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W A T E R E N E R C Y I RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 13, 2017 ITEM NO: 9 SUBJECT: RESOLUTION AUTHORIZING CITY MANAGER TO ISSUE PURCHASE ORDERS UNDER THE CONTRACTOR PANELS ISSUES: Recommend that the City Council adopt a resolution authorizing the City Manager, or his designee, to issue purchase orders for the award of each individual project to a firm on the contractor panels, if the expenditure has been approved by either the Board of Public Utilities or the City Council, as applicable; and directing the City Manager to update the City's Resolution No. 22576 (Purchasing Resolution) to reference the procedures for the award of a project under these panels. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council adopt a resolution: Authorizing the City Manager, or his designee, to issue purchase orders for the award of each individual project to the lowest responsible and responsive bidder, if the expenditure has been approved by either the Board of Public Utilities or the City Council, as applicable; 2. Directing the City Manager to update the City's Resolution No. 22576 (Purchasing Resolution) to reference the procedures for the award of a project under these panels; and 3. Directing the City Manager to seek Board approval to add qualified contractors to any panel. BACKGROUND: Riverside Public Utilities (RPU) hires contractors to assist with various types of work including capital infrastructure renewal projects, facility maintenance and system improvements. These contractors are generally hired using the formal bidding process outlined in the City of Riverside's (Riverside) Purchasing Resolution. However, the urgent nature of certain projects requires that a contractor be hired in a more expeditious fashion than can be achieved using the formal bidding process. The Board of Public Utilities (Board) has recommended over the years that the City Council (Council) establish various Contractor Panels as a means to hire contractors in a more efficient fashion, for the Energy Delivery and Water Divisions of RPU. These panels consist of contractors that have been prequalified as part of a screening process and include the Energy Delivery Panel, the Water Division Panel and the Water Division Paving Panel (Panels). Work is competitively bid among the Panel members. These Panels have proven very successful as a means for RPU to complete certain projects in a timely fashion and are described further below. Energy Delivery Panel In 1999, the Board of Public Utilities and the City Council authorized the establishment of a Contractor Panel to streamline the bidding process for underground structure work for the Energy Delivery Division to help keep up with the increasing demand for electric system conduit and