CEDAR FALLS 115 26 KV SUBSTATION Public Works

CEDAR FALLS 115 -26 KV SUBSTATION Public Works Design Build September 27, 2018

PROJECT ORG CHART | 2

CITY ORG CHART - BROAD Mayor/Council FAS Department Director SCL General Manager & CEO SPU General Manager & CEO City Purchasing & Contracting Services Director Generation Operations & Engineering Officer Water Line of Business Deputy Director City Purchasing & Contracting Services Manager Generation Operations & Engineering Director Watershed Management Division Director Law | 3

CEDAR FALLS HYDRO PROJECT - OVERVIEW • Located within the Cedar River Municipal Watershed eastern-central King County • 1904 First powerhouse, current generators 1922 -1928 • Masonry Dam completed in 1914 • Oldest continuously operated public hydropower facility • Intertie point between SCL and PSE transmission lines • Protected watershed provides 70% of Seattle’s drinking water • Project Impetus: SPU’s increased campus load, increased system reliability and potential permanent power to an emergency water supply pumping plant. | 4

PROJECT LOCATION | 5

CEDAR FALLS HYDRO PROJECT - OVERVIEW | 6

SITE OVERVIEW | 7

DETAIL VIEW & PROJECT DESCRIPTION | 8

EXISTING SWITCHYARD | 9

EXISTING SWITCHYARD | 10

PROPOSED SITE | 11

COMPLICATED SITE CONDITIONS | 12

DESIGN-BUILD IS CRITICAL FOR THIS PROJECT • This project is very complex, requiring specialized knowledge and skill from the Design-Build Team o Reduced generation and transmission outages o Design and construction sequencing o NERC (obligation to reliability standards) new equipment & testing • Time savings – Obligations to SPU’s water business line • Complex stakeholder engagement and needs • Innovation in design and equipment selection | 13

PROJECT SCHEDULE Activity Projected Date RFQ Issued October, 03 2018 SOQs Due November 02, 2018 Short-List November 14, 2018 RFP Issued November 21, 2018 First 1 x 1 Meeting December 11 -14, 2018 Second 1 x 1 Meeting January 21 -25, 2019 Proposals Due February 01, 2019 Selection of Design-Builder February 15 2019 Negotiations/Contract Execution March 2019 Design Phase March 2019 – March 2020 Equipment Manufacturing May 2019 – March 2020 Construction Stage 1 June 2019 – August 2020 Construction Stage 2 June 2019 – August 2021 Project Complete December 2021 | 14

PROJECT SCHEDULE | 15

PROJECT BUDGET Costs for Professional Services (A/E, Legal etc. ) $ 350 K Estimated project design & construction costs (includes owner construction contingencies) $ 9, 700 K Equipment and furnishing costs (Included in line above) Contract administration costs (owner, cm etc. ) $ 1, 750 K Contingencies (WA stat owner) $ 1, 350 K Sales Tax (8. 6% North Bend, WA based on construction costs) Total 800 K $ 13, 950 K Honorarium = $80 k | 16

MANAGEMENT CONTROLS • Project Management Framework o Charter o Project Management Plan o Ongoing Risk Analysis o MOA between SCL & SPU • Construction Management o Construction controls o Contract provisions • Finance Controls o SPU and SCL financial governance policy | 17

SCL TEAM IS FULLY QUALIFIED • Prior projects o Design Build & Design Bid Build Public Works o Similar project involvement (Substations & Switchyards) o This is SCL’s 5 th Design Build project • Certifications o DBIA o PE • Design Build Advisor • Subject Matter Experts o Project spans several disciplines at SCL o Deep roster of support engineering & project managers | 18

Thank you for your time! Questions? | 19