(8)AR 061510 Award of Bid/Transformers

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DATE: TO: FROM: PREPARED BY: SUBJECT: ITEM NO. 07 STAFF REPORT JUNE 15, 2010 C� HONORABLE MAYOR AND CITY COUNCIL ROD FOSTER, CITY MANAGER/GENERAL MANAGER JAMES EARHART, INTERIM DIRECTOR OF UTILITY SERVICES AWARD OF BID FOR VARIOUS TRANSFORMERS FOR TH ELECTRIC UTILITY DEPARTMENT TO ERMCO IN THE AMOUNT OF $8,149.73 AND TO HD SUPPLY IN THE AMOUNT OF $43,526.95 RECOMMENDED ACTION It is recommended that City Council award the Bid for the Various Size Transformers for the Electric Utility department, Bid Items 1 and 3 to ERMCO in the amount of $8,149.73, and Bid Items 2 and 4 to HD Supply in the amount of $43,526.95. GOAL STATEMENT The proposed action will support the City's goal to provide safe, reliable, affordable, and environmentally sustainable electric service. BACKGROUND The City purchases distribution transformers into inventory when the need arises to upgrade, replace, or install a new transformer for an electric customer. The City also orders back-up transformers to be used to replace a transformer if it fails in the system. Back-up transformers are necessary due to long delivery times. At this time, the Electric Utility has a requirement for various size of pole and pad mount transformers to be used for both back-up and upcoming customer projects. On April 5, 2010, staff issued a Notice Inviting Bids for the Purchase of Various Size Transformers for the Electric Utility Department, NIB -RG -1006. The Notice Inviting Bids and related bid documents were distributed through BidNet, the City's online bid system. Forty-nine vendors were notified of the bid opportunity through BidNet. The Notice Inviting bids was also posted at City Hall. A public bid opening was held at 10:30 A.M., on April 20, 2010, at the Electric Department Administrative Offices. Eight bids were received.