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HomeMy WebLinkAbout11 Back Up TransformerAgenda Item #11 TRUCKEE DONNER Public Utility District } ------ --- -- --- ACTION To: From: Date: Subject: Board of Directors Sanna Schlosser February 17,2016 Consideration of Purchasing a Backup Transformer for Donner Lake Substation 1.WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for procurement over $15,000. 2.HISTORY The District rebuilt the Donner Lake Substation in 2015.As part of the rebuild,a new three-phase transformer was purchased to replace three single-phase transformers. This was done to increase the capacity and improve performance of the substation. During the substation rebuild,provisions were made to accommodate a second transformer as a backup. 3.NEW INFORMATION The original transformer bid was awarded to WEG Electric Corporation (WEG)in December 2014.The cost of this unit was $281,400 with an additional $10,000 charge for delivery. The District is pleased with the performance and capability of the WEG three-phase transformer.As such,the District asked WEG if they would provide a second unit at the previous contract price.They have agreed to honor their previous pricing. Due to the specialized nature of this equipment,and long lead times (average about six months),it is in the District's interest to purchase a second identical unit.The District's other substations have a spare transformer,which prevents unacceptably long outages due to an equipment failure. 4.FISCAL IMPACT Sufficient funds exist within the 2016 Electric General Fund. 5.RECOMMENDATION Approve the purchase of a backup three-phase transformer from WEG Electric Corporation in the amount of $281.400,plus a 10 percent change order allowance,for a total amount not to exceed $309,540,plus tax. Stephen Hollabaugh Assistant General Manager Michael D.Holley General Manager