CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #2 to Contract 23-195, Electric Utility Transformer Recondition/Rebuild, to Emerald Transformer PPB LLC for an amount not to exceed $90,000
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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 through August 31, 2024, with two, one-year options. The first option year was approved last year with an end date of August 31, 2025.
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 Electric Utility ("Utility") began the program, approximately 60 units have been sent out for refurbishment. In addition to reducing Utility waste, the refurbishment program typically returns transformers in under 12 months whereas procuring a new transformer would require a 36 month wait and at a significantly higher cost.
DISCUSSION:
Staff recommends the approval of the second and final option year.
The original award was issued to two companies, Power Electronics and Emerald Transformers. Power Electronics completed all work assigned to them during the most recent year. The second option year will only be extended to Emerald Transformer, for the completion of the repairs on transformer units they have already accepted from the Utility, for an amount not to exceed $90,000.
Supply chain issues for transformers have eased somewhat, and staff does not foresee needing to use repair services moving forward as new units are available at a lower cost than repairs on existing units.
Based upon the vendors' performance, the Electric Utility staff recommends extending the ...
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