HomeMy WebLinkAboutE-2.1. Approve Purchase of 135 Disconnect SwitchesCONSENT ITEM E-2
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MARCH 27, 2023
SUBJECT: APPROVE THE PURCHASE OF 135 DISCONNECT SWITCHES FOR THE AZUSA
SUBSTATION AND ISSUE A PURCHASE ORDER TO SIEMENS INDUSTRY, INC.
IN THE AMOUNT NOT TO EXCEED $132,304.96.
BACKGROUND:
At the Azusa Substation, electricity is received and delivered to customers via a central structure where
cables, switches, buses, and circuit breakers are interconnected. The switches were designed to enable
control of electricity flow at any strategic sections or junctions of the substation. The switches allow
flexibility for the maintenance of equipment and load maneuvering. There is a total of one hundred thirty-
five (135) switches in various configurations at the substation. These switches have been in service for
more than 50 years and have reached the end of their useful life. Staff recommends purchasing new
switches at this time, which will be replaced during an optimal schedule, when customers are least
affected. The proposed actions waive the competitive purchase requirements pursuant to the Azusa
Municipal Code Section 2-517(a)(37), Article VII, and authorizes a Purchase Order in an amount not-to-
exceed $132,304.96 for 135 outdoor rated, medium voltage disconnect switches.
RECOMMENDATION:
Staff recommends that the Utility Board take the following actions:
1)Waive the competitive purchase requirements pursuant to Section 2-517(a)(37), Article VII,
Chapter 2 of the Azusa Municipal Code (electric switches); and
2)Approve the purchase of six (6) new disconnect switches rated at 2000A, fifteen (15) new
tandem disconnect switches rated at 1200A, and one hundred fourteen (114) new disconnect
switches rated at 1200A; and
3)Authorize the issuance of a Purchase Order to Siemens Industry, Inc. in the amount not-to-
exceed $132,304.96 with a built-in 10 % contingency to cover the cost of shipping.
Approved
Utility Board
03/27/2023
Approve the Purchase of 135 Disconnect Switches
March 27, 2023
Page 2 of 2
ANALYSIS:
Disconnect switches play a critical role in redistributing load during maintenance or emergency
conditions. In the substation, disconnect switches provide flexibility and reliability for the electric crew
to safely complete their work and maintain customer energization. At the Azusa substation, there are 135
switches varying in type. Recently, during routine inspection and maintenance, it was determined that 135
of them are not in good operational condition. They have shown signs of deterioration and are needed to
be replaced as soon as possible. The 135 switches have been in operation for more than 50 years. Because
of the way they were installed, it requires an extensive outage to replace any one of these 135 switches.
In addition, the expected lead time is 11 weeks from the date when the order is placed. Purchasing these
disconnect switches now will give Staff time to plan for their replacements during an off-peak season.
Pursuant to Municipal Code Section 2-517, disconnect switches are exempt from competitive bidding
processes in purchasing. Staff has solicited and received a sole source price proposal for the disconnect
switches from Siemens, Industry, Inc. in the amount of $132,304.96. The staff has reviewed and
determined that the proposal submitted by Siemens Industry, Inc. has met all specifications and
requirements for the disconnect switches at the Azusa Substation.
FISCAL IMPACT:
This project’s funding is budgeted under the Utility’s Electric Capital Improvement Project Budget
Account No. 33-80-000-730-7120/73109B-7120.
Prepared by: Reviewed and Approved:
Manuel Garcia, P.E. Hien Vuong
Sr. Electrical Engineer Assistant General Manager
Electric Operations
Reviewed and Approved:
Tikan Singh
General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) Siemens Industry Inc. Proposal – SF23461107