Title
Salt River Project Construction and Service Agreements for Deer Valley Water Treatment Plant Cortez Substation (Ordinance S-48303)
Description
Request to authorize the City Manager, or his designee, to enter into four agreements with Salt River Project, to provide Professional Services that include design, procurement, and construction services for the Deer Valley Water Treatment Plant Cortez Substation. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $600,000.
Additionally, request the City Council to grant an exception pursuant to Phoenix City Code section 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise would be prohibited by Phoenix City Code section 42-18.
Report
Summary
Maintenance testing of the Deer Valley Water Treatment Plant (DVWTP) Salt River Project (SRP) Substation transformer protectors identified that each of the two transformer protectors have reached the end of their useful lifecycle and there are no longer spare parts available for repairs. The transformer protectors will no longer adequately protect the substation transformer from explosion or fire as required by the National Fire Protection Agency (NFPA). The transformer protectors will be upgraded to the latest available technology models in order to meet the NFPA requirements and provide protection of the transformers to maintain power to the DVWTP.
The objective is to improve DVWTP's ability to continue delivering potable water to customers during potential local transformer failure that would result in a complete plant power outage. The project elements are as follows:
- Replacement of two DVWTP transformer protectors at SRP's existing Cortez substation serving the DVWTP. Without properly functioning transformer protectors, the substation is at risk of fire or explosion in the event of transformer failure.
- The City has requested SRP to perform the design, procurement, and construction for replacement of the two City-owned transformer protectors, at SRP's existing Cortez substation. Contracting out to SRP will provide the necessary checks and balances to ensure SRP substation design and NFPA protection standards are being met to adequately protect the substation transformers.
Contract Term
The contract term is four years starting on or about February 2022.
Financial Impact
Funding in the amount of $600,000 is available in the Water Services Department's Capital Improvement Program budget.
The Budget and Research Department will separately review and approve funding availability prior to execution of any amendments. Payments may be made up to agreement limits for all services rendered, which may extend past the agreement termination.
Location
Deer Valley Water Treatment Plant
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.