent of the property owner or

occupant, the utility may ask the Chief of Tree Maintenance in

the Department to inspect the tree.

If the Chief of Tree

83

84

Maintenance finds, after inspecting the tree, that the tree poses an

imminent hazard to the utility's system reliability, the Chief may

direct the utility to remove the tree without obtaining the consent

of the owner or occupant.

85

86

87

88

89

90

91 .

92

93

{hl

Trees along rural and rustic roads.

ill

Except as provided in paragraph

.G1

£l:

utility must not remove

any tree along

£l:

rural and rustic road that is:

(A)

ill}

in

the public

ri&h!

of way; or

within 35 feet of the center line, even if the tree is on

private property.

94

95

ill

A utility may remove

£l:

tree along

£l:

rural and rustic road if the

utility submits an application to the County Chief of Tree

Maintenance and the Chief approves the £l:PPlication. If the Chief

does not respond to the application within 45 days, the

application is approved.

96

97

98

99

100

(£}

Trees in

Q

historic district.

ill

Except as provided in paragraph

.G1

£l:

utility must not remove

£l:

tree in

£l:

historic district if the tree is identified as

£l:

character­

defining feature in the district and is:

(A)

ill}

101

102

103

104

in the public

ri&h!

of way; or

within 35 feet of the center line, even if the tree is on

private property.

105

106

ill

A utility may remove

£l:

tree that is described as

£l:

character­

defining feature in

£l:

historic district if the utility submits an

107

®

f:\lawlbills\1216 trees-utility vegetation mgmt\biIlB.doc



BILL

No.

16-12

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

application to the County Chief of Tree Maintenance and the

Chief approves the application. If the Chief does not respond to

the application within 45 days, the application is approved.

55A-7. Violations

Complaint.

If

~

person believes

~

utility has violated or is about to

~

violate this Section, the person may file

complaint with the

Department in writing, in person, or electronically. The Department

must investigate the complaint within

~

reasonable time and notify the

~

complainant and the utility in writing or electronically whether

violation has occurred

or the utility must take.

(Q)

Violation.

A violation of this Article is

~

Class A violation.

and~

if

~

what action the Department will take

55A-8. Regulations and fees.

llU

Regulations.

The County Executive must adopt regulations under

to

~

method

ill

this Article. Those regulations must include

~

process for the Department to . review the utility's vegetation

management activities to assure quality control and adherence to each

applicable plan.

(Q)

Fee.

The Executive,

Qy

regulation adopted under method

Q1

must set

one or more fees to cover the costs of administering this Article.

Approved:

128

129

Roger Berliner, President, County Council

Date

130

Approved:

131

Isiah Leggett, County Executive

Date

f:\law\bills\1216 trees-utility vegetation mgmt\billB.doc



LEGISLATIVE REQUEST REPORT

Trees

DESCRIPTION:

Bill 16-12

Utility Vegetation Management

Bill 16-12 would require certain utilities to submit a vegetation

management plan to the County; require certain utilities to provide

notice to certain property owners before conducting vegetation

management activities; and require certain utilities to obtain consent

from certain property owners before conducting vegetation

management activities.

Vegetation management has been a serious concern for many County

residents. The Council has received numerous complaints that trees

have been too aggressively trimmed. Additionally, Pepco has stated

that there are instances where they need to work on private property

but homeowners are preventing them from doing so thus endangering

the vitality of the electrical system.

To provide protection for the County's tree canopy while providing

an opportunity for utilities to perform necessary vegetation

management activities.

Department of Permitting Services

To be requested.

To be requested.

To be requested.

To be researched.

Amanda MihiIl, Legislative Attorney, 240-777-7815

To be researched.

PROBLEM:

GOALS AND

OBJECTIVES:

COORDINATION:

FISCAL IMPACT:

ECONOMIC

IMPACT:

EVALUATION:

EXPERIENCE

ELSEWHERE:

SOURCE OF

INFORMATION:

APPLICATION

WITHIN

MUNICIPALITIES:

PENALTIES:

Class A.

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Page 1 of7

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20.50.12.09

.09 Vegetation Management Requirements.

A. Intent and Scope.

(I)

It

is the intent of the Commission that a utility engage in vegetation management programs that are necessary and appropriate

to maintain safety and electric system reliability.

