CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 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 $8,008,477.10
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In support of the City’s priority to provide infrastructure and utility services that are reliable and safe, the City Council awarded Contract 23-152, Underground Distribution, Directional Boring and Services, to Meade Electric Company, Inc. (Meade) on December 5, 2023, for a one-year term from January 1, 2024, to December 31, 2024, with two, two-year options to extend. The City Manager awarded Change Order #1 on April 4, 2024, to add overhead transmission/distribution services. The City Council awarded Change Order #2 on June 4, 2024, to add Electric Conduit Construction (ECC) as a second contractor to supplement the contract.
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.
The Naperville Electric Utility (Utility) delivers energy to approximately 62,000 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.
DISCUSSION:
During the original term of the contract, both Meade and ECC completed work to the Utility’s expectations. Some of the most notable projects performed pertained to existing facility system improvements and new facility installations, including:
• System improvements such as cable injection and cable replacement projects which reduced outages and improved system reliability.
• Transformer and equipment inspections that have provided necessary data to support future system improvement projects.
• New facility installations like 10 W. Martin, Block 59, Chick-Fill-A, Belvedere Apartments, Casey’s Gas Station, Freddy’s Frozen Custard, Scooter’s Coffee, and 7 Brew Coffee.
Utility staff re-evaluated the original bid tabulation sheets and provided the most accurate estimate of work currently planned for 2025 to both vendors. Staff then negotiated rates based on estimated work, which resulted in Meade providing an overall increase of 2.81% and ECC providing an overall increase of 13.21%.
Staff recommends extending the contract to both Meade and ECC for a one-year option year versus the two-year permissible within the contract terms and conditions. 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 municipal-driven and customer-driven projects.
The term of the first option year is January 1, 2025, to December 31, 2025, with one, two-year option remaining on the agreement.
FISCAL IMPACT:
CIP#: Various
Underground distribution and directional boring services are expensed to the Infrastructure account listed below. These services are necessary to complete several capital projects within the Electric Utility. The proposed 2025 budget includes $26.6 million for electric infrastructure upgrades. The award is within the proposed budget amount for this expense.
|
Account Number |
Fund Description |
Total Proposed Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
$27,261,400 |