Memorandum 13-103 Purchase Septic Tanks for Kachemak City

M E M O R A N D U M  13-103

TO:  Walt Wrede, City Manager
FROM: Carey Meyer, Public Works Director
DATE:  July 16, 2013
SUBJECT: Purchase Septic Tanks for Kachemak City Recommendations - Funding    Authorization

Public Works needs to purchase additional concrete septic tanks for use in Kachemak City. Only one tank remains in inventory. The City provides these tanks to property owners in Kachemak City that connect to the unique VGES (small diameter) sewer collection system in Kachemak City. The tanks are purchase in bulk, placed in inventory, and are paid for by each property owner when a sewer permit is issued.
In the past, Public Works has advertised for the purchase of these tanks. Consteel Concrete Company has consistently had a lower price than the other four bidders. Since the last purchase, two of the bidders no longer make these tanks. Based on quote received from the remaining two bidders; Consteel Concrete Company can provide the tanks at the lowest price.
Purchase history with Consteel is as follows:

1998 10 tanks at $1,245 each
2000 20 tanks at $1,275 each
2002 16 tanks at $1,275 each
2005 16 tanks at $1,395 each

Current Low Quote:

2013 16 tanks at $1,995 each

Recommendation:  The City Council pass a resolution awarding the 2013 VGES Concrete Septic Tank Purchase to Consteel Concrete Company of Wasilla, Alaska, in the amount of $31,920 and authorize the City Manager to execute the appropriate documents.

Fiscal Note:  Inventory Account – 200-000-1417