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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 <br />