City of Columbus - File #: 2084-2006

• File #: 2084-2006
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 11/10/2006
• In control: Utilities Committee
• On agenda: 12/11/2006
• Final action: 12/13/2006
• 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)

Date	Ver.	Action By	Action	Result
12/13/2006	1	MAYOR	Signed
12/13/2006	1	CITY CLERK	Attest
12/11/2006	1	Columbus City Council	Approved	Pass
12/11/2006	1	COUNCIL PRESIDENT	Signed
12/1/2006	1	Utilities Drafter	Sent for Approval
12/1/2006	1	Auditor Reviewer	Reviewed and Approved
12/1/2006	1	CITY AUDITOR	Reviewed and Approved
12/1/2006	1	Utilities Drafter	Sent for Approval
11/30/2006	1	CITY AUDITOR	Reviewed and Disapproved
11/27/2006	1	Utilities Drafter	Sent for Approval
11/20/2006	1	Utilities Drafter	Sent for Approval
11/20/2006	1	CITY ATTORNEY	Reviewed and Approved
11/17/2006	1	EBOCO Reviewer	Reviewed and Approved
11/17/2006	1	ODI DIRECTOR	Reviewed and Approved
11/16/2006	1	Utilities Drafter	Sent for Approval
11/16/2006	1	Auditor Reviewer	Reviewed and Disapproved
11/16/2006	1	Utilities Drafter	Sent for Approval
11/15/2006	1	Finance Reviewer	Reviewed and Approved
11/15/2006	1	Finance Reviewer	Reviewed and Approved
11/15/2006	1	Finance - Purchasing Reviewer	Reviewed and Approved
11/15/2006	1	FINANCE DIRECTOR	Reviewed and Approved
11/13/2006	1	Utilities Reviewer	Sent for Approval
11/13/2006	1	UTILITIES DIRECTOR	Reviewed and Approved
11/13/2006	1	Utilities Drafter	Sent for Approval
11/10/2006	1	Utilities Drafter	Sent for Approval
11/10/2006	1	Utilities Reviewer	Reviewed and Approved
11/10/2006	1	Utilities Drafter	Sent for Approval

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 delive...