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HomeMy WebLinkAbout~Master - Authorizing Staff to Purchase Electric Distribution Utility Poles in an Amount up to $50,000 in FY2022/23 RESOLUTION NO. 22-308 RESOLUTION AUTHORIZING STAFF TO PURCHASE ELECTRIC DISTRIBUTION UTILITY POLES IN AN AMOUNT UP TO $50,000 IN FY 2022/23 FOR THE CITY OF AMES,IOWA WHEREAS, this is for the purchase of electric distribution utility poles needed to meet the anticipated needs of the Electric Services Department for new construction and maintenance; and, WHEREAS, these poles will be purchased from an Electric Department inventory asset account and charged to the appropriate operations account as the poles are put into use; and, WHEREAS,generally,over a million dollars in assets are available in the Electric inventory at any given time for use in new service and maintenance activities; and, WHEREAS,the contract would be to provide electric utility poles for the period from June 14,2022 through June 30,2023 and the contract would include a provision that would allow the City to renew the contract for up to four additional one-year terms; and, WHEREAS,under the proposed contract,poles would be purchased at the City's discretion which may be quarterly or on an as-needed basis, and this will provide the City with flexible inventory management and helps to reduce the need for storage space; and, WHEREAS,bid prices are exclusive of sales tax,which are applicable to the purchase of this equipment and are paid directly by the utility; and, WHEREAS,on May 4,2022,an Invitation to Bid document was issued to 201 firms and on May 18, 2022, one bid was received from Bell Lumber & Pole Company of New Brighton, Minnesota; and, WHEREAS, the evaluation of the bid indicated that three years' worth of poles, if ordered under the proposed contract with Bell Lumber&Pole Company, would cost$106,268; and, WHEREAS,this amount is a substantial increase from the cost for the same poles if ordered from the vendor that is due to expire;however,the protective treatment requirement in the proposed contract with Bell Lumber&Pole Company is a different,costlier specification than required under previous contracts, and this is due to a regulatory change regarding the acceptable protective treatment; and, WHEREAS, it is noted that typically no contract amount is authorized, since payments will be made as the poles are purchased; however, staff is requesting that staff s authority to purchase poles under this contract not exceed the City Manager's purchasing authority, which is $50,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the authorization for staff to purchase Electric Services Utility Poles in an amount up to$50,000 for FY 2022/23 is hereby approved. ADOPTED THIS 14`h day of June, 2022. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Rollins Voting nay: None Absent: Junck Resolution declared adopted and signed by the Mayor this 14' day of June, 2022.