City Council Agenda Report
Meeting Date: November 21, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Change Order No. 19 to the Amended and Restated Services Agreement with Siemens Energy Inc.
Recommendation
A. Find that approval of the proposed action is exempt from California Environmental Quality Act (CEQA) review, because it is a government fiscal 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 Purchase Contracts with Siemens Energy provides for facility and equipment maintenance or repairs, such work is categorically exempt from CEQA review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of existing structures, facilities, or equipment, and involves negligible or no expansion of an existing use; and B. Approve and authorize the City Administrator to execute Change Order No. 19 to the Amended and Restated Services Agreement with Siemens Energy Inc. (Siemens Energy), in substantially the same form as submitted, to perform a Feedwater Pump Motor Life Expectancy Analysis Program Test and add contingency funds for extra work authorizations executed during the December 2023 outage.
Background
On November 16, 2021, the City Council adopted Resolution No. 2021-41, approving a Purchase and Sale Agreement (PSA) with Bicent (California) Malburg LLC (Bicent) for the acquisition of the Malburg Generating Station (MGS). Under the PSA, the City is required to assume or otherwise comply with certain vendor contracts previously entered by Bicent. As such, the City was obligated to accept the existing Long Term Service Agreement (LTSA) between Bicent and Simens Energy, Inc. (Siemens Energy). On March 21, 2023, the City Council approved Change Order No. 18 to the Amended and Restated Services Agreement with Siemens Energy to perform an L4 generator inspection and maintenance overhaul on two Siemens SGT-800 Combustion Turbines Generators (CTGs) and post-outage Life Expectancy Analysis Program (LEAP) testing.
As assigned, the LTSA was designed for Siemens Energy to provide program parts, non-program parts, miscellaneous hardware, inspection hardware, generator parts, generator scheduled outages, steam turbine parts, steam turbine scheduled outages, scheduled outages services, and program management services for the ongoing needs of MGS.
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 the electricity demand is lower. During the scheduled outage, the power plant will optimize downtime by scheduling facility upgrades, repairs, and other maintenance work. The generators at MGS have accumulated approximately 60,000 equivalent operating hours since the last L4 inspection, which requires them to be serviced during the scheduled maintenance outage from December 1, 2023 through December 16, 2023. VPU staff has secured the necessary resource adequacy capacity during the outage.
The 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 essential to provide maintenance of the generators during the scheduled outage, which includes a LEAP test on two Feedwater Pump Motors. A LEAP test establishes the condition and remaining lifetime of a motor or generator's stator winding insulation system. The LEAP service includes condition assessment, expected lifetime, and recommendations for operations and maintenance actions.
Change Order No. 19 will allow Siemens Energy to perform a LEAP test on two Feedwater Pump Motors during the scheduled L4 Inspection Outage and cover unforeseen or emergent parts and services that Siemens Energy may require during the L4 Inspection Outage.
Change Order No. 19 has been reviewed and approved as to form by the City Attorney’s Office.
Change Order No. 19 contains confidential and proprietary information and will be provided to the City Council under separate cover; it will not be included in the public Agenda Packet.
Fiscal Impact
The fiscal impact is estimated not-to-exceed $174,582. Sufficient funds are available in Electric Fund, Malburg Generation Station Department, Gas Turbine Account No. 055-050-586-529005 for the current fiscal year.
Attachments
None.