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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/02/2008 - RESOLUTION 2008-117 APPROVING THE EXEMPTION TO THE ITEM NUMBER: 23 AGENDA ITEM SUMMARY DATE: December2, 2008 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Bob Hover SUBJECT Resolution 2008-117 Approving the Exemption to the Use of Competitive Process for the Purchase of a 15KV Electrical Switchgear Power Control Center. RECOMMENDATION Staff recommends adoption of the Resolution. FINANCIAL IMPACT To meet the electric needs of current and future customers,the Fort Collins Light and Power Utility is building a new distribution substation at Portner Road(west of the Transfort facility). Funds for the Portner Substation were budgeted in 2008. EXECUTIVE SUMMARY Fort Collins Utilities will be purchasing one new 15KV electrical power control center for installation at the new Portner Substation, located on Trilby, between South College and South Lemay Avenue. The Portner Substation will supply power to southeast Fort Collins and allow for load transfer from the Harmony Substation. It is scheduled to be energized Fall 2009. The switchgear will be purchased directly from the manufacturer, Powell Electrical Manufacturing Company for a total price of$2,129,015. BACKGROUND Power control centers serve as the primary distribution point for main feeders which carry electrical power to specific areas of the City. It is analogous to the breaker panel in a house, but on a much larger scale. The power control centers also incorporate protective relaying for substation transformers and feeders, Supervisory Control and Data Acquisition(SCADA)systems,and related control systems. All existing power control centers in the Fort Collins system have been manufactured by Powell Electrical Manufacturing of Houston, Texas. Powell is the only manufacturer that can meet the City's longstanding quality electrical equipment and assembly specifications. December 2, 2008 -2- Item No. 23 Interchangeability of equipment throughout the electrical system benefits the City in reduced engineering, construction and start up costs,training and long term maintenance costs, uniformity in operations, safety,and reduced spare parts inventory. In addition,the delivery time is shortened and manufacturing errors are minimized,due to the fact the manufacturer has already produced the Utilities standard design and performed the required engineering and testing. The quality of the Powell equipment has proven itself since 1986, when the first power control center was purchased. There has never been a failure of a major equipment component in any of the power control centers purchased. Failures in this kind of equipment are usually catastrophic in nature and very expensive to repair. The disruption to customers and loss of revenue would be quite substantial. Fort Collins Utilities currently has six other Powell power control centers at substations in the Fort Collins electric distribution system, and Powell electrical switchgear at the Drake Water Reclamation Facility. Once power control centers are installed,the expectation is that they have an in service lifetime in excess of 40 years. All power control centers are sized for double the existing transformer capacity to allow for upgrading substation power transformers in the future without changing out the power control centers. Powell has agreed to a purchase price for the Portner power control center of$2,129,015. This is a competitive price in the current market The purchase is an exact copy of the ones purchased in the past,with the exception of using the latest relays and a different SCADA Remote Terminal Unit (RTU). The last power control center was purchased on November,29,2000 for$1,244,445. There has been a huge increase in commodity prices for steel and copper over the last 8 years. Article IV, Section 8-161(d)(1)a. and c. of the City Code authorizes the Director of Purchasing and Risk Management to contract for material without competition if there exists only one (1) responsible source or a particular material or service is required to maintain interchangeability or compatibility as a part of an existing integrated system. The Director of Purchasing and Risk Management has determined that only one responsible source exists for the 15KV electrical switch gear power control center manufactured by Powell, which is the particular equipment required to maintain interchangeable and compatible breakers and relays throughout the City's electrical system. The City Manager has approved this purchase. Council approval is also required for exception over $200,000 by Section 8-161(d)(3) in an open meeting for final approval. ATTACHMENTS 1. Power Control Centers at the Harmony Substation. i ATTACHMENT 1 Figure I is a picture of power control centers at Harmony substation. �. 41Power Control R RESOLUTION 2008-117 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN EXEMPTION TO THE USE OF A COMPETITIVE PROCESS FOR THE PURCHASE OF A 15KV ELECTRICAL SWITCHGEAR POWER CONTROL CENTER WHEREAS, the City's Light and Power Utility is in need of a 15KV electrical switchgear power control center for the Portner Substation site; and WHEREAS, Powell Electrical Manufacturing Company ("Powell") is the only manufacturer that produces equipment in accordance with City specifications and that is interchangeable with existing infrastructure; and WHEREAS, funds for the purchase of such equipment have been budgeted and approved in the Light and Power Utility budget for 2008; and WHEREAS, the interchangeability of equipment throughout the electrical system benefits the City in reduced engineering, construction and start-up costs, maintenance and inventory costs, and safety; and WHEREAS, Article IV, Section 8-161(d)(1)a. of the City Code authorizes the Purchasing Agent to contract for material without competition if there exists only one (1) responsible source; and WHEREAS, Article IV, Section 8-161(d)(1)c. of the City Code authorizes the Purchasing Agent to contract for material without competition if a particular material or service is required to maintain interchangeability or compatibility as a part of an existing integrated system; and WHEREAS, the Purchasing Agent has determined that Powell is the only responsible source for the 15KV electrical switch gear power control center, which equipment is required to maintain interchangeable and compatible breakers and relays throughout the City's electrical system; and WHEREAS, the Purchasing Agent has submitted the requisite justification for this determination to the City Manager for approval; and WHEREAS, the City Manager has reviewed and approved this acquisition; and WHEREAS, Section 8-161(d)(3) requires the City Manager submit all procurements over Two Hundred Thousand Dollars ($200,000) to the City Council in an open meeting for final approval. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Purchasing Agent is hereby authorized to contract with Powell Electrical Manufacturing Company to purchase a 15 KV electrical switchgear power control center in an amount not to exceed $2,129,015. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of December A.D. 2008. Mayor ATTEST: City Clerk