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HomeMy WebLinkAbout7 Power Point Contract Failed Transformer Consent Item # October 7, 2015 Truckee Substationthe Failed Transformer at Contract for the Replacement of Consideration of Modifying a 7 Consideration of a Contract for 2 cost and shorter lead timethe lower due to The Board approved a contract to refurbish the failed unit –Replacement: $107,696 with lead time of 22 to 24 weeks–Refurbishment: $79,458 with lead time of 16 to 18 weeks–options to refurbish or replace the failed transformerAt the July 15, 2015 Board meeting the Board considered •Tests revealed that one substation transformer failed –line-substation offTree fell into the lines near Truckee Substation, tripping entire –Friday, February 6, 2015A severe windstorm hit the greater Truckee Tahoe area on •Background / History Replacement of a Failed Transformer Consideration of a Contract for 3 secured for shipmentThe transformer was reloaded onto the vehicle and properly –spillage of oilFortunately there were no injuries to personnel and no –transformer fell onto the groundThe weight of the transformer broke the chains and the –the transformerimmediately outside the substation without first fully securing The driver moved the transport vehicle to a location –facilitycrane onto a transport vehicle for shipment to the Uptegraff On July 31, 2015, the failed transformer was loaded by •New Information Replacement of a Failed Transformer New Information ($11,653to Purchase a New TransformerCost ($26,235)ProceedsInsurance$37,888Difference$79,458Refurbishment Cost$107,696New Unit CostCostItem Replacement of a Failed TransformerConsider ation of a Contract for 4 unitfailed the lieu of refurbishing in new transformer contacted the District with a proposal to build a Uptegraff•and a settlement payment of $26,235 was receivedcarrier the transport company’s insurance A claim was filed with –transformerdetermine the extent of the damage to the facility, tests were performed to Uptegraffthe arrival at Upon •)cont New Information (Replacement of a Failed TransformerConsideration of a Contract for 5 the Districtis clearly the best option for Purchasing a new transformer –warrantytransformer an additional amount of only $3,707 the District can For •sustainedbest considering internal and external damage was Refurbishing a twice damaged transformer is problematic at •3,707purchase a new unit drops from $11,653 to $allowance in the amount of $7,946, the cost difference to the Board previously approved a change order Because •)cont Fiscal Impact Replacement of a Failed TransformerConsideration of a Contract for 6 lieu of refurbishmentfor the additional amount to purchase a new transformer in Sufficient funds exist within the FY15 Electric General Fund • Recommendation Replacement of a Failed TransformerConsideration of a Contract for 7 plus taxthe amount of $5,385 for an amount not to exceed $113,081 change order allowance in a 5% amount of $107,696, plus for the purchase of a new transformer in the Uptegraff. R.Erefurbishment contract and enter into a new contract with Authorize the General Manager to void the previous •transformer$5,385 for the purchase of a new amount and to provide a 5% change order flexibility of from $7,946 to $17,038 necessary to cover the additional the previously approved change order allowance Increase •