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HomeMy WebLinkAboutRes2004-078 I I I 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 Ci~\ ~/" .......\.. OF SE:~''''" .:~..- ~'ttfP~@1~:.,::r~ ~~ .. 0": .<1/. . \'.) ~ ':':"" ~~ll'." ~ .. ....;'" '.....,... '\.'.,. '.: l..... ~ \,.. ~ : n: Q~\ /- T ~ ~. ~ ': L..jjL;~.~~-I : 0 f: .. ~ ... ~ l,~~ -, -.....- .l:: "1.1; ",".v..... ...q....-: -:<. l, :-.....v1V~ 1 ,\'}'.'.' ,"" .'. (,.'" r... '..~. ." "",,,,_~..,, ...~ ~;.. .......:...., \..~'\;> ....~'# .~'. .. 1::' (,,- ." IX.... . :' oi...~t .,I r j;A."'~ ,,~ i" r &~ iH ~.\.~jo~"" 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 ????? 1 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. ????? 2