CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 22-247, Cable Purchase, to Anixter Power Solutions, LLC. for an amount not to exceed $433,597.50
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BACKGROUND:
The Electric Utility (Utility) has an on-going need to obtain underground power distribution cable. The underground cable supports the installation of new commercial and residential service, repairs damaged feeder cable, and replaces feeder cable that has exceeded its useful life.
Due to the continuing supply chain issues, cable delivery times are exceeding one-year. This has caused the Utility to slow the planned cable replacement program in order to maintain cable on hand for both emergency situations and increased number of utility dig-ins by contractors. The requested cable has an expected delivery date of August-September and will allow the Utility to continue its planned cable replacement program.
DISCUSSION:
Since the cable had already been sold to Anixter Power Solutions, the cable must now be purchased directly from Anixter Power Solutions, which is a wholly owned subsidiary of WESCO International. The cost of the cable is based upon commodity prices for the raw material at the time of manufacture. The extended sale price is based upon Wesco's cooperative price schedule, which is a percentage discount from MSRP. Purchasing the cable from Anixter allows the Utility to continue normal, planned installation projects for the remainder of 2022 and the beginning of 2023.
Anixter has agreed to tentatively hold the cable but needs a purchase order to guarantee the City will receive the cable as it moves into production at the end of August.
Staff has identified an approved cooperative contract, Sourcewell Cooperative Contract #121218-WES, through Anixter Power Solutions, LLC, for the procurement of the cable.
FISCAL IMPACT:
CIP #: EU052
Underground power distribution cable is ex...
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