CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year One #1 to Contract 23-151, Civil and Duct Work, to Meade Electric Company, Inc. for an amount not to exceed $1,887,108.83
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 23-151, Civil and Duct Work, to Meade Electric Company, Inc. on December 5, 2024, for a one-year term from January 1, 2024 to December 31, 2024, with two, two-year options to extend. The purpose of this contract is to provide supplementary labor and equipment to support Utility projects.
The Electric Utility (Utility) operates 16 substations which facilitate the delivery of energy to approximately 62,000 residential and commercial customers. To provide timely and reliable service to its customers, the Utility requires assistance from a qualified underground contractor to provide the labor and equipment necessary to perform capital and emergency maintenance work.
DISCUSSION:
During the original one-year term of the contract, Meade performed two projects in a timely and accurate manner. Meade is currently working on two additional projects which will be completed prior to the conclusion of the current contract term. To date there have been no issues presented concerning Meade’s capabilities within this contract.
The Utility recommends extending the contract for a one-year Option Year versus the two-year extension permissible within the contract terms and conditions. Meade has agreed to maintain the rates and terms provided for under the contract, which is a 5% increase over the original award amount of $1,797,246.50.
The term of the Option Year is January 1, 2025, to December 31, 2025, with one, two-year option remaining on the agreement.
FISCAL IMPACT:
CIP#: Various
Civil and duct work is expensed to the Infrastructure account listed below. This work is required to complete a number of capital projects. The Electric Utility included $26.35 million in the 2025 budget for infrastructure upgrades. The requested award is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget |
|
40251300-551502 |
Electric Utility Fund |
$27,261,400 |