HomeMy WebLinkAboutAgenda Report - June 21, 2017 C-05TM
AGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
C-5
AGENDA TITLE: Adopt Resolution Awarding Bid for Purchase of Capacitor Banks from Anixter, of
Benicia ($203,971)
MEETING DATE: June 21, 2017
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION Adopt a resolution awarding bid for the purchase of capacitor banks
from Anixter, of Benicia, in an amount not to exceed $203,971.
BACKGROUND INFORMATION:
The Electric Utility (EU) is required to maintain a specified power
factor (PF) at its 60 kV transmission grid intertie. Pacific Gas and
Electric Company recently informed EU staff of instances when
Lodi's PF was out of compliance.
After reviewing data points and numerous discussions with PG&E, the Northern California Power Agency
(NCPA), and the California Independent System Operator regarding the EU's power factor at the 60 kV
transmission grid intertie, it has been determined Lodi is responsible to make the PF correction. In order
to do so, Lodi's distribution system requires replacement and addition of capacitor banks.
EU's Capital Improvement Plan (CIP) includes the replacement of electric distribution system
components that have exceeded their useful life. The EU's distribution system capacitor banks are more
than 30 years old, with six currently out of service. The CIP includes replacement of the six failed banks
and installation of nine additional units for PF correction.
In order to access a larger pool of vendors and expedite the procurement process, EU exercised the
NCPA Support Services Program Agreement and advertised for bids on June 2, 2017 to purchase 15
units of 1,200 kVAR overhead capacitor banks. On June 8, 2017 bids were opened with two suppliers
submitting proposals with the following results:
Vendor Name
Bid Amount ($)
Lead Time
Anixter
$203,971
12-14 weeks
Scott Engineering
$319,306
8-10 weeks
Note: Actual cost shown includes delivery and tax.
Staff reviewed the proposals and deemed that Anixter is the lowest responsive bidder compliant with the
approved specifications.
FISCAL IMPACT: Procurement cost is $203,971.
FUNDING AVAILABLE: Included in FY 2017/18 Budget Account No. 50199000.77020.
APPROVED:
5 -phen Schwabauer,
anager
Adopt Resolution Awarding Bid for Purchase of Capacitor Banks from Anixter, of Benicia ($203,971)
June 21, 2017
Page 2 of 2
) I .
Andrew C. Keys
Deputy City Manager/Internal Services Director
ElizabethAT Kirkley
Electric Utility Director
PREPARED BY: Hasan Shahriar, P.E., Senior Power Engineer
EAK/JM/HS/Ist
RESOLUTION NO 2017-112
A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE
BID FOR THE PURCHASE OF CAPACITOR BANKS FROM
ANIXTER, OF BENICIA
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 June 8, 2017 at 11:00 a.m.,
for the purchase of capacitor banks for the Electric Utility Department, described in the
specifications, and in accordance with the Northern California Power Agency Support Services
Program Agreement; and
WHEREAS, said bids have been compared, checked, tabulated, and a report thereof
filed with NCPA as follows:
Vendor Name
Bid Amount Lead Time
Anixter
$203,971 12-14 weeks
Scott Engineering $319,306
Note: Actual cost shown includes delivery and tax.
8-10 weeks
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award
the bid for the purchase of 15 units of 1,200 kVAR overhead Cooper capacitor banks from
Anixter, of Benicia, California, in an amount not to exceed $203,971.
Dated: June 21, 2017
I hereby certify that Resolution No. 2017-112 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 21, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, and Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mounce and Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
2017-112
NNIFE uM. FERRAIOLO
ity Clerk