HomeMy WebLinkAboutAgenda Report - August 15, 2012 C-07AGENDAITEMIC607
A% CITY OF LODI
,. COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Approving the Purchase of a Padmount Transformerfrom
Howard Industries Inc. of Laurel, Mississippi ($22,762.19)
MEETING DATE: August 15,2012
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution approving the purchase of a padmount
transformer from Howard Industries Inc. of Laurel, Mississippi in the
amount of $22,762.19.
BACKGROUND INFORMATION: On July 10, 2012, the City Council approved a Reimbursement
Agreement with Holz Rubber Company for a utility service and
transformer upgrade project, including the purchase of a padmount
transformer. The City Council also approved the specifications for the required transformer and
authorized the Electric Utility Department (EUD) to advertise for bids.
On July 25, 2012, bids were opened with four suppliers submitting proposals. Ratherthan focusing
solely on the lowest purchase price, the life -cycle costs (total purchase price plus cost of estimated power
loss during the projected life of the transformer) of the proposed transformers were evaluated as shown
on Exhibit A. Howard Industries Inc. of Laurel, Mississippi submitted a responsive bid with the lowest life
cycle cost of $39,588.44 for a 1500kVA, 3-phase, 480/277 V transformer ($22,762.19 cost of
transformer, $16,826.25 value of electrical losses).
It will take up to 16 weeks from order to delivery. In the meantime, EUD will take a transformer in
inventoryto install at Holz Rubber. This purchase will be used to replenish EUD inventory.
FISCAL IMPACT: None per Reimbursement Agreement with Holz Rubber.
FUNDING: Funding is available in FY2012/13 EUD BudgetAccount Number 160650.
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A-U
Jordan Ayers
Deputy City Manager/Internal Services Director
EII eth A. Kirkfey, Electric Util' Ir ctor
PREPARED BY: Weldat Haile P.E., Senior Power Engineer
EAK/WH/Ist
APPROVED:
Ki
RESOLUTION NO. 2012-127
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
THE PURCHASE OF A PADMOUNT TRANSFORMER FROM
HOWARD INDUSTRIES INC., OF LAUREL, MISSISSIPPI
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WHEREAS, on July 10, 2012, the City Council approved a Reimbursement Agreement
with Holz Rubber Company for a utility service and transformer upgrade project (Project),
including the purchase of a padmount transformer; and
WHEREAS, the City Council also approved the specifications for the required
transformer and authorized the Electric Utility Department (EUD) to advertise for bids; and
WHEREAS, in answer to notice duly published in accordance with law and the order of
this City Council, sealed bids were received and publicly opened on July 25, 2012, at 11:00 a.m.
for the purchase of a padmount transformer for the Electric Utility Department, described in the
specifications therefore approved by the City Council on July 10, 2012; and
WHEREAS, said bids have been compared as to life -cycle costs, checked, and
tabulated and a report thereof filed with the City Manager as shown on Exhibit A attached; and
WHEREAS, Howard Industries Inc., of Laurel, Mississippi, submitted a responsive bid
with the lowest life cycle cost of $22,762.19 for a 1500 kVA, 3-phase, 480/277 V transformer;
and
WHEREAS, there is a lead time of 14-16 weeks; therefore, to expedite the
implementation of the electric service for the Project, EUD will install a transformer from its
inventory and this transformer purchase will then be used to replenish EUD inventory.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
the purchase of a pad mount transformer, as shown above, in the amount of $22,762.19.
Dated: August 15, 2012
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hereby certify that Resolution No. 2012-127 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held August 15, 2012, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Johnson, Katzakian, Nakanishi, and
Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS —None
ABSTAIN: COUNCIL MEMBERS — None
J��
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City Clerk
2012-127
EXHIBIT A - PAD MOUNTED TRANSFORMER BID EVALUATION
Transformer Bid Evaluation
Bid
Opening: July 25, 2012
Padmount Tax (factor):
1.0775
Primary Windings:
Three -Phase, 12000 Volt, 60Hz, Delta Connecte
No Load Loss $/watt:
3.75
Single -Phase, 12000 Grd. Wye/6930 Volt, 60Hz
Load Loss $/watt:-
1.25
Bid Item 1: MOM, 480/277 Volt, Three
Phase Pad
Number of units:
1
Vendor
Unit
Extended
Price
No Load
Load
No Load
Load
Cost of
Life Cycle
Delivery
Heigh
Impedanc
Price $
Price $
w/tax $
Loss
(watts)
Loss
(watts)
Loss value
Loss value
Losses $
Cost $
(weeks)
<90
(inch
es)
%>5.3
Hees Enterprises Inc.
(Ermco Transformers)
18,913.00
18,913.00
20,378.76
1883
10027
7,061.25
12,533.75
19,595.00
39,973.76
10-12
631
5.800
Howard Industries Inc.
(Silicon Core)
20,950.00
20,950.00
22,573.63
1835
10383
6,881.25
12,978.75
19,860.00
42,433.63
14-16
71
5.800
Howard Industries Inc.
(Amorphous Core)
21,125.00
21,125.00
22,762.19
690
11391
2,587.50
14,238.75
16,826.25
39,588.44
14-16
73
5.900
Pacific Utilities
(ABB, Inc.)
23,950.00
23,950.00
25,806.13
1457
10487
5,463.75
13,108.75
18,572.50
44,378.63
12-14
5.840
Howard ndustnesInc'
(Amorphous Core)
21,125.00
22,762.19
39,588.44