HomeMy WebLinkAboutAgenda Report - April 20, 2016 C-05TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C5
AGENDA TITLE: Adopt Resolution Awarding Bid for the Purchase of One 60/12kV Power
Transformer from Virginia Transformer Corporation of Roanoke, Virginia ($476,814)
MEETING DATE: April 20, 2016
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt resolution awarding bid for the purchase of one 60/12kV
power transformer from Virginia Transformer Corporation, of
Roanoke, Virginia, in an amount not to exceed $476,814.
BACKGROUND INFORMATION: On October21, 2015, the City Council approved specifications and
authorized advertisement for bids to procure a power transformer
with Toad tap changer to replace an aging unit at Killelea Substation.
The Electric Utility advertised bids on October 24 and 28, November 4 and 7, and December 2 and 5, 2015.
On January 7, 2016, bids were opened with eight suppliers submitting proposals. Life -cycle costs (total
purchase price plus cost of operation based on estimated power Toss during the projected life of the
transformer) were evaluated as shown on Exhibit A, attached. A summary of the bid results are provided
below.
Manufacturer
Location
Purchase Cost
and Delivery
$ 511,812
Lifecycle
Cost
$144,229
Total Cost
WEG Electric Corp.
Duluth, GA
$656,041
ABB Power
South Boston, VA
$762,134
$150,775
$912,909
Virginia Transformer Corp.
Roanoke, VA
$476,814
$150,269
$627,083
SPX Transformer Solutions
Waukesha, WI
$868,281
$169,747
$1,038,028
Howard Industries
Laurel, MS
$943,546
$139,360
$1,082,906
Niagra Transformer Corp..
Buffalo, NY
$930,617
$167,503
$1,098,120
Delta Star Inc.
Lynchburg, VA
$706,763
$165,432
$872,195
PanAmerica Supply Inc.
Katy, TX
$581,240
$156,556
$737,796
FISCAL IMPACT:
FUNDING AVAILABLE:
PREPARED BY:
Attachment
EAK/JLM/Ist
Procurement cost is $476,814.
Included in FY2015/16 Budget Account No. 50199000.77020
Jordan Ayers 1'
Deputy City Manager. ternal Services Director
ElizabethA. 6rkley
Electric Utility Director
Jules Marchesseault, Engineering and Operations Manager
APPROVED:
Stephen Schw au r, City Manager
Exhibit A
City of Lodi
Killelea 60/12kV Substation Transformer Life -Cycle Cost Evaluation
Bidder
WEG Electric
ABB
Virginia
SPX
Howard
Niagara
Delta Star
PanAmerica
Loss data
No -Load Loss kW (@100%V)
16
14.14
13.8
13.1
15.1
11.9
17.1
16
Load Loss kW (N position)
48.5
60.15
57.5
64.9
48.65
83
61.8
47
Aux. Loss kW (OA/FA)
1.125
1.4
2.3
5.1
1
1.32
1
4
No -Load Loss Penalty
$78,895
$69,723
$68,047
$64,595
$74,457
$58,678
$84,319
$78,895
Load Loss Penalty
$59,787
$74,149
$70,882
$80,004
$59,972
$102,316
$76,183
$57,938
Aux. Loss Penalty
$5,547
$6,903
$11,341
$25,148
$4,931
$6,509
$4,931
$19,724
Total Penalty Adder
$144,229
$150,775
$150,269
$169,747
$139,360
$167,503
$165,432
$156,556
Bid Amount
$511,812
$762,134
$476,814
$868,281
$943,546
$930,617
$706,763
$581,240
Total Life -cycle cost
$656,041
$912,909
$627,083
$1,038,028
$1,082,906
$1,098,120
$872,195
$737,796
No Load Loss Penalty = NLLxExHxPW
Load Loss Penalty = LL x E x H x PW x Y^2
Aux. Loss Penalty = AL x E x H x PW
NLL = No -Load Loss given in kW
LL = Load Loss given in kW
AL = Aux. Loss given in kW
$0.05 E is the energy cost of the utility in $/kWh
8,760 H is the annual hours of service
11.26 PW is the present worth factor (1-1/(1+T)^N)/T
0.08 Bond or loan interest rate (T)
30 Number of years of expected service (N)
0.5 Y is the average expected transformer loading
RESOLUTION NO. 2016-48
A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE BID FOR
THE PURCHASE OF ONE 60/12kV POWER TRANSFORMER FROM
VIRGINIA TRANSFORMER CORPORATION, OF ROANOKE, VIRGINIA
WHEREAS, in answer to notice duly published in accordance with law and the order of
this City Council, sealed bids were received and publicly opened on January 7, 2016, at
11:00 a.m., for the purchase of one 60/12kV power transformer with load tap changer for Lodi
Electric Utility, described in the specifications therefore approved by the City Council on
October 21, 2015; and
WHEREAS, said bids have been compared as to life -cycle costs, checked, and
tabulated and a report thereof filed with the City Manager, as shown on Exhibit A attached; and
WHEREAS, the bids meeting the City's specification with the lowest estimated life -cycle
costs are shown below:
Manufacturer
WEG Electric Corp.
