05-23-2016 BPU RPT 18 - Laserfiche WebLink

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W A T E R F N F R (, Y CITY Oi RiVER$IDE lag P U B L I C U T I L I T I E S RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: MAY 23, 2016 ITEM NO: 18 File 16 -1586 SUBJECT: APPROVAL OF WORK ORDER NO. 1514752 FOR $2,198,993 AND AWARD OF A PURCHASE ORDER FROM REQUEST FOR PROPOSAL 1576 TO DELTA STAR FOR A MOBILE SUBSTATION FOR $1,977,993 ISSUES: The issues for Board of Public Utilities consideration are: 1) the approval of Work Order No. 1514752; and 2) the award of a purchase order from Request for Proposal (RFP) 1576 to the lowest responsive and responsible bidder, Delta Star, Inc. for the purchase of a mobile substation with switchgear. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve Work Order No. 1514752 in the amount of $2,198,993; and 2. Approve the award of a purchase order in the amount of $1,977,993 to Delta Star, Inc. of San Carlos, California, for a 30 MVA (mega -Volt -Amp) mobile substation. BACKGROUND: A mobile substation is a portable power solution for use inside the Riverside Public Utilities (RPU) neighborhood power centers known as substations. It is a portable self- contained substation, mounted on a trailer, and ready for rapid integration into the electric distribution grid to provide power to customers under unusual and emergency conditions. Mobile substations can be relocated in a short period of time and are an effective and necessary tool to improve operating flexibility and system reliability during prolonged planned and unplanned equipment outages. RPU currently owns two older mobile substations. Mobile Substation #1 (Mobile 1), was built in 1961, is 55 years old, and has very limited capacity. Mobile Substation #2 (Mobile 2), was built in 1986, is 30 years old, and has the capacity to temporarily replace many existing RPU substation transformers. Both Mobile 1 and 2 include transformers located on flat bed trailers. However, neither Mobile 1 nor 2 have switchgear integrated onto the trailer allowing it to feed multiple circuits. As Riverside has grown, the ability to feed more distribution circuits has become more critical. In contrast to Mobile 1 and 2, the enhanced design of Mobile 3 will allow RPU to respond more effectively to the loss of a substation transformer and switchgear, such as the Harvey Lynn Substation incident. The need for Mobile 3 was identified as part of the lessons learned from the Harvey Lynn incident. RPU needs additional capability to respond to emergency conditions, such as substation equipment failures, particularly during the summer peak loading months, as well as necessary equipment replacements like those recommended as part of the Utility 2.0 planning. Mobile 3 will enable rapid