CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 to Contract 23-034, Single and Three Phase Transformers, to Deco Supply Company, Inc., Emerald Transformer PPM LLC, UUSCO of Illinois, Utility Supply and Construction Co., WEG Transformers USA and Wesco Distribution for an amount not to exceed $2,000,000
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 23-034, Single and Three Phase Transformer, to Deco Supply Company Inc., Emerald Transformer PPM LLC, UUSCO of Illinois, Utility Supply and Construction Co., Weg Transformers USA and Wesco Distribution on April 6, 2023, for a two-year term from April 5, 2023, to April 4, 2025, with three, one-year options to extend.
Change Order # 1 was approved by the City Council on October 1, 2024, to add an additional transformer vendor to the contract.
The Electric Utility (Utility) currently has approximately 8,900 distribution transformers installed throughout the city and purchases new single- and three-phase distribution transformers every year to replace units as part of normal maintenance operations.
Distribution transformers are used to supply the correct type of power to residential and commercial customers.
DISCUSSION:
The industrywide shortage of distribution transformers available for purchase continues to be a challenge. Due to this issue, orders for new units have been taking more than three years to receive. The Utility continues to seek to obtain a sufficient supply of the transformers from the approved vendors on this contract to meet the needs for maintenance, replacements of failing units, and to provide power to new construction such as Block 59.
The Utility recommends extending the contract for the first option year. The term of the first option year is April 6, 2025, to April 5, 2026, with two, one-year options remaining.
FISCAL IMPACT:
CIP#: Various
Single- and three-phase transformers are expensed to the Operating Supplies account listed below. The Electric Utility included $700,000 in the 2025 budget for warehouse supplies. The transformers that are purchased are stored in the warehouse and once they are put into the field, the cost of these transformers is expensed against the proper capital projects. The award requested is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40101300-541407 |
Electric Utility Fund |
$700,000 |