CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of RFQ 25-140, Polyethylene/PVC Conduit Qualifications, to Power Line Supply, Universal Utility Supply, United Utility Supply, Rural Electric Supply Cooperative and Wesco Distribution as approved vendors for future projects, for an amount not to exceed $1,750,000 and for a five-year term
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Electric Utility (Utility) purchases polyethylene and PVC conduit, which is used in the electric distribution system and is inventoried at the Electric Service Center. This conduit is an integral component of the underground cable system. Conduit facilitates installation and protects the cable which promotes safe and reliable service.
The price of conduit has varied significantly in recent years, and due to the current supply chain climate, pricing has become increasingly volatile. Conduit price is, in part, based on resin prices, which are dependent on the availability of resin as well as the price of natural gas. 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 scheduled needs.
In September, the Utility issued RFQ 25-140, soliciting statements of qualifications from vendors interested in supplying polyethylene/PVC conduit for the City’s spot purchasing needs. Only vendors determined to be qualified through this RFQ process will be allowed to provide quotes during the contract term.
DISCUSSION:
|
Advertisement Date: |
09/25/2025 |
Notices Sent: |
96 |
|
Opening Date: |
10/28/2025 |
Planholders: |
15 |
|
|
|
Proposals Received: |
05 |
Responses were received from the following vendors:
|
Power Line Supply |
United Utility Supply |
|
Universal Utility Supply |
Rural Electric Supply Cooperative |
|
Wesco Distribution, Inc. |
|
Five vendors submitted qualifications, and all were determined to be qualified to provide price quotes and supply polyethylene/PVC conduit to the City. They have successfully met the issued specifications related to their business and products.
Over the past three years, the Utility has expended an average of $350,000 annually for these materials.
The term of the resulting contract is for five years from the date of award. This contract may be extended for up to two additional one-year periods.
FISCAL IMPACT:
CIP#: Various
Polyethylene/PVC conduit is expensed to the Operating Supplies account listed below. Conduit is initially expensed to the Operating Supplies account and stored in the warehouse. Once they are used for a project and put in the field, staff will assign the expense to the correct capital project. Quarterly, the Finance Department will do a transfer to account for these expenses against capital projects and remove the expense from the Operating Supplies account. The Electric Utility included $700,000 in the proposed budget for warehouse supplies in 2026. The requested award can be accommodated within the proposed Electric Utility Budget. Staff will ensure sufficient funding is included in future budgets to support the future years of this award.
|
Account Number |
Fund Description |
Total Proposed Budget Amount |
|
40101300-541407 |
Electric Utility Fund |
$700,000 |