HomeMy WebLinkAbout2005-011 CONT Addendum #1 - Osmose Utilities
January 12, 2005
Acceptance COpy
Mr. Scott Johnson
Operations Superintendent
City of Ashland
90 North Mountain Avenue
Ashland, Oregon 97520
RE: Addendum #1 Price Increase Proposal for 2005
Installation of Osmo-C- Truss
Dear Mr. Johnson,
At the request of our Area Director, Brian Smith, Osmose Utilities Services, Inc. (Contractor) is
pleased to continue working under the existing contract for the City of Ashland in 2005, dated
September 5,2003, for the Installation of Osmo-C-Truss. However, we do propose a change to the
existing price schedule based on the change in the steel industry. Below is an explanation of some
of changes to the steel market.
Osmose has provided you with pricing for turn-key pole restoration in good faith, based on
prevailing costs for labor and materials, including steel and fuel. For the past decade steel raw
material costs have been fairly stable. In 2003 dramtic increases in steel costs impacted the nation's
and the world's economy. Our company was forced to ask our customers for price adjustments tied
directly to cost increases, in order to remain viable. Going forward, we seek the ability to review and
update pole restoration prices with City of Ashland on a no longer than biannual basis. Current
market conditions have forced us to take this position. Frequent review allows us to provide the best
current price instead of taking into account possible future increases, and fairly shares the risk of
rising steel costs, as well as declines. We are pleased to report that our supplier has agreed to firm
pricing until June 2005, and we would hold our prices firm until that time. After we receive the new
costs in June for the steel we would send new price schedules to The City of Ashland reflective of the
increase or decrease of said steel costs. The new costs would then become affective in July of
2005.
Steel is manufactured from raw materials such as coking coal, coke, iron ore, limestone and
scrap steel. The shrinking value of the dollar has pushed up the cost of all mineral commodities.
Scrap steel is a major component of new steel, often comprising over 500/0 of the raw materials used.
Since scrap is such an important element of steel production, the cost of steel will fluctuate with the
cost of scrap steel.
Osmose Utilities Services, Inc.
16421 N. Tatum Blvd., Suite 207 · Phoenix, AZ 85032
602-569-5632 · Fax 602-569-5633
Until recently the cost of scrap steel was stable. Growth of the Chinese and Indian economies
has changed the market for scrap steel. In June of 2003 scrap steel sold for $68/ton. By July 2004
the price for NO.1 busheling had increased to $375/ton. This rapid change in price has caused steel
makers to raise steel prices as well as instituting a scrap surcharge on each order.
To compound the problem, other materials such as coke, natural gas, electricity and shipping
costs have also increased. All these factors have created the most volatile steel market since WWII.
Please see the attached Price Schedule
All we would need to make this a part of the existing contract between Osmose Utilities
Services, Inc., and City of Ashland, would be the return of a fully-executed Acceptance Copy to our
Phoenix address.
Should you have any questions, concerns or need any additional information, please feel free
to contact our Area Director, Brian Smith (360-666-1483), our District Manager, Gary Herge (503-
618-7339) or myself at our Phoenix office.
Very Truly Yours,
do-- /I In'hjH
Enclosures
,,&~ L ~
Signature of Acceptance "\
UL ;z;..tV I'C..l'b'uet-
Printed Name
t:1 N4-1t/CC 2J1/J.Sq~
Title
/ /z.7Ar
Date of Acceptance
James H. McGiffert
Vice President, Pacific Region
Osmose Utilities Services
JHM/whh
cc: Buffalo
B. Smith
G. Herge
~)/) /):3 C:j 6d
u . .
