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4/26/82
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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.
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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
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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
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