STATEMENT OF ISSUE

The Electric Utility is in the process of design of Substation BP21 to provide electric service to the Fallschase development and other areas in the eastern part of the electric service territory. On August 22, 2007, the City Commission authorized a task order not to exceed $600,000 to Ampirical Solutions, LLC, to support the utility’s design engineering work.

This agenda item is requesting City Commission approval for a change order in the amount of $121,981 to the current task order for certain design services related to the design and permitting of Substation BP21. The design changes requested result in lower equipment and construction costs that will more than offset the engineering cost, as well as anticipated lower maintenance costs and a higher degree of safety in the future. Staff estimates $475,000 savings in major equipment and switchgear building construction costs alone, from the design change.

RECOMMENDED ACTION

Option 1: Approve a change order in the amount of $121,981 to the current task order for design services related to the design and permitting of Substation BP21.

FISCAL IMPACT

Option 1: $121,981. Funding is available in project 07149, “Fallschase Substation BP21”. Balance on April 29, 2009 is $4,156,291.78.

Kevin G. Wailes, General Manager, Electric Utility

Anita Favors Thompson, City Manager

For information, please contact: Brian Fisher, Electric Power Engineering, x5034

HISTORY/FACTS & ISSUES

The Electric Utility is in the process of design of Substation BP21 to provide electric service to the Fallschase development and other areas in the eastern part of the electric service territory. On August 22, 2007, the City Commission authorized a task order not to exceed $600,000 to Ampirical Solutions, LLC, to support the utility’s design engineering work. Subsequent to the authorization of the design task order, the Electric Utility, City Growth Management and County Growth Management requested changes that resulted in additional engineering, drafting and project management costs of $121,981 as described below.

• The Electric Utility originally provided design parameters to the consultant based on the City’s standard design and consistent with a substation recently constructed on the electric system. Subsequent to providing those parameters to the consultant, the electric utility design and operations staff studied issues related to recent operating and maintenance concerns with certain types of existing indoor switchgear that was a part of the City’s standard design. Consequently, a decision was made to consider substation designs that would include outdoor switchgear as an option to the normal indoor switchgear. The consultant was requested to prepare both indoor and outdoor designs, at a cost of $35,857.

• Due to the design change from indoor switchgear to outdoor open-air switchgear, the protective relaying design and conduit/cable design increased substantially, requiring many additional drawings at a cost of $18,195.

• For extra reliability and safety clearance of the open-air configuration, the City requested the low voltage bus rating be designed for 23 kV class instead of 15 kV class at a cost of $10,795.

• The design change from indoor to outdoor switchgear also changed the scope for civil engineering design, such as the need to design foundations for the outdoor bus structures and equipment at a cost of $9,799.

• Changes requested during design review consisted of additional transformer grounding; addition of an isolating switch between two transformer banks; and a change in design for duct banks to obtain a higher current rating, at a cost of $12,682.

• During the period of March to May 2008, plans were submitted and review meetings held for City site plan review. In July 2008, additional comments were made requiring changes to the entire submittal at a cost of $14,505.

• During the period of August 2008 to March 2009, new information as well as multiple changes were requested from both City and County staff that required reworking many drawings that had previously been submitted, including stormwater capacity reports; concurrency submittal; changes to requirements for set-aside area; and change of tie-in location for the water utility, at a cost of $20,148.

Although the engineering cost is higher than originally planned, the design changes requested will result in lower equipment and construction costs that more than offset the engineering cost, as well as anticipated lower maintenance costs and a higher degree of safety in the future. Staff estimates $475,000 savings in major equipment and switchgear building construction costs alone, from the design change.

Procurement Services and Budget and Policy have reviewed this agenda item and concur that it meets purchasing and budget guidelines.

CHARITABLE CONTRIBUTIONS

Award not based on Charitable Contribution Preference.

OPTIONS

Option 1: Approve a change order in the amount of $121,981 to the current task order for design services related to the design and permitting of Substation BP21.

Option 2: Do not approve the change order. This is not recommended since the changes were requested by the Utility and the project would not have sufficient funding for proper completion.

FISCAL IMPACT

Option 1: $121,981. Funding is available in project 07149. Balance on April 29, 2009 is $4,156,291.78.

Option 2: Unknown, but delaying this project for lack of funding may result in greater overall cost and decreased reliability to major customers.

ATTACHMENTS/REFERENCES

None