10-03-2014 BPU RPT 09 - Laserfiche WebLink

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WATER 1 ENERGY L I F E P U B L I C 111.1.2 UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: OCTOBER 3, 2014 ITEM NO: 9 SUBJECT: APPROVAL OF WORK ORDER NO. 1504019 AND PURCHASE OF 69 KV CIRCUIT BREAKERS FOR THE FREEMAN SUBSTATION BREAKER REPLACEMENT PROJECT ISSUES: The items for Board of Public Utilities consideration are: 1) approval of Work Order No.1504019; and 2) approval to purchase five 69 kV circuit breakers for the Freeman Substation Breaker Replacement Project. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve Work Order No. 1504019 in the amount of $641,121; and 2. Approve the award of a Purchase Order in the amount of $251,121.60 to McAvoy & Markham Engineering and Sales Co. of Irvine, California, for five 69 kV circuit breakers and associated equipment for the Freeman Substation Breaker Replacement Project. BACKGROUND: Riverside Public Utilities' (RPU) Electric System Master Plan recommends replacing all 69 kV oil circuit breakers and older generation gas circuit breakers with new generation gas breakers. RPU is actively replacing the breakers noted above 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. Four oil circuit breakers and one older generation gas circuit breaker at Freeman Substation have been identified for replacement. The breakers are requiring significantly more maintenance compared to the newer generation gas breakers. Replacing the breakers with the newer generation gas breakers will reduce safety and environmental risks at Freeman 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. 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 five 69 kV circuit breakers and associated equipment.