(2) The standards set forth in this regulation shall constitute minimum vegetation management requirements applicable to utilities

in the State, and are not intended to supersede or prohibit a utility's implementation of more aggressive vegetation management

standards and practices.

(3) The vegetation management requirements in this chapter apply to the extent not limited by contract rights, property rights, or

any controlling law or regulation of any unit of State or local government.

(4) This regulation applies to any electric transmission plant not regulated by the Federal Energy Regulatory Commission.

B.

Technical Standards for Vegetation Management.

(I) Each utility shall ensure that vegetation management conducted on its energized plant is performed in accordance with the

standards applicable to Maryland Licensed Tree Experts, which are incorporated by reference under COMAR 08.07.07.02.

(2) Each utility's vegetation management program shall address, at a minimum, all of the following activities:

(a) Tree pruning and removal;

(b) Vegetation management around poles, substations, and energized overhead electric plant;

(c) Manual, mechanical, or chemical vegetation management along rights-of-way;

(d) Inspection of areas where vegetation management is performed after the vegetation management;

(e) Cultural control practices;

(f)

Public education regarding vegetation management practices;

(g) Public and customer notice of planned. vegetation management activities; and

(h) Debris management during routine vegetation management and during outage restoration efforts.

(3) Each utility shall develop its own vegetation management program, which shall be consistent with this regulation. In

developing the program, a utility shall conduct its vegetation management and determine the extent and priority of vegetation

management to be performed at a particular site based on these factors:

(a) The extent of the potential for vegetation to interfere with poles, substations, and energized overhead electric plant;

(b) The voltage of the affected energized conductor, with higher voltages requiring larger clearances;

(c) The relative importance of the affected energized conductor in maintaining safety and reliability;

(d) The type of conductors and type of overhead construction;

(e) The likely regrowth rate for each species of vegetation at the site;

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6/7/2012



Page 2

01"7

(1)

The potential movement of energized conductors and vegetation during various weather conditions;

(g) The utility's legal rights to access the area where vegetation management is to be performed;

(h) The maturity of the vegetation;

(i)

The identification of the structural condition of the vegetation, including the characteristics of a species as one having a high

probability of causing a service interruption during weather events;

G)

State and local statutes, regulations, or ordinances affecting utility performance of vegetation management;

(k) Customer acceptance of the proposed vegetation management where the utility does not have legal rights to perform

vegetation management; and

(1)

Any other appropriate factor approved by the Commission.

(4) Each utility shall file a copy of its vegetation management program with the Commission within 90 days of the effective date

of this regulation. If a utility makes a change in its vegetation management program, the utility shall file a copy of the change with the

Commission no later than 30 days prior to implementing the change, unless exigent circumstances warrant implementation without

prior notice, in which case the change shall be filed by no later than 30 days after implementation.

C. Training, Record Keeping, and Reporting.

(I)

Each utility shall adopt standards, to the extent not covered by other existing law, to be used by all persons who perform

vegetation management for the utility, whether employees or contractors, for the proper care of trees and other woody plants,

including safety practices and line clearance techniques.

(2) The utility shall monitor and document scheduled vegetation management and related activities the utility or its contractor

performs. Documentation shall include, but is not limited to:

(a) Identification of each circuit or substation or, if applicable, both circuit and substation where vegetation management was

performed;

(b)

The type of vegetation management performed including removal, trimming, and spraying and methods used;

(c) The name of the Maryland Licensed Tree Expert responsible for oversight of vegetation management at the circuit or

substation level;

(d) The approximate date of activity;

(e) Any occurrence resulting in serious injury to a person as a result of vegetation management activities; and

(1)

When a utility seeks to remove a tree or limb, but is unable to do so because permission or cooperation is not obtained.

(3) Each utility shall include a summary of the information required under §C(2) of this regulation about its vegetation

management during the preceding calendar year, and shall describe vegetation management planned for the current calendar year, as

part of the annual performance report required to be filed with the Commission under Regulation .II of this chapter. The annual

performance report also shall include:

(a) Expenditures for vegetation management in the preceding calendar year;

(b) Vegetation management budget for the current calendar year;

(c) Circuits or substations, completion dates, and the estimated number of overhead circuit miles trimmed in the preceding

calendar year in compliance with the cyclical vegetation management requirements set forth under §F of this regulation;

(d) Circuits or substations and the estimated number of overhead circuit miles scheduled for the current calendar year in

compliance with the cyclical vegetation management requirements set forth under §F of this regulation;

(!j)

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61712012



Page 3 af7

(e) Total overhead circuit miles for the system; and

(t)

If applicable, a corrective action plan, preferably in its annual performance report or, if necessary, in the supplemental

annual performance report.

