HomeMy WebLinkAboutAgenda Report - January 19, 2022 C-05AGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
IC - 5
AGENDA TITLE: Adopt Resolution Authorizing City Manager to 1) Execute Professional Services
Agreement with Transformer Services, Inc. of Hillsboro, OR ($115,768); 2)
Authorize Purchase of Materials from Circuit Breaker Sales Co., Inc. of Phoenix,
AZ ($160,908); and Appropriate Funds for Substation Load Tap Changer Capital
Improvement Project for Total Authorized Fiscal Year 2021/22 Budget of $288,000
MEETING DATE: January 19, 2022
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION Adopt a resolution authorizing the City Manager to 1) execute a
Professional Services Agreement with Transformer Services, Inc. of
Hillsboro, OR in the amount of $115,768; 2) authorize the purchase
of materials from Circuit Breaker Sales Co., Inc. of Phoenix, AZ in
the amount of $160,908; and appropriate funds for the Substation
Load Tap Changer Capital Improvement Project for a total
authorized Fiscal Year 2021/22 budget of $288,000.
BACKGROUND INFORMATION: Lodi Electric Utility (LEU) owns, operates and maintains four
electrical substations to import and distribute power to Lodi
customers.
Each of these substations has two transformers which converts or "steps down" electricity to a voltage
appropriate for customer use. Contained within each of these transformers is a device called a Load Tap
Changer (LTC) which regulates the voltage to keep it within a narrow operating band for system stability.
As load increases and decreases throughout the day, LTCs keep voltage steady throughout the
distribution system. As time goes on, the contacts for stepping the voltage up and down become worn
out, and the oil they are immersed in becomes contaminated with dissolved gasses and impurities. The
manufacturers of the LTC's specify intervals for maintenance and parts replacement. LEU has been
performing the oil filtration on an ongoing basis. However, it is now necessary to replace the parts that
are at the end of their recommended service life.
Parts kits will be purchased by LEU from Circuit Breaker Sales Co., Inc. In accordance with Lodi
Municipal Code, Sections 3.20.070, Circuit Breaker Sales Co., Inc. is the only authorized distributor who
supplies the needed parts kits.
The labor for removing the old parts and installation of these new kits as well as refilling with new oil will
be performed by Transformer Services, Inc. LEU staff reached out to three separate vendors for
proposals to perform these services. Transformer Services, Inc. was the only vendor willing to provide a
proposal for the specialized services based on their staff availability and expertise.
LEU staff will be providing assistance as needed.
APPROVED: Steve Schwabauer
Stephen Schwabauer, City Manager
FISCAL IMPACT: The project is estimated to cost $288,000, including LEU staff time.
FUNDING AVAILABLE: Project EUCP-21009 has a current authorized budget of $164,812,
including rollover of FY 2020/21 funds. Staff are requesting an
appropriation of funds to 50199000.77020 in the amount of $123,188 for a
total authorized FY 2021/22 budget of $288,000 for Project EUCP-21009.
Andrew Keys
Andrew C. Keys
Deputy City Manager/Internal Services Director
Melissa Price (Jar 10, 2022 14:03 P57)
Jeff Berkheimer
Electric Utility Director
Signature: a Signature: Qa i,a,]n�i'I1:07Psn
Email: akeys@lodi.gov Email: sschwabauer@lodi.gov
AGREEMENT FOR PROFESSIONAL SERVICES
ARTICLE 1
PARTIES AND PURPOSE
Section 1.1 Parties
THIS AGREEMENT is entered into on 2022, by and between the CITY
OF LODI, a municipal corporation (hereinafter "CITY"), and Transformer Services, Inc.,
an Oregon corporation authorized to do business in California (hereinafter
"CONTRACTOR").
Section 1.2 Purpose
CITY selected the CONTRACTOR to provide the services required in
accordance with attached Scope of Services, Exhibit A, attached and incorporated by
this reference.
CITY wishes to enter into an agreement with CONTRACTOR for substation
transformer maintenance services (hereinafter "Project") as set forth in the Scope of
Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to
provide such services to CITY.
ARTICLE 2
SCOPE OF SERVICES
Section 2.1 Scope of Services
CONTRACTOR, for the benefit and at the direction of CITY, shall perform the
Scope of Services as set forth in Exhibit A.
Section 2.2 Time For Commencement and Completion of Work
CONTRACTOR shall commence work pursuant to this Agreement, upon receipt
of a written notice to proceed from CITY or on the date set forth in Section 2.6,
whichever occurs first, and shall perform all services diligently and complete work under
this Agreement based on a mutually agreed upon timeline or as otherwise designated in
the Scope of Services.
CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other
work products as may be designated in the Scope of Services.
CONTRACTOR shall not be responsible for delays caused by the failure of CITY
staff to provide required data or review documents within the appropriate time frames.
The review time by CITY and any other agencies involved in the project shall not be
counted against CONTRACTOR's contract performance period. Also, any delays due to
weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall
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remain in contact with reviewing agencies and make all efforts to review and return all
comments.
Section 2.3 Meetings
CONTRACTOR shall attend meetings as may be set forth in the Scope of
Services.
