City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: May 20, 2024
Staff Report: 2403-2746
TITLE
Approval of Purchase Order 4524000375 with Meiden American Switchgear for the Purchase of Seven (7) 60KV Circuit Breakers for the Colorado Substation in an Amount Not to Exceed $713,023 for FY 2024; CEQA Status: Exempt Under CEQA Guidelines Section 15302 (Replacement of Existing Structures)
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to execute Purchase Order 4524000375 with Meiden American Switchgear to procure seven (7) replacement 60KV vacuum power circuit breakers for Colorado Substation in the amount of $713,023 (Attachment A).
BACKGROUND
The circuit breaker is a device that interrupts high voltages and currents during switching or fault conditions on the sub-transmission system. These devices require regular maintenance and routine testing to ensure proper operation. The circuit breakers in Colorado Substation are operational, however, they have exceeded their normal life of 30-40 years. Replacement parts are no longer readily available, and one breaker of the same vintage experienced a major component failure and required replacement in 2017. Additionally, these breakers utilize 1,000 gallons of mineral oil as the interrupting medium. This oil requires regular maintenance pumping into temporary containers and extensive measures must be taken to prevent spills that can enter the adjacent Matadero Creek. Replacing the existing oil circuit breakers with vacuum breakers will permanently remove approximately seven thousand gallons of oil from the substation and thus reduce the risk of environmental contamination or pollution. For these reasons, staff recommends these breakers be replaced with modern circuit breakers that use vacuum as interrupting mediums.
ANALYSIS
The City’s Utilities engineers evaluate the sub-transmission systems on an ongoing basis, including replacement of existing facilities. After a comprehensive evaluation of the sub-
transmission system at the Colorado Substation and in alignment with the City's commitment to electrification, staff recommends the replacement of the oil circuit breakers at the Colorado Substation.
The City's long-term electrification goal demands a proactive approach to ensure the reliability and efficiency of the transmission system. The outdated components at the Colorado Substation pose a potential risk to the system's performance, especially considering the anticipated increase in load as part of the City’s Sustainability and Climate Action Plan (S/CAP) electrification initiative.
Through the modernization efforts, the City is not only safeguarding the integrity of the substation but also future proofing infrastructure to meet the growing demands of an electrified city. This strategic recommendation aligns with industry best practices and positions the City to seamlessly integrate into the evolving energy landscape while upholding our commitment to providing a reliable and sustainable energy source for the community.
Procurement Process
City staff posted a formal request for quotation on December 19, 2023 on the City of Palo Alto’s e-procurement website (OpenGov), notifying 2,891 providers with a bid opening date on January 24, 2024.
The City received three (3) bids. DoubleTree Systems was rejected due to not meeting the required specifications. Morgan Ingland and Meiden American Switch Gear both quoted the same switch gear that met City specifications. Meiden American Switch Gear is the lowest bid.
Below is the procurement summary table:
FISCAL/RESOURCE IMPACT
Funding for the $713,023 to purchase the circuit breakers is available in the FY 2024 Electric CIP Budget under Capital Improvement Project EL-89044 (Substation Facilities Improvements.)
STAKEHOLDER ENGAGEMENT
Procurement of new 60 KV circuit breakers for City’s substations does not involve or impact any stakeholders.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15301 (repair, maintenance, of existing facilities) and 15302 (replacement or reconstruction of existing facilities).
ATTACHMENTS
Attachment A: Circuit Breakers Purchase Order 4524000375 APPROVED BY:
Dean Batchelor, Director of Utilities
Staff: Rick Baptist, Principal Electric Engineer
Table 1: Summary of Request for QuotationProject Bid Name/Number RFQ 18 PURCHASE AND DELIVERY Purchase and Delivery of Seven (7) 72.5KV Substation Circuit BreakersRFQ 189908Proposed Length of Project May 20, 2024 -May 8, 2025Number of Bid Packages Downloaded byContractors 4Total Days to Respond to Bid 26Mandatory Pre-Bid Meeting NoNumber of Company Attendees at Pre-BidMeeting N/ANumber of Bids Received 3Base Bid Price Range $713,022.77 -$768,725.60Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto-ca/projects/87752