HomeMy WebLinkAbout _ 4.5(a)--Ratify Purchase Order PUR000922 of Padmount Distribution Transformers � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: December 19, 2023 FROM: Nick Zettel, Director of
ITEIVI NO. 4.5(a) Redding Electric I7tility
***APPROVED BY***
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nzettel@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.5(a)--Ratify Purchase Order PUR000922 of Padmount Distribution
Transformers
Recommendation
Approve and ratify the City Manager's approval of purchase order PUR000922 for Padmount
Distribution Transformers to Emerald Transformer, in the amount of$206,121.09, for the City of
Redding Electric Utility.
Fiscal Impact
Transformer purchases are included in the General System Improvements Fiscal Year 2023-25
Biennial Budget and the Aging Infrastructure Replacement Project for Electric Utility Line
Construction Services. In the five-year plan presented to the City Council (Couneil), City of
Redding Electric Utility (REU) anticipated these projects may be bond-funded. If capital
expenses related to these efforts are projected to exceed the approved budget, staff will return
with additional recommendations related to budgetary adjustments and financing options.
Alternative Action
The Council could choose not to authorize the proposed actions and provide alternative
directions to staff regarding the procurement of transformers.
Background/Analysis
REU staff have been managing procurement options of distribution transformers during an
ongoing nationwide supply chain shartage. Staff efforts to secure transformers through the
conventional bidding process have been met with two- to three-year lead times, significantly
delaying our ability to address the current shortage. Additionally, the City of Redding (City) is
experiencing increased development and electrie vehiele charger installation requests, further
straining the current inventory of distribution transformers. Part of the current strategy for
diversifying the supply chain of transformers is to spot-order refurbished transformers. Staff
defines refurbished transformers as any transformer manufactured before the date it was offered
to the City.
Report to Redding City Council December 12,2023
Re: 4S(a)--Ratify Purchase Order PUR000922 of Padmount Distribution Transformers Page 2
Infrequently, General Electric offers surplus transfonners to Emerald Transformer for third-party
resale, which meets REU's definition of a refurbished transformer. On November 29, 2023,
purchase order PUR000922 was issued to Emerald Transformer as approved by the City
Manager. This wi11 a11ow REU to meet transformer sourcing requirements for existing customer
work orders while finalizing other transformer-sourcing initiatives. The two 1000kVA
transformers and one SOOkVA transformer included in this purchase order were manufactured by
General Electric but have not been put into service.
Environmental Analysis
This action does not fall under the scope of the California Environmental Quality Act, and no
further environmental assessment is required.
Council Pr�ioNity/City Manage� Goals
• Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Attachments
PUR000922
� I = Y O F - Purchase Order PUR000922
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Email:�����r�t�����b1����� �fr�ddir� .c�r�
Contact#: (530) 225-4079
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Sold To City of Redding Supplier Emerald Transformer Los Angeles, LLC
777 Cypress Ave 5756 Alba Street
Redding, CA 96001 Vernon,CA 90058
Bill To City of Redding Ship To EleCtriC Utility- Building 2
777 Cypress Ave 20055 Viking Way
Redding, CA 9600'I Redding,CA 96003
Notes Per quote number 00003850 dated November 9,2023 by Hakim Hussein.
City of Redding Engineering contact:Wyatt Hopwood;whopwood@cityofredding.org; (530)339-7313
Delivery contact: Scott Cox;scox@cityofredding.org; (530)224-4329
"*24-hour advance notice required prior to delivery**"
Please submit invoices to accountspayable@cityofredding.org for prompt payment.
