REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of the Public Works Contract for the Parker Interconnection Project and Related Budget Amendment
Report
BACKGROUND
On February 20, 2019, the City's Electric Utility, dba Silicon Valley Power (SVP) opened bids for the Parker Interconnection Project (Contract No. 2124). The Parker Interconnection Project consists of installing six new transmission poles and approximately 1,000 feet of new 60kV transmission line. This Project is in conjunction with the Electric Service and Substation Agreement with Vantage Data Centers, LLC (Vantage) approved by Council on August 29, 2017 (Agenda Item 12.84). The purpose of the Electric Service and Substation Agreement is to expand Vantage's business in the City and construct a four-story data center, Vantage McLaren Data Center, on Mathew Street. Per the Electric Service and Substation Agreement, SVP will provide 27 MVA (megavolt-ampere) of capacity to the Parker Substation and Vantage is responsible through developer contributions for actual costs incurred by the City for substation site improvements, substation equipment and transmission lines for the Parker Interconnection Project.
On November 27, 2018 Council approved the Procurement Agreement with Wireless Structures Consulting, Inc. dba Western Utility Telecom, Inc. to purchase the steel poles for Parker Substation. The next phase of the Parker Interconnection Project is to install the transmission facilities to energize the new Parker Substation by SVP's 60 kV Transmission System. Vantage will reimburse costs associated with the Parker Interconnection Project in accordance to the terms and conditions of the Electric Service and Substation Agreement (Attachment 1).
DISCUSSION
One bid was received for the Parker Interconnection Project. The Engineer's Estimate and the evaluated bid are as follows:
Engineer's Estimate
$982,913
Hot Line Construction, Inc.
$943,057.20
Hot Line Construction, Inc.'s bid is $39,855...
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