~; '1tJ /r/fi &c" r:;c7;2~OO
Price Schedule
City of Ashland NESC-B OSMO-C- TRUSS PRICING 12-Jan-oS
POLE C L A S S
H3 H2 HI LENGTH 1 2 3 4 5 6 7
25 $544.75 $544.75 $492.29 $492.29 $480.57 $476.54 $476.54
9xl0 9xl0 8xl0 8xlO 7xl0 6xl0 6xlO
30 $576.22 $544.75 $544.75 $492.29 $492.29 $480.57 $476.54
980xlO 9xl0 9xl0 8xl0 8xl0 7xlO 6xl0
35 $633.37 $576.22 $544.75 $544.75 $492.29 $480.57 $476.54
1080xll 980xl0 9xl0 9xl0 8xl0 7xl0 6xl0
40 $633.37 $633.37 $576.22 $544.75 $544.75 $492.29
1080xll 1080xll 980xl0 9xl0 9xl0 8xl0
45 $679.41 $633.37 $576.22 $544.75 $544.75 $492.29
1180xll 1080xll 980xl0 9xl0 9xl0 8xl0
50 $724.15 $679.41 $633.37 $576.22 $544.75
1280xll 1180xll 1080xll 980xl0 9xl0
55 $724.15 $679.41 $633.37 $576.22
1280xll 1180xll 1080xll 980xl0
$950.02 $853.30 60 $793.97 $724.15 $679.41 $633.37
1680x12 1480xll 1380xll 1280xll 1180xll 1080xll
$1,239.30 $1,133.10 $921.42 65 $853.30 $724.15 $679.41
2-1280xll 2-1180xll 1580x12 1480xll 1280xll 1180xll
$1,332.76 $1,239.30 $950.02 70 $853.30 $793.97 $679.41
2-1380xll 2-1280xll 1680x12 1480xll 1380xll 1180xll
$1,332.76 $1,239.30 $1,133.10 75 $921.42 $793.97 $724.15
2-1380xll 2-1280xll 2-1180xll 1580x12 1380xll 1280xll
$1,455.82 $1,332.76 $1,239.30 80 $950.02 $853.30 $724.15
2-1480xll 2-1380xll 2-128Oxll 1680x12 1480xll 1280xll
$1,455.82 $1,332.76 $1,239.30 85 $950.02 $853.30 $793.97
2-1480xl1 2-1380xll 2-1280xl1 1680x12 1480xll 1380xll
$1,588.43 $1,455.82 $1,332.76 90 $1,133.10 $921.42 $793.97
2-1580x12 2-1480xll 2-1380xll 2-1180xll 1580x12 1380xll
$1,646.15 $1,455.82 $1,332.76 95 $1,239.30 $921.42
2-1680x12 2-1480xll 2-1380xl1 2-1280xll 1580x12
$1,646.15 $1,588.43 $1,332.76 100 $1,239.30 $950.02
2-1680x12 2-1580x12 2-1380xll 2-1280xll 1680x12
FENCES
RISERS
PRICES
39.44
165.00
2.85
50.00
50.00
ADDERS
PRICES
ADDERS
PRIV PROP
UG CABLE
STEPS
CONCRETE
V REPORT
PRICES
41.65
13.69
12.94
34.27
38.90
ADDERS
REJECTED
Drop Harnrr
Flu rod .s"x3"/rod
05CT -City of Ashland-1-1 0-05.xls
I Scott Johnson - Poles, for C-truss
From:
To:
Date:
Subject:
Scott Johnson
Jseely@osmose.com
1/11/2005 12:05:38 PM
Poles for C-truss
~,'j
J' C~
paQe1l
#- 039i?S
WLP poles-12
I have high lighted the poles to be c-trussed. I went ahead and itemized the list. Let me know if this is ok.
1 - 50/3
10 - 45/3
1 - 35/3
DFP poles-4
4 - 45/3
WCP poles -1
1 - 45/3
cc:
Scott Johnson
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CITY OF ASHLAND
20 E MAIN ST.
ASHLAND, OR 97520
(541) 488-5300
CITY RECORDER'S COpy
I
Page 1 / 1
DATE
7/1/2004
PO NUMBER
03983
VENDOR: 006890
OSMOSE UTILITIES SERVICES INC
16421 N TATUM BLVD STE 207
PHOENIX, AZ 85032
SHIP TO: Ashland Electric Department
(541 ) 488-5354
90 N MOUNTAIN
ASHLAND, OR 97520
FOB Point:
Terms: Net
Req. Del. Date: 2/14/2003
Speciallnst:
Req. No.:
Dept.: ELECTRIC
Contact: D Wanderscheid/S Johnson
Confirming? No
BILL TO: Account Payable
20 EAST MAIN ST
541-552-2028
ASHLAND, OR 97520
E 690.11.18.00.602400
68 444.09
/. 0'./ /
M-- ~- . /.JPy
Aut ized Signature
VENDOR COPY
I