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Sponsored by: Yoder
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CITY OF SEWARD, ALASKA
RESOLUTION 2007-029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO TWO PURCHASE AGREEMENTS FOR WIRE
PRODUCTS, FORA TOTAL AMOUNT NOT TO EXCEED $108,545
WHEREAS, lead times to purchase wire varies greatly due to supplier and factory stock;
and
WHEREAS, in order to meet the demand for new electrical services for jobs during the
2007 construction season as well as to have sufficient stock on hand to facilitate repairs to the
transmission line; and
WHEREAS, the majority of the costs of the wire will be recovered through new service
installations reimbursed by customers through work orders; and
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WHEREAS, the Electric Department issued a Formal Invitation to Bid on February 22,
2007 and received only one bid which was found to be non-responsive, and subsequently, upon
approval of the city manager, issued a request for quotes as an alternate method of procurement as
allowed in SCC 6.10.310, to acquire the wire while maintaining a competitive environment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to enter into two purchase agreements as follows:
1) Potelcom in the amount of $19,500 plus 10% contingency; and 2) Hughes Industries in the
amount of$79,176.50 plus 10% contingency.
Section 2. The City Council ofthe City of Seward, Alaska hereby finds in the public interest
to authorize an alternate procurement method as allowed in SCC 6.10.310 (authorizing competitive
quotes) due to the inability to receive competitive quotes during the competitive bid process.
Section 3. The City Council further finds that SCC 6.10.120 (a)(lO) states that, "when
competitive procurement procedures have been followed, but no bids, quotations or proposals are
timely received... .the city manager may proceed to have the services performed or the supplies
purchased without further competitive bidding or quotation."
Section 4. This resolution shall take affect immediately upon its adoption.
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CITY OF SEWARD, ALASKA
RESOLUTION 2007-029
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PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th of
March 2007.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Valdatta, Schafer, Bardarson, Amberg, Shafer
None
Thomas
None
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Council Agenda Statement
Meeting Date: March 27, 2007
To: Marvin Yoder, Interim City Manager
From: Tim Barnum, Manager Electric Utility
Agenda Item: Wire Purchase
BACKGROUND & JUSTIFICATION:
The Electric Utility needs to order wire in preparation for the 2007 summer construction season.
The City generally orders individual reels of wire on an as-needed basis. However, the lead-time for
wire has increased due to fluctuations in price, the cost of some reels exceeding $10,000.00, and
availability due to supplier and factory stock. Most of the wire will be used for new services, with the
reminader used as stock for repairs to the transmission line.
The Electric Department advertised an Invitation to Bid on February 22, 2007 for various sizes of
wire, including freight, to be delivered to Seward. One bid was received, but was found to be non-
responsive.
A request was made to the City manager to utilize alternative procurement procedures, as authorized
by Seward City Code SCC 6.10.310. Due to the potential adverse impact to local residents and
businesses requiring new electrical service, the City Manager deemed it was in the best interest of the
City to allow the solicitation of quotes.
The City requested quotes from our regular suppliers and received three responses. The City receives
the best overall price by splitting the order between two suppliers, and recommends purchasing 500
mcm underground copper quad from Potelcom in the amount of $19,500, with the remainder of the
materials being purchased by Hughes Industries in the total amount of $79,176.50
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures.
Other: _______________________________________________________________________
FISCAL NOTE:
Funding for these purchases is to come from the electric enterprise fund’s 2007 budget, with a
substantial portion of the costs to be reimbursed through customer work orders.
Approved by Finance Department: ______________________________
RECOMMENDATION:
Seward City Council approve Resolution 2007- authorizing the City Manager to enter into two
purchase agreements as follows: 1) Potelcom in the amount of $19,500 plus 10% contingency; and
2) Hughes Industries in the amount of $79,176.50 plus 10% contingency.