Section 2.4 Staffing
CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's
capabilities and on the qualifications of CONTRACTOR's principals and staff as
identified in its proposal to CITY. The Scope of Services shall be performed by
CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified
by CONTRACTOR of any change of Project Manager and CITY is granted the right of
approval of all original, additional and replacement personnel at CITY's sole discretion
and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff
prior to any change.
CONTRACTOR represents it is prepared to and can perform all services within
the Scope of Services (Exhibit A) and is prepared to and can perform all services
specified therein. CONTRACTOR represents that it has, or will have at the time this
Agreement is executed, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature are legally required for CONTRACTOR to practice its profession, and
that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of
this Agreement all such licenses, permits, qualifications, insurance and approvals, and
shall indemnify, defend and hold harmless CITY against any costs associated with such
licenses, permits, qualifications, insurance and approvals which may be imposed against
CITY under this Agreement.
Section 2.5 Subcontracts
Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter
into any subcontract with any other party for purposes of providing any work or services
covered by this Agreement.
Section 2.6 Term
The term of this Agreement commences on February 1, 2022 and terminates
upon the completion of the Scope of Services or on December 31, 2022, whichever
occurs first.
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ARTICLE 3
COMPENSATION
Section 3.1 Compensation
CONTRACTOR's compensation for all work under this Agreement shall conform
to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by
this reference.
CONTRACTOR shall not undertake any work beyond the scope of this
Agreement unless such additional work is approved in advance and in writing by CITY.
Section 3.2 Prevailing Wage
The Contractor agrees to conform to the provisions of Chapter 1, Part 7, Division
2 of the Labor Code. The Contractor and any Subcontractor will pay the general
prevailing wage rate and other employer payments for health and welfare, pension,
vacation, travel time, and subsistence pay, apprenticeship or other training programs.
The responsibility for compliance with these Labor Code requirements is on the prime
contractor.
Section 3.3 Contractor Registration — Labor Code 41725.5
No contractor or subcontractor may be awarded a contract for public work on a
public works project (awarded on or after April 1, 2015) unless registered with the
Department of Industrial Relations pursuant to Labor Code section 1725.5.
This project is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.
Section 3.4 Method of Payment
CONTRACTOR shall submit invoices for completed work on a monthly basis, or
as otherwise agreed, providing, without limitation, details as to amount of hours,
individual performing said work, hourly rate, and indicating to what aspect of the Scope
of Services said work is attributable. CONTRACTOR's compensation for all work under
this Agreement shall not exceed the amount of the Fee Proposal.
Section 3.5 Costs
The Fee Proposal shall include all reimbursable costs required for the
performance of the Scope of Services. Payment of additional reimbursable costs
considered to be over and above those inherent in the original Scope of Services shall
be approved in advanced and in writing, by CITY.
Section 3.6 (AB 626) Public Contract Code Section 9204 — Public Works Project
Contract Dispute Resolution Procedure
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Section 9204 of the California Public Contract Code (the "Code") provides a
claim resolution process for "Public Works Project" contracts, as defined, which is
hereby incorporated by this reference, and summarized in the following:
Definitions:
"Claim" means a separate demand by a contractor sent by registered mail or certified
mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or
penalties for delay assessed by the City under a contract for a Public Works Project.
(B) Payment of money or damages arising from work done by, or on behalf
of, a contractor pursuant to a contract for a Public Works Project and payment for which
is not otherwise expressly provided or to which a claimant is not otherwise entitled.
(C) Payment of an amount that is disputed by the City.
"Public Works Project" means the erection, construction, alteration, repair, or
improvement of any public structure, building, road, or other public improvement of any
kind.
Claim Resolution Process:
(1) All Claims must be properly submitted pursuant to the Code and include
reasonable documentation supporting the Claim. Upon receipt of a Claim, the City will
conduct a reasonable review, and within a period not to exceed 45 days, will provide the
claimant a written statement identifying the disputed and undisputed portions of the
Claim. The City and contractor may, by mutual agreement, extend the time periods in
which to review and respond to a Claim. If the City fails to issue a written statement,
paragraph (3) applies.
Any payment due on a portion of the Claim deemed not in dispute by the City will
be processed and made within 60 days after the City issues its written statement.
(2) If the claimant disputes the City's response, or if the City fails to respond
to a Claim within the time prescribed in the Code, the claimant may demand in writing,
by registered mail or certified mail, return receipt requested, an informal conference to
meet and confer for settlement of the issues in dispute, which will be conducted within
30 days of receipt.
If the Claim or any portion thereof remains in dispute after the meet and confer
conference, the City will provide the claimant a written statement, within 10 business
days, identifying the remaining disputed and undisputed portions of the Claim. Any
payment due on an undisputed portion of the Claim will be processed and made within
60 days after the City issues its written statement. Any disputed portion of the Claim, as
identified by the contractor in writing, shall be submitted to nonbinding mediation, as set
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forth in the Code, unless mutually waived and agreed, in writing, to proceed directly to a
civil action or binding arbitration, as applicable.
(3) A Claim that is not responded to within the time requirements set forth in
the Code is deemed rejected in its entirety. A Claim that is denied by reason of such
failure does not constitute an adverse finding with regard to the merits of the Claim or
the responsibility or qualifications of the claimant.
(4) Amounts not paid in a timely manner as required by the Code will bear
interest at 7 percent per annum.
(5) Subcontractors or lower tier subcontractors that lack legal standing or
privity of contract to assert a Claim directly against the City, may request in writing, on
their behalf or the behalf of a lower tier subcontractor, that the contractor present a
Claim to the City for work performed by the subcontractor or lower tier subcontractor.
The request shall be accompanied by reasonable documentation to support the Claim.
Within 45 days of receipt of such written request, the contractor shall notify the
subcontractor in writing as to whether the contractor presented the Claim to the City and,
if the original contractor did not present the Claim, provide the subcontractor with a
statement of the reasons for not having done so.
The Claim resolution procedures and timelines set forth in the Code are in
addition to any other change order, claim, and dispute resolution procedures and
requirements set forth in the City contract documents, to the extent that they are not in
conflict with the timeframes and procedures the Code.
Section 3.7 Auditing
CITY reserves the right to periodically audit all charges made by CONTRACTOR
to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to
furnish CITY, or a designated representative, with necessary information and assistance
needed to conduct such an audit.
CONTRACTOR agrees that CITY or its delegate will have the right to review,
obtain and copy all records pertaining to performance of this Agreement.
CONTRACTOR agrees to provide CITY or its delegate with any relevant information
requested and shall permit CITY or its delegate access to its premises, upon reasonable
notice, during normal business hours for the purpose of interviewing employees and
inspecting and copying such books, records, accounts, and other material that may be
relevant to a matter under investigation for the purpose of determining compliance with
this requirement. CONTRACTOR further agrees to maintain such records for a period of
three (3) years after final payment under this Agreement.
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ARTICLE 4
MISCELLANEOUS PROVISIONS
Section 4.1 Nondiscrimination
In performing services under this Agreement, CONTRACTOR shall not
discriminate in the employment of its employees or in the engagement of any sub
CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital
status, national origin, ancestry, age, or any other criteria prohibited by law.
Section 4.2 ADA Compliance
In performing services under this Agreement, CONTRACTOR shall comply with
the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well
as all applicable regulations and guidelines issued pursuant to the ADA.
Section 4.3 indemnification and Responsibility for Damage
CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold
harmless CITY, its elected and appointed officials, directors, officers, employees and
volunteers from and against any claims, damages, losses, and expenses (including
reasonable attorney's fees and costs), arising out of performance of the services to be
performed under this Agreement, provided that any such claim, damage, loss, or
expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any
subcontractor employed directly by CONTRACTOR, anyone directly or indirectly
employed by any of them, or anyone for whose acts they may be liable, except those
injuries or damages arising out of the active negligence, sole negligence, or sole willful
misconduct of the City of Lodi, its elected and appointed officials, directors, officers,
employees and volunteers. CITY may, at its election, conduct the defense or participate
in the defense of any claim related in any way to this indemnification. If CITY chooses at
its own election to conduct its own defense, participate in its own defense, or obtain
independent legal counsel in defense of any claim related to this indemnification,
CONTRACTOR shall pay all of the costs related thereto, including without limitation
reasonable attorney fees and costs. The defense and indemnification obligations
required by this Agreement are undertaken in addition to, and shall not in any way be
limited by the insurance obligations set forth herein.
Section 4.4 No Personal Liability
Neither the City Council, nor any other officer or authorized assistant or agent or
City employee shall be personally responsible for any liability arising under this
Agreement.
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Section 4.5 Responsibility of CITY
CITY shall not be held responsible for the care or protection of any material or
parts of the work described in the Scope of Services prior to final acceptance by CITY,
except as expressly provided herein.
Section 4.6 Insurance Requirements for CONTRACTOR
CONTRACTOR shall take out and maintain during the life of this Agreement,
insurance coverage as set forth in Exhibit C attached hereto and incorporated by this
reference.
Section 4.7 Successors and Assigns
CITY and CONTRACTOR each bind themselves, their partners, successors,
assigns, and legal representatives to this Agreement without the written consent of the
others. CONTRACTOR shall not assign or transfer any interest in this Agreement
without the prior written consent of CITY. Consent to any such transfer shall be at the
sole discretion of CITY.
Section 4.8 Notices
Any notice required to be given by the terms of this Agreement shall be in writing
signed by an authorized representative of the sender and shall be deemed to have been
given when the same is personally served or upon receipt by express or overnight
delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class
or certified mail, postage prepaid, addressed to the respective parties as follows:
To CITY: City of Lodi
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
Attn: Electric Utility Director
To CONTRACTOR: Transformer Services, Inc.
7905 NE Cherry Drive
Hillsboro, OR 97124
Attn: Stefan Gavojdea
Section 4.9 Cooperation of CITY
CITY shall cooperate fully and in a timely manner in providing relevant
information it has at its disposal relevant to the Scope of Services.
