REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Issue Purchase Orders to The Okonite Company for the Purchase of Okonite Alternative Cables for Silicon Valley Power's Distribution System
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On November 14, 2023, the City Council authorized the City Manager to issue purchase orders to The Okonite Company for the purchase of standard 1100 KCMil and 1/0 MCM cables on a sole source basis. Silicon Valley Power (SVP) uses these two types of Okonite cable to connect switchgears and transformers in SVP's distribution system. The Okonite Company has been the original manufacturer for SVP's medium voltage cables for the past 15 years.
The 2023 City Council authorization was for a cumulative total amount of $7,264,378 for the time period beginning on November 13, 2023 (the date of the City Council action), through December 31, 2025, subject to the annual appropriation of funds. Following City Council approval, staff placed orders for both standard cable types, with deliveries expected in December 2024.
Due to significant increases in lead times, along with SVP's extensive capital improvement program and increased preventative maintenance, the demand for the cables has increased. For comparison, in 2020, SVP ordered 32,000 linear feet of cable, 12,000 linear feet in 2022, and 70,000 linear feet in 2023.
Due to the one-year lead time for the standard cable types and in order to meet the critical needs of the electric utility, including meeting construction timelines, SVP staff worked with the Purchasing Division to acquire alternative cables as a pilot solution. These alternative cables, commonly used by larger utilities, are stocked by the vendor. SVP staff have determined that these alternative cables will meet the needs of SVP as an interim solution. As a result, staff is requesting authorization to purchase additional quantities of thes...
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