HomeMy WebLinkAbout~Master - Cancellation of contract to provide transformers RESOLUTION NO. 06-151
RESOLUTION APPROVING CANCELLATION OF
CONTRACT TO PROVIDE TRANSFORMERS FOR
ELECTRIC SERVICES
FOR THE CITY OF AMES,IOWA
WHEREAS, on May 10, 2005, the Council awarded contracts for the purchase of Electric Distribution
Transformers,and the contract called for transformers to be purchased as requested quarterly through March 31,2006;and,
WHEREAS,these transformers are purchased from an Electric Department inventory asset account and charged
to the appropriate operations expense accounts as the units are put into service; and,
WHEREAS,this type of contract provides the City with flexibility in inventory management; and,
WHEREAS, the bid for transformer requirements was divided into three groups: single-phase padmounted
transformers,three-phase transformers,and overhead transformers; and,
WHEREAS, all three groups were awarded to RESCO of Ankeny, Iowa,with prices being firm throughout the
contract period; and,
WHEREAS, in October 2005, RESCO advised staff that the manufacturer for the three-phase padmounted
transformers,Pauwels, had notified them of a price increase;however, since the contract between RESCO and the City
called for prices to remain firm through March 31, 2006, RESCO agreed to honor the prices for the units ordered that
quarter; and,
WHEREAS,the City placed another order for transformers in March 2006,and on April 6,2006,staff was advised
by RESCO that Pauwels had refused to honor their contract with RESCO and was demanding a price increase averaging
11%;and,
WHEREAS,RESCO representatives indicated that this increase,amounting to a total of approximately$14,000,
was more than their company could absorb; and,
WHEREAS,since the original notification,RESCO has continued to attempt negotiations with Pauwels to honor
the City's order,however,RESCO has been unsuccessful to get it to accept the March 2006 order under the terms of the
original contract and has now asked that the contract for three-phase padmounted transformers be cancelled; and,
WHEREAS,RESCO has been a reliable vendor for the City for many years,and the company continues to offer
very competitive pricing and is the successful low bidder on may bids and quotations for electrical materials.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the cancellation
of a contract with RESCO for the three-phase padmounted transformers is hereby approved,and staff is to solicit new bids
for three-phase transformers manufactured by companies other than Pauwels.
ADOPTED THIS 25"day of April, 2006.
Diane R.Voss,City Clerk Ann H. Campbell,Mayor
Introduced by: Mahayni
Seconded by: Doll
Voting aye: Doll,Goodman,Mahayni, Popken,Rice
Voting nay: None Absent: Goodhue
Resolution declared adopted and signed by the Mayor this 25"'day of April,2006.