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Home My WebLink About _ 4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: August 19, 2025 FROM: Nick Zettel, Director of ITEM NO. 4.5(a) Redding Electric Utility ***APPROVED BY*** �� , rt �.. s.N,.�� k ct c �rcctor�i4' c in, u-ic[Jt'riitv �l5,`2t)�5 z�}�in,Ci an � 8113/242� nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(a)--Modifications to Award of Bid Schedule No. 5331, Three-Phase, Pad- Mounted Distribution Transformers Recommendation Authorize and approve the following modifications relative to the previously awarded Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers to WEG Transformers USA, LLC (WEG): (1) Approve amending the original first-year award amount under Bid Schedule No. 5331 from a pre-tax total of $1,072,7�9 to a revised not-to-exceed amount of $2,500,000, based on evaluated pricing and increased procurement needs during the initial term; (2) Affirm the issuance of Purchase Order No. 115316 (Oracle Reference No. PUR001624) in the amount of $1,176,118.52, including applicable taxes, for transformer purchases made under the �irst-year contract authority; and (3) Affirm that future price adjustments remain subject to the City Manager's authority under the originally approved award terms and WEG's long-term customer pricing policy, including escalation due to market conditions. Fiscal Impact The purchase of three-phase, pad-mounted transformers was included in the City of Redding Electric Utility's (REU) Fiscal Years 2023-25 and 2025-27 General System Improvements Biennial Budgets. As outlined in the five-year fmancial plan previously presented to the City Council (Council), funding for these improvements, including General System Improvements, was anticipated to come from bond proceeds. Should capital expenditures related to this initiative exceed the approved budget, staff will return to the Council with recommendations for any neeessary budget adjustments. Report to Redding City Council August 13,2025 Re: 4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers Page 2 Alternative Action The Council could choose not to affirm the issuance of Purchase Order 115316 (PUR001624) or increase the original awarded amount of Bid Schedule 5331. Doing so would require Council to provide alternative procurement direction, potentially impacting REU's ability to maintain sufficient transformer inventory. Background/Analysis On February 7, 2023, the Council approved the award of Bid Schedule No. 5331 to WEG Transformers USA, LLC (WEG) in the evaluated amount of $1,072,779.00 annually through November 30, 2027,pre-tax. On February 14, 2023, Purchase Order 115168 (PUR001625) was issued for $865,501.07 incl�uding tax, based on the original contract line item pricing. Due to severe global supply chain disruptions, materials shortages, and unprecedented market demand, the lead time for transformer delivery increased dramatically from eight to 18 weeks to 100-120 weeks. REU's transformer inventory for new construction and emergency replacements reached critically low levels, raising the risk of construction delays. As a result, REU implemented a strategic response, including refurbishing REU transformers removed from service, purchasing refurbished transformers from other utilities/vendors, and extending bid solicitations to include overseas manufacturers. As part of these efforts, and due to the critical nature of the issue, on Apri120, 2023, REU issued an additional Purchase Order 115316 (PUR001624) for $1,176,118.52, including tax, using the original contract pricing to procure additional transformers. At the time, staff proceeded under an interpretation of purchasing authority that was supported by the then—City Attorney and Purchasing Officer, whose prior administrative guidance recognized the multi-year nature of the award. Since that time, both the City Attorney and Purchasing Officer have changed, and under current leadership, staff is seeking Council affirmation to confirm that this purchase is still supported by Council. Upon �nal receipt of the initial order (Purchase Order 115168/PUR001625), approximately two years after issuance, a pricing adjustment ($117,414.12) was required to reconcile invoicing in alignment with WEG's long-term customer pricing policy. This order is now fully delivered, invoiced and paid. The second order (Purchase Order 115316/PUR001624) is expected to be delivered by the end of August 2025. Staff now requests Council's approval to inerease the total awarded amount for Bid Schedule No. 5331 to $2,500,000 including tax to account for already completed Purchase Order 115168/PUR001625 as well as the outstanding Purehase Order 