RETURN BIDS TO: CITY OF TACOMA BID PROPOSAL PAGE BID NO.: PG15-0152N

PURCHASING DIVISION BUYER: Chuck Blankenship Tacoma Public Utilities Building North PHONE: 253-502-8163

3628 South 35th St. FAX: 253-502-8372 Tacoma, WA 98409 DATE: March 3, 2015

SURPLUS PROPERTY SALE

BIDS will be received until 11:00 a.m., Wednesday, March 18, 2015

FOR: Purchase of items listed below. Weights and quantities are estimated. Items will be sold as-is and where-is, and in accordance with instructions attached hereto. Freight costs and arrangements are the responsibility of the bidder. Bids must be submitted on this form. LOCATION OF SURPLUS PROPERTY:

See Details Below

VIEWING CONTACT:

Jeromy Adams: 253-502-8300

QUANTITY DESCRIPTION UNIT PRICE TOTAL

ALL PRICES QUOTED SHALL BE F.O.B. ORIGIN 1 LOT CUSHMAN and CUSTER SUBSTATION

TRANSFORMERS XXXXXX LOT $____________

Is the transformer being purchased for:

Scrap Re-use Sub-Total: $____________ Sales Tax: $____________ Is the transformer being dismantled to allow for shipping:

Yes No Grand Total: $____________ * SOLD AS IS - WHERE IS * This Sale May be Subject to Council or Utility Board Approval

GOOD FAITH DEPOSIT: Find attached deposit in the form of Certified or Cashier's check in an amount not less than five (5) percent of the total bid (cash not accepted). Check No.: N/A Date: N/A Amount: N/A

Bidder certifies that this purchase is for resale in the regular course of business, or is to be used as an ingredient or component part of a new article of tangible personal property to be produced for sale, or is a chemical to be used in processing an article to be produced for sale.

Resale No.:

Signed:

(Authorized Signature as required) If not applicable, Washington State sales tax will apply and will be added to the bid amount.

The Undersigned hereby agrees to purchase any or all items described above in accordance with conditions and instructions contained in this bid call: Bidder:

Phone:

Address:

City/State/Zip:

Printed Name/Title

Fax:

Signed:

Date:

Email: ______________________________________________________________________

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Bid Submittal Check Sheet Your bid proposal must be received in the Purchasing Division by 11:00 a.m., Wednesday, March 18, 2015. Faxed bid submittals are acceptable. The following items make up your bid submittal package:

1. Signed Bid Proposal Page 2. Transformer dismantling information (provide on your own form) 3. Provide a brief work plan (provide on your own form) 4. Summary of PCB management procedures (provide on your own form) 5. Any additional information required in specification

Failure to comply may result in your bid being declared non-responsive and rejected. Documents required after award: Payment Proof of Insurance Hold Harmless Form Detailed Work Plan, if applicable