(4) Each utility shall report its own violation of this chapter to the Commission within 60 days of discovery and include its plan

for correcting each violation.

D. Public Notice of Planned Vegetation Management.

(I) Each utility shall make a reasonable attempt to notify an owner or occupant of all properties upon which cyclical, planned

vegetation management is to be performed. This requirement will be satisfied if the utility provides notice to affected property owners

or occupants at least 7 days, but not more than 120 days, prior to performing cyclical, planned vegetation management activity. Notice

shall be provided by direct mailing, door hanger, postcard, personal contact, or a different method if approved by the Commission, but

may not be made solely by bill insert. Nothing in this regulation prohibits a utility from using more than one of these methods.

(2) Each utility or its contractor shall provide written notice of any cyclical, planned vegetation management activities to a

primary contact for each county and municipality affected at least 2 months before commencing the activities unless the county or

municipality notifies the utility that written notification is not required.

E. Outreach Programs.

(I) Each utility shall conduct an annual public education program to inform its customers, as well as a primary contact for each

county and municipality in the utility's service territory, of the importance of vegetation management, and of the utility's role and

responsibility in managing vegetation near electric lines, poles, and substations.

(2) The public education program required under this section shall be implemented by direct mail, bill inserts, or a different

method if approved by the Commission.

(3) Each utility shall post its vegetation management public education materials on its website.

F. Specific Requirements. Each utility shall perform vegetation management based on the following schedule:

(I)

Initially beginning on January 1 ofthe year immediately following the effective date of this regulation, a utility on a 4-year

trim cycle shall within:

(a) 12 months perform vegetation management on not Jess than 15 percent of its total distribution miles;

(b) 24 months perform vegetation management on not less than 40 percent of its total distribution miles;

(c) 36 months perform vegetation management on not less than 70 percent of its total distribution miles; and

(d) 4 years perform vegetation management on not less than 100 percent of its total distribution miles.

(2) Initially beginning on Januaryl of the year immediately following the effective date of this regulation, a utility on a 5-year

trim cycle shall within:

(a) 12 months perform vegetation management on not less than 12 percent of its total distribution miles;

(b) 24 months perform vegetation management on not less than 32 percent of its total distribution miles;

(c) 36 months perform vegetation management on not less than 56 percent of its total distribution miles;

(d) 48 months perform vegetation management on not less than 75 percent of its total distribution miles; and

(e) 5 years perform vegetation management on not less than 100 percent of its total distribution miles.

(3) Each utility shall follow the vegetation management performance requirement under §F( I) or (2) of this regulation for each

subsequent trim cycle.

<!..::/

10'

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61712012



Page 4 of7

G. Vegetation management shall be perfonned based on the factors set forth under §B(3) of this regulation. The following minimum

clearances shall be obtained at the time vegetation management is conducted to the extent not limited by contract rights, property

rights or other controlling legal authority:

(I) Horizontal clearances:

(a) Greater than 34.5 kV: The clearance from the conductors shall

be

the greater of 15 feet or 4 years' growth ifusing a 4-year

trim cycle (or 5 years' growth if using a 5-year trim cycle). Horizontal clearance beneath the conductors shall be measured radially.

(b) From 14 kV to 34.5 kV: The clearance from the conductors shall be the greater of 10 feet or 4 years' growth if using a 4­

year trim cycle (or 5 years' growth if using a 5-year trim cycle). Horizontal clearance beneath the conductors shall be measured

radially.

F

i/;i."n

No. ):

From H "V tv J4.5 kV

lil'ri!::s --(1'1<1r

Ar.<J""~

.

(c) Less than 14 kV but at least 600 volts: The clearance from the conductors shall be 4 years' growt

h

I

' f '

a

4

-year trIm

usmg

/fil

C!/

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617/2012



Page 5 of7

cycle (or 5 years' growth if using a 5·year trim cycle). Horizontal clearance beneath the conductors shall be measured radially.

Figure No. 3:

.~

141(1/, but

at

Least 600 Volts

Substati.)nto

First

Protective Device

Multiple Open Wir",s on Cross-Arm and Annles5 Construction

No

Overhanging

Umbs-

O",ar Abov!!!

