HomeMy WebLinkAboutA001 - Council Action Form dated May 26, 2026ITEM #:26
DATE:05-26-26
DEPT:ELEC
SUBJECT:SUBSTATION TRANSFORMER RECONDITIONING/MAINTENANCE AND
REPAIR SERVICES FOR ELECTRIC SERVICES
COUNCIL ACTION FORM
BACKGROUND:
The Electric Department maintains transformers throughout the community. Routine
transformer maintenance includes servicing internal components, filtering insulating
oil to remove gases and contaminants, and adding inhibitors to reduce moisture
buildup in the windings and help prevent failure.
To address identified maintenance needs, the City issued a bid in February 2025 for
transformer repair services. Inspections conducted following the prior contract award identified
that a large transformer in the City’s electric system required oil reconditioning, Load Tap
Changer servicing, internal contact cleaning, bushing replacement, and the replacing of
existing gaskets on the entire transformer.
Based on these new findings, b ids were solicited for more all-encompassing substation
transformer maintenance and repair services for this specific transformer. On April 30, 2026,
bids were received as follows:
BIDDER EVALUATED
COST*
AES Kinectrics, Naperville, IL $88,248.25
Transfluid Services, Houston, TX $98,316.95
Energy Solutions, Elkhorn, NE $143,024.76
Total Transformer Services, Niagara Falls,
ON, CA $154,604.30
Solomon Corporation (Solomon Transformers,
LLC), Solomon, KS $238,820.00
Cahoon Sales, Iowa City, IA $257,870.00
*Evaluated cost is inclusive of 6% State of Iowa Taxes, Plus 1% Local Tax
Staff reviewed the bids and concluded that the apparent low bid submitted by AES
Kinectrics is acceptable. Sales tax of $5,773.25 will be paid directly to the State of Iowa,
reducing the contract award amount to $82,475. The FY 2026/27 budget contains $250,000
for substation repairs.
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ALTERNATIVES:
1. Award contract to AES Kinectrics, of Naperville, IL for substation transformer
maintenance and repair services in the amount of $82,475.
2. Purchase the service from one of the other bidders.
3. Reject the award and direct staff to re-bid.
CITY MANAGER'S RECOMMENDED ACTION:
Substation transformers are critical components to the Ames Municipal Electric grid.
Transformer failures negatively impact reliability. The failed equipment is expensive
and may take years 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 to ensure
reliab i l i ty. Therefore, it is the recommendation of the City Manager to approve Alternative
No. 1, as described above.
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