05-07-10 BPU RPT 15 - Laserfiche WebLink

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WATER I ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I I I T I F S BOARD OF PUBLIC UTILITIES DATE: May 7, 2010 ITEM NO: 15 SUBJECT: APPROVAL TO INCREASE THE PROFESSIONAL SERVICES AGREEMENT WITH HRF III ENTERPRISES, INC., WHICH PROVIDES ASSISTANCE IN OVERALL PROJECT MANAGEMENT,CONTRACT OVERSITE, PROCUREMENT, ENGINEERING OVERSITE, CALIFORNIA ENERGY COMMISSION (CEC) OVERSITE AND REQUIREMENTS AND PROVIDES CONSTRUCTION MANAGEMENT FOR THE RIVERSIDE ENERGY RESOURCE CENTER (RERC) UNITS 3 AND 4 GENERATION PROJECT ISSUE: Board of Public Utilities approval is requested to increase the Professional Services Agreement with HRF III Enterprises, Inc for certain specialized professional services to assist in engineering and construction of Riverside Energy Resource Center (RERC) Units 3 and 4. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve an increase of the purchase order with HRF III Enterprises, Inc. in the amount of $700,000, for a total purchase order amount of$2,500,000; 2. Approve the First Amendment to the Agreement with HRF III Enterprises, Inc.; and 3. Approve an increase in the RERC Units 3 and 4 Work Order No. 0703511 by $700,000 — from $100,128,977.54 to $100,278,977.54. BACKGROUND: During the development of the RERC Units 1 and 2 Project, highly skilled professional engineers and support staff were hired through the City-approved temporary placement agency to support RPU staff. These individuals have over 30 years experience each in generation project engineering, construction, project management, environmental coordination, and implementation of the California Energy Commission's Mitigation Monitoring Plans. The expertise they provided proved invaluable throughout all phases of the project including third-party review and recommendations that saved the City of Riverside (City) additional costs for the project. The City desired to hire these individuals again, but not through a temporary agency as before. These individuals are employed by HRF III Enterprises, Inc. (HRF)and the City entered into a Professional Services Agreement with that firm in February 2008. The RERC— HRF Team includes seven employees providing generation construction and civil engineering, California Energy Commission CEQA validation and reporting, project records and updating and other project expertise. Delays in the construction contract issuance require an increase to the Professional Services Agreement to sustain continuous coverage of the construction, testing and commissioning of the RERC Units 3 and 4.