HomeMy WebLinkAbout17 Consideration to Award Contract for Truckee Sub ConstructionAGENDA ITEM #17
Page 1 of 3
MEETING DATE:April 7, 2021
TO:Board of Directors
FROM:Sanna Schlosser, P.E., Electric Engineering Manager
SUBJECT:Consideration of Award for the Truckee Substation
Improvements –2021 Contract
APPROVED BY_______________________________
Joe Horvath,P.E.,Assistant General Manager/Electric Utility Director
RECOMMENDATION:
Authorize the Interim General Manager to execute a contract with Mountain G Enterprises
for the Truckee Substation Improvements –2021 Contract in an amount of $898,580, plus
a 10% change order authorization for a total not to exceed contract amount of $988,500.
DISCUSSION:
The Truckee Substation was built in the mid 1960’s and is located at 10209 East Jibboom
Street. This site sits below East Kaiser Street and uphill from Trout Creek, and serves the
Downtown, Gateway, Olympic Heights, and Prosser neighborhoods.
Through the years, numerous improvements have been made to this substation including
the replacement of major equipment such as reclosers, regulators, and transformers.
However,staff identified remaining deficiencies with the site and worked with Trisage
Engineering (Trisage)to develop a project to address these issues. A Workshop about this
proposed project was presented at the July 17, 2019 Board meeting. A brief discussion of
the issues and proposed project work follows.
First, this is the only District substation without a control house. A control house provides a
sheltered environment for control equipment and can substantially shorten outages,
especially during inclement weather. Additionally, this is consistent with District practices
as it enhances personnel safety when operating substation equipment.Due to long lead
times, the control house was publically bid and awarded by the Board to JoaQuin
Manufacturing in 2019, and delivered in late 2020.Installation of the control house is part
of this project.
Second, this is the only District substation which lacks oil containment. The topography of
this site includes a steep downslope south to Trout Creek. This makes oil containment a
high priority and was identified in our federally required Spill Prevention, Control, and
Page 2 of 3
Countermeasure (SPCC) Plan.This project includes the installation of a spill containment
system around the oil filled equipment to address this issue.
Next, staff identified deficiencies with the substation ground system effectiveness. The
ground system is a critical component of personnel and system safety. This project
includes the installation of additional ground rods around the perimeter fence and other
ground system improvements to enhance performance.
Additionally, this site is located directly downhill from East Kaiser Street which has seen a
recent increase in traffic.It is feasible that an errant vehicle could veer into the substation.
This catastrophic scenario poses a high risk of injury or death for vehicle occupants and
risk of a substantial and lengthy outage due to substation equipment damage. This project
includes the installation of a guardrail along the south side of East Kaiser Street to address
this issue.
Finally, this site has evidence of insufficient drainage and erosion. Rocks regularly roll
downhill into the substation.During wet weather, water sheets across the driveway and
pools on the eastern side of the site. These issues present safety, maintenance,and on-
going erosion concerns.This project includes drainage improvements and installation of a
retaining wall and slope stabilization north of the substation to address these issues.
To summarize, this project includes the following improvements:
-Addition of a control house;
-Construction of oil containment system for fluid filled equipment;
-Installation of ground grid improvements;
-Addition of guard rail along East Kaiser Street;and
-Construction of improvements for drainage and slope stabilization.
Originally, staff planned construction during FY19 and FY20 but this work was postponed
due to scheduling, bidding, and COVID-19 related issues.
This construction contract was advertised in the Sierra Sun on March 5, 2021.Bids were
opened on March 24, 2021 and four bids were received.Bids are summarized in the
following table:
Bidder Location Amount Responsive
Mountain G. Enterprises Folsom, CA $898,580 Yes
PAR Electrical Contractors Reno, NV $972,258 Yes
REM Construction Paradise, CA $1,120,419 Yes
Summit Line Construction Heber City, CA $1,303,839 Yes
Bids were evaluated and Mountain G Enterprises was determined to be the lowest
responsive bidder with a bid price of $898,580.
This item is in support of the following objectives and goals identified by the District:
1.05.020 Objectives:
Page 3 of 3
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
1.05.030 Goals:
4.5. Provide effective and efficient maintenance and replacement programs.
FISCAL IMPACT:
The Board approved FY20 and FY21 budgets included $ 1,042,701 for the Truckee
Substation Improvement Project.Expenses include District and outside labor for design
and inspection, major materials, and this construction contract.
Expenses related to this project are as follows:
$ 436,869 Spent to Date (District labor, design engineering, purchase of control house)
$1,068,000 Estimated Expenses to Complete Project (includes this Contract)
$1,504,869 Project Total Forecast
The forecast project total is $1,504,869, which is roughly $462,000,or 44%,greater than
the approved Budget amount.This significant increase is attributed primarily to the
inflationary pressures of current construction market, particularly in this region.
This project has been identified as a Facilities Fee (FF) project. Currently, the District’s FF
balance is $756,924, with additional revenues expected in 2021.This is the primary
funding source for this project.However,the Estimated Expenses to Complete Project
exceed the balance of this account as follows:
$756,924 Facilities Fee Balance
($ 1,068,000)Estimated Expenses to Complete Project (includes this Contract)
($311,576)Projected FF shortfall
Staff recommends this FF shortfall be funded from Electric General Fund (Rates funded)
which had a December 31, 2020 balance of about $11,400,000.
The Truckee Substation Improvements Project will be funded first from Facilities Fees.
When this fund is depleted, additional funding will come from the Electric General Fund, in
an amount not to exceed $311,576.
ATTACHMENTS:
None