HomeMy WebLinkAboutRes2004-078
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-78
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, DETERMINING THAT IT IS IN THE PUBLIC'S INTEREST TO
WAIVE THE NORMAL BID PROCESS PER CITY CODE ~6.10.130 AND
AUTHORIZE THE CITY MANAGER TO PURCHASE ELECTRIC UTILITY
POLES FOR AN AMOUNT NOT-TO-EXCEED $23,447
WHEREAS, the City of Seward Electric Department needs replacement poles for the
Electric Utility; and
WHEREAS, the City of Seward Electric Department only orders poles in a quantity
sufficient to fill at least one railroad car; and
WHEREAS, there are a limited number of suppliers and each of them have been given an
opportunity to quote this order; and
WHEREAS, bidding the order would only add time and expense without obtaining a better
price; and
WHEREAS, there are no Seward Suppliers as such; and
WHEREAS, poles have been obtained through quotes for many years with no problems or
objections from the suppliers; and
WHEREAS, this method of obtaining quotes is standard practice in the industry; and
WHEREAS, the City of Seward has issued a request for quotes for 29 poles of various
lengths and classes; and
WHEREAS, Pote1com was one of two responders to our request offive companies for these
poles and was the low quote of $23,447.00; and
WHEREAS, the lowest bid serves the public's best interest in obtaining the best price for the
City.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-78
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1.
It is in the public's interest to waive the normal bid process per City Code
~6.1 0.130 for reasons stated in the above recitals which are hereby
incorporated by reference as written findings. The City Manager is
authorized to purchase 29 wooden poles of various length's and classes from
Potelcom for an amount not-to-exceed $23,447.00.
Section 2.
There is sufficient funding in Account 501-5300-5390 to cover this purchase.
Section 3.
This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council ofthe city of Seward, Alaska, this 12th day
of July, 2004.
THE CITY OF SEWARD, ALASKA
4;/&J
Willard Dunham, Vice Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Branson, Valdatta, Clark, Anderson, Amberg, Dunham
None
Shafer
None
ATTEST:
Je ewis
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COUNCIL AGENDA STATEMENT
Meeting Date: July 12, 2004
Through: Phil Shealy, City Manager
From: Dave Calvert, Manager Electric
Department
Agenda Item: Purchase of various sizes of wood poles for Electric Utility
BACKGROUND & JUSTIFICATION:
The Electric Utility orders new poles about once every 3-5 years, depending on need. The last
time we ordered poles was April 2001. This type of equipment needs to be ordered in bulk in
order to obtain a reasonable price per unit. In the case of poles, we wait until we have a need for
enough poles to fill a rail car before ordering.
The Electric Department did not bid this order because: (1) There are a limited number of
suppliers and we have allowed each of them an opportunity to quote the order; (2) There are no
Seward suppliers as such; (3) bidding the order would only add time and expense without
obtaining any better price; (3) Poles have been obtained through this method (which parallels our
standard procedure for obtaining most material items for the Electric Department) for many years
with no problems or objections from suppliers; (4) The procedure of obtaining quotes instead of
bids is standard practice in the industry. We request a waiver on the requirement for
competitive bidding under section 6.10.130 of the City Code.
We have requested and received quotes, which included freight to Seward, from two Alaskan
suppliers. Five companies were asked to quote but only two responded with a quote. One
replied that they do not bid on wood poles and another replied that they could not be competitive
on this product. The fifth one did not respond. The low quote of $23,447.00 is from Potelcom
Supply. The basic quote is for 25-40 ft, class 2 poles; 2-60 ft, class H1 poles; and 2-70 ft., class
H3 poles.
SupplierQuote
Strusser Elect. N.B.
Western States No Response
Graybar N.B.
Potelcom $23,447.00
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Wesco $23,568.11
Potelcom is the low bidder.
CONSISTENCY CHECKLIST:
Yes No
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable X
FISCAL NOTE:
Funding is available in Account 501-5300-5930.
Approved by Finance Department
RECOMMENDATION:
City Council approve Resolution 04-78, authorizing the City Manager to purchase29 wood poles
of various lengths and classes from Potelcom, FOB Seward, for a price not-to-exceed
$23,447.00. Funding is available in Account 501-5300-5930.
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