HomeMy WebLinkAbout1999-10-12 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT :UTILITIF~S
DATE:OCTOBER 12, 1999 CMR:378:99
SUBJECT:APPROVAL OF CONTRACT WITH GE ENERGY
SERVICES FOR REPAIR OF THE HANSEN WAY 21
SUBSTATION TRANSFORMER AND REQUEST FOR A
BUDGET AMENDMENT ORDINANCE OF $170,000 TO
COVER THE REPAIR EXPENSES
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached contract with GE
Energy Services in the amount of $126,003 to repair and transport the failed
Hansen Way 21 Substation transformer.
Authorize the City Manager or her designee to negotiate and execute one or
more change orders to the contract with GE for related, additional but
unforeseen work which may develop during the project, the total value of which
shall not exceed $19,000.
Adopt the attached BAO in the amount of $170,000 to cover the cost of the
repair contract and related work by City Staff.
CMR:378:99 Page 1 of 4
DISCUSSION
Project Description
This project consists of contract and City staff work. The work to be performed under
the contract is for transportation and repair of the 10/14 MVA Hansen Way 21
Sttbstation transformer.
This transformer has been serving Stanford Research Park customers since 1974.
Earlier this year, following routine testing and inspection, it was discovered that the
transformer core was damaged. It was determined by staff that the transformer needed
a complete internal repair. The City does not have the required facility or expertise to
repair transformers of this size. The cost of a new transformer of this size would cost
approximately $700,000.
The transformer is to be transported by GE to its Colorado Service Center from the
Hansen Way Substation and then transported back to the Hansen Way Substation after
the completion of the repairs. The scope of services includes all crane services to
remove and reinstall the transformer unit; as well as provision of all engineering,
materials, tools and equipment, including supervision to repair the transformer unit.
City staff will disconnect and reconnect the transformer at the substation, inspect the
transformer before shipping, and test and re-energize the unit to bring the system back
to normal operation.
This work is expected to cost $126,003 plus a 15 percent ($19,000) contingency, for a
total of $145,003. City work is estimated to cost approximately $24,997. The total
cost of the entire project for the Hansen Way transformer is estimated to be $170,000.
This work is expected to cost $126,003 plus a 15% ($19,000) contingency for a total of
$145,003.
City staff will disconnect and reconnect the transformer at the substation, inspect the
transformer before shipping, test and re-energize the unit to bring the system back to
normal operation. This work is estimated to cost approximately $24,997.
The total cost of the entire repair project for the Hansen Way transformer is estimated
to be $170,000.
CMR:378:99 Page 2 of 4
Proposal Selection Process
Staff sent a request for proposals (RFP) to five firms specializing in large transformer
repair/rebuilding on August 5, 1999. The proposal period was 26 days. Two firms
submitted proposals. Proposals ranged from a high of $159,789 to a low of $126,003.
Contractors not responding indicated that they did not submit a proposal because they
were too busy.
Staff has reviewed the two proposals submitted (Attachment A) and recommends that
the proposal of $126,003 be accepted and that GE Energy Services be declared the
lowest responsible proposal. The full extent of the damage to the transformer cannot be
determined until the transformer is dismantled. Therefore, staff is recommending a
change order amount of $19,000, which equals 15 percent of the total contract amount,
for unforeseen work.
RESOURCE IMPACT
This work is expected to cost $126,003 plus a 15 percent ($19,000) contingency, for a
total of $145,003. City work is estimated to cost approximately $24,997. The total
cost of the entire repair project for the Hansen Way transformer is estimated to be
$170,000.
A Budget Amendment Ordinance (BAO) in the amount of $170,000 is requested to
fund the Hansen Way 21 transformer repair. Funds will be transferred from the
Electric Emergency Plant Reserve to the Substation Facility Improvements Capital
Improvement Program (CIP 8944).
This action has minimal impact on the Utilities staff, since the main portion of the work
will be performed by an outside contractor.
POLICY IMPLICATIONS
The award of this contract does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act
(CEQA).
CMR:378:99 Page 3 of 4
ATTACHMENTS
Attachment "A" :
Attachment "B" :
Attachment "C" :
PREPARED BY:
RFP Evaluation Summary
Contract
Budget Amendment Ordinance
Merajul Hoque, Power Engineer
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
FLEMING
Manager
CMR:378:99 Page 4 of 4
RFP Evaluation for One GE 10/14 MVA Substation
Transformer Repair (HW-21,)
City RFP # 115785A .... Closed On : August 31, 1999
No. Of Proposers Invited : 5 / Nos. Of proposals submitted : 2
SUNBELT GE
PROPOSALS ->>>>
WESTERN,
TVA AND
SOUTHWEST
ELECTRIC
ITE1$IS E VAL UA TED No RESPONSE
(3-Co.~a.ies).
