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W A T E R E N E R G Y L I F E - RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 23, 2015 ITEM NO: 6 SUBJECT: PURCHASE OF STEEL POLES FOR THE FIRST PHASE OF THE 69 KV PORTION OF THE RIVERSIDE TRANSMISSION RELIABILITY PROJECT - REQUEST FOR PROPOSAL NO. 1466 -WORK ORDER NO. 642975 ISSUE: The issue for Board of Public Utilities consideration is award of a purchase order for request for proposal (RFP) No. 1466 for the purchase of steel poles for the Riverside Transmission Reliability Project. RECOMMENDATIONS: That the Board of Public Utilities: 1. Award a purchase order for RFP 1466 in the amount of $1,314,317 to TransAmerican Power Products, Inc. (TAPP), of Houston, Texas for 68 steel poles and components as part of the Riverside Transmission Reliability Project (RTRP); and 2. Authorize staff to Issue change orders in an amount up to 15% {$197,148} of the original contract amount to cover storage costs and contingencies. BACKGROUND: The Riverside Transmission Reliability Project (RTRP) is a joint project with Southern California Edison (SCE) and provides Riverside Public Utilities (RPU) with a second connection to the state electric transmission grid to address long-term capacity and reliability needs of the City's electric utility system. SCE's portion of the project includes construction of approximately 10 miles of double-circuit 230kV transmission lines and a 230kV switchyard. RPU's portion of the project includes the installation of approximately 10 miles of fig kV sub-transmission lines, installation of a new substation, improvements to five existing substations, relocation of existing distribution lines and installation of new telecommunication lines. The total approved funding for the RTRP Work Order No. 642975 is currently $42,605,521. The purchase of steel poles, arms and anchor bolt cages for RTRP is covered under Section 602 of Purchasing Resolution No. 22576. Section 602 specifies specialized equipment that is particular to the needs of the City's Public Utilities Department and provides for acquisition by Open Market Procurement if it appears to the Purchasing Services Manager to be in the best interest of the City. Open Market Procurement allows the City to issue requests for quotations instead of bids, meaning that the City can select based upon qualifications and pricing, not just low bid. The Purchasing Services Manager made such determination in this case. The procurement of fib steel poles, arms and anchor bolt cages is required to complete the first phase of the 69kV sub-transmission lines of the RTRP. Staff issued RFP 1466 on July 24, 2014 via Open Market Procurement. Five vendors submitted proposals. RPU staff and the primary project consultant, Power Engineers, reviewed the proposals and deemed TAPP to be the lowest responsive and responsible proposer, ISO 9001 certification was a