From
Bryce Davis, Purchasing Manager
Title
Authorize the third renewal of the city's secondary price agreement for fiber restoration services with STC Utility Services, Inc. ($482,920 annually) for one year with the option to renew for two additional one year periods totaling $2,414,600, if all extensions are exercised and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal term(s)
Presenter
Bryce Davis, Purchasing Manager
Gabe Johnson, Public Works Director
Recommended Action
Approve
Analysis
This secondary contract will be utilized by the Streets Department, I.T. Department, Transportation Services and any other department for the installation of new fiber optic conduits and cable, as well as for repairing existing fiber optic conduits and cable.
City Council initially awarded RFB #18040 on April 3rd, 2018 to a primary contractor (Gardner Telecommunications) and a secondary contractor (STC Utility Services), however, the original award did not specify the secondary contract amount. This Council communication is to specify the secondary contract amount, authorize its renewal, and authorize the City Manager to renew this secondary contract in future years so long as sufficient funding is appropriated.
The secondary vendor, STC Utility Services, Inc. will be used only if the primary vendor cannot fulfill the needs of the City. To date, only $2,981.50 has been expended on this secondary contract.
Financial Consideration
Funds are available in various departments operating budgets and will be charged accordingly on orders through the end of the fiscal year. Funding fur future fiscal years will be paid from that year's approved budgets.