08-26-2019 BPU RPT 15 - Laserfiche WebLink

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V, 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: 15 SUBJECT: PURCHASE ORDER WITH TRANE U.S. INC. FOR EMERGENCY REPAIRS ON AIR INLET CHILLER AT RIVERSIDE ENERGY RESOURCE CENTER UNITS 1 AND 2 IN THE AMOUNT OF $322,538 ISSUE: Approve the issuance of a purchase order with Trane U.S. Inc. of Brea, California, in the amount of $322,538 for the emergency repairs on the air inlet chiller at Riverside Energy Resource Center Units 1 and 2. RECOMMENDATION: That the Board of Public Utilities approve the issuance of a purchase order with Trane U.S. Inc., of Brea, California, in the amount of $322,538 for the emergency repairs on the air inlet chiller at Riverside energy Resource Center Units 1 and 2. BACKGROUND: Riverside Public Utilities (RPU) commissioned Riverside Energy Resource Center Units 1 and 2 (RERC 1 and 2) in June 2006. These fast -start gas turbine energy generation units generate 96 megawatts of electricity, collectively, are strategically located in the city limits and achieve maximum power output in less than 10 minutes. RERC 1 and 2 are very reliable units that serve a critical role in meeting customer demands during peak periods. RERC 1 and 2 rely on a 3,500 -ton chiller system to achieve maximum power production. The chiller cools the ambient air entering each gas turbine to 47 degrees Fahrenheit (°F). During summer peak months, the colder air represents at least 20 percent of the overall electrical output generated from each turbine. On May 02, 2019, Riverside staff encountered a compressor motor failure on the air inlet chiller for RERC 1 and 2. The loss of the chiller would significantly reduce RERC 1 and 2's production during this upcoming summer, when ambient temperatures are expected to be higher than 95°F. In order to maintain reliable plant operations, staff sought approval for emergency work under Riverside City Charter, Article XII, Section 1202(b), which provides that "[A] purchase, or acquisition, construction, extension, enlargement, diminution or curtailment may be made without prior approval... (2) if there is an urgent necessity to preserve life, health or property (i) as determined by the Director of Public Utilities or (ii) if the amount exceeds $100,000 by the Director of Public Utilities and the City Manager. As soon as practicable thereafter, the Director of Public Utilities shall take the matter under Section 1202(b)(2) to the Board of Public Utilities for ratification."