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:J W& RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: December 20, 2013 ITEM NO: 7 SUBJECT: MAGNOLIA PLAZA RELIABILITY PROJECT — PROPERTY ACQUISITION — INCREASE WORK ORDER NO. 1227700 ISSUES: The items for Board of Public Utilities consideration are: 1) approval to increase Work Order No. 1227700 from $3,000,000 to $6,000,000; 2) approve the capital expenditure of $232,935 for the land transfer of 0.356 acres for the Magnolia Plaza Reliability Project; and 3) recommend that the City Council authorize the transfer 0.356 acres of vacant land from the City to the Electric Fund for the Magnolia Plaza Reliability Project located at 3716 Elizabeth Street. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve an increase to Work Order No. 1227700 from $3,000,000 to $6,000,000 which includes the estimated costs of property acquisition, equipment and material procurement, construction, inspection and engineering; 2. Approve the capital expenditure of$232,935 for the land transfer of 0.356 acres for the Magnolia Plaza Reliability Project; and 3. Recommend that the City Council approve the land transfer of 0.356 acres on portions of APNs 225052008, 225052010, 225052019 and 225052021 from the City to the Electric Fund to reimburse the Capital Outlay Fund 432 - Magnolia Avenue Railroad Grade Separation - Measure A project Account No. 9589730214-44031374 for the Riverside Public Utilities' Magnolia Plaza Reliability Project located at 3716 Elizabeth Street, at a total cost of$232,935. BACKGROUND: Riverside Public Utilities (RPU) has kept up with growth and capacity needs in the City of Riverside's 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 the improvement of Plaza Substation, improvements to the transmission and distribution system, and the retirement of Magnolia Substation. On December 7, 2012, the Board of Public Utilities approved Work Order No. 1227700 in the amount of $3,000,000, which was the total amount available in the Public Utilities' Substation Transformer Additions Account No. 6130000-470632 during Fiscal Year 2012-13. That Board report noted that the total cost for MPRP Phase 1 was estimated at $6,700,000 and future action would be necessary to increase the Work Order amount as funds became available in subsequent fiscal years. The total estimated expenditure of $6,700,000 includes all costs for equipment, materials, engineering, construction, overhead and contingency. The additional funding to be allocated in Fiscal Year 2013-14 is $3,000,000, bringing the total Work Order authorization to $6,000,000.