The URL can be used to link to this page

Home My WebLink AboutStaff Report 428-06City City of Palo Alto Manager’s Report 7 I TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: UTILITIES December 11, 2006 CMR:428:06 APPROVAL TO APPROPRIATE ADDITIONAL FUNDS TO EXISTING BLANKET PURCHASE ORDERS WITH COOPER POWER SYSTEMS AND HOWARD INDUSTRIES FOR THE PURCHASE OF ELECTRIC DISTRIBUTION TRANSFORMERS REQUIRED FOR CAPITAL IMPROVEMENT PROJECTS AND TO PROVIDE SERVICE TO NEW CUSTOMERS RECOMMENDATION Staff recommends that Council: Approve and authorize the City Manager or his designee to amend the contract limit from $250,000 to $1,000,000 on the existing blanket purchase order for FY 06-07 with Cooper Power System for the purchase of electric distribution transformers. Approve and authorize the City Manager or his designee to amend the contract limit from $250,0.00 to $375,000 on the existing blanket purchase order for FY 06-07 with Howard Industries for the purchase of electric distribution transformers. DISCUSSION Various types of electric distribution transformers (pole top, padmount and submersible) are required for providing service to customers in Palo Alto. Orders are placed with manufacturers based on requirements for capital improvement projects, new customer connections and replacing old or failed transformers. A Request for Proposal for the purchase of transformers was issued in September 2004. The solicitation was sent to four vendors and only three responses were received. Based on the unit CMR:428:06 Page 1 of 3 prices, two vendors were selected and blanket purchase orders were issued to Cooper Power Systems and Howard Industries in FY 04-05. The expenditure for each blanket purchase order was limited to $250,000 per year. Since the RFP had provision for two optional 12-month contract extensions, the contracts were renewed in FY 05-06 and FY 06-07. The table below shows the funds spent in ordering transformer during the last two and the current fiscal years. Fiscal Year Cooper Power Systems Howard Industries FY04-05 $199,000 $119,650 FY 05-06 $227,164 $0 FY06-07 $173,080 $167,329 Based on the current year’s usage and anticipated needs for future projects, the current blanket purchase orders with Cooper Power Systems and Howard Industries will require Council approval because the expenditures will exceed $250,000 per year. There are several reasons why the expenditure will exceed $250,000 per year limit: 1.Several large transformers costing in excess of $150,000 were ordered for a new key customer. New transformers are needed for providing service to three new residential/commercial developments and completing capital improvement projects planned for FY 06-07. 3. Price increase in unit cost due to substantial increase in material cost. Due to increase in delivery time from three months to six months or longer, transformers required for future projects and maintaining inventories are being ordered during this fiscal year. RESOURCE IMPACT Funds have been budgeted for the purchase of transformers in the FY 2006-07 Electric Capital Improvement Program project EL -89028. If additional funds are required in the future, staff will request Council approval of a Budget Amendment Ordinance (BAO). POLICY IMPLICATIONS Authorization of this blanket purchase order does not represent any change to the existing policy. CMR:428:06 Page 2 of 3 ATTACHMENTS A. Blanket Order - Cooper Power Systems - FY 06-07 B. Blanket Order - Howard h~dustries - FY 06-07 PREPARED BY: SAM ZUCC~ ~ Elect~(ric Engineering Manager PATRICK VALATH Sr. Electric Project Engineer DEPARTMENT APPROVAL: CITY, MANAGER APPROVAL: ~r~E _~F O N G Assistant City Manager CMR:428:06 Page 3 of 3 City of Palo Alto Purchas.ing and Contract Administration P.O.Box 1025Q ’Palo Alto CA 94303 Te1:(650)329-2271 FAX:(650)329-2468 COOPER POWER SYSTEMS 3.133 CLAUDIA DR CONCORD CA 94519 Tel: 925-677-7222 Fax: 262-513-2041 Ship To:Bill To: : ~tiiiti:~ ~. Et!gine e dn g -ut it!~s" Eng!needhg Citeof: I~)lb,Alto " :" CL~y ofPalb,AltO1002-Elwet!Court !-007 Elwell: Court --- - : Palb Alto .CA .94303 Palo.Alto, CA, 94303 Blanket Order PC Number 4607000100 Date .07/06/2006 Vendor No.100284 Paymen:~ Terms Payment Due 30 days FOB PoMt F.O.B. Palo Alto Ship via Veddor-to ship best method Term .07/01/.2006 -. 06130t2007 . . . Buyer/Phone 131ene:el. H.~wai-d/. 650.-4~-5900 -Ema.il: :. .-...¯. . r.enee,howard@cityol~pal-oalto:org " " .1 -:.Page 1-of _3 THE THfRD AND FINAL Y~AR OFA 3 YEAR CONTRACT. Asst Director, Administrative Services THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW, AND ON THE LAST PAGE SPECIFICATIONS - An¥ specification and/or drawings referred to and/or attached hereto are expressly made a part" of this Purchase Order, DELIVERY - Please notify the City promptly if delivery cannot be made on or before [he date specified. If partiaJ shipment is authorized, so indicate onall documents. Complete packing lists must accompany each shipment, INVOICE - A separate invoice is required fo~ each order’. Send to address indicated above, City of .Palo Alto ¯ Purchasing and. Contract Administration .P.. O, Bo× 10250 Palo Alto CA 94303 Te12(650)329-227t. Fax:(650)329-2468 COOPER POWER SYSTEMS 3133 CLAUDIA DR ’ CONCORD CA 94519 925--677-7222 Fax: 262-51 3-2041 Ship To: ¯ L~tilities Eriginee~ing. . CiW.of Ralo.Alto ... 100-TiEIv4ell Court Palo.Alto,.CA 94-~30~ Q0r2 Elwell Court AltoCA .94303 ¯ ¯ ¯.Blanket Order. PO.Number Date " Vend0r No, payment Terms FOBPoint ’ - ¯ Ship.via . .:T~rm ... 4607000100 07106/2006 100284 ¯ Payment Due ¯30 days F.O,B~ Palo Alto .Vendor t0ship best method. . 07/01/2006 ~ 06/3012007 Rened::Hg~a~d:/.650~49625900 employee musi ~J~. ~ an.d PR/N~h~s/he[ name and the Department/DiWsion; PR/C~HASBEENQUOTED ~,sst Director, Administrative Services THISP.O. S SUBJECT TO THE TERMS AND CONDITiONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and !or drawings referred to andlor attached hereto are expresmy made a part of this Purchase Order,DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate onall documents. Complete packing lists must accompany each shipment. . INVOICE- A separate invoice is required for each order, Send to address indicated above. City..of Palo Alto Purchasipg and Contract Administration P,O.Box 1.0250 , Paio Alto CA 94303 Te1:~650)329-2271 Fax:(650)329-2468 COOPER POWER SYSTEMS ’ " 31:33 CLAUDIA DE{ CONCORD CA 94519 Te.l: 925-677-.7222 Fax: 262-513-20.41 Utilitie S .Eh.gin ee ~i~gCit~)q3f Palo Alto? ! 007.Elwell paio Altq. ~;ity o.f-P~lo Alto 100"7 Elwel[ Court Palo ALto CA 94-303 -Date Vendor No.. Payment Terms FOB Point Ship via.- Term .. ,. Blanket Order .07/06/2006 100284 Payment Due 30 days F;O.B. Palo Alto Ve~qdo[ to ship..best method 0.7.~0:-~/2006 ~ 06/30/2007 " Renee Howard/. 650-496;5900 ¯ ..... . :.:rene~.:hoW~r~d@~ityofpa~oalto,org i Total 173,080.78 Asst Director, Administrative Services THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - An}/specification and/or drawings referred to and/er attached hereto are expressly made a part 6f this Purchase Order.DELIVERY. Please notify the City promptly if delivery cannot be made on or before the date specit’ied. If partial shipment is authorized, so indicate all documents, Complete packing lists must accompany each shipment,INVOICE - A separate invoice is required for each order. Sendto address indicated above. ..City ¢ Palo Alto ~(i~ ~ !/~1 P,O.Box10250 ~~Zy.~2~Te1:(650)329-2271 Fax:-(650)329-2468 HOWARD INDUSTRIES INC cio Wratha~t & Kusi Inc. 711 GRAND AVE, STE 300 :SAN RAFAEL CA 94901 Tei: 4i5-457-0808 Fax: 41 5,457-1155 Ut!litie~E0gin~e[ing Ci[y of PaloAIto ¯ 1007~Elwell Court : R~Ii~ Ait0:CA 94303 .Bili Toj . ...... Uti!iti&s Engineering City Of Pale.Alto. . 1007 Elwell Court Palo Alto CA:O~t30~3, -Blanket Order PO Number Date Vendor No. Payment Terms FOB Point SHip via Term Email 46070O0237 07/31/2006 102820 Payment Due 30 days F.O.B. Palo Alto... Vendor to ship best method ¯ 07/01/2006 06/30/2007 OM /~O.total ~ 1;00’ Al&w PO to~a/ ~9#, 680 *÷~.