HomeMy WebLinkAbout#13 Stella Jones Contract AGENDA ITEM #13
Public Utility District m
MEETING DATE: September 4, 2024
TO: Board of Directors
FROM: Keith Renshaw, Electric Engineering Manager
Jared Carpenter, Electric Utility Director
SUBJECT: Consideration of Approving a Material Purchase Contract with Stella
Jones Corporation for an Amount not to Exceed $200,000.
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
A. Find Bids received for the Wood Utility Pole Procurement at the Bid Openings
held by the District on November 6, 2023, and January 24, 2024, as Non-
Responsive; and
B. Authorize the General Manager to execute a Material Purchase Contract with
Stella Jones Corporation for Wood Poles purchases for the remainder of
FY2024, in a not to exceed FY2024 purchase authorization amount of$200,000.
BACKGROUND:
District Code section 3.08.010 — Procedure for Purchase of Commodities or Equipment
Over $15,000
Wood utility poles (poles) are essential for overhead electric distribution system
construction and required for overhead distribution system maintenance, line
extensions, emergency repairs, and new overhead customer electric services.
On October 10, 2023, the District published a Request for Bids for poles with the intent
of including them in the Annual Procurement package, which was presented to the
Board on December 6, 2023. The bid opening for the October 2023 solicitation was
held on November 6, 2023. The District received two bids, both deemed non-
responsive due to administrative issues. The table below shows the bid results from the
November 6, 2023, bid opening:
Table 1: November 6, 2023, Bid Opening Results
endor Bid Schedule Total Responsive Notes:
Bid?
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Bell Lumber & Pole $33,033.00 No No wet signatures on Bid or
Company Bid Schedule.
Stella Jones $21,486.94 No No wet signatures on Bid or
Corporation Bid Schedule.
On January 5, 2024, the District published a second Request for Bids for poles. The Bid
Opening was held on January 24, 2024, and the District received two bids. Of the two
bids received, one bid was deemed responsive at the time of the bid opening. The bid
opening results for January 24, 2024 are shown in the table below:
Table 2: January 24, 2024, Bid Opening Results
endor Bid Schedule Total Responsive Notes:
Bid?
Bell Lumber & Pole $28,230.00 No No wet signatures on Bid or
Company Bid Schedule.
Technology $29,289.00 Yes None at bid opening.
International, Inc.
After the January 24, 2024, bid opening, staff performed a detailed review of the lowest
responsive bid received from Technology International, Inc. (TII). After further review,
staff identified that TII did not provide line-item pricing as required by the bid schedule,
and instead provided pricing for a one-time purchase. Staff confirmed with the bidder
that they were not able to provide line-item pricing as required by the bid schedule, and
therefore, staff had determined the bid was non-responsive.
ANALYSIS AND BODY:
After the first two failed pole bid attempts, staff published a third request for bids on July
29, 2024. The bid opening was held on August 14, 2024, with the District receiving one
bid. During the bid process, staff received questions from potential bidders and issued
two clarifying responses on August 1, 2024. The District received a letter of response
from Wilson Construction Company declining to bid. The bid opening results for August
14, 2024 are shown in the table below:
Table 3: August 14, 2024, Bid Opening Results
e/� Bid Schedule Total Responsive Notes:
Bid?
Stella Jones $16,995.78 Yes None.
Corporation
Because of the District's ongoing need for poles to support the Electric Department's
planned, development, and emergency response work, Staff recommends the Board
approve the General Manager to execute a Material Purchase Contract with Stella
Jones Corporation for Wood Poles purchases for the remainder of FY2024 for a not to
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exceed purchase authorization amount of $200,000. If approved, this contract will be
effective upon execution in September 2024 and ending December 31, 2024, with the
option to extend the contract for four additional years (option years 2025, 2026, 2027,
and 2028). For contract extension years, the contract period for pole purchases will
begin on January 1 and end December 31 each year.
This item supports the following objectives and goals identified by the District.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1 .05.030 Goals:
1. Manage for Financial Stability and Resiliency
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
FISCAL IMPACT:
The annual expenditure for poles varies year to year, and is driven by new commercial
and residential development, equipment failures, emergency work, and District O&M
and Capital projects. Customer payments offset the wood pole costs for all new
services and development projects. In FY 2023, the total expenditures for wood poles
were approximately $197,354. For 2024, staff has been unsuccessful in securing a
Material Purchase Contract through the public bidding process for wood pole
purchases. The requested purchase authorization amount for wood poles for the
remainder of FY2024 is $200,000, and is driven by planned capital work included in the
TDPUD Capital Budget for FY24-25. The requested authorization for option years will
be determined annually during the annual procurement process each year, and is
dependent on potential material cost escalations and planned projects for those option
years.
ATTACHMENTS:
None
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