HomeMy WebLinkAbout4 TD Substation Failed Transformer Agenda Item # 4
Ct
y DONNER
Public Utility Distri!
Memorandum
To: Board of Directors
From: Joe Horvath, District Electrical Engineer
Date: July 25, 2005
Date of Board Meeting: July 26, 2005
Subject: Declaration of an Emergency Situation at Tahoe Donner Substation and
Replacement of the Failed Transformer
1. WHY THIS MATTER IS BEFORE THE BOARD
Only the Board can declare an emergency situation and dispense with the competitive bidding
process necessary to rebuild or replace the failed substation transformer.
2. HISTORY
The details concerning the failure of one of the 5 MVA transformers at Tahoe Donner Substation
were originally presented to the Board on July 20, 2005 as Agenda Item No. 4 and in Jim
Wilson's staff report. The Item was pulled from the Agenda because details concerning costs
and lead times to rebuild or replace the failed transformer were not available at that time.
3. NEW INFORMATION
The District has received firm quotes for both the refurbishment and replacement options for the
failed transformer (copies attached). The cost to rebuild the failed transformer is $112,000 with
a turnaround time of 14 to 16 weeks. The cost to purchase a brand new transformer is $110,798
with a delivery time of 13 to 15 weeks. The new transformer would be identical to the District's
most recently purchased substation transformers for Truckee Substation, and the spare
transformer already in place at Tahoe Donner Substation. The failed transformer is 23 years old
and although refurbishment will bring it to like-new condition, it will remain a 23 year old design.
Since the costs and lead times are approximately equal between refurbishment and
replacement, the advantages of having a new transformer make this the better of the two
options available.
4. RECOMMENDATION
I recommend the Board approve the declaration of an emergency situation at Tahoe Donner
Substation and dispense with the competitive bidding process necessary to replace the failed
substation transformer per the attached Resolution.
O.. s
Public Utility District
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Resolution No. 2005 - xx
FINDING AN EMERGENCY SITUATION AT TAHOE DONNER SUBSTATION AND
DIRECTING THAT COMPETITIVE BIDDING BE DISPENSED WITH IN
CONNECTION WITH THE DISTRICT'S REPLACEMENT OF THE FAILED 5 MVA
TRANSFORMER AND THE PURCHASE OF A NEW 5 MVA TRANSFORMER UNIT
WHEREAS, one of the three transformers at Tahoe Donner Substation has failed, making that unit
inoperative until it is fixed; and
WHEREAS, the spare transformer unit is now in service at Tahoe Donner Substation, leaving the
substation without a spare unit for other contingencies; and
WHEREAS, it is the District's operating practice to have a spare transformer unit at each
substation; and
WHEREAS, although the District can jury-rig a spare transformer together for use at Tahoe Donner
Substation if another transformer failed by paralleling the outputs of existing smaller transformer
units stored elsewhere, it is only temporary fix and requires the use of a crane and transport trucks
at two locations; and
WHEREAS, the District's temporary solution to an additional contingency at Tahoe Donner
Substation significantly increases the likelihood of failures and problems due to the very fact of
using old equipment connected in a temporary arrangement; and
WHEREAS, this temporary solution to an additional contingency will not enable the system to
handle the additional load required during the upcoming winter peak demand period; and
WHEREAS, it will take approximately 14 to 16 weeks to have the failed transformer rebuilt and
refurbished at a cost of$112,000; and
WHEREAS, it will take approximately 13 to 15 weeks to purchase and take delivery of a new
transformer at a cost of $110,798; and
WHEREAS, it will take an additional 3 to 4 weeks to the times quoted above to complete the
competitive bid process whether the transformer is rebuilt or replaced; and
WHEREAS, the combination of the time to complete the competitive bid process and the rebuilding
or replacement of this transformer puts the delivery of the unit squarely within the District's peak
