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City Council Approves $55-Million Contract for Glenarm Repowering Project

Published on Tuesday, June 3, 2014 | 7:16 pm
 

The City Council Monday approved a $55-million contract for the Glenarm Power Plant Repowering Project.

The contract was awarded to ARB, Inc., which posted the lowest bid of $55,661,973. ARB will provide the design and construction of the project covering the replacement of a conventional boiler/steam turbine-generating Broadway unit used by the City since 1965.

A Pasadena Water and Power Dept. staff report said the old unit will be replaced with a new combined cycle unit called GT-5 set to reduce the city’s fuel consumption and emissions, and lower the city’s carbon footprint. The new unit is expected to be operational by May or June 2016.

“This is a very important project for the city in terms of reliability, in terms of reducing green house gasses and keeping our costs down,” said Margaret McAustin, Pasadena City Council member for District 2.

The project was adopted in March 2009 as part of the City Council’s Integrated Resource Plan, a 20-year program that aims to deliver “reliable and environmentally responsible electricity at competitive rates.”

“Pasadena Water and Power is really excited about the Glenarm Repowering Project, to update the plant itself and to bring new technology to residents, to have more reliable power,” said PWP public information coordinator Jennifer Guess.

The staff report prepared by the Water and Power Department emphasized that the ARB contract is approximately $10.4 million higher than the base estimate prepared by PWP’s Power Engineers, leaving only about 4 million in contingency funds.

But information from the staff report said “given that the City’s contract with ARB defines the scope of work in detail and puts considerable project risk on ARB, staff believes the contract can be accomplished within the bid price.”

The project will be funded as a part of Pasadena’s Capital Improvement Program. The city will issue bonds to finance part of the project, officials said.

Information from PWP’s website says that the Glenarm Repowering Project will apply the “Pasadena First-Buy Local,” a city program that ensures maximum efforts are made to hire locally.

Local business and residents will be given contracting and hiring opportunities through the city’s Local Participation Plan, which calls for 15 percent of the subcontracting and procurement on the project to be satisfied by Pasadena businesses, and 25 percent of the payroll to be satisfied by Pasadena residents.

The local hiring is facilitated through a Project Labor Agreement with the Los Angeles and Orange County Construction and Building Trades.

The City and the Foothill Workforce Investment Board provided a workshop last May 21 to prepare Pasadena residents for hire. The contractors working on the site met face to face with Pasadena residents a week after to identify potential candidates for hire or sponsorship.

Officials said ongoing weekly follow-up and coordination with the contractors and the unions will be conducted by City staff.

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