08-20-10 BPU RPT 08 - Laserfiche WebLink

Home

RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: August 20, 2010 ITEM NO: 8 SUBJECT: AWARD PURCHASE ORDERS FOR THREE AND SINGLE PHASE ECO-FRIENDLY DISTRIBUTION TRANSFORMERS — BID DD1816 ISSUE: Board of Public Utilities approval is requested to award purchase orders to CG Power Systems (Pauwels International) for three-phase "eco-friendly" transformers and to Central Moloney, Inc., for single-phase "eco-friendly° transformers. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the award of purchase order for three-phase transformers to Pauwels International of Washington, Missouri in the amount of$926,000; 2. Approve the award of purchase for single-phase transformers to Central Moloney, Inc., of Pine Bluff, Arkansas in the amount of$263,000; and 3. Authorize the Purchasing Services Manager to issue the Purchase Order for the required transformers for Fiscal Year 2010/11. BACKGROUND: Staff issued a request for bids on May 14, 2010, which included solicitation for a Biodegradable Natural Ester Dielectric fluid (FR3), as well as for Mineral ail, which was the current dielectric insulating oil used in RPU transformers in the past. Specifically FR3 is a biodegradable, vegetable-based oil extract and is: • Produced from renewable agricultural seed crops, such as soybean, canola, sunflower, helping to reduce dependency on petroleum products; • Environmentally friendly; • Shown to have zero acute toxicity; • Recognized to be a non-carcinogenic by the State of California; • Covered under the Edible Oil Regulatory Reform Act • Designated less flammable per ASTM Standards, with flash points exceeding 300°C and will not sustain a flame absent a high-energy source of ignition; and, • Considered less toxic than by-products produced by mineral oil fires. Furthermore, FR3 has proven to enhance the overload capability and extend the life of paper-insulated fluid filled transformers which results in fewer transformer failures over time and improved service reliability for our customers. Based on eight years of experience from the Sacramento Municipal Utilities District, FR3 enhanced equipment life and the life-cycle cost of the transformer, including labor to replace, was reduced. Although the initial cost is marginally higher compared to mineral oil filled transformers, replacement can be deferred by many years, resulting in a lower ownership cost.