Section 4.10 CONTRACTOR is Not an Employee of CITY
CONTRACTOR agrees that in undertaking the duties to be performed under this
Agreement, it shall act as an independent contractor for and on behalf of CITY and not
an employee of CITY. CITY shall not direct the work and means for accomplishment of
the services and work to be performed hereunder. CITY, however, retains the right to
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require that work performed by CONTRACTOR meet specific standards without regard
to the manner and means of accomplishment thereof.
Section 4.11 Termination
CITY may terminate this Agreement, with or without cause, by giving
CONTRACTOR at least ten (10) days written notice. Where phases are anticipated
within the Scope of Services, at which an intermediate decision is required concerning
whether to proceed further, CITY may terminate at the conclusion of any such phase.
Upon termination, CONTRACTOR shall be entitled to payment as set forth in the
attached Exhibit B to the extent that the work has been performed. Upon termination,
CONTRACTOR shall immediately suspend all work on the Project and deliver any
documents or work in progress to CITY. However, CITY shall assume no liability for
costs, expenses or lost profits resulting from services not completed or for contracts
entered into by CONTRACTOR with third parties in reliance upon this Agreement.
Section 4.12 Confidentiality
CONTRACTOR agrees to maintain confidentiality of all work and work products
produced under this Agreement, except to the extent otherwise required by law or
permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents
owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or
"Proprietary", except to the extent otherwise required by law or permitted in writing by
CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California
Public Records Act.
Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney's Fees
This Agreement shall be governed by the laws of the State of California.
Jurisdiction of litigation arising from this Agreement shall be venued with the San
Joaquin County Superior Court. If any part of this Agreement is found to conflict with
applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict
with said laws, but the remainder of this Agreement shall be in force and effect. In the
event any dispute between the parties arises under or regarding this Agreement, the
prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's
fees from the party who does not prevail as determined by the San Joaquin County
Superior Court.
Section 4.14 City Business License Requirement
CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020
requires CONTRACTOR to have a city business license and CONTRACTOR agrees to
secure such license and pay the appropriate fees prior to performing any work
hereunder.
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Section 4.15 Captions
The captions of the sections and subsections of this Agreement are for
convenience only and shall not be deemed to be relevant in resolving any question or
interpretation or intent hereunder.
Section 4.16 Integration and Modification
This Agreement represents the entire understanding of CITY and
CONTRACTOR as to those matters contained herein. No prior oral or written
understanding shall be of any force or effect with respect to those matters covered
hereunder. This Agreement may not be modified or altered except in writing, signed by
both parties.
Section 4.17 Contract Terms Prevail
All exhibits and this Agreement are intended to be construed as a single
document. Should any inconsistency occur between the specific terms of this
Agreement and the attached exhibits, the terms of this Agreement shall prevail.
Section 4.18 Severability
The invalidity in whole or in part of any provision of this Agreement shall not void
or affect the validity of any other provision of this Agreement.
Section 4.19 Ownership of Documents
All documents, photographs, reports, analyses, audits, computer media, or other
material documents or data, and working papers, whether or not in final form, which
have been obtained or prepared under this Agreement, shall be deemed the property of
CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such
documents during CONTRACTOR's regular business hours. Upon termination or
completion of services under this Agreement, all information collected, work product and
documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days.
CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any
liability resulting from CITY's use of such documents for any purpose other than the
purpose for which they were intended.
Section 4.20 Authority
The undersigned hereby represent and warrant that they are authorized by the
parties to execute this Agreement.
Section 4.21 Federal Transit Funding Conditions
❑ If the box at left is checked, the Federal Transit Funding conditions attached as
Exhibit D apply to this Agreement. In the event of a conflict between the terms of this
Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the
Federal Transit Funding Conditions will control.
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Section 4.22 Counterparts and Electronic Signatures
This Agreement and other documents to be delivered pursuant to this Agreement
may be executed in one or more counterparts, each of which will be deemed to be an
original copy and all of which, when taken together, will be deemed to constitute one and
the same agreement or document, and will be effective when counterparts have been
signed by each of the parties and delivered to the other parties. Each party agrees that
the electronic signatures, whether digital or encrypted, of the parties included in this
Agreement are intended to authenticate this writing and to have the same force and
effect as manual signatures. Delivery of a copy of this Agreement or any other document
contemplated hereby, bearing an original manual or electronic signature by facsimile
transmission (including a facsimile delivered via the Internet), by electronic mail in
"portable document format" (".pdf") or similar format intended to preserve the original
graphic and pictorial appearance of a document, or through the use of electronic
signature software will have the same effect as physical delivery of the paper document
bearing an original signature.
IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this
Agreement as of the date first above written.
ATTEST:
JENNIFER CUSMIR
City Clerk
APPROVED AS TO FORM:
JANICE D. MAGDICH, City Attorney
By:
CITY OF LODI, a municipal corporation
STEPHEN SCHWABAUER
City Manager
TRANSFORMER SERVICES, INC., an
Oregon corporation
By:
Name
Title:
STEFAN GAVOJDEA
Business Manager
Attachments:
Exhibit A — Scope of Services
Exhibit B — Fee Proposal
Exhibit C — Insurance Requirements
Exhibit D — Federal Transit Funding Conditions (if applicable)
Funding Source: EUCP-21009.contracts
(Business Unit & Account No.)
