CITY OF GLENDALE CALIFORNIA REPORT TO CITY COUNCIL

Transcription

1 FORM CM-36 CITY OF GLENDALE CALIFORNIA REPORT TO CITY COUNCIL February 7,2012 AGENDA ITEM Request for Approval to Issue a Request for Qualification (RFQ) of Firms, and Request for Proposal (RFP) to Engineer, Procure and Construct a 69/12 kv Substation at the Grandview Substation Site 1. Resolution for City Council approving and authorizing the issuance of a Request for Qualification (RFQ) and a Request for Proposal (RFP), and directing the General Manager of Glendale Water and Power (GWP) to obtain proposals from prequalified firms COUNCIL ACTION Public Hearing [ 1 Ordinance [ 1 Consent Calendar [Xl Action Item [l Report Only [ 1 Approved for t;{b 1, JO/;4;alendar, ADMINISTRATIVE ACTION Submitted Glenn O. Steiger, General Manager- GWP... -~/i7'tf,m'""'----- Prepared Ramon Z. Abueg, Assistant General Manager - Electric.... Henry R. Abrari, Principal Electrical Engineer ~~=~~t/l'(irl tto.~~.~. APp;~~t~~ choa, City Manager ~~ R.V~~h:~1 J. Garcia, City Attorney... ~~ Bob Elliot. Director of Finance and Administrative Svcs.. ~~I-'-'-66' -~ce; ""';'/-- / 5 B /

2 Approval 10 Issue RFQ of Firms and Request for Proposals (RFP) for 69/12 kv Substation at the Grandview Substation Site Page 2 of 4 RECOMMENDATION Glendale Water and Power (GWP) recommends that the City Council authorize the General Manager of GWP to issue a Request for Qualifications (RFQ) to prequalify firms to submit proposals in response to the Request for Proposals (RFP) for the engineering, procurement, and construction of a 69 kv to 12 kv Substation at the Grandview Substation Site. The RFQ and RFP packages are on file and available in the GWP Electrical Engineering Department. SUMMARY GWP intends to establish and engineer, procure, and construct a contract with an experienced and prequalified engineering/contracting firm to reconstruct the Grandview Electrical Substation at 6135 San Fernando Road. The substation will need to be reconstructed to increase its capacity and upgrade its voltage from 4 kv to 12 kv to support anticipated load growth in Grand Central Business district. GWP has completed the reconstruction of the distribution system to 12 KV in the area serviced from Grandview Substation, and has converted the majority of the service area from 4 kv to 12 kv. Once all the conversions are completed, Grandview Substation will be upgraded to match the higher service voltage using new equipment including transformers; Gas Insulated (GIS) circuit breakers, Gas Insulated Switchgear (GIS) and other appurtenances to operate at the higher voltage. The advantages of GIS equipment is that not only we can install higher capacity equipment in a smaller footprint, but the GIS equipment has a lower profile and is more aesthetically pleasing than air insulated switchgear. Once this station is reconstructed, it will increase the reliability of electric service provided in the Grand Central Business district and will provide backup power to the Western Substation. California Environmental Quality Act (CEQA) review is underway and will be completed prior to award of a construction contract. FISCAL IMPACT GWP slaff estimates the cost for this project at $12,511,000 for FY and The engineer's estimate is based on the results of the feasibility study conducted by Pike Energy Solutions. Funds for this project are available under Fund No. 553 and Organization No This project was initially planned to be financed with bond funds. Due to the demands expected in the Grand Central Business District from construction projects underway and near completion, the project needs to be completed before bond proceeds become available. To minimize the impact in GWP's cash reserves, GWP Electric will postpone other capital projects that are not essential to maintain the electric system's reliability. If the project is delayed, GWP will have to reverse the conversion work in some areas to mitigate the potential risk of not having sufficient energy during high load conditions. However, such decision will minimize the reliability and flexibility of service to the development projects in the Grand Central Business District. Additionally, significant funds have already been spent to complete the conversion work. Completion of the project will increase the power delivery service reliability in the area and reduce the energy losses through the transmission and distribution lines which improve GWP's revenues. Energy losses in the 34/4 kv system will be reduced by about one-third after the system is converted to 69/12 kv system.

