Title
Customer-Owned Substation Facilities Service Agreement (Ordinance S-43845)
Description
Request to authorize the City Manager, or his designee, to add additional funds for Contract 139425 with Salt River Project (SRP) in an amount of $570,000. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
SRP has been involved with the design, construction and ongoing maintenance of the substation equipment at Val Vista and Deer Valley Water Treatment Plants, as well as the 91st Avenue Wastewater Treatment Plant. Accordingly, SRP has the expertise to provide Water Services the most responsive and cost-effective maintenance, repair and emergency services in a timely matter. SRP assumes all responsibility of power supply reliability to these facilities with minimal interruptions should an electrical outage occur. The increase is needed to cover the additional maintenance and upgrades to these substations.
Financial Impact
With the $570,000 in additional funds, the contract's revised aggregate value is now $845,000 (including applicable taxes). Funds are available in the Water Services Department operating budget.
Concurrence/Previous Council Action
This contract is the result Formal Council Action on June 19, 2013 with an original aggregate value of $275,000.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.