Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH AVO INTERNATIONAL, D/B/A MEGGER GROUP, FOR ELECTRIC SUBSTATION TESTING EQUIPMENT.
Executive Summary: Authorization for the City Manager to enter into contract with AVO International dba Megger to purchase electric system substation testing equipment.
Body
Legislative History
Resolution 14-156, authorizing the city manager to purchase equipment, materials and supplies for the City's public utility operations.
Purpose & Explanation
Each year the Hudson Public Power Division (HPP) contracts for the performance of preventative maintenance and inspections on one of the five distribution substations as part of a five year rotation program. One of the tasks performed during the annual maintenance involves testing and adjusting the power relays. The testing equipment being purchased will enable HPP staff to perform these routine testing tasks in-house at a greater frequency while reducing the overall contractual service costs incurred by the City.
Public Works staff budgeted $55,000 in the 2015 budget for the purchase of the substation testing equipment. The department had two (2) qualified bidders and received one (1) bid for the purchase of the equipment and subsequent staff training. A bid tabulation has been attached for review. The lowest and best bid was submitted by AVO International dba Megger in the amount of $35,622.00. By performing these testing operations in-house HPP staff has estimated a two (2) year payback on the equipment purchase due to the annual savings in contract labor.
Timing Considerations
Upon City Council approval the Public Works staff will award the contract to purchase substation testing equipment. Equipment will be delivered within ninety (90) days of award of contract.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends C...
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