CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year One to Contract 22-255, Polyethylene/PVC Conduit Qualifications, to Power Line Supply, Universal Utility Supply, and Wesco Distribution for an amount not to exceed $1,700,000
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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 (ESC). This conduit is an integral component of the underground cable system. Conduit facilitates installation and protects the cable, promoting safe and reliable service.
The City Council awarded Contract 22-255, Polyethylene/PVC Conduit Qualifications, to Power Line Supply, Universal Utility Supply, and Wesco Distribution on October 4, 2022 for a one-year term from October 4, 2022 to October 3, 2023, with one, one-year option to extend.
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.
DISCUSSION:
During the original term of the contract, all vendors provided the material requested in a timely and cost-effective manner. The material was of high quality and met the needs of the Utility for continued improvements throughout the City's underground electric grid.
Based upon the vendors' performance, the Utility would like to extend the contract for the first option year. All vendors have agreed to maintain the terms provide for under the contract.
The term of the first option year is October 04, 2023 to October 3, 2024, with no option years remaining.
FISCAL IMPACT:
C...
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