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W A T E R E N E R C Y I <br />WI& <br />P U B L I C U T I L I T I E S <br />BOARD OF PUBLIC UTILITIES <br />RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />DATE: APRIL 24, 2017 <br />ITEM NO: 11 <br />SUBJECT: EXCEPT THE MAGNOLIA AVENUE FIBER OPTIC CABLE NETWORK PROJECT <br />FROM THE FORMAL PROCUREMENT REQUIREMENTS OF CITY CHARTER <br />SECTION 1109 AND DIRECTLY AWARD A CONSTRUCTION CONTRACT TO <br />ASPLUNDH CONSTRUCTION CORPORATION, IN THE AMOUNT OF $1,708,489, <br />AUTHORIZE A CHANGE ORDER AUTHORITY IN THE AMOUNT OF 15% OR <br />$256,000, AND APPROVE WORK ORDER NO. 1719921 IN THE AMOUNT OF <br />$2,189,489 <br />ISSUES: <br />Recommend that City Council except, by at least five affirmative votes, the Magnolia Avenue Fiber Optic <br />Cable Network Project from the formal procurement requirements required by City Charter section 1109 <br />and directly award a construction contract to Asplundh Construction Corporation in the amount of <br />$1,708,489, with additional change order authority of 15% or an additional $256,000, and for the Board <br />to approve Work Order No. 1719921 in the amount of $2,189,489 for the fiber optic cable network along <br />Magnolia Avenue between Van Buren Boulevard and 1 st Street Project. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities: <br />Recommend that City Council: <br />a. By at least five affirmative votes, except the Magnolia Avenue Fiber Optic Cable Network <br />Project (Project) from the formal procurement requirements required by City Charter section <br />1109 and directly award a construction contract to Asplundh Construction Corporation in the <br />amount of $1,708,489; <br />b. Authorize change order authority for additional work in an amount not to exceed 15% of the <br />contract amount, which is $256,000; and <br />2. Approve Work Order No. 1719921 in the amount of $2,189,489 for the Magnolia Avenue Fiber <br />Optic Cable Network Project. <br />BACKGROUND: <br />Riverside Public Utilities (RPU) operates an advanced broadband fiber optic cable based network to <br />communicate between its substations and control centers for the operation of the electric grid. RPU has <br />many locations and paths throughout the City where it owns excess fiber. This excess fiber is not <br />connected to electronic switches at either end, rendering it "dark". Currently, RPU licenses some of <br />these excess fibers to third parties who install the electronics and "light" the fiber for communication use. <br />In January 22, 2016, the Board approved Magellan Advisors (Magellan) dark fiber business plan and <br />roadmap for enhanced broadband communications in Riverside. Magellan provided a plan for <br />