2005-332
ORDINANCE NO. 2005- 332
AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR THE
FURTHER PURCHASE OF PVC CONDUIT FOR DENTON MUNICIPAL ELECTRIC FROM
TECHLINE, INC. THE VENDOR IN BID NO. 3179; IN ACCORDANCE WITH
PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM THE
REQUIREMENTS OF COMPETITIVE BIDDING; PROVIDING FOR RETROACTIVE
APPROVAL; AND PROVIDING AN EFFECTIVE DATE (BID NO. 3179 ADDITIONAL
AUTHORITY IN THE AMOUNT OF NTE $200,000 ABOVE BID PRICE.)
WHEREAS, state law requires that certain contracts requiring an expenditure or payment
by the City in an amount exceeding $25,000 be by competitive bids, except for certain exempt
purchases as are expressly set forth in 9252.022 of the Texas Local Government Code; and
WHEREAS, Techline, Inc. has performed its Contract with the City for furnishing PVC
conduit until September 23, 2005; at that time they notified Denton Municipal Electric ("DME")
that they would no longer honor the contractual price set out in their Contract with the City; that
they would furnish additional PVC conduit subject to DME's allocation of same, but would
thereafter furnish what PVC they could to the City at an escalated cost to them, which was
quoted as presently being over 25% of the Contract price; the price of same being variable on a
weekly basis; and
WHEREAS, DME uses PVC conduit in many construction-related and maintenance
related functions, and must maintain an inventory of same to supply both functions; the City is
an entity that has contracted with Techline, Inc., which means that the City would have an
advantage over an customer who was not an existing contract customer of Techline, Inc.;
Techline, Inc. agrees to try to keep the City's contractual allocation of materials and supplies;
DME maintains a reasonable, but a fairly short inventory of PVC conduit for its operational
needs, as it has not felt that it is necessary to stockpile PVC conduit in large quantities; and
WHEREAS, in recent weeks two severe hurricanes, Katrina and Rita have seriously
damaged many of the facilities that handle the raw materials for the manufacture ofPVC conduit
on the Texas and Louisiana Gulf coasts (being chlorine, ethylene and resin); additionally, there
have been serious damage to the manufacturer's plants in that area as well; such events were
unexpected by the City of Denton; and
WHEREAS, the market for PVC conduit has gone upward sharply because of the limited
quantity and supply of same; the standard City Contract provides that either party to it may
cancel the same upon thirty days advance notice; were the vendor, Techline, Inc. to cancel its
Contract with the City; Staff is of the opinion that re-bidding the contract would not only be
problematic, because of a lack of supply; but would very likely be unsuccessful at this point in
time, that is with no bidder responding; and
WHEREAS, 9252.022(a)(2) of the Texas Local Government Code provides an exception
to competitive bidding if a procurement is necessary to preserve or proteccthe public health or
safety of the municipality's residents; the PVC conduit is necessary to supply electricity to the
citizens of the City and, due to all the factors recited herein including, without limitation, the
disruption in PVC manufacturing and supply caused by the two hurricanes, there is a calamity or
emergency or circumstances requiring the immediate purchase of PVC conduit to preserve and
protect the public health and safety of the municipality's residents; and
WHEREAS, on the 24th day of October, 2005 the Public Utilities Board discussed and
recommended by a 7-0 vote in its Open Meeting that the request for purchase of a two-month
supply of PVC conduit was well-taken; and accordingly the City has placed an order for PVC
conduit on October 24, 2005; and therefore requests that this ordinance be made effective
retroactive to October 24,2005; and
WHEREAS, the City Manager has recommended to the City Council that it is necessary
to purchase goods or services, being specifically an estimated two-month's inventory of PVC
conduit from Techline, Inc. until Staff can determine more of what the market is or will be with
regard to acquiring PVC conduit; at the prices quoted by Techline, I nc., which prices will be
determined by Techline, Inc. on the date that the PVC conduit is shipped from Techline, Inc. per
the Contract; and
WHEREAS, the Council hereby accordingly finds -that this procurement is necessary to
preserve or protect the public health or safety of the municipality's residents in accordance with
S252.022(a)(2); and also finds that the same is in the public interest; NOW THEREFORE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations and findings set forth in the preamble of this ordinance are
incorporated by reference into the body of the ordinance as if fully set forth herein.
SECTION 2 The City Council hereby determines that this procurement is necessary
because of the circumstances set forth hereinabove in this ordinance, and the purchases are
hereby approved: the following purchases of materials and supplies, as described in the "Bid No.
3179 and the Contract entered into by and between the City and Techline, Inc., referenced herein
and on file the office of the Purchasing Agent, are hereby approved:
PURCHASE
ORDER
VENDOR
AMOUNT
3179
Techline, Inc.
Varying
[NTE $200,000
above Bid Price]
SECTION 3. Because of the circumstances set out above, the City Manager or
designated employee is hereby authorized to purchase the materials and supplies described in the
attached Purchase Orders and to make payment therefore in the amounts therein stated, such
purchases being in accordance with the provisions of state law exempting such purchases by the
City from the requirements of competitive bids.
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SECTION 4. The City Council hereby agrees with the finding and action of the Public
Utilities Board and accordingly ratifies, confirms and approves, and makes this ordinance
retroactively effective as of October 24,2005.
PASSED AND APPROYED this the / ~day of L/{M ~ 2005.
~-~~
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~~ ~'-\~~ <l/
~
APPROYED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By:
S :\Our Documents\Ordinances\05\Tcchline Inc-Ordinance-Auth Purchase of I'Ve-Exceptlon.doc
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