Doc ID
10
CA: Rev.05.2 021.el ec.sign
11
Exhibit A/B
TRANSFORMER SERVICES INC., 7905 NE Cherry Dr., Hillsboro, OR, 97124; Tel:(503)645-3500
Fax:(503) 645-3588; E-mail: dantsi05 40 ahoo.com; www.transformerservicesinc.com
—a
12/14/2021
Rod Brown
City of Lodi, CA
SCOPE OF WORK
This proposal is prepared by Transformer Services Inc. (TSI), 7905 NE Cherry Drive, Hillsboro, OR
97124, for the City of Lodi, CA, regarding the LTC Service of transformers SN C-46785-1-1 and
C07435-5-1.
Location:
Transformer SN C-46785-1-1: City of Lodi, CA, McLane Substation
Transformer SN C07435-5-1: City of Lodi, CA, Industrial Substation
Voltage: 60 kV MVA: 31/35
Transformer Services Inc., (TSI) will mobilize the necessary personnel and equipment to the
Substation locations to perform the requested service as follows:
o Equipment:
■ Regular Hand and power tools
• Oil Storage Container
• Oil Pump
• Generators
• Dry Air and N2
TRANSFORMER INSPECTION:
• Crew participates at the Site -Specific Safety Training and Orientation: Up to 1 hour
• External Inspection of the transformer
SERVICE:
Industrial Substation transformer:
Drain LTC of oil
Service the LTC: Replace any contacts and gaskets if necessary
All replacement parts to be provided by customer
Check and re -tighten connections and bolts within the LTC as seen necessary
Oil fill the LTC with new oil provided by TSI
Collect an oil sample for testing
Test the LTC
Re -deploy from site
Transformer Services Inc., 7905 NE Cherry Dr., Hillsboro, OR 97124 Page 1
TRANSFORMER SERVICES INC., 7905 NE Cherry Dr., Hillsboro, OR 97124; Tel:(503)645-3500
I Fax:(503) 645-3588; E-mail: dantsi05@yahoo.com; www.transformerservicesinc.com
McLane Substation transformer:
Deploy the service crew at the transformer location
Drain LTC of oil
Service the LTC: Replace any contacts and gaskets if necessary
All replacement parts to be provided by customer
Check and re -tighten connections and bolts within the LTC as seen necessary
Oil fill the LTC with new oil provided by TSI
Collect an oil sample for testing
Test the LTC
Re -deploy from site
PERFORMANCE
Work is quoted based upon TSI crew working 7 days a week, 8-12 hours per day, and 24 hours per
day when needed.
Proposed Start Date: TBD
Availability of service personnel and equipment is subject to prior sale.
CLARIFICATIONS TO SCOPE OF WORK
Unless specifically address in the scope of work, the following assumptions have been made in
preparation of our offer:
• Purchaser shall be responsible for switching, lock out and grounding of any equipment
necessary to establish safe work area.
• Purchaser shall provide suitable, free, clear, unlimited and compacted access route, roads and
area around work location for access of service equipment.
• Purchaser shall disconnect and reconnect all external protection, control and relay wiring, as
required.
• Purchaser shall disconnect and reconnect all external bushing terminations or bus work, as
required.
Purchaser shall disassemble and reassemble any deluge systems, as required.
• Purchaser shall provide communication and sanitation facilities.
■ TSI intends to utilize its own personnel and equipment; however, if scheduling conflicts occur,
TSI reserves the right to hire subcontractors to assist with the work.
SCHEDULE OF PRICING
Service Charge:
Industrial Substation transformer: $41,463.00
Applicable Taxes:
$3,421.00
Contingency:
$10,000.00
McLane Substation transformer:
$41,463.00
Applicable Taxes:
$3,421.00
Contingency:
$10,000.00
If TSI provides gasketing material and cut on site: $3,000.00 per transformer
Transformer Services Inc., 7905 NE Cherry Dr., Hillsboro, OR 97124 Page 2
�I
11E TRANSFORMER SERVICES INC., 7905 NE Cherry Dr., Hillsboro, OR 97124; Tel:(503)645-3500
Fax:(503) 645-3588; E-mail: dantsi05@yahoo.com; www.transformerservicesinc.com
TOTAL SERVICE CHARGES: Not to Exceed: $115,768.00
• Payment terms and conditions are NET 30 and are subject to credit approval
• Unless specifically noted, prices do not include:
Union Wages, any site specific or customer required access and/or safety training lasting more
than one hour.
• Requested changes to work scope or delays outside the control of TSI shall be billed in
accordance with TSI's Technical Service Price List (attached).
COMMENTS/EXCEPTIONS TO CONTRACT DOCUMENTS
• None
TERMS & CONDITIONS STATEMENT
• Work shall be performed in accordance with City of Lodi and TSI Service Agreement of
• Bid is valid for a period of 60 days.
• All P.O.s / Contracts / Agreements to be addressed to the following:
Transformer Services, Inc.
7905 NE Cherry Drive
Hillsboro, OR 97124
Transformer Services, Inc. thanks you for the opportunity to provide a quotation for this project. We look
forward to your consideration of this offering and welcome any questions you may have regarding this
proposal for your service requirements.
