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HomeMy WebLinkAboutRes1982-019 r I I I ! ! 4/26/82 FBA/rsa CITY OF SEWARD, ALASKA RESOLUTION NO. 82-19 FINDINGS OF CITY COUNCIL OF SEWARD, ALASKA, THAT THE PUBLIC INTEREST WOULD BE BEST SERVED BY NOT REQUIRING COMPETITIVE BIDDING FOR THE PURCHASE OF ELECTRIC TRANSMISSION POLES AND HARDWARE FOR CONSTRUCTION OF THE 4TH OF JULY CREEK TRANSMISSION LINE. WHEREAS, at the City Council on April 12, 1982, a request was made by the City Manager that the provisions of Ordinance No. 503, Section 10-8 (g), apply to the purchase of certain electric utility poles and hardware for use by the Seward Electrical Utility, and WHEREAS, the City Council discussed the purchase of the poles and equipment without the use of competitive bidding at that meeting and has since then reviewed further information supplied by the City Administration. NOW, THEREFORE, in accordance with Paragraph (g) of Section 10.8 of Ordinance No. 503, the City Council for the City of Seward determines and finds as follows: 1. Construction of electrical utility service to the Marine Industrial Park at 4th of July Creek, Alaska, is a necessary precondition to certain obligations of lessees on City land leased at 4th of July Creek. Those obligations include construction of facilities and expenditures of funds which will generate jobs for citizens of Seward and stimulate the economy generally. 2. provision of electric service to the Marine Industrial Park at 4th of July Creek is necessary for the operation of the shiplift system currently being installed. 3. Prior to the beginning of the current legislative session, there were insufficient funds available to the City of Seward to construct the necessary electric transmission line to serve the 4th of July Creek area. 4. The funds necessary for construction were recently made available to the City of Seward. 5. The 4th of July Creek transmission line contract documents provide that certain materials will be supplied by the Owner, including the electric poles and hardware, and provision by the City of those items will reduce the overall contract price bid by construction companies by reason of the fact that there will be no mark-up for contractor's profit on such materials. -1- I I I I I I , I CITY OF SEWARD RESOLUTION NO. 82-19 Page 2 6. To go to bid on the electric poles and hardware, review the bids, and award a contract for their purchase would be a necessary precondition to the bidding of the 4th of July Creek transmission line project if the advantages from Owner-supplied materials are to be maintained. 7. The bidding process on the poles and hardware would necessarily delay the award of a contract for the construction of the transmission line itself and thus postpone provision of electric utility service with the adverse effects mentioned above. 8. There are a limited number of suppliers in the Pacific Northwest of transmission poles and hardware of the type necessary for use in the construction of the 4th of July Creek transmission line. 9. Consulting engineers to the City, CH2M Hill, have contacted all known suppliers of electric utility poles and hardware in the Pacific Northwest with requests for proposals for provision of the poles and hardware and have recommended that the proposal of Ohio Brass Company for $21,009.90 for hardware and that of McFarland Cascade Company for $25,405.10 for transmission poles be accepted by the City. 10. The City Engineer has reviewed the specifications, and proposals by various companies for the supply of hardware and line materials and has recommended the acceptance of that of Ohio Brass for hardware and McFarland Cascade for poles. 11. The public interest would be adversely affected by the delays incident to a competitive bidding process for the poles and hardware in that obligations of lessees of the City would be delayed, utility service to the Marine Industrial Park would be delayed, all of which would impact the City of Seward by a delay in the stimulation in the economy and provision of jobs for citizens of Seward. 12. The advantages to be gained from public bidding in this particular case are limited in that there are a limited number of suppliers, all known suppliers have been contacted, and proposals have been received from suppliers and compared with the result that the City Council is convinced that the lowest possible price has been obtained for the City. 13. Requiring the contractors who will be bidding on the 4th of July Creek transmission line to supply the poles and hardware themselves would, in the opinion of the City Council, increase the overall cost of that transmission line substantially as contractors would normally add to the actual materials cost profit overhead and margin. 14. In order to have the material on-site ready for contractors who might be selected under the bidding processes -2- CITY OF SEWARD, ALASKA RESOLUTION NO. 82-19 Page 3 underway for the 4th of July Creek transmission line, it is necessry to place orders immediately. For all of the above reasons, and af ter full discussion, the City Council therefore finds that it would be in the public interest to not require competitive bidding for the purchase of electric utility poles and hardware for construction of the 4th of July Creek transmission line. PASSED AND SEWARD, ALASKA, this APPROVED BY THE CITY COUNCIL OF THE CITY OF 26 day of April , 1982. ~, OF SEWARD, ALASKA J~J~ DONALD W. CRIPP, AYOR AYES: NOES: ABSENT: BURGESS, CAMPBELL, MEEHAN, O'BRIEN, SWARTZ AND CRIPPS NONE SORIANO ATTEST: APPROVED AS TO FORI1: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN ;t~ ((/j~ Fr d B. Arvidson, Attorney (City -3-