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CITY OF TACOMA GENERAL INSTRUCTIONS FOR BIDDING ON SURPLUS PROPERTY

Submittal Information Bids must be delivered to the office designated on the Bid Proposal Page, on or before the time mentioned thereon. Any bid received after the established opening time will not be considered, and will be returned to the bidder unopened. Faxed bid submittals are acceptable. When specified by the City, bids must be accompanied by a Certified or Cashier's check as a bid and performance guarantee (good faith deposit) in an amount not less than five percent (5%) of the amount of the bid, made payable to "Treasurer, City of Tacoma." Cash will not be accepted. Deposit checks will be returned to unsuccessful bidders after award of the bid to the successful bidder. The deposit of successful bidder shall be applied to the purchase price. If the successful bidder fails to consummate the purchase, such deposit shall be forfeited as liquidated damages to the City of Tacoma. Bids must be valid for a minimum of 30 days after the opening date. Bidders may inspect the items offered for sale at the location indicated on the attached form. The City reserves the right to reject any or all bids received, to award any or all of the various items to separate bidders, to waive any informalities in the bids, and to award as best serves the interest of the City. Disclaimer of Warranty All items are sold AS-IS and WHERE-IS, with all faults. The Seller makes no warranty, express or implied with respect to the condition of the goods. SELLER SPECIFICALLY DISCLAIMS ANY AND ALL UCC WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Quantities/Payment Unless otherwise indicated, quantities and/or weights are estimates only. Buyer shall not be entitled to any price adjustment in the event of variance in the estimated quantity. The total sale amount will be based on the unit prices quoted and the total quantity or weight as determined by scale weight at the time material is picked up. Within one week from date of notification of award, the successful bidder must make payment in full for all items awarded. Payment for metals or other items that must be weighed shall be based on the estimated quantities as shown in the bid call, with final payment adjustment to be made based on actual weights picked up as ascertained by the scale tickets. All payments are to be by Certified or Cashier's check, made payable to "Treasurer, City of Tacoma." Any material, equipment or other items bid upon must be removed by the successful bidder within thirty calendar days from date of notification of award, unless stated otherwise under special instructions. Material bid on may be added to by like material through normal course of operation of the City of Tacoma between the time of the bid opening and the time the salvage is picked up. However, all material in any designated bin or location must be removed during the normal course of pick-up by the successful bidder. The successful bidder will be required to pay Washington State sales tax, unless he/she is a qualified dealer, in which case he/she must furnish his/her resale number, as indicated on the bid form. Hazardous/Toxic Substances The Buyer shall abide by all local, state and federal laws and regulations pertaining to the use, transport, handling, reclamation, and disposal of hazardous or toxic substances, including but not limited to the following: The Toxic Substance Control Act; the Resource Conservation and Recovery Act; the Comprehensive Environmental Response, Compensation and Liability Act; the Hazardous Materials Transportation Act; the Hazardous Waste Management Act; the Occupational Safety and Health Act; and the Washington Industrial Safety and Health Act. Indemnification - Hold Harmless Purchaser acknowledges that pursuant to the terms of this agreement, Purchaser is totally responsible for the safety of all persons and property in the performance of this contract. Purchaser assumes the risk of all damages, loss, cost, penalties and expense and agrees to indemnify, defend and hold harmless the City of Tacoma, from and against any and all liability which may accrue to or be sustained by the City of Tacoma on account of any claim, suit or legal action made or brought against the City of Tacoma for the death of or injury to persons (including Purchaser's or subcontractor's employees) or damage to property involving Purchaser, or subcontractor(s) and their employees or agents, or for any other cause arising out of and in connection with or incident to the performance of the contract except for injuries or damages caused by the sole negligence of the City. In this regard, Purchaser recognizes that Purchaser is waiving immunity under Industrial Insurance Law, Title 51 RCW. This

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General Information and Technical Information Surplus Cushman and Custer Substation Transformers

Specification No.: PG15-0152N Scope of Bid Tacoma Public Utilities (TPU), Tacoma Power, is soliciting bids for the sale of four (4) surplus Substation Transformers known as Cushman and Custer Substation Transformers. These items will be sold as one lot. Pricing Prices shall be FOB origin, AS-IS WHERE-IS. The “Lot” bid price shall be full and complete compensation for the four surplus substation transformers. Any and all costs associated with moving the transformers shall be borne by the awarded bidder. Cost to Prepare Proposal Tacoma Power will not be liable for any cost incurred by the Bidder in preparation of a bid proposal submitted in response to this Request for Bids. Bid Evaluation Criteria The contract will be awarded to the highest responsive, responsible bidder complying with the specifications, provided such bid is reasonable and it is in the best interest of Tacoma Power. All other elements or factors, which are not specifically provided for in the contract, which would affect the final cost to and benefits to be derived by TPU, will be considered in determining the award of this contract. The final award decision will be based on the best interests of Tacoma Power Pick-Up Pick-up shall be FOB origin, AS-IS/WHERE-IS. No surcharge will be allowed. Awarded vendor is responsible for all costs related to moving the transformers. Payment Payment, including Washington State Sales Tax (if applicable), must be received prior to moving the transformers from Tacoma Power’s property. All payments must be paid to Tacoma Power within ten (10) business days from notification of award. Payments shall be in the form of a certified or cashier’s check. Insurance Vendor is required to provide and keep current insurance per City of Tacoma requirements. Work Plan Bidder is to provide a brief work plan with their bid submittal that includes general information about their process for removing the transformers, including bushing removal/delivery to the transformer shop for draining, general process for dismantling the transformers and, expected schedule (including weekend and overtime work), for Tacoma Power planning needs and general process for preventing oil spills. Please provide this information on your own forms

