2005-048S:\Our Dccuments\Or dinances\05~Ch an ge Order-DME-Transformers-Waukesha.doc
AN ORDINANCE OF THE CITY OF DENTON APPROVING A CHANGE ORDER FOR A
THREE-YEAR CONTRACT BETWEEN THE CITY OF DENTON AND WAUKESHA
ELECTRIC SYSTEMS, INC. APPROVED BY ORDINANCE NO. 2003-383 FOR THE
PURCHASE OF 15/20/25 MVA POWER TRANSFORMERS; PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE.
(BID 3105-THREE YEAR AGREEMENT CHANGE ORDER ONE IN THE ESTIM_A. TED
AMOUNT OF $54,000 PER TRANSFORMER)
WHEREAS, pursuant to City Council approval under Ordinance No. 2003-283 the City of
Denton and Waukesha Electric Systems, Inc. (the "Vendor") entered into a contract (the "Contract")
for the purchase of 15/20/25 MVA Power Transformers (the "Transformers"); and
WHEREAS, due to the dramatic increase in the cost of the major commodities used in
transformer manufacturing the Vendor has requested a change order increasing the unit price of the
Transformers by 13%, and with a price escalator for future purchases being tied to the Producers
Price Index ("PPI"), except that in no event shall the unit prices exceed 125% of the original unit
prices (the "Change Order"); and
WHEREAS, the Public Utility Board has recommended approval of the Change Order; and
WHEREAS, the City Council finds that.the Change Order serves valid public and municipal
purposes and is in the public interest; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by
reference Into the body of this ordinance as if fully set forth herein.
SECTION 2. The Change Order is hereby approved. The City Manager, or his designee, is
hereby authorized to execute the Change Order on behalf of the City and to make the expenditure of
funds provided for by the Change Order.
SECTION 3. This Change Order is also adopted as a procurement procedure authorized by
Section 252.022(c) of the Local Government Code. The expenditures provided for by the Change
Order are for Denton Municipal Electric ("DME"), a municipally owned electric utility. The City
Council is the governing body of DME. Due to the dramatic increase in the cost of major
commodities used in transformer manufacturing it is necessary that they be purchased by change
order to existing vendor contracts instead of competitively bidding the purchases. An investigation
of the market has determined that a competitive bidding process would yield prices greater than the
Change Order. The City Council hereby finds that the City and DME will be substantially harmed if
required to competitively bid the transformers. The City Council further finds that the Change Order
and the procurement procedures adopted herein serve a valid public purpose by saving the City and
DME substantial expenses that would be incurred through the competitive bidding process. This
ordinance shall also constitute a resolution of the City Council of the City of Denton.
SECTION 4.
approval.
This ordinance shall become effective immediately upon its passage and
PASSED AND APPROVED this the ~:?'~ff-(-ddayof ~.j~d'~2.005.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APP~v~D A~ TO LE~2 FJ~ti:LM:
HERBER~RNEY
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