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CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF MAY 5, 1998 <br />TO: HONORABLE MAYOR & CITY COUNCIL <br />APPROVAL: HENRY T. GARCIA, CITY MAN R <br />FROM: ANNA A. VEGA, FINANCE DIRECTO <br />SUBJECT: AWARD OF BID FOR TRANSFORMERS FOR THE ELECTRIC DEPARTMENT TO SOUTHWEST <br />POWER IN THE AMOUNT OF $8,389.42, WESCO UTILITY IN THE AMOUNT OF $4,022.65 AND <br />SOUTHCOAST UTILITY IN THE AMOUNT OF $84,840.20 <br />DATE: APRIL 27, 1998 <br />BACKGROUND <br />The Electric Department orders transformers into Electric Inventory in preparation for the need to upgrade, replace or <br />install a new transformer for an Electric customer. The delivery date for some of these transformers is about 3 to 5 <br />months, therefore, back-up transformers are also ordered for replacement of a faulty transformer. Some of these <br />transformers will be used for the Lang Tract and the Wastewater Treatment Plant, as well as back-up. <br />DISCUSSION/ANALYSIS <br />On March 31, 1998, Purchasing posted a Notice Inviting Bid for these transformers. Bid opening was held at 2:30 p.m., <br />April 23, 1998, in the Purchasing office. Four bids were received and evaluated. <br />A Bid Analysis is attached showing the price and delivery quoted by each vendor. (The recommended vendor's price is <br />underlined for each size transformer.) The total of bid award is listed at the bottom for each of the recommended <br />vendor. <br />Also attached is a Transformer Load Loss Evaluation. This evaluation shows the true cost of the transformer over its <br />useful lifetime, using a combination of loss calculations supplied by the transformer manufacturer and the unit price <br />quoted by the vendor. The lowest evaluated cost for each transformer is underlined. The recommendations are made <br />from the result of this evaluation. <br />ALTERNATIVES <br />None <br />FINANCIAL IMPACT <br />These transformers are purchased into Electric stores inventory account number 520-1500-154. They are charged to the <br />appropriate budgeted expense account, as they are utilized. <br />ENVIRONMENTAL IMPACT <br />None <br />RECOMMENDATION <br />Staff recommends award of bid for Item #1, 2& 4 to Southwest Power in the amount of $8,389.42, Item 3 to WESCO <br />Utility in the amount of $4,022.65 and Item #5-12 to Southcoast Utility in the amount of $84,840.20. <br />Report prepared by Mary J. Milroy, Purchasing Coordinator <br />Attachments: (2) Bid Analysis <br />Transformer Load Loss Evaluation <br />Page 1 of 1 <br />Item # 7 <br />