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W A t F R E N E R G Y i. [ F } RIVERSIDE PUBLIC UTILITIES P U B L I E U T I L I T I E S Board Memorandum BOARD OF PUBLIC UTILITIES DATE: November 16, 2012 ITEM NO: 3 SUBJECT: DETAILED OVERHEAD INSPECTIONS—AREA 2—WORK ORDER NO. 1309936 ISSUE: That the Board of Public Utilities consider approval of Work Order No. 1309936. RECOMMENDATION: That the Board of Public Utilities approve the estimated operation and maintenance expenditure of$575,000 for Work Order No. 1309936 for the detailed overhead inspection of approximately 4,526 poles, 107 miles of overhead wires and conductors, and 1,521 pieces of overhead equipment located in Area 2. BACKGROUND: The State of California Public Utilities Code requires the California Public Utilities Commission (CPUC) to adopt standards for the inspection,maintenance, repair and replacement of electric utility distribution facilities. Effective March 31, 1997,the CPUC adopted General Order No. 165 (GO 165) for investor owned utilities, which established minimum inspection requirements for electric distribution facilities, including maximum allowable inspection cycle lengths, condition rating,record keeping,reporting on scheduling and performance of corrective action. In March 1998, the CPUC ordered that all publicly owned utilities("POUs")were also to comply with the requirements of GO 165. Although RPU disputes the CPUC's jurisd iction over and ability to control the manner in which RPU operates and maintains its system,the standard set by GO 165 is generally accepted as the industry standard of care for operation and maintenance of utility lines and structures in California. Accordingly, RPU voluntarily complies with the standards set forth in GO 165. GO 165 requires that all overhead facilities have a detailed inspection on a not-to-exceed five-year cycle in order to assess their condition and to identify any deficiencies that are in need of repair. Detailed inspections of overhead facilities in Area 2(Attachment 1)are currently being scheduled and include approximately 20% of the entire overhead system. During this inspection, additional data collection will include items such as capturing heights of attachment and facility information for third party communication utilities, capturing nameplate data and attaching bar code inventory tags to overhead equipment such as switches, capacitors, regulators and transformers. This will provide an additional level of Asset Management that will improve efficiencies and reliability. FISCAL IMPACT: The operations and maintenance expenditure for the project is estimated to be $575,000 as follows: Estimate Percent of Total Contract Inspection by Contractors' Panel $500,000 86.96010 Contract Administration, Data Validation and Integration into the Asset Management System by Utilities and Information Technology Staff $ 55,000 9.57% Contingency $ 20,000 3.47°10 Total $575,000 900.08°10