demand period of late December and early January; and
WHEREAS, the cost to rebuild the failed unit or to purchase a brand new unit is almost equal; and
WHEREAS, the lead time to purchase a new transformer is shorter than the time required for
refurbishment; and
WHEREAS, the failed transformer is 23 years old and although refurbishment will bring it to like-
new condition, it will remain a 23 year old design; and
WHEREAS, the purchase of a brand new transformer is therefore the better of the two options
available; and
WHEREAS, Public Contract Code Section 22050 provides that in the case of an emergency, a
public agency, pursuant to a four-fifths vote of the governing body may repair or replace a public
facility, take any directly related and immediate action required by that emergency and procure the
necessary equipment, services and supplies for those purposes without giving notice for bids to let
contracts; and
WHEREAS, the District's need to repair or replace the transformer immediately has created a great
emergency which, pursuant to Public Contract Code 22050, is justification for the District to
dispense with the competitive bidding procedures;
NOW THEREFORE BE IT RESOLVED that the Board of Directors of the District adopt the above
recitals as its findings; and
BE IT FURTHER RESOLVED by the Board of Directors that for the reasons set forth above, the
District finds that the failure of the 5 MVA transformer at Tahoe Donner Substation has created an
emergency and that the emergency will not permit a delay resulting from a competitive solicitation
for bids and that a replacement of the failed transformer is necessary to respond to the emergency.
BE IT FURTHER RESOLVED that the District shall therefore dispense with competitive bidding for
the purchase of a new 5 MVA transformer for Tahoe Donner Substation from the R.E. Uptegraff
Company.
BE IT FURTHER RESOLVED that the Board of Directors shall review the emergency action at its
next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the
action is terminated to determine whether there is a need to continue the action.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the 261" day of July, 2005 by the following roil call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By:
J. Ron Hemig, President, Board of Directors
ATTEST:
Peter L. Hoizmeister, Clerk of the Board
v"10.4VUO U0:11 me vz4767474d K E UFTEGRAFF MFG CO 10001
R.E. UPTEGRAFF MANUFACTURING COMPANY
120 Uptegraff Drive Phone: (724) 887-7700
P.O. Box 182 Fax: (724) 887-4748
Scottdale,PA 15683 E-mail: sales@uptegraff.com
Page 1 of 4
7/26/05
Fax to: 530/587-1189 Phone: 530/582-3969
TRUCKEE DONNER PUD
Attn: Mr.Joe Horvath
Subject: Transformer RFQ
In response to your verbal request, we are pleased to offer the following quotation:
1-5000/5600/6250/7000 WA, single phase, 60 hertz, 55/65° C temperature rise, mineral oil filled(Type 11),
Class ONAN/ONAF, sealed tank construction with welded-on main cover suitable for outdoor duty at 6300 feet
above sea level in an unclassified area; Uptegraff transformer type P. High voltage rated 60000 (350 BIL),
equipped with three 2-1/2%full capacity above and one 2-1/2% full capacity below nominal primary regulating
taps; low voltage rated 7200/12470Y(110 kV BIL). Impedance to be 8.0%= IEEE tolerances. Copper
windings. High voltage and low voltage terminals to be cover, exposed. Transformer to be equipped with
standard ANSI/IEEE/NEMA accessories; Rill vacuum tank construction; standard alkyd enamel paint finish(3
mils DFT)—color to be ANSI 70; core ground disconnect terminated externally; 3-54 kV high voltage station
class lightning arresters; alarm contacts provided on top liquid thermometer, winding hot spot thermometer,
liquid level gauge,pressure relief device, and sudden pressure relay; alarm contact enclosure;to also include
pressure vacuum gauge; pressure vacuum bleeder device; Knight-Airt equipment (nitrogen gas control
system); HI equipped with one-100:5 multi ratio, C400 current transformer per phase; XI equipped with one-
600:5 multi ratio, C400 current transformer per phase;unit to be duplicate to Uptegraff Spec. No. 9717,
provided in 1998.
