07-25-2016 BPU RPT 09 - Laserfiche WebLink

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W A T E R E N E R C Y I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: JULY 25, 2016 ITEM NO: 9 SUBJECT: PROFESSIONAL SERVICES AGREEMENT, FROM REQUEST FOR PROPOSAL 1564, WITH SCHNEIDER ELECTRIC USA, INC. OF SAN DIEGO, CA, FOR THE SUBSTATION SWITCHGEAR UPGRADE PROJECT FOR $4,349,740 AND APPROVAL OF WORK ORDER NO. 1601400 FOR $5,530,000 ISSUES: The issues for Board of Public Utilities consideration are: 1) the approval of a Professional Services Agreement from Request for Proposal (RFP) 1564 to the lowest responsive and responsible proposer, Schneider Electric USA, Inc. of San Diego, CA, for the Substation Switchgear Upgrade Project; and 2) the approval of Work Order No. 1601400. RECOMMENDATIONS: That the Board of Public Utilities: Approve a Professional Services Agreement in the amount of $4,349,740 to Schneider Electric USA, Inc. of San Diego, California, for the Substation Switchgear Upgrade Project; and 2. Approve Work Order No. 1601400 in the amount of $5,530,000. BACKGROUND: On September 4, 2015, the Board of Public Utilities received a report of Riverside Public Utilities' (RPU) proposed electric infrastructure projects for FY 2015/16 that were estimated at $500,000 or more. The purpose of the report was to provide the Board an overview of the projects and highlight the significance of those projects. One of the projects identified was the upgrade of substation switchgear units that provide service to approximately 26,000 customers. Switchgear units are large metal enclosures containing equipment that switches, controls, and protects distribution circuits and are physically located at electrical substations, which are neighborhood power centers. Typical equipment housed inside the Switchgear includes circuit breakers, protective relays, meters, auxiliary controls, and automation equipment. RPU owns and operates a total of 61 switchgear units. The average age of RPU's switchgear units is approximately 40 years old. Many of the components within these switchgear units have reached the end of their useful life. RPU staff assessed and identified ten switchgear units in the distribution system that require upgrades based on the equipment condition, personnel safety, maintenance concerns, and system reliability. All of the ten switchgear units utilize antiquated electromechanical relays. One aspect of the proposed upgrades to all ten switchgear units is the replacement of electromechanical relays with high - technology microprocessor based relays. This technological advancement is also recommended in RPU's Electric System Master Plan. Microprocessor based relays are precise, reliable, and are able to integrate with modern automation systems. In addition, microprocessor based relays provide arc flash protection