2004 AGN JAN 20 I04 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JANUARY 20, 2004 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Tom Clarke, Electric Utility Director_v(/� SUBJECT: Award of Bid for Various Transformers to Pauwels Transformers in the Amount of $84,125.81 DATE: December 29, 2003 Item #4 BACKGROUND: The City 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 padmount transformers to be used for back-up. DISCUSSION/ANALYSIS: On November 24, 2003, the Utilities Department posted a Notice Inviting Bids for these transformers. Bid packages were mailed to five suppliers of distribution transformers. A bid opening was held at 2:00 P.M. on December 16, 2003, at the Electric Department Administrative offices. Four 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 the recommended vendor. Also attached is a Transformer Load Loss Evaluation. This evaluation shows the life cycle 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. To evaluate the lowest cost bid, the life cycle costs demonstrate the cost of the transformer over its "in-service" life, taking into consideration the degradation over time. The transformer that loses the least over the useful life results in the lowest cost of the equipment. It is a function of which manufacturer has the least loss. The lowest evaluated cost for each transformer is underlined and recommendations are made from the result of this evaluation. FINANCIAL 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.