CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the applicable provisions of the Naperville Procurement Code and award Bid 23-196R, Transmission Steel Pole Painting, to Public Utilities Maintenance Inc., for an amount not to exceed $450,000 plus a 5% contingency
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Naperville Electric Utility (Utility) owns 116 steel transmission structures throughout the City which support 138kV transmission cable at a height of 90-135 feet above ground. Maintenance of these structures includes ensuring the base of the tower is free of vegetation as well as regular cleaning, preparation, and painting. These structures are vital to ensuring a reliable electric supply for the City.
Transmission poles are painted based on the condition of the pole but generally need to be repainted approximately every 10 years. Poles subjected to salt overspray from winter operations plowing require more frequent repainting. This work requires specialized contractors that follow strict safety procedures, as these structures must be painted while the circuit is still energized. De-energizing the transmission system for the purpose of painting subjects the City to significant risk of a major outage.
In May 2024, the Electric Utility issued Bid 23-196R, Transmission Steel Pole Painting, to solicit bids from contractors specialized in transmission pole painting. Due to the high-risk nature of the work, the contractor’s responsibility was determined by requiring proof of recent safety training and confirming references from similar successful projects.
DISCUSSION:
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Advertisement Date: |
05/29/2024 |
Notices Sent: |
351 |
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Opening Date: |
06/18/2024 |
Planholders: |
08 |
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Proposals Received: |
02 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
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Public Utility Maintenance, Inc. |
$450,000 |
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Forbearance Power Line Construction |
$501,000 |
After review, both vendors were deemed to be non-responsive. Public Utility Maintenance does not fully comply with the City’s RBO requirement related to the need for having an apprentice program. The second bid was found to be non-responsive because they failed to provide the required bid bond.
Based on Public Utility Maintenance’s qualifications and references, staff recommends waiving the requirement related to apprentice training and awarding to the lowest bidder. The vendor provides similar services for electric utility companies nationwide, including ComEd/Exelon which provided a positive reference review.
Utility staff reviewed the bid submittal, and the per-pole pricing was consistent with expectations based on the Utility assessment of the existing conditions of each pole and is comparable to previous contract pricing. Public Utilities Maintenance will also provide a five-year warranty for the work. If the work is not completed in 2024 the poles will rust further and will be more expensive to restore. If left unaddressed for too long, the advanced rusting on the poles will eventually create structural integrity concerns. Additionally, one of the significantly rusted poles is near the entrance of a new residential development and aesthetically that pole does not represent the Electric Utility positively.
This work should be completed by October 31, 2024. The contract also includes two, one-year options to perform additional painting work in 2025 and 2026.
FISCAL IMPACT:
CIP#: N/A
Transmission painting is expensed to the Equipment Maintenance account listed below. The Electric Utility included $520,000 in the 2024 budget for transmission tower painting and refurbishment. The requested award is within the amount budgeted for this expense.
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Account Number |
Fund Description |
Total Budget Amount |
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40251300-531303 |
Electric Utility Fund |
$640,000 |
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