115316/PUR001624, including unforeseen price escalations in alignment with WEG's long-term customer pricing policy. Report to Redding City Council August 13,2025 Re: 4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers Page 3 PO Issue Date Issue Price Closing Cost After Change Order Number Date 115168 2/14/2023 � g65,501.07 Received � 982,91519 6/16/2025 115316 4/20/2023 � 1,176,118.52 Expected � 1,368,615.11* 8/25/2025 Total Including Tax $ 2,041,619.59 $ 2,351,530.30* *This is an estimate and could change based on costs at the time of manufacturing consistent with WEGs pricing structure for long-teYm customer EnviNonmental Review This is not a project defined under California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • This agenda item is a routine operational item. Attachments Purchase Order No. ll 5168 Purchase Order No. 115316 Previous Staff Report - February 7, 2023 - Item 4.5(b) �� -......:: ' PURCHASE ORDER NO. 115168 THF,ABOVF,NUMBER MUST BF,SHOWN ON DELIVF,RY ��C,��,�,�: PAPF,RS,INVOICF,S,AND ALL CORRESPONDENCF,. FINANCE DIVISION ***Terms&Condirions Attached*** P.O.BOX 496071 ............................• REDDING,CA 96049-6071 TERMS: NET 30 PAGE DATE (530)225-4079 FAX(530)225-4324 'r0: D�LivER'r0: 1 oF 3 2J14/2023 WEG TRANSFORMERS USA LLC CITY OF REDDING ONE FAUWELS DRIVE ATTN:COX S WASH]NGTON MO 63090 ELECTRIC UTILITY BLDG 2 ............................................................................................ 20055 VIKING WAY QUOTE BID REDDING CA 96003-8229 5331 VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION VENDOR EMAIL: kriardan@weg.net COMM- UNIT TRAD� COST CL;NTPR RECVL) QTY D�SCRIPTION OF ARTICLES UNIT ,4�MOUNT ODITY PRICF, DISC. NO. AMOUNT GROUP 1 THREE PHASE PAD-TYPE TRANSFORMER 12KV 120/208V CITY PART#E 82524 4.000 75 KVA 120/208V 19,453.000 EA 77,812.00 (ITEM#1 ON BID) CITY PART#E 82525 3.000 112.5 KVA 1201208V 21,441.000 EA 64,323.00 (ITEM#2 ON BID) CITY PART#E 82526 5.000 150 KVA 120/208V 21,949.000 EA 109,745.00 (ITEM#3 ON BID) CITY PART#E 82527 3.000 225 KVA 120/208V 25,183.000 EA 75,549.00 (ITEM#4 ON BID) GROUP 2 THREE PHASE PAD TYPE TRANSFORMER 12KV 277/480V CITY PART#E 82533 1.000 75 KVA 277/480V 19,247.000 EA 19,247.00 (ITEM#9 ON BID) CITY PART#E 82537 2.000 300 KVA 277/480V 26,884.000 EA 53,768.00 (ITEM#13 ON BID) F,STIMATE I��r�c��1��has a�°d�r if��ab��11��1,��r��, ��l�d��pr��,�i�h�s�t��p��r�pprc�val b�p��ch�s3�g af��r. No. 115168 �� -......:: ' PURCHASE ORDER NO. 115168 THF,ABOVF,NUMBER MUST BF,SHOWN ON DELIVF,RY ��C,��,�,�: PAPF,RS,INVOICF,S,AND ALL CORRESPONDENCF,. FINANCE DIVISION ***Terms&Condirions Attached*** P.O.BOX 496071 ............................• REDDING,CA 96049-6071 TERMS: NET 30 PAGE DATE (530)225-4079 FAX(530)225-4324 'r0: D�LivER'r0: 2 oF 3 2J14/2023 WEG TRANSFORMERS USA LLC CITY OF REDDING ONE FAUWELS DRIVE ATTN:COX S WASH]NGTON MO 63090 ELECTRIC UTILITY BLDG 2 ............................................................................................ 20055 VIKING WAY QUOTE BID REDDING CA 96003-8229 5331 VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION VENDOR EMAIL: kriardan@weg.net COMM- UNIT TRAD� COST CL;NTPR RECVL) QTY D�SCRIPTION OF ARTICLES UNIT ,4�MOUNT ODITY PRICF, DISC. NO. AMOUNT CITY PART#E 82539 2.000 750 KVA 277/480V 42,376.000 EA 84,752.00 (ITEM#15 ON BID) CITY PART#E 82540 3.000 1000 KVA 277/480V 46,309.000 EA 138,927.00 (ITEM#16 ON BID) CITY PART#E 82532 3.000 1500 KVA 277/480V 60,957.000 EA 182,871.00 (ITEM#1'7 ON BID) P/O Subt tal 806,994.00 Total Tax 58,507.07 P/O Total 865,501.0'7 CITY OF REDDING CONTACT: 6580-31 865,501.07 SCOTT COX(530)224-4329. PER SPECIFICATIONS,TERMS AND CONDITIONS AND VENDOR SUBMISSION OF BID 5331 1NCORPORATED HEREIN BY THIS REFERENCE. TRANSFORMERS SHALL BE SHIPPED AS DESCRIBED IN THE SPECIFICATIONS. 24 HOUR ADVANCE NOTICE REQUIRED PRIOR TO DELIVERY-CALL 530-224-4329. F,STIMATE I��r�c��1��has a�°d�r if��a�b��11��1��s�r��, ��l�d��pr��,�i�hc��p�c�r�pprc�val b�p��ch�s3�g af��r. No. 115168 �� -......:: ' PURCHASE ORDER NO. 115168 THF,ABOVF,NUMBER MUST BF,SHOWN ON DELIVF,RY ��C,��,�,�: PAPF,RS,INVOICF,S,AND ALL CORRESPONDENCF,. FINANCE DIVISION ***Terms&Condirions Attached*** P.O.BOX 496071 ............................• REDDING,CA 96049-6071 TERMS: NET 30 PAGE DATE (530)225-4079 FAX(530)225-4324 'r0: D�LivER'r0: 3 oF 3 2J14/2023 WEG TRANSFORMERS USA LLC CITY OF REDDING ONE FAUWELS DRIVE ATTN:COX S WASH]NGTON MO 63090 ELECTRIC UTILITY BLDG 2 ............................................................................................ 