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HomeMy WebLinkAbout _ 4.5(c)--Award of Bid Schedule No. 5444, Surge ArrestersC IT Y OF REMDINO�" AN CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: February 6, 2024 FROM: Nick Zettel, Director of ITEM NO. 4.5(c) Redding Electric Utility ***APPROVED BY*** v , 6,pp4in, c , ct c , irecto of c iris tricUtilit�'.....: i�?�"?(��� (.7i pan i' ' nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(c) --Award of Bid Schedule No. 5444, Surge Arresters Recommendation Authorize award of Bid Schedule No. 5444, Surge Arresters, to Wesco in the amount of $293,436, including tax, for the City of Redding Electric Utility. Fiscal Impact The purchase of surge arresters is included in Redding Electric Utility's (REU) General System Improvements Fiscal Year 2023-25 Biennial Budget and the Overhead/Underground Infrastructure Replacement Project for electric line construction services. Pursuant to REUs five- year financial plan, REU anticipated these projects may be bond -funded. If capital expenses related to these efforts are projected to exceed the approved budget, staff will return with additional recommendations related to budgetary adjustments and financing options. Alternative Action The Council could choose not to award the bid to Wesco and provide alternative direction to staff. Background/Analysis California's Governor signed Senate Bill 901 in September 2018, which requires utilities to prepare wildfire mitigation measures if the utility's overhead electrical lines and equipment are located in an area with a significant risk of wildfire that could result from those electrical lines and equipment. The first program in REU's Wildfire Mitigation Plan (Plan), the Wildfire Prevention and Improved Response Program, was approved by the Council on May 7, 2019. Three additional programs, the Technology Solutions Program, the Distribution 10 -year Capital Improvement Program, and the Emergency Operations Program, were approved along with the plan on December 3, 2019. Report to Redding City Council February 1, 2024 Re: 4.5(c) --Award of Bid Schedule No. 5444, Surge Arresters Page 2 Section 5 of the Plan, Wildfire Prevention Strategies and Programs, outlines the strategy for system hardening to reduce the risk of REU overhead infrastructure igniting a wildfire in high- risk areas, specifically Tier 2 and Tier 3 fire -threat zones. One system hardening strategy includes revising construction standards to implement arc suppression components, including surge arresters. These particular arresters are much less likely to release molten sparks when they operate which significantly reduces the probability of REU infrastructure starting a wildfire. Purchasing surge arresters as part of the Wildfire Prevention Strategies and Programs was previously approved by the Council on Tuesday, September 21, 2021. The total quantity purchased at the time was considered sufficient for all installations in Tier 2 and Tier 3 fire -threat areas. Subsequently, staff believes these additional arresters are needed due to general maintenance replacements of the previously installed arresters operating coupled with an expanded installation of arrester locations. On Tuesday, January 16, 2024, two bids were opened for Bid 5444, and in the evaluation process, staff analyzed the bids based on the bid price and compliance with the bid specifications. The apparent low bidder, Wesco, is recommended for award. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments ^5444 Bid Tab CITY OF REDDING PURCHASING DIVISION -TABULATION OF BIDS One Source Supply Solutions Wesco BID: SURGE ARRESTERS BID SCHEDULE NO. 5444 Zettel Hopwood DATE OF OPENING TUESDAY, January 16, 2024 TIME OF OPENING 3:00 P.M. ITEM QTY DESCRIPTION UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE 1 800 Surge Arrester with Spark Prevention Unit $385.99 $308,792.00 $342.00 $273,600.00 $0.00 2 Freight Included N/A TOTAL COST: $331,179.42 $293,436.00 $0.00 S.Fnoeber-PumhaoingDivision