2005 AGN DEC 20 I17 - Laserfiche WebLink

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In the evaluation process, staff found that due to the devastation of the recent hurricanes, the lead time for most transformer manufacturers had indeed increased significantly. In the case of bid line items #3 and #4, the lead time quoted by the bidder with the lowest evaluated cost is not acceptable because the Utility is in critical need of these two size transformers (750 kva and 1500 kva). There are projects in progress which will require the installation of these size transformers in the next four to six weeks and we have sufficient quantities for these projects. However, using the transformers currently in the City's inventory will leave the City without back-up transformers in the event another transformer of the same size fails in the field. Based on this information, staff has determined it is in the best interest of the City to reject all bids for Items #3 and #4 only, and for the City Council to "direct the City Manager to dispense with public bidding for non-public projects", per Section 3.08.140(e) of the Colton Municipal Code and authorize the City Manager to purchase the 750 kva and 1500 kva transformers from Southwest Power at the cost set forth in their bid. ALTERNATIVES: Council could award all items to the bidder(s) with the lowest evaluated cost. However, this would leave the Electric Utility in a vulnerable position while waiting five months for the delivery of transformers. If our back-up 750 kva and 1500 kva transformers are used for the development projects in the next three to sixr weeks as planned, and an existing transformer of the same size fails in the field, we will not have a transformer available to replace it, which would create a serious impact to our customers for up to four months. In extreme situations, the Electric Utility could over -capacitate and use a larger transformer. However, this could cause other problems in the system. In addition, the Electric Utility cannot use smaller transformers to replace a larger one. 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 put into service. ENVIRONMENTAL IMPACT: None. CONFLICT OF INTEREST — Gift Disclosure Requirements (Exact Company Name) Pauwels Transformers, Inc. President: (Name & Title) Francis Robberechts Contact: (Name) Diana Parker (Exact Company Name) Utility Products Supply. President: (Name & Title) David May Contact: (Name) Mike Dabner or Martin Trujillo (Exact Company Name) Southwest Power, Inc. President: (Name & Title) Jim Furber Contact: (Name) Joe Stein Page 2 of 3