20055 VIKING WAY QUOTE BID REDDING CA 96003-8229 5331 VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION VENDOR EMAIL: kriardan@weg.net COMM- UNIT TRAD� COST CL;NTPR RECVL) QTY D�SCRIPTION OF ARTICLES UNIT ,4�MOUNT ODITY PRICF, DISC. NO. AMOUNT **PLEASE SEND BILLING INVOiCE,WITH TH[S PURCHASE ORDER NUMBER,TO THE ADDRESS INDICATED AT THE UPPER LEFT OF THE P.O. OR EMAIL TO AP@CITYOFREDDING.ORG F,STIMATE I��r�c��1��has a�°d�r if��a�b��11��1��s�r��, ��l�d��pr��,�i�h��p�c�r�pprc�val b�p��ch�s3�g af��r. ---- Cox Internal Use only ��ASING o��m�r�iy s�gned by No. 115168 I hereby certify Chat I have received the quantities and qualities as noted Amber Edenburn in gooct condit�on,except as noted hereon. �,.,I��L,U�.� aate:2023.o2.t a U !J 14:4320-08'00' This order not valid unless signed by th�pw�chasing ofCcer Authorized Si natare Date Goods Received City of Redding, CA: Purchase Order Terms and Conditions 1.GENF.RAL:If the goods and/or services ordered herein are as a writing a Recovery Plan for this order. If the Recovery Plan is not result of either a fonnal Request for Quotation,Request for Proposal or acceptable to the City or not received within 10 caiendar days of the Notice Inviting Bids then the Terms and Conditions set forth in this necessary notification of delay or Force Majeure default,the Ciry may docun�ent are considered to be in addition to the requirements and cancel this c�rder in its entirery at no ec�st to the Ciry,owing c�nly for specifications stated in the IZFQ,RFP or NIB. To the extent that one goc�ds and services completed to that point. Ciry shall not be liable for set of Terms and Condirions may contradict the other,the requirements lost profits,implied c�r express damages c�r ec�nsequenkial damages. of the RFQ XFP or NIB shatl supercede the Terms and Condirions ll.INSPECTION AND ACCEPTANCE:Inspec[ion and acceptance shown below. It is understood that all n�aterials and/or services shall be aL destinaLic�n,unless oLherwise prc�vided. Until delivery and provided by Supplier/Contractor/Consultant(SnppGer)shall conform to acceptance,and after any rejections,risk o�F loss shall be on Lhe thc applicable requiren�cnts of City Ordinanccs,and all applicabic State Supplier unless loss results�&oin tbe negligence o�FLhe City o�FRedding. and Federal Laws Nohuithstanding the requirement for any inspection and test contained 2.DELNERY:Supplier shall deliver the items and/or services stated in specificarions applicable to this contract,except where specialized herein free from any and all claiins,debts,or demands whatsoever. inspection or tests are specified solely for the City,the Supplier shall Deliveries shall be made as set forth in this order and any additional perform or have performed the inspection and tests required to Specifications incorporated. Delivery is defined as complete delivery substantiate that the suppLies and services provided under the contract in good order,at plaee designated in the Specifications/Purchase Order. conform to the drawings,specifications,and contract requirements 3.MISCELLANEOUS CHARGES:No charges for transportation, incorporated herein,including if applicable the technical specificarions containcrs,pacldng,etc.will be allowed unlcss so spccified in this for the manufacturers'part numbers or products specified herein. order. 12.PAYMENTS:Payment terms are Net 30 unless otherwise agreed 4.FREIGHT CHARGES:All shipmcnts are F.O.B.-Destination, to by both parties. All Cash I}iscounts shall be taken and computed Supplier pays charg�s,unlcss specificd otherwise in the body of this from the date of delivery or compLetion and acceptance of the materiaL, order. If Ciry has agreed to pay frcight it shall be prcpaid and added or from the date of receipt of invoice,whichever is Latest. Each to the invoicc. In that case a copy of thc paid express or freight bill payinenL obligation of Lhe City is conditioned upon Lhe availability o�F n�ust bc attached to thc invoicc. staLe or local government funds which are apportioned or allocaLed�for 5.INDEMNITY: Snpplicr hercby agrees to protcct,defend, Lhe paymenL of such an obligaLion. l�f the funds are not allocated and indemnify and hold hannless,City,its officers,elected and appointed avaitable�for Lhe conLinuance of the funeLion performed by the Supplier, officials,empioyees,agents and volunteers from and against any and Lhe producL or service direcLly or indirectly involved in the performance ali claime,damages,losses,expenses,judgements,demands,penalties, of thaL funcLion may be terminaLed by Lhe City at the end of the period fines,defense costs,and consequential damage or iiability of any kind for which funds are available. No payment will be made until the or nature,however caused,arising directly or indirectly out of the order has been delivered and accepted. obligations or operations herein undertaken by Supplier,caused