2004-107S:\Our D ocumen ts\Or dinah ces\04\Ch an ge Order-Techline-2,doc
AN ORDINANCE OF THE CITY OF DENTON APPROVING AND RATIFYING A CHANGE
ORDER FOR A CONTRACT BETWEEN THE CITY OF DENTON AND TECHLINE-FORT
WORTH FOR THE SUPPLYING OF COPPER AND ALUMINUM WIRE; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, pursuant to City Council approval under Ordinance No. 2003-241, on August
19, 2003 the City of Denton and Techline-Fort Worth (the "Vendor") entered into a contract for the
supplying of copper and aluminum wire (the "Contract"); and
WHEREAS, the actual quantities ordered and received by the City under the Contract far
exceed the estimates contained in the Contract;
WHEREAS, due to the dramatic increase in the cost and value of this product since the
Contract was entered into and because of the dramatic increase in the quantities needed by the City,
the Vendor has requested a change order, a copy of which is attached hereto and made a part hereof
by reference (the "Change Order"); and
WHEREAS, the Change Order involves increases that do not exceed 25% of the original
unit prices for the copper and aluminum wire; and
WHEREAS, the City Council finds that the Change Order serves valid public and municipal
purposes and is in the public interest; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by
reference into the body of this ordinance as if fully set forth herein.
SECTION 2. The Change Order is hereby approved and ratified. The City Manager, or his
designee, is hereby authorized to execute the Change Order on behalf of the City and to make the
expenditure of funds provided for by the Change Order. All prior actions consistent with the Change
Order are hereby authorized and ratified.
SECTION 3. This Change Order is also adopted pursuant to Section 252.022(c) of the
Local Government Code. The expenditures provided for by the Change Order are for Denton
Municipal Electric ("DME"), a municipally owned electric utility. The City Council is the governing
body of DME. Due to the dramatic increase in the cost of copper and aluminum wire it is necessary
that they be purchased by extending existing vendor contracts instead of competitively bidding the
purchases. An investigation of the market has determined that a competitive bidding process would
yield prices that would more than double the prices provided for in the Change Order. DME is
hereby authorized to extend existing contracts for aluminum and copper wire as evidenced by the
Change Order. This procedure of extending existing contracts without competitive bids will remain
in effect through August 31, 2005. After that time the City Council will reassess the situation to
ascertain whether the market has stabilized to the extent that competitive bidding is prudent. The
City Council hereby finds that the City and DME will be substantially harmed if required to
competitively bid copper and aluminum wire during this time period. The City Council further finds
that the Change Order and the procurement procedures adopted herein serve a valid public purpose
by saving the City and DME substantially expenses that would be incmred if the aluminum and
copper wire were purchased through the competitive bidding process. This ordinance shall also
constitute a resolution of the City Council of the City of Denton.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APeROVED this the b~/~ dayof ~ ,2004.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
Page 2
Karen Smith
City of Denton
901 B. Texas Street
Denton, Texas 76209
Due to the unforeseeable changes in the market place over the last two quarters, Techllne, Inc.
in conjunction with Pirelli Power Cables and DME has negotiated new pdc~ng for contrast 3043,
The increasing cost of copper and aluminum, which has increased exponan~l~y made this
agreement necessary to secure the best pricing for DME. This contract will be valid March 31,
2004 through August 31, 2005. Below are the new prices for cable:
280-804)56 Cable, AL4/0 1-Phese, Prfmary, FullConcentrlc
SZ08?5/FT
280-80-040 Cable, A L # 2 3-Phase, P Hmary, 1/3 R educed Neutral
280-804)55 Cable, A L 4/0 1-Phese, P rlmary, 1/3 R eduned Neutra]
280.804)10 Cable, A L # 2 1 -Phase, P rimmy, Full Concentric
$1.10/FT
$3.675/FT
$1.6625/FT
280-80-100 Cable, 5 00 C u, E PR P d ma~j, ~ hlelded
$4~1875/FT
280-80-t 10 Cable, 7 50 C u, E PR P rlmapj, Shielded
S5.S2s~-r
28035-230 Cable, 3 50 (Wesleyan/XLP) $1.63/FT
280-80-060 Cable, 4/0 (Sweetbrlar/XLP) $,93/FT
280-80-070 Cable, 210 (Conveme/XL.P) $.71/FT
280-16-220 Wire, 4/0 8 oft D fawn B are Copper, 1 9-~tnmd $.9125/FT
***The above pricing is ba~ed on a quantity of SOO.OOOLB$ Copper at $1.3,~b. COME~ and
Aluminum at $.831b, Metals Week U.S, Transaction.
Michael Stone / Shawn Holloway
Outside Sales / Inside Sales