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Sponsored by: Yoder
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CITY OF SEWARD, ALASKA
RESOLUTION 2007- 004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
AGREEMENT WITH WESCO DISTRIBUTION AT A COST OF $202,590.55
+ 10% CONTINGENCY; TO PURCHASE 64 TRANSFORMERS
WHEREAS, there is a shortage of soft steel used to manufacture transformers; and
WHEREAS, lead times to purchase transformers can take up to 50 weeks; and
WHEREAS, we must have these transformers for new jobs that are coming up in the 2007
construction season; and
and
WHEREAS, the cost ofthe transformers will be recovered thru new service installations;
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WHEREAS, the Electric Department solicited price quotes rather than request formal bids
because (1) there are limited suppliers, and no Seward suppliers (2) Delays due to the time required
to bid the order could jeopardize our ability to complete jobs in 2007, without obtaining any better
price or lead times; and
WHEREAS, the procedure of obtaining quotes instead of bids is standard practice in the
industry.
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 an agreement with Wesco
Distribution to purchase 64 transformers for a price not to exceed $202,950.55 + 10% contingency
from Account 501-5300-5440.
Section 2. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th of January
2007.
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CITY OF SEWARD, ALASKA
RESOLUTION 2007-004
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THE CITY OF SEWARD, ALASKA
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Willard Dunham, Vice Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Valdatta, Bardarson, Thomas, Schafer, Amberg, Dunham
None
Shafer
None
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ATTEST:
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1/
ohanna Dollerhide
Acting City Clerk
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Agenda Statement
Meeting Date: January 8, 2007
To: Marvin Yoder, Interim City Manager
From: Tim Barnum, Manager Electric Utility
Agenda Item: Transformer purchase
BACKGROUND & JUSTIFICATION:
Lead times on the purchase of transformers is now anywhere from 18 to 50 weeks depending on the
manufacturer. This is due, in part, to a lack of soft steel used to manufacture transformers. We
currently have transformers ordered in May and August, 2006 we have not received. Due to the
fluctuation in lead times we are preparing for next summers construction season.
The Electric Department solicited price quotes for this order, rather than to request formal bids,
because; (1) There are a limited number of suppliers, and we have allowed each of them an
opportunity to bid; (2) There are no Seward suppliers; (3) Delays due to the time required to bid
the order could jeopardize our ability to complete jobs in 2007, without obtaining any better price or
lead times; (4) Poles have been obtained through this method (which parallels our standard
procedure for obtaining most material items for the Electric Department); (5) 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 include freight to Seward, from three Alaskan
suppliers. Five companies were asked to quote, but only three responded with a quote. One did not
respond and one responded with a no bid.
The responses are as follows:
Supplier: Price Quote:
Wesco Distribution $202,590.55
Potelcom Supply $263,285.00
Hughes Utilities $248,919.00
Stusser Electric No Quote
Graybar Electric No Response
Wesco Distribution provided the low quote. A copy of the request for quote and
responses are attached.
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:
Charge $202,950.55 + 10% contingency to “Electric Fund”, Account 501-5300-5440.
Approved by Finance Department:
RECOMMENDATION:
Seward City Council approve Resolution 2007- authorizing the City Manager to purchase 64
transformers of various sizes from WESCO Distribution, FOB Seward, for a price no to exceed
$202,590.55 + 10% contingency. Funding is available in account no. 501-5300-5440.