(5)AR 041911 Award of Bid for Various Size Transformers

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ITEM NO. 9 STAFF REPORT DATE: APRIL 19, 2011 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: ROD FOSTER, CITY MANAGER/GENERAL MANAGER l PREPARED BY: AMER JAKHER DIRECTOR OF PUBLIC WORKS & UTILITY SERVICES SUBJECT: AWARD OF BID FOR VARIOUS TRANSFORMERS FOR THE ELECTRIC UTILITY RECOMMENDED ACTION It is recommended that City Council award the Bid for Various Size Transformers for the Electric Utility Department as follows: Item 1 to Howard Industries, c/o Young & Company, in the amount of $2,001.46; Item 2 to Wesco Distribution in the amount of $3,144.96; Items 3-5 and Items 7-8 to HD Supply in the amount of $67,953.57; and Item 6 to ABB, c/o Pacific Utilities, in the amount of $4,599.01. GOAL STATEMENT The proposed action will support the City's goal to provide safe, reliable, affordable, and environmentally sustainable electric service. BACKGROUND The electric utility purchases distribution transformers into inventory when the need arises to upgrade, replace, or install a new transformer for an electric customer. The electric utility also orders back-up transformers due to long delivery times. At this time, the electric utility has a requirement for pole and pad mounted transformers to be used for back-up. On March 7, 2011, staff issued a Notice Inviting Bids for Various Size Transformers for the Electric Utility, NIB -RG -1102. The Notice Inviting Bids and related documents were distributed through BidNet, the City's online bid system. The Notice Inviting Bids was also posted at City Hall. A public bid opening was held on March 22, 2011, at the Electric Department Administrative Offices, and six bids were received. ISSUES/ANALYSIS The bids were evaluated as to compliance with the specifications. Distribution transformers are also evaluated for the total life cycle cost over each transformer's useful lifetime. This evaluation is performed using a combination of loss calculations supplied by the transformer manufacturer