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HomeMy WebLinkAboutAgenda Report - August 19, 1998 (63)AGENDA TITLE: Purchase of 20,000 feet of 750Kcmil 15kV Primary Underground Cable ($67,236.00) MEETING DATE: August 19, 1998 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council adopt the attached resolution awarding the bid for the purchase of 20,000 feet of #750Kcmil 15kV primary under- ground conductor to the low bidder, Pirelli Cables of Colusa, California, in the amount of $67,236.00. BACKGROUND INFORMATION: On July 15, 1998, the City Council approved specifications and authorized advertisement for bids. Bid instructions requested that bidders submit both firm prices and prices subject to change based on the spot prices of copper and aluminum at the time of shipment. A summary of the bids received and opened on August 5, 1998 is attached as Exhibit A. Staff recommends purchasing the cable from Pirelli at their firm prices. Although both aluminum and copper prices are currently near their 12 -month lows, metals prices would need to increase only about 7% and 10% for aluminum and copper (respectively) in the next 8 weeks (Pirelli's delivery leadtime) to have the lower variable prices eventually exceed the firm prices. This possible escalation in the cost of metals (and subsequent increase in the final purchase price of the cable) is a risk that staff prefers not to take. This conductor is needed to replace the 17,000 feet of cable used to reconstruct two failed system feeders in the Ham Lane / Brandywine area during June, 1998. FUNDING: Electric UtilijgDent Oper ing F d, Page E-22 partme va4l- Alan N. Vallow, Electric Utility Director Funding Approved: Vicky M hie, Finance Director Prepared by Joel Harris, Purchasing Officer cc: Director, Engineering and Operations APPROVED: H. Dix Flynn -- CityManager CC2 0898.DOC 08/07/98 20,000 it #750kcmil Option B - Variable EXHIBIT A SUMMARY OF BIDS $3,583.00/111' AUGUST 5, 1998 TOTA DEL'D 4750Kemil 15Kv CONDUCTOR $67,710.19 B-2890 S77,342.95 Page 1 PIRELLI BICC CABLES WESCO PLATT GRAYBAR INTRALINE J.A.M. I HERNING SERVICES U'GRND 20,000 R #750kcmil $3,120.00/M' $3,229.00/M' 0,583.00/M' NO BID $3,627.27/M' $4,140.00/M' NO BID NO BID Option A - Firm Prices $.6387/lb TOTAL, DEL'D $67,236.00 $69,584.95 $77,213.65' $78,167.671 589,217.00 S.7780/lb 20,000 it #750kcmil Option B - Variable $3,061.00/111' $3,142.00/111' $3,583.00/111' $3,589.00/@1' NO BID NO BID NO BID NO BID TOTA DEL'D $65,964.55 $67,710.19 $77,213.65 S77,342.95 METALS PRICES: Aluminum I S.6600/lb S.6586/lb S.63871lb $.6387/lb Copper S.7780/lb S7655/lb S.7490/lb $.7490/lb METALS WT/1000'• Aluminum 700.3# 704.0# Not Indicated 790.0 Copper 516.9# 510.0# Not Indicated 540.0 DEL'Y(Weeks ARO 8 1 13 16-18 16-18 16-18 1 10 TERMS I NET 30 1 NET 30 NET 30 NET 30 Not Indicated I NET 30 MANUFACTURER I PIRELLI I BICC SOUTHWIRE SOUTHWIRE Not Indicated I MONTEREY Footnotes: 1. Price valid only if order is placed by August 7, 1998. 2. Price valid only if order is placed by August 10, 1998. RESOLUTION NO. 98-124 A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE BID FOR THE PURCHASE OF 20,000 FEET OF 750 Kcmil 15kV PRIMARY UNDERGROUND CABLE WHEREAS, in answer to notice duly published in accordance with law and the order of this City Council, sealed bids were received and publicly opened on August 5, 1998, at 11:00 a.m. for the purchase of 20,000 feet of 750 Kcmil 15kV Primary Underground Cable, described in the specifications, therefore approved by the City Council on July 15, 1998; and WHEREAS, said bids have been compared, checked, and tabulated and a report thereof filed with the City Manager as shown on Exhibit A attached hereto and made a part of this Resolution; and WHEREAS, the City Manager recommends award of the bid for the purchase of 20,000 feet of 750 Kcmil 15kV Primary Underground Cable to the lowest bidder, Pirelli Cables of Colusa, California. NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that the award of the bid for the purchase of 20,000 feet of 750 Kcmil 15kV Primary Underground Cable, be and the same is hereby awarded to Pirelli Cables of Colusa, California, the lowest bidder, in the amount of $67,236.00. Dated: August 19, 1998 I hereby certify that Resolution No. 98-124 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 19, 1998, by the following vote: AYES: COUNCIL MEMBERS - Johnson, Land, Mann, Pennino and Sieglock (Mayor) NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None 4ICE M EIMCHE JVUCity Clerk 98-124 EXHIBIT A SUMMARY OF BIDS AUGUST S, 1998 z i1750Kcmil 15Kv CONDUCTOR B-2890 Page 1 PIRELLI BICC CABLES WESCO PLATT GRAYBAR INTRALINE J.A.M. HERNING SERVICES U'GRND 20,000 n N750kcmll $3,120.60/141' S3,229.00/M' S3,583.00/M' NO BID S3,627.27/M' S4,140.00/M' NO BID NO BID Option A - Firm Prices TOTAL, DEL'D W 6.00:. $69,584.95 S77,213.65' S78,167.67' 589,217.00 20.000 R N750kemll Option B - Variable S3,061.06/M' S3,14IL00/111' 53,583.00/111' S3.589.00/M' NO BID NO BID NO BID NO BID TOTAL, DEL'D S65 64.55 $67.710.19 S7721365 S77 2.9S METALS PRICES: Aluminum I S.6600/ib I S.6586/Ib I S.6387/Ib I S.63871lb Copper S.77804b 5765Mb I S.7490/lb I 5.7490/Ib METALS WT/1000' Aluminum 700.30 1 704.0N Not Indicated 790.0 Copper 516.90 1 510.00 Not Indicated 540.0 DEL'Y(Weeks ARO 8 13 16-18 16-18 16-18 10 TERMS NET30 NET 30 NET 30 NET30 Not Indicated I NET30 MANUFACTURER PIRELLI BICC I SOUTHWiRE SOUTHWIRE Not Indkated I MONTEREY Foolnoles: I. Price,.alid only if order is placed by August 7. 1998. 2. Price valid only If order is placed by August 10, 1998. 0