09-25-2023 RPT 06 - Laserfiche WebLink

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WATER ENERGY LIFE rr� CITY OF RjVEIZSIDE lag PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 25, 2023 SUBJECT: MULTI -SUBSTATION 69KV CIRCUIT BREAKER REPLACEMENT PROJECT - INCREASE CAPITAL EXPENDITURE OF WORK ORDER NO. 1906356 FROM $6,500,000 TO $7,200,000 ISSUE: Consider approval of an increase to Work Order No. 1906356 from $6,500,000 to $7,200,000, for a total increase amount of $700,000, for the Multi -Substation 69KV Circuit Breaker Replacement Project. RECOMMENDATION: That the Board of Public Utilities approve an increase to Work Order No. 1906356 from $6,500,000 to $7,200,000, for a total increase amount of $700,000, to complete the remaining design, construction, procurement, testing, commissioning, and construction support for the Multi - Substation 69KV Circuit Breaker Replacement Project. 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 an estimated total project cost of $7,636,200 (Attachment 2). The project included replacing 24 aging oil and gas power circuit breakers with environmentally friendly vacuum -type breakers. The Work Order included Board approval to increase the project cost over three fiscal years. On February 22, 2021, the Board approved an increase to Work Order No. 1906356 from $3,500,000 to $6,500,000 (Attachment 3). Staff explained that although the COVID-19 pandemic had slowed the construction effort, the consultant design and procurement activities had continued per the original schedule. The approved monies were utilized to compensate for those expenses. The report also mentioned that staff would return to the Board to request approval of final funds at a later scheduled date. The project stands at 85% of the design completed, 75% of the construction completed, and 95% of the procurement completed. Staff projects that the Board -approved capital expenditure will be depleted by the end of December 2023.