City Council Agenda Report
Meeting Date: March 7, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Donation of Surplus Vernon Public Utilities Equipment to City of Roseville – Electric Utility Recommendation
Approve and authorize the City Administrator to execute the Deed of Gift and Donation Agreement and Release with the City of Roseville – Electric Utility, in substantially the same form as submitted, for the donation of 16 ABB ACS-600 Motor Drive Modules.
Background
The City of Roseville - Electric Utility owns and operates the Roseville Energy Park (REP) power plant. The plant has been in commercial operation since October 2007 and is similarly configured to the Malburg Generating Station (MGS). During the Spring 2022 MGS Outage, the power plant replaced the ABB ACS-600 Motor Drive Modules on Combustion Turbine 1 and Combustion Turbine 2 with state-of-the-art systems. The ABB ACS-600 Motor Drive Modules were original units with over 17 years of service and had become unreliable, in addition to being unsupported.
Accordingly, the modules were replaced with updated versions.
After replacing the ABB ACS-600 Drive Modules with state-of-the art equipment, MGS staff determined that the modules were no longer needed and were deemed surplus equipment.
Pursuant to the City’s procedure for surplus property, the City’s Finance Department assessed whether any other City department had a use for the modules. Finance staff subsequently determined that the outdated drives no longer have a useful life for the City and have limited use or value in today’s market, thus reducing the value from a potential sale via public auction, sale, or bid. The City of Roseville – Electric Utility has expressed interest in utilizing the obsolete ABB drives as spares.
Staff recommends City Council approve the donation of 16 ABB ACS-600 Motor Drive Modules to the City of Roseville – Electric Utility, as the modules are of no operational use or have any value to MGS. Roseville has not upgraded its motor drives and these components, which are nearly impossible to obtain, will aid their power plant. The City of Roseville and Vernon are members of the California Utilities Emergency Association and have a Mutual Assistance Agreement. Additionally, the City of Roseville – Electric Utility and MGS have a long history of assisting each other when units are not operational.
The proposed Deed of Gift/Donation and Release has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. City of Roseville – Electric Utility – Deed of Gift and Donation Agreement and Release