REPORT TO COUNCIL
SUBJECT
Title
Amendment No. 1 to Services Agreement with Siemens Industry, Inc. for Transformer Assembly and Commissioning
Report
BACKGROUND
In 2005, the City's Electric Department, Silicon Valley Power (SVP), purchased eight (8) transformers for Palm, Kenneth, Walsh and Serra Substations from Siemens Industry, Inc. (Siemens). All transformers were installed with the exception of two transformers that were prepared for storage until they could be installed at Serra Substation. The completion of the Serra Substation project has been delayed due to land acquisition issues required for the expansion. On June 9, 2016, SVP entered into an Agreement for the Performance of Services with Siemens to evaluate the condition of these two transformers.
On December 5, 2017, the City Council approved an agreement with Siemens in the amount of $209,305 to refurbish and test these two transformers. The original Siemens proposal was for three (3) HV bushings and three (3) LV bushings per transformer (a total of 12 bushings). The agreement includes an oil price adjustment if the work was scheduled in a later time period.
DISCUSSION
In the course of scheduling the work, SVP and Siemens determined all 18 bushings required replacement and the original proposal did not include all 18 bushings. Siemens identified that one (1) LV N and two (2) Y bushings were not ordered for each transformer. In order to rectify the situation Siemens will purchase the two (2) LV N bushings at no cost to the City will purchase the additional four (4) Y bushings. Staff has agreed that the bushings are necessary to complete the work. The additional costs of the four (4) Y bushings and the oil price adjustment total $16,059. Staff recommends entering into Amendment No. 1 to this agreement with Siemens to cover the cost of the bushing and oil escalation so that work can be completed to refurbish the Serra Substation transformers.
ENVIRONMENTAL REVIEW
This action being consi...
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