(Also applieHo a conductor b!l!tv,>Hm 14 h.V cmd 34.S IN

operated only

a~a

distribution

f ..

ed..

~

__

~~

4

1»

5

,,>..

~.~~._~

Pod"IC"."

0<"

CIr:.ra n;;:oe:::;

;£bie,'cd

.:iIt

tinlC

of

tr"'nfni~

Ih.wiRS

riot

To Sc."

(d) For a conductor with a voltage from 14 kV to 34.5 kV which is operated only as a distribution feeder, the horizontal

clearance shall be as set forth under §G(J)(c) of this regulation as ifits voltage were less than 14 kV but at least 600 volts.

(e) The horizontal clearances are the minimum clearances the utility shall establish during each cyclical planned vegetation

management trim cycle.

(2) Vertical clearances:

(a) Greater than 34.5 kV: The vertical clearance above the conductors shall be established by removing all overhanging limbs

within the maximum horizontal clearance zone specified under §G{l)(a) of this regulation. The vertical clearance below the

conductors shall be the greater of 15 feet or 4 years' growth (or 5 years' growth ifusing a 5-year trim cycle). The vertical clearance

below the conductors shall be measured radially. See Figure No. I

(b) From 14 kV to 34.5 kV: The vertical clearance above the conductors shall be estabtished by removing all overhanging

limbs above the conductors within the horizontal clearance zone specified under §G(l)(b) of this Regulation. The vertical clearance

below the conductors shall be the greater of 10 feet or 4 years' growth (or 5 years' growth ifusing a 5-year trim cycle). The vertical

clearance below the conductors shall be measured radially. See Figure No.2.

(c) Less than 14 k V but at least 600 volts:

(i) Multiple open wires on a cross-ann or annless construction from the substation to the first protective device: The vertical

clearance above the conductors shall be established by removing all overhanging limbs above the conductors within the horizontal

clearance zone specified under §G(J)(c) of this regulation. The vertical clearance below the conductors shall be 4 years' growth (or 5

years' growth if using a 5-year trim cycle). The vertical clearance below the conductors shall be measured radially. See Figure 3.

(ii) Except as provided in §G(2)(c)(i) for multiple open wires on a cross-ann or annless construction, the vertical clearance

above the conductors shall be 15 feet. The vertical clearance below the conductors shall be 4 years' growth (or 5 years' growth if

using a 5-year trim cycle). The vertical clearances above and below the conductor shall be measured radially.

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617/2012



Page 6 of7

figllre

No,. 4: <14 kV, but

at

Least: 600 Volts

k~tipk: Op::f1J.V;~$

..:-,nCrot:S-;"m1

&1'1\1

;'!mt:;s:Cc~tru:'tbr.

\~IWaR)'"

D. aOOldtct:/lIlet>>>!U U

Iig'

a1(13t.5 t.V

q)elatkd OIl{

~

a dt1rlllllOl :!lH!!

t­

(;10:";0

ACe< •

chi".,,"'"

;ll:t

tin:.e

of,trili1t11i~

(iii) Spacer cable, tree wire with messenger cable above, aerial cable, and single-phase: The vertical clearance above the

conductors shall be 6 feet. The vertical clearance below the conductors shall be 4 years' growth (or 5 years' growth if using a 5-year

trim cycle). The vertical clearance above and beneath the conductors shall be measured radially.

Figure NO.5:

<

14 kV, but

at

Least 600

\iolts

Sp;l'" ,Coble, ,...iolC.I>'" 4.8>110.. w,'M"",,,aS"r,Si"s'" Ph..,

\,A,lwan'l!!~

b

"GOldlcnl~11lIOel

U

~V

illd

"HZ

~vo~

rato.:1

(vi

Clear;;

ACI::

;:achieved

OIIt

ti1r't= oft"

m,n'"n;

x.1e

l)

D'p.'

ih;'

",,1 To

(d) For a conductor with a voltage from 14 kV to

34.S

kV which is operated only as a distribution feeder, the vertical clearance

shall be as set forth in the corresponding standard contained in §G(2)( c) of this regulation as if its voltage were less than 14 k V but at

least 600 volts.

(e) The vertical clearances are the minimum clearances the utility shall establish during each cyclical planned vegetation

management trim cycle.

