02-22-2021 BPU RPT 06 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 22, 2021 SUBJECT: MULTI-SUBSTATION 69KV CIRCUIT BREAKER REPLACEMENT PROJECT INCREASE THE INITIAL CAPITAL EXPENDITURE OF WORK ORDER NO. 1906356 FROM $3,500,000 TO $6,500,000 ISSUE: Consider approval for an increase to Work Order No. 1906356 from $3,500,000 to $6,500,000 for Year II of the Multi-Station 69KV Circuit Breaker Replacement Project. RECOMMENDATION: That the Board of Public Utilities approve an increase to Work Order No. 1906356 from $3,500,000 to $6,500,000. BACKGROUND: On September 23, 2019, the Board of Public Utilities (Board) approved Work Order No. 1906356 for the Multi-Substation 69kV Circuit Breaker Replacement Project for an initial capital expenditure of $3,500,000, with a total project cost of $7,636,200 (Attachment 1). The Work Order approval schedule established included Board approval for the increased project costs in each respective budget year in order to complete the project in three years. The total estimated expenditure of $7,636,200 includes all equipment, materials, engineering, construction, overhead, and contingency costs. Description of Work Fiscal Year Amount ($) Twelve (12) Power Circuit Breaker Replacements 2019/20 $3,500,000 Nine (9) Power Circuit Breaker Replacements 2020/21 $3,000,000 Three (3) Power Circuit Breaker Replacements 2021/22 $1,136,200 Work Order Total $7,636,200 DISCUSSION: Staff projects that the initial approved capital expenditure will be depleted by the end of April 2021. Although the Covid-19 Pandemic has affected the construction schedule, other aspects of the project like major equipment procurement, miscellaneous minor purchases, and consultant services have not been delayed. Staff will seek the Board's approval for awarding bids for purchasing material and equipment later this year. The additional equipment is included under