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PCB Management Procedures Some of the equipment in this offering contains low level PCBs (<50 ppm). All equipment containing >2 ppm PCB must be managed in accordance with federal rules, regulations, and requirements for 50-499 ppm PCBs per Washington State regulations. Bidders must submit a summary of their standard PCB management procedures with their bids. Please provide this information on your own forms. PCB management procedures that are determined to be inadequate by Tacoma Power may be grounds for bid dismissal. Contact Jeromy Adams at 253-502-8300 if you have any questions about this requirement.

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TACOMA POWER

SUBSTATION EQUIPMENT SURPLUS

Custer and Cushman No. 1 Substation Transformers

All transformers and equipment are available as is, where is. All equipment will be drained of insulating oil by Tacoma Power; however, residual oil will be present and should be anticipated by the bidder. The currently available equipment is a single 20 MVA transformer that weighs approximately 77,400 pounds, without oil located at the Custer substation and three single phase 8 MVA transformers that weigh approximately 85,000 pounds without oil located at the Cushman Switchyard substation. The oil will be removed from all equipment just prior to the availability date. No onsite demolition will be allowed, however, it is anticipated that the transformers may need to be partially dismantled to allow transport. All work must be completed within the allowed time frames. The bidder MUST indicate in their bid if any part of the equipment will be removed or dismantled to allow shipping of the equipment. They MUST clearly identify the type of work to be performed and include plans to perform the work and prevent any loss of oil or other contaminants to the substation soils. Any failure to supply the requested information may result in bid disqualification.

It is assumed that all equipment will be reused or scrapped for metals recovery/recycling. The PCB content of all equipment, except for fluid filled bushings, is known to be 3.9 parts per million (ppm) or less and is listed on the attached inventories. The bidder MUST indicate on their proposal whether the equipment will be scrapped or if it is intended for reuse. The successful bidder will remove the bushings from all equipment that is scheduled to be scrapped and transport the bushings in leak proof containers to the Tacoma Power Transformer Shop located at 3628 So. 35th St., Tacoma, WA 98409. The Transformer Shop will require 24 hours notice to ensure that personnel and equipment will be available. The bushings will be off-loaded by Tacoma Power, tested for PCB level, and drained of all fluids. Bushings with PCB levels greater than 45 ppm will be retained by Tacoma Power for proper PCB disposal. Bushings containing 45 ppm PCB or less will be picked up by the bidder within two weeks of notification of availability. Bushings on equipment intended for reuse will not be tested or drained by Tacoma Power.

The equipment is located at the following location(s):

Custer Substation Transformer

8315 Terrace Rd SW

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Lakewood, WA 98498

Drawings showing the transformer dimensions and locations in the substation, and nameplate of the transformer are attached to this document. Please contact Jeromy Adams if any additional information is needed.

The Custer substation transformer must be removed from the facility according to the schedule described below.

Special Conditions – Custer Substation Transformer

Schedule:

The transformer is anticipated to be available starting April 1, 2015. The timing for removal of the transformer is critical to allow for site work and replacement of the transformer according to Tacoma Power’s schedule. The anticipated transformer availability schedule is listed above; however, the schedules may shift depending on Tacoma Power’s needs. The contractor will be provided two weeks’ notice of the availability of the transformer. On that day the transformer will be drained of oil and available for removal. The contractor will be allowed two working days to remove the transformer from the substation. If the availability of the transformer is delayed, 2 full days will still be available for removal.

Cushman Substation Transformer

N391 STANDSTILL DR. S.

HOODSPORT, WA.

Drawings showing the transformer dimensions and locations in the substation, and nameplate of the transformer are attached to this document. Please contact Jeromy Adams if any additional information is needed.

The Cushman substation transformers must be removed from the facility according to the schedule described below.

