AGENDA MEMORANDUM

 

 

Meeting Date:           May 12, 2008

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing an agreement with Waukesha Electric Systems, Inc. to exchange two electric power substation transformers

 

 

Staff Recommendation:

Staff recommends approval of  an agreement with Waukesha Electric Systems, Inc. for $160,100.00.  The agreement also includes an owner’s contingency in the amount of $11,000.00.

 

Analysis:

The purpose of this project is to contract with a qualified firm to provide all necessary services and equipment to exchange two electric power substation transformers.

 

There are two substations involved in this project: Airport and Picciola.  The Airport substation experiences the highest peak loads of around 25 megawatts (MW).  Each substation has two transformers: a primary 30 MW and a backup 20 MW.   For the current peak load, the backup unit at the Airport substation is undersized and the primary unit at Picciola is oversized.  This project will move the 30 MW transformer from the Picciola substation to Airport and move the 20 MW transformer from the Airport substation to Picciola.  This move will place two 30 MW transformers at the Airport substation and two 20 MW transformers at the Picciola substation allowing each substation to have adequately sized primary and backup transformers.

 

A secondary reason for the exchange is the 30 MW transformer at the Airport substation has been exhibiting abnormal signs of ‘gassing’ with no identifiable cause.  These signs indicate the long-term reliability of the transformer as a primary transformer is questionable.  Exchanging the transformers will provide adequate backup at the Airport substation if this unit should fail or when it needs to be rebuilt.

 

On March 24, 2008 the Purchasing Division issued Invitation to Bid 80191 soliciting qualified and interested parties to attend a mandatory pre-bid on April 1, 2008.   Three firms were represented at the mandatory pre-bid meeting.  On April 21, 2008 the Purchasing Division received responses from two firms: Dillard Smith Construction Company and Waukesha Electric Systems, Inc.  The third firm in attendance at the pre-bid meeting submitted a ‘no bid response’.  The firm cited delays by their legal team in reviewing their submittal.

 

 

Vendor Name/Location

Base Bid

Additive Alternate

Waukesha Electric Systems, Inc

Goldsboro, NC

$160,100.00

$5,500 / day

-or-  $250.00 per hour

Dillard Smith Construction Co.

Palmetto, FL

$253,329.00

$93,865.00

 

The additive alternate is for the firm to filter the oil for contaminates, including moisture.  The oil from the main tanks will be removed in order to reduce the weight of the transformers during transport.  The City may elect to filter the oil based on oil sample test results at that time.  The cost of the additive alternate is included in the agreement as owners’ contingency in the amount of $11,000.00.

 

The Purchasing Division has deemed Waukesha Electric Systems, Inc. the lowest responsive and responsible bidder.

 

The original plan to resolve the sizing issue was to purchase a larger new transformer to replace the 30 MW at the Airport substation.  The cost of a new, adequately sized transformer was well above the budgeted amount of $400,000.  The bids received at that time for a new transformer ranged from $785,890 to $1.3 million.  The City of Leesburg Electric Department began looking at alternatives to purchasing a new transformer.  Exchanging the existing transformers was identified as the most cost effective alternative.

 

Options:

1.  Authorize execution of the agreement with Waukesha Electric Systems, Inc.; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

The contract price is $160,100.  Funds have been budgeted and are available for the upgrades to the Airport substation.

 

Submission Date and Time:    5/16/2008 11:26 AM____

 

Department: _Electric Department_______

Prepared by:  _Mike Thornton________                     

Attachments:         Yes__X_   No ______

Advertised:  Yes__Not Required _______                     

Dates:   March 23, 2008_______________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-1099-531.63-10__

 

Project No. __410012____________

 

WF No. _____WF 453731/1______

 

Budget  _____$1,330,045.00_______

 

Available ____$  988,820.08_______


 

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 WAUKESHA ELECTRIC SYSTEMS, INC.  TO PROVIDE CONSTRUCTION SERVICES TO SWAP LOCATIONS OF TWO SUBSTATION POWER TRANSFORMERS; 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 WAUKESHA ELECTRIC SYSTEMS, INC. whose address is 2701 U.S. Highway 117 South, Goldsboro, North Carolina 27530 for construction services related to the location swapping of two electric power substation transformers pursuant to Invitation to Bid number 80191.

 

             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 12th  day of May 2008.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk