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RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: May 7, 2010 ITEM NO: 3 SUBJECT: APPROVAL TO INCREASE PURCHASE ORDER NO. 094510 TO BRAGG CRANE IN THE AMOUNT OF $250,000 ISSUE: Board of Public Utilities approval is requested to increase the Purchase Order to Bragg Crane in the amount of$250,000 for continued crane services for the Riverside Energy Resource Center (RERC) Units 3 and 4 project. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve an increase in the purchase order to Bragg Crane in the amount of$250,000; and 2. Approve an increase in the RERC Units 3 and 4 Work Order No. 0703511 by $250,000 — from $100,578,977.54 to $100,828,977.54. BACKGROUND: The original schedule for RERC Units 3 and 4 was to begin construction in March 2009. On October 21, 2008, the City Council approved the issuance of a Request for Proposals (RFP) to invite bids for the construction for RERC. The Board of Public Utilities, at its October 2, 2009 meeting, approved a contract with ARB, Inc. of Lake Forest, California for the construction of the Riverside Energy Resource Center Units 3 and 4. The City Council approved the contract with ARB at its October 20, 2009 meeting,which was about nine months behind the original schedule. Purchases of large equipment for this project required the use of cranes for unloading from delivery vehicles to available lay down space within the confines of the project area and other lay down space located within the City of Riverside's(City) limits. Cranes are also required to load equipment onto vehicles to transfer from lay down areas to the site and for construction purposes. In January 2010 staff requested bids for crane services for the project. On February 6, 2010, the Board of Public Utilities approved the issuance of Purchase Orders in individual amounts not-to-exceed $250,000, collectively not to exceed$350,000,to four crane service companies: Bragg Crane, Mr. Crane, All Star Crane, and Hill Crane. Bragg Crane has been the most responsive for requests for cranes and also submitted the lowest hourly rental rates for their equipment. Due to the delays, more equipment arrived before the site was ready and therefore needed to be staged at a separate site. Staff requests that an increase in the purchase order be issued to Bragg Crane for purposes of completing the transfer of the needed equipment from off-site to the RERC site. The project constructor,ARB, Inc. has sub-contracted with Bragg Crane to conduct movement of equipment on-site and the City use of Bragg Crane will reduce over-all costs based on the availability of cranes on-site to unload the equipment. Additionally,there will be construction coordination challenges having two different crane operators on site at this point.