HomeMy WebLinkAboutE-11 Staff Report - Purchase of Pole Type TransformersPurchase of Pole Type Transformers
January 5, 2016
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CONSENT ITEM
E-11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: SUSAN PARAGAS, DIRECTOR OF FINANCE
DATE: JANUARY 5, 2016
SUBJECT: PURCHASE OF POLE TYPE TRANSFORMERS IN PREPARATION
FOR EL NIÑO
SUMMARY:
In anticipation of power outages caused by heavy El Niño storms, the Electric Division requested
that the Central Stores Warehouse increase its inventory levels of “Pole Type” transformers.
Having ready inventory reserves of these transformers will prevent major delays in restoring
electric power to customers as outages occur. The transformers requested include 25, 50, 75, &
100 KVA (1,000 Volt Amps). The cost to purchase these items is above the City Manager’s
authority. This action approves the purchase of these transformers to ensure that inventory levels
are maintained, so no delays are experienced when additional transformers are needed.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1)Approve the issuance of a purchase order to Ermco Corporation in an amount not to
exceed $99,667; and
2)Approve the issuance of a purchase order to Anixter Power Solutions in an amount not
to exceed $54,223.
DISCUSSION:
Pole Type Transformers are essential to providing electric service to the City’s customers. These
items must constantly be kept at sufficient levels in inventory to avoid delays in restoring
electricity to our customers.
The transformers are stored as inventory under the Purchasing Division, and are released as they
are utilized by the Electric Division.
APPROVED
COUNCIL MEETING
1/5/2016
Purchase of Pole Type Transformers
January 5, 2016
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The cost to purchase these items exceeds the City Manager’s authority, thus, City Council
approval is required.
To ensure that the City is not overpaying, the Purchasing Division solicited informal bids from six
(6) known vendors for the above mentioned transformers. Three bids were received, and three did
not respond. Based on the lower cost and faster lead time, Ermco Corporation and Anixter Power
Solutions were selected to purchase the various power ranges of transformers needed in inventory.
The detailed results are listed in Exhibit A.
FISCAL IMPACT:
There is no fiscal impact to the General Fund as these transformers will be purchased under Stores
Inventory Account #33000000001601, then, will be charged to the appropriate Electric Division
account number as they are checked out of Stores.
Prepared by: Reviewed and Approved:
Tony Garcia Susan Paragas
Purchasing Buyer Director of Finance
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachment:
1. Exhibit A Informal Bid Results
ATTACHMENT 1
INFORMAL BIDS RESULTS FOR PURCHASE OF TRANSFORMERS
25 KVA Single Phase, 120/240 Volt (total cost for 15 each):
Total
Vendor Location Cost Lead Time
Anixter Power Solutions Corona, CA $12,067 8 wks ARO (After Receipt of Order)
Wesco Distribution Cerritos, CA $12,851 12 wks ARO
Ermco Corp. Dyersburg, TN $12,083 8 wks ARO
75 KVA Single Phase, 120/240 Volt (total cost for 25 each):
Total
Vendor Location Cost Lead Time
Anixter Power Solutions Corona, CA $42,156 8 wks ARO
Wesco Distribution Cerritos, CA $45,862 12 wks ARO
Ermco Corp. Dyersburg, TN $47,742 8 wks ARO
Total Cost for Anixter $54,223
50 KVA Single Phase, 120/240 Volt (total cost for 30 each):
Total
Vendor Location Cost Lead Time
Ermco Corp. Dyersberg, TN $34,106 8 wks ARO
Wesco Distribution Cerritos, CA $35,251 12 wks ARO
Anixter Power Solutions Corona, CA $36,494 8 wks ARO
50 KVA Single Phase, 277/480 Volts (total cost for 9 each):
Total
Vendor Location Cost Lead Time
Ermco Corp. Dyersberg, TN $10,310 8 wks ARO
Wesco Distribution Cerritos, CA $10,124 12 wks ARO
Anixter Power Solutions Corona, CA $11,125 8 wks ARO
75 KVA Single Phase, 277/480 Volt (total cost for 9 each):
Total
Vendor Location Cost Lead Time
Ermco Corp. Dyersburg, TN $13,626 8 wks ARO
Wesco Distribution Cerritos, CA $14,048 12 wks ARO
Anixter Power Solutions Corona, CA $15,265 8 wks ARO
2
100 KVA Single Phase, 120/240 Volt (total cost for 12 each):
Total
Vendor Location Cost Lead Time
Ermco Corp. Dyersberg, TN $24,681 8 wks ARO
Wesco Distribution Cerritos, CA $31,078 12 wks ARO
Anixter Power Solutions Corona, CA $27,691 8 wks ARO
100 KVA Single Phase, 277/480 Volt (total cost for 9 each):
Total
Vendor Location Cost Lead Time
Ermco Corp. Dyersberg, TN $16,941 8 wks ARO
Wesco Distribution Cerritos, CA $20,239 12 wks ARO
Anixter Power Solutions Corona, CA $18,100 8 wks ARO
Total Cost for Ermco $99,666
No Bids Received:
One Source Distributors Downey, CA
Pacific Utilities Cerritos, CA
Young & Co. Pasadena, CA