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10089 Net 30
Michelle Kempley Natasha Rose
Phone 1-530-225-4137 E-mail: nrose@cityofredding.org
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1 Three Phase Padmount 500 KVA 50,937.50 Each
Transformer
1 Each 50,937.50
Requested
1
� I = Y O F - Purchase Order PUR000922
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12/03/2023 ,
�in�T���� ;; 50,937.50
2 Three Phase Padmount 1000 70,625.00 Each
KVA Transformers
2 Each 141,250.00
Requested
12/03/2023
Lirre�iital. 141,250.00
3 Sales Tax 13,933.59 Lump sum
Ship To 1 Lump sum 13,933.59
20055 Viking Way
Redding, CA 96003Shasta Requested
UNITED STATES
L�ne�`���� 13,933.59
206,121.09
Proprietary and Confidential 2
� I = Y O F - Purchase Order PUR000922
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City of Redding, CA: Purchase Order Terms and Conditions
1. GENERAL: If the goods and/or services ordered herein are as a result of either a formal Request for Quotation,
Request for Proposal or Notice Inviting Bids then the Terms and Conditions set forth in this document are considered to
be in addition to the requirements and specifications stated in the RFQ, RFP or NIB. To the extent that one set of Terms
and Conditions may contradict the other, the requirements of the RFQ, RFP or NIB shall supercede the Terms and
Conditions shown below. it is understood that all materials and/or services provided by Supplier/Contractor/Consultant
(Supplier)shall conform to the applicable requirements of City Ordinances, and all applicable State and Federal Laws.
2. DE�IVERY: Supplier shall deliver the items and/or services stated herein free from any and all claims, debts, or
demands whatsoever. Deliveries shall be made as set forth in this order and any additional Specifications incorporated.
Delivery is defined as complete delivery in good order, at place designated in the Specifications/Purchase Order.
3. MISCELLANEOUS CHARGES: No charges for transportation, containers, packing, etc. will be allowed unless so
specified in this order.
4. FREIGHT CHARGES: All shipments are F.O.B. - Destination, Supplier pays charges, unless specified otherwise in the
body of this order. If City has agreed to pay freight it shall be prepaid and added to the invoice. in that case a copy of the
paid express or freight bill must be attached to the invoice.
5. INDEMNITY: Supplier hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected and
appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses,
judgements, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature,
however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Supplier, caused in
whole or in part by any act or omission of the Supplier, any subcontractors, any directly or indirectly employed by any of
them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive
negligence, except where caused by the active negligence, sole negligence or willful misconduct of the City. Supplier will
conduct all defense at its sole cost and expense and the City shall have the right to approve or disapprove Supplier's legal
counsel. City shall be reimbursed for all costs and attorneys'fees incurred by the City in enforcing this obligation. This
indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy
limits do not act as a limitation upon the amount of the indemnification to be provided by Contractor.
6. PATENT RIGHTS: Any equipment or service to be furnished hereunder shall not, either in construction, manufacture,
use, sale or other particular, infringe any letters patent, copyright or registered trademark heretofore granted, and the
Supplier shall defend and pay the entire cost of defending any claim or suit whenever or wherever made or brought
against the City based upon an infringement or alleged infringement of such letters patent, copyright or registered
trademark and shall indemnify and save harmless the City from and against any and all liability, damage, loss or injury
adjudged or sustained in any such claim or suit.
7. NONDISCRIMINATION C�AUSE: Except as provided in Section 12940 et seq. of the Government Code, Supplier shall
not discriminate against any person because of his/her race, religious creed, color, national origin, ancestry, physical
disability, mental disability, marital status, mental condition, or gender, nor refuse to hire or employ a person or to refuse
to select the person for a training program leading to employment or to bar or discharge the person from employment, or
from a training program leading to employment, or to discriminate against the person in compensation or in terms,
conditions or privileges of employment. The Supplier shall insert in all subcontracts for any work covered by this P. O. this
nondiscrimination provision.
8. EXCISE TAX: If federal excise tax is applicable to the transaction, it must be clearly stated so and excluded from the
price of the article. The City of Redding, as a government agency, is exempt from the payment of said tax and will issue
an exemption certificate.
