Title
Resolution to Approve an Amendment to the Purchase Order with Harper Electric Inc. for On-Call Electrical Services (Not to Exceed $25,000.00)
Memorandum
We recommend your approval of the attached resolution authorizing an amendment in an amount not to exceed $25,000.00 to the existing $25,000.00 purchase order, with Harper Electric Inc., for a total amount not to exceed $50,000.00 to provide on-call electrical services at various City facilities for FY19.
Each year, the Fleet & Facilities Unit solicits quotes for on-call electrical repair services from at least three qualified firms. An on-call purchase order is then issued and the firm provides electrical repair and maintenance services at various City facilities as directed by City staff. This process is also used for plumbing services. To date these amounts have not exceeded the $25,000.00 threshold that would require City Council approval.
In June 2018, three quotes were solicited for the FY19 on-call electrical work and two firms responded. Harper Electric was selected as the lowest priced and most responsive bidder for this work. An ITB or RFP was not issued as the value of this work has historically been less than $25,000.00 annually. Performance of the work is subject to the terms and conditions of the City’s standard service purchase order.
Seven months into FY19, we have experienced some significant and expensive electrical repairs, primarily as a result of LED light conversions and electrical work required with the refurbishment of the rear Larcom elevator. These repairs have depleted the original purchase order. Additional work is needed for the security/reception desk at City Hall and for the installation of charging stations for the City’s recently purchased plug-in electric vehicles. This will be in addition to our normal costs for on-call electrical repair work throughout the remainder of the fiscal year. The $25,000.00 amendment of the purchase order is needed to cover these services.
Harper Electric Inc. complies with the requirements of the City’s Living Wage, Prevailing Wage and Non-Discrimination ordinances.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: John Fournier, Assistant City Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, There is a need to provide safe and reliable electrical systems throughout City facilities;
Whereas, The cost to repair and maintain these systems varies from year to year and the work is handled on an as needed basis utilizing an on-call contractor;
Whereas, The annual cost of this work is normally less than $25,000.00 and is handled by soliciting written quotations and using the City’s purchase order as the contract;
Whereas, Two written quotations for electrical repair and maintenance services were received in June, 2018, and Harper Electric Inc. of Ann Arbor, MI, submitted the lowest quotation;
Whereas, Costly repairs at City facilities have depleted the original $25,000.00 purchase order;
Whereas, An additional amount not to exceed $25,000.00 is needed for electrical repair services for the remainder of FY19 to cover both the installation of charging stations for plug-in electric vehicles and normal on-call electrical repair work at various City facilities;
Whereas, Harper Electric Inc. complies with the City’s Living Wage, Prevailing Wage and Non-Discrimination Ordinances;
Whereas, Funding for the work is available in the appropriate Operations and Maintenance Budgets;
RESOLVED, That City Council approve an amendment to the purchase order to Harper Electric Inc., in an amount not to exceed $25,000.00, for on-call electrical repair and maintenance services for FY19;
RESOLVED, That funding for the work comes from the appropriate Operations and Maintenance Budgets; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.