COST-TR/dqSFORMER $ 159,789 $ 116,400 No Bids /
REPAIR + TRANSPORT Proposals
APPLICABLE TAX Lump Sum Price $ 9603
TOTAL $ 159,789 $ 126,003
No Interest No Interest. A Separate
Project Suggested for
Disposal of the Items. (Thru
GE Portland).
EQUIPMENT DISPOSAL
PROPOSAL (XFMRS HW-
3,4/EM-5/HV-21 & ONE
60KV OCB)WITH COST
OFFSET PER SPEC.
RFP LrNDERSTANDING GOOD VERY GOOD
PAST CPA EXPERIENCE None with CPA Yes.Did Maintenance
Contracts in Substations.
TRANSFORMER REPAIR Has Good Experience Has extensive experience &
EXPERIENCE/EXPERTISE (18 Yrs)Capable. (I00 yrs.)
DELIVERY/REPAIR TIME 18 Weeks 14-16 Weeks (No Overtime
Work).
TESTING PROPOSED ANSI (No Impulse,Corona &Per Spec. & ANSI
Heat-run Test.)57.90.!2.Wili Fill with New
Oil & Repaint.
PROJECT ~ANAGEMENT No Specific Mention Very Adequate & Experienced
& KEY STAFF PROPOSED ’Key Staff Proposed.
Recommends a Contract with GE being best responsive , quite capable and lower
in their cost proposal.
Evaluation By: M. Hoque ~
Approved By : T. Marsha~
Reviewed By: S. Zuccaro~~
September 21, 1999
.° ;.AGREEMENT
BY THIS AGREEMENT MADE AND EI~TERED INTO ON THE
BY AND BE13NEEN THE CITY OF PALO ALTO "CITY", AND Genera ]
Attachment - "B"
No.
DAY OF, " 19__ ~DATE TO BE ENTEREDElectric International Inc. tBY CITY PURCHASING
,8
(ADDRESS) , 4900 Kin0ston Street (C,.T~). Denver (mP)_O_Q_.SO2219_ (PHONE)-3~- 300
"CONTRACTOR" IN CONSIDERATION (~F THEIR MUTUAL COVENANTS, THE PAR~IES HERETO/~GREE AS FOLt-(~WS:
¯ CONTRACTOR SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFIED 1) GOODS AND MATERIALS, 2) SERVICES OR 3) A COMBINATION
THERE(~F AS SPECIFIED IN THE EXHIBITS NAMED BELOW AND ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE:
TITLE: (DESCRIPTION)
Tr~nsport and repair one 10/14 MVA (GE) Substation
(HW-21 Transformer, H~F~sen Way Substation)
Trans former
¯ EXHIBITS THE FOLLOWING ATTACHED EXHIBITS HEREBY ARE MADE PART OF THIS AGREEMENT:
Exhibit "A" - G.E. Quotation #99-1202-A dated 8/26/99
Exhibit "B" - CPA.RFP #115785A, Part lll.(closed on 8/31/99)
¯ TERM THE SERVICES AND/OR MATERIALS FURNISHED UNDER TIllS AGREEMENT SHALL COMMENCE ON
AND SHALL BE COMPLETED I~EFORE
¯ CON PENSATION FoR THE FULL PERFORMANCE OF THIS AGREEMENT:
I~ C~TY SHALL PAY CONTRACTOR:$116,400 (One hundred and
[] CONTRACTOR SHALL PAY CITY:
sixteen four hundred dollars only)
¯PAYMENT RECORD (DEPART~ENTUSE REVERSE S~DE)
¯CITY ACCOUNT NUMBER:
¯GENERAL TERMS AND CONDITIONS ARE INCLUDED ON BOTH SIDES OFTHIS AGREEMENT.
THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECUTION BY CITY, IN WITNESS.THEREOF, THE PARTIES HAVE EXECUTED THIS
AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRI’FrEN ABOVE. : ¯HOLD HARMLESS. CONTRACTOR agrees to indemniEj, defend and hold harmless CITY, its Council Meml~ers, officers, employees, and agents from any and all demands,
claims or liability of any nature, including wrongful death, caused by or arising out of CONTRACTOR’S, its officers’, directors’, employees’ or agents’ negligent acts, errors,
or omissions, or willful misconduct, or conduct for which the law imposes stdct liability on CONTRACTOR in the performance of or failure to perform this agreement by
CONTRACTOR.
