(6)AR 091509 Areva T&D Service Inc.

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ITEM #6 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF SEPTEMBER 15, 2009 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Award of Contract to Purchase Circuit Breakers for the North Substation Project to Areva T&D, Inc., C/O McAvoy & Markham Engineering and Sales, Inc., in the Amount of $183,135.00. DATE: September 9, 2009 BACKGROUND- The City of Colton Electric Utility Department has experienced significant load growth since 1995; peak load has increased from approximately 57 megawatts in 1995 to approximately 90 megawatts in 2006. With the increased demands on the distribution system and subsequent deterioration of power quality on a number of circuits, a Ten -Year Master Plan was developed to assess the capability of the existing system, project the future load growth of the city, and develop a plan to design and construct the necessary system improvements that will allow the Electric Utility to reliably serve the electrical needs of the City. The project identified as the highest priority is the construction of a 69/12.47 kV substation on the north side of the city. The north side of the city is currently served by the Hub Substation and the Drews Substation, both of which are located south of the 10 freeway. Removing significant load from the Hub Substation and the Drews Substation will allow the utility to balance load properly, improve power quality, reliability, and efficiency of the operation of the electric system. The Electric Utility identified property on Pennsylvania as an ideal site for the location of the proposed North Substation because of its proximity to the calculated load center in the northern section of the city, transmission system, and distribution system. From this property, there are at least four (4) corridors available to connect to the distribution system. The property was acquired in September 2008. The purchase of two 15/20/25 MVA, 69-12.47 kV step-down transformers were bid and awarded to Howard Industries in October 2007. The construction of the transformers was completed in November 2008, and they will soon be shipped from Mississippi. City Council awarded a contract to R. W. Beck, Inc. for Owner's Engineer Services on December 16, 2008. The scope of services include engineering, landscape design, environmental, surveying, geotechnical, project management, and construction management services for the design, permitting, and construction of the substation and transmission facilities. The project is now at the stage where the remaining equipment needs to be ordered to ensure the substation can be completed on schedule. DISCUSSION/ANALYSIS: The Electric Department has become aware of the opportunity to piggyback on the competitive bids for the City of Anaheim for substation circuit breakers. Colton Municipal Code, Title 3, Chapter 3.08.140, Section (c), Competitive Bidding Already Completed: states, "When the authorized contracting party