CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year Two to Contract 22-255, Polyethylene/PVC Conduit Qualifications, to Power Line Supply, Universal Utility Supply, and Wesco Distribution for an amount not to exceed $500,000
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director of Electric Utility
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 22-255, Polyethylene/PVC Conduit Qualifications, to
Power Line Supply, Universal Utility Supply, and Wesco Distribution on October 4, 2022, for a one-year term from October 4, 2022, to October 3, 2023, with two, one-year options to extend. Option year one was approved on September 05, 2023, for a one-year term from October 4, 2023, to October 3, 2024.
The Electric Utility (Utility) purchases polyethylene and PVC conduit used in the electric distribution system and is inventoried at the Electric Service Center (ESC). This conduit is an integral component of the underground cable system. Conduit facilitates installation and protects the cable, promoting safe and reliable service.
Fluctuating raw material costs make it more cost-effective to buy conduit on an as-needed
basis, asking qualified suppliers to quote prices on the quantity needed at the time. The City has used this method to procure conduit during the previous contracts, and it ensured the City was paying the lowest market price available at the time of purchase while receiving the material on time to meet schedule needs.
DISCUSSION:
During the first extension of the contract, all vendors provided the material requested in a timely and cost-effective manner. The material was of high quality and met the needs of the Utility for continued improvements throughout the City’s underground electric grid.
Based on the vendors’ performance, the Utility would like to extend the contract for the
second option year.
All vendors have agreed to maintain the terms provide for under the contract. The term of the second option year is October 04, 2024 to October 2, 2025, with no option years remaining.
FISCAL IMPACT:
CIP#: N/A
Polyethylene/PVC conduits are expensed to the Operating Supplies account listed below. The Electric Utility included $700,000 in the 2024 budget for items stored in their warehouse. If these items get used for capital work, they are initially expensed to the Operating Supplies account and then expensed against the project budget once they are in use. The requested award is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40101300-541407 |
Electric Utility Fund |
$700,000 |