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Home My WebLink About _ 4.5(a)--Request to Modify Purchase Order PUR000922 of Padmount Distribution Transformers � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: April 16,2024 FROM: Nick Zettel, Director of ITEIVI NO. 4.5(a) Redding Electric I7tility ***APPROVED BY*** � ��. ; � _ � v �� „ �� :k ct c. ��yrectc� �it e in�� lric�ttti}ity �,=33'?f)2� � � �p�zt�,C`i �� t t�� t''t�,�'2{}� , nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(a)--Request to Modify Purchase Order PUR000922 of Padmount Distribution Transformers Recommendation Approve inodification to City af Redding Purchase Order PUR000922 for Padmount Distribution Transformers to Emerald Transformer to increase the original amount of $206,121.09 by $11,175.00 for a new total amount of $217,296.09, due to additional freight charges not included in the initial approval. Fiscal Impact The procurement of transformers is classi�ed as General System Improvements (GSI), encompassing expenses such as annual recurring expenditures for installing facilities required to provide reliable electric service. The necessary funds for the increased cost are available within the budget allocated for GSI in the current fiscal year. Alternative Action The City Council could choose nat to authorize the request and provide alternative directions to staff regarding the procurement of transformers. Backg�ound/Analysis On November 29, 2023, purchase order PUR000922 was issued to Emerald Transformer as approved by the City Manager and subsequently ratified by the City CounciL The purchase order inc]uded two 1OOOkVA transformers and one SOOkVA transformer, eaeh a surplus General Electric unit. This allowed REU to meet transformer-sourcing requirements for existing customer work orders while finalizing other transformer-sourcing initiatives. The initial approval for purchase order PUR000922 for $206,12 L09 did not include freight charges. Additional freight charges were noted in the original quote but were not included on PUR000922 due to staff oversight. Freight charges for transformers are expected and are the industry standard. Upon shipment and invoicing, Emerald Transformer included a $11,175.00 Report to Redding City Council Apri18,20Z4 Re: 4.5(a)--Request to Modify Purchase Ora'er PUR000922 of Padmount Distribution Transformers Page 2 freight charge. This increases the total cost incurred to $217,296.09. As detailed in the original staff report, the procurement process and decision-making remain unchanged. Environmental Analysis This action does not fall under the scope of the California Environmental Quality Act, and no further environmental assessment is required. Council P�^iority/City ManageN Goals • This agenda item is a routine operational item. Attachments ^PUR000922 ^Emerald Transformer Invoice ^Initial Emerald Transformer Quote Related to PUR000922 ^Original Staff Report Related to the Purchase of Emerald Transformer Refurbished Transformers � I = Y O F - Purchase Order PUR000922 ; REQDINC � C A L I F O R N I;,A" Email:��r�t��b1�� fr�ddir� .c�r� Contact#: (530) 225-4079 �,�''{�t,�,{�,�.t,=,f�;{��,{.,{��{l�i,�;, � � `'i. PUR000922 t;i{��?r{s3ty�tf{k?�<i1f};',�}ft�,��} .r.,!, if t71fr:'t x�7tv �`�`#��t�''jt'!�£r,4`r'�`Y;,{t}`'��lz'{`t},��.`�r,��,�£#$ ' ,�l ,, ,�;� 29-NOV-2023 i�;'�}!��}{��)�tf{�}{'tfi(�§s#i�$;i�ty>�.,.�.� � ��I, �F!�� ,f;<�N}3 Q �{��'�ti�i2t kE�}t�£ {ttjt7t� s t} 1 {; l�� t�$ i�'�4f�{�t��iit'f'�i,f�"{r;iti�jr;t7J�!��f��f�'j,{'t#`,�? 29-NOV-2023 tr7at,iy �,Sllr,f,>�r1�islS�tt{��l.t�,,}�'}�ii{rSL�x��It�t<?t,t,,, ��t }l�S�F�}�if`y�4,t„ rtti ttlitsi},frA{ltJ;rrs ' � $� Q t�.� �37#tsv4, �?�tf,st, <�� { Ri�r� JF�J t rj��{t� t�ts�t1��3 4`�i� t � t s � ��'� ��'i, ��' ��r..f,,{:.z� ��; �:�� 206,'121.09 USD USD= US Dollar 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. S �� ,,a .�Q �, �rrrr w,�� '�� , ,,,. . �d�+� .. ,, �� t ��...,.� �� ,.�� , 10089 Net 30 Michelle Kempley Natasha Rose Phone 1-530-225-4137 E-mail: nrose@cityofredding.org �,i�� lt�rta. ;�P�ic�*�` ��ua�t��t}�: [JC}�� : (3rd�d�"Tax�bl��-� 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 ; REQDINC � C A L I F O R N I;,A" �9�i��-1��r� �� F�r`�� t�t��t��}r� � � ��tJC��. � �rd��r�d��'f"��ab� 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 ; REQDINC � C A L I F O R N I;,A" 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 ; REQDINC � C A L I F O R N I;,A" 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 �� , ME LD �� TR1�I�ISFORMER PAGE 1 Emerald Transformer LA LLC INVOICE DATE 2/19/2024 5756 Alba Street INVOICE NO 240004714RB Los Angeles,CA 90058-3808 UNITED STATES (323)-277-2500 S Redding Electric Utility H 3611 Avtech Parkway � Redding,CA 96002 S RED18910 p p Redding Electric Utility � 3611 Avtech Parkway T � Redding,CA 96002 � T TOTAL DUE 217,296.09 O S�S1 S�S2 DUE DATE DISC DUE DATE ORDER NO ORDER DATE SHIP NO SN 2 3/20/2024 2/29/2024 00012807 2/19/2024 TERMS DESCRIPTION CUSTOMER PO NO SHIP VIA SHIP DATE 1% 10, Net 30 PUR000922 2/19/2024 ITEM ID TX CL UNITS ORDERED SHIPPED UNIT PRICE EXTENSION 1000 KVA 3PH PAD 0 EACN 2.0000 2.0000 70,625.000000 141,250.00 1000 KVA 3PH PAD 500 KVA 3PH PAD 0 EACN 1.0000 1.0000 50,937.500000 50,937.50 500 KVA 3PH PAD We appreciate your business. TAXABLE NONTAXABLE FREIGHT SALES TAX MISC TOTA� 192,187.50 0.00 11,175.00 13,933.59 0.00 217,296.09 TOTAL DUE 217,296.09 PNC Bank REMIT TO One Financial Pkwy P.O.Box 676048 Kalamazoo,MI 49009 Dallas,TX 75267-6048 ABA:031207607 Acct:80-2637-7822 Please reference invoice number with payment-thank you! $�� ;, � 4� �{ ��.�`{f' � � ��"� �`, . November 9, 2023 Quote Number: 00003850 Wyatt Hopwood City of Redding Electric Departmenti Dear Wyatt, Thank you for considering Emerald Transformer for your transformer and electrical equipment needs. Emerald Transformer offers our clients a broad spectrum of transformer and electrical equipment service needs, along with environmental services, and can dispose of hazardous material at or through an Emerald Transformer-owned and operated facility. In addition to managing your transformer service needs, Emerald Transformer also provides: • Electrieal Equipment Refurbishment • Facility Decontamination/Remediation Services • PCB Contaminated Oil Retrofilling • Transformer and Equipment Decommissioning-Including PCB Disposal • Oi1 Processing and Laboratory Analysis • Transformer and Equipment Parts • In-Fie1d Technieal Services We appreciate the opportunity to be of service. Tf you have any questians regarding this propasal,please contact me at (206) 747-3'771. Sincerely, Hakim Hussein Account Representative Emerald Transformer . ° - - .- . . : �� :E, ��• ::�, . . - $�� ;, � 4� �{ ��.�`{f' � � ��"� �`, . Transformer Quote Prodnet Q�uantity Vnit Frice Su�btotal NEW Three Phase Padmount 500 KVA ➢ High Voltage(HV): 13200 Delta ➢ Phase:3 ➢ HV Bi1:95KV ➢ Taps: 14400I13800I13200/12870/12470112tJ00111500 ➢ Low Voltage(L�:480YI277 ➢ LV Bil:30KV ➢ Temperature Rise:65°C ➢ Frequency:60 Hz ➢ Cooling Class:ONAN ➢ Ilnpedance:Standard ➢ Fluid Type:Oil 1 $50,937.50 �50,937.50 ➢ IIV Configuration:Dead Front,Loop Feed ➢ HV Bushing Style:200 Amp Bushing Wells ➢ LV Bushing Style:4 Hole ➢ Fusing:Bayonet 4 position ➢ Lbor switch ➢ Liquid Level Gauge ➢ Liquid Temperature Gauge ➢ Pressure Vacuum Gauge ➢ -PRV 1"Drain Valve with 318" Sampler SHIPMENT:5-6 WEEKS WARRANTY:ONE YEAR Product Quantity Unit Price Subtotal ' NEW Three Phase Padmount 1000 KVA ➢ High volYage(H�: 13200 ➢ Delta HV BIL:95 KV ➢ Taps: 14400/13800/13200/12870/12470/120QEit11500 ➢ I,ow voltage(LV):480Y1277 ➢ LV BIL:30 KV ➢ Temperaturerise: 65°C ➢ Frequency:60 Hz ➢ Cooling class:ONAN ➢ Phase:3 ➢ Impedance:standard ➢ Fluidtype:oil 2 $70,625.00 $141,250.00 ➢ HV configuration:dead front,loop feed ➢ HV bushing style:200-amp bushing wells ➢ LV bushing sryle:6-hole ➢ Fusing:bayonet ➢ 4-position LBOR switch ➢ Liquid level gauge ➢ Liquid temperature gauge ➢ Pressure vacuum gauge ➢ PRV 1°drain valve with 3/8"sainpier SHIPMENT.5-6 WEEKS WARRANTY:ONE YEAR . - .