AGENDA CAPTION:
Title
Consider approval of Resolution 2020-03R, approving the purchase of a transformer for the Rattler Substation operated by the San Marcos Electric Utility from Texas Electric Cooperatives in the amount of $777,772; authorizing the City Manager or his designee to execute all appropriate documents to complete the purchase; and declaring an effective date.
Body
Meeting date: January 7, 2020
Department: Public Services Department - Tom Taggart, Director (By Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $777,772.
Account Number: FY146 51538163.70200
Funds Available: $5,600,000
Account Name: Rattler Substation
Fiscal Note:
Prior Council Action: 2019-05 allocating a not to exceed budget of $8,250,000 to design and construct Rattler Substation; 2019-161R approving the engineering design of Rattler Substation;
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Background Information:
The City entered into a Chapter 380 Economic Development Incentive Agreement with Urban Mining in April 2017 for a high technology manufacturing facility located on Clovis Barker Road near Leah Avenue. In January 2019, the City amended the Chapter 380 Economic Development Agreement with Urban Mining. Section 3.04 of the amended Agreement provided for the dedication of approximately 2.4 acres of land to the City for the construction and operation of Rattler Electric Substation which will serve Urban Mining on the project site as well as other City loads off site. Additionally, the City entered into a Contribution in Aid of Construction Agreement with Urban Mining in January 2019 which provided that the City waive charges associated with line extensions to the project site in exchange for performance guarantees related to amounts of purchased power by Urban Mining over an incentive period and conveyance of certain property, easements, and right-of-way to the City. A budget amendment to the 2018-2019 Fiscal Year Budget to allocate a not to exceed amount of $8,250,000 for the construction costs of the Rattler Electric Substation was also through Ordinance 2019-05 on February 5, 2019, adding the design and construction of the substation to the adopted Fiscal Year 2019 CIP plan. The project is funded in part by debt issued in FY19, cash balance in Capital Improvement Reserves, and debt remaining from the construction of other projects.
On December 5, 2019, six bids were received for solicitation 220-057, Rattler Substation Transformer. The lowest responsive bid of $777,772 from Texas Electric Cooperatives, Georgetown, TX in the amount of $777,772 meets all technical requirements and is less than the amount budgeted for this asset.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Recommend award to Texas Electric Cooperatives for the Rattler Substation Transformer in the amount of $777,772.