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CITY OF RJVER.SIDE City 0J Arts &Innovation City Council Memorandum IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII TO: HONORABLE MAYOR AND CITY COUNCIL DATE: MARCH 13, 2018 FROM: PUBLIC UTILITIES DEPARTMENT WARD: 6 SUBJECT: MAGNOLIA AVENUE TECHITE PIPE AND PRESSURE REDUCING STATION REPLACEMENT PROJECT — SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $5,216,000 ISSUE: Approve a supplemental appropriation for the design and construction of the Magnolia Avenue Techite Pipe and Pressure Reducing Station Replacement Project in the amount of $5,216,000. RECOMMENDATIONS: That the City Council: 1. Authorize a supplemental appropriation in the amount of $5,216,000 from the Water Fund Balance to fund the design and construction of the Magnolia Avenue Techite Pipe and Pressure Reducing Station Replacement Project; and 2. Appropriate expenditures in the amount of $4,646,000 to the Public Utilities' Transmission Mains Account No. 6230000-470735 for pipeline construction, and in the amount of $570,000 to the Public Utilities' Facility Rehabilitation Account No. 6230000-470803 for the design and construction of the pressure reducing station. BOARD RECOMMENDATION: On February 26, 2018, the Board of Public Utilities, unanimously voted to recommend that the City Council authorize a supplemental appropriation in the amount of $5,216,000 from the Water Fund Balance to fund the design and construction of the Magnolia Avenue Techite Pipe and Pressure Reducing Station Replacement Project. BACKGROUND: Techite pipe consists of a composite material made of fiberglass, polyester resin and sand which has a tendency to become extremely fragile during operation, resulting in an increased frequency of breaks and leaks. The City of Riverside Public Utilities Department's (RPU's) Water Operations staff has experienced breakage problems associated with Techite pipeline in the past. Many water agencies in California and elsewhere have also experienced catastrophic failures of Techite pipes that have led to the interruption of water supply and wastewater conveyance. Due to the poor performance of this product, RPU has begun replacing segments of Techite pipe with steel