CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year One to Contract 23-195, Electric Utility Transformer Recondition/Rebuild, to Power Electronics and Emerald Transformer PPB LLC for an amount not to exceed $500,000
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director of Electric Utility
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 23-195, Electric Utility Transformer Recondition/Rebuild, to Power Electronics and Emerald Transformer PPB LLC on September 19, 2023, for a one-year term from the date of award to August 31, 2024, with two, one-year options.
The purpose of this contract is to work with verified contractors to inspect, recondition or rebuild single phase, pole and pad mount transformers, and three phase pad mount transformers.
Since the Fall of 2021 when the Utility began refurbishing transformers, approximately 60 units have been sent out for refurbishment. In addition to reducing utility waste, the refurbishment program typically returns transformers to the Utility warehouse in under 12 months whereas procuring a new transformer would require a 36 month wait and significantly more cost.
DISCUSSION:
During the original term of the contract, both vendors provided the required services to the Electric Utility, providing refurbished working transformers.
Based upon the vendors' performance, Electric Utility staff would like to extend the contract for the first option year. Both vendors have agreed to maintain the rates and terms provided for under the contract.
The term of the first option year is September 1, 2024 to August 31, 2025, with one, one-year option remaining on the agreement.
FISCAL IMPACT:
CIP#: N/A
Transformer reconditioning and rebuilding services are expensed to the Equipment Maintenance account listed below. The Electric Utility included $300,000 in the 2024 budget for transformer repair services based on historical averages; however, through...
Click here for full text