Coldwater BPU approves $222,057.78 purchase of 4-0/15 kV cable after procurement oversight

The Coldwater Board of Public Utilities voted to approve formal acceptance of a 4-0/15 kV cable shipment that arrived in November 2024 and cost $222,057.78.

Board members approved the purchase after staff said the order had been placed verbally with vendor Stuart Irby and the purchase did not follow the board's standard written procurement process. John (staff member) told the board the cable had been ordered in June 2023 and arrived about 17 months later, creating an unexpected accounting and oversight issue.

The discussion centered on why the order was placed without written documentation. John said the utility previously maintained stock through a vendor arrangement managed by PowerLine Supply, which allowed the utility to pay as stock was pulled. In 2021 the utility moved to a BMI contract with Border States that required paying full cost as material was used. Minimum-order requirements and long lead times contributed to the decision to place the larger order, John said. “We failed to follow our purchase policy,” he said, and added the matter was being brought to the board “for transparency.”

John estimated the cable would last roughly three years under current usage but acknowledged uncertainty about future development. Board members moved and seconded approval; the motion passed on a voice vote (no roll call tally recorded in the transcript).

Staff said they had discussed where the procurement process failed and noted reliance on verbal vendor commitments as a factor; no additional formal disciplinary or procedural changes were recorded on the record at the meeting.

The board recorded no budget impact to fiscal year 2023–24 because the material arrived after that period, according to staff.