PHOTO BY JOHN FRYMAN / THE VILLAGE REPORTER
PURCHASE APPROVED … The Bryan Board of Public Affairs met in a regular session on Tuesday, June 30. Pictured above, from left, are BPA board members Karen Ford and Annette Schreiner and Director of Utilities Derek Schultz. The board approved the purchase of two transformers for the Lorntz Substation.
By: John Fryman
THE VILLAGE REPORTER
john@thevillagereporter.com
The Bryan Board of Public Affairs met in regular session on Tuesday, June 30. Board members present were Karen Ford, Annette Schreiner, Brian Davis, and Debra Beevers. Jeremy Suffel was absent but was excused from the meeting.
Following the Pledge of Allegiance, the board approved the June 2 meeting minutes and the clerk-treasurer report from John Lehner.
The board authorized Director of Utilities Derek Schultz to enter into an agreement with Virginia Transformer Corporation for the purchase of two transformers for the Lorntz Substation at a cost of $5,556,000. The engineer’s estimate was $6.6 million.
The purchase is part of a multi-year capital improvement project with additional expenses coming later in upgrades.
Besides the two transformers, the price tag also includes associated delivery, assembly, and short circuit testing costs.
“It’s one part of the Lorntz Substation upgrade project,” said Schultz. “As you recall, we received authorization to advertise for bids for the transformers.”
Schultz told board members the BMU has retained Entrust Solutions Group as an engineering consultant to assist with the development, the specs and the bid documents, and helped BMU with the proposals submitted.
“Each proposal was looked at in technical compliance, performance, life cycle costs and ownership as well,” Schultz said.
There were four bids submitted ranging in price from $2.47 million to $3.39 million per transformer.
Schultz had some conversations with Virginia Transformer Corporation agreeing to revised payment terms with an initial down payment of 10% of the base value of the transformers, which will cost BMU $494,000 and anticipated to be paid in July.
“We were able to have some conversations and negotiate the payment terms a little bit to align with what our budget for this year looked like,” said Schultz.
He said BMU will pay 10% of the base bid cost, which was $4.9 million this year. That comes to $494,000 and that payment will be this month from the electric capital improvement budget.
In February, another 40% will be paid, followed by another 40% in August of next year based on the delivery schedule. The final 10% will be due 60 days after delivery.
The board later gave Schultz approval to begin researching finance options through AMP, Inc.
Bryan Power Plant Superintendent Jim Coressel told board members the new transformers will be able to handle double the load of the current ones.
“They will give Bryan capacity for years to come, no matter what happens in any industrial park or anything,” said Coressel.
Coressel said the transformers will run in tandem, but if something should happen and one needs to be taken offline, the other one, under current situations, would allow for continued service to the city.
Schultz estimated it will cost an additional $600,000 for upgrades to the system, such as breakers and relays, as well as another $625,000 for civil construction work, if necessary to improve the site foundations.
“We intend to cash fund that part of the project,” Schultz said regarding both upgrades.
The board approved participation in a cooperative purchasing agreement with NASPO ValuePoint Master Service, which is a national cooperative purchasing contract providing governmental entities access to wireless communication services, mobile devices, data plans and related equipment with pre-negotiated pricing and terms with Cellco Partnership doing business as Verizon Wireless.
It will allow BMU to utilize the established contract pricing for said wireless communication needs, resulting in cost savings and procurement efficiencies.
The BPA learned that repairs will be needed to a filter at the water treatment plant. Project costs are $100,000, but cost estimates are still being gathered.
Also, the board discussed a water main break on South Main Street that occurred on Sunday, June 28.
Schultz noted that three BMU employees, Noah Landel, J.J. Rupp, and Rayner Clemens, assisted other electrical crews through AMP Ohio Mutual Aid Assistance to help with the recent storm damage in Celina, Ohio, on June 12-14.
Due to the change of the meeting schedule beginning in July, the BPA will next meet on Monday, July 13 at 5 p.m. They will now be meeting on the second and fourth Mondays of the month.
