June 24, 2025 Item #8
Action on Award of
Contract for KRS and
SRS Project to DMZ
> Builders
1852 RTC 25-385
Item #8
THE MISSION CIT
June 24th, 2025
Background
• Silicon Valley Power (SVP), issued a combined Public
Works project bid for:
NORTHERN
• Kifer Receiving Station (KRS) - Project No. 2453 A RECEIVIN • Scott Receiving Station (SRS) - Project No. 2456 STATION (NRS)
• These projects are part of SVP's Capital Improvement
Quasons
Program (CIP) *101 NO CHAA
• Projects were identified in SVP's Three-Year System SCOTT Growth Plan Strategy
• Accepted by City Council on September 28, 2021 (RTC#21-871) (SRS) KIFER
• Purpose of the Projects are to: RECEIVING
STATION
• Upgrade SVP's transmission system (KRS)
• Support anticipated system load growth
• Replace end-of-life equipment
• Maintain system reliability
2 POST MEETING MATERIAL
1 June 24, 2025 Item #8
KRS and SRS Project Scope
• Replaces end of life infrastructure and increases capacity • KRS constructed 1955 and SRS in 1975
• Full Rebuild - New 60kV/115kV Switchgear, control rooms, larger transformers, circuit breakers, disconnect switches, cable sealing, relocation of 6okV and 115kV transmission lines associated with each substation
Scott Receiving Station
• Upgrading capacity from 372 MVA to over 600 MVA
• Schedule considerations:
• City began long lead material procurement in 2023
> Start Construction - mid-2025
• 115 kV Completion - 3rd Quarter 2027
• 60 kV Completion - 4th Quarter 2028
• Close out and demo existing - 1st quarter 2029
Kifer Receiving Station
3 Request for Bid (RFB) Summary
• RFB Issuance Period: February 24, 2025 - May 1, 2025
• Newtron LLC (Bid Withdrawn)
• Bid Opening: $13,405,695
• Corrected Bid (Post-Evaluation): $113,405,695
• 6% less than engineers estimate of $121,200,000 Scott Receiving Station • Withdrawal Date: May 9, 2025
• Reason: Incorrect Subcontractor and bid value listed
• DMZ Builders (Lowest Responsive Bidder)
• Bid Opening: $117,688,674
• 3% less than engineers estimate of $121,200,000
Kifer Receiving Station
2 June 24, 2025 Item #8
FY 2025/26 Budget Amendment
Increase/ Accounts for additional
Current Revised
(Decrease) budgetary need:
Electric Utility Capital Fund (591) PM services
Revenues • Construction management
Other Revenue $34,544,978$15,000,000 $49,544,978 • Testing and commissioning • Special testing services
Expenditures Additional equipment and
KRS Project $93,024,573 $6,000,000 $99,024,573 material costs (e.g., transformers)
SRS Project $86,112,417 $9,000,000 $95,112,417
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Recommended Action
• Award the Public Works Contract for KRS and SRS Rebuild (Contract No. 2453 and 2456), to DMZ Builders in the amount of $117,688,674 and authorize the City Manager or designee to execute the contract in a final form approved by the City Attorney • Authorize the City Manager or designee to take any actions necessary to implement and administer the Contracts including executing any and all documents in furtherance of the award, completion, and acceptance of these projects and approval of any necessary change orders not to exceed 15 percent of the Contract Price, or $17,653,301, for a total not to exceed amount for the Contracts of $135,341,975;
• Approve the FY 2025/26 budget amendment in the Electric Utility Capital Fund to increase Other Revenue to recognize additional Load Development Fee revenue in the amount of $15.0 million, increase KRS Project in the amount of $6.0 million, and increase SRS Project in the amount of $9.0 million (five affirmative Council votes required to appropriate additional revenue).
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June 24, 2025 Item #8
Action on Award of
Contract for KRS and
SRS Project to DMZ
Builders
1852 RTC 25-385
Item #8
THE MISSION CITY
June 24th, 2025
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