HomeMy WebLinkAbout _ 4.5(a)--Award of Bid Schedule No. 5599 – 15kV and 25kV Cable GI �" Y C� F
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REPORT TO THE CITY COUNCIL
MEETING DATE: July 15, 2025 FROM: Nick Zettel, Director of
ITEM NO. 4.5(a) Redding Electric Utility
***APPROVED BY***
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nzettel@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.5(a)--Award of Bid Sched�ule No. 5599— 15kV and 25kV Cable
Recommendation
Authorize and approve the following relative to Bid Schedule No. 5599 — 15kV and 25kV cable
for the Redding Electric Utility:
(1) Award Bid Schedule No. 5599 to The Okonite Company for an annual eval�uated price of
$2,543,200.00;
(2) Authorize the Purchasing Officer to extend the bid award annually with The Okonite
Company through June 30, 2029, if mutually agreeable, with allowed price adjustments,
and all terms and conditions remaining the same; and
(3) Authorize the City Manager, or designee, to approve an additional $1,017,280.00 per
contract year as a contingency to account for unforeseen cost escalations.
Fiscal Impact
The purchase of 15kV and 25kV cable was included in Redding Electric Utility's (REU) General
System Improvements Fiscal Year 2025-27 Biennial Budget and the Overhead/Underground
Infrastructure Replacement Project for the Electric Utility Line Construction Services.
In the five-year plan presented to the City Council (Council) in June 2025, funding for this,
including General System Improvements, was anticipated to be funded by bond proceeds. If
capital expenses associated with these efforts are projected to exceed the approved budget, staff
will return with recommendations for any necessary budgetary adjustments.
Due to ongoing economie uncertainty in the U.S, vendors cannot reliably project future tariff
rates. The r�quested contingency includes the standard 20 percent allowance for unforeseen cost
escalations, including but not limited to tariffs, freight increases, and global supply chain
disruptions, as well as an additional allowance to cover a potential 20 percent tariff on imported
materials assoeiated with this bid. If such a tariff is enaeted, the Ciry Manager will direct staff to
amend the purchase agreement to reflect any resulting cost increase. If, during the term of the
agreement, market eonditions or tariffs drive material costs above the awarded price plus
Report to Redding City Council July 3, 2025
Re: 4.5(a)--Award of Bid Schedule No. 5599 - 15kV and 2SkV Cab1e Page 2
authorized contingency, staff intends to first enter into a re-negotiation with the awarded vendor.
If mutually agreeable terms cannot be reached, staff will cancel the award and initiate a new bid
solicitation process.
Alternative Action
The City Council could choose not to award the bid to The Okonite Company and provide
alternative direction to staff.
Background/Analysis
This is a routine annual bid for the purchase of 15kV and 25kV cable on an as-needed basis,
subject to the availability of budgeted funds. These materials are required to support residential
and cominercial development and provide emergency replacement of the existing 15kV and
25kV underground cable presently in service.
On Thursday, June 12, 2025, staff received five bid proposals. In the eval�uation process, staff
analyzed the bids based on the bid price and compliance with specifications. The lowest
responsive bid was submitted by The Okonite Company, which supplies the needed 15kV and
25kV cable and is compliant with the specifications, general conditions, and proposal
requirements. One lower-priced bidder was dis9ualified due to non-compliance with key
technical specifications. The Okonite Company is a trusted supplier and has previously supplied
15kV and 25kV cable to REU.
EnviNonmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Pr�iority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Bid Tab
CITY OF REDDING
PURCHASING DIVISION-TABULATION OF BIDS
Furnish 15kV and 25kV Cable OneSource Supply
Solutions AMEK A&S Inc. Anixter Pan America Supply Okonite
BID SCHEDULE NO. DATE OF OPENING
5599 Thursday,June 12, 2025
Wyatt Hopwood TIME OF OPENING
Scott Cox 3:00 P.M.
UNIT UNIT UNIT UNIT UNIT
QTY DESCRIPTION PRICE EXT PRICE EXT PRICE EXT PRICE EXT PRICE EXT
500,000' 15kV Cable EPR $ 9,736.92 $ 4,868,260.00 $ 2.81 $ 1,405,000.00 $ 3,960.63 $ 1,980,315.00 $ 3.05 $ 1,525,000.00 $ 3,056.00 $ 1,528,000.00
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100,000' 25kV Cable EPR $ 3,961.00 $ 396,062.00 $ 10.86 $ 1,086,000.00 $ 9,736.93 $ 973,693.00 $ 10.27 $ 1,027,000.00 $ 10,152.00 $ 1,015,200.00
$ 396,100,00
Evauluated Total $ 5,264,322.00 $ 2,491,000.00 $ 2,954,008.00 $ 2,552,000.00 $ 2,543,200.00
$ 5,264,560�00
Manufacturer Brand Southwire Daewon Cable Co. Southwire Gaon Cable Co. Okonite Co.
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