AGENDA MEMORANDUM

 

 

Meeting Date:           November 14, 2011

 

From:                          Mike Thornton

 

Subject:                      Resolution authorizing execution of an agreement with CG Power System for the purchase of a substation class electric transformer.

 

 

Staff Recommendation:

Staff recommends approval of the resolution authorizing execution of the agreement with CG Power Systems for a total amount of $664,222.00.

 

Analysis:

Leesburg Electric Utility has the need to replace an existing electric transformer at the East Substation with a new larger substation class transformer.  The purchase of this new transformer will provide better reliability and efficiency to the Electric Utility and the customers they serve.

 

On March 7, 2011 the Purchasing Division issued Invitation to Bid 110121 for the purchase of a 67 to 15 kV substation power transformer.  On April 27, 2011, 10 responses were received.  Those responses are summarized here.

 

The Electric Utility has reviewed the responses.  The evaluation of power transformers is not made solely on the purchase cost.  When evaluating transformers, the total cost of ownership (TCO) is considered.  The TCO utilizes a calculation that determines the total ‘losses’ over the life of the transformer.  The losses are equated to the efficiency of the transformer.  The proposal submitted by CG Power Systems has been deemed providing the lowest initial purchase cost and Total Cost of Ownership to the utility.


SUMMARY OF BIDS

 

Vendor Name

Transformer

Base Bid

Transformer Bid with Options

Calculated Total Cost of Ownership

CG Power Systems

$609,722.00

$664,222.00

$801,181.20

Virginia Transformer

$629,400.00

$677,650.00

$846,896.00

Delta Star

$664,825.00

$712,492.00

$846,931.00

Superior Power Products

$704,600.00

$704,600.00

Not Provided

WEG Electric

$721,093.00

$721,093.00

$855,653.20

WESCO Distribution

$731,185.00

$796,400.00

$942,499.60

Tri-State Utilities

$734,568.00

$734,568.00

$879,542.90

Niagara Transformers

$748,425.00

$748,425.00

$944,511.40

Waukesha Electric

$770,424.00

$802,284.00

$938,139.20

Fortune Electric

$859,910.00

$996,920.00

$1,173,886.00

 

 

 

Options:

1.  Approve the resolution authorizing execution of an Agreement with CG Power Systems; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

This purchase will be funded 50% from the Department of Energy Smart Grid Investment Grant awarded to the City.  The matching funds will be provided from the Electric Utility CIP fund.  The city matching 50% may be replenished through financing of the City’s Smart Grid project.  If for some reason the Department of Energy grant funding not be available for this purchase, the full purchase cost of $664,222.00 will need to be provided from fund balance

 

 

Submission Date and Time:    11/10/2011 2:04 PM____

 

Department: _Electric Department______

Prepared by:  _Mike Thornton________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. _____JB___________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-1099-531-6460__

 

Project No. __410012____________

 

WF No. _____705619/1__________

 

Budget  ______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH CG POWER SYSTEMS FOR THE PURCHASE OF ONE SUB-STATION CLASS ELECTRIC TRANSFORMER; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement  with CG POWER SYSTEMS whose address is One Pauwels Drive, Washington Missouri  63090 for the purchase of one (1) power transformer pursuant to Invitation to Bid 110121

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _14th____ day of __November_______ 2011.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

________________________________

City Clerk