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Staff Report to the Mayor and City Council <br />Subject: Award of Bid for Various Transformers <br />Date: May 18, 2010 <br />Page 2 <br />ISSUES/ANALYSIS <br />The bids were evaluated as to compliance with the specifications. Distribution transformers are <br />also evaluated for the total life cycle cost over its useful lifetime. This evaluation is performed <br />using a combination of loss calculations supplied by the transformer manufacturer and the unit <br />cost quoted by the vendor, and demonstrates the cost of the transformer over its "in-service" life. <br />The transformer that loses the lease over the useful life results in the lowest cost of the <br />equipment. The formula used to evaluate the lowest cost bid was provided to potential bidders in <br />the bid documents. <br />A Transformer Load Loss Evaluation showing the evaluated cost of the transformers over their <br />useful lifetime is attached. A Bid Analysis, showing the purchase price and delivery times quoted <br />by each vendor is also attached. The recommended vendor's price is underlined for each vendor, <br />with the total amount for each recommended vendor at the bottom. <br />FISCAL IMPACTS <br />Funds are budgeted and available in the Electric Utility Department's New Development <br />expense account number 520-8000-8008-3890-0107-000 for Fiscal Year 09/10. <br />ALTERNATIVES <br />1. City Council may reject all bids and direct staff to reissue the Notice Inviting Bids. <br />2. City Council may provide alternate direction to staff. <br />ATTACHMENTS <br />Bid Analysis <br />Transformer Load Loss Evaluation <br />