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Emergency Change Order for Streetcar Substation Repairs
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DESCRIPTION: Requesting Board authorization to approve a change order to an electrical substation repair and improvement contract. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☒ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to execute a change order with Powell Electrical Systems, Inc. in the amount of $277,555.81 for the electrical substation repair and improvement project (2023-PM-01).
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ISSUE/BACKGROUND:
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The St. Charles streetcar line is served by three electrical substations: Calliope, Valence, and Dublin. The substations are essential to streetcar operations as they are relied upon to provide a consistent electrical feed to the St. Charles line.
In August of 2024, the RTA Board passed resolution 24-038, authorizing a contract with Powell Electrical Systems, Inc. in the amount of $1,046,565. The purpose of the contract was to replace electrical switchgear at each of the substations that had become obsolete. By replacing six electrical breakers at the three substations, RTA would reduce repair costs, mitigate the possibility of power interruptions to the St. Charles line, and ensure a robust, redundant electrical feed for the foreseeable future.
Due to the lead time associated with ordering the replacement breakers and associated equipment, Powell began their work in March of 2026. However, during the course of the installation, an issue was discovered that would prevent the new electrical breakers from functioning properly. Critical electrical equipment upstream of the breaker boxes-specifically the Microprocessor Protective Relays or MPRs-was determined to be incompatible with the replacement breaker boxes. The MPRs serve as the “brain” of the electrical system and communicate with the breaker boxes and tells the breakers to open in the event of a problem. In order for the new breaker boxes to function properly, the old protective relay equipment would either have to be either repaired or replaced. This incompatibility was not discovered until the installation of the new breakers had started. In May 2026, Powell presented to RTA a comparison of the repair vs. replace option. While the repair option is less expensive, it presents two substantial risks. First, in the near term, the repair process would actually take considerably longer than the replacement process-up to 215 days vs. 131 days for replacement-nearly three months longer than the replacement option. Currently, one of the three substations, Valence, is offline due to the breaker replacement process that has been underway since March. As long as this substation is offline, there is a very real risk to streetcar operations. Any loss of power from either of the other two substations (which are temporarily powering the entire line) would take the St. Charles streetcar offline. Thus, in the near term, speed is of the essence in completing the replacement of the six electrical breakers across the three substations.
The second risk with the repair option is the greater possibility of failure in the years ahead. Recent experience with obsolete breaker components has demonstrated the limitations and risks of relying on aging, non-repairable equipment. A full replacement and upgrade support future reliability and reduces the likelihood of similar failures.
Because of the near-term and long-term issues associated with the repair path because in the opinion of RTA staff, the replacement option is the best way to ensure the long-term reliability and redundancy of the substations, RTA is recommending full replacement of the MPR and associated equipment.
Replacing the MPR equipment comprises the vast majority of the proposed $277,555.81 change order. The change order also includes an approximately $29,000 cost for the replacement of electrical test cabinets. The current test cabinets, which are a critical diagnostic tool, were deemed to be incompatible with the new breaker equipment.
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DISCUSSION:
The contractor, Powell, presented to RTA staff a comparison of the repair and replacement options. The repair option has a cost of $177,852.30 and as discussed above, an estimated timeline of up to 215 days.
The replacement option has a cost of $277,555.81 and an estimated time to completion of 131 days.
For the reasons stated above minimizing the possibility of near-term disruptions to streetcar service and ensuring long-term reliability, RTA staff recommend the replacement option. RTA staff has completed an Independent Cost Estimate, examining each line item in the proposed change order, and has determined that the change order amount is consistent with that estimate.
Staff will authorize Powell to order the additional equipment and schedule the installation of the equipment upon Board approval. The expected duration of the work is 131 days. No service disruptions to the streetcar are anticipated as long as the work proceeds expeditiously and according to schedule. Only one of the three substations will be offline at any one time, allowing the other two to provide power to the St. Charles streetcar. The risk to streetcar service is if one of the remaining two substations goes offline for an unexpected reason. Thus, while no service disruptions are expected to occur as a result of this work, it is important that the work proceeds expeditiously in order to preserve service redundancy.
FINANCIAL IMPACT:
The total cost for change order is $277,555.81. The project will be funded by a federal grant and its associated local match. Grant LA2023-001 and the accompanying local match will cover 100% of the project cost ($222,044.65 in grant funds and $55,511.16 in local match). These funds are in account 01-0000-00-1515-000-00-00-00000-00000. Grant LA2023-001 (including the local match) has adequate surplus funds to fully cover the change order.
NEXT STEPS:
Upon Board approval, staff will approve the change order with Powell Electrical Systems, Inc. and issue the Notice to Proceed (NTP) on the work covered by the change order.
ATTACHMENTS:
1. Resolution
2. Resolution 24-038 approved in August 2024 authorizing the contract with Powell Electrical Systems, Inc.
3. Independent Cost Estimate
4. Change Order Summary
Prepared By: Rafe Rabalais, rrabalais@rtaforward.org
Title: Director of Capital Projects
Reviewed By: Dwight Norton, dnorton@rtaforward.org
Title: Chief Planning and Capital Projects Officer
Reviewed By: Gizelle Johnson Banks
Title: Chief Financial Officer
Click or tap to enter a date.
Ronald G. Baptiste Date
Interim Chief Executive Officer