07-19-2013 BPU RPT 13 - Laserfiche WebLink

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W A T E R E N E R G Y L 1 1 L RIVERSIDE PUBLIC UTILITIES 6" W& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: July 19, 2013 ITEM NO: 13 SUBJECT: MAGNOLIA PLAZA RELIABILITY PROJECT AWARD OF TRANSFORMER PURCHASE ORDER — WORK ORDER NO. 1227700 ISSUE: The item for Board of Public Utilities consideration is approval to purchase a power transformer and associated equipment as part of the Magnolia Plaza Reliability Project. RECOMMENDATION: That the Board of Public Utilities approve a purchase order in the amount of $786,132 to ABB, Inc., of Crystal Springs, Mississippi, for a power transformer and associated equipment as part of the Magnolia Plaza Reliability Project. BACKGROUND: Riverside Public Utilities (RPU) has kept up with growth and capacity needs in the City of Riverside's central neighborhoods by adding substations, completing voltage conversion projects, and improving the transmission and distribution systems. In order to keep pace with growth and maintain reliability, the Magnolia Plaza Reliability Project (MPRP) was initiated and is scheduled for completion in December 2015. MPRP includes the improvement and expansion of the Plaza Substation, improvements to the transmission and distribution system, and the retirement of the Magnolia Substation. Staff solicited proposals for a new power transformer to be located at Plaza Substation. The purchase of this equipment is covered under Section 602 of the Purchasing Resolution (No. 21182) which provides for a utilities exception for the acquisition of specific items listed by Open Market Procurement (in lieu of the formal bidding process), if it appears to the Purchasing Services Manager to be in the best interest of overall economy and efficiency to the City. The Purchasing Services Manager has made such a determination. The utilities exception includes transformers. Under Open Market Procurement, staff is allowed to directly contact certain vendors to request quotations for this specific equipment. Staff reviewed proposals from four manufacturers, and ABB, Inc. offered the lowest responsible and responsive proposal. The proposals include: Vendors Proposal Amount Including Sales Tax: Evaluated Rank Equip + XF Losses: 1 1. ABB, Inc., Crystal Sprin s, MS $786,132 2. CG Power System USA Inc., Washington, MO $670,358 Disqualified 3. Virginia Transformer Corp., Pocatello, ID $881,370 Pis ualified $917,783 Disqualified 4. Delta Star, San Carlos, CA En ineer's Estimate $789, 875