CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #2 to Contract 23-151, Civil and Duct Work, to Meade Electric Company, Inc. for an amount not to exceed $400,713.08
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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.
On December 17, 2024, the City Council approved the award of Option Year #1 of the contract for Civil and Duct Work, which expires on December 31, 2025.
The purpose of this contract is to provide supplementary labor and equipment to support Utility manhole installations and substation construction projects that are not covered by other contracts.
The Electric Utility (Utility) operates 16 substations which facilitate the delivery of energy to approximately 63,000 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 this contract, Meade performed work in accordance with the Utility’s expectations. Some of the most notable projects performed pertained to existing facility system improvements and new facility installations, including: the Edward Hospital Substation Expansion and numerous foundation supports for 138kV disconnect switch replacements.
To date there have been no issues presented concerning Meade’s capabilities within this contract.
For 2026, the Utility has approximately ten weeks of work planned for this contract as part of the Tollway Substation Improvement project.
At this time, the Utility recommends extending the contract for one year rather than two to maintain alignment with related contracts and preserve the City’s ability to rebid the work competitively.
Meade has requested a 5% unit cost increase for 2026.
The term of Option Year #2 is January 1, 2026, to December 31, 2026, with no options 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 within the Electric Utility. The 2026 budget included $24,451,500 for Electric Utility infrastructure upgrades. The requested award is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget |
|
40251300-551502 |
Electric Utility Fund |
$25,151,500 |