Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
Approved

Agenda Title:

Council action to issue a purchase order to PAR Electrical Contractors, in the amount of $2,247,587.96, for E/F Phase II Construction for the Power & Light Department and waive section 6 of the City’s Purchasing policy.
Recommendations:

Council waive section six of the City's Purchasing Policy and approve the issuance of a purchase order.
Background:

This project consists of the transmission line replacement from Substation E to Substation F. The 69kV line from Sub E to Sub F is 7.41 miles long and consist of 125 single pole structures. The line transverses west from Sub E on 35th street to near Stadium Drive. Then turns north into private right-of-way crossing 23rd street, then Truman Road. Follows Blue Ridge North to Independence then east and north crossing 24 highway, east on Wilson, then North on Kentucky to Substation F. The Sub E to Sub F 69kV line was originally owned and maintained by KCPL. The City purchased the transmission line in 2012, with the plan to rebuild it after the purchase since this line is integral to our reliability.

The E/F project was separated into three phases due to budgeting concerns and large scope of work. Phase I, 44 structures, is currently under construction. The Phase II consisting of 49 structures is the subject of this agenda item. Phase III consisting of 32 structures is currently scheduled for next year. Phase I and Phase III is intended to be completed by IPL staff. Material for all phases has already been purchased.

An Invitation to Bid (ITB) for E/F Phase II & III Construction was issued on July 19, 2021. The ITB was published through the Public Purchase, the City’s e-procurement service, which notified one hundred seventy-six (176) potential bidders, of which fifty (50) accessed the bid documents. One bid was received (PAR Electric) when the solicitation closed on August 5, 2021.

City staff contacted several known qualified local potential bidders to determine the cause of the lack of response. The overall response was qualified labor is engaged in the other projects in the area. Due to a shortage of qualified labor, a single bid was received from PAR Electrical Contractors. PAR Electrical Contractors was responsive by accepting the City’s Terms and Conditions and meeting bid requirements.

 

The City's Management Analysist Position is currently Vacant. In order to approve the purchase order, the City Council should waive section six of the City's Purchasing Policy: 

 

6)  Management Analyst Review

Prior to presentation to Council, the City Management Analyst must review and make a recommendation for contracts where the cost is between $500,000 and 1,999,000, if they will be in effect for more than a year; and all contracts valued at $2,000,000 or more regardless of term.




Fiscal Impact:

The fiscal impact to the City is $2,247,587.96. Funding for the E/F Phase II construction is included in the 20/21 & 21/22 fiscal year capital improvement budget, page number 176, account number 201603-5406-1714.

Department:          Power & LghtContact Person:          James Nail


REVIEWERS:
DepartmentAction
Power and Light DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:         

ATTACHMENTS:
DescriptionType
Bid TabulationBackup Material
E-F Project MapBackup Material