CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year #3 to Contract 23-152, Underground Distribution, Directional Boring and Services, to Meade Electric Company, Inc. and Electric Conduit Construction, for an amount not to exceed $19,867,145.69
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Raheel Arshed, Deputy Director
BACKGROUND:
The Electric Utility (Utility) leverages directional boring to install underground conduits beneath roads, driveways, and landscaped areas. This provides for minimal pavement disruption making it a faster, more community-friendly option for developed residential and commercial neighborhoods. The purpose of this contract is to provide the Utility with services necessary to perform underground electric distribution, capital improvement, and emergency maintenance work.
The City Council originally awarded Contract 23-152, Underground Distribution, Directional Boring and Services, to Meade Electric Company, Inc. (Meade) in the amount of $6 million on December 5, 2023, for a one-year term from January 1, 2024, to December 31, 2024, with two, two-year options to extend.
On April 4, 2024, the City Manager approved the award of Change Order #1 to add overhead transmission and distribution services to the Meade contract.
On June 4, 2024, the City Council approved the award of Change Order #2 to add Electric Conduit Construction (ECC) as a second contractor to perform work that Meade was unable to complete.
On December 3, 2024, the City Council approved the award of Option Year #1 for the period of January 1, 2025, to December 31, 2025 in the amount of $8 million.
On December 2, 2025, the City Council approved the award of Change Order #2 to Option Year #1 to add $800,000 to finish work delayed by customer scheduling.
Most recently, on December 16, 2025, the City Council approved the award of Option Year #2 from January 1, 2026, to December 31, 2026 in the amount of $8.1 million.
DISCUSSION:
During the second option year, both Meade and ECC completed work that met the Utility’s expectations. Some of the most notable projects performed pertained to existing facility system improvements and new facility installations, including cable replacement projects for spans that were determined to be uninjectable or had a significant number of faults, emergency repairs of conduit and cable caused by other utility work “dig ins,” new facility installations such as the expansion at Naperville North High School, transmission line maintenance as determined by the Utility’s drone inspection program.
Meade Electric Company has requested a 3% increase in unit prices for each year of the extension. Staff reviewed the request and determined the increases are reasonable based on current labor and material cost trends. The contractor has agreed to extend the contract under these revised rates.
Electric Conduit Construction (ECC) is a qualified contractor capable of performing work when Meade is unavailable or unable to meet the Utility’s needs. ECC is included as the secondary vendor under the contract, providing the Utility with an alternate resource to maintain project schedules, and meet customer-driven project commitments. Maintaining a secondary contractor also provides flexibility during periods of increased workload and helps minimize potential delays to critical electric system work.
Staff recommends extending the contract to both Meade and ECC for a two-year option.
Meade will serve as the primary contractor under this contract, with ECC serving as the secondary contractor. Maintaining two vendors provides an alternate resource, which has proven to be extremely beneficial and has allowed the Utility to maintain schedule commitments for both Electric Utility and customer-driven projects.
The term of the two-year option is January 1, 2027, to December 31, 2028, with no option years remaining.
FISCAL IMPACT:
CIP #: Various
Underground Distribution and Directional Boring services are expensed to the Infrastructure and Operational Services accounts listed below. These services are required for both routine maintenance and capital improvements within the Electric Utility. This option year is for services in 2027 and 2028, and as a result expenses associated with this award will not begin being realized until 2027. Although the 2027 budget is still being finalized, staff will ensure sufficient funding is included in the 2027 budget to support this award.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
TBD |
|
40251300-531308 |
Electric Utility Fund |
TBD |