CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #2 to Option Year #1 for Contract 23-152, Underground Distribution, Directional Boring and Services, to Meade Electric Company, Inc. and Electric Conduit Construction, for an amount not to exceed $800,000 and a total award of $8,808,477.10
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Option Year #1 to Contract 23-152, Underground Distribution, Directional Boring and Services, to Meade Electric Company, Inc. and Electric Conduit Construction on December 3, 2024, for a one-year term from January 1, 2025, to December 31, 2025, with one one-year option remaining on the agreement.
The Electric Utility (Utility) delivers energy to approximately 63,000 residential and commercial customers. To provide timely and reliable services, the Utility requires the services of a qualified contractor to provide the labor and equipment necessary to perform capital and emergency maintenance work.
The purpose of this contract is to supplement and perform work functions the Utility cannot perform due to time constraints or lack of internal resources.
DISCUSSION:
In 2025, the Utility performed more work for new residential and commercial services as well as service revisions than projected. These projects are fully paid for by customers, and thus the Utility receives offsetting revenue for these projects.
The Utility requests a date when electric service installations or revisions are needed as a part of the permit/development process and strives to generate a work plan, including engineering and construction, to meet these deadlines.
Several of these projects were scheduled to be performed by Utility crews, but due to customer delays, installations could not be completed at the scheduled time.
Meade has confirmed that they have the resources to complete the projects by the revised customer dates.
This Change Order is requested to add funds to complete emergent work and new business projects that were impacted by customer delays.
FISCAL IMPACT:
CIP #: Various
Underground distribution and directional boring services are expensed to the Infrastructure account listed below. These services are required to complete various capital projects for the Electric Utility. The 2025 budget includes $27,261,400 for electric utility infrastructure upgrades. The work associated with this change order will be done in coordination with EU003, New Electric System Installations. This project has a budget of just under $2,000,000 for 2025; however, it is fully funded through installation fees, and the work is only done as customers request and pay for it. The requested change order is within the budget for this expense.
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Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
$27,261,400 |