City Council Agenda Report
Meeting Date: September 19, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Services Agreement with ABB Motors and Mechanical Inc. (ABB) Recommendation
A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use;
B. Approve and authorize the City Administrator to execute a Services Agreement with ABB ABB, in substantially the same form as submitted, to procure spare parts for ABB’s GBA 1250 generator; for a total amount not-to-exceed $136,529.15 (consisting of $118,721 for parts and services, plus 15% or $17,808.15 for taxes and duties); and C. Authorize a contingency amount of ten-percent (10%) or $11,872, for any other expenses or costs not included in the proposal, and grant authority to the City Administrator to issue Change Orders for an amount up to the contingency amount, if necessary.
Background
The Malburg Generation Station (MGS) power plant is operationally required to offer full resource adequacy to the California Independent System Operator (CAISO). MGS is a 139MW 2x1 combined cycle generating station comprised of two Siemens SGT-800 Combustion Turbines coupled to an air/water-cooled ABB Type GBA 1250 A LG Synchronous Generator (GBA 1250).
MGS undergoes a scheduled major generator maintenance outage every 60,000 equivalent operating hours or roughly 6 to 8 years, referred to as an “L4 inspection”, and this historically takes place in the fall or spring when electric demand is lower. The generators have accumulated approximately 60,000 equivalent operating hours since the last L4 inspection, which requires them to be serviced this coming fall.
MGS is scheduled for a maintenance outage from December 1, 2023 through December 16, 2023. To ensure compliance with the CAISO and continued operation of the MGS power plant, it is essential to provide maintenance of ABB’s Combustion Turbine Generators (CTGs) during the scheduled outage. During the scheduled outage, both CTG-1 and CTG-2 generators will be fully disassembled for service, including removing the central rotor. During this inspection, many electrical and mechanical items will be serviced and/or replaced. Most of these parts can only be replaced during this type of major maintenance due to the required removal of major components to allow access to these parts. Therefore, all parts provided by ABB are planned to be consumed during this inspection, requiring all parts to be purchased in advance and available on-site and on time.
The proposed Services Agreement between the City and ABB is exempt from competitive bidding pursuant to Sections 3.32.110 (A)(2) and (B)(1) of the Vernon Municipal Code (VMC), as the necessary parts can only be provided by ABB, the original equipment manufacturer. ABB is the world’s leading supplier of synchronous motors and generators.
Staff recommends City Council approve the proposed Services Agreement to procure spare parts for ABB’s GBA 1250 generator, in the amount of $118,721, plus 15% or $17,808.15 for taxes and duties for a total of $136,529.15, as well as a contingency amount of ten-percent (10%) or $11,872, for any other expenses or costs not included in the proposal, for a combined total not-to-exceed $148,401.15.
The proposed Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $148,401.15 (including the contingency). Sufficient funds are available in the VPU Budget, Electric Fund, MGS, Gas Turbine Account No. 055-050-586- 529005 for the current fiscal year.
Attachments
1. Services Agreement – ABB Motors and Mechanical Inc.