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City Council Agenda Item Meeting of November 20, 2018

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City Council Agenda Item Meeting of November 20, 2018 City Council Agenda Item Meeting of November 20, 2018 TO: The Honorable Mayor and Members of the City Council c;l'./;-. FROM: James R. O'Connor, City Manalef7' ~,v/ DATE: November 13, 2018 SUBJECT: Cancellation of Purchase Order #S014429 - Substation 7 ABB Switchgear- Final Payment Amount - $77,448.20 REQUESTED BY: City Manager/Electrical T&D Department The following is requested as it relates to the above-referenced agenda item: X Request Council review and approval based on the attached supporting documentation. No action required. (Information only) Departmental Correspondence E-Mail: [email protected] TO: James R. O'Connor, City Manager DEPT: City Manager THRU: John O'Brien, Manager of Purchasing 4:;:t'l2 DEPT: Purchasing THRU: Cindy Lawson, Director of Finance~~--/ DEPT: Finance /V THRU: Wayne Coment, City Attorney DEPT: City Attorney FROM: Ted Fletcher, Director of Electric Utility Operations DEPT: Electrical T&D DATE: November 7, 2018 SUBJECT: Cancellation of Purchase Order #S014429 - Substation 7 ABB Switchgear On November 7, 2017 City Council awarded ABB Inc. a contract for the purchase of switchgear for Substation 7 in the amount of $3 87,241.00. On February 15, 2018 the purchase order for the switchgear was placed on hold due to the pending sale of the electric utility to FPL. During the coordination of the City and FPL's transition team, it was determined that the switchgear will not be utilized for load distribution by FPL. A request was sent to ABB Inc. for the cancellation of the purchase order. On October 31, 2018 ABB Inc. provided the final invoice for the cancellation. Per the terms and conditions of the contract (see attached), the cancellation of the purchase order is subjected to 20% charge of the purchase price. The cancellation schedule charge is in the amount of $77 ,448.20. I am requesting approval in the amount of $77,448.20 for final payment to ABB Inc. Funding will be provided through account numbers 403.5400.531.613001 - Switchgear Rebuild. Invoice Invoice number : 7104048201 ABB Inc. Invoice date : 10/31/2018 Terms of payment : 45 days net Customer no. : 270009419 Due date : 12/15/2018 Invoice address Bill to : 270009419 Currency : USO CITY OF VERO BEACH Customer P.O. : PO S014429 PO Box 1389 Customer contact VERO BEACH FL 32961-1389 Customer P.0.date : 11/21/2017 USA Bill of lading no. : 85361480 Customer address Sold to: 270009419 Shipped date : 10/31/2018 CITY OF VERO BEACH Terms of delivery : Prepaid and Allowed 1053 20TH PL Delivery method : Ground parcel ­ VERO BEACH FL 32960-5359 INCO terms : CPT Origin USA Sales department : Utility SE PP Sales person Sales order no. : WTR5545 Delivery address Ship to : 799900000 Project manager : Alberto Hernandez Hernandez CITY OF VERO BEACH Project no. CENTRAL WAREHOUSE 3455 AIRPORT WEST DR. Federal l.D. no : 36-3100018 VERO BEACH FL 32960 USA General Terms and Conditions : If not otherwise agreed upon in writing ABB lnc.'s General Terms & Conditions apply to this offer. Item No. Part number Quantity UoM Unit price Amount Cust Item. Part no. Customer Price base Description Adjustment Adjustment amount 70 CMX0040CANCELLATIO EA USO 77,448.00 USO 77,448.00 6 1 Cancellation cost CMX0040 Fixed Charge for Inv 0.00 Total Freight 0.00 Total Tax 0.00 Total Amount 77,448.00 ABB Inc. ACH/Wire Transfer to : Mail Payment To 305 Gregson Drive ABB Inc ABB Inc. CARY NC 27511 JPMORGAN CHASE BANK NA PO Box88868 USA Chicago IL 60695-1868 US ABA Number: 021000021 SWIFT Code: CHASUS33 Accountno :000000323884326 Invoice 7104048201 Duplicate Page 1 of 210/31/2018 15:05:47 Total Amount: USO 77,448.00 PR1-110/090318/USCHSIM3 Additional Information : Ifyou have any questions regarding this invoice, please contact ABB Accounts Receivable by visiting http://new.abb.com!us/arinquiries or 1-866-330-2461. Please send remittance advices to [email protected]. ABB Inc. ACH/Wire Transfer to : Mail Payment To 305 Gregson Drive ABB Inc ABB Inc. CARY NC 27511 JPMORGAN CHASE BANK NA PO Box 88868 USA Chicago IL 60695-1868 US ABA Number: 021000021 SWIFT Code : CHASUS33 Accountno :000000323884326 Invoice 7104048201 Duplicate Page 2 of 2 10131/2018 15:05:47 Total Amount: USD 77,448.00 PR1~110/0903181USCHSIM3 _,,,,..