ABB Power
Virginia Transformer Corp.
SPX Transformer Solutions
Howard Industries
Niagra Transformer Corp.
Delta Star, Inc.
PanAmerica Supply, Inc.
Location
Purchase Cost
and Delivery
LifeCycle
Cost
Total Cost
Duluth, GA
$511,812
$144,229
$656,041
South Boston, VA
$762,134
$150,775
$912,909
Roanoke, VA
$476,814
$150,269
$627,083
Waukesha, WI
$868,281
$169,747
$1,038,028
Laurel, MS
$943,546
$139,360
$1,082,906
Buffalo, NY
$930,617
$167,503
$1,098,120
Lynchburg, VA
$706,763
$165,432
$872,195
Katy, TX
$581,240
$156,556
$737,796
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award
the bid for the purchase of one 60/12kV power transformer with Toad tap changer to
Virginia Transformer Corporation, of Roanoke, Virginia, in an amount not to exceed $476,814.
Dated: April 20, 2016
hereby certify that Resolution No. 2016-48 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 20, 2016, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Kuehne
ABSTAIN: COUNCIL MEMBERS — None
NIFER�M. FERRAIOLO
ty Clerk
2016-48
Exhibit A
City of Lodi
Killelea 60/12kV Substation Transformer Life -Cycle Cost Evaluation
Bidder
WEG Electric
ABB
Virginia
SPX
Howard
Niagara
Delta Star
PanAmerica
Loss data
No -Load Loss kW (@100%V)
16
14.14
13.8
13.1
15.1
11.9
17.1
16
Load Loss kW (N position)
48.5
60.15
57.5
64.9
48.65
83
61.8
47
Aux. Loss kW (OA/FA)
1.125
1.4
2.3
5.1
1
1.32
1
4
No -Load Loss Penalty
$78,895
$69,723
$68,047
$64,595
$74,457
$58,678
$84,319
$78,895
Load Loss Penalty
$59,787
$74,149
$70,882
$80,004
$59,972
$102,316
$76,183
$57,938
Aux. Loss Penalty
$5,547
$6,903
$11,341
$25,148
$4,931
$6,509
$4,931
$19,724
Total Penalty Adder
$144,229
$150,775
$150,269
$169,747
$139,360
$167,503
$165,432
$156,556
Bid Amount
$511,812
$762,134
$476,814
$868,281
$943,546
$930,617
$706,763
$581,240
Total Life -cycle cost
$656,041
$912,909
$627,083
$1,038,028
$1,082,906
$1,098,120
$872,195
$737,796
No Load Loss Penalty = NLLxExHxPW
Load Loss Penalty = LL x E x H x PW x Y^2
Aux. Loss Penalty = AL x E x H x PW
NLL = No -Load Loss given in kW
LL = Load Loss given in kW
AL = Aux. Loss given in kW
$0.05 E is the energy cost of the utility in $/kWh
8,760 H is the annual hours of service
11.26 PW is the present worth factor (1-1/(1+T)^N)/T
0.08 Bond or loan interest rate (T)
30 Number of years of expected service (N)
0.5 Y is the average expected transformer loading