9. SALES AND USE TAXES: Sales and/or use tax must be shown on the invoice as a separate item.
10. DEFAULT BY SUPP�IER: In case of default by Supplier, the City reserves the right to procure the goods or services
from other sources and to hold the Supplier responsible for any excess costs occasioned to the City thereby. Supplier
must notify the City immediately upon knowing that non-performance or delay will apply to this order whether as a result of
Force Majeure or not. Upon agreement by the City that Force Majeure is applicable, Supplier shall not be held
accountable for the delays directly related to the Force Majeure condition. When delay is ascertained Supplier is to submit
in writing a Recovery Plan for this order. If the Recovery Plan is not acceptable to the City or not received within 10
calendar days of the necessary notification of delay or Force Majeure default, the City may cancel this order in its entirety
at no cost to the City, owing only for goods and services completed to that point. City shall not be liable for lost profits,
implied or express damages or consequential damages.
Proprietary and Confidential 3
� I = Y O F - Purchase Order PUR000922
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11. INSPECTION AND ACCEPTANCE: Inspection and acceptance shall be at destination, unless otherwise provided.
Until delivery and acceptance, and after any rejections, risk of loss shall be on the Supplier unless loss results from the
negligence of the City of Redding. Notwithstanding the requirement for any inspection and test contained in specifications
applicable to this contract, except where specialized inspection or tests are specified solely for the City, the Supplier shall
perform or have performed the inspection and tests required to substantiate that the supplies and services provided under
the contract conform to the drawings, specifications, and contract requirements incorporated herein, including if applicable
the technical specifications for the manufacturers' part numbers or products specified herein.
12. PAYMENTS: Payment terms are Net 30 unless otherwise agreed to by both parties. All Cash Discounts shall be taken
and computed from the date of delivery or completion and acceptance of the material, or from the date of receipt of
invoice, whichever is latest. Each payment obligation of the City is conditioned upon the availability of state or local
government funds which are apportioned or allocated for the payment of such an obligation. If the funds are not allocated
and available for the continuance of the function performed by the Supplier, the product or service directly or indirectly
involved in the performance of that function may be terminated by the City at the end of the period for which funds are
available. No payment will be made until the order has been delivered and accepted.
13. INVOICES: Invoices shall contain the following information: Supplier's Federal Tax I.D. number, purchase order
number, invoice number and date, item number, description of supplies/services, quantities and units of ineasure, unit
prices and extended totals. Bill of Lading number and weight of shipment will be shown for shipments on Government Bills
of Lading.
14.WARRANTY: The Supplier agrees that the supplies/services furnished under this contract shall be covered by the
most favorable commercial warranties the Supplier gives to any customer for such supplies/services, and that the rights
and remedies provided herein are in addition to, and do not limit any rights afforded to the City by, any other clause of a
contract awarded hereunder.
15.ASSIGNMENT OF CLAIMS: Claims for monies due or to become due under this contract shall be assigned only
pursuant to prior written consent of the City Purchasing Officer or designated representative.
16. CONTRACT TERMINATION: The City may, by giving ten (10) calendar days written notice to the Supplier, terminate
this contract prior to the designated completion date for due cause. Due cause for termination shall be, but not limited to,
the best interests of the City, failure of the product to meet specifications, and/or for reasons of unsatisfactory service. The
City may, upon giving thirty (30)calendar days written notice to Supplier, terminate the contract without cause.
17. GOVERNING �AW: Any action filed regarding the award of the Quote/Bid/Proposal or Purchase Order must be filed
with the Superior Court of the County of Shasta, California. Any subsequent agreement shall be deemed to have been
entered into in Redding, California; all questions of the validity, interpretation or performance of any of its terms or of any
rights or obligations of the parties to the agreement shall be governed by California law; and any action brought by either
party to enforce any of the terms of the agreement shall be filed with the Superior Court of the County of Shasta,
California.
18.ATTORNEYS' FEES AND COSTS: In any action by a party to enforce its rights hereunder, the nonprevailing party
shall pay the prevailing party's legal costs and expenses (including reasonable attorneys'fees).
19. CHANGE ORDERS: The City reserves the right at any time to make written changes within the general scope of the
contract. If any such changes cause an increase or decrease in the cost of, or in the time required for the performance of
the contract, an equitable adjustment shall be made in the contract price, delivery schedule, or both. Any claim by
Supplier for adjustment in this cause must be approved by the City's authorized representative(s) in writing (formal change
order, amendment, or revision) before Supplier proceeds with such change
Proprietary and Confidential 4