2000 AGN JUN 06 I11 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR the City Council Meeting of June 6, 2000 TO: Honorable Mayor and City C&ncil APPROVAL: Henry T. Garcia, City Manag ��[`� FROM: Thomas K. Clarke, Utility Director --\ SUBJECT: APPROVAL OF PROFESSIONAL SERVICES CONTRACT FOR POWER FACTOR CORRECTION TO POWER ENGINEERS DATE: May 22, 2000 Staff sent out a Request for Proposal (RFP) to solicit proposals for professional services to assist them in improving the system power factor to bring it Gose to unity. DISCUSSION: As a part of the system improvements and to reduce our system losses, we have to collect and analyze the data for the optimum location of capacitor banks throughout the City. This will help in reducing the load on most of the distribution circuits. ANALYSIS Staff sent out the Request for Proposal to five consultants. Out of the five, they received three responses and accepted two proposals: one from Power Engineers and one from Harza Engineering Company. The third response was denied due to an excessive workload with limited resources. The total cost of service through Harza Engineering Company is $44,000 vs. $24,940 through Power Engineers. ALTERNATIVES We can re -issue the RFP and seek new proposals which may require another two to three months from issue of the RFP to the award of the contract. FINANCIAL IMPACT The Power Engineers service contract will cost the City $24,940. Funds are allocated in the 1999-00 fiscal year budget account No. 520-8000-8002-2350-0923. After completion of the study, the equipment procurement will be bid out separately. There will be additional costs for material to install the power factor improvement equipment over a period of three years. However, this will improve the system efficiency and reduce the losses over a period of several years. ENVIRONMENTAL IMPACT: None. RECOMMENDATION Staff recommends that the City Council approve the attached power factor correction contract with Power Engineers. Report Prepared by: Nitin Modi, Electrical Engineering Manager Page 1 of 1 (with attachment: Contract with Power Engineers) Item # 11