@

(3) Mature trees may be exempt from the minimum clearance requirements specified above at the utility's reasonable discretion

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6/7/2012



Page

7 01'7

for voltage levels at 34.5 kV and below

H. Federal Energy Regulatory Commission Jurisdictional Transmission Plant. Each utility shall file with the Commission's

Engineering Division a copy of all vegetation management related filings associated with a transmission line in Maryland to the

Federal Energy Regulatory Commission or an entity approved by the Federal Energy Regulatory Commission.

If

the information is

confidential or critical energy infrastructure information, the utility shall advise the Commission's Engineering Division in writing and

make the information available for review at a mutually agreeable time and location.

http://www.dsd.state.md.us/comarigetfile.aspx?file=20.50.12.09.htm

6/7/2012



ROCKVILLE, MARYLAND

MEMORANDUM

May

9, 2012

TO:

FROM:

Roger Berliner, President, County Council

Jennifer

A.

Hughes, Director, Office of

Management

and

Joseph F.

Beac~

Director, Department

ofFinanc~

Bill 16-12 Trees- Utility Vegetation Management

Bud~

SUBJECT:

Attached please find the fiscal and economic impact statements for the above

referenced legislation.

JAHlJFB:ad

c: Kathleen Boucher, Assistant Chief Administrative Officer

Lisa Austin, Offices of the County Executive

Joy Nurmi, Special Assistant to the County Executive

Arthur Holmes, Director, Department of Transportation

Patlick Lacefield, Director, Office of Public Information

Alex Espinosa, Office of Management and Budget

Michael Coveyou, Department of Finance

Naeem

Mia,

Office ofManagement and Budget

Amy Wilson, Office of Management and Budget

Philip Weeda, Office of Management and Budget

Adam Damin, Office of Management and Budget



Fiscal Impact Statement

Bill 16-12, Trees - Utility Vegetation Management

t.

Legislative Summary.

Bil116-12 would require certain utilities to submit a vegetation management plan to the

County; require certain utilities to provide notice to certain property owners before

conducting vegetation management activities; and require certain utilities to obtain consent

from certain property owners before conducting vegetation management activities.

This bill would require the Department of Transportation (DOT) arborists to inspect utility

company requests to prune or remove trees in the County right-of-way, inspect private

property trees in

lural

mid rustic road areas within 35 feet ofthe road centerline, inspect

historic area trees within 35 feet ofthe road centerline, inspect private prope11y trees when

the utility companies have conflicts with the private property owners, investigate complaints

regarding the utility pruning and removal efforts, perform follow-up inspections of work

completed, and manage data storage and paperwork generated from the inspection and

investigation efforts.

2.

An

estimate of changes in County revenues and expenditures regardless of whether the

revenues or expenditures are assumed in the recommended or approved budget.

Includes source of information, assumptions, and methodologies used.

The legislation authorizes fees to be imposed by Method 3 regulation to cover the cost of

administering the bills requirements. DOT projects the need for three additional Arborists.

The following resources are assumed to be necessary for the Division ofHighway Services

in

DOT to carry out its new/additional responsibilities:

1. One Arborist to inspect the initial utility requests for removal and pruning (from Chapter

55A-5(a)(1)). Pepco reported that they either removed or were denied removal of over

2,800 trees in the County right-of-way over the last year. The pruning data is given in

linear miles, which makes it much harder to quantity, but there are many more trees to

be pruned than removed. The reported number of tree removal requests equates to 12

removals. A reasonable estimate of pnming is 20 to 25 pruning inspections per work

day. This arborist will also need to retrieve and store data from the inspections.

2. One Arborist to do the rural and rustic road inspections (Chapter 55A-6(b)), the historic

area inspections (Chapter 55A-6(c)), and some private property inspections (Chapter

55A-6(a)). This arborist will need to retrieve and store data for the above inspection

assignments. This workload

is

based on 600 annual requests for review on rural and

rustic roads.

3. One Arborist to investigate utility vegetation management complaints (Chapter 55A­

7(a»), perform follow-up spot inspections, assist

in

initial inspection requests and

perfonn

aU

associated paperwork on the estimated 12 removal and 20 to 25 pruning

inspections per work day.

1



All arborists will have travel time considerations during each work day and at least four days

of training each year.

