CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
title
Approve the award of Change Order #1 to Contract 21-097, Comprehensive Electric Utility Cost-of-Service Rate Study, to Utility Financial Solutions, LLC for an amount not to exceed $1,500 and a total award of $69,590
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BACKGROUND:
The City Manager awarded Contract 21-097 to Utility Financial Solutions, LLC on March 2, 2021 for a three year term with a completion date of December 31, 2023. The purpose of this contract is to contract with a firm that will perform a rate study to help guide the Electric Utility with specific financial goals in mind.
DISCUSSION:
UFS completed all portions of the CY2021 rate study except VAR pricing. As work began on the VAR pricing portion of the project UFS informed the City that there was additional work, not scoped, to accommodate the City’s billing system as well as reduce workload on employees when generating power factor penalty fees.
The additional scope of work will provide rates to sustainably administer a power factor penalty program which will enhance grid efficiency. Recommendations from this report will be brought to NEST, PUAB and Council for action once completed.
FISCAL IMPACT:
CIP#: N/A
Electric Utility Rate Studies are expensed to the Other Professional Service account listed below. A total of $10,000 has been budgeted for this expense in 2022. The requested change order of $1,500 is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40101300-531309 |
Electric Utility |
$11,500 |