Best regards,
Stefan Gavojdea
Transformer Services Inc.
7905 NE Cherry Drive,
Hillsboro, OR 97124, USA
Tel: 503-645-3500 * Fax: 503-645-3588
dantsi05@yahoo.com-, www.transformerservicesinc.com
Transformer Services Inc., 7905 NE Cherry Dr., Hillsboro, OR 97124 Page 3
TRANSFORMER SERVICES INC., 7905 NE Cherry Dr., Hillsboro, OR 97124; Tel:(503)645-3500
�AIY Fax:(503) 645-3588; E-mail: dantsi05@yahoo.com; www.transformerservicesinc.com
CUSTOMER AUTHORIZATION
Customer hereby requests that Transformer Services, Inc. performs the above -referenced Services in
accordance with the provisions of this quotation, including all commercial terms and clarifications and,
forms the basis of contract with Transformer Services, Inc.
Customer's Authorization / Purchase Order Number for Accounting Purposes
Billing Address:
By:
Name:
Title:
Date:
Transformer Services Inc., 7905 NE Cherry Dr., Hillsboro, OR 97124 Page 4
P111Y TRANSFORMER SERVICES INC., 7905 NE Cherry Dr., Hillsboro, OR 97124; Tel:(503)645-3500
Fax:(503) 645-3588; E-mail: dantsi05@yahoo.com; www.transformerservicesinc.com
Field Service Rate Schedule
Transformer Services, Inc. maintains a significant staff of trained field service specialists and technicians who
are available to provide advisory assistance, installation, inspection, commissioning, testing, troubleshooting,
start-up, technical studies, maintenance and repair services of electrical apparatus.
Technical professionals are classified in two categories, dependent on the degree of expertise and complexity of
the service required:
Service Specialist
The service specialist has specific experiences and/or educational training along with factory training and
experience in design, assembly, installation or testing. This expert is required for special diagnosis, repairs,
inspection, failure analysis and complex technical evaluations.
Service Technician
The service technician has specialized factory training and experience. This technician can act as a consultant for
customer's personnel with respect to correct installation, testing, maintenance or service requirements consistent
with Transformer Services, Inc. guidelines.
TECHNICAL PERSONNEL RATES
CLASSIFICATION DAILY RATE DAILY RATE WITH HOURLY HOURLY SUNDAY
PER DIEM OVERTIME RATE & HOLIDAY RATE
Service Specialist $1,120.00 $1,270.00 $210.00 $280.00
Service Technician $ 760.00 $910.00 $143.00 $190.00
1 Daily rate applies to all time worked or traveled during a normal eight hour workday. The "shift" is defined
as any consecutive eight-hour period (Monday—Friday, holidays excluded), with an allowance for lunch.
2. Overtime rate applies to all hours worked in excess of eight hours on weekdays and all time worked or
traveled on Saturdays.
3. Sunday and Holiday rate applies to all hours work or traveled on Sundays or holidays.
Hourly and daily rates are exclusive of all travel and living costs.
Charges for travel and living expenses will be billed at cost plus an 15% handling charge.
Per Diem
Where purchasers specify or require daily rates for field services inclusive of local traveling and living expenses, a
flat charge will be billed for all time worked or traveled per eight hour week day or fraction thereof (Monday
through Friday). All hours worked or traveled in excess of eight hours per week day and all hours on Saturdays,
Sundays and holidays will be billed at the applicable hourly overtime rates. Per diem rates exclude the cost of
airfare to/from the job site and headquarters.
Traveling Time
Maximum billing for traveling time, at the applicable rate, shall be eight hours per technical professional for any
one -calendar day.
Transformer Services Inc., 7905 NE Cherry Dr., Hillsboro, OR 97124 Page 5
TRANSFORMER SERVICES INC., 7905 NE Cherry Dr., Hillsboro, OR 97124; Tel:(503)645-3500
7—:3III Fax:(503) 645-3588; E-mail
!I
dantsi05@yahoo.com; www.transformerservicesinc.com
Traveling time and expenses for each technical professional will include leaving and returning to the employee's
headquarters.
Minimum Billing
Minimum billing for one day's service will be charged for each day or fraction thereof that a technical professional
spends on the customer's premises.
Standby Time
When technical professionals are on the customer's premises but are unable to perform the services requested
because of circumstances beyond the control of Transformer Services, Inc. personnel, the purchaser will be
charged at the applicable rate.
OTHER CHARGES
The following charges will be in addition to the service rates stated previously:
A. Expendable Small Tools
When a particular job requires the furnishing of small expendable tools not normally carried by the
technical professional, a charge for such tools will be billed at the cost of acquisition.
B. Materials Furnished by Transformer Services Inc.
All TSI material used on the job will be billed at current prices
C. Material Purchased from Subcontractors or Other Vendors
When the job requires the purchase of materials or services from subcontractors or other vendors, such
items will be billed at cost plus an 18% handling charge.
D. Special Tools and Equipment Furnished by TSI: Rental charge shall be made for all specialized
tools, equipment and instruments. Refer to TSI Field Service Equipment Rental Rate Schedule.
