2002 AGN MAY 21 I12 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of May 21, 2002 Item #0 TO: Honorable Mayor and Council Members r, g FROM: Dilu DeAlwis, Finance Director yY SUBJECT: Award of Bid for Various Transformers for the Electric Utility to Wesco Utility in the Amount of $17,549.25 DATE: May S, 2002 BACKGROUND: The Electric Utility Department purchases transformers into Electric Stores 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 that goes bad in the system. Back-up transformers are necessary, due to the long delivery time. At this time, the Electric Utility has a requirement for various sizes of pad mount transformers, one 750 KVA to be used at a sewer lift station and two 150 KVA to be used as back up. DISCUSSION/ANA LYSIS: On April 11, the Utilities Department posted a Notice Inviting Bid for these transformers. A bid opening was held at 11:30 A.M., May 7, 2002, at the Corporate Yard. Two bids were received and evaluated. A Bid Analysis is attached showing the price and delivery quoted by each vendor. The recommended vendor's price is underlined for each size transformer. The total of bid award is listed at the bottom for each recommended vendor. Also attached is a Transformer Load Loss Evaluation. This evaluation shows the true cost of the transformer over its useful lifetime, using a combination of loss calculations supplied by the transformer manufacturer and the unit price quoted by the vendor. The lowest evaluated cost for each transformer is underlined. The recommendations are made from the result of this evaluation ALTERNATIVES: The City can decide to not purchase the back-up transformers. However, if an existing transformer fails the customer(s) may be without service for 7-8 weeks, as that is the lead-time for these transformers. FISCAL IMPACT: These transformers are purchased into Electric Stores inventory account number 520-1500-154. The transformers are charged to the appropriate budgeted account, as they are needed. ENVIRONMENTAL IMPACT: None. RECOMMENDATION: Staff recommends award of bid for various transformers to Wesco Utility in the Amount of $17,549.25. Report prepared by Rebecca Gallegos, Buyer Attachments: (2) Bid Analysis Transformer Load Loss Evaluation TEAM City Attorney: City Manager: Page 1 of 1 Finance Director: OTHER: