HomeMy WebLinkAboutAgenda Report - August 5, 1987 (86)CITY COUNC1L MEETING
AUGUST 5, 1987
RESOLUTION CONCURRING
IN STAFF ACTION
REGARDING AWARD OF
BID FOR ALUMINUM CABLE
RES. NO. 87-95 Council adopted Resolution No. 87-95 concurring with staff
action regarding bid for, and purchase of, 45,000 feet of
CC-U(d) 477 MCM Bare Aluminum electrical cable.
CC -20
Pursuant to Lodi Municipal Code 3.20.100 (Open Market
4 Procedure) bids will be sought from the current list of
cable suppliers and bids will be opened August 7, 1987.
The purchase order will be awarded immediately thereafter
to the lowest responsible bidder meeting the bid
specifications.
The cable will be used primarily for three projects
scheduled for late 1987. The estimated cost is $27,000 for
which adequate funds are available from the Electric
Department's operating budget.
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COUNCIL CO MUINICATIPN
TO: THE .CITY COUNCIL
FROM. THE CITY MANAGER'S OFFICE August 5, 1987
SUBJECT: MopT RESOLUTION C0NC17P.itIIC IN STAFp ACTION REGARDING AWARD OF BID FOR
AiMINUM CABLE
Recommended Action: That the City Council adopt a Resolution concurring %�ith
staff action regarding bid for, and purchase of 45,000 feet of 477 ". Bare
Aluminum electrical cable. Staff action will follow rules set forth in LiiC
3.20.100 (Open Market Procedure), thereby expediting the bid process for reasons
described in E>.hibit A, attached.
Background Information: The cable will be used primarily for three projects
scheduled for late 1987, as shown on Exhibit A. The estimated cost of the
purchase is $27,000, for which adequate funds are available from the Electric
Department's operating budget.
Planned Staff Action: Bids will be sought from the current list of cable
suppliers (there are ten suppliers now on the list), and bids will be opened
August 7. 'Ihe purchase order will be awarded immediately thereafter to the
lowest responsible bidder meeting the bid specifications.
cc: Director, Electric Ut;lity Department
Asst. Director, Electric Utility Department
E X 1! I B I 1 A '
M E M O R A N D U M
July 27, 1987
TO: CITY MANAGER, FINANCE DIRECTOR, UTILITY DIRECTOR
FROM: PURCHASING OFFICER
SUBJECT: PURCHASE OF 477 1,1�1 BARE ALUMINUM CONDUCTOR
RECOMMENT)ED ACTION: That the Purchasing Department immediately seek gids
for 45,000 feet of 477 Mal Bare Aluminum Conductor, and award the bid to the
lowest responsible bidder which maets the delivery timetable required by the
bid specifications.
&ACKGROND INTFORMATIONN: This cable will be used primarily for three projects
scheduled for late 1987:
General Mills 25,000 feet (estimate)
Feeder Line - Lockeford to Pine 12,600 feet "
Minton Co. 2,600 feet "
40,200 feet
The estimated cost of this purchase is $27,000. Sufficient funds are available
in the Electric Department's operating fund for this purchase.
There are two primary reasons to request exception to the formal bid procedure
or. this purchase:
1. he General Mills project timetable stipulates that all work must be
completes by December 31, 1987. Following the formal bid procedure
would. result in a September 3 date as the earliest an ,order could be
awarded. Delivery leadtime thereafter would place undue pressure
on the Utility Department to complete the work on time. To proceed
immediately with bidding would provide an additional three weeks with
which to work.
2. A tight supply market appears to be developing, with a major factor
being the status of Kaiser Aluminum's sale of their Bay Area Plant.
Kaiser has said that if they are unable to find a buyer for the plant
they will close it. A recent offer fell through, leaving a greater
likelihood of such closure in the undeterminate future.
-
Supply representatives last week indicated a growing eeliog in the industcy
want "users do not ��t to find themselves short of a�uminum coudmc�oc tbia
fall as anozcea of supply become more and more uncertain." 7he feeling is that.
the Kaiser Plaut will indeed close, resulting in a tight market with longer
leadtimes and potentially higher prices this fall'
I recommend we proceed immediately with the informal hid proce-dure.
RESOLUTION NO. 87-95
RESOLUTION CONCURRING IN STAFF ACTION REGARDING
THE AWARD OF BID FOR ALUMINUM CABLE
WHEREAS, Lodi Municipal Code Section 3.20.100 sets forth open market
procedures, thereby expediting the bidding process; and
WHEREAS, the purchasing department is desirous of seeking bids for
45,000 feet of 477 MCM Bare Aluminum Conductor for use primarily for
three projects scheduled for late 1987:
General Mills
25,00 feet (estimate)
Feeder line-Lockeford to Pine 12,600 feet
Minton Company 2,600 feet
40,240,2— 0 feet
WHEREAS, the primary reasons for requesting exception to the formal bid
procedures are:
1. The General Mills project timetable stipulates that all work
must be completed by December 31, 4.987. Following the formal
bid procedure would result in a September 3 date as the
earliest an order could be awarded. Delivery leadtime
thereafter would place undue pressure on the Utility
Department to complete the work on time. To proceed
immediately with bidding would provide an additional three
weeks with which to work.
2. A tight supply market appears to be developing, with a m,ior
factor being the status of Kaiser Aluminum's sale of ti,
Bay Area Plant. Kaiser has said that if they are unable. to
f�nd a buyer for the plant they will close it. A recent
offer fell through, leaving a greater likelihood of such
closure in the undeterminate future.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Lodi does hereby direct the purchasing department to immediately seek
bids for 45,000 feet of 477 MCM Bare Aluminum Conductor and to award
the bid to the lowest responsible bidder which meets the delivery
timetable required by the bid specifications.
Dated: August 5, 1987
87-95
I hereby certify that Resolution No. 87-95 was passed and
adopted by the City Council of the City of Lodi in a regular
meeting held August 5, 1987 by the following vote:
Ayes: Council Members - Olson, Reid, and Snider
Noes: Council Members - None
Absent: Council Members - Pinkerton and Ninchman
Alice M. Reimche
City Clerk
87-95
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