Item Number: 4
City Council / Board of Directors
Consent Calendar
Meeting of: March 18, 2025
Submitted By:
Brenda Hampton, Director of Electric Utility Services
Subject:
Notice of Completion for Substation Expansion and Circuit Extensions, Project #ES22- 053
Recommendation:
That the Honorable City Council:
(1) Approve the Notice of Completion for the Substation Expansion and Circuit Extensions, Project #ES22-053 (“Project”); and
(2) Authorize the City Manager to execute the Notice of Completion.
Fiscal Impact:
This action will result in a fiscal impact of $121,496.03. A retention of five percent was withheld from each pay estimate during construction as per the construction agreement.
Partial retention in the amount of $50,630.00 was paid on February 1, 2024. Upon Council approval of the Notice of Completion (“NOC”), the retention of $121,496.03 will be released thirty-five days after the NOC is recorded. Funds are available as follows:
Account Amount
420-20110-30054 (AP-RETENTION) $121,496.03
Strategic Plan Goal:
This item supports the City’s Strategic Plan, Goal E – Invest in Infrastructure. This Project has facilitated Victorville Municipal Utility Services’ (“VMUS”) ability to support customer growth and expansion.
Background:
VMUS currently provides electric service to customers located at the Southern California Logistics Airport (“SCLA”) via a 33kv Southern California Edison (“SCE”) interconnection.
This line is a radial feed shared with other SCE customers and VMUS is at the end of this 4 0
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feed. The original capacity limits on the distribution line would have impeded VMUS’ ability to support customer growth and expansion if no action had been taken. The maximum distribution capacity under the original terms of SCE’s Wholesale Distribution Access Tariff (“WDAT”) for this line was 17.34 MW. With the growth of industry at SCLA over the last few years, VMUS neared this limit. In 2021, SCLA peak load reached 15.3 MW.
On October 22, 2021, following a formal solicitation process, the City Council awarded a construction Agreement to Pacific Utility Installation, Inc. (“PUI”) with a total compensation amount not to exceed $3,459,220. Construction commenced immediately following the issuance of the Notice to Proceed on April 4, 2022.
On February 1, 2022, the City Council approved the execution of an Interconnection Facilities Agreement and Service Agreement for Wholesale Distribution Service with Southern California Edison (“SCE”). This allowed SCE to install additional interconnection facilities and make distribution system upgrades to increase the capacity available on VMUS’ 33kv interconnection.
In addition to the required interconnection and system upgrades completed by SCE, VMUS worked concurrently on the expansion of its substation and circuit extensions to allow for the increase in capacity. On May 4, 2021, the City Council approved the purchase of three 10,000 KVA transformers which are utilized to distribute the increase in capacity and were installed during the substation expansion project. The addition of these three transformers, a capacitor bank, DC battery backup, the installation of two additional circuits, instrumentation and infrastructure were required to support the full increase in capacity.
Discussion:
PUI has completed the Substation Expansion and Circuit 40 and 50 Extensions on January 31, 2025, with a final project cost of $3,442,520.50. VMUS staff have inspected the contracted work completed by PUI and have deemed it to be satisfactory in relation to the requested scope. It is now the desire of staff to issue the Notice of Completion (“NOC”) for the Substation Expansion and Circuit Extensions Project. Upon execution, the NOC will be filed with the San Bernardino County Recorder’s office to offer an opportunity for sub-contractors to make a claim for any work performed that remains unpaid. Thirty-five days after the NOC filing, should no claims be made, the City of Victorville will release payment of the remaining retention currently held and owed to PUI.
Therefore, staff recommends that the City Council approve the issuance of the Notice of Completion for Project #ES22-053 and authorize the City Manager to execute said Notice of Completion.
Staff remains available for any questions or comments you may have. 4 0
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Attachments: A. Site Map
B. Notice of Completion