Estimated Costs:

Arborist (grade 23) mid-point salary is $68,5311year

Retirement benefits are $13,877/year

Insurance benefits are $6,1811year

FICA benefits' are $5,243/year

Tota1 arborist cost: $93,832/year per arborist

Motor pool costs:

$9,OOO/per year per arborist

Equipment costs:

$5,OOO/per year per arborist

Training and certification costs:

$1,200/per year per arborist

Total for three arborists: $327,096/year

A provision ofthe bill states that ifthe utility is unable to obtain consent from the propelty

owner the utility may ask the Chief of Tree Maintenance to inspect the tree, and after the

inspection [mds the tree to pose imminent hazard to the Utility's system reliability, the Chief

may direct the utility to remove the tree without obtaining consent

0

f the property owner.

DOT believes this provision cou1d cause an impact, which cannot be quantified at this time,

related to legal disputes

with

property owners.

3. Revenue and expenditure estimates covering at least the next 6 fiscal years.

The total estimated cost for the next six fiscal years of the three arborists is $1,962,576. The

legislation authorizes fees to be imposed by Method 3 regulation to cover the cost of

administering the bill's requirements.

It

is anticipated that fees will be assessed to cover the

program's costs. The amount of these fees will be detenuined by DOT at the time the

regulation is written.

4.

An

actuarial analysis through the entire amortization period for each bill that would

affect retiree pension or group insurance costs.

Not applicable.

5. Later actions that may affect future revenue and expenditures

if

the bill authorizes

futUre spending.

Not applicable.

2



6. An estimate of the staff time needed to implement the bill.

. Three additional FTEs is the estimated stafftime to implement this bilL

7. An explanation of how the addition of new staff responsibilities would affect other

duties.

There would be no impact to other DOT duties if additional positions are funded.

The Office of Consumer Protection will draft a consumer bill of rights. This activity would

require about 10-12 hours drafting the document and would be absorbed by existing

resources.

8. An estimate of costs when an additional appropriation is needed.

Total estimated cost is $327,096 per year.

9. A description of any v3l'iable that could affect revenue and cost estimates.

The expenditure assumptions are based on Pepco's estimated workload and customer

complaints/requests and actual expenditures could vary depending on the volume of calls or

complaints.

10. Ranges of revenue or expenditures tJlat are uncertain or difficult to project.

Not applicable.

11.

If

a bill is likely to have no fiscal impact, wby tbat is tbe case.

Not applicable.

12. Other fiscal impacts or comments.

Not applicable.

13. The following contributed to and concurred with this analysis:

Keith Compton, Division Chief, Department of Transportation

William Selby, Department ofTransportation

Adam Damin, Office of Management and Budget

Jl4jrr«LL...z:=::..-..

"-'--=-'~"""~II:7=-----­

,.~

nn r

A.

Hughes, Di tor

ffice ofManagement and Budget

3



Economic Impact Statement

Council Bill 16-12, Tiees Utility Vegetation Management

Background:

This proposed legislation would:

• require certain utilities to submit a vegetation management plan to the County;

• require certain utilities to provide notice to certain property owners before

conducting vegetation management activities;

• require certain utilities to obtain consent from certain property owners before

conducting vegetation management activities;

• require the County Executive to issue implementing regulations; and

• generally amend County law regarding utility vegetation management.

1. The sources of information, assumptions, and methodologies used.

Not applicable

2. A description of any variable that could affect the economic impact estimates.

There are no direct economic impacts from Bill 16-12. This Bill establishes a

framework or plan by which utilities will conduct vegetation management in the

County. The indirect economic impact rests with the possibility of additional costs

incurred by the utility in the implementation of the plan and whether those costs can

be passed on to utility customers in the form of higher rates.

3,

The Bill's positive or negative effect,

if

any on employment, spending, saving,

investment, incomes, and property values in the County.

This Bill will have no significant economic effect on employment, spending, saving,

investment, and incomes

in

the County.

It

is uncertain whether the implementation of

a vegetation management plan will have an effect on property values.

If

so, the

impact would be site specific and not countywide.

4. If a Bill is likely to have no economic impact, why is that the case?

Because the Bill requires the development and implementation of a management plan,

the Bill has

110

direct economic impact. While the purpose of Bill 16-12 requires that

a plan

be

developed and implemented, the goal of the plan is to ensure system

reliability. Such reliability is necessary to prevent disruptions in certain economic

activity. However, such activity may be local and site specific and have no

significant impact countywide.



5. The following contributed to and concurred with this analysis: David Platt and Mike

Coveyou, Finance

each, Director

De

aItment of Finance