in 13.INVOICES:Invoices shall contain the following information: whole or in part by any act or omission of the Supplier,any Supplier's Federal Tax I.D.number,purchase order number,invoice subcontractors,any directly or indirectly employed by any of them or nutnber and daLe,iCem number,description o�F supplies/services, anyonc for whosc acts any of them may be liable,including but not quanLities and units o�Fmeasure,unit priees and extended Lotals. Bill of limitcd to concurrcnt active or passivc ncgligencc,exccpt where causcd Lading number and weight of shipment will be shown for shipments on by thc active ncgtigence,sole ncgligence or willful misconduct of the Ciovernment Bills of Lading. Ciry. Supplicr will conduct all defcnsc at its solc cost and cxpcnse and 14. WARRANTY:The Supplier agrees that the supplies/services thc Ciry shall have the right to approvc or disapprove Supplicr's legal furnished under this contract shall be covered by the most favorable counscl. City shall be reimburscd for all costs and attorncys'fccs corrnnercial warranries tbe Snpplier gives to any customer for such incurred by the City in enf�rcing this obligation. This indemnity shall supplies/services,and that the rights and remedies provided herein are appty to all claims and liability regardless of whether any insurance in addition to,and do not limit any rights affarded to the City by,any poticies are applicable. The policy limits do not act as a limitation other clause of a contract awarded hereunder. upon the amount of thc indemnification to bc provided by Contractor. 15.ASSIGNMENT OF CLAIMS:Claims for monies due or Lo 6.PATENT RIGHTS:Any equipmcnt or scrvice to bc furnishcd become due under this conLracL shall be assigned only pursuant Lo prior hereunder shall not,either in construction,manufacture,use,sale or wriLten consent of the CiLy Purehasing Offieer or designated other particular,infringe any letters patent,copyright or registered represenLative. trademark heretofore granted,and the Supplier shall defend and pay thc 16.CONTRACT TERMINATION:The City may,by giving ten(10) entire cost of defending any claim or suit whenever or wherever made calendar days written notice to the Supplier,terminate this conLracL or brought against the City based upon an infi-ingement or alleged prior to the designated completion daLe for due cause. Due cause for infi-ingenient of such letters}�atent,copyright or registered trademark termination shall be,but not liinited to,the best interests of the City, and sball indemnify and save harmless the City from and against any failure of the product to meet specificarions,and/or for reasons of and all liability,damage,loss or injury adjudged or sustained in any unsarisfactory service. The City may,upon giving thirty(30)catendar such claim or suit. days written norice to Supplier,terminate the contract without cause. 7.NONDISCRIMINATION CLAUSE:Except as provided in 17.GOVERNING LAW:Any acrion filed regarding the award of the Section 12940 et seq.of the Government Code,Supplier shall not Quotel Bid/Proposal or Purchase Order must be fited with the Superior discriminate against any person because of his/her race,religious creed, Court of thc Counry of Shasta,California. Any subsequent agrecment color,national origin,ancestry,pl�ysical disability,mental disability, shalt be deemed to have been entcred into in Redding,California;alt niarital status,mental condition,or gender,nor refuse to hire or employ questions of the validity,interpretation or perfonnance of any of its a�erson or to refuse to select the person for a training program leading terms or of any rights or obligations of the parties to the agreement to employment or to bar or discharge the person from employment,or shall be governed by Califomia law;and any action brought by either frotn a training program leading to employment,or to discriminate party to enforce any of the terms of the agreement shall be filed with against the person in compensation or in terms,ccmditic�ns or privileges the Superior Court of the County of Shasta,Catifonva. of employment. The Supptier shall insert in all subcontracts for any 18.ATTORNEYS'REES AND COSTS:In any acrion by a parry to work covered by this P.O.this nondiscrimination provision. enforce its rights hereunder,the nonprevailing party shall pay the 8.EXCISE TAX:If federal excise ta�c is applicable to the transaction, prevailing party's legal costs and expenses(including reasonable it must be clearly stated so and excluded fi�om the price of the article. attorneys'fees). The City of Redding,as a govemment agency,is exempt from the 19.CHANGE ORDERS:The City reserves the right at any tiine Lo payment of said tax and