HomeMy WebLinkAbout0511.091,
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November 21, 1991
TrlE HONORABLE CITY COUNCIL
Palo Alto, california
Maintenance Services for the RestoratioD of Substatio~ Transformer
insulating Oil -RejectigD of Bids
Members of the counril~
Report in Brief
'l'his report recommends that council reject all bids received on
September 24, 1991, for maintenance servioes for the restoration of
substation transformer insulating oil.
Discussion
The City's electric systam uses 47 substation transformers to
provide distribution voltages for use 'Within the city. Regular
tests of the ~il used to insulate and cool these transformers are
done as part of a preventive maintenance program~ According to oil
test analysis of all 47 substation transfonners, B SUbstation
transformers ~ere found to be beyond the normal test limits for
critical properties of insulatin; oil.
On september 24, 1991, five bids were received (see attached bid
summary). The bids ranged f~om $22,818 to $73,248. Unfortunately.
there was an irregularity during the bid opening. There were two
bids being opened that day_ The bid re~eived from 5-Star American
Transformer Services company (the low :bidder) -""as accidently placed
in another stack o~ bids and opened later ~ith the other bids.
In the opinion of the City Attorney. the bid opening provisions of
Palo Alto Municipal Code section 2.30.130 (e) 'Were not strictly
followed, so the bid by 5-Stal American Transformer was deemed
late, even though its :bid was received before the bid opening time.
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Staff fu~her Q~termined that one of the bidders was confused about
the necessity of the city's bonding requirements. Also, a few
bidders assumed the city would provide a power supply for their
restoration equipment and did not include that in their bid.
As a result of the bid irregularity and confusion, staff intends to
revise the specifications and further clarify the bonding
requirements. Staff will issue a new Notice Inviting Sealed bids
for this project.
Recommendation
staff recommends that
Maint~nance Services for
Insulatinq Oil.
Respectfully s~lbmitted,
Council reject the bids received for
the Restoration of Substdtion Transformer
/-. "/ . l-"f:: i , F'-"'-G---Ul <-G . ~...o.-t '--?'~ -'L-o" -.~--~---
MICHAEL D. SEAl'LAND
Electrical Engineering Manager
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RXI:HARD L. YOUNG !
Di~ector of Utilities
CHRI511191
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