HomeMy WebLinkAbout _ 4.5(c)--Authorize the Procurement of Primary Concrete Vaults and Lids on a Per Quote Basis � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: August 7, 2024 FROM: Nick Zettel, Director of
ITEIVI NO. 4.5(c) Redding Electric I7tility
***APPROVED BY***
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nzettel@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.5(c)--Authorize the procurement of Primary Underground Electrical Vaults and
Lids on a Per Quote Basis
Recommendation
Authorize the following actions related to the procurement of primary concrete vaults and lids:
(1) Authorize the procurement of primary concrete vaults and lids from Cook Concrete
Products, Inc (Cook) and/or Jensen Precast(Jensen) on a per quote basis;
(2) Authorize the purchase spending limit with Cook andlor J�ensen for purchases of primary
vaults and lids for a total not to exceed $600,000 per fiscal year starting in Fiscal Year
2024-25 thro�ugh the end of Fiscal Year 2025-26; and
(3) Authorize the City Manager, or designee, to approve an additional $150,000 per fiscal
year, if needed, due to unforeseen cost increases resulting from ongoing supply chain
disruptions.
Fiscal Impact
The purchase of primary concrete vaults and lids was included in Redding Electric Utility's
(REU) General System Improvements Fiscal Year 2023-25 Biennial Budget and the
Overhead/Underground Infrastructure Replacement Project for the Electric Utility Line
Construction Services. Tn the five-year plan presented to the City Council (Council), REU
anticipated these projects may be bond-funded. If capital expenses related to these efforts are
projected to exceed the approved budget, staff wi11 return with additional recommendations
related to budgetary adjustments and financing options
Alternative Action
The Council could choose not ta autharize purchases from Cook and Jensen on a per qua�e basis,
and request staff to return to the Council with alternative options.
Report to Redding City Council Ju1y 31,2024
Re: 4.5(c)--Authorize the Procurement of Primary Concrete Vaults and Lids on a Per Quote
Basis Page 2
Background/Analysis
Primary concrete vaults and lids are installed in underground electric cable termination points to
support new development projects and internal reconstruction projects. REU utilizes these vaults
and lids at sectionalizing and operational locations within the system to serve customers as well
as to facilitate construction and enhance function and reliability.
The previous approval to purchase primary concrete vaults and lids on a per quote basis from
Cook ended June 30, 2024. The City of Redding's (City) Purchasing Division solicited new bids
for primary vaults and lids in June 2024 (Bid #5495). The bid advertisement resulted in zero bid
responses due primarily to ongoing fluctuations in material and labor prices
After consultation with the City's Purchasing Officer, staff is seeking the Council's approval to
purchase vaults and lids from Cook and/or Jensen on a per quote basis. Approving the purchase
of vaults and lids from the two different vendors allows REU to evaluate multiple quotes and
purchase the best option based on up-to-date pricing and lead times as the supply chain continues
to stabilize. Both vendors have been approved and utilized in the past and have demonstrative
quality products at coinpetitive prices.
Based on the elevated costs of goods, the nuinber of projects currently in development, and the
work that needs to be performed on RELT's aging infrastructure, the anticipated budget for vaults
and lids is a not-taexceed amount of$600,000 annually.
Environmental Review
This is not a project defined under California Environmental Quality Act, and no further action is
required.
Council P�io�ity/City Manager Goals
This agenda item is a routine operational item.