(6)AR 060308 Marbelite Streetlight

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JUNE 3, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Jeannette Olko, Electric Utility General Manager ITEM #7 SUBJECT: Waive Formal Bidding Requirement Per Municipal Code 3.08.140(b)(e), and Approve Sole -Source Purchase of Marbelite Streetlight Standards for the Electric Utility to Ameron Pole Products, CIO Pacific Lighting Sales, Inc., in the amount of $76,287.00. DATE: May 27, 2008 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 a requirement to install marbelite streetlight standards for the Valley Blvd. Realignment Project, but does not have a sufficient quantity on hand. DISCUSSIONIANALYSIS: 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. Several years ago, staff was able to locate another manufacturer of concrete streetlight poles, Stress Crete Products, through one of our electrical distributors. Staff has 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 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. 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, Section (b) allows for the competitive bidding requirement, either formal or informal, to be waived for non-public projects, when there is no competitive market. Specifically, Section (b) states, "When the City Council determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process". In addition, Municipal Code 3.08.140 Section (e) also states in part, "When the City Manager determines that it is in the best interest of the City and its administrative operations to dispense with public bidding for non-public projects under this chapter." The City has determined this requirement to be sole source since no competitive market exists for the Ameron Product. In addition, the City Manager, and the City, in the past have determined that it is in the best interest of the City to focus its purchases on Ameron for uniformity purposes. On May 8, 2008, 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 streetlight standards, Model 5B1-