will issue an exemption certificate. make writLen changes within Lhe general scope of the eontract. If any 9.SALES AND USE TAXES:Sales and/or use tax must be shown on such changes cause an increase or decrease in Lhe cost of,or in Lhe Lime the invoice as a separate item. required for the performance of the contracL,an equitable adjusLment 10. DEFAULT BY SUPPLIER:In case of default by Supplier,the shall be made in the contract price,delivery schedule,or both. Any City reserves the right to procure the goods or seroices from other claim by Su�plier for ad,justment in this cause must be approved by the sources and to hold the Supplier responsible for any excess costs City's authorized representarive(s)in writing(forn�al change order, occasioned tc�the City ttiereby. Supplier must notify the City amendment,or revision)before Supplier proceeds with such change. immediately upon knowing that non-performance or delay will apply tc�this order whether as a result of Force Majeure or not. Upc�n agreement by the City that Force Majeure is applicable,Supplier shall not be I�eld accountable fc�r tl�e delays directly related to the Force Majeure ecindition. When delay is ascertained Supplier is to sul�mit in Revised 12/10/2020 �� -......:: ' PURCHASE ORDER NO. 115316 THF,ABOVF,NUMBER MUST BF,SHOWN ON DELIVF,RY ��C,��,�,�: PAPF,RS,INVOICF,S,AND ALL CORRESPONDENCF,. FINANCE DIVISION ***Terms&Condirions Attached*** P.O.BOX 496071 ............................• REDDING,CA 96049-6071 TERMS: NET 30 PAGE DATE (530)225-4079 FAX(530)225-4324 'r0: D�LivER'r0: 1 oF 3 4/20/2023 WEG TRANSFORMERS USA LLC CITY OF REDDING ONE FAUWELS DRIVE ATTN:COX S WASH]NGTON MO 63090 ELECTRIC UTILITY BLDG 2 ............................................................................................ 20055 VIKING WAY QUOTE BID REDDING CA 96003-8229 5331 VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION VENDOR EMAIL: kriardan@weg.net COMM- UNIT TRAD� COST CL;NTPR RECVL) QTY D�SCRIPTION OF ARTICLES UNIT ,4�MOUNT ODITY PRICF, DISC. NO. AMOUNT GROUP 1 THREE PHASE PAD-TYPE TRANSFORMER 12KV 120/208V CITY PART#E 82526 4.000 150 KVA 120/208V 21,949.000 EA 87,�96.00 (ITEM#3 ON BID) CITY PART#E 82527 4.000 225 KVA 120/208V 25,183.000 EA 100,732.00 (ITEM#4 ON BID) GROUP 2 THREE PHASE PAD TYPE TRANSFORMER 12KV 277/480V CITY PART#E 82533 2.000 75 KVA 277/480V 19,247.000 EA 38,494.00 (ITEM#9 ON BID) CITY PART#E 82537 4.000 300 KVA 277/480V 26,884.000 EA 107,536.00 (ITEM#13 ON BID) CITY PART#E 82538 2.000 500 KVA 277/480V 32,223.000 EA 64,446.00 (ITEM#14 ON BID) CITY PART#E 82539 4.000 750 KVA 277/480V 42,376.000 EA 169,504.00 (ITEM#15 ON BID) F,STIMATE I��r�c��1��has a�°d�r if��ab��11��1,��r��, ��l�d��pr��,�i�h�s�t��p��r�pprc�val b�p��ch�s3�g af��r. No. 115316 �� -......:: ' PURCHASE ORDER NO. 115316 THF,ABOVF,NUMBER MUST BF,SHOWN ON DELIVF,RY ��C,��,�,�: PAPF,RS,INVOICF,S,AND ALL CORRESPONDENCF,. FINANCE DIVISION ***Terms&Condirions Attached*** P.O.BOX 496071 ............................• REDDING,CA 96049-6071 TERMS: NET 30 PAGE DATE (530)225-4079 FAX(530)225-4324 'r0: D�LivER'r0: 2 oF 3 4/20/2023 WEG TRANSFORMERS USA LLC CITY OF REDDING ONE FAUWELS DRIVE ATTN:COX S WASH]NGTON MO 63090 ELECTRIC UTILITY BLDG 2 ............................................................................................ 20055 VIKING WAY QUOTE BID REDDING CA 96003-8229 5331 VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION VENDOR EMAIL: kriardan@weg.net COMM- UNIT TRAD� COST CL;NTPR RECVL) QTY D�SCRIPTION OF ARTICLES UNIT ,4�MOUNT ODITY PRICF, DISC. NO. AMOUNT CITY PART#E 82532 3.000 1500 KVA 277/480V 60,957.000 EA 182,8'71.00 (ITEM#1'7 ON BID) CITY PART#E 82522 3.000 2000 KVA 277/480V 79,333.000 EA 237,999.00 (ITEM#18 ON BID) GROUP 3 THREE PHASE PAD TYPE TRANSFORMER 12KV 120/240V DELTA-DELTA CITY PART#E 82561 4.000 300 KVA 120/240V 26,809.000 EA 107,236.00 (ITEM#20 ON BID) P/O Subt tal 1,096,614.00 Total Ta 79,504.52 P/O Total 1,176,118.52 CITY OF REDDING CONTACT: 6580-31 1,176,118.5 SCOTT COX(530)224-4329. PER SPECIFICATIONS,TERMS AND CONDITIONS AND VENDOR SUBMISSION OF BID 5331 1NCORPORATED HEREIN BY THIS REFERENCE. TRANSFORMERS SHALL BE SHIPPED AS DESCRIBED IN THE SPECIFICATIONS. 24 HOUR ADVANCE NOTICE REQUIRED PRIOR TO DELIVERY-CALL 530-224-4329. F,STIMATE I��r�c��1��has a�°d�r if��a�b��11��1��s�r��, ��l�d��pr��,�i�hc��p�c�r�pprc�val b�p��ch�s3�g af��r. No. 115316 �� -......:: ' PURCHASE ORDER NO. 115316 THF,ABOVF,NUMBER MUST BF,SHOWN ON DELIVF,RY ��C,��,�,�: PAPF,RS,INVOICF,S,AND ALL CORRESPONDENCF,. FINANCE DIVISION ***Terms&Condirions Attached*** P.O.BOX 496071 ............................