E. Company Vehicle Mileage Rate
Cost of mileage for standard company vehicles to travel to and from the job site will be billed at a rate of
$0.85 per mile. Any vehicle requiring a CDL endorsement to drive shall be billed at a rate of $1.25 per
mile for travel to and from the job site.
PRODUCT WARRANTY WORK
Product warranty work on TSI supplied equipment will be performed F.O.B. factory or at the customer's site, at
TSI's option. Work at the customer's site will be accomplished during a normal eight hour straight time day. If the
purchaser requests that product warranty work be performed during any other time period, purchaser will be
invoiced for the premium time portion of the work, i.e. the difference between the applicable rate and the overtime
rate for the services performed.
TERMS OF PAYMENT
Net 30 days from date of invoice
TERMS AND CONDITIONS
See TSI Terms and Conditions of Sale
Transformer Services Inc., 7905 NE Cherry Dr., Hillsboro, OR 97124 Page 6
EXHIBIT C
NOTE: The City of Lodi is now using the online insurance program PINS Advantage. Once you have been awarded a
contract you will receive an email from the City's online insurance program requesting you to forward the email to your
insurance provider(s) to submit the required insurance documentation electronically
Insurance Reg uirements for Most Contracts
Mot construction or reouirinq ttrofessional liability)
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages
to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the
Contractor, his agents, representatives, employees or subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including
products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than
$2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this
project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2 Automobile Liability: ISO Form Number CA 00 01 covering any auto or if Contractor has no owned autos, then hired, and non -
owned autos with limit no less than $1,000,000 per accident for bodily injury and property damage
3 Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit
of no less than $1,000,000 per accident for bodily injury or disease.
Other Insurance Provisions:
(a) Additional Named Insured Status
The City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers are to be covered
as additional insureds on the CGL and auto policy with respect to liability arising out of work or operations performed by or on
behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General
liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form
CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a
later edition is used
(b) Primary and Non -Contributory Insurance Endorsement
The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. For
any claims related to this contract, the Contractor's insurance coverage shall be primary coverage at least as broad as ISO CG
20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained
by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute
with it.
(c) Waiver of Subrogation Contractor hereby grants to City of Lodi a waiver of any right to subrogation which any insurer of said
Contractor may acquire against the City of Lodi by virtue of the payment of any loss under such insurance. Contractor agrees to
obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether
or not the City of Lodi has received a waiver of subrogation endorsement from the insurer
NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) and (c) above: 221 West Pine Street,
Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oiect
that it is insuring.
(d) Severability of Interest Clause
The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to
increase the limit of the company's liability under the Contractors commercial general liability and automobile liability policies
(e) Notice of Cancellation or Change in Coverage Endorsement
This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such
cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240.
Page 1 I of 2 pages Risk: rev. 3/1/2018
(f) Continuity of Coverage
All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration
of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which
meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual
basis during the Term If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the
City and immediately obtain replacement insurance Contractor agrees and stipulates that any insurance coverage provided to the
City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or
statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq )
(g) Failure to Comply
If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain
the insurance Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum
allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days
of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest Contractor shall pay such reimbursement
and interest on the first (1st) day of the month following the City's notice Notwithstanding any other provision of this Agreement,
if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance,
the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the
Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities
(h) Verification of Coverage
Consultant shall furnish the City with a copy of the policy declaration and endorsement page(s), original certificates and
amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates
and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required
documents prior to the work beginning shall not waive the Consultant's obligation to provide them. The City reserves the right to
require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at
any time. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective
date.
(i) Self -Insured Retentions
Self-insured retentions must be declared to and approved by the City The City may require the Consultant to provide proof of ability
to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall
provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
Q) Insurance Limits
The limits of insurance described herein shall not limit the liability of the Contractor and Contractor's officers, employees, agents,
representatives or subcontractors Contractor's obligation to defend, indemnify and hold the City and its officers, officials,
employees, agents and volunteers harmless under the provisions of this paragraph is not limited to or restricted by any requirement
in the Agreement for Contractor to procure and maintain a policy of insurance.
(k) Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and
Consultant shall ensure that City is an additional insured on insurance required from subcontractors
(i) Qualified Insurer(s)
All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of
California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City Non -admitted
surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines
insurers (LESLI list) and otherwise meet City requirements.
Page 2 1 of 2 pages Risk: rev 3/1/2018
Capital Improvement Plan
FY 2021-2022
Project Title: Substation Load Tap Changer Upgrades
I Munis Project Code: EUCP-21009 123
Section I: Description District Nos: Citywide Project Length 7/20-6/22 Priority High
Phase I of this project includes refurbishing 3 Load Tap Changers - Henning Substation - (2) - UZD Style, Killelea Substation - (1) - UTT Style; Phase II includes refurbishing 2 Load Tap
Changers and oil leaks as well as replacing vacuum bottles at Industrial Substation Bank #3 and McLane Substation Bank 1 in addition to replacing 1 set of transformer bushings at
Henning Substation Bank #2.
