AGENDA CAPTION:
Title
Consider approval of Resolution 2022-174R, approving a Change in Services for the contract with Techline, Inc., through a Cooperative Purchasing Interlocal Agreement with the Lower Colorado River Authority (“LCRA”), for the provision of materials and supplies to be used primarily by the San Marcos Electric Utility in an additional annual amount not to exceed $2,000,000.00, bringing the maximum total annual amount of the contract to $6,000,000.00; authorizing the City Manager or her designee to execute the appropriate documents to implement the Change in Services on behalf of the City; and declaring an effective date.
Body
Meeting date: August 2, 2022
Department: Utilities Department - Tyler Hjorth, Director (By Lynda Williams, Purchasing & Contracting Manager)
Amount & Source of Funding
Funds Required: Multiple, depending upon departmental needs
Account Number: Multiple, depending upon departmental needs
Funds Available: Click or tap here to enter text.
Account Name: Click or tap here to enter text.
Fiscal Note:
Prior Council Action: City Council previously approved Res 2020-265R on December 15, 2020, for the annual renewal of the agreement between Techline, Inc., and the City of San Marcos for the provision of materials and supplies through the Interlocal Agreement with Lower Colorado River Authority (LCRA) in the amount of $4,000,000 per contract year, with three (3) annual renewals.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Choose an item.
N/A
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Choose an item.
Background Information:
City Council previously approved Res 2020-265R on December 15, 2020, for the annual renewal of the agreement between Techline, Inc., and the City of San Marcos for the provision of materials and supplies through the Interlocal Agreement with Lower Colorado River Authority (LCRA) in the amount of $4,000,000 per contract year, with three (3) annual renewals.
Over the course of the past two years, supply chain shortages, cost increases of materials, fuel cost increases, and labor shortages worldwide resulting in vastly increased lead times for orders have caused the City to place orders as much as two (2) years in advance to receive materials for planned capital improvement projects and at significantly higher costs than anticipated at the time of the initial City Council approval in 2019. This includes approximately $2,000,000 in transformers and $1,000,000 conduit purchases this year to maintain inventory in support of City and Electric’s CIP plans (already approved by Council).
The increase in business and housing development within the City has also resulted in an increase in infrastructure needs (electric and water utilities, meters, cabling, among others) which, in turn, has resulted in the City’s needs for materials and supplies significantly increasing. Most of these charges are paid for by the developers.
Lastly, the City has experienced more widespread use of the contract by other departments besides the Utilities Department. Nearly all divisions within the Public Works Department as well as the Information Technology Department and the Engineering/Capital Improvements Program Department have required goods and services through the contract, many for which City Council has approved capital projects.
Therefore, the City is requesting approval of an Authorization for Change in Services to increase the annual contract amount of the agreement with Techline, Inc., for the provision of materials and supplies through the Interlocal Agreement with Lower Colorado River Authority (LCRA) from $4,000,000 per contract year to $6,000,000 per contract year for the current contract year in addition to any remaining contract extension options.
Council Committee, Board/Commission Action:
Click or tap here to enter text.
Alternatives:
There are no less expensive, viable alternatives.
Recommendation:
Staff recommends approval.