AR 020706 Award of Contract/Ameron Pole Products

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF FEBRUARY 7, 2006 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Award of Sole Source Contract to Ameron Pole Products for Marbelite Streetlight Standards in the amount of $94,130.40 DATE: January 30, 2006 BACKGROUND: The City purchases Marbelite streetlight standards into the Electric Stores Inventory for use by the Electric Department on an "as required" basis. When the inventory levels reach a predetermined review level, streetlight standards are reordered based on projected usage as determined by the City's Electric Engineering Division. The lead time for concrete poles is six to fourteen weeks. The City currently has several development projects that will require the use of seventy to eighty of these standards in the next six weeks to six months. The City currently has only twenty one of these poles in stock at our warehouse. DISCUSSION/ANALYSIS: In an effort to keep uniformity in the City's streetlight lighting system, the Electrical Engineering Division evaluated and approved two manufacturers of Marbelite streetlight standards in 1981. The approved manufacturers were Union Metal Corp. and Ameron Pole Products, Inc. Union Metal Corp. previously discontinued their line of concrete products, leaving Ameron Pole Products as the only approved manufacturer. Two years ago, staff was able to locate another manufacturer of concrete streetlight poles, Stress Crete Products, through one of our electrical distributors. Staff had asked that Stress Crete provide a sampling of their product so that it could be evaluated by our staff to see if their product is equivalent, and if it will match our existing designs. As of this writing, Stress Crete still has not responded to our requests. Furthermore, when previously checked, the prices for Stress Crete were nearly 120% greater than the price of the Ameron product. For future needs, staff is continuing to work with our distributors to find a suitable equivalent to the approved specification so competitive bids may be obtained. The Colton Municipal Code, Title 3, Chapter 3.08.140 states, in part, as follows: "...competitive bidding, either formal or informal, is not required for non-public projects in the situations provided for in this section. Under such conditions, any alternative procedure, including no bidding, may be used with the City Manager's approval." "(b) Na Competitive Market: When the City Council determines, in accordance with applicable law, that a competitive market does not exist, and that no competitive advantages will be gained by the public bidding process." On January 11, 2006, the Electric Utility Department contacted Ameron Pole products to verify distributors for their product. They have one distributor for Southern California customers, Pacific Lighting Sales, Inc. Staff requested a quote from Pacific Lighting Sales, Inc. for Marbelite