Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH OTC SERVICES, INC. FOR THE PURCHASE OF AN ELECTRICAL SUBSTATION TRANSFORMER; AND DECLARING AN EMERGENCY.
Brief Description: This project involves the replacement of an electrical transformer at the City's Eastside substation. In 2020 staff received permission to bid and award this project within the 2021 operational year with passage of Resolution 20-162. The project budget is $900,000. The development of the design RFP, award of the design and specifications contract, and the actual initial design work for the transformer, pushed the bidding of the transformer into 2022. With the bidding occurring outside of 2021, staff is returning to Council for permission to award the transformer purchase contract.
Body
Legislative History
Resolution 20-162 A RESOLUTION AUTHORIZING THE CITY MANAGER, DURING THE YEAR 2021, TO ADVERTISE FOR BIDS passed on December 15, 2020.
Purpose & Explanation
The Public Works Department advertised for the manufacturing and purchase of the eastside substation transformer. Eight companies reviewed the project and Public Works received one (1) bid. Upon correspondence with several of the companies, staff received comments as to why they chose not to bid, such as: the contract was not large enough, not taking on additional projects at this time, and will not bid due to the uncertainty of costs and holding those costs over time.
City staff is requesting City Council approve this Resolution authorizing the City Manager to enter into a contract with OTC Services, Inc., for the purchase of a distribution transformer. The total bid amount for this component of the project is $514,067.00. The lead time for the transformer is one year from order date.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
X Competitively bid and advertised for three consecutive weeks;
Joint or Cooperative Purchase Program
Professional Servi...
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