City Council Agenda Report
Meeting Date: June 6, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Purchase Contract with Insight Public Sector, Inc.
Recommendation
A. Find that the proposed action is exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15303, because the project consists of installation of small, new equipment in existing facilities; and B. Approve and authorize the issuance of a Purchase Contract with Insight Public Sector, Inc. in an amount not-to-exceed $60,530.37 for the purchase of an uninterruptible power supply.
Background
The Malburg Generating Station (MGS) power plant is operationally required to offer full resource adequacy to the California Independent System Operator (CAISO) daily. To ensure compliance with the CAISO and continued operation of the MGS power plant, it is imperative that the two H.
Gonzalez engines (Gonzales Units), located at Station A, maintain constant operation. The Gonzales Units are responsible for providing peaking energy into the CAISO electric grid, for providing local resource adequacy (capacity) to Vernon Public Utilities (VPU) and are also critical for ensuring black start capability to power emergency City and Utility operations during a grid blackout event.
Staff explored options to reduce the probability of downtime, equipment failure, and damage to vital components in the event of a widespread outage. An uninterruptible power supply (UPS) can provide black start capabilities to restore power to the Gonzales Units and ultimately provide the necessary start-up capability to repower MGS if the power plant goes down due to a systemwide grid blackout. It is a crucial component necessary for the continuity of the utility’s electric supply because, without an initial source of power for startup, the plant cannot generate electricity. The UPS will also help to ensure a seamless transition back to utility power from the generating units when the grid is fully restored. The installation of a UPS at the power plant can guard against downtime throughout the entire plant infrastructure to ensure that power continues to reach customers even during severe outages. A UPS also secures a safe shutdown of the Gonzales Units in the event of power loss to the auxiliaries under normal operation. Without the UPS in place, there is an inherent risk of a significant oil spill on the loss of power to the auxiliaries that this UPS unit will eliminate.
As a registered participant of OMNIA Partners, a cooperative purchasing organization, Insight Public Sector, Inc. (Insight) is exempt from competitive bidding pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5). OMNIA Partners is the nation’s largest and most experienced cooperative purchasing organization for the public sector. All contracts that are available through OMNIA Partners are competitively solicited and publicly awarded by a lead agency using a competitive solicitation process consistent with applicable procurement laws and regulations. Insight simplifies procurement by ensuring organizations receive the best overall government pricing, through OMNIA Partners, on their broad portfolio of products.
Accordingly, staff requests the issuance of a Purchase Contract to Insight for the purchase and warranty of a Secure Power UPS, for a total amount not to exceed $60,530.37 (consisting of UPS purchase: $56,419.99 & extra warranty: $4,110.38).
City Council approval is required pursuant to VMC Section 3.32.030(B), which states "if, in the 12 months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000 pursuant to contracts with the vendor, then the proposed new, renewed, or otherwise amended contract shall be approved only by the City Council." In Fiscal Year 2022-23, Insight has been awarded $578,947.64 in agreements.
Fiscal Impact
The fiscal impact is estimated at $60,530.37. Sufficient funds are available in the VPU Electric Fund, System Dispatch, Capital Outlay Account No. 055-050-555-660000.
Attachments
1. Insight Public Sector – Quote Number 225505904
2. Insight Public Sector – Quote Number 225505968