CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: JANUARY 9, 2024
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT FOR ELECTRICAL EQUIPMENT INSULATOR
GAS MANAGEMENT SERVICES
ATTACHMENT (Y/N): YES ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve an agreement (Agreement) with DILO Production, Inc. dba DILO Direct (DILO) for comprehensive electrical equipment insulator gas management services (Services), in an amount not to exceed $250,000 with a 15% contingency for as-needed extra services, for a five-year term with a 12-month extension option to complete in-progress Services; and
2) Authorize the Public Utilities General Manager or designees, on behalf of the City of Anaheim (City), to execute and deliver the Agreement and any related documents and take such actions as are necessary or advisable to implement, fund, and administer the Agreement.
DISCUSSION:
At its meeting on December 20, 2023, the Public Utilities Board (PUB) recommended that the City Council approve these actions.
Anaheim Public Utilities (APU) requires professional services to manage handling and compliance activities associated with insulator gas used in high voltage electrical equipment. The insulator gas used throughout the utility industry is sulfur hexafluoride (SF6), which is a colorless, odorless, non-flammable, and non-toxic gas that suppresses electrical arcs in equipment such as circuit breakers and switchgear. The use of SF6 gas allows electrical equipment at substations to be enclosed in a building in a much smaller footprint than traditional, open-air substations, or placed in vaults to support underground conversion projects.
While SF6 gas is useful due to its non-conductive properties, it is regulated by the California Air Resources Board (CARB) and requires special handling and compliance reporting. CARB regulations require that the gas be recovered for recycling and that gas transfers be documented and reported. CARB regulations will eventually phase out the 201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
Agreement for Electrical Equipment Insulator Gas Management Services January 9, 2024
use of SF6, and APU is already transitioning to alternative solutions where feasible and reliable.
The scope of work is for a firm to transport retired electrical equipment to an off-site facility, extract the SF6 gas from the equipment, and send equipment for final recycling or disposal. The scope of work also includes provisions for providing replacement gas and testing of gas cylinders.
In September 2023, APU issued a Request for Proposals (RFP) through the City’s online procurement system. Fifteen firms reviewed the RFP, but only one firm, DILO, submitted a proposal. APU reviewed DILO’s proposal in accordance with the qualifications-based selection criteria outlined in City Council Policy 4.1, including DILO’s ability to perform the work, its methods and techniques employed, its qualifications and availability of project team members, its record of success on similar projects, the reasonableness of its proposed fees, and its ability to comply with the City’s standard terms and conditions.
DILO was awarded an agreement as the lowest responsible bidder in a similar bid in 2019, and there have been no issues with their responsiveness or level of service. The costs in the current proposal will remain similar to the existing rates. DILO conducts gas management services for other utilities, including Southern California Edison, Imperial Irrigation District, the Los Angeles Department of Water and Power, and the Sacramento Municipal Utilities District. In addition to conducting gas extraction services, DILO also manufactures, calibrates, and repairs the specialized gas extraction equipment used by APU and other utilities nationwide, making them well qualified to conduct these Services.
APU has historically spent approximately $30,000 annually on insulator gas management Services and has budgeted $50,000 annually in anticipation of retiring an increasing amount of electrical equipment and continuing to replace them with alternative solutions. The scope of work is to be performed over a five-year period with an option for a 12-month extension to complete in-progress Services.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2023/24 restricted Electric Utility budget. Future funding will be subject to City Council’s approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Agreement for Sulfur Hexafluoride Gas Management Services