09-19-2014 BPU RPT 03 - Laserfiche WebLink

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W A t E R E N E R G Y i I I r RIVERSIDE PUBLIC UTILITIES kimW& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 19, 2014 ITEM NO: 3 SUBJECT: APPROVAL OF WORK ORDER NO. 1502504 AND PURCHASE OF 69 KV CIRCUIT BREAKERS FOR THE RIVERSIDE SUBSTATION BAY 4 BREAKER REPLACEMENT PROJECT ISSUE: The items for Board of Public Utilities consideration are: 1) approval of Work Order No. 1502504 and; 2) approval to purchase three 69 kV circuit breakers for the Riverside Substation Bay 4 Breaker Replacement Project. RECOMMENDATIONS: That the Board of Public Utilities: Approve Work Order No. 1502504 in the amount of $382,351; and 2. Approve the award of a Purchase Order in the amount of $140,142 to McAvoy & Markham Engineering and Sales Co. of Irvine, California, for three 69 kV circuit breakers and associated equipment for the Riverside Substation Bay 4 Breaker Replacement Project. BACKGROUND: Riverside Public Utilities' (RPU) Electric System Master Plan recommended replacing all 69 kV oil circuit breakers and older gas circuit breakers with new generation gas breakers. RPU is actively replacing these breakers along with older substation equipment that is reaching the end of its useful life as part of RPU's routine maintenance programs and substation upgrade projects. One oil circuit breaker and two older gas circuit breakers at Riverside Substation have been identified for replacement. These breakers require significantly more maintenance compared to current generation gas breakers. Replacing the breakers with the newer generation gas breakers will reduce safety and environmental risks at Riverside Substation, reduce maintenance costs, and improve electric reliability. Alstom's 69 kV circuit breakers have been the standard equipment for RPU's substations since 2009 and have performed well. The standardization of substation equipment minimizes staff training requirements, limits the amount of stocked spare parts, and reduces maintenance costs. McAvoy & Markham Engineering and Sales Co., previously supplied the Alstom breakers and has agreed to honor their pricing from the original 2009 purchase agreement. Section 201 (G) of the City's Purchasing Resolution No. 22576 provides that formal procurement is not required where the goods can be obtained at the same price from a contractor who previously was the lowest responsible bidder under a competitive procurement and the City's Purchasing Services Manager concurs. Here, the City's Purchasing Services Manager concurs that this procurement exception applies and has determined that it is in the best interest of the City to contract with McAvoy & Markham Engineering and Sales Co., for the procurement of three 69kV circuit breakers and associated equipment.