11-25-2019 BPU RPT 09 - Laserfiche WebLink

Home

W A T E R E N E R G Y T I F F RIVERSIDE PUBLIC UTILITIES id& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 25, 2019 ITEM NO: 9 SUBJECT: PURCHASE ORDER WITH OEM PARTS NETWORK, INC. IN THE AMOUNT OF $71,155.12 FOR THE SUPPLY OF GAS TURBINE PARTS NEEDED FOR THE EMERGENCY REPAIRS ON RIVERSIDE ENERGY RESOURCE CENTER UNIT 3 ISSUE: Approve the issuance of a purchase order with OEM Parts Network, Inc., of Rancho Cucamonga, California, in the amount of $71,155.12 for the supply of gas turbine parts needed for the emergency repairs on Riverside Energy Resource Center Unit 3. RECOMMENDATION: That the Board of Public Utilities approve the issuance of a purchase order with OEM Parts Network, Inc., of Rancho Cucamonga, California, in the amount of $71,155.12 for the supply of gas turbine parts needed for the emergency repairs on Riverside Energy Resource Center Unit 3. BACKGROUND: Riverside Public Utilities (RPU) commissioned Riverside Energy Resource Center Unit 3 (RERC 3) in April 2011. This fast -start gas turbine unit generates 50 megawatts (MW) of electricity, is strategically located in the city limits providing local generation, and achieves maximum power output in less than 10 minutes. RERC 3 is a very reliable unit that serves a critical role in meeting customer demands, especially during summer peak periods. RERC 3 represents 25% of the facility's total power generation capacity and its operation is critical during summer. However, on the evening of August 29, 2019, the gas turbine engine on RERC 3 required a shut off due to conditions outside of operating parameters. When the unit shut off, the unit was operating at full power and generating 50 MW of electricity. Preliminary indications identified high oil temperatures within the hydraulic system. After investigating, staff determined the hydraulic control unit assembly needed replacement. Diagrams on the following page show the location of the hydraulic control units in RERC 3. The control unit assembly is not normally stocked in the plant's spare parts inventory and staff located a refurbished unit in Rancho Cucamonga, CA through the OEM Parts Network, Inc. In order to maintain reliable plant operations, staff sought approval for emergency work under Riverside City Charter, Article XII, Section 1202(b) and City Purchasing Resolution 23256, Sections 702(a). Section 1202(b) (2) of Article XII of the Riverside City Charter provides the following: "[A] purchase, or any 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."