CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 to Contract 25-172, Insulated Conductors, to The Okonite Company for an amount not to exceed $5,500,000
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DEPARTMENT: Electric Utility
SUBMITTED BY: Raheel Arshed, Deputy Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 25-172 to The Okonite Company for a one-year term from September 1, 2025, to August 31, 2026, with two, one-year option years to extend. The purpose of this contract is to maintain the supply of conductors for inventory at the Electric Service Center warehouse.
The Electric Utility (Utility) maintains an inventory of insulated conductors for use throughout the year based on anticipated needs for various capital projects and emergency repairs. The conductors are of various types and sizes and are used to extend service to new areas, to transition overhead services underground, and to replace damaged or failed conductors that make up the underground electric grid infrastructure in the City.
DISCUSSION:
During the original term of the contract, The Okonite Company continued to provide high-quality products for use in the City's underground electric grid. Supply chain issues for raw materials and industry demand have forced them to extend delivery times beyond one year, but they have consistently held to their commitments to delivery times provided when orders are placed.
Engineering has identified approximately $4.5 million in known work planned for 2027 that will require these materials, with the remaining contract capacity expected to support emergent work and unplanned system needs throughout the contract term.
The term of the first option year is September 1, 2026, to August 31, 2027, with one, one-year option remaining on the agreement.
FISCAL IMPACT:
CIP#: Various
Insulated conductors are expensed to the Operating Supplies account listed below. The Electric Utility included $700,000 in the 2026 budget for var...
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