Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to enter into contracts for the purchase of Transformers for the Division of Power and Water. Transformers are necessary for system improvements for conversion from 7200 volts to 14400 volts, for new customers and replacement of stock previously used for new customers, and maintenance including replacement for storm damage and wear or failure.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation Number SA002381). Nineteen bids were solicited (18 MAJ, 1 FBE). Three (MAJ) bids were received and opened on April 26, 2007. The bids have been evaluated and the lowest bids received for items #2, #3, #4, #5, #6, #7, #8, #10, #11 and #12 were deemed to be non-responsive due to non-firm pricing on some items along with adding terms and conditions contrary to the City's specifications. No award will be made for items #6 and #7 as no responsive bidder bid on these items. These items will be solicited informally, as needed. Awards are recommended to two vendors as the lowest, responsive, responsible and best bidders, as follows:
Reed City Power Line Supply, CC #382783949, expires 03/25/2008, in the amount of $67,944.00
Van Tran Industries, CC #742568917, expires 08/27/2007, in the amount of $424,478.00
This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle. Most transformers have a long lead time; therefore, it is necessary to order immediately to preserve the usual daily operation of the Division of Power and Water.
FISCAL IMPACT: There is sufficient budget authority in the Division of Electricity's Operating Fund and in the Voted Street Lighting and Electricity Distribution Improvements Fund, Distribution System Improvements Project, for this purchase. $112,352 was spent in 2005 and $396,992.00 was spent from operating and capital funds in 2006 for the purchase of transformers.
Title
To authorize the Finance and Management Director to enter into two contracts for the purchase of Transformers with Reed City Power Line Supply and Van Tran Industries for the Division of Power and Water; to authorize the expenditure of $405,740.00 from the Electricity Operating Fund and $86,682.00 from the Voted Street Lighting and Electricity Distribution Improvements Fund; and to declare an emergency. ($492,422.00)
Body
WHEREAS, the Division of Power and Water requires Transformers for maintenance, customer development and system improvements; and
WHEREAS, the Purchasing Office advertised and solicited formal bids; and
WHEREAS, three bids were received and opened by the Purchasing Office on April 26, 2007; and
WHEREAS, said bids have been evaluated and the lowest, responsive, responsible and best bids are recommended for contract awards to two vendors; and
WHEREAS, in order to ensure that Transformers are supplied to the Division of Power and Water in a timely manner to meet the needs of its daily operation, this is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water, in that it is immediately necessary to authorize the Finance and Management Director to enter into contracts for the purchase of Transformers, in an emergency manner thereby preserving the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to enter into contracts for the purchase of Transformers in accordance with Solicitation No. SA002381, as follows:
Reeed City Power Line Supply, Items 1, 2, 3, 4 and 5, in the amount of $67,944.00
Van Tran Industries, Items 8, 9, 10, 11, 12, 13, 14, 15, 16 and 17, in the amount of $424,478.00
SECTION 2. That to pay the cost of the aforesaid contracts, the expenditure of $492,422.00, or so much thereof as may be needed, be and is hereby authorized from Division No. 60-07 funds as follows:
Fund 550 | Electricity Operating Fund | OCA 606749 | OL3 6621 | $297,461.00
Fund 550 | Electricity Operating Fund | OCA 606723 | OL3 6651 | $108,279.00
Fund 553 | Voted Street Ltg. and Elec. Dist. Imp. | Project 670608 | OCA 670608 | OL3 6621 | $86,682.00
SECTION 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.