AGENDA MEMORANDUM

 

 

Meeting Date:           September 22, 2008

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing an agreement with Waukesha Electric Systems, Inc. for transformer dehydration services at three electric power substations

 

 

Staff Recommendation:

Staff recommends approval of an agreement with Waukesha Electric Systems, Inc. for transformer dehydration services for $48,550.00.

 

Analysis:

The purpose of this project is to contract with a qualified firm to provide services to dehydrate three electric power substation transformers.

 

A leading cause of substation transformer failures is moisture.  Most of the water contained in a power transformer is held in the cellulose insulation.  Simply processing the oil will not remove the majority of moisture locked in the transformer core.  The contractor must insure that the moisture is removed from both the oil and the core restoring the transformer to a condition as near to completely dry as possible.  In addition the care and attention to detail required of the vendor in sealing the transformer before and after processing will insure that condition of dryness will not deteriorate.  Removing the moisture greatly improves the transformers efficiency, reliability and service life.

 

The Electric Department performs regular oil sample testing on all of its substation transformers.  The results of these tests indicate when a transformer would benefit from the oil dehydration process.  Through these oil tests, three substation transformers have been identified as needing to be dehydrated and are listed here.

 

·         East Substation Transformer #2

·         Airport Substation Transformer #2

·         Picciola Substation Transformer #2

 

The East Substation transformer has exhibited a frequent reoccurring problem of high moisture levels, occurring about every two to three years.  This indicates there is possibly a small leak allowing outside air or moisture to enter the unit.  The price shown to process this transformer is considerably higher than the other two units due to a larger scope of work.  The East Substation transformer will be torn down and have all seals replaced.  The contractor will then place a positive pressure on the unit and check for leaks.  They will then place a negative pressure, or vacuum on the unit and again check for leaks.  The oil removed from the unit will then be dehydrated.

 

On July 7, 2008 the Purchasing Division issued Invitation to Bid (ITB) 80371.  Announcement of the ITB was posted on DemandStar, a nationwide on-line bid notification service used by the City.  Specific contractors qualified to provide the service were also notified directly.  On July 30, 2008 one response was received from Waukesha Electric Systems, Inc.  Waukesha submitted a bid amount of $78,500.00.  As mentioned, the City negotiated a less extensive scope of work on the Airport and Picciola substation units to reduce the total cost of the project.

 

The cost to pressure test all three units exceeded the budgeted amount of $50,000 for the project.  This required the City to modify the scope of work on the Airport and Picciola transformers.  These units were recently swapped between the two substations.  These units do not exhibit the frequency and levels of moisture found in the East Substation unit.  Therefore, these units will only have the seals replaced and the oil processed/dehydrated.  The pressure and vacuum testing on these units is not necessary.

 

 

 

Transformer Location

Revised

Price Quote

East Substation Transformer #2

$31,500

Airport Substation Transformer #2

$8,500

Picciola Substation Transformer #2

$8,500

Total Cost

$48,550

 

 

Waukesha Electric Systems, Inc. was the only respondent to the solicitation.  The vendor has been deemed as responsive and responsible.  The City has recently contracted with this firm and they did an outstanding job on that project.

 

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

Funds have been budgeted for this project and are available in the operations & maintenance account listed.

 

Submission Date and Time:    9/17/2008 5:44 PM____

 

Department: __Electric Department______

Prepared by:  __Mike Thornton_________                     

Attachments:         Yes__X__   No ______

Advertised:   Yes_Not Required ______                     

Dates:   __July 7, 2008_- DemandStar__                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________JB______                                     

                              

Deputy C.M. ________EFS________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-1062-531.46-12__

 

Project No. __415920____________

 

WF No. ______________________

 

Budget  _X_ Project  ___ Line Item

 

Budget  _____$50,000.00_________

 

Available ____$50,000.00_________


 

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, INC. FOR TRANSFORMER DEHYDRATION PROCESSING AT THREE ELECTRIC SUBSTATIONS; 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 electric power transformer dehydration services at three substations pursuant to Invitation to Bid 80371.

 

             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 _22nd____ day of __September_______ 2008.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk