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W A T F R E N E R G Y L <br />RIVERSIDE PUBLIC UTILITIES <br />.�W& <br />Board Memorandum <br />P U B L I C U T I L I T I E S <br />BOARD OF PUBLIC UTILITIES DATE: AUGUST 27, 2018 <br />ITEM NO: 7 <br />SUBJECT: SUPPLEMENTAL AGREEMENT FOR RFP -1798 TO LEIDOS ENGINEERING, LLC OF <br />HENDERSONVILLE, TENNESSEE, TO PROVIDE PROFESSIONAL SERVICES FOR <br />THE SUBSTATION CAPACITOR UPGRADE PROJECT IN THE AMOUNT OF $277,234 <br />ISSUE: <br />Award a Supplemental Agreement for RFP -1798 to Leidos Engineering, LLC. of Hendersonville, <br />Tennessee, to provide professional services for the Substation Capacitor Upgrade Project in the amount <br />of $277,234. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities: <br />1. Award a Supplemental Agreement for RFP -1798 to Leidos Engineering, LLC. of Hendersonville, <br />Tennessee, to provide professional services for the Substation Capacitor Upgrade Project in the <br />amount of $277,234; and <br />2. Authorize the City Manager, or his designee, to execute a Supplemental Agreement to the <br />Professional Consultant Services Agreement with Leidos Engineering, LLC to provide professional <br />services for the Substation Capacitor Upgrade Project, in an amount not -to -exceed $277,234. <br />BACKGROUND: <br />On January 22, 2018, the Board of Public Utilities approved Work Order No. 1814007 for the Substation <br />Capacitor Upgrade Project in the amount of $5,306,000. The work order total includes engineering design, <br />technical and construction support, equipment purchase, demolition of the existing capacitors, <br />construction, and inspection. <br />Substation capacitor banks (capacitors) are critical components for the reliability of the electrical power <br />system. Capacitors are operated to support system voltage and provide reactive power to Riverside Public <br />Utilities' (RPU) electrical power system. Reactive power must be supplied to most types of electric <br />equipment, such as motors and transformers. Capacitors also contribute to the efficiency of the electrical <br />power system by reducing system losses, improving system capacity, and ensuring that customers receive <br />power at the proper voltage. In addition, capacitors maintain the proper power factor at the interface with <br />Southern California Edison (SCE) at SCE's Vista Substation. The proper power factor at SCE's Vista <br />Substation is identified in the Interconnection Facility Agreement between SCE and the City of Riverside. <br />Many of the capacitors installed in RPU's system have exceeded or are reaching the end of their design <br />life. Also, some of these capacitors have limited power regulating capabilities. Operating equipment <br />beyond its design life represents an undesirable safety concern to RPU field staff and residents, and a <br />Page 32 <br />