Approval is requested for the cancellation of a contract with Ehlers Electric Company of Sunnyvale.

In June 1998, Invitation for Bids #F9701-41 solicited bids to provide electrical services on an "as needed" basis for City departments. Two bids were received: one from Ehlers Electric Company of Sunnyvale and one from Lopes Electric, Inc., of San Jose. Staff recommended award of a three-year contract to Ehlers Electric (Report to Council #98-262). Bid pricing offered by Ehlers Electric was considerably lower than pricing offered by Lopes Electric, and Ehlers had successfully provided electrical services to the City for a number of years.

On July 28, 1998, Council awarded a three-year contract to Ehlers Electric Company. The contract term was August 1, 1998, through July 31, 2001.

On August 5, 1998, Ed Ehlers, the owner of Ehlers Electric, requested release from the newly-awarded contract due to unanticipated medical problems. Ed Ehlers is the only licensed electrician employed by this firm.

Staff recommends immediate cancellation of the contract as requested by Ehlers Electric.

The fastest alternative for finding a replacement for Ehlers Electric is to award a contract to Lopes Electric, the second low bidder in response to Invitation for Bids #F9701-41. However, the bid pricing offered by Lopes Electric will result in charges beyond budgeted amounts for electrical services.

Staff, therefore, recommends rebidding electrical services in an attempt to obtain bid pricing more in line with department budgets.

If new bid pricing similar to the Ehlers Electric contract pricing is obtained through a rebid, annual expenditures for electrical services will be approximately $200,000 over a three-year period.

It is recommended that Council take the following actions:

1. Approve the immediate cancellation of the existing contract with Ehlers Electric Company of Sunnyvale; and
2. Authorize the Purchasing Officer to issue a new Invitation for Bids for electrical services.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary Bradley
Director of Finance

Approved by:

Robert S. LaSala
City Manager