Schedule:

The transformers are anticipated to be available approximately June 1st, 2015. The timing for removal of these transformers is somewhat delicate and may be adjusted slightly as necessary. The schedules may shift depending on Tacoma Power’s needs. The contractor will be provided two weeks’ notice of the availability of these transformers. On that day the transformer will be drained of oil and available for

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removal. The contractor will be allowed two working days to remove the transformer from the substation. If the availability of the transformer is delayed, 2 full days will still be available for removal.

All equipment may be examined prior to the bid deadline. Contact Jeromy Adams at 253-502-8300 to arrange a visit or for any other questions regarding this offering.

All work in the substations or on Tacoma Power property will be attended by a qualified Tacoma Power electrician as required by state electrical safety regulations. Tacoma Power will supply a qualified electrician between the hours of 8 am to 12 pm and 12:30 pm to 4:30 pm for 2 normal work days for each substation transformer at no charge to the contractor. The contractor may arrange for additional hours at their own expense according to the cost schedule listed below. The contractor must provide at least 24 hours notice of any schedule extension beyond the times listed above.

All additional work, including normal lunch periods, extended work days, and weekends, will be the responsibility of the contractor at the following rates:

Cost for on-site supervision:

$97 per hour for weekdays between 8 am to 12 pm and 12:30 pm to 4:30 pm, not including ½ hour for lunch between noon and 12:30 pm.

$155/hour for all additional overtime and lunch periods worked by the on-site supervising electrician.

If the contractor fails to complete equipment removal from the station by the end of the allowed time, they will not be allowed into the substation and all remaining electrical equipment will be forfeit in the interest of preparing the site for necessary construction. There will be no refunds for failure to meet this schedule.

Training:

Prior to entering the substations, all workers are required to receive mandatory substation safety training provided by Tacoma Power. This includes transient workers such as truck and rental delivery drivers. The training is provided at no cost during regular work hours and takes between 1 – 1 ½ hours. The contractor must notify Tacoma Power at least 48 hours in advance of any requested training.

Oil Spill Prevention:

Washington state environmental regulations require the reporting and cleanup of all oil spills, even very small spills. The contractor will not be allowed to spill any oil during removal of the transformer. This includes oil from the transformer and equipment used during the removal process, including hydraulic systems. Oil contaminated materials will not be allowed to be placed on unprotected soils and the contractor must be prepared for all weather conditions. Work practices that are considered unsafe or likely to result in oil contamination will be stopped by the Tacoma Power supervisor until deficiencies

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are corrected. No additional removal time will be allowed for work stopped due to improper practices. All oil spilled will be remediated to state and Tacoma Power standards at the contractor’s cost.

Work Plan:

The contractor must supply a brief work plan with their bid that includes general information about their process for removing the equipment including bushing removal/delivery to the transformer shop, general process for dismantling the equipment, expected schedule (including weekend and overtime work) for Tacoma Power planning needs, and the general process for preventing oil spills.

The bidder with the highest acceptable bid will be notified and must supply a detailed work plan within 7 days. The specific requirements for the work plan will be detailed by Tacoma Power when the notification is made. A detailed work plan may not be necessary depending on the plan submitted with the bid. Failure to supply an acceptable work plan within 7 days may be grounds to reject the bid.

Safety:

The contractor must abide by all safety regulations while working on Tacoma Power property. Special attention includes, but is not limited to, fall protection, confined space entry, and lead exposure for work on the equipment. All high voltage power lines located near the equipment will be de-energized and there should be enough clearance to place a crane to lift the equipment for loading/size reduction purposes. The contractor must maintain proper clearance, as directed by the on-site safety watch, from all energized lines.

Every Tacoma Power employee is acutely aware of safe operating practices and is authorized to stop any work they consider to be unsafe. The contractor will abide by any direction to stop work for safety reasons upon notice by any Tacoma Power employee. The contractor will immediately correct any condition or practice determined to be unsafe. No time extension will be allowed for work stoppage due to unsafe work practices.

