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W A T F R E N E R G Y L <br />RIVERSIDE PUBLIC UTILITIES <br />.�W& <br />Board Memorandum <br />P U B L I C U T I L I T I E S <br />BOARD OF PUBLIC UTILITIES DATE: JUNE 25, 2018 <br />ITEM NO: 12 <br />SUBJECT: AWARD BID NO. RPU -7533 FOR MULTI -SUBSTATION TRANSFORMER UPGRADE <br />AND RECONDITIONING PROJECT TO REINHAUSEN MANUFACTURING OF <br />HUMBOLDT, TENNESSEE, IN THE AMOUNT OF $1,873,580, AUTHORIZE A 15% <br />CHANGE ORDER AUTHORITY IN THE AMOUNT OF $281,037 FOR THE PROJECT; <br />APPROVE WORK ORDER NO. 1822318 FOR $3,082,617 <br />ISSUES: <br />Award Bid No. RPU -7533 for Multi Substation Transformer Upgrade and Reconditioning Project to <br />Reinhausen Manufacturing of Humboldt, Tennessee, in the amount of $1,873,580, authorize a 15% <br />change order authority in the amount of $281,037 for the project, and approve the capital expenditure of <br />$3,082,617 for Work Order No. 1822318. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities: <br />1. Award Bid No. RPU -7533 for the Multi Substation Transformer Upgrade and Reconditioning Project <br />to Reinhausen Manufacturing of Humboldt, Tennessee, in the amount of $1,873,580; <br />2. Authorize staff to issue change orders in an amount not to exceed 15% or $281,037 of the <br />Reinhausen Manufacturing contract; and <br />3. Approve Work Order No. 1822318 in the amount of $ $3,082,617. <br />BACKGROUND: <br />Substation power transformers (transformers) are essential components of the power grid. Transformers <br />are critical to the reliability and optimum operation of the electric grid. A single substation transformer can <br />provide power to more than 5,000 customers. As such, substation power transformers are critical assets <br />in Riverside Public Utilities (RPU) electric system. <br />The average life of a transformer is approximately 40 years. The life of the transformers can be shortened <br />substantially by various factors such as poor design, overloading for extended period of time, moisture <br />intrusion, and poor maintenance practices. Planned transformer upgrades and reconditioning measures <br />are required to optimize the life of transformers, reduce failures, extend the reliable life of transformers, <br />and improve public and employee safety. <br />Transformers are one of the most important and expensive assets in RPU's electrical grid. A transformer <br />failure can pose unsafe conditions, lead to extended outages for customers, and impose extraordinarily <br />high costs on the utility. <br />Page 166 <br />