04-13-2020 BPU RPT 07 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: April 13, 2020 ITEM NO: 7 SUBJECT: EXPENDITURE WITH GE PACKAGED POWER, LLC OF HOUSTON, TEXAS FOR EMERGENCY REPAIRS ON GAS TURBINES FOR RIVERSIDE ENERGY RESOURCE CENTER UNITS 1 AND 3 IN THE AMOUNT OF $4,530,289 DUE TO URGENT NECESSITY FOR PROTECTION AND PRESERVATION OF PUBLIC LIFE, HEALTH, AND PROPERTY WITH A 10% CHANGE ORDER AUTHORIZATION IN THE TOTAL EXPENDITURE AMOUNT OF $4,983,319. ISSUES: Approve the expenditure for the repairs on the gas turbines for Riverside Energy Resource Center Units 1 and 3 in the amount of $4,530,289 due to the urgent necessity for the protection and preservation of public life, health, and property, with a 10% change order authorization, for a total expenditure of $4,983,319, in accord with City Charter section 1202(b). RECOMMENDATIONS: That the Board of Public Utilities approve the expenditure for the repairs on the gas turbines for Riverside Energy Resource Center Units 1 and 3 in the amount of $4,530,289 due to the urgent necessity for the protection and preservation of public life, health, and property, with a 10% change order authorization, for a total expenditure of $4,983,319, in accord with City Charter section 1202(b). CITY COUNCIL ACTION: On December 17, 2019, the City Council unanimously adopted an emergency resolution waiving the formal bidding requirements and declaring that the repairs on the gas turbines for Riverside Energy Resource Center (RERC) Units 1 and 3 in the amount $4,530,289 were of an urgent necessity for the protection and preservation of public life, health, and property. Additionally, the City Council approved the issuance of purchase orders with GE Packaged Power, LLC of Houston to complete the emergency repairs on the gas turbines for RERC Units 1 and 3 in the amount of $4,530,289. RPU staff was authorized to make necessary revisions to the purchase order terms and conditions to complete the necessary repairs and provided with change order authority for 10% of the purchase order in the amount of $453,030. Finally, the City Council authorized a supplemental appropriation of $4,983,319 from the Electric Fund Unrestricted, Undesignated Cash Reserve for emergency repairs on RERC Units 1 and 3. BACKGROUND: RPU commissioned Riverside Energy Resource Center Generation Unit 1 (RERC 1) in June 2006 and Riverside Energy Resource Center Generation Unit 3 (RERC 3) in April 2011. Each of these fast -start gas turbine units is able to generate 50 megawatts (MW) of electricity in less than ten minutes and are strategically located in the city limits providing local generation capacity. RERC 1 and RERC 3 have