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Home My WebLink AboutAgenda Report - November 6, 2002 E-08COUNCIL COMMUNICATION AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt a resolution rejecting the two apparent lowest bids as non- responsive, and awarding the purchase of 21,000 feet of #2 jacketed 15kV underground conductor to the lowest responsive bidder, Western States Electric of Portland, Oregon, in the amount $16,088.15. ($16,088.15) (EUD) November 6, 2002 Electric Utility Director RECOMMENDED ACTION: That the City Council adopt a resolution rejecting as non-responsive the two apparent lowest bids, submitted by Nexans Energy USA of Warrentown, Virginia, and Pirelli Power Cables and Systems of Columbia, South Carolina, and awarding the bid for the purchase of 21,000 feet of #2 15kV XLPE concentric neutral primary underground conductor to the lowest responsive bidder, Western States Electric Company of Portland, Oregon, in the amount of $16,088.15. BACKGROUND INFORMATION: On September 18, 2002, the City Council approved specifications and authorized advertisement for bids for this conductor. Six bids were received, and opened on October 16, 2002: Western States Electric, Portland $16,088.15 Hendrix Wire & Cable, Milford, NH $16,563.33 Rome Cable Corporation, Rome, NY $18,398.42 Southwire Company, Carrollton, GA $22,627.50 Nexans Energy USA, Warrenton, VA $15,341.45* Pirelli Cables and Systems, Columbia, SC $15,726.11* *bids considered non-responsive: See explanation below Nexans' bid is considered non-responsive because their proposal was conditional on the City accepting terms of sale which are not in the City's best interest. Risk of damage or loss in transit to Lodi was to be assumed by the City, and cost of return of defective conductor to Nexans would be borne by the City under Nexans' terms of sale. Pirelli's bid is considered non-responsive because their method of packaging does not comply with the Department's specifications. Packaging is critical to the Department's safety in handling and reduction of waste, and the specifications are clear on the type of packaging that the Department requires. FUNDING: Electric Utility Department 2001-2003 Financial Plan and Budget, Line Extensions, Business Unit#161651, Page E-29 AK. cC 7') Vicky McAthie, Finance Director &,/ >7.et-e-Ce% /24_ tliee4"" Alan N. Vallow, Electric Utility Director Prepared by Joel Harris, Purchasing Officer cc: Hans Hansen, Manager, Electric Utility Engineering and Operations APPROVED: H. Dixon lynn -- City Manager RESOLUTION NO. 2002-213 A RESOLUTION OF THE LODI CITY COUNCIL REJECTING THE TWO APPARENT LOWEST BIDS AS NON-RESPONSIVE, AND AWARDING THE BID FOR THE PURCHASE OF 21,000 FEET OF #2 JACKETED 15kV UNDERGROUND CONDUCTOR TO THE LOWEST RESPONSIBLE BIDDER 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 October 16, 2002 at 11:00 a.m., for the purchase of 21,000 feet of #2 jacketed 15kV underground conductor, described in the specifications therefore approved by the City Council on September 18, 2002; and WHEREAS, said bids have been compared, checked, and tabulated and a report thereof filed with the City Manager as follows: Bidder Bid Amount Western States Electric, Portland, OR Hendrix Wire & Cable, Milford, NH Rome Cable Corporation, Rome, NY Southwire Company, Carrollton, GA Nexans Energy USA, Warrenton, VA Pirelli Cables and Systems, Columbia, SC $16,088.16 $16,563.33 $18,398.42 $22,627.50 $15,341.45* $15,726.11* *Bids considered non-responsive - Nexans' bid is considered non-responsive because its proposal was conditional on the City accepting terms of sale which are not in the City's best interest. Risk of damage or loss in transit to Lodi was to be assumed by the City, and cost of return of defective conductor to Nexans would be borne by the City under Nexans' terms of sale. Pirelli's bid is considered non-responsive because its method of packaging does not comply with the Department's specifications. Packaging is critical to the Department's safety in handling and reduction of waste, and the specifications are clear on the type of packaging that the Department requires. WHEREAS, staff recommends rejecting the two apparent lowest bids from Nexans Energy USA, of Warrenton, VA, and Pirelli Cables and Systems, of Columbia, SC, as being non-responsive as explained above; and WHEREAS, staff further recommends award of the bid for the purchase of the conductor be made to the lowest responsible bidder, Western States Electric, of Portland, OR, in the total amount of $16,088.15. NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that the apparent low bids received from Nexans Energy USA, of Warrenton, VA, and Pirelli Cables and Systems, of Columbia, SC, for the purchase of 21,000 feet of #2 jacketed 15kV underground conductor in the amount of $15,341.45 and $15,726.11 respectively is hereby rejected due to the explanation above; and BE IT FURTHER RESOLVED by the Lodi City Council that the award of the bid for the purchase of conductor be made to the lowest responsible bidder, Westem States Electric, of Portland, OR, in the total amount of $16,088.15. Dated: November 6, 2002 hereby certify that Resolution No. 2002-213 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 6, 2 002, b y t he following vote: AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, and Mayor Pennino NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk 2002-213 CITY COUNCIL PHILLIP A. PENNINO, Mayor SUSAN HITCHCOCK Mayor Pro Tempore EMILY HOWARD KEITH LAND ALAN NAKANISHI October 25, 2002 CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6778 FAX (209) 333-6791 Mr. Steve Kanty Isberg Nott Company 8 Crow Canyon Court Suite Suite 210 San Ramon CA 94583 Re: Nexans' proposal for #2 15kV Primary Cable - Bids opened October 16, 2002 Dear Steve, H. DIXON FLYNN City Manager SUSAN BLACKSTON City Clerk RANDALL A. HAYS City Attorney This letter is to inform you that the City's Electric Utility Department and I will be recommending that the City Council reject Nexans' bid for #2 15kV primary cable because the proposal was conditional on terms and conditions which were in conflict with the City's bid specifications. Specifically, the comment on page 3.2 (the bid form) states "Exceptions: None. Please reference Nexans Quote #Q60108 for details." In fact, Quote #Q60108 does take exception to the bid specifications on the following points: "Nexans standard warranty and terms and conditions apply. See attached" as well as the "Important Notice" at the bottom of the Quotation page which states that Nexans' standard warranty "shall prevail in the event of conflict... with the buyer's terms and conditions of purchase." Nexans standard warranty states that Nexans may repair or replace defective cable at its election (City specifications state that defective cable shall be replaced) at no cost to the end user (Nexans standard terms and conditions state that "defective goods shall be returned, transportation prepaid by the Buyer"). Nexans standard terms and conditions state that "deliveries are F.O.B. place of shipment'. While Quotation #Q60108 states that "Freight is prepaid and allowed..." it doesn't specifically amend the terms and conditions to comply with the City's requirements that all shipments be F.O.B. Delivered. Lodi's Deputy City Attorney has reviewed Nexans' bid and is in agreement with staffs recommendation. Staff has also determined, with Counsel's concurrence, that a request to have Nexans remove the conditions which are in conflict with the City's instructions would constitute a modification to the bid after the time at which bids were due. Steve, please make it clear to Nexans that such conditional bids will always be rejected. In the past, Nexans has not included such conditions, and they have been awarded several of the City's bids. I hope, for the upcoming and future bids, that Nexans will return to submitting non -conditional bids. Regards, Joel E Harris Purchasing Officer, City of Lodi CITY COUNCIL PHILLIP A. PENNINO, Mayor SUSAN HITCHCOCK Mayor Pro Tempore EMILY HOWARD KEITH LAND ALAN NAKANISHI October 25, 2002 Mr. Jim Walsh Pirelli Cables and Systems 1700 Poole Boulevard, Suite C Yuba City CA 95993 CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6778 FAX (209) 333-6791 Re: Pirelli's proposal for #2 15kV Primary Cable - Bids opened October 16, 2002 Dear Jim, H. DIXON FLYNN City Manager SUSAN BLACKSTON City Clerk RANDALL A. HAYS City Attorney This letter is to inform you that the City's Electric Utility Department and I will be recommending that the City Council reject Pirelli's bid for #2 15kV primary cable because the proposal cited exceptions that were not acceptable to the Department. Specifically, the "Exceptions" directed the reader to "See Attached" documents, which included Quotation #4020837 and Pirelli's Terms and Conditions. Quotation #4020837 cited the City's Specification dated 4/00 rather than the specification mailed with the Invitation for Bid, which is dated 9/02. The Quotation also identified put -ups at 2,100 feet per reel (but didn't specify reel size). The City's specifications require #2 conductor to be supplied on 58-32-28 reels (Section 13.0), and that reels shall be shipped with cable to their full maximum cable capacity (Section 14.2). Since 58-32-28 reels hold closer to 3,500 feet, but Pirelli's quotation indicated put -ups at 2,100 feet without specifying reel size, the Department determined that this constituted an exception that was not acceptable to the City. Pirelli's Terms and Conditions, as applied to Quotation #4020837, state that "All quotations are subject to change or withdrawal without notice", and that "Acceptance is expressly limited to the terms and conditions stated herein." Such conditions placed upon a proposal submitted in response to an Invitation to Bid are not acceptable to the City, and are considered non-responsive. Lodi's Deputy City Attorney has reviewed Pirelli's bid and is in agreement with staffs recommendation. Staff has also determined, with Counsel's concurrence, that a request to have Pirelli remove the conditions and change the quotation would constitute a modification to the bid after the time which bids were due. Jim, please make it clear to Pirelli that such conditional bids will always be rejected. In the past, Pirelli has not included such conditions, and awards to Pirelli have been made. I hope, for the upcoming #2/0 bid and for future bids, that Pirelli will return to submitting non -conditional bids. Sincerely, Joel E Harris Purchasing Officer, City of Lodi