Committee Approves Fuel, Cable, Fleet Procurement Measures

The Government Services Committee met on May 10, 2022, to approve critical procurement measures, maintenance contracts, and vehicle purchases to ensure city operations remain uninterrupted amid market and supply chain challenges.

Meeting Overview

The 12-minute meeting focused on city procurement and maintenance approvals, including:

• Spot buying for gasoline, diesel fuel, cable, and transformers

• Blanket quote acceptance for Oconite cable

• Three-year service agreement for valve exercising and leak detection

• Blanket authorization for FY23 vehicle and equipment purchases

Date: May 10, 2022Duration: 12 minutesLocation: Government Services Committee Meeting

Spot Buying for Fuel and Cable

The committee approved waiving formal bid procedures for gasoline, diesel fuel, cable, and transformers for Fiscal Year 2022–2023.

Key Points:

• Spot buying allows the city to solicit daily quotes from multiple vendors.

• Ensures competitive pricing and adjusts for market volatility.

• Recent price increases remain within budgeted expectations.

Decisions:

• Resolution for fuel spot buying approved unanimously.

• Resolution for cable and transformer spot buying approved unanimously.

Oconite Cable Blanket Quote

The electric division requested approval to accept a blanket quote from Anexter Inc. for Oconite cable.

Key Points:

• Oconite cable is standardized due to proven reliability.

• Blanket quote allows flexibility with fluctuating metal prices.

• Ensures timely procurement without delays caused by fixed long-term pricing.

Decision: Resolution approved unanimously.

Valve Exercise and Leak Detection Service

A three-year service agreement with EMI Simpson Company was approved to maintain the city's water system.

Key Points:

• Includes exercising ~1,300 valves and leak detection along 230–240 miles of water main annually.

• EMI Simpson Company was the sole bidder; prior contractor did not bid due to restructuring.

• Provides precise leak location data for timely repairs.

Decision: Service agreement approved unanimously.

Blanket Vehicle and Equipment Purchase for FY23

The committee approved blanket authorization for purchasing vehicles and equipment budgeted for Fiscal Year 2023.

Key Points:

• Severe global supply chain disruptions make vehicle procurement challenging.

• Many manufacturers are not accepting new orders, including heavy-duty trucks.

• Blanket authorization allows the city to purchase vehicles quickly when available.

• Sale or trade of replaced vehicles included to manage fleet effectively.

• Authorization is limited to FY23 budgeted amounts.

Decision: Blanket purchase resolution approved unanimously.

Important Notes

• All resolutions received 8–0 unanimous approval.

• Spot buying strategies provide flexibility against volatile market prices.

• Supply chain issues are prompting proactive procurement measures to maintain essential city services.

• Some existing city vehicles are inoperable, highlighting the importance of timely fleet updates.

Attendees

• Council Members: Hey Lightner, Lencioni, Warbal (Alt Thurman Warbal), Petrella

• Chief (participated in discussions on ambulances)

• Unnamed staff members presenting procurement items

Conclusions

The May 10 meeting demonstrated the committee’s proactive approach to maintaining city operations in the face of market volatility and supply chain challenges. By approving spot buying, service agreements, and blanket vehicle purchases, the city ensures reliable fuel supply, efficient electric and water services, and an operational fleet.

Final Verdict: Strategic procurement measures approved will allow the city to remain flexible, cost-effective, and responsive to infrastructure needs, protecting essential services for residents throughout FY23.

FAQs

What is spot buying and why was it approved?

Spot buying lets the city request daily vendor quotes for fuel and cable, ensuring competitive prices amid market volatility.

Who supplies the Oconite cable?

Anexter Inc. provides the Oconite cable under a blanket quote, offering reliable procurement despite fluctuating metal prices.

What does the valve exercise and leak detection service cover?

EMI Simpson Company will maintain ~1,300 valves and detect leaks along 230–240 miles of water mains annually.

Why did the city approve blanket vehicle purchases?

Supply chain shortages make vehicles hard to procure, so blanket approval allows quick purchases within FY23 budget limits.

What was the outcome of the May 10, 2022 meeting?

All resolutions, including spot buying and procurement contracts, were approved unanimously to ensure operational flexibility.