2002 AGN SEPT 03 I11_Bids for transformers

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CITY OF COLTON Item #11 AGENDA REPORT For the City Council Meeting of September 3, 2002 TO: Honorable Mayor and Council Members FROM: Thomas K. Clarke, Utilities Director--tkee� SUBJECT: Award of Bid for Various Transformers for the Electric Utility to Pauwels Transformers in the Amount of $13,942.85 and to Wesco Utility in the Amount of $3,743.24 DATE: August 22, 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 two sizes of pad and pole mount transformers to be used as back up. DISCUSSION/ANALYSIS: On July 30, 2002, the Utilities Department posted a Notice Inviting Bid for these transformers. Bid packages were mailed to six suppliers of distribution transformers. A bid opening was held at 2:00 P.M., August 21, 2002, at the Corporate Yard. Five 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 while in service and a sufficient back-up transformer is not available, the customer(s) may be without service for 6-9 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.