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HomeMy WebLinkAboutRes2000-133 I I I Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION 2000-133 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RATIFYING EMERGENCY PURCHASE ORDER #25391 ISSUED BY THE CITY MANAGER TO NATIONAL PIPE AND PILING, INCORPORATED TO SUPPLY PILING FOR THE SMALL BOAT HARBOR REPAIR AND RENOVATION CAPITAL PROJECT FOR AN AMOUNT NOT TO EXCEED $396,704.00 WHEREAS, as a result of continued periodic inquiries to determine material availability and related issues, an issue involving timely production and delivery of steel piling supply was identified; and WHEREAS, the Harbormaster, through the City Manager, has recommended alternate procurement procedures to best serve the needs of the City by making direct supplier contacts to investigate prices, specifications for available product, and delivery date assurances from known product producers; and WHEREAS, straight seam ERW (Electric Resistance Welded) pipe in the 16" size and wall thickness is manufactured by a limited number of producers and these producers are not intending to produce this size pipe until March, 2001 at the earliest; and WHEREAS, offshore producers of steel pipe, such as Pusan in Korea, do not appear to be an option owing to the relatively short lead time available and pipe ordered today would not arrive on the West Coast until March 2001; and WHEREAS, existing stocks of 16" piling may be available but not from a single source, the supply is not guaranteed and if available, the cost of collecting, shipping and extensive cutting and welding required makes this cost prohibitive; and WHEREAS, virtually the only known source of supply for 16" pipe that can be produced in time for to meet the construction and permitting schedule is to purchase the product through National Pipe and Piling, Incorporated to be milled at Paragon Industries, Incorporated ("Paragon") in Oklahoma; and WHEREAS, Paragon's production schedule for 16" pipe is the week of November 13,2000 and they require an immediate commitment so that the steel stock may be ordered for the production run; and CITY OF SEWARD, ALASKA RESOLUTION 2000-133 WHEREAS, ifthe piling is not ordered immediately, it will not be available for the Small Boat Harbor Repair and Renovation Capital Project and may jeopardize the timely and cost effective completion of this project; and WHEREAS, it is in the public interest to ensure that piling is available to complete the renovation project in a timely and cost effective manner promoting continued and increased marine activity within the Small Boat Harbor and benefiting the community through economic stability, job growth and other related economic impacts resulting from the timely completion of the repair and renovations to Small Boat Harbor; and WHEREAS, Seward City Code ~6.1O.115 provides for exemptions from competitive procurement procedures, and the City Council may approve such contracts by motion or resolution; and WHEREAS, the type, size, and quantity ofthe product constitutes specialized products, and an emergency situation makes the delay incident to competitive bidding unreasonable and, therefore, the requested purchase is exempt under Seward City Code ~6.10.120(A)(2) from competitive procurement proceedings; and WHEREAS, Seward City Code ~6.10.120(A)(5) also provides an exemption for supplies, materials, equipment or contractual services which can only be furnished by a single dealer and the City has located only one supplier and producer that can meet the product specifications and the City's time constraints; and WHEREAS, under Seward City Code ~6.10.130, the City Council finds, for the reasons stated herein, that the public interest would best be served by not requiring competitive bids; and WHEREAS, there is a relatively small amount of other piling necessary for the project and it is a much simpler task to purchase the 12" (l7ea) and 18"(4ea) piling along with the 16" piling from the same vendor; and WHEREAS, if separated out, construction contractors would have to bid a small amount of piling in the construction contract bid and arrange separately for fabrication and delivery, increasing the cost and overhead and duplicating efforts; and WHEREAS, in buying all of the piling from one source, the construction contractor will only have to arrange piling pick up and shipment from one location, reducing cost, eliminating duplicative overhead and making the bid process simpler and even for all bidders; and I I I CITY OF SEWARD, ALASKA RESOLUTION 2000-133 WHEREAS, because ofthe exigent circumstances herein described, the City Council further finds that the product can be procured now at a reasonable cost without competitive bidding, and because ofthe specialized nature ofthe product and limited sources of, supply, the City can obtain not only a reasonable price through the proposed purchase, but equally as important, ensure timely delivery ofthe product to meet the construction time constraints; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. For the reasons stated in the above recitals, which are incorporated herein by this reference as written findings of the City Council as if fully set out, the City Council finds that the public interest would be best served by not requiring competitive bids; further, it is the public interest to now purchase this piling to ensure its availability for the timely completion ofthe Small Boat Harbor Repair and Renovation Capital Project. Section 2. The City Council also finds that because ofthe specialized nature ofthe product, the limited number of suppliers and the even more limited ability of potential suppliers and producers to meet delivery time constraints, that the product can be procured at a lower cost by an immediate order without competitive bidding and the time delays associated with such a bid process. Section 3. Purchase Order #25391 issued by the City Manager to National Pipe and Piling, Incorporated to supply the necessary piling for an amount not to exceed $396,704.00 is hereby ratified. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 6th day of November 2000. THE CITY OF SEWARD, ALASKA ["'fL, /~ uLj 0 Edgar Blatchford, Mayor AYES: NOES: ABSENT: Blatchford, Brossow, Calhoon, Clark, Orr, Shafer None King CITY OF SEWARD, ALASKA RESOLUTION 2000-133 ABSTAIN: None A~~A ~c~eillY Y / City Clerk (City Seal)