CITY COUNCIL AGENDA ITEM
title
Approve the award of Bid 26-055R, Tollway 34kV Switchgear Building, to Granite Construction Company for an amount not to exceed $3,964,772, plus a 3% contingency
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Raheel Arshed, Deputy Director
BACKGROUND:
The Electric Utility operates 16 substations that connect the City's transmission system and reduce transmission voltages to distribution voltages serving approximately 63,000 electric customers. The Tollway Substation, located near 215 Shuman Boulevard adjacent to Interstate 88, is one of the most critical substations in the City's electrical system. It is part of the northern 138kV transmission ring, serves as a major hub for the 34.5kV sub-transmission system, and supplies 12 of the City's 12.47kV distribution circuits.
Because of the substation's proximity to Interstate 88, salt spray from winter road maintenance accumulates on the insulators, creating conductive paths that can result in electrical flashovers. Salt contamination has caused two major 34.5kV outages over the past decade, affecting thousands of customers and resulting in extended restoration times due to the difficulty of replacing damaged equipment during winter conditions. To improve system reliability, the Electric Utility developed a plan to relocate the 34.5kV switchgear and associated equipment from the outdoors into an enclosed switchgear building.
The Electric Utility evaluated multiple building options and determined that a precast concrete structure is the most durable solution due to the substation's proximity to Interstate 88 and the effects of salt spray.
An initial solicitation in February 2026 resulted in only one bid and that bid significantly exceeded the engineer's estimate.
DISCUSSION:
On April 27, 2026, the Electric Utility issued Bid No. 26-055R, Tollway 34kV Switchgear Building, seeking qualified contractors to furnish all labor, materials, equipment, supervision, and construction ser...
Click here for full text