CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Option Year #2 of Contract 23-151, Civil and Duct Work, to Meade Electric Company, Inc. for an amount not to exceed $644,000 and a total award of $1,044,713.08
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DEPARTMENT: Electric Utility
SUBMITTED BY: Raheel Arshed, Deputy Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
City Council awarded Contract 23-151 to Meade Electric Company, Inc., on December 5, 2023, for a one-year term from January 1, 2024, to December 31, 2025, with two, two-year options to extend.
The Electric Utility (Utility) operates 16 substations that facilitate the delivery of energy to approximately 63,000 residential and commercial customers. To provide timely and reliable service to its customers, the Utility requires assistance from a qualified underground contractor to provide the labor and equipment necessary to perform capital and emergency maintenance work. The purpose of this contract is to supplement the Utility’s resources and perform work that the Utility cannot complete due to time constraints or limited internal resources.
In 2022, the Electric Utility initiated a major reliability project focused on the Tollway Substation. The project involves relocating the existing outdoor equipment into a building and adding a new transformer at the site. In 2023, the City issued a purchase order for the transformer to support the reliability improvement project, as well as a strategic spare transformer. The transformers had a lead time of three years and are now in the final stages of production, with shipment expected by the end of 2026.
The City hired Sargent & Lundy as the consultant and engineer for the complete design of the project. Sargent & Lundy completed the final civil plans in the summer of 2026. The civil plans include the foundations for the transformers, as well as the concrete foundations, piers, and footings required to extend the existing 138 kV bus and install a new breaker upstream of the transformer.
DISCUSSION:
This change order includes the civil, concrete, and foundation work for the 138kV bus extension, new 138kV circuit breaker, and the two transformer pads.
In addition to the pad for the new transformer related to the reliability project, Sargent and Lundy designed a similar foundation at Tollway Substation to hold the new system spare. Tollway Substation had room for the spare, and three of the five transformers of these voltages are at the Tollway Substation.
The subset of specific civil and concrete installation cost components to this facet of the project were not able to be obtained until final plans were received from Sargent and Lundy. After the plans were received, the Electric Utility worked with Meade to scope the civil and concrete work from the drawings.
Meade has performed similar work for the Electric Utility, most recently at the Edward Hospital Substation expansion.
Independently, Staff evaluated an alternate technology, as a means of price validation, for some of the piers. The alternative involves installation of a helical screw anchor into the unexcavated earth, as opposed to drilling holes and pouring concrete with steel reinforcement. Budget estimates from two alternate suppliers did not result in any savings.
Meade has confirmed that they have the resources to complete the projects by dates the Utility needs and meet the Sargent and Lundy specifications.
Contract Award
|
Original Contract Value |
$400,713.08 |
|
Prior Cumulative Approved Change Orders |
$0.00 |
|
Subtotal |
$400,713.08 |
|
(+/-) This Change Order |
$644,000.00 |
|
Total Contract Value |
$1,044,713.08 |
This Change Order is requested to add funds to complete the concrete foundation and pier work, as designed by Sargent and Lundy, on the final print set for the Tollway Substation transformer additions and 138kV bus extension.
FISCAL IMPACT:
CIP #: Various
Civil and duct work is expensed to the Infrastructure account listed below. This service is required to complete a number of capital projects within the Electric Utility. The 2026 budget included $25,151,500 for various electric utility infrastructure upgrades. The change order can be accommodated within the budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
$25,151,500 |