ENTIRE AGREEMENT. This agreement and the terms and c~nditior~$ on the. r~v~rse hereof represer~t the entire agreement between the parties with respect to the purchase
and sale of the goods, equipment, materials or supplies or payment for services which may be the subject of this,,,~,greement.~ll prior agreer~,ents, representations,statements, negotiations and undertakings whether oral or written are superseded hereby. ’ - -
¯ PROJECT MANAGER,~ND" REPRESENTATIVE FOR CITY CONTRACTOR ’~---~-//~’~~
NAME
DEPT.
Merajul Hoque, Power Engineer
Utilities ~ngineerin9 - Elec.
P.O. BOX 10250
PALO ALTO CA 94303
Telephone ’.,650/,,566-4532
BY Kelvin Chu, Transformer Engineer
Denver Service Center
TITLE
OR I.R.S. NUMBER . .
¯INVOICING SEND ALL INVOICE& TO THE CITY, ATTN: PROJECT MANAGER
¯CITY OF PALO ALTO APPROVALS: (ROUTE FOR S~GNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW)
CITY DEPARTMENT r-] Funds Have Been IN~URANCE..REVlEW .- PURCHASING & CONTRACT ADMINISTRATION
Budgeted
1(2)" -- " " " ’" ’(I)"¯ >~-(3)
: -.’-. -"" ~,PPROVAL OVER $25,000 " . ....-- ": "1 ;-"-- ",-’- "-’~:-:~>~-:-~’~.-: =.:’ :APPROVAL OVER $65,000 ..:--’ .-.
[- CITY CLERK CITY A’FrORNEY
CPA 02782 RETAIN GREEN COPY= ............CONTRACTOR REV. 6/98
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1999-00 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $170,000 FOR THE
REPAIR OF THE HANSEN WAY 21 SUBSTATION TRANSFOR!VIER
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June 28,
1999 did adopt a budget for fiscal year 1999-00; and
WHEREAS, the Utility Department conducted routine testing and
inspection of the 10/14 MVA Hansen Way 21 substation transformer,
which has been serving part of Stanford Industrial Park customers
since 1974; and
WHEREAS, it was discovered that the transformer core was
damaged and the staff determined thai the transformer needed a
complete internal repair; and
WHEREAS, due to special expertise requirements, contract
services will be needed to repair one transformer at a cost of
$170,000, which will be funded from the Electric Emergency Plant
Replacement Reserve; and
WHEREAS, City Council authorization is needed to amend the
1999-00 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of One Hundred Seventy Thousand Dollars
($170,000) is hereby appropriated to non-salary expenses in the
Distribution System Functional Area in the Electric Fund, and the
Electric Emergency Plant Replacement Reserve is correspondingly
reduced.
SECTION 2. This transaction will reduce the Electric
Emergency Plant Replacement Reserve from $2,316,000 to $2,146,000.
SECTION 3. As specified in Section 2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 4. This project has been
categorically exempt under Section 15302
Environmental Quality Act.
determined to be
of the California
SECTION 5. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of
Services
Administrative
Director of Utilities
Attachment B
~
Budget Amendment Ordinances Impacting Utilities Emergency Plant Replacement Reserves Approved To Date in 1999-00
Electric Fund
Estimated Electric Emergency Plant Replacement Reserve
Balance
Distribution System-Operations/Maintenance
Total BAOs
Emergency Plant Replacement Reserve Balance After BA O’s
Gas Fund
Estimated Gas Emergency Plant Replacement Reserve
Balance
Total BAOs
Emergency Plant Replacement Reserve Balance After BAO’s
Waste Water Collection Fund
Estimated Waste Water Collection Emergency Plant
Replacement Reserve Balance
Total BAOs
Emergency Plant Replacement Reserve Balance After BA O’s
Waste Water Treatment Fund
Estimated Waste Water Treatment Emergency Plant
Replacement Reserve Balance
Total BAOs
Emergency Plant Replacement Reserve Balance After BAO’s
$2.316,000
($170,000)
($170,000)$0 ($170,000)$0
$2,146,000
$748,000
$o $o $o $o
$748,000
$420,000
$o $o $o $o
$42~000
$1,367,000
$0 $0 $0 $0
$1,367,000
Water Fund
Estimated Water Emergency Plant Replacement Reserve
Balance
Total BAOs
Emergency Plant Replacement Reserve Balance After BAO’s
$879,000
$o $o $o $o
$879,000