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HomeMy WebLinkAbout~Master - Award of Contract for Electric Services Purchase of Aluminum Cable RESOLUTION NO. 23-198 RESOLUTION APPROVING AWARD OF CONTRACT FOR THE PURCHASE OF ELECTRIC SERVICES ALUMINUM CABLE FOR THE CITY OF AMES,IOWA WHEREAS, the purchase of 7,500 feet of 500 KCMIL aluminum cable is to replenish inventory for the Electric Services Department. Cable of this type is kept on hand to ensure availability for the needs of the department. This item is used to provide service for commercial and residential applications and is necessary to meet the anticipated needs of the Electric Services Department for new construction and maintenance projects; and, WHEREAS, on March 9, 2023, an Invitation to Bid (ITB) was issued. Staff reviewed the bids and concluded that the low bid from RESCO,Ankeny, Iowa,met the specification for the 500 KCMIL aluminum cable and is acceptable; and, WHEREAS, because of the metal content of this product, RESCO attached a metal escalation/de-escalation clause(capped at no more than 10%) due to the volatile market for metal. Therefore, the actual price charged to the City may be adjusted depending on the day the cable is shipped; and, WHEREAS, the estimated delivery time is 40 weeks. In the past 40 weeks, the price of aluminum cable has actually decreased by 2%. The largest increase experienced during the past 40 weeks has been 5%. Although the previous history of the aluminum cable pricing changes is not a guaranteed indicator of future volatility, staff believes it is unlikely that prices would rise high enough as to make the second lowest bid a better value. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the award of contract to RESCO, of Ankeny, Iowa, for the purchase of Electric Services aluminum cable in accordance with the bid amount of$69,416.25 (inclusive of Iowa sales tax) is hereby approved. ADOPTED THIS 111h day of April, 2023. Renee hall, City Clerk John A. Haila, Mayor Introduced by: Corrieri Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 1 Ith day of April, 2023.