REQUEST FOR CITY COUNCIL ACTION
DATE: 04/03/2024
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
SUBJECT:
Title
ISSUANCE OF PURCHASE ORDER TO WESCO|ANIXTER FOR THE PURCHASE OF CAPACITOR BANKS AND AUTOMATIC CAPACITOR CONTROLS
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EXECUTIVE SUMMARY:
This staff report asks the City Council to authorize a purchase order to Wesco|Anixter in the amount of $382,386.75 for the purchase of four 1800kvar Capacitor Banks and four IntelliCap 2000 Automatic Capacitor Controls.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Authorize the City Manager, or his designee, to issue a purchase order to Wesco|Anixter in the amount of $382,386.75 for the purchase of four (4) 1800kvar Capacitor Banks and (4) IntelliCap 2000 Automatic Capacitor Controls.
b. Decide under Corona Municipal Code Section 3.08.140(E), that competitive bidding has been satisfied based upon the reasons provided in the “Basis for determination of competitive bidding” section of this report.
c. Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders and amendments up to the amount authorized by Corona Municipal Code Section 3.08.080(I) which is equivalent to 10% or $38,238.68.
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BACKGROUND & HISTORY:
The City of Corona’s Utilities Department is dedicated to ensuring reliable electrical energy is provided to the ratepayers. Capacitor banks are used to store electrical energy and then use it, when needed, to correct power factor lags in a power supply. Capacitor banks consist of several capacitors connected in a series to form an energy storage system. This equipment helps maintain optimum efficiency and prevents undesirable dips or surges in voltage which can damage electrical equipment.
The IntelliCap Automatic Capacitor Control is also used and is engineered for the control of capacitor banks in electric distribution systems which will operate autonomously regarding the control strategy selected. These controls reduce the unused capacity, regulate voltage, monitor line conditions, and protect the capacitor bank.
As of now, there are seven Capacitor Bank sites servicing large business centers and commercial areas served by the City of Corona with more than half of them installed in 2003/2004. Four of the seven Capacitor Banks are scheduled to be replaced and updated as they approach the end of their operational life. Capacitor Banks have a design lifespan of 20-plus years, but in-service deviations from the specified operating conditions can impact operational life.
ANALYSIS:
The Utilities Department solicited bids on January 24, 2024, pursuant to the Corona Municipal Code Section 3.08.120, Non-public informal bidding procedure, to four suppliers. One bid was received by the bid due date of February 7, 2024.
|
Vendor |
ITEM |
LEAD TIME |
UNIT COST |
UNITS |
TOTAL COST |
|
Wesco|Anixter |
1800kvar Capacitor Bank |
28-34 weeks |
$84,155 |
4 |
$336,620 |
|
|
IntelliCap Auto Capacitor Control |
30-32 weeks |
$3,750 |
4 |
$15,000 |
|
TOTAL |
$351,620 |
|
8.75% tax |
$30,766.75 |
|
Total cost |
$382,386.75 |
BASIS FOR DETERMINATION OF COMPETITIVE BIDDING:
Staff believes that an exception to competitive bidding is warranted for this purchase pursuant to Corona Municipal Code (“CMC”) Section 3.08.140(E), which states as follows:
“(E) Purpose of bidding is otherwise accomplished. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the city and its administrative operations to dispense with public bidding for non-public projects under this chapter.”
Staff believes the purpose of bidding has been otherwise accomplished as staff solicited bids from multiple vendors and Wesco|Anixter was the only vendor that responded to the bid request. Due to the long lead times of the product and the age of the existing equipment, staff recommends issuance of a purchase order to Wesco|Anixter in the amount of $382,386.75 for the purchase of four 1800kvar Capacitor Banks and four IntelliCap 2000 Automatic Capacitor Controls.
FINANCIAL IMPACT:
Funding for the recommended actions is available in the Capacitor Bank Upgrade Operating and Maintenance Project No. 77690 with a current available balance of $450,000.
|
Bid Amount |
$382,386.75 |
|
10% Change Order Authority |
$38,238.68 |
|
Total |
$420,625.43 |
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Action (CEQA), which states that “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination” and is therefore exempt from CEQA. This action involves repairs to existing infrastructure to maintain public health and safety. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - Quote by Wesco|Anixter
2. Exhibit 2 - Design and Specifications for Capacitor Controller