3 Approval to Issue RFO of Firms and Request for Proposals (RFP) for 69/12 kv Substation at the Grandview Substation Site Page 3 of4 BACKGROUND The Grandview Substation on San Fernando Road was originally built in This substation currently serves approximately 436 large commercial/industrial customers and 1,168 residential customers. Presently, Grandview is equipped with two step-down transformer banks (34 kv to 4kV) with a total capacity of approximately 22.5 megawatts and fourteen (14) 4kV distribution feeders used to serve commercial, industrial, and residential customers in this area. Grandview, along with the Western Substation, serves the Grand Central Business District west of San Fernando Road. GWP is expecting future load growth in this area due to the expansion of large customers such as Disney and DreamWorks in excess of 30 MVA. This increase in load cannot be accommodated by the existing station capacity. The plan is to reconstruct the Grandview Substation with three 28 MVA transformers for an installation capacity of 84 MVA. Additionally, the primary operating voltage of this substation will be upgraded to 69kV from 34kV. This will allow us to increase the overall station capacity and provide greater reliability for the area as well as the ability to back up 12kV feeders at the Western Substation. Once the outdated equipment and switch rack (originally designed in 1930) and relays are replaced with newer, state-of-the-art intelligent devices and microprocessor-based smart relays, it will enable us to integrate the area into our greater Distribution Automation and Smart Grid Plan providing for higher reliability in Western and Northwestern Glendale. The existing Grandview Substation building will be preserved. On May 5, 2011, the City Council authorized GWP Staff to award a contract to Pike Energy Solutions to conduct feasibility studies, recommend cost effective and reliable reconstruction options for the Grandview Substation site, and prepare design/build specifications. The Feasibility Study and specifications were completed on December (documentation is available and on file in the GWP Electrical Engineering Department). The Feasibility Study, conducted by Pike Energy Solutions, recommends the use of a Gas-Insulated Substation (GIS) because of existing space limitations, and estimates the cost for this project at $12,511,000. In order to continue to provide reliable electric service and provide service to the added demand in the area, the Grandview Substation reconstruction must be completed by June, 2013; thus minimizing the risk of exposing the service area without flexibility for service during high load conditions and in an emergency due to a loss of a feeder or other sources. The Feasibility Study has recommended that the configuration for the substation include: 3-28 MVA of transformer capacity; A 69 kv GIS in a ring bus configuration with six positions located in a new GIS structure in the existing switchyard; 69/12.47 kv transformers protected by firewalls and provided with oil containment that meet federal and state Spill Prevention, Control and Countermeasure requirements; A cable vault for routing three circuits of 69 kv underground cables; one circuit from Kellogg Substation, one circuit from Western Substation and one future circuit from Bel Aire Substation which will be directly terminated at the 69 kv ring bus; Three double-bus double-circuit breaker kv arc resistant Air Insulated SWitchgear (AIS) with bus tie breakers, one for each transformer, located in the existing building; and Nine outgoing kv underground distribution system feeders The conceptual design option resulting from the study includes sufficient redundancy to accommodate repair and maintenance activities over the life of the station.

4 Approval to Issue RFQ of Firms and Request for Proposals (RFP) for 69/12 kv Substation at the Grandview Substation Site Page 4 of4 Aesthetically pleasing walls around the exterior switch rack and transformer facilities of the substation will reduce the visual impact and provide a less intrusive design in the commercial environment where the Grandview is located. GWP seeks authorization for the issuance of an RFQ for qualified proposers to submit proposals to the RFP to carry out this project. As such, GWP staff is recommending and looking for approval to conduct a prequalification process and, subsequently, the RFP. This process, as outlined in State Public Contract Code, Section 2010, was enacted as part of Assembly Bill 574 in The law allows a public agency to establish a prequalification procedure to prequalify proposers for a single project (Section [a]). The law requires every public agency that creates a prequalification procedure to: 1. use a "standardized questionnaire and financial statement in a form specified by the public entity" (20101 laj); 2. adopt and apply a uniform system of rating bidders on objective criteria, on the basis of the completed questionnaires and financial statements (20101 [b)); 3. Create an appeal procedure, by which a contractor that is denied prequalification may seek a reversal of that determination (20101 IdJ). GWP will be using the model contractor package as developed by the Department of Industrial Relations for prequalification. State law requires that any public entity requiring prospective bidders on a public works project to prequalify must establish a process that will allow prospective bidders to dispute their proposed prequalification rating prior to the closing date for receipt of bids. In compliance with state law, the RFQ provides that any prospective bidder who is dissatisfied with their proposed prequalification rating will be provided notice in writing of the basis for disqualification and will be provided the opportunity to rebut the finding. As set forth in state law, if the prospective proposer chooses not to avail itself of this process, the proposed prequalification rating may be adopted without further proceedings. GWP proposes that a prospective proposer who disputes his or her disqualification may initially dispute the finding to a panel comprised of the General Manager - GWP, the Assistant General Manager - Electric, and a representative of the Purchasing Department. If the panel holds that the prospective proposer is unqualified, the proposer may appeal to the City Council in accordance with the Uniform Appeal Procedure set forth in the Glendale Municipal Code (GMC). The RFP process takes time and the prequalification process will benefit the Grandview Substation Reconstruction project by determining proposer responsibility prior to receiving bids and to aid in selection from responsible proposers. EXHIBIT(S) (N/A)

5 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA, AUTHORIZING THE GENERAL MANAGER OF GLENDALE WATER AND POWER DEPARTMENT TO ISSUE A REQUEST FOR PREQUALlFCATION AND SUBSEQUENTLY OBTAIN PROPOSALS FROM PREQUALIFIED FIRMS TO ENGINEER, PROCURE AND CONSTRUCT A 69/12KV SUBSTATION AT THE GRANDVIEW SUBSTATION SITE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE: SECTION 1. That the General Manager of GWP is hereby directed to issue a Request for Prequalification (RFQ) to prequalify firms to participate in a subsequent Request for Proposals (RFP) to engineer, procure, and construct a 69/12 KV Substation at the Grandview Substation Site. The RFQ and RFP packages to engineer, procure and construct a 69/12 KV Substation at the Grandview Substation Site, on file in the Electrical Engineering Department of the Glendale Water and Power Department (GWP), are hereby approved and adopted. SECTION 2. That the General Manager of GWP is hereby directed to issue the RFQ and once responses are received to advertise for proposals by issuing the RFP to qualified proposers, to Engineer, Procure and Construct a 69/12 KV SUbstation at the Grandview Substation Site, as described in the RFQ and RFP adopted by this Resolution. Adopted by Ihe Council of the City of Glendale on Ihis _ day of, ATTEST: Mayor Cily Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES )SS. ) I, Ardashes Kassakhian, City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the day of, 2012, and that the same was adopted by the following vote: Ayes: Noes: Absent: Cily Cieri< 5 B 1