NetEach Price ............................................................................................... S 110,798.00
The price quoted is firm through promised shipment based on an order being received within 60 days maximum
from the date of this quotation.
Current shipping leadtime is 13 to 15 weeks (subject to factory loading at time of order entry or release for
manufacture), following receipt of an order OR approval of submitted data should it be required. Drawing
leadtime is 5 to 7 weeks ARO.
u7/25/2u05 08:17 FAX 7248874748 R E UPTEGRAFF MFG CO 10002
TRUCKEE DONNER PUD
7t26l05
Page 2
Our terms are net 30 days following date of shipment with unit quoted FOB our plant at Scottdale, PA, with
freight allowed and prepaid to first destination(Truckee, CA) ----to be in accord with Uptegraff"Terms and
Conditions of Sale" dated 03-01-05.
Should you require additional information,please do not hesitate to contact me.
sjb Kevin Heide
Sales Manager
Email copy to: M-K Associates
u1izSizUU5 U8:17 FAX 7248874748 R E UPTEGRAFF RFG CO tit003
03/01/05
R. E. UPTEGRAFF MANUFACTURING COMPANY
TERMS AND CONDITIONS OF SALE
GENERAL By acceptance of this quotation.Buyer agrees to pay R.E.Uptegraff Manufacturing Company("Scuall)the total
sailing price specified In the quotation and to comply with the terms and conditions of salt speelflw herein.
PAYMENT TERMS Payment terms are not cash 30 days from date of shipment,unless otherwise agreed to by Buyer and Seller.
If shipment is delayed at the request of the Buyer,payment Is due 30 days from the date that the Seiler would have
otherwise shipped the order,as determined at the sole discretion of the Seiler.
If payment is not received by Seder within 30 days of the date of shipment,Buyer agrees to pay a service charge of
15%per month or fraction thereof on any unpaid balance.
PRICE ADJUSTMENTS The total slang price is valid for 60 days from the date of the gdotation.
If the date of shipment sad Invoicing exceeds 90 days from the date of tire Buyer's purchase order,material cast
Inflationary adjustments may be required. In lien of material cost inflationary adjustments,progress payments
locking in material costs at the time of the purchase order would be acceptable to the Seller.
TAXES Quoted prices do not include any present or future federal,state or municipal sales,use,excise and similar taxes,
unions otherwise shown on the proposal or acknawlcdgemenL Buyer shall pay said tarn unless Seller Is supplied
with a legal exemption certificase
SHIPPING DATE The shipping date of the order as specified in the quotation is approximate and will be computed from date of
receipt by Seller of complete and approved specifications from Buyer.
TRANSPORT The Seller shall determine the shipping point,method and mare of shipment. All units are quoted FOB SwtWaie,
PA;and all freight charges am the responsibility of the Buyer unless quoted otherwise by the Seller and accepted by
the Buyer.
DELAY OR DEFAULT Ace seine an subject to(a)such delay in or failure of performances by the sailer as may be due to causes which
substantially interface with or restrict the supply or availability of any required raw material or labor,(b)the Seller
being able to obtain and to devote the fulal(ment thereof the necessary labor,materials,and plant faeBlBes,(e)the
effect of governmental regulations and restrictions from time to time in force,(d)mum beyond the reasonable
control of the Seiler,web as Ales of Cod,Acts of the Buyer,Acts of Civil or Military Authority,Priorities,Fires,
Strikes at any Place or Company,Floods,EpidemiM Quarantine RcstrietionR War,Riot,Delays In Transportation
or Car Shortages.