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APPENDICES:

1. Standard Insurance Requirements 2. Hold Harmless Form

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INSURANCE CERTIFICATE REQUIREMENTS Please furnish the Purchasing Division with a Certificate of Insurance with the following liability limits based on the contract amount:

CONTRACT AMOUNT LIABILITY LIMITS $ 25,000 and Under $ 500,000 Combined Single Limit $500,000 and Under $1,000,000 Per Occurrence / $2,000,000 Aggregate Over $500,000 $5,000,000 Total Coverage

A. Umbrella excess liability may be used to reach the limits stated above. Coverage must

include: 1. Comprehensive General Liability 2. Automobile Liability - Hired and Non-Owned 3. Contractual Coverage 4. Broad Form Property Damage 5. Underground Explosion and Collapse Hazard (if necessary by the nature of the work) 6. Any additional coverage specifically required by the City's specification

B. The following general requirements apply:

1. Insurance carrier must be authorized to do business in the State of Washington. 2. Coverage must include personal injury, protective and employer liability. 3. Contractor must provide with the certificate (a) evidence of the amount of any deductible or

self-insured retention under the policy, and (b) policy endorsement(s) that verify compliance with the additional insured and the primary/non-contributory requirements specified in Section C. 1 and C. 2. below.

4. It is the contractor's responsibility to keep an up-to-date Certificate of Insurance on file with the City throughout the contract.

5. Contractor’s insurance must be primary and non-contributory over any insurance the City may maintain, that is, any such City insurance shall be excess to limits stated in the certificate.

C. The following statements are required on the Certificate of Insurance:

1. "The City of Tacoma is named as an additional insured" ("as respects a specific contract" or "for any and all work performed with the City" may be included in this statement).

2. "This insurance is primary and non-contributory over any insurance or self-insurance the City may have" ("as respects a specific contract" or "for any and all work performed with the City" may be included in this statement).

3. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out. See example below.

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS The below listed certificated holder is added as an additional insured as respects any and all work performed with the City (or as respects project _________). This insurance is primary over any insurance or self-insurance the City may have for any and all work performed with the City (or as respects project _________ ).

CERTIFICATE HOLDER ADDITIONAL INSURED; INSURER LETTER:______ CANCELLATION

CITY OF TACOMA PO BOX 11007

TACOMA WA 98411-0007

“Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will endeavor to mail 30 days written notice to the certificate holder named to the left, but failure to do so shall impose no obligation or liability of any kind upon the company, it’s agents or representatives.”

Insurance-Standard Revised 04/24/12

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CITY OF TACOMA

SURPLUS PROPERTY DISPOSAL/SPECIFICATION NO. PG15-0152N FROM (Dept): Tacoma Power TO (Purchaser/Recipient):

Indemnification--Hold Harmless Purchaser/Recipient acknowledges that pursuant to the terms of this agreement, Purchaser/Recipient is totally responsible for the safety of all persons and property in the performance of this contract. Purchaser/Recipient assumes the risk of all damages, loss, cost, penalties and expense and agrees to indemnify, defend and hold harmless the City of Tacoma, from and against any and all liability which may accrue to or be sustained by the City of Tacoma on account of any claim, suit or legal action made or brought against the City of Tacoma for the death of or injury to persons (including Purchaser/Recipient’s or subcontractor’s employees) or damage to property involving Purchaser/Recipient, or subcontractor(s) and their employees or agents, or for any other cause arising out of and in connection with or incident to the performance of the contract except for injuries or damages caused by the sole negligence of the City. In this regard, Purchaser/Recipient recognizes that Purchaser/Recipient is waiving immunity under Industrial Insurance Law, Title 51 RCW. This indemnification extends to the officials, officers and employees of the City and also includes attorney’s fees and the cost of establishing the right to indemnification thereunder in favor of the City of Tacoma. ITEM: (1) Lot – Custer and Cushman Substation Transformers $ PURCHASER/RECIPIENT: ADDRESS: CITY & STATE: ZIP CODE PHONE: NAME: DATE: SIGNATURE: All items are sold/donated/salvaged AS-IS and WHERE-IS, with all faults. Freight costs and arrangements are the responsibility of the bidder. The City of Tacoma makes no warranty, express or implied, with respect to the condition of the goods. The City of Tacoma specifically DISCLAIMS ANY AND ALL UCC WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

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