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HomeMy WebLinkAboutAgenda Report - June 1, 2016 C-06CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: MEETING DATE: PREPARED BY: AGENDA ITEM C- 6 Adopt Resolution Awarding Bid for the Purchase of One Oil Handling Trailer, Model # 10S2OX-2, from Intertech Filtration Systems of Bixby, Oklahoma ($70,802.64) June 1, 2016 Electric Utility Director RECOMMENDED ACTION: Adopt a resolution awarding bid for the purchase of one oil handling trailer, Model #, from Intertech Filtration Systems of Bixby, Oklahoma in the amount of $70,802.64. BACKGROUND INFORMATION: On April 6, 2016, the City Council approved the specifications and authorized advertisement for bids to procure one oil handling trailer to enable Electric Utility (EU) staff to drain, dehydrate and clean oil that is used as an insulating medium in power transformers and load tap changers. These items represent the largest component of the electric distribution system. The Electric Utility advertised bids on April 13 and 16, 2016. Bids were opened on April 28, 2016, with three vendors submitting proposals; two of which were alternative bids from Intertech Filtration Systems and Parker – Velcon. Upon further review by staff, the alternative bid by Intertech Filtration Systems for barn -style rear doors as opposed to a single ramp -style rear door was deemed superior. Further, with the reduced cost it is advantageous for the City to accept the alternative bid for a Model # 10S2OX-2 oil handling trailer. After consideration and evaluation of all bids, staff recommends awarding the bid to Intertech Filtration Systems. Bidder Price Tax Delivery Total Intertech Filtration Systems $ 65,558.00 $ 5,224.64 $ 0.00 $ 70,802.64 Parker – Velcon $ 64,000.00 $ 5,120.00 $ 2,500.00 $ 71,620.00 Baron USA, LLC $ 85,350.00 $ 6,828.00 $ 5,200.00 $ 97,378.00 Staff originally budgeted $50,000 for the purchase of this equipment however market fluctuations in materials and labor costs resulted in bids higher than originally budgeted. These same variations also resulted in savings on other purchases, enabling the additional cost to be absorbed within the existing capital equipment budget. FISCAL IMPACT: Procurement cost is $70,802.64. FUNDING AVAILABLE: Included in FY2015/16 Budget Account No. 50199000.77040. Jordan Ayers Deputy City Manna( Fri' e•••0103 lizabeth A. irkley Electric Utility Director PREPARED BY: Charles J. Berry, Electric Utility Superintendent EAK/CJB/Ist rector APPROVED: OW „IMO IMmal! amok Owaba — , City Manager p RESOLUTION NO. 2016-81 A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE BID FOR THE PURCHASE OF ONE OIL HANDLING TRAILER, MODEL NO. I0S2OX-2, FROM INTERTECH FILTRATION SYSTEMS, OF BIXBY, OKLAHOMA 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 April 28, 2016, at 11:00 a.m., for the purchase of one oil handling trailer, described in the specifications therefore approved by the City Council on April 6, 2016; and WHEREAS, three vendors submitted proposals; two of which were alternative bids from Intertech Filtration Systems and Parker — Velcon, as shown in the table below: Bidder Price Tax Delivery Total Intertech Filtration Systems $ 65,558.00 $ 5,224.64 $ 0.00 $ 70,802.64 Parker — Velcon $ 64,000.00 $ 5,120.00 $ 2,500.00 $ 71,620.00 Baron USA, LLC $ 85,350.00 $ 6,828.00 _ $ 5,200.00 $ 97,378.00 WHEREAS, upon further review by staff, the alternative bid by Intertech Filtration Systems for barn -style rear doors, as opposed to a single ramp -style rear door, is deemed superior; further, with the reduced cost, it is advantageous for the City to accept the alternative bid. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award the alternative bid with barn -style rear doors to Intertech Filtration Systems, for the purchase of one Model No. 10520X-2 oil handling trailer manufactured by Velcon Filters, in the amount of $70,802.64. Dated: June 1, 2016 I hereby certify that Resolution No. 2016-81 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 1, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mayor Chandler ABSTAIN COUNCIL MEMBERS — None ._c b C -p JNNIFEM. FERRAIOLO City Clerk 2016-81