Title
Underground Electric Distribution Installation Services Contract (NB)
Staff recommends approval of a one-year extension of the contract for the installation of underground electric distribution facilities with Pike Electric Inc.
Explanation
On March 24, 2003, the City Commission awarded a contract to Pike Electric Inc. for installation of underground electric distribution facilities for two years. The contract allows for three, twelve-month extensions of the contract upon mutual agreement of the parties and negotiation of contract prices. The City Commission approved two extensions of the contract. Pike Electric Inc. has agreed to extend the contract for the final twelve-month extension with a 2.42 percent increase in labor units, a 3.50 percent increase in equipment units and a 3.10 percent increase on the remaining contract units. Pike Electric's requested increases are based on rising labor, fuel, equipment and insurance costs.
The contract is required for installation of underground distribution construction assemblies, equipment foundations, electric cable, transformers, switchgear, and other related equipment within the underground electric distribution system in various locations of the GRU service area on an as needed basis.
Pike Electric Inc. has provided satisfactory service over the last four years. Contract pricing is competitive for the market and the requested increase is in line with the Consumer Price Index.
Recommendations
The City Commission: 1) authorize the Interim General Manager, or her designee, to execute an amendment to extend the contract with Pike Electric Inc. for installation of underground electric distribution facilities for a one-year period; and 2) approve the issuance of a purchase order to Pike Electric Inc. for these services in amounts not exceeding budgeted amounts.
Fiscal Note
Funds for these services are included in the FY 2007 Utilities Budget and will be requested in the Utilities Budget in future fiscal years covered under the contract term. The increase is estimated to have a fiscal impact of approximately $84,000, based on the budgeted amount of $2,500,000.
Drafter
Prepared by John E. Tisdale, Manager of Electric Transmission and Distribution
Submitted by Karen S. Johnson, Interim General Manager