City Council Agenda Report
Meeting Date: May 16, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Services Agreement with Camfil Power Systems
Recommendation
A. Find that approval of the proposed action is exempt from California Environmental Quality Act (CEQA) review, because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines Section 15378. To the extent the future installation of the equipment constitutes a “project”, staff anticipates that the work will be exempt from CEQA review in accordance with CEQA Guidelines Section 15302, because the project consists of the replacement or reconstruction of existing equipment where the new equipment will be located on the same site as the equipment replaced and will have substantially the same purpose and capacity as the equipment replaced; the installation work will be procured through a separate selection process and contract at a later date.
B. Approve and authorize the City Administrator to execute a Services Agreement with Camfil Power Systems (Camfil), in substantially the same form as submitted, to provide engineering and design services for generator cooling filter housing modification for a total amount notto-exceed $250,576; and C. Authorize a contingency amount of 10% or $25,100 in the event of unforeseen changes in the project and grant authority to the City Administrator to issue amendments for an amount up to the contingency amount, if necessary.
Background
The Malburg Generating Station (MGS) has two Siemens SGT-800 Combustion Turbines, each turning its own air-cooled generator. Like a jet airplane engine, the combustion turbine converts natural gas to mechanical energy. This mechanical energy is used to turn the generator, converting the energy to electricity.
The generators at MGS have exhibited evidence of electrical tracking along the outside surface of the insulation due to high levels of hydrocarbon contamination. Electrical tracking can grow quickly with few external symptoms and can result in a catastrophic failure of the generator.
Therefore, upgrading the existing combustion turbine generating cooling inlet filtration housing is needed to address this issue. Such upgrades to the existing generator filter houses will reduce generator contamination and risk of tracking by removing harmful hydrocarbon particulates and allow for extended operating usage of the filters.
In accordance with Vernon Municipal Code (VMC) Section 3.32.080 regarding competitive selection, on March 7, 2023, staff issued a Request for Proposals (RFP) for Engineering and Design Services for Generator Cooling Filter Housing Modification. The RFP was advertised on the City's Planet Bids platform. The scope of work included, but was not limited to, the engineering, design, manufacturing, and delivery of a new air inlet filter house for each of the two units at MGS.
Subsequently, one proposal package was received by the April 10, 2023 deadline. A qualified panel thoroughly examined the proposal utilizing criteria to measure experience, work plan, references, and cost. The proposal received was submitted by Camfil. They exceed the requirements set forth in the RFP. Moreover, their proposal demonstrates expertise and experience through a comprehensive approach to the scope of work. Camfil filtration systems are designed to meet the highest industry standards, providing superior protection against contaminants, improving efficiency, reducing maintenance costs, and extending equipment life.
If the proposed Services Agreement is approved, the new air inlet filter houses will be scheduled for installation during the 2023 MGS Fall Outage, tentatively scheduled in November.
Staff recommends approval of a Services Agreement with Camfil to provide engineering and design services for generator cooling filter housing modification, in the amount of $250,576; and recommends a ten percent (10%) contingency of the total services agreement value, in the event of unforeseen changes in the project for a potential total cost not to exceed $275,676. Camfil’s proposal, dated April 3, 2023, is for $266,049.79. Due to manufacturing delays and to meet the installation deadline for the 2023 MGS Fall Outage, a Purchase Contract in the amount of $15,473.79 was issued to Camfil to perform a site survey report before May 16, 2023. The site survey report, as described in the scope of work, is required to perform a dimensional check of the existing unit to confirm and define the scope of work for the engineering of the air inlet filter houses.
The Purchase Contract amount of $15,473.79 is a component of Camfil’s overall proposal, as such, the total estimated cost of the engineering, design, manufacturing, and delivery of new filters for this part of the project is anticipated not to exceed $291,149.79 including the contingency amount. Camfil’s proposal does not include installation costs. Installation will be considered separately. Therefore, staff will issue a separate RFP in the near future for the installation work.
Pursuant to VMC Section 3.32.030(A), City Council approval is required as the total value of the Services Agreement requested exceeds $100,000. The Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact of this project segment, not including the purchase contract for the site survey, is not-to-exceed $275,676 including the contingency amount. Funds have been budged in the Electric Fund Malburg Generating Station Capital Outlay Account 055-050-586-660000 for the fiscal year 2023-24.
Attachments
1. Services Agreement with Camfil Power Systems