Justification/factor driving project
Load Tap Changers coming to end of lifetime operations. Refurbishing them will extend the life of station transformers and possibly avoid catastrophic equipment failures. Phase I of this
project will postpone the need to replace the Killelea Bank 2 Power Transformer previously planned for FY 21. For Phase ll, 2 Load Tap Changers are leaking oil, one into the transformer
and one from the gearbox - requiring maintenance and remediation. Transformer bushings have also been found to be in need of replacement.
Additional Information
Load Tap Changers are the non -static devices connected to the station transformers that keep the voltage steady as the system load increases and decreases. Transformer bushings
connect conductors to lower voltage to system levels. Professional oversight services will perform all major repairs and replacements with internal staff assistance. FY 22 budget includes
rollover of $5,812 from FY 21 as well as additional needed funds of $123,188 for FY 22. FY 21 actuals total $98,237.
Section II: Estimated Project Costs
Expenditure Prior Years FY 20121 FY 21122 FY 22123 FY 23124
Actual Budget
Internal Staff $ $ 17,530 $ 11,200
Contracts $ - $ 73,316 $ 115,800
Miscellaneous _$ - $ 7,391 $ 161,000
Total Capital Costs $ - $ 98,237 $ 288,000 $ - $ -
FY 24125
FY 25126
Future Yrs Total
$ 28,730
$ 189,116
$ -
$ 168,391
$ -
$ - $ 386,237
Section III: Funding Sources/Methods of Financing
Funding Source(s) Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total
Actual Budget
501 - EU Outlay Capital Reserve Fund $ $ 98,237 $ 288,000 $ 386,237
Total Project Financing $ - $ 98,237 $ 288,000 $ - $ - $ - $ - $ - $ 386,237
Section IV Operating Budget Impact
Operating Cost or (savings) Prior Years FY 20121 FY 21122 FY 22123 FY 23124
Estimate Budget
Personnel $
Other Operating Costs $ -
Total Operating Impact $ - $ - $ - $ - $ -
FY 24125
FY 25126
Future Yrs Total
$ -
$ -
$ - $ -
$ -
$ -
RESOLUTION NO. 2022-15
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT
WITH TRANSFORMER SERVICES, INC., OF HILLSBORO, OREGON;
AUTHORIZING PURCHASE OF MATERIALS FROM CIRCUIT BREAKER SALES
CO., INC., OF PHOENIX, ARIZONA; AND FURTHER APPROPRIATING FUNDS
FOR SUBSTATION LOAD TAP CHANGER CAPITAL IMPROVEMENT PROJECT
WHEREAS, Lodi Electric Utility (LEU) owns, operates and maintains four electrical
substations to import and distribute power to Lodi customers; and
WHEREAS, each of these substations has two transformers which convert or "step
down" electricity to a voltage appropriate for customer use; and contained within each of these
transformers is a device called a Load Tap Changer (LTC) which regulates the voltage to keep it
within a narrow operating band for system stability; and
WHEREAS, as load increases and decreases throughout the day, LTCs keep voltage
steady throughout the distribution system; and as time goes on, the contacts for stepping the
voltage up and down become worn out, and the oil they are immersed in becomes
contaminated with dissolved gasses and impurities; and
WHEREAS, the manufacturers of the LTC's specify intervals for maintenance and parts
replacement and it is now necessary to replace the parts that are at the end of their
recommended service life; and
WHEREAS, parts kits will be purchased by LEU from Circuit Breaker Sales Co., Inc.,
and in accordance with Lodi Municipal Code, Sections 3.20.070, Circuit Breaker Sales Co., Inc.
is the only authorized distributor who supplies the needed parts kits; and
WHEREAS, the labor for removing the old parts and installation of these new kits, as
well as refilling with new oil, will be performed by Transformer Services, Inc.; and
WHEREAS, LEU staff reached out to three separate vendors for proposals to perform
these services and Transformer Services, Inc., was the only vendor willing to provide a proposal
for the specialized services based on their staff availability and expertise; and
WHEREAS, this project (CIP Project EUCP-21009) has a current authorized budget of
$164,812, including rollover of Fiscal Year (FY) 2020/21 funds and staff is requesting an
appropriation of funds to 50199000.77020 in the amount of $123,188 for a total authorized
FY 2021/22 budget of $288,000 for said project.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Professional Services Agreement with Transformer
Services, Inc. of Hillsboro, Oregon, in the amount of $115,768, for removal of old parts,
installation of new parts, and refill of oil at substation transformers; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby approve the
purchase of materials from Circuit Breaker Sales Co., Inc., of Phoenix, Arizona, in the amount of
$160,908; and
BE IT FURTHER RESOLVED that funds for the Substation Load Tap Changer CIP
Project EUCP-21009 be appropriated as noted above for a total authorized Fiscal Year 2021/22
budget of $288,000; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to
make minor revisions to the above -referenced document(s) that do not alter the compensation
or term, and to make clerical corrections as necessary.
Dated: January 19, 2022
------------------------------------------------------------------------
------------------------------------------------------------------------
I hereby certify that Resolution No. 2022-15 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held on January 19, 2022 by the following vote:
AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
i
PAMELA M. FARRIS
Assistant City Clerk
2022-15