HomeMy WebLinkAboutResolutions - No. 2023-09RESOLUTION NO. 2023-09
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO WAIVE THE BID PROCESS AND PURCHASE
ELECTRIC SUBSTATION POWER TRANSFORMER FROM
DELTA STAR INCORPORATED, OF SAN CARLOS
WHEREAS, Lodi Electric Utility (LEU) requires a substation power transformer for spare
support in the event of failure of any of the existing eight substation power transformers in service;
and
WHEREAS, staff are proposing to purchase a spare transformer due to extremely long
lead times for critical electrical infrastructure. Since the substation power transformer is the
backbone of LEU's electric infrastructure, having a spare would allow for a contingency plan,
thereby helping to ensure little to no interruption of service to LEU customers in the event of
equipment failure; and
WHEREAS, on October 27, 2022, LEU staff discussed with the Risk Oversight Committee
the need to amend LEU's existing reserve policy in order to accommodate this purchase; and
WHEREAS, the proposed amendment included removing the Capital Reserve component
from the LEU Reserve Policy and instead moving forward to purchase a spare transformer to
ensure equipment is available and on hand should a catastrophic failure occur; and
WHEREAS, by Resolution No. 2022-283, City Council approved this change to the LEU
Reserve Policy at its November 16, 2022 meeting, noting that staff would return to Council
requesting approval to purchase the spare transformer; and
WHEREAS, Lodi Municipal Code Section 3.20.070 states that bidding shall be dispensed
when technical requirements preclude competitive bidding and when the City Council determines
that the purchase would be in the best interest of the City; and
WHEREAS, despite contacting four other vendors, Delta Star Incorporated was the only
manufacturer to support LEU with an appropriate lead time with all required components
conforming to LEU standards; and Delta Star also builds and constructs substation power
transformers out of the San Carlos location, decreasing freight costs and time, as well as overall
freight complexity.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize
the City Manager to waive the bid process and purchase an electric substation power transformer
from Delta Star Incorporated, of San Carlos, California, in an amount not to exceed $2,000,000.
Dated: January 18, 2023
I hereby certify that Resolution No. 2023-09 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held on January 18, 2023 by the following vote:
AYES: COUNCIL MEMBERS — Craig, Khan, and Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Bregman and Mayor Hothi
ABSTAIN: COUNCIL MEMBERS — None
OLIVIA NASHED
City Clerk
2023-09