HomeMy WebLinkAboutStaff Report 388-09TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: OCTOBER 5, 2009 CMR: 388:09
REPORT TYPE: CONSENT
SUBJECT: Approval to Amend the Existing Blanket Purchase Order with
Oldcastle Precast to Appropriate $350,000 for the Purchase of
Electric Utility Vaults and Equipment Pads Required for Capital
Improvement Projects (CIP) and to Provide Service to New
Customers
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the City Manager or his designee to amend the contract limit from
$150,000 to $500,000 on the existing blanket purchase order for FY 09-10 with Oldcastle Precast
Incorporated for the purchase of electric utility vaults and equipment pads.
DISCUSSION
Precast concrete vaults and equipment pads are required whenever electric overhead lines are
undergrounded. Vaults and pads are purchased on an as needed basis for CIPs and for providing
service to new business. In order to simplify procuring and timely delivery of these items staff
recommended that the City'S Purchasing Department establish an an"lUal blanket contract with
suppliers of vaults and pads.
A Request for Quote (RFQ) for the purchase of vaults and equipment pads was issued in January
2008. The solicitation was sent to six vendors and only two responses were received. Based on
the unit prices, one vendor was selected and a blanket purchase order was issued to Oldcastle
Precast Incorporated in FY 08-09. The table below shows the quotes received.
Vendor Quote
Structure Cast $409,926
Oldcastle Precast Inc. $287,222
The expenditure for this blanket purchase order was limited to $150,000 per year. Since the
RFQ had provision for two optional 12-month contract extensions, the contract was renewed in
FY 09-10. During the last fiscal year, the Electric Utility has purchased approximately $130,000
of vaults and equipment pads.
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This year, however, the City's Utilities Department has several major underground construction
CIPs. They include the underground conversion project Underground Utility District (UUD) 45
and several system rebuild projects within the boundaries of old UUDs 17 and 24. Estimated
costs for vaults and equipment pads for each CIP are shown in the table below.
Project Description Estimated Cost
UUD45 $185,000
UUD 17 $ 67,000
UUD24 $118,000
New Business $130,000
[n order to procure the vaults and pads for these projects, the existing blanket purchase order will
need to be amended in excess of authorized limit of $250,000. The anticipated expenditure on
vaults and equipment pads, combined with the baseline of $130,000, will approach $500,000 this
year.
RESOURCE IMPACT
Funds have been budgeted for the purchase of vaults and equipment pads in the FY 2009-10
Electric CIP project EL -98003, Electric Customer Connection EL-89028, EL-06oo2 (UUD 45),
EL-09003 (UUD 17), and EL-10007 (UUD 24).
POLICY IMPLICATIONS
Authorization of this blanket purchase order does not represent any change to the existing policy.
ENVIRONMENT AL REVIEW
Approval to amend this blanket purchase order does not meet the definition of a "project"
pursuant to California Public Resources Code Section 21065. The installation of electric utility
vaults and equipment pads is categorically exempt from CEQA pursuant to Section 15301 of the
CEQA Guidelines (operation or minor alteratIon of existing public structures and facilities), and
Section 15303 (installation of small new equipment and facilities).
ATTACHMENT
None
PREPARED BY:
APPROVED BY:
DEPARTMENT APPROVAL:
CITY MANAGER APPROVAL:
CMR: 388:09
Sr. Electric Project Engineer
~--'---
Assistant Director, Engineering
VaONG
Director, Utilities
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