(1)AR 122209 Award of Bid/International Line Builders, Inc.

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Staff Report to the Mayor and City Council Award of bid IFB-RG-10004 December 22, 2009 Page 2 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 subsequently 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. The City Council awarded a contract to R. W. Beck, Inc. for Owner's Engineer Services on January 20, 2009. 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 City Council approved a Bid Award for the critical equipment (15 kV switchgear, steel transmission poles & steel substation structures, disconnect switches, power cable, and voltage transformers at the City Council Meetings of September 15, 2009 and October 6, 2009. ISSUES/ANALYSIS On October 8, 2009, the Electric Utility Department issued a Notice Inviting Bids (Bid Number IFB-RG- 10004) for the construction phase of the North Substation Project. The Notice Inviting Bids and the specifications were posted on BidNet, the City's online bid system. Notices were sent to 634 registered vendors on the BidNet system. In addition, the Notice Inviting Bids was published in the San Bernardino County Sun on October 9, 2009 and October 16, 2009. A pre -Bid Meeting and Job Walk was held on October 14, 2009 at 2:00 P.M. As a result of questions submitted by potential bidders, the City issued four addenda to the bid documents. A public bid opening was held in the City Council Chambers at 2:00P.M., November 12, 2009. Three bids were received and evaluated for responsiveness to the specifications and qualifications of the bidder. All three bids are considered responsive. The Bid Documents listed two Bid Schedules, Schedule A and Schedule B. The line items in Schedule A relate to the construction of the substation facility, including installation and testing of equipment. Bid Schedule B relates to the removal and replacement of the existing fencing along the NE corner of the property. A Bid analysis with each bidder's price for each Bid Schedule is attached. The Bid Analysis also lists the total price for both bid schedules. 'rile lowest responsive and responsible bidder's Total Bid Price for Schedules A & B is underlined. FISCAL IMPACTS The funds are available in the Capital Cash Reserve Account number 520-1000-007 and the balance of the finding will be provided through operating revenue. Pending Council approval, a budget adjustment to appropriate the necessary funds will be processed to account number 520-8000-8040-3890-0107-000. If the City Council approves a bond issue in the future, then the expenditures from operating revenue will be reimbursed to the Utility when the proceeds from the sale of the bonds are available.