HomeMy WebLinkAboutAgenda Report - February 20, 2008 E-08r
AGENDA ITEM
(0 CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Rejecting the Low Bid and Awarding the Contract for the
Acceptance Testing and Commissioning cfthe Killelea Substation
Rehabilitation Project to PowerTesting 8 Energization, Inc. of Vancouver,
Washington, and Authorizing the City Managerto Approve Change Orders up
to $30,000 ($148,592) (EUD)
MEETING DATE: Febnawy 20, 2008
PREPARED BY: Electric Utility Director
RECOMMENDEDACTION: Adopt a resolution rejecting the low bid, awarding the contract to the
next lowest responsible bidderfor the acceptance testing and
commissioning of the Killelea Substation Rehabilitation Projectto
Power Testing & Energizatiin, Inc. of Vancouver, Washington, and authorizing the City Manager to
approve change orders up to $30,000.
BACKGROUND INFORMATION: The rehabilitation of the Killelea Substation is currently ongoing.
The project includes the modification of the existing 60kV system,
installation of new 12kV switchgear, construction of new control
building, installation of updated communications and security systems, and expansion cf the substation
facility itself. Rosendin Electric, Inc. (Rosendin) is the general contractorfor this project. Siemens Power
Transmission & Distribution (Siemens) is the supplierfor the 12kV switchgear and the remote terminal
communications unit (RTU).
According to Rosendin's latest project schedule, the final Acceptance Testing and Commissioning
activities for the rehabilitated substation systems/equipment will begin in mid-March 2008. This task is the
City of Lodi's responsibility. This task will cover the installationof one 6OkV disconnect switch, 12kV
switchgear, RTU and communication systems, security systems, control building electrical systems,
protection systems, and the control and auxiliary systems. The Acceptance Testing and Commissioning
task will also include the maintenance, repair and overhauling of the existing trap (2) power transformers
and two (2) BOW circuit breakers. Acceptance testing demands a very detailed inspection, adjustments
and confirmation that all power equipment is in excellent working condition and all systems are
functioning correctly and safely before final substation operations. As noted earlier, this work is the
Electric Utility Department's (EUD) responsibility and is planned to occur approximately four to five weeks
prior to the actual energizing of the substation facility, which is scheduled on May 1,2008.
On January 16,2008, City Council authorized a requestfor proposal (RFP) to perform acceptance testing
and commissioning of the Killelea Substation Rehabilitation Project. The estimated budgetwas $175,000.
Accordingly, EUD prepared a detailed technical specification and scope of work for Testing and
Commissioning to the above Project, and on January 31,2008 the specification and the scope of work
was releasedfor price quotes.
APPROVED:
21 it ng, City Manager
Adopt Resolution Rejecting the Low BM, Awarding the Contract to the Next Lowest Responsible B€I ldw for the
Acceptance Testing and Commissioning of the Killelea Substation Rehabilitation Project to PowerTesting &
Energization, Inc. of Vancouver. Washington, and Authorizingthe City Managerto Approve Change Orders, and
Appropriating Funds ($148,592.00) (EUD)
February20, 2008
Page 2 of 2
Elecitric Utility Department (EUD) received price quotations from two professional testing firms:
1. Power Testina and Enemizationof Vancouver. WA provided its price quotation including: project
approach, project team and resumes, qualifications and project experience, and work plan. Their price
quotation is $148,592. This price does not include the price of material for replacementlmaintenanceof
the two (2) power transformers and two (2) 60kV circuit breakers. These materials are to be identified
during the maintenance of the equipment. PowerTesting and Energization shall bring with it a standard
kit of material for maintenance of the above mentioned equipment. Also, during the maintenance period,
the firm shall identify the materials needed to be replaced, and replace them from the supply of material
they bring to Lodi. EUD shall only be charged for materials actually required. The estimated cost of these
materials is up to $30,000 based on EUD's prior experience with similar work at other substations.
2. Power and Testina Company of Fresno, CA provided a price quotation of $70,000. This bid was only
for the acceptance testing and commissioning elements of the scope of work and did not include a price
for overhaul of the Killelea transformers and 60W circuit breakers, The bid was also submitted without
detail on project approach, project team and resumes, qualification and project experience, and work
plan. As a result, this bid does not comply with the specification and scope of work.
Summary: Staff recommends rejection of the bid by PowerTesting Company, since it is incomplete and
to instead award the work to PowerTesting and Energization. The PowerTesting and Energization bid
complies with the bid specification and scope of work and the price is reasonable for the intended work.
The company has significant experience in testing and commissioning of electrical power system
projects, from low voltage up to extra high voltage in general and in substation projects in particular. Past
work by the contractorfor EUD has been favorable.
FISCAL IMPACT: The bid price of the Killelea Substation Rehabilitation Project acceptance testing
and commissioning is $148,592 plus up to $30,000 for needed parts/materials.
FUNDING: Trans ferffundi from unencumbered bond proceeds (Electric Utility Department
2042, of Participation Series A) to Account No. 161677,
Budget Ma
Cldi- r- F urwwsu
Electric Utility Director
PREPARED BY Weldat Haile, Senior Power Engineer
GFMNVI-€/lst
RESOLUTION NO. 2008-26
A RESOLUTION OF THE LODI CITY COUNCIL REJECTINGTHE LOW BID
AND AWARDING THE CONTRACT FOR THE ACCEPTANCE TESTING AND
COMMISSIONING OF THE KILLELEA SUBSTATION REHABILITATION
PROJECT TO POWER TESTING & ENERGIZATION, INC. OF VANCOUVER,
WASHINGTON, AND AUTHORIZING THE CITY MANAGER TO APPROVE
CHANGE ORDERS UP TO $30,000
WHEREAS, in answer to the request for proposal that was duly approved by the City
Council on January 16, 2008, proposals were received and opened on February 5, 2008, at
5:00 p.m. for the Acceptance Testing and Commissioning of the Killelea Substation Rehabilitation
Project; and
WHEREAS, said proposals have been compared and checked and a report thereof filed
with the City Manager as follows:
Power & Testing Company, Fresno, CA $ 70,000
Power Testing & Energization, Inc., Vancouver, WA $148,592
WHEREAS, staff recommends that the City Council reject the low bid for non-compliance
with the request for proposal scope of work and further recommends awarding the contract to Power
Testing & Energization, Inc., of Vancouver, Washington, in the amount of $148,592.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby rejects the low
bidder, Power& Testing Company, of Fresno, California, due to non-compliance with the request for
proposal scope of work; and
BE IT FURTHER RESOLVED that the award of the bid for the Acceptance Testing and
Commissioning of the Killelea Substation Rehabilitation Projectfor the Electric Utility Department be
and the same is hereby awarded to Power Testing & Energization, Inc., of Vancouver, Washington,
in the amount of $148,592; and
BE IT FURTHER RESOLVED that the City Manager be authorized to approve change
orders up to $30,000 for the Acceptance Testing and Commissioning of the Killelea Substation
Rehabilitation Projectfor the Electric Utility Department.
Dated: February20,2008
hereby certify that Resolution No. 2008-26 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held February 20,2008, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian, and
Mayor Mounce
NOES: COUNCIL MEMBERS—None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS — None
4ANDI JOHL
City Clerk
2008-26