HomeMy WebLinkAboutStaff Report 331-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: SEPTEMBER 13,2010
REPORT TYPE: CONSENT
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR: 331:10
SUpJECT: Approval of a Term Contract with Okonite Company in the Not to Exceed
Annual Amount of $1,313,356 for a Three Year Period for the as Needed
Purchase of Four Types of Medium Voltage Cable in Support of Utility
Department. Maximum Value of Contract for the Three Year Term of the
Agreement would be $3,940,068
RECOMMENDATION
Staff recommends that Council:
I. Approve and authorize the City Manager or his designee to execute a Term Contract with
Okonite Company in an amount not to exceed $1,313,356 per year.
2. Authorize the City Manager or his designee to execute subject Contract for a three year Term
with a maximum value $3,940,068 dollars.
DISCUSSION
To meet the Utilities Department requirement for medium voltage cables, the Purchasing
Division solicited for a Term Contract. Through this process, a competitive solicitation was
issued to award a contract that will be used on an as needed basis (versus predetermine fixed
amount ordered) with the maximun1 dollar amount that can be ordered under this contract of
$1,313,356 dollars per year (or $3,940,068 over a threc year period). Moreover, this type of
contract results in greater efficiency in the ordering and management of this commodity.
Medium voltage cables, also known as primary cables, are uscd in residential and commercial
underground distribution circuits for the distribution of power. For this contract, there are four
types of cables, 25,000 Volt rated 600 kcmil, 15,000 Volt rated 750 kcmil, 15,000 Volt, I/O
AWO, and 15,000 Volt, 1/0 Three Parallel Conductor. The cables are manufactured to comply
with City of Palo Alto cable specifications and industry standards.
A Request for Quotation (RFQ) for the four types of medium voltage cable was sent to eight
suppliers as well as advertised on the City Purchasing Solicitations Web Site. Three suppliers
responded, Okonite, One Source (Kerite) and Prysmian.
CMR:331:10 Page 1 of2
The RFQ for eaeh cable requested a unit price per foot based on estimated aunual quantities for
purposes of making an award determination. Furthermore, these estimated quantities were
determined based on previous annual usage and estimated future use. The Okonite Company
submitted the lowest responsive bid for all four bid items requested.
The proposed tenn contract requires Council approval because the not to exceed expenditure for
this commodity will be $1,313,356 dollars per year for a total not to exceed amount of
$3,940,068 dollars for three years. The aunual amount is calculated based on historical usage of
three cables and an estimated usage on the fourth cable as well as anticipated future needs to the
City.
RESOURCE IMPACT
There wit! be no new resource impact on the Electric Fund as a consequence of implementing
this term contract. Electric Fund projects using cable have budgets that are sufficient to cover
cable costs. When cable is purchased through the new term contract it will become part of the
City's Store's inventory (as in the past). As the cable is used, inventory is reduced and the cost
of the cable is charged to an Electric Fund budgeted project or to budgeted operating expense.
POLICY IMPLICATIONS
Authorization of this Term Contract does not represent any change to the existing policy.
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
ATTACHMENTS
Attachment A: Bid Summary
CMR:331:10
LA
Director of Administrative Services
Page 2 of2
Attad'lmem: A -
AI B Ie DEI F G H I J
2 I !
3 • ,," ,I Ell[)[)ER NAME : OKONITE I PRYSMIAN.KEIlIT§. ~ .....
ESTIMATE!)
ITEM ANNUAL UNIT OESCRjP110N UNIT Exte~ UNIT Extended Price UNIT Exte~dcd
4 USAGE PRICE Pnc. PRICE PRICE Pnc.
5 SCHEOULE A (WOOD
5
3 90,000 Ft Cable, 25kV. 1
conouctor, Gea kemil
Comp~c~ Aluminum NON~
Strand Filled
cono~ctor, 289 mil EPR
insulution, with 1f6
neutral copper $ 3.230 $290,700,0 $ 4.100 369,000.00 $ 4.149 $427,410.00
concentric conductor
per City of Palo Alto
1,$ kV EPR C<tb1e
Specification, UE-e4-G6
CPA PIN 35374-
4 150,000 Ft Cable, 15kV, 1
conductor. 750 kcmi 1
Compressed Aluminum
Strand Fiiled
conductor, 22a mi 1 EPR
insulation. with 1/3
neutral concentric $ 4.672 $700,800.00 $ 5.900 885,000.00 $ 6,649 997,:350.00
copper conductor per
City of Palo Alto 15 kV
EPR Cuble
Specification, UE-a4-
a6.
7 CPA PIN 35372
8 SCHEDULEB@TEELREELS .. ~=====t======t========1=======t======~~=====+========= 1 200,noo Ft CClble, 15kV. :;-
conductor. 1/a AWG
Compressed Aluminum
Stralld Filled
cQllduetor. 226 mi1 EPR
insulation, with 113
neutral copper $ 1.343 $268,600.0 $ 1.750 350,000,00 $ 1,647 329,400,00
concentr1C conductor,
per C,ty of Pa10 Alto
is kV EPR Cable
Specification, UE·G4·
es.
9 ~A PIN 35361 .. --.--.-+------~--------~------~--------_1------t_--------6 12,000 Circuit Ca~ble~:~1"5kV, ·C
Ft conductor, 1/& AWG
Compressed Aluminum
Strand Fi11ed
conductor. 22& mil EPR
insulation, with 1/3
neutral copper A ... ., 4'1:3"." $ 55~ 662'000 <t! 4780 5736000 concentric conductor, $ 4."'>VQ ......, ,~._ -""", ,'-W. 'i1 • , •
per City of Pa10 A1to
1 S kV EPR Cable
Specification, UE-94-••• h'HREE P ARM-LEt.
10 COHDUCTORS
11 TOTAl I $1313356.00"~" $1,670,240.00: $1,811,520.00
12 I
13 -I
14 i