*Ch~nge. O~def 2 TO ~dd fun~s of ~ 72, 649. O0 to pay invo]cej~ #540 !4, 653798-1,54014, 653532 PO line 60 ~or transformers. Old PO total $94,680 New PO total $167,329 ES.T]MA TED VALUE." $250.000 for the period July 1, 2006.through June 30. 2007 1, US Asst Director, Administrative Services THIS P.O. IS SUBJECT TOTHETERiMSANDCONDIT1ONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and/or drawings referred to andlor at, tached hereto are expressly made a par[ of this Purchase Order.DELIVERY - Please notdy the Cty promtut y if delivery cannot be made on or before the date sDecified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each sh pment INVOICE - A separate invoice is requ red for each order. Send to address indicated above. City Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Te1:(650~329-2271 Fax:(650)329-2468 HOWARD INDUSTRIES INC c/o Wrathall & Kusi Inc. 711 GRAND AVE, STE 300 SAN RAFAEL CA 94901. Tel: 415-457-0808 Fax: 41 5-457-1155 Utilities Engineering.Utilities Engineering City of Palo Alto:City of.Palo Alto 1007 ElwellCourt t 00"2 EIwelt Court Palo Alto CA 94303 Palo Alto CA 94303 PO Number Date Vendor No. Payment Terms FOB,Point Ship via Term BuYer/Phone Blanket Order 4607000237 07/31/2006 102820 Payment Due 30 days F.O,B, Pato Alto Vendor to ship best method 07/Q1/2006 -.06/30/2007 Renee Howard / 650-4965900 ~rd@cityoipalo alto.org Page 2of 3 THIRD .4ND t:/NAL YEAR OFA 3 YEAR CONTRACT.:’: :.i"." i. " ’.": :"’’" : " " ." ." :"’..’ ’-.. " ~’ ’::""" " " ""’ ""’" """ "’ " ~his[b/anket~/chas~ag2eement:~’s ~oran amo~ntnot-fo-excee~t ,’ ’: " "" "’ " "~ " ": " :$250~O00.The City n~aL’es ~5 guar~nte#.of bct~a/o~minimum - , ’ " : ....:. " "".#urchase~ duringth.e ’term pf this ~r~fer, :":".". " " =.- " " .."¯. " "" ’ ’ " ’ ’"" 25,2~i U~£~ -: 0 : :2.%221_od20I traiqsf~~herJ i~eci~ved;648~83 -¯ : ~:"" i ~.,00-..’::- [ -¯. ., :.;.;". ,~.: ._. :. .--I": : 0030 I :transformers r~cieve~J 646884 26;997 USE " : 1.00 261997;00 " "’ ....:.i.5;464,000040...tr~nsformers-recieved.6~45283 15,462~ USC " 1100 " :oo~0 ¯transformers i;~Cieved. 645282 "26,997 " uSE ."1;00 26,997.00 0060 Transformers .".72~649 USB 1100 ~ " " "¯".72,649,00. ..Topa~lnvoid#~.#54014,653798-1,54014,65,3532 - V#ndor Wi// be responsible for requesting identi~ication from each CITY employee receiving merchandise and/or service on this Order. The employee must sign and PR/NThis/her name and the Department/Division. ~ ~ ~ * * * *~ ~ CHANGES." No FhantJes are a/Iowe~J to this o?der ~ithout an authorize(f "CHANGE ORDER" approved by City. * ~ * * * *" ~ * * * Sub-Total ’ 1.67,329.00 Asst Director, Administrative Services THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and/or drawings referred to andlor attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notffythe City promptly if delivery cannot be made on or before tl~e date specified. If partial shipment is autt~orized, so indicate on all documents. Complete packing lists must accompany each shipment. INVQICE-A separate ’nvoice is required for each order. Send to address indicated above. City.r._ Palo Alto Purchasing and Contract Administration P.O.Box 10250 -Palo Air0 CA 94303 Te1:(650)329-2271 Fa×:(650)329-2468 Blanket Order HOWARD:INDUSTRIES INC c/o Wrathall & Kusi Inc. 711 GRAND AVE; STE 300 Tel: 415-457-0808 Fax: 4i 5-457-11 55 . Utilities Eng.i~ering ¯. City of Pal0AIto ’ 1007 E wel Court . : Palo Alto: CA 94303 Utilities Engine~.fi~g " City0f Palo Alto 1007 Elwell Court ¯/Palo Alto CA 94303 Date 07/31/2006 102820 " Page3of 3 ¯ ~~ Total 167,329.00 ~’sst Director, Administrative Services THISP,O, IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - An~, specification and/or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order,DELIVERY - Please notify the City prompt y f delivery cannot be made on or before the date specified f part ash pment is authorized, so indicate on all documents. Complete packing lists must accompany each sh pment.INVOICE - A separate invoice is required for each order. Send to address indicated above.