11-07-2014 BPU RPT 07 - Laserfiche WebLink

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WATER ENERGY iIPF RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 7, 2014 ITEM NO: 7 SUBJECT: INCREASE FUNDS AND AWARD OF PURCHASE ORDER FOR MAGNOLIA PLAZA RELIABILITY PROJECT 69 KV RELAY AND CONTROL PANELS — WORK ORDER NO. 1227700 ISSUES: The issues for Board of Public Utilities consideration are: 1) increase Work Order No. 1227700 from $6,000,000 to $6,700,000; and 2) approval to purchase 69 kV relay and control panels as part of the Magnolia Plaza Reliability Project. RECOMMENDATIONS: That the Board of Public Utilities: Approve a $700,000 increase to Work Order No. 1227700 in order to complete Phase 1 of the project; and 2. Approve a purchase order in the amount of $88,007.04 to Power Up Controls Inc. of Garden Grove, California, for the 69 kV relay and control panels, and associated equipment, required as part of the Magnolia Plaza Reliability Project. BACKGROUND: Riverside Public Utilities (RPU) has kept up with growth and capacity needs in the City of Riverside's central neighborhoods by adding substations, completing voltage conversion projects and improving the transmission and distribution systems. In order to keep pace with growth and maintain reliability, the Magnolia Plaza Reliability Project (MPRP) was initiated and is scheduled for completion in December 2015. The MPRP includes improvement to Plaza Substation, improvements to the transmission and distribution system and the retirement of Magnolia Substation. On December 7, 2012, the Board of Public Utilities (Board) approved the MPRP Work Order, No. 1227700 (Work Order), in the amount of $3,000,000, which was the total amount available in the Public Utilities' Substation Transformer Additions Account during Fiscal Year 2012 -13. At that time, the Board report noted that the total cost for Phase 1 of the MPRP Work Order was estimated at $6,700,000 and that future Board actions would be required to increase the Work Order as funds became available in subsequent fiscal years. On December 20, 2013, the Board increased the MPRP Work Order from $3,000,000 to $6,000,000, which was the total amount available in the Public Utilities' Substation Transformer Additions Account during Fiscal Year 2013 -14. Staff recommends increasing the Work Order to the full estimated value of $6,700,000 using the funds available in the Public Utilities' Substation Transformer Additions Account in current Fiscal Year 2014 -15. The total estimated cost for all five phases of MPRP is $16,000,000. In addition, the procurement of two 69 kV relay panels and one control panel and associated equipment, is required for the addition of transformer no. 5 at Plaza Substation under Phase 1 of the MPRP.