Aw9k RIVERSIDE PUBLIC UTILITIES
<br /> Board Memorandum
<br /> P U 0 t ; C U T I [ I T I F S
<br /> BOARD OF PUBLIC UTILITIES DATE: October 15, 2010
<br /> ITEM NO: 6
<br /> SUBJECT: INCREASE IN CONTRACT AMOUNT WITH ARB,INC.,G.E.PACKAGE POWER,G,E.
<br /> MOBILE WATER, AND WUNDERLICH MALEK; ASSIGN INTERNAL LABOR AND
<br /> CONSTRUCTION INTEREST COSTS; AND MISCELLANEOUS ADJUSTMENTS TO
<br /> THE WORK ORDER FOR THE RIVERSIDE ENERGY RESOURCE CENTER UNITS 3
<br /> AND 4
<br /> ISSUE:
<br /> Board of Public Utility approval is requested to increase the contract amount with ARB, Inc., GE Package
<br /> Power, GE Mobile Water, and Wunderlich Malek, and increase Work Order No. 0703511 to$112,500,000.
<br /> RECOMMENDATIONS:
<br /> That the Board of Public Utilities:
<br /> 1, Authorize staff to issued change orders to the contract with ARB, Inc. of Lake Forest, CA for the
<br /> construction of the Riverside Energy Resource Center Units 3 and 4 in an amount not-to-exceed
<br /> $2,137,750.84, for a total contract amount of $23,008,381.84, with an additional change order
<br /> authority, if needed, of$300,000; and
<br /> 2. Authorize staff to issued change orders to the contract with GE Package Power, Inc.of Houston,TX
<br /> for the generation turbines for the Riverside Energy Resource Center Units 3 and 4 in an amount
<br /> not-to-exceed $500,000 for a total contract amount of$50,102,732.97; and
<br /> 1 Authorize staff to issued change orders to the contract with G.E. Mobile Water, Inc. of Houston, TX
<br /> for the water system requirements for the Riverside Energy Resource Center Units 3 and 4 in an
<br /> amount not-to-exceed $60,000 for a total contract amount of $659,107.01; and
<br /> 4. Authorize staff to issued change orders to the contract with Wunderlich Malek of Phoenix,AZ for the
<br /> Balance of Plant software and hardware system requirements for the Riverside Energy Resource
<br /> Center Units 3 and 4 in an amount not-to-exceed$95,000 for a total contract amount of$1,092,968;
<br /> and
<br /> 5. increase Work No. 0703511 to $112,500,000.
<br /> BACKGROUND:
<br /> With approval from the Board of Public Utilities and the City Council,the Public Utilities Department(RPU)is
<br /> constructing RERC Units 3 and 4,which will provide 96 megawatts of internal generation. All extemal power
<br /> to serve Riverside customers comes from the state transmission grid through a single point of
<br /> interconnection, via the Vista Substation. The capacity at Vista is 560 megawatts (MW). Power is also
<br /> provided by the 96 MW RERC Units 1 and 2 and the 40 MW Springs Generating Station. Both facilities are
<br /> peaking units and are licensed to run only a limited number of hours per year. Three times this past summer,
<br /> RPU surpassed the import capacity at Vista Substation and relied on intemal generating units in order meet
<br /> customer demand. Those three days were in the "top ten" peak days for RPU, and all of these days
<br /> surpassed Vista's capacity, Even during these recessionary times, power demand is still at very high levels
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