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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/20/2014 - RESOLUTION 2014-034 APPROVING AN EXCEPTION TO THEAgenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY May 20, 2014 City Council STAFF Kraig Bader, Standards Engineering Manager Steven Catanach, Light & Power Operations Manager Gerry Paul, Director of Purchasing & Risk Management SUBJECT Resolution 2014-034 Approving an Exception to the Use of a Competitive Process for the Purchase of Sealed- Design, Medium Voltage Electric Circuit Switches From S&C Electric Company. EXECUTIVE SUMMARY The purpose of the item is to request an exception to the normal competitive bid process for the purchase of sealed-design, medium voltage electric circuit switches, as the alternative is contrary to the City’s interests. To maintain the reliability and effectiveness of the electric distribution system as it expands to support citizen- customers, a number of projects have been identified that will require the installation of medium voltage, pad- mounted switches. In addition to the need to support system expansion, there are a number of projects where staff must use sealed-design switches for areas where there is potential for flood waters to create reliability and safety problems for air-insulated switches. The new Woodward headquarters and manufacturing site is one of the sites that will require reliable, sealed-design switches. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Exception to Competitive Bidding Rationale: City Code Section 8-161(d)(1)b. Although there exists more than one responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the city’s financial interest, and will substantially impede the City’s administrative functions and the delivery of services to the public. The fault-interrupting switch described is designed for use where robust circuit-switching capability and reliability are of paramount importance. The expected function of a fault-interrupting switch insulated with the gas sulfur hexafluoride (SF6) is to operate in a fashion similar to a circuit breaker, and open the circuit when a failure occurs, protecting the electric distribution system and limiting the number of customers affected by an equipment failure. These switches can also be fitted with remote supervisory controls and operators that allow for circuit reconfiguration and faster outage restoration. At this point, we are selecting the S&C Electric Company (S&C) as the manufacturer of the fault interrupting switches we are using in this application. Field experience and analysis of recent switch designs has shown the S&C’s switches are the safest and most reliable for use in our distribution system. Over the last several years, we have experienced significant problems with SF6-insulated switches manufactured by companies other than S&C. G&W Electric (G&W), the other major manufacturer from whom staff has purchased such switches in the past, is unable to manufacture a quality switch. G&W’s switches have exhibited the following problems in our distribution system: Agenda Item 15 Item # 15 Page 2 (1) SF6 leakage - Loss of SF6 insulating gas pressure, makes it unsafe to perform normal switching operations. This poses a safety risk to line crews who operate the equipment and to the general public if a fault occurs in the switch. SF6 leakage also poses an environmental concern, and we have had no problems with SF6 leakage from S&C’s switches. (2) False tripping - the protected taps on the G&W switches open up to protect the system from a fault that has not occurred. This creates unnecessary outages of significant proportions. In the case of large industrial and commercial customers, such as Woodward, these outages are also very expensive. (3) Failure to trip on a confirmed through-fault - we have experienced several 200-amp equipment failures for which the upstream G&W switches did not trip on over-currents that exceeded 5000 amps (7000 amps in one case). In both of those cases, staff experienced failures that should have been isolated by G&W’s switch, but which had to be interrupted by the substation breakers, dramatically increasing the extent and length of the outages. Failure to interrupt known through-faults poses significant risks to worker and public safety, as the intent of the fault interrupting switch is to limit fault energy to protect the electric distribution system and the public. Again, outages of this nature can be very extensive, so it is important to limit the size of the outage only to the customers on the affected tap. G&W has not been cooperative about addressing these problems, and every repair effort is charged to the Utility as an additional O&M expense. S&C, the selected manufacturer for this item, has very good quality control and reliability on their switches has been exemplary. For that reason, S&C’s SF6-insulated switches are the preferred equipment for fault interrupter applications in our distribution system. This equipment will be purchased from S&C’s exclusive sales representative, The Peterson Company. Staff continues to work with other manufacturers who have the potential to develop and provide fault-interrupting switches with similar functionality, but those companies have not yet met the City’s functional and reliability requirements. FINANCIAL / ECONOMIC IMPACTS Fort Collins Utilities has been using G&W switches and S&C switches for over 20 years. Maintenance experience with G&W switches in comparison with S&C switches have shown over time that S&C is the more efficient and reliable choice. ENVIRONMENTAL IMPACTS Fort Collins Utilities has been using G&W switches and S&C switches for over 20 years, and staff has yet to see any SF6 leakage from an S&C switch. The G&W switches have required close observation and maintenance to monitor their SF6 levels and repair leak-points. - 1 - RESOLUTION 2014-034 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN EXCEPTION TO THE USE OF A COMPETITIVE PROCESS FOR THE PURCHASE OF SEALED-DESIGN, MEDIUM VOLTAGE ELECTRIC CIRCUIT SWITCHES FROM S&C ELECTRIC COMPANY WHEREAS, the City Electric Utility has, for many years, purchased and used sealed- design, medium voltage electric circuit switches that are designed for use where robust circuit- switching capability and reliability are of paramount importance (“Switches”); and WHEREAS, for the past twenty years, the City has purchased these Switches from the S&C Electric Company (“S&C”) and from G&W Electric (“G&W”); and WHEREAS, over the years, the Electric Utility has experienced significant problems with G&W’s Switches leaking sulfur hexafluoride, which is a gas used as an insulator in the Switches, creating both an environmental concern and operational issues; and WHEREAS, the Electric Utility has not experienced this same problem with S&C’s Switches, which have proven to be much more efficient and reliable than G&W Switches; and WHEREAS, the Switches needed by the Electric Utility are currently manufactured by S&C and G&W; and WHEREAS, City Code Section 8-160(d)(1)b authorizes the City’s Purchasing Agent to negotiate the purchase of equipment without utilizing a competitive process where the Purchasing Agent determines that although that equipment is available from more than one responsible source, a competitive process cannot reasonably be used, or if used, will result in a substantially higher cost to the City, will otherwise injure the City’s financial interests, or will substantially impede the City’s administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has determined that using a source for the Switches other than S&C would result in the City purchasing a less reliable product that would substantially impede the City’s delivery of electrical services to the public; and WHEREAS, as required by the City Code, the Purchasing Agent has submitted for the City Manager’s approval his written justification for the purchase of the Switches from S&C without a competitive process; and WHEREAS, the Electric Utility needs to purchase five Switches, the total purchase price for which is over $200,000; and WHEREAS, the City Manager concurs in the Purchasing Agent’s determination that it is in the best interests of the City that the needed five Switches be acquired from S&C as an exception to the competitive process; and - 2 - WHEREAS, City Code Section 8-161(d)(3) requires approval of this procurement by the City Council since it involves a purchase of more than $200,000; and WHEREAS, City Code Section 8-161(d)(4) provides that any procurement approved by the City Manager or the City Council as an exception to competitive purchasing requirements may be used as the basis for a negotiated purchase of additional quantities of the same materials or services within a period of five years. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby approves the purchase of five Switches from S&C as an exception to the City’s competitive procurement requirements for the reasons set forth herein and further authorizes the Purchasing Agent to negotiate additional purchases of Switches from S&C at any time during the next five years from the date of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 20th day of May, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk