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RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: August 20, 2010 ITEM NO: 9 SUBJECT: HUNTER SUBSTATION EQUIPMENT UPGRADES AND AWARD OF PURCHASE ORDERS WORK ORDER NO. 1023119 ISSUE: Board of Public Utilities approval is requested for Work Order No. 1023119 and award of purchase orders for the relay and automation panels and vacuum circuit breakers. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the estimated capital expenditure of $1,600,000 to upgrade equipment at Hunter Substation; 2. Approve the award of purchase order for relay and automation panels from Crown Technical Systems of Fontana, California in the amount of$225,630 including sales tax, and; 3. Approve the award of purchase order for 12 kV vacuum circuit breakers from Eaton Corporation, of Diamond Bar, California in the amount of$136,645 including sales tax. BACKGROUND: Hunter Substation, located at 1731 Marlborough Avenue, was built in the 1950's. The original equipment, such as the 69 kV protection relaying and 12kV power circuit breakers are in need of replacement due to their age and high maintenance cost. The power circuit breaker operating mechanisms are not manufactured anymore and spare parts are difficult to acquire. An equipment failure could lead to extended and wide- spread outages. These upgrades would increase reliability and reduce maintenance costs, which were identified in the Electric System Master Plan and are therefore recommended for replacement. Maintenance costs of the breakers and the relays are about$10,000 per unit on a three year cycle and there are 14 planned to be replaced with this project. For the new equipment,manufacturer specifications allow for up to 10 years before maintenance is to be performed. There is an expected savings of at least$400,000 in maintenance costs over the first 10 years of ownership. Engineering and design will be completed by consultants. Construction work and project managementwi11 be performed by Riverside Public Utilities Energy Delivery staff. Section 602 of the Purchasing Resolution (No. 21182) provides for a utilities exception which allows for the acquisition of specific items listed by Open Market Procurement, if it appears to be in the best interest of the City due to overall economy and efficiency. This type of procurement allows staff to directly contact certain vendors to request quotations for specific equipment in lieu of formal advertisement of the procurement. Four proposals were received for relay and automation panels. Crown Technical Systems located in Fontana is the lowest responsive evaluated proposer.