HomeMy WebLinkAboutA001 - Council Action Form dated March 11, 2025ITEM #:18
DATE:03-11-25
DEPT:ELEC
SUBJECT:SUBSTATION TRANSFORMER MAINTENANCE AND REPAIR SERVICES
FOR ELECTRIC SERVICES
COUNCIL ACTION FORM
BACKGROUND:
The Electric Department maintains transformers throughout the community. Routine maintenance for
transformers involves servicing internal components, filtering the oil to remove gases and
contaminants, and adding inhibitor to prevent moisture buildup in the windings, protecting
against failure. Recent checks revealed that two large transformers in the City's electric system
need oil reconditioning, Load Tap Changer servicing, and internal contact cleaning. Since both
transformers have the same type of Load Tap Changer, which is unique to the rest of the City's
transformers, it was decided to combine the repairs into one job.
Bids were solicited for substation transformer maintenance and repair services. On February 25, 2025,
bids were received as follows:
BIDDER COST*
Southwest Electric Company, Oklahoma City, OK $98,820.92
RESA Service, Houston, TX $111,849.24
Power Substation Services, Wheeling, OH $146,344.97
Energy Solutions, Elkhorn, NE $150,870.00
Transfluid Services, Houston, TX $158,327.90
North American Substation Services, Altamonte
Springs, FL $232,939.00
AES Kinetics, Naperville, IL $233,361.65
Cahoon Sales, Iowa City, IA $285,690.00
*Price inclusive of 6% State of Iowa Taxes Plus 1% Local Tax
Staff reviewed the bids and concluded that the apparent low bid submitted by Southwest Electric
Company is acceptable. The FY 2024/25 budget contains $120,120.35 for this work.
ALTERNATIVES:
1. Award contract to Southwest Electric Company, of Oklahoma City, OK for substation
transformer maintenance and repair services in the amount of $98,820.92.
2. Purchase the service from one of the other bidders.
3. Reject the award and direct staff to re-bid.
1
CITY MANAGER'S RECOMMENDED ACTION:
Substation transformers are critical components that transform high voltage electricity to
distribution level voltage. Transformer failures negatively impact reliability, and the failed
equipment is expensive to replace. It is good utility practice to monitor and service these
transformers to limit problems in the future. Oil reconditioning, tap changer servicing, and
contact cleaning are prudent preventative maintenance activities. Therefore, it is the
recommendation of the City Manager to approve Alternative No. 1, as described above.
2