• REDDING,CA 96049-6071 TERMS: NET 30 PAGE DATE (530)225-4079 FAX(530)225-4324 'r0: D�LivER'r0: 3 oF 3 4/20/2023 WEG TRANSFORMERS USA LLC CITY OF REDDING ONE FAUWELS DRIVE ATTN:COX S WASH]NGTON MO 63090 ELECTRIC UTILITY BLDG 2 ............................................................................................ 20055 VIKING WAY QUOTE BID REDDING CA 96003-8229 5331 VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION VENDOR EMAIL: kriardan@weg.net COMM- UNIT TRAD� COST CL;NTPR RECVL) QTY D�SCRIPTION OF ARTICLES UNIT ,4�MOUNT ODITY PRICF, DISC. NO. AMOUNT **PLEASE SEND BILLING INVOiCE,WITH TH[S PURCHASE ORDER NUMBER,TO THE ADDRESS INDICATED AT THE UPPER LEFT OF THE P.O. OR EMAIL TO AP@CITYOFREDDING.ORG F,STIMATE I��r�c��1��has a�°d�r if��a�b��11��1��s�r��, ��l�d��pr��,�i�h��p�c�r�pprc�val b�p��ch�s3�g af��r. ---- Cox Internal Use only ��c�e�slNG o��F1cFx No. 115316 Digitaliy signed by Amber I hereby certify Chat I have received the quantities and qualities as noted Ede„bu,,, in good condition,except as noted hereon. E„I e n L,U r n o��e.�ozs.oazo os:oess-m oo� lA (J This order not valid uuless signed by th�pw�chasing officer Authorized Si natare Date Goods Received City of Redding, CA: Purchase Order Terms and Conditions 1.GENF.RAL:If the goods and/or services ordered herein are as a writing a Recovery Plan for this order. If the Recovery Plan is not result of either a fonnal Request for Quotation,Request for Proposal or acceptable to the City or not received within 10 caiendar days of the Notice Inviting Bids then the Terms and Conditions set forth in this necessary notification of delay or Force Majeure default,the Ciry may docun�ent are considered to be in addition to the requirements and cancel this c�rder in its entirery at no ec�st to the Ciry,owing c�nly for specifications stated in the IZFQ,RFP or NIB. To the extent that one goc�ds and services completed to that point. Ciry shall not be liable for set of Terms and Condirions may contradict the other,the requirements lost profits,implied c�r express damages c�r ec�nsequenkial damages. of the RFQ XFP or NIB shatl supercede the Terms and Condirions ll.INSPECTION AND ACCEPTANCE:Inspec[ion and acceptance shown below. It is understood that all n�aterials and/or services shall be aL destinaLic�n,unless oLherwise prc�vided. Until delivery and provided by Supplier/Contractor/Consultant(SnppGer)shall conform to acceptance,and after any rejections,risk o�F loss shall be on Lhe thc applicable requiren�cnts of City Ordinanccs,and all applicabic State Supplier unless loss results�&oin tbe negligence o�FLhe City o�FRedding. and Federal Laws Nohuithstanding the requirement for any inspection and test contained 2.DELNERY:Supplier shall deliver the items and/or services stated in specificarions applicable to this contract,except where specialized herein free from any and all claiins,debts,or demands whatsoever. inspection or tests are specified solely for the City,the Supplier shall Deliveries shall be made as set forth in this order and any additional perform or have performed the inspection and tests required to Specifications incorporated. Delivery is defined as complete delivery substantiate that the suppLies and services provided under the contract in good order,at plaee designated in the Specifications/Purchase Order. conform to the drawings,specifications,and contract requirements 3.MISCELLANEOUS CHARGES:No charges for transportation, incorporated herein,including if applicable the technical specificarions containcrs,pacldng,etc.will be allowed unlcss so spccified in this for the manufacturers'part numbers or products specified herein. order. 12.PAYMENTS:Payment terms are Net 30 unless otherwise agreed 4.FREIGHT CHARGES:All shipmcnts are F.O.B.-Destination, to by both parties. All Cash I}iscounts shall be taken and computed Supplier pays charg�s,unlcss specificd otherwise in the body of this from the date of delivery or compLetion and acceptance of the materiaL, order. If Ciry has agreed to pay frcight it shall be prcpaid and added or from the date of receipt of invoice,whichever is Latest. Each to the invoicc. In that case a copy of thc paid express or freight bill payinenL obligation of Lhe City is conditioned upon Lhe availability o�F n�ust bc attached to thc invoicc. staLe or local government funds which are apportioned or allocaLed�for 5.INDEMNITY: Snpplicr hercby agrees to protcct,defend, Lhe paymenL of such an obligaLion. l�f the funds are not allocated and indemnify and hold hannless,City,its officers,elected and appointed avaitable�for Lhe conLinuance of the funeLion performed by the Supplier, officials,empioyees,agents and volunteers from and against any and Lhe producL or service direcLly or indirectly involved in the performance ali