CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-074, Field Services for Tollway Substation Transformers, to Transfluid Services, Inc. for an amount not to exceed $147,818
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
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BACKGROUND:
The Electric Utility (Utility) is responsible for maintaining electric service to approximately 63,000 residential and commercial customers. A key component of the 16 electrical substations owned by the Utility, and used to distribute electricity, are transformers that step the 138kV transmission voltage down to lower voltages. At its Tollway Substation, the Utility owns a three-winding transformer referred to as 30XA. This transformer was built in 1971 and steps down voltage from 138kV to 34.5kV and 12.47kV, respectively.
In September 2024, the transformer tripped offline. The Utility attempted to re-energize the transformer but was not successful. Subsequent laboratory analysis of the oil showed an increase in combustible gases, including acetylene, suggesting internal arcing within the tank of the transformer. City crews performed additional electrical testing and discovered evidence of a fatal secondary winding to ground failure on one of the 12kV windings. The Utility hired a consultant to verify the test results and enter the transformer to perform a visual inspection. The consultant confirmed catastrophic physical damage within the transformer.
Afterward, City staff evaluated options and developed multiple bid packages to obtain the best combination of pricing and lead times for the replacement/refurbishment of 30XA. Ultimately staff recommended, and the Council concurred with, awarding Bid 25-029 in June of 2025 to procure a replacement for the Utility’s system spare transformer.
Due to redundancy in the design of the system, the loss of this one transformer has not created any extended outages; however, the Utility is now in a backup contingency configuration. This means that a critical element is out of service, and stress is being added to the backup/alternate equipment to maintain service to all customers. Under peak loading conditions, or if another critical component goes offline, it is not certain that the Utility could maintain service to all the City’s customers.
In March 2025, the Utility issued Bid 25-074, Field Services for Tollway Substation Transformers, to return the system to normal configuration via relocating two existing transformers to fill the voids.
To quickly replace the failed transformer functionality at the Tollway Substation, a sister unit will be moved from Westside Substation to Tollway Substation. This was Option #2 on Bid 25-074. To fill the void at Westside Substation, a spare transformer at Route 59 Substation will be moved to Westside to restore the system to normal. This was Option #3 on bid 25-074.
Bid 25-074 was awarded on July 15, 2025, by the City Council. Option #2 was awarded to Reinhausen and Option #3 was awarded to Trans Fluid Service.
On August 21, 2025, Reinhausen sent an email to Procurement stating that they could not accept the purchase order. Purchasing communicated with the three vendors, clarifying a modified scope for Option #2 in light of the Reinhausen declaration.
DISCUSSION:
Revised bid worksheets for a modified scope for Option #2 were received from the following vendors:
|
Vendor Name |
Proposed Cost |
|
Trans Fluid Services |
$147,818.00 |
|
Reinhausen |
$401,537.00 |
|
Wesco |
$707,000.00 |
Trans Fluid Services submitted the lowest bid for Option #2. Although the City has not previously worked with this vendor, they provided five references with their bid. City staff contacted all references and received satisfactory feedback.
Trans Fluid Services will now move both transformers related to Bid 25-074.
Overall, this project will move an underutilized transformer from the Utility’s Westside Substation to Tollway Substation to replace the failed unit at Tollway Substation. The Westside Substation transformer will be replaced with the Utility’s system spare transformer, and the spare transformer will be replaced with the one that was procured in June of 2025 and will take approximately 36 months to build.
The completion date for this project is February 26, 2028.
FISCAL IMPACT:
CIP #: EU086
Field Services for the Tollway Substation transformers are expensed to the Infrastructure accounts listed below. This work is done in coordination with EU086, the Tollway Substation upgrade. The 2025 budget included $8,250,000 for expenses related to the Tollway Substation upgrades. The requested award is within the amount budgeted for this expense in 2025, and staff will ensure sufficient funding in future budgets to support the out years associated with this award.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
$27,261,400 |