Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a contract for a replacement power transformer at the Dublin Avenue Electrical Substation. The original transformer was built in 1967. Internal damage was discovered, therefore the unit was taken out of service, as it is unsafe. The Department is requesting formal bidding be waived due to the long time period between ordering and actual installation of the product, in addition to the importance of the transformer. The transformer needs replaced before the summer load increases and puts a critical strain on the system. This will eliminate the real potential of power outages to the Dublin Road Water Treatment Plant, City Hall, the Police Station, and other downtown Columbus customers. The Division has currently switched load to the other two transformers, but there is no back up for these. If there is an outage of either of these two transformers, power interruption could occur in these areas. If formal bids are waived, we expect the transformer to be in place by May 2007.
Five bids were sent to perspective vendors. Three bids were received and two bidders submitted no bids. The Division of Power and Water (Power) reviewed the bids and recommends a contract be authorized with Delta Star, Inc., 3550 Mayflower Dr., Lynchburg, Va., 24501, in an amount not to exceed of $ 1,351,050.03. The price of the contract was negotiated as follows: 1. the price of the transformer is $ 1,299,697.00 with an escalation or de-escalation based on the average commodities index value at time of shipment in May 2007, with a total maximum escalation or de-escalation of $65,000.00. 2. Delta Star offered a 1% deduction for progress payments. Therefore, the maximum amount of the contract would be $1,351,050.03 {$1,299,697 + $65,000 - $13,646.97 (1% discount) = $1,351,050.03)}.
Delta Star's bid was not the lowest, but it has the best delivery time. They bid 50 weeks delivery time, however, they were able to switch production times with another customer, allowing us delivery by May 2007. Their Contract Compliance Number is 25-1586168.
The other delivery times quoted were not as near negotiable. The other bids received are as follows:
VENDOR BID AMOUNT DELIVERY TIME
Niagara Transformer $1,052,456.00 (firm) 48 weeks
GE/Pepco $1,224,997.00 (tied to commodity index) 52 weeks
It is requested that this Ordinance be handled in an emergency manner in due to the emergency nature as explained above.
FISCAL IMPACT: The Division of Power and Water (Power) will have to expend the remaining funds in the Voted Street Lighting and Electricity Distribution Improvements Fund, as well as expending funds received from the November 2006 bond sale, for this expenditure. Transfers within this fund will be necessary.
Title
To authorize the Director of Public Utilities to enter into a contract with Delta Star, Inc. for a replacement power transformer at the Dublin Avenue Electrical Substation for the Division of Power and Water; to authorize the expenditure of $1,351,050.03 from the Voted Street Lighting and Electricity Distribution Improvements Fund; to waive the provisions of competitive bidding and to declare an emergency. ($1,351,050.03)
Body
WHEREAS, the Division of Power and Water needs to replace a transformer at the Dublin Avenue Electrical Substation; and
WHEREAS, power is currently being diverted to two other transformers and the summer months would put a strain on these two transformers; if one were to have an outage, a power interruption could occur in the downtown area; and
WHEREAS, the Division is requesting the waiving the provisions of competitive bids based on the importance as mentioned above as well as the long time period between ordering and actual installation of the product; and
WHEREAS, three informal bids were received and Delta Star, Inc. was chosen as the best bidder as they had the best delivery time (May 2007 vs. 48-52 weeks); and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water (Power), in that it is immediately necessary to enter into a contract for a replacement power transformer at the Dublin Avenue Electrical Substation, in an emergency manner as described above; for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. Director of Public Utilities is hereby authorized to enter into a contract with Delta Star, Inc., in the amount of $1,351,050.03; for a replacement power transformer at the Dublin Avenue Electrical Substation.
SECTION 2. That it is in the best interest of the City of Columbus to waive the provisions of Section 329.06 of the Columbus City Code, 1959 and such provisions are hereby waived.
SECTION 3. That the City Auditor is hereby authorized and directed to transfer $558,686.13 within the Voted 1995 and 1999 Street Lighting and Electricity Distribution Improvement Fund, Fund No. 553, Object Level One 06, Object Level Three 6621, Division 60-07, as follows:
TRANSFER FROM:
Project No. Project Name OCA Code Amount
440007 Urban Infrastructure Recovery Fund 440007 $ 365,006.45
670607 Italian Village Street Lighting 670607 $ 151,572.06
670619 Federal Mandated Oil Spill Prev. 670619 $ 6,351.79
670624 Pine Hills 670624 $ 25,425.28
670627 Morse Rd SL - County 670627 $ 6,000.00
670629 Alum Creek Street Lighting 670629 $ 4,330.55
$ 558,686.13
TRANSFER TO:
Project No. Project Name OCA Code Amount
670608 Distribution System Im's 670608 $ 558,686.13
SECTION 4. That to pay the cost of the aforesaid contract modification, the expenditure of $1,351,050.03, or so much thereof as may be needed, is hereby authorized from the Voted Street Lighting and Electricity Distribution Improvements Fund, Fund No. 553, Division No. 60-07, Distribution System Improvements Project, Project No. 670608, OCA Code 670608, Object Level Three 6621.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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.