2003 AGN JUN 17 I16 - Laserfiche WebLink

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CITY OF COLTON Item #16 AGENDA REPORT For the City Council Meeting of June 17, 2003 TO: Honorable Mayor and Council Members FROM: Dilu DeAlwis, Finance Director SUBJECT: Award of Bid for Various Transformers to Southwest Power, Inc. in the Amount of $11,568.04, and to Wesco Distribution, Inc. in the Amount of $13,528.64 DATE: June 4, 2003 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 three new housing tracts. DISCUSSION/ANALYSIS: On May 8, 2003, 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 10:30 A.M., May 28, 2003, at the Electric Utility Office. Three bids were received and evaluated. A Bid Analysis is attached showing the price and delivery quoted by each vendor. The bid submitted by Utility Products Supply was non-responsive for Items #1-#3 only, as they did not meet the City's specifications. The vendor quoted transformers with 2 -way switching instead of 4 -way switching as specified. 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 transformers. However, the City may not be able to provide power to the new housing developments without 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. Page 1 of 2