City Council Agenda Report
Meeting Date: December 3, 2024
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Efren Peregrina Renteria, Procurement Specialist Subject
Purchase Order with Donaldson Company, Inc.
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 existing equipment and involves negligible or no expansion of an existing use;
B. Find that the best interests of the City are served by a direct award of a Purchase Order to Donaldson Company, Inc. (Donaldson), without a competitive selection process pursuant to Section 3.32.110 (B)(2) of the Vernon Municipal Code (VMC); and C. Approve the issuance of a Purchase Order with Donaldson in an amount not-to-exceed $106,106.04 for the purchase and delivery of Combustion Turbine (CT) air inlet filters at the Malburg Generation Stations (MGS).
Background
MGS employs high-efficiency particulate filtration to eliminate impurities from the combustion air entering the CTs, similar to the function of an automobile air filter. The replacement of these filters is determined through a condition-based analysis that assesses efficiency degradation throughout their operational lifespan. Recent evaluations of these air inlet filters suggest that they will likely require replacement during the MGS December 2024 Outage, scheduled from December 2nd through December 14th. Inadequate filtration of incoming air has previously been associated with severe turbine failures. Effective air filtration is crucial, not only for maintaining efficiency but also for ensuring the ongoing operational reliability of the CTs. Over time, air inlet filters deteriorate as airborne particulates accumulate and obstruct the filtration system, leading to decreased efficiency of the CTs. Consequently, when the filtration system fails to operate at its optimal capacity, MGS consumes more fuel, which drives the CT towards a differential pressure setpoint across the inlet and outlet of the air inlet filter, ultimately resulting in a significant decrease in output or a complete shutdown of the CT.
MGS has utilized three distinct mainstream air inlet filter brands over the last nine years, namely GORE, American Air Filter, and Donaldson. Throughout this timeframe, operational data was gathered for each brand, focusing on efficiency analysis and lifespan metrics. A fourth contender, Camfil Farr, sought to enter the market at MGS and employed an instrumented test trailer onsite to evaluate their filters against those of GORE, American Air Filter, and Donaldson. The testing was overseen by the Plant Engineer at MGS. The results indicated that the Donaldson air inlet filter outperformed the other brands in terms of efficiency and durability. With a legacy of over 100 years, Donaldson stands as one of the foremost providers of specialized filtration technologies and high-quality air inlet filters and components. As a result, they have been the exclusive supplier of CT air inlet filters to MGS for several years, owing to their superior filter performance.
The proposed Purchase Order with Donaldson can be exempt from the competitive selection process pursuant to Section 3.32.110 (B)(2) if a direct award is found to be in the best interests of the City. VMC Section 3.32.110(B)(3) indicates that the City Council has the authority to make such a finding when the proposed contract exceeds $100,000. The City’s best interests are served by a direct award based on Donaldson’s demonstrated expertise and their ability to provide the necessary services in a manner that will not affect plant operation. Air inlet filters from Donaldson are of superior quality, lasting on average about five years in comparison to other filters that only last up to 12 months, which will result in cost savings for the City. While air inlet filter performance and cycles are generally driven by local air quality, which can vary significantly depending on projects affecting the air quality surrounding the power plant, Donaldson’s air inlet filters continuously provide outstanding lasting performance.
In an effort to obtain a competitive price for the City, staff researched vendors that sell Donaldson CT air inlet filters. The following five (5) vendors provided informal quotes.
1. Donaldson: $106,106.04 (includes taxes and freight)
2. Pure Process Filtration Inc.: $113,291.78 (includes taxes and freight)
3. Power Flow Fluid Systems: $124,937.08 (includes taxes and freight)
4. MRC Global: $143,262.50 (includes estimated taxes and freight)
5. Sun Source: $185,106.00 (includes taxes and freight) Donaldson provided the lowest quote. Donaldson not only offers a competitive price but has also demonstrated a lifespan that can exceed that of its competitors by a factor of up to three.
Therefore, staff recommends approval of a Purchase Order with Donaldson, in an amount not to exceed $106,106.04, for the proposed purchase of the CT air inlet filters needed at MGS, as Donaldson’s products continuously prove superior in performance while also providing the least cost solution. Pursuant to VMC Section 3.32.030(A), City Council approval is required as the total value of the Purchase Order requested exceeds $100,000.
Donaldson’s terms and conditions have been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
Approval of this action would require an appropriation of $106,106.04 to Electric Fund Budget, Malburg Generation Station, Repairs and Maintenance, Account No. 055-050-586-529000 for the current fiscal year from available Electric Fund Balance.
Attachments
1. Donaldson Company, Inc. – Quote
2. Pure Process Filtration Inc. – Quote
3. Power Flow Fluid Systems – Quote
4. MRC Global – Quote
5. Sun Source – Quote