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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Award of Contract to Transfluid Services, Inc. to Furnish Materials, Equipment, and Labor for Testing Transformer, Load Tap Changer, Regulator, and Circuit Breaker Oil
1. Motion authorizing the City Manager, or his designee, to enter into and execute a three-year contract with Transfluid Services, Inc., to furnish materials, equipment, and labor for Testing Transformer, Load Tap Changer, Regulator, and Circuit Breaker Oil for GWP (Specification No. 4013), in the amount of $124,040 plus a ten percent (10%) contingency of $12,404 per year, for three years for a total contract amount of $372,120 and contingency amount of $37,212, with the City’s option to renew the contract for two one-year terms at a three percent (3%) escalation for both years, equaling $127,762 and with a ten percent (10%) contingency equaling $12,776 per renewal year, for a total two-year renewal amount of $255,524 and contingency amount of $25,552.
COUNCIL ACTION
Item Type: Consent Calendar
Approved for June 9, 2026 calendar
EXECUTIVE SUMMARY
Due to the expertise and sophisticated equipment needed, as well as the critical nature of regularly monitoring the oil of transformers, load tap changers, regulators, and circuit breakers, it is necessary to have a contractor on board to perform oil testing.
To sustain our aging equipment, it is important to have a capable contractor that can assess the current state of our equipment and assist in determining plans of action to remedy any issues that may be present in order to maintain power system reliability.
RECOMMENDATION
Authorize the City Manager to execute a three-year contract with Transfluid Services, to furnish materials, equipment, and labor for testing transformer, load tap changer, regulator, and circuit breaker oil in the amount of $124,040, plus a ten percent contingency in the amount of $12,404 each year for the three-year term, and allow a renewal option for a fourth and fifth year with a three percent escalation for both years, equaling $127,762 and ten percent contingency equaling $12,776 per renewal year.
ANALYSIS
GWP’s commitment to providing reliable and trusted service to its customers includes annual testing of transformer, load tap changer, regulator, and circuit breaker oil as part of its ongoing maintenance of electric substation assets. 25b
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GWP must continually monitor the condition of its oil-immersed electrical equipment to meet this commitment. Oil testing is a standard industry practice to effectively accomplish this task. Oil testing includes taking necessary oil samples from transformers, load tap changers, regulators, and oil circuit breakers, and analyzing these samples for Dissolved Gasses; Total Combustible Gasses; Moisture Content; Interfacial Tension; Acidity; Color; Specific Gravity; Dielectric Breakdown Voltage; Polychlorinated Biphenyls (PCB), and other characteristics. A high degree of specific expertise is needed to perform this type of work. Specification No. 4013 solicited qualified contractors to perform these tasks as part of GWP’s overall annual maintenance program.
On January 13, 2026, City Council approved Resolution 26-06 to adopt Specification No. 4013 and directed the City Clerk to advertise for bids for a three-year contract with the possibility of renewing for a fourth and fifth year. After two weeks of the bid being posted in the Glendale Independent newspaper and the City of Glendale website, a mandatory pre-bid conference was held virtually with three prospective bidders attending. On March 31, 2026 the bidding period was closed.
Only one bid was submitted for this specification by Transfluid Services, Inc., for an amount of $124,040 per year. Staff evaluated the bid based on price, mandatory qualifications, and competency of the bidder, and found it to be responsive and close to the estimated cost of $120,000.
The cost of the service contract with Transfluid Services for testing transformer, load tap changer, regulator, and circuit breaker oil, Specification No. 4013, is $124,040 annually, plus a ten percent (10%) contingency in the amount of $12,404 per year, for a total annual amount of $136,444. The total contract amount for the initial three-year term is $372,120, plus a total contingency amount of $37,212, for a combined total of $409,332.
If the contract is renewed for the fourth and fifth years, the contractor shall be entitled to a not-to-exceed increase of three percent of the base bid amount for each renewal year.
Accordingly, the annual not-to-exceed amount for Years 4 and 5 will be $127,762, plus a ten percent contingency of $12,776, for a total annual amount of $140,538 for each renewal year. Therefore, the total not-to-exceed amount for the two-year renewal term will be $255,524, plus a contingency amount of $25,552, for a combined total of $281,076. The contract cost breakdown is shown in the table below.
Contract Term Renewal Term (3% Escalation)
Year 1 Year 2 Year 3 Year 4 Year 5
Base Bid
Amount
$124,040 $124,040 $124,040 $127,762 $127,762
Contingency
(10%)
$12,404 $12,404 $12,404 $12,776 $12,776
Total Yearly
Bid Amount
$136,444 $136,444 $136,444 $140,538 $140,538
Term
Subtotal
$409,332 $281,076
Final Amount
with Renewal
$690,408
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STAKEHOLDERS / OUTREACH
Not applicable.
FISCAL IMPACT
The total cost of the contract in FY 2026-27 is $124,040, which is included in the proposed FY 2026–27 budget, as outlined below. Appropriations for the remaining fiscal years will be requested through the annual budget process. No new appropriation is being requested at this time.
Proposed FY 2026-27 Appropriation
Amount Account String Funding Source
$124,040 GL: 43110-5820-GWP-4650-P0000-
T0000-F1580
Electric Works Revenue
Fund
Department Cost Center Program
Glendale Water
and Power
Electric Station Maintenance
ENVIRONMENTAL REVIEW
This project is categorically exempt under California Environmental Quality Act (CEQA) Section 15301(b), for the operation, repair, and maintenance of existing facilities.
CAMPAIGN DISCLOSURE
In accordance with the City Campaign Finance Ordinance No. 5744, the following are the names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors, and any person or entity with more than ten percent (10%) interest in the company proposed for contract in this agenda item report:
Officers of Transfluid Services, Inc.
Full Name Title Business Address City State Zip
Scott
MacEachern
Chief Executive
Officer/President
20405 State Highway
249, Suite 150
Houston TX 77070
Nancy Walsh Chief Financial
Officer
20405 State Highway
249, Suite 150
Houston TX 77070
ALTERNATIVES TO STAFF RECOMMENDATION
Choose not to authorize the recommended action herein, which will increase the City’s exposure to potential power outages due to unknown conditions of aging equipment, which could likely result in equipment failures within the GWP electric grid. 45b
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ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager, Glendale Water and Power Prepared by:
Hovsep Barkhordarian, P.E., Electrical Engineering Manager Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS / ATTACHMENTS
None.