02-27-2017 BPU RPT 04 - Laserfiche WebLink

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,'J A i F R -" r I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: FEBRUARY, 27 2017 ITEM NO: 4 SUBJECT: RATIFICATION OF CHANGE ORDER TO PURCHASE ORDER 171202 WITH CG POWER SYSTEMS OF WASHINGTON, MISSOURI, FOR ADDITIONAL TRANSFORMERS - CHANGE ORDER AMOUNT $75,406 ISSUE: Ratify the change order to add $75,406 to purchase order 171202 with CG Power Systems of Washington, Missouri, to purchase two additional transformers, in accordance with Article XII, Section 1202(b)(2) of the City Charter. RECOMMENDATION: That the Board of Public Utilities ratify the change order to add $75,406 to purchase order 171202 with CG Power Systems of Washington, Missouri, to purchase two 2,500 kVA transformers in accordance with Article XII, Section 1202(b)(2) of the City Charter. BACKGROUND Of the 14,950 distribution transformers currently installed on the Riverside Public Utilities electric system, only 51, or 0.3 percent of them are 2,500 kVA (see installed unit pictured below). These large capacity transformers typically serve high demand and high load density customers such as Riverside City College, the Water Quality Control Plant, or Sabert Manufacturing. These type of customers served by these large transformers provide valuable services, manufacturing, education and employment to the local community so reliable electric service is key to their success.