HomeMy WebLinkAbout10 Consideration of an Annual Contract for the Purchase of Wood PolesAgenda 1
T U KEE D 11 N E
Public Utility District
CONSENT
To: Board of Directors
From: Joe Horvath
Date: February 20, 2013
Subject: Consideration of an Annual Contract for the Purchase of Wood
Poles
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for expenditures in excess of $15,000.
2. HISTORY
The District's annual purchase of wood poles is required to meet our new construction
and pole replacement obligations. A bid package for the procurement of wood poles
was prepared using a "market basket" approach to select the most competitive vendor.
This approach compares the aggregate cost across a range of pole heights and
classes. The basis for selection is the lowest "market basket" price.
3. NEW INFORMATION
Four bids were received and opened on February 12, 2013. The following is a
summary of the bid information:
Total Market
Supplier Responsive Basket Price
Stella -Jones Corp. Yes $6,214
Bell Lumber & Pole Co. Yes $6,435
The Oeser Co. Yes $7,082
Bridgewell Resources Yes $7,274
The total price shown above is the "market basket" price for a range of pole heights
and classes as needed by the District. This price is not the contract price but is used to
establishes the lowest cost supplier of wood poles. The District will order a variety of
pole types and quantities throughout the year on an as -needed basis for our pole
replacement program. Based upon the proposed costs and the District's anticipated
pole needs in FY13, a total contract value of $75,000 is requested.
4. FISCAL IMPACT
Funding for wood poles is included in the FY13 operating budget.
5. RECOMMENDATION
Award the contract for the purchase of wood poles to Stella -Jones Corporation for an
amount not to exceed $75,000.
Stephen Hollabaugh
Assistant General Manager
Michael D. Holley
General Manager