INSPECTION &ACCEPTANCE Buyer may inspod during manufacture and may witness performance tests. Buyer must reject test and
performance data within five(5)days of submission by Seiler,or Purchaser is conclusively presumed to have
accepted said data. Test data shall be acceptable if it meats the values given In the transforms'performance
specifications subject to the stipulated testing conditions sad tolerances. PERFORMANCE TESTED ABILITY TO
WITHSTAND OVERCURRENTS,OVERVOLTAGES,AND ANY OTHER REQUIREMENTS,SAID ABMTTY
HAVING BEEN DEMONSTRATED AND ACCEPTED BY BUYER,SHALL.CONSTITUTE A DEMONSTRM
TtON OF FITNESS FOR THAT PARTICULAR PURPOSE AND NO WARRANTY,EXPRESS OR IMPLIED,
WILL APPLY TO SAID PERFORMANCE THEREAFTER
WARRANTY Seller warrants that the goods mid hereunder of its manufacture will be of the kind and quality described In the
contract sad will be free of defects in design,workmanship,and=cartel at the time of shipment Thies warranty
shag apply only to defects brought to the attention of Seiler within one year from shipment or one year from
Installation,whichever is long",provided that in no event shag this warranty be applicable for longer than 19
months from date of shipment Seller shad,as its sole liability hereunder for breach,correct by repair or
replacement,any such defect appealing under proper and normal use. Casts toward removal of the trantfarmer(s)
from the job site,loading on the rrwck,incoming and owgaing transportation between the job site and repoirfociUgt
antoeding after recelp4 and reinnotta#on shall be directly borne by the Buyer. This warranty shall not apply if the
transformer is operated under conditions of improper installation and misuse,such as,but not Heated to,improper
over eltage protection,overmumort protection or Improper grounding. Failure of a winding(coil)is not,in itsdl,
evidence of a defect as to design,workmanship,or materials. Seller will not warrant transforms':that are not
properly Installed in accordance with but not limited to,Seder's Installation and Maintenance Instructions.
Page I of 2
U1i43izuu0 U5:16 YAX 7L48474744 R E UPTEGRAFF BFG CO 10004
TERMS AND CONDITIONS OF SALE(contd.) 03-01-05
NO EXPRESS WARRANTY AND NO IMPLIED WARRANTY WHETHER OF MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR USE.OR OTHERWISE(EXCEPT AS TO TITLEy OTHER THAN THOSE
EXPRESSLY SET FORTH ABOVE,WHICH ARE MADE EXPRESSLY IN LIEU OF ALL OTHER
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MODIFICATIONS OF THE FOREGOING CONDITIONS SHALL BE VALID UNLESS
MADE IN WRITING AND SIGNED BY AN EXECUTIVE OFFICER OF SELLER'S CORPORATION.
Additional warranties may be extended by Seller upon request or,and at extra cost,to Buyer.
SELLER DOES NOT WARRANT THE PERFORMANCE OF TRANSFORMERS OR COMPONENT PARTS IF
BUYER SPECIFIES THE MAKE,THE DESIGN OR THE CONSTRUCTION THEREOF.
LIMITATION LIABILITY Seller's liability for any claim of any kind hereunder shall not exceed the purchase price of the goods. Seiler shall
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revenue,lass of use,cost of capital,cast of substitute goods,downtime costs or claims of customers of Buyer for such
damages.
TERMINATION An order may be teraduated by Buyer only an written notitt and upon payment of reasonable cancellation charges
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notice of termin sdon plus 15%of the net price As compensation for disruptions in scheduling and other indirect
casts.
PATENTS Seller will,at its sets cost,defend all suits instituted against Buyer and pay any damages awarded theme,Wofar
as the suits involve an infringement of any United States patents,provided that Seller reccives prompt notice of the
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instructions in furnishing goods to the Buyer.
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obtained in writing from Seiler.
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adjustments In price,delivery,warranty,and the like occasioned by such change. Seller shall make changes only
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GENERAL In the event that them are any inconsistencies among the inquiry,the quotation,the purchase order,the
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not Invited to the Export Administration Act and regulations,the Arnie Export Control Act and regulations,the
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TAXES AND IMPORT DUTIES Buyer is responsible for any associated taxes,tariffs,and any other imports that may be applied to this shipment
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