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Agenda Report
July 13,2026
TO: Honorable Mayor and City Council
FROM: Water and Power Department
SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACTWITH ARTISAN GRID SERVICES, INC TO REPLACE THECALIFORNIA INDEPENDENT SYSTEM OPERATOR'S REMOTEINTELLIGENT GATEWAY AND METERS FOR THE WATER ANDPOWER DEPARTMENT FOR AN AMOUNT NOT-TO-EXCEED $425,000
RECOMME^NDATION:
It is recommended that the City Council:
1. Find the contract proposed herein to be categorically exempt under the CaliforniaEnvironmental Quality Act ("CEQA") pursuant to California Code of Regulations,Title 14, Chapter 3, Article 19, Section 15301, Class 1 - Existing Facilities, Section15302, Class 2 - Replacement or Reconstruction, and Section 15303, Class 3 -New Construction or Conversion of Small Structures, and that there are no features that distinguish this project from others in the exempt classes and, therefore, there are no unusual circumstances;
2. Award contract to the lowest responsive and responsible bid dated June 8,2026, submitted by Artisan Grid Services, Inc in response to the project plansand specifications to replace the California Independent System Operator("CAISO") Remote Intelligent Gateway and CAISO meters for the Water andPower Department, authorize the City Manager to enter into a two year contractfor an amount not-to-exceed $425,000, which includes the base contract amount of $340,000 and a contingency of $85,000 to provide for any necessary change orders; and
3. Authorize the City Manager to approve amendments to the subject contract including durational extensions.
BACKGROUND:
As an operator within the CAISO balancing authority, Pasadena Water and Power 1 I
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MEETING OF 07/13/2026AGENDA ITEM NO.._6
Contract with Artisan Grid Services, Inc for the RIG and CAISO Meter Replacement Project July 13, 2026
("PWP") regularly trades and manages assets within California's wholesale electricitygrid and competitive markets. To communicate effectively with CAISO, PWP is required to use a Remote Intelligent Gateway ("RIG") system that allows transfer of real-timeoperational data. The existing RIG was installed in 1999 and was manufactured byHathaway Corporation, an organization that is no longer in business. We are unable toservice the current RIG or find any troubleshooting support due to the dissolution of the manufacturer and the age of the components. While it is still in compliance with CAISO's current RIG requirements, it lacks the cybersecurity defenses, datatransferring speeds, and the ease of locally viewing information that the new RIG will provide upon project completion.
The new RIG will utilize a Schweitzer Engineering Laboratories, Inc. ("SEL") Real-TimeAutomation Controller ("RTAC") which has been qualified as a CAISO-Certified RIG.SEL's RTAC unit meets CAISO's requirements for data accuracy, data quality, security,and communications. The equipment currently in use exceeds 25 years of service andmust be replaced in order for PWP to comply with CAISO's evolving cybersecurity, dataaccuracy and quality, and communication RIG requirements. In addition, PWP iscurrently installing a Battery Energy Storage System ("BESS") at the Glenarm locationwhich will require adding a new generation resource to the RIG system and adding two new CAISO revenue meters for data sharing.
To meet CAISO requirements and support the BESS project, PWP will be required toreplace and add meters at two locations. Specifically, ten replacements and two newadditions at the Glenarm Dispatching Station ("Glenarm"), and three replacements atTM Goodrich Receiving Station ("TM Goodrich"). The collective new equipment willenable the efficient and compliant transfer of data and communications to CAISO.
A Notice Inviting Bids for Specifications to replace the CAISO RIG and CAISO metersfor the Water and Power Department was posted on OpenGov, the City's procurementplatform, on May 6, 2026. The bid generated notices to all vendors who had previouslyregistered with the City of Pasadena for this particular commodity class. A total of 25vendors downloaded the specifications, none of which were local. A mandatory job walkwas conducted on May 18, 2026, where six companies attended; none of which werelocal. PWP staff conducted an internet search for local businesses within the bid specification industry class but did not find any companies that met the bid specificationrequirements. PWP received two bids by the bid closing date of June 8, 2026 and the results are summarized below in Table I.
Contract with Artisan Grid Services, Inc for the RIG and CAISO Meter Replacement Project July 13, 2026
Table I: Bid Summary
VendorLocationBid Amount
Artisan Grid Services, IncSacramento, CA$340,000
Wunderlich-Malec EngineeringEden Prairie, MN$868,444
Artisan Grid Services, Inc ("Artisan") submitted the lowest responsive and responsiblebid, which complies with all requirements of the Specification document. Artisan has notpreviously worked with the City of Pasadena, but has fifteen years of experience withRIG and CAISO meter installation projects. It is recommended by staff to award a twoyear contract to Artisan for the replacement of the RIG, the replacement of 10 meters atGlenarm Dispatching Center, replacement of three meters at TM Goodrich ReceivingStation, and the addition of two new meters at Glenarm Dispatching Center for anamount not-to-exceed of $425,000, which includes the base contract amount of $340,000 and a contingency of $85,000 to provide funds for any other necessarychange orders involving meter replacement and installation. Over the course of theproject, PWP may determine it necessary to replace other existing meters or install newmeters that are out of the current scope of this project. The 25% contingency accounts for any potential meter procurement and installation labor costs.
Adding three backup meters (one connected to each transformer) at the TM GoodrichReceiving Station will provide the necessary redundancy and security to support one ofthe most critical parts of PWP's power grid. Should one of the existing meters fail orneed to be taken offline to be repaired, CAISO would not have access to one-third ofour transmission data. Installing three backup meters will prevent the disconnection ofcommunications with CAISO when an existing meter fails or needs to be taken offline for repair and will provide more operational flexibility.
The proposed contract complies with the Competitive Bidding and PurchasingOrdinance, Pasadena Municipal Code, Chapter 4.08 and the Living Wage Ordinance, Pasadena Municipal Code 4.11.
COUNCIL POLICY CONSIDERATION:
The RIG and CAISO Meter Replacement Project are necessary for the Glenarm PowerPlant, Glenarm BESS, and the TM Goodrich Receiving Station to continue tocommunicate with CAISO and provide compliant grid support. This action supportsPWP's further acquisition of renewable energy resources to reduce greenhouse gas("GHG") emissions, furthers its goal to source 100% of Pasadena's electricity fromcarbon-free sources by the end of 2030 and improves grid reliability for Pasadena ratepayers.
Contract with Artisan Grid Services, Inc for the RIG and CAISO Meter Replacement Project July 13, 2026
ENVIRONMENTAL ANALYSIS:
The contract award has been determined to be categorically exempt under the CEQA pursuant to California Code of Regulations, Title 14, Chapter 3, Article 19, Sections 15301 (Existing Facilities [Class 1]), 15302 (Replacement or Reconstruction [Class 2]), and 15303 (New Construction or Conversion of Small Structures [Class 3]). Class 1 includes operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. The proposed contract provides for the replacement/installation of RIG and CAISO meters at the existing Glenarm Dispatching Station and the existing TM Goodrich Receiving Station.
There would be no expansion of use as a result of the new meters. Class 2 consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Specifically included in Class 2 is the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Class 3 consists of, among other things, construction and location of limited numbers of new, small facilities or structures and the installation of small new equipment and facilities in small structures.
The proposed project consists of a minor alteration to replace/install the subject meters.
There are no features that distinguish this project from others in the exempt classes and, therefore, there are not unusual circumstances.
Contract with Artisan Grid Services, Inc for the RIG and CAISO Meter Replacement Project July 13, 2026
FISCAL IMPACT:
The total cost of this action and contract including contingency is $425,000. Funding for this action will be addressed by the utilization of Power Production Facility Improvements (3236) Capital Improvement Project budget. It is expected that $300,000 will be spent in Fiscal Year 2027.
The following table represents a project summary.
Base Bid$340,000
Contract Contingency$85,000
Total Fiscal Impact$425,000
Respectfully submitted,
DAVID M. REYES
General Manager
Water and Power Department
Prepared by:
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Kelly Nguyen
Assistant General Manager
Approved by:
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1ATTlHEW^.lHMATTHEW E.'HAWKESWORTH
Interim City Manager