- . . : �o :�� •�• ::�� . . - $�� ;, � 4� �{ ��.�`{f' � � ��"� �`, . Estimated Total: $192,187.50 Shipping: Additional Lead Time: 5 —33 WEEKS ARO Warranty: 1 YEAR FOB: Destination GENERAL TERMS & CONDITIONS Except where superseded by an existing agreement, the following terms and conditions apply to this quoted business: • Emerald Transformer guarantees rates are firm for 30 days and order times will vary from 6-12 weeks. • If the customer cancels an order, the customer may incur cancellation and restocking fees. • Where modifications to the original transformer specifications become necessary, Emerald Transformer will obtain customer authorization for such modifications and a revised quoted price to fulfill order. • Standard repair pricing includes a new PRV and gaskets. All other parts wi11 be at additional cost. • Pricing unless otherwise reflected does not include transportation or offloading fees at customer site. All rigging and removal from the truck/trailer is the responsibility of the customer. Customer is also responsible for loading the truck/trailer when returning equipment. • Emerald Transformer' standard credit terms are Net 30 days. • Interest will be charged at 1.5%per month or the maximum allowed by law for all past due amounts. • Local, state, and federal fees/taxes are not included and the customer is responsible to pay any such fees where applicable. • This proposal is submitted contingent upon the right to negotiate mutually acceptab]e contract terms and conditions, which are reflective of the work contemplated, and an equitable distribution of the risks involved therein. Tn the event that such agreement cannot be reached, Emerald Transformer reserves the right to decline to enter into such an agreement without prejudice or penalty. For order processing to proceed we ask that you acknowledge the quotation with a signature and provide the appropriate purchase order number. Signed: Date: Purchase Order Number: . - .- . . �� :�� •�: •:t� . s ,� 6 � � �' � � � � � � ' � � � � � � CITY OF REDDING _��3x REPORT TO TI�E CITY COUNCIL MEETING DATE: December 19, 2023 FROM: Nick Zettel, Director of ITEM NO. 4.5(a) Redding Electric Utility ***APPROVED BY*** .,'�°"' � �� *�� .. . � ", `ck e�te, �srectc� csf c; i��* ta�ic[JtiCicy 1'?3't�,��()2� ry �ppin,Ci �[an e I211�12tJ�:3 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 Fiseal Year 2023-25 Biennial Budget and the Aging Infrastructure Replacement Project for Electric Utility Line Construction Serviees. In the five-year plan presented to the City Couneil (Council), City of Redding Electric Utility (REU) anticipated these projects Inay 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. Alte�native Action The Council could choose not to authorize the proposed actians 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 shortage. Staff efforts to secure transformers through the conventional bidding proeess have been met with two- to three-year lead times, signifieantly delaying our ability to address the current shortage. Additionally, the City of Redding (City) is experiencing increased development and eleetric vehicle 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: 4.5(a)--Ratify Purchase Ora'er PUR000922 of Padmount Distribution Transformers Page 2 Infrequently, General Electric offers surplus transformers 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 will allow REU to meet transformer sourcing requirements for existing customer work orders while finalizing other transformer-sourcing initiatives. The two 1000kVA transformers and one SOOkVA t�ransformer 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 Prio�ity/City NfanageN 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