Title
Approval of Contract Amendment and Issuance of Purchase Orders for Herbicides (NB)
Explanation
Vegetation Management purchases herbicides for chemical vegetation control on GRU rights-of-way, substations, power plant sites and other properties as may be required. Vegetation Management has implemented an aggressive herbicide program for its rights-of-way to control long term costs for vegetation control.
The City Commission approved the award of a contract to Helena Chemical Company for herbicides on September 23, 2002 for a three year period. The contract allows for two (2) twelve-month extensions of the contract based upon mutual agreement of the parties and negotiation of the contract prices. Helena Chemical Company has agreed to extend the contract and has submitted new pricing, which represents decreases on certain items purchased by GRU. This extension represents the first of the two available under this contract.
Helena Chemical has been an excellent supplier to GRU for several years. Helena Chemical's pricing remains extremely competitive for the market. Therefore, staff does not believe there would be any cost benefit gained by rebidding the contract at this time.
Recommendations
The City Commission authorize the General Manager or his designee to execute an amendment to extend the contract with Helena Chemical Company for herbicides for GRU's Vegetation Management Division for a one-year period and approve the issuance of a purchase order in an amount not to exceed $50,000.00, subject to the final appropriation of funds for FY 2006.
Fiscal Note
Funds for these purchases have been included in the Proposed Operation and Maintenance portion of Energy Delivery's FY 2006 budget.
Drafter
Prepared by: David E. Beaulieu, Assistant General Manager for Energy Delivery
Submitted by: Michael L. Kurtz, General Manager