claime,damages,losses,expenses,judgements,demands,penalties, of thaL funcLion may be terminaLed by Lhe City at the end of the period fines,defense costs,and consequential damage or iiability of any kind for which funds are available. No payment will be made until the or nature,however caused,arising directly or indirectly out of the order has been delivered and accepted. obligations or operations herein undertaken by Supplier,caused in 13.INVOICES:Invoices shall contain the following information: whole or in part by any act or omission of the Supplier,any Supplier's Federal Tax I.D.number,purchase order number,invoice subcontractors,any directly or indirectly employed by any of them or nutnber and daLe,iCem number,description o�F supplies/services, anyonc for whosc acts any of them may be liable,including but not quanLities and units o�Fmeasure,unit priees and extended Lotals. Bill of limitcd to concurrcnt active or passivc ncgligencc,exccpt where causcd Lading number and weight of shipment will be shown for shipments on by thc active ncgtigence,sole ncgligence or willful misconduct of the Ciovernment Bills of Lading. Ciry. Supplicr will conduct all defcnsc at its solc cost and cxpcnse and 14. WARRANTY:The Supplier agrees that the supplies/services thc Ciry shall have the right to approvc or disapprove Supplicr's legal furnished under this contract shall be covered by the most favorable counscl. City shall be reimburscd for all costs and attorncys'fccs corrnnercial warranries tbe Snpplier gives to any customer for such incurred by the City in enf�rcing this obligation. This indemnity shall supplies/services,and that the rights and remedies provided herein are appty to all claims and liability regardless of whether any insurance in addition to,and do not limit any rights affarded to the City by,any poticies are applicable. The policy limits do not act as a limitation other clause of a contract awarded hereunder. upon the amount of thc indemnification to bc provided by Contractor. 15.ASSIGNMENT OF CLAIMS:Claims for monies due or Lo 6.PATENT RIGHTS:Any equipmcnt or scrvice to bc furnishcd become due under this conLracL shall be assigned only pursuant Lo prior hereunder shall not,either in construction,manufacture,use,sale or wriLten consent of the CiLy Purehasing Offieer or designated other particular,infringe any letters patent,copyright or registered represenLative. trademark heretofore granted,and the Supplier shall defend and pay thc 16.CONTRACT TERMINATION:The City may,by giving ten(10) entire cost of defending any claim or suit whenever or wherever made calendar days written notice to the Supplier,terminate this conLracL or brought against the City based upon an infi-ingement or alleged prior to the designated completion daLe for due cause. Due cause for infi-ingenient of such letters}�atent,copyright or registered trademark termination shall be,but not liinited to,the best interests of the City, and sball indemnify and save harmless the City from and against any failure of the product to meet specificarions,and/or for reasons of and all liability,damage,loss or injury adjudged or sustained in any unsarisfactory service. The City may,upon giving thirty(30)catendar such claim or suit. days written norice to Supplier,terminate the contract without cause. 7.NONDISCRIMINATION CLAUSE:Except as provided in 17.GOVERNING LAW:Any acrion filed regarding the award of the Section 12940 et seq.of the Government Code,Supplier shall not Quotel Bid/Proposal or Purchase Order must be fited with the Superior discriminate against any person because of his/her race,religious creed, Court of thc Counry of Shasta,California. Any subsequent agrecment color,national origin,ancestry,pl�ysical disability,mental disability, shalt be deemed to have been entcred into in Redding,California;alt niarital status,mental condition,or gender,nor refuse to hire or employ questions of the validity,interpretation or perfonnance of any of its a�erson or to refuse to select the person for a training program leading terms or of any rights or obligations of the parties to the agreement to employment or to bar or discharge the person from employment,or shall be governed by Califomia law;and any action brought by either frotn a training program leading to employment,or to discriminate party to enforce any of the terms of the agreement shall be filed with against the person in compensation or in terms,ccmditic�ns or privileges the Superior Court of the County of Shasta,Catifonva. of employment. The Supptier shall insert in all subcontracts for any 18.ATTORNEYS'REES AND COSTS:In any acrion by a parry to work covered by this P.O.this nondiscrimination provision. enforce its rights hereunder,the