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■1 A I y R j k I It(,♦ I e RIVERSIDE PUBLIC UTILITIES MW& Board Memorandum � ':: 91, 1 0 TI. LITIE - BOARD OF PUBLIC UTILITIES DATE. October 15, 2010 ITEM NO: 7 SUBJECT: RIVERSIDE ENERGY RESOURCE CENTER UNIT 3 INGI DENT—WORK ORDER NO. 1105647 ISSUE: Board of Public Utility approval is requested to increase the contract amount with GE Package Power and approve Work Order No. 1105647 in the amount of$1,250,000 for the repair for RERC Unit 3 turbine, RECOMMENDATIONS: That the Board of Public Utilities: 1. Authorize staff to issue change orders to the contract with GE Packaged Power, Inc.of Houston,TX for the repair of RERC Unit 3 turbine and related contingencies in an amount not to exceed $1,000,000 for a total contract amount of$51,102,732.97; 2. Authorize staff to issue a change order to the Purchase Order with ModSpace of Fontana, CA by the amount of$7,500 for a total purchase order amount of$57,051.94; 3. Approve an Second Amendment to the Professional Services Agreement with Henry R. Fine Enterprises, Inc, dba H RF III Enterprises,increasing the amount of that agreement in an amount not to exceed $20,0,000 for a total contract amount of$2,700,000; and 4. Approve Work No. 1105647 for$1,250,000. BACKGROUND: With approval from the Board of Public Utilities and the City Council,the Public Utilities Department(RPU) is constructing Riverside Energy Resource Center ("RERC") Units 3 and 4, which will provide 96 megawatts of intemaI generation. All external power to serve Riverside customers comes from the state transmission grid through a single point of interconnection, via the Vista Substation. As part of that construction project, the City purchased from GE Packaged Power, Inc. two combustion turbine generators and associated equipment. These turbines are the major components of RERC Units 3 and 4. GE manufactured and delivered these turbines, which were then installed by the ARB, Inc., the contractor that the City selected to construct the plant. On September 9, 2010, it was discovered that dust-like debris contamination had been introduced through the exhaust gas path into the Unit 3 turbine. This event was apparently triggered during normal pre- commissioning procedures. GE subsequently reviewed the condition of the Unit 3 turbine, and determined that there was wide-spread introduction of the contaminant within the turbine. GE recommended that the turbine be removed and transported to its Houston service center,where GE will disassemble, clean, and reassemble the turbine. The estimated turn time for the service center work is eighty days from date of delivery.