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Home My WebLink About6/7/2000 - STAFF REPORTS (14) DATE: June 7, 2000 TO: City Council FROM: Director of Facilities and Procurement Manager PURCHASE OF TRANSFORMER FLUID FOR THE MUNICIPAL AND SUNRISE COGEN FACILITIES RECOMMENDATION: That City Council approve an Emergency Change Order(previously authorized by the City Manager)in the amount of$7,160 to Power Engineering Services for the purchase and installation of transformer fluid at the City's cogeneration plants. BACKGROUND: Electrical equipment at the City's cogeneration facilities requires periodic inspection, testing and repairs to comply with the certification requirements contractually imposed upon the City of Palm Springs by Southern California Edison (SCE)to allow for integration into SCE's power grid. City Council approved Minute Order 6552 on January 5, 2000, which authorized staff to issue a Purchase Order to Power Engineering Services (PES)to perform inspection and testing operations as required by SCE at the City's cogeneration facilities. Several minor repairs were identified by PES's inspection and have already been corrected by City staff. During the testing process, it was pointed out that the transformer fluid did not meet SCE standards due to the presence of moisture found in the fluid itself. PES conducted an analysis of the fluid through an Independent firm, which confirmed the presence of water and moisture in the transformer fluid.As the fluid had not been required to be changed in the past 15 years, its replacement was not anticipated at the time the original Purchase Order was issued to PES. This same fluid had passed inspections three previous times but failed in the most recent PES inspection. Staff solicited price quotations from three known qualified companies to perform the transformer fluid replacement operation after being notified of the condition. The price quotes for this work were as follows: PES - $7,160; DeYoung Power Systems, Inc. -$8,939; and High Voltage Technical Services (HUTS). HVTS did not submit a bid and,therefore, is being considered as non-responsive to the City's request. In addition to identifying that potential damage might be caused to the transformers by operating them with high internal moisture levels in the fluid, PES was also found to be the low bidder for the required work,as it was already operating on-site at the City's plants. This was an obvious inducement for the City Manager to approve the emergency work at the time of the request by staff, in addition to being the most cost-effective approach to the problem. PURCHASE OF TRANSFORMER FLUID DATE: June 7, 2000 PAGE: Two Funds are available for this procedure in Account Number 520-5641-48700,Cogan Special Parts and Supplies. � � . 1 Sqdff1MIKESELC, Director HAROLD E. GOOD, CPPO apartment of Facilities Procurement Manager APPROVED: Interim City Manager ATTACHMENT. 1. Minute Order MINUTE ORDER APPROVING AN EMERGENCYCHANGE ORDER IN THEAMOUNTOF $7,160 TO POWER ENGINEERING SERVICES FOR THE PURCHASE AND INSTALLATION OF TRANSFORMER FLUID AT THE CITY'S COGENERATION PLANTS. I HEREBY CERTIFY that this Minute Order, approving an Emergency Change Order in the amount of $7,160 to Power Engineering Services for the purchase and installation of transformer fluid at the City's cogeneration plants, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the r day of June, 2000. BY: PATRICIA A. SANDERS City Clerk ((i7000 p-�- CITY OF PALM SPRINGS PURCHASE ORDER CHANGE NOTICE To: Power Engineering Services Date: June 7, 2000 2703 Saturn Street Project No. N/A Brea, CA 92821 Project Name: Transformer oil change for City's Cogeneration Facilities Change Order No. 1 Atha: Douglas Effenberger, P.E. Contract Purchase No. 909269 Account Number(s): 520-5641-48700 Agr.# N/A M.O. # 6552 A. CHANGES IN WORK: Item Description 1.1 PES will purchase and have delivered to the City of Palm Springs Municipal and Sunrise Cogen plants a total of fifteen 55-gallon barrels of insulating fluid (Mineral Oil) and eight empty barrels for waste oil. 1.2 PES will provide labor to drain and fill transformers with new mineral oil insulating fluid. This work to be performed during a scheduled outage between lam and Spm. 1.3 PES will perform a dielectric test on the transformer prior to re-energizing. PES will pressurize the Transformer with nitrogen prior to energizing. B. CHANGES IN CONTRACT COST: Item Description A. The cost of the items, 1.1, 1.2, mid 1.3 will be $7,160.00, total labor and materials. C. REASON FOR CHANGE: On January 5, 2000 Council approved Minute Order # 6552 approving purchase from Power Engineering Services Inc., of testing, repair and certification services for protective relays, circuit breakers, transformers and meters, at the City's cogeneration facilities in the amount of$40,000. During these tests it was learned that the plant's transformer insulating fluid did not meet manufacturer's specifications and must be replaced. This added cost was not anticipated in the original request from Council. NOTE: No additional markup will be added to any items in this Contract Change Order. All cost per each item are final. D. SOURCE OF FUNDS: Funds are available in the Facilities Maintenance's Cogen Special Parts and Supplies Account, Account No. 520-5641-48700. Summary of Costs Contract Time Original Contract Amount: $ 40,000 Original Completion Date: N/A This Change Order: $ 7,160 Days Added for this C.C.O.: N/A Previous Change Order(s): $ -0- Previous Days Added: N/A Revised Contract Amount: $ 47,160 Revised Completion Date: N/A I have received a copy of this Change Order City Approval: above AGREED PRICES are acceptable to the contractor. Submitted by Date By: Approved by Date Title: Director, Dept. of Facilities Approved by Date Date: City Manager Distribution: Original Conformed Copies Confirmed-File Copy Facilities (1) Facilities Maintenance File (1) Finance (1) Purchasing Agent (1) Contractor (1) City Clerk (1) VvN6ERI April 28,2000 4� C PES No.2613-00 s� City of Palm Springs ' 3 P E n Page I of I w Ottl`��Q City of Palm Springs Mr.Steve Vinci PO Box 2743 3200 East Tahquitz Canyon Palm Springs, CA 92262 Subject: Electrical Testing Services Proposal Oil Replacement for Sunrize Plaza and Municipal Transformers Dear Mr.Vinci, Power Engineering Services,Inc.,(PES)is pleased to provide you with our proposal to perform electrical testing services as outlined in the attached Scope of Work. The estimated cost to perform the services outlined in the Scope of Work is$7,160 for mineral oil or $14,200 for R-TEMP fluid. PES shall provide all material, test equipment and qualified personnel. This proposal is valid for 60 days. To schedule,please contact our office. All testing is to be done on de-energized equipment locked out and tagged out in accordance with California Code of Regulations - Electrical Safety Orders Section 2320 requirements, unless the equipment must be energized for the test. All power and lighting used for testing to be provided by others at each location where testing is required. A single phase source rated 120V, 20A is required phase service rated 208Y/120V,40A. Owner's representative is to be responsible for all circuit switching. PES Terms and Conditions apply as listed in Enclosure 3, attached. PES is an accredited testing laboratory by the American Association for Laboratory Accreditation to ISO/IEC Guide 25 and meets NIST and NVLAP requirements of Code of Federal Regulations(CFR) 15, Part 7,National Voluntary Laboratory Accreditation Program. If you have any questions concerning this proposal,please do not hesitate to call our office. Thank you for considering our company to be of continued service to you. Cordially, Doug Effenb Eic. esPowerEnginee Enclosures 1: Scope of Work 2: Terms and Conditions 3: Professional Services Rate Schedule 2703 Saturn Street,Brea, CA 92821 Telephone(714) 524-9100 Facsimile(714)528-8782 Internet PESPOWER@AOL.com E ..