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4''A'F IE , E. E. r'Y' PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: DECEMBER 12, 2014 ITEM NO: 11 SUBJECT: PURCHASE OF SIX LARGE DIAMETER BUTTERFLY VALVES AND RELATED MATERIALS — WORK ORDER NO. 1403573 ISSUE: The item for Board of Public Utilities consideration is approval of the capital expenditure in the amount of $150,000 to purchase six large diameter butterfly valves and related materials. RECOMMENDATION: That the Board of Public Utilities approve the capital expenditure of $150,000 for Work Order No. 1403573, which includes all costs to purchase six large diameter butterfly valves and related materials. BACKGROUND: The Riverside Public Utilities Department (RPU) uses transmission mains to move water efficiently throughout its service area. The water transmission system contains large diameter valves at various locations. The valves are used to isolate segments of the pipelines in emergencies or during maintenance periods, or they can be used to redirect water based on the operational needs of the system. When a large diameter valve is damaged or inoperable, it needs to be replaced relatively quickly so that the system can be restored to normal operations. However, large diameter valves are not commonly stocked by suppliers, and they can take several weeks to be manufactured and delivered. In order to prepare for an unforeseen emergency or other event necessitating replacement, staff recommends that several large diameter valves in an assortment of sizes be purchased and kept on hand. More specifically, the purchase would include two (2) 30 -inch diameter valves, two (2) 36 -inch diameter valves, one (1) 42 -inch diameter valve and one (1) 48 -inch diameter valve, along with all related materials. Valves can essentially be stored indefinitely, so long as they are protected from the elements and away from other potential sources of damage. The valves will be procured in accordance with Section 602. Utilities Exception of the City's Resolution No. 22576 (Purchasing Resolution). Under this exception, certain supplies and equipment are determined to be particular to RPU's needs and are competitively acquired under the supervision of the City's Purchasing Services Manager, if the budget for such acquisition has been authorized. Each valve is expected to cost less than $50,000. The Purchasing Services Manager concurs with this report.