=.:::._---·-' Departmental Correspondence E-Mail: [email protected] TO: James R. O'Connor, City Manager DEPT: City Manager FROM: Ted Fletcher, Director, Electric Utility Operations'lf· DEPT: Electrical T&D DATE: October 6, 2017 SUBJECT: West SubstationSeven - 15kv Switchgear Replacement- ($387,241.00) Background: e West Substation Seven switchgear replacement is required as identified in the Optimization Study to meet load contingency's to prevent-transformer overloading for customer base. The new switchgear is new Industry Standard and meets all IEEE insulation ratings. Funding: • Funding will come from Electric Switchgear Rebuild account# 403.5400.531.613001 which has an available budget of$500,000 in the 2017-2018 Five-year CIP. Recommendation: I am requesting approval for the following item: @ The item is for l 5KV Switchgear Replacement totaling $3 87,241.00. ABB Inc. is Vero Beach's Electric Utility Standardized switchgear. The work will be executed by currently contracted engineering firm Aubrey Silvey Enterprises, Inc. This project has been vetted and approved by FPL to maintain reliability. SWOT Analysis: • Strengths: The new switchgear is compliant to the new industry standards. It will perform at seasonal load peak demands and will allow for more distribution redundancy. • Weaknesses: None. • Opportunities: By replacing the switchgear, relay synchronization and telemetry data pertaining to the status of the switchgear and feeders in the electric distribution system will be available. • Threats: If not replaced, the 69kv transformer at Substation Three (3) will become inadequate in carrying the necessary electric load needed to service customers. ABB Bid Proposal City of Vero Beach Vero Beach - Substation 7 - Switchgear Replacement ABB CCP # 16Q3184601 - Vero Beach-Substation 7 Medium Voltage Air Insulated Metal-Clad Switchgear . -.J•. -·•· '~ ..:~ '"fr.. ·. ··.' :I nunnt-.~-~~; ABB Inc. lake Mary, Florida USA 04/24/2017 City of Vero Beach Attention: Subject: Vero Beach - Substation 7 ­ Switchgear Replacement RFQ No. ABB CCP No. 1603184601 - Vero Beach-Substation 7, Rev. No. 1, Date: 04/24/2017 Dear; In response to your request for quotation we are pleased to submit our proposal for Advance® Metal-Clad Switchgear as described herein. Our proposal is based on the drawings, specifications, and requirements of your request for quotation except as indicated by our proposal bill of material or clarifications in the technical and/or commercial sections of this proposal. The opportunity to provide this equipment to City of Vero Beach is greatly appreciated, and this offering is intended to meet your highest expectations. We look forward to your consideration of this proposal, and will be pleased to answer any questions you may have. Please contact myself, if you require any additional information. Best regards, Mauricio Martinez Marketing Representative Ph: 407 732 2187 Fax: E-mail: [email protected] This Is the Property ofABB Inc. and contains Confidential information which must not be duplicated, used or disclosed other than expressly authorized by ABB Inc. ABB Inc. Ph: 407-732-2000 655 Century Point Fax: 407-732-2346 Lake Mary, FL 32746 Website: www.abb.com/mediumvoltage Customer: City of Vero Beach Commercial Offering Project: Vero Beach - Substation 7 - Switchgear Replacement ABB CCP: 1603184601 - Vero Beach-Substation 7 Date: 4/1/2015 Rev.# 1 ; 04/24/2017 Page 3 of7 Commercial Offering For City of Vero Beach Vero Beach .. Substation 7 • Switchgear Replacement ABB Inc. This is the Property of ABB Inc. and contains 655 Century Point CONFIDENTIAL Information which must not be Lake Mary, FL 32746 duplicated, used or disclosed other than Ph: 407-732-2000 expressly authorized by ABB Inc. Customer: City of Vero Beach Commercial Offering Project: Vero Beach - Substation 7 - Switchgear Replacement ABB CCP: 1603184601 - Vero Beach-Substation 7 Date: 4/1/2015 Rev.# 1 ; 04/24/2017 Page 4 of7 Commercial Offering Item List & Pricing Information Rev. Item No. No. Qty. Description Unit Price, US$ 0 A01 1 Switchgear 220,295 ABB type Advance® Metal-Clad Switchgear Indoor, rated 15 kV, 2000 A, 25 kA, 3-phase 3-wire, 60 Hz, 95 kV BIL consisting of (6) cubicles with (5) ADVAC™ vacuum circuit breakers, complete with specified equipment per the attached bill of material. 0 A02 1 Accessories 11,166 Accessories & Special Tools - please refer to item bill of material for detailed list and unit prices. 0 A03 1 Spare parts 3,411 Spare Parts - please refer to bill of material for detailed list and unit orices. 0 A04 1 Sheltered Aisle shipping 33,318 Transportation of the Sheltered aisle outdoor enclosure to Vero Beach, FL 0 'A05 1 Sheltered Aisle 113,185 Major Resale ­ 0 A06 1 !NCO-Terms 2010 (CPT Carriage Paid To) 5,865 Transportation of MV SWG from San Luis Potosi, to Vero Beach, FL Total Net Price, US$ 387,241 ABB has carefully reviewed the provided specifications and drawings during the preparation of this proposal: however, items not explicitly stated in the attached Bill of Material are neither provided nor implied. ABB Order Acceptance Procedure: ABB will review the PO documents for conformance to the ABB quotation. Once mutually agreeable contract terms are reached, a contract start date will be established. All quoted lead-times will be based on this agreed contract start date. To expedite order acceptance, please provide the following information on your purchase order documents: .. Reference to ABB CCP #: 1603184601 - Vero Beach-Substation 7 and revision level. " List items numbers included in the commercial offering by copying the item list & pricing information.
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