nonprevailing party shall pay the 8.EXCISE TAX:If federal excise ta�c is applicable to the transaction, prevailing party's legal costs and expenses(including reasonable it must be clearly stated so and excluded fi�om the price of the article. attorneys'fees). The City of Redding,as a govemment agency,is exempt from the 19.CHANGE ORDERS:The City reserves the right at any tiine Lo payment of said tax and will issue an exemption certificate. make writLen changes within Lhe general scope of the eontract. If any 9.SALES AND USE TAXES:Sales and/or use tax must be shown on such changes cause an increase or decrease in Lhe cost of,or in Lhe Lime the invoice as a separate item. required for the performance of the contracL,an equitable adjusLment 10. DEFAULT BY SUPPLIER:In case of default by Supplier,the shall be made in the contract price,delivery schedule,or both. Any City reserves the right to procure the goods or seroices from other claim by Su�plier for ad,justment in this cause must be approved by the sources and to hold the Supplier responsible for any excess costs City's authorized representarive(s)in writing(forn�al change order, occasioned tc�the City ttiereby. Supplier must notify the City amendment,or revision)before Supplier proceeds with such change. immediately upon knowing that non-performance or delay will apply tc�this order whether as a result of Force Majeure or not. Upc�n agreement by the City that Force Majeure is applicable,Supplier shall not be I�eld accountable fc�r tl�e delays directly related to the Force Majeure ecindition. When delay is ascertained Supplier is to sul�mit in Revised 12/10/2020 GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: February 7, 2023 FROM: Nick Zettel, Director of ITEM NO. 4.5(b) Redding Electric Utility ***APPROVED BY*** �� , rt �.. s.N,.�� k et e o� �rcctor�i9' e in r tric�Llt'rtity 1J2�+t2��3 ippin,Ci �� an �� 1I�0/2423 nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(b)--Award Bid Schedule No. 5331, Three-Phase, Pad-Type Distribution Transformers Recommendation Authorize the following relative to Bid Sched�ule No. 5331, Three-Phase, Pad-Type Distribution Transformers for the Redding Electric Utility: (1) Award to WEG Transformers USA, LLC, (WEG) for the pretax amount of$1,072,779; (2) Authorize the Purchasing Officer to extend the bid award annually with WEG through November 30, 2027, if mutually agreeable, with a11 terms and conditions remaining the same, and price adjustments per WEG's price adjustment policy for long term customers; and (3) Autharize the City Manager, or desigr�ee, to approve changes to future pricing terms and policies as needed d�ue to inflation and unstable economic conditions. Fiscal Impact Redding Electric Utility (REU) included funding for purchasing three-phase, pad-type distribution transformers in its adopted budget for the Fiscal Year 2022-23. REU will include transformer costs for future years as part of its biennial budget reguests. Alterna�ive Action The City Council could choose to not award the bid to WEG, and provide staff with an alternative direction. Background/Analysis This is a routine bid for the purchase of three-phase, pad-type distribution transformers through November 30, 2023, on an as-needed basis, subjeet to the availability of budgeted funds. These three-phase, pad-type distY-ibution transformers are required to support residential and eommercial development and provide emergency replacement of the existing three-phase, pad-type distribution transformers that are presently in service. Report to Redding City Council January 30,2023 Re: 4.5(b)--Bid Schedule No. 5331, Three-Phase, Pad-Type Distribution Transformers Page 2 On November 28, 2022, two bids were opened for the subject three-phase, pad-type distribution transformers. In the evaluation process, staff analyzed the bids based on the bid price and compliance with specifications. The qualifying low bid was submitted by WEG, which supplies the needed transformers and is compliant with the specifications, general conditions, and proposal requirements. WEG has previously supplied distribution transformers to REU. Transformers are purchased based on two criteria — purchase price and efficiency. The initial savings from a less costly transformer can be lost if the transformer is inefficient. Inefficiency results in a much higher cost for energy losses, which increases the life cycle cost of the unit. Bidders are made aware of the methodology used in bid evaluations. EnviNonmental Analysis This is not a project defined under California Environmental Quality Act (CEQA), and no further action is required. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments Bid Tab - 5331