08-26-2019 BPU RPT 10 - Laserfiche WebLink

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PJ A r F R F N F R c v L I F E RIVERSIDE PUBLIC UTILITIES W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: AUGUST 26, 2019 ITEM NO: 10 SUBJECT: INCREASE IN TOTAL AMOUNT OF APPROVED WORK ORDER NO. 1810532 FOR FREEMAN SWITCHGEAR AND TRANSFORMER UPGRADE PROJECT FROM $3,638,268 TO ORIGINALLY APPROVED AMOUNT OF $5,463,000 FOR CONSTRUCTION, TESTING AND COMMISSIONING PHASES OF PROJECT ISSUE: Approve an increase in the total amount of approved Work Order No. 1810532 for the Freeman Switchgear and Transformer Upgrade Project from $3,638,268 to the originally approved amount of $5,463,000 for the construction, testing and commissioning phases of the project. RECOMMENDATION: That the Board of Public Utilities approve an increase in the total amount of approved Work Order No. 1810532 for the Freeman Switchgear and Transformer Upgrade Project from $3,638,268 to the originally approved amount of $5,463,000 for the construction, testing and commissioning phases of the project. BACKGROUND: On November 5, 2018, the Board of Public Utilities (Board) approved Work Order No. 1810532 in the amount of $5,463,000 for the Freeman Switchgear and Transformer Upgrade Project. Subsequently, on March 25, 2019, the Board approved a reduction of funds in the amount $1,824,732 of approved Work Order No. 1810532 to fund other immediate and critical infrastructure replacement projects related to Canyon Crest cable replacement and recent substation 66kV breaker failures for Fiscal Year 2018/19. During the March 25, 2019 Board meeting, it was discussed that when funds became available, staff would return to the Board in Fiscal Year 2019/20 to request approval to reinstate $1,824,732 and restore Work Order No. 1810532 to the original approved amount of $5,463,000. DISCUSSION: Staff is requesting that the Board of Public Utilities approve an increase of $1,824,732 to Work Order 1810532 in order to restore the Work Order to the original approved amount of $5,463,000 for the construction, testing and commissioning phases of the project. There are no other costs associated with the restoring of the originally approved work order amount. The total capital expenditure of $5,463,000 for approved Work Order No. 1810532 will remain the same as originally approved.