City Council Agenda Report
Meeting Date: September 16, 2025
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Senior Management Analyst
Subject
Amendment No. 2 to Labor and Materials Contract with Matheson Tri-Gas, Inc.
Recommendation
Approve and authorize the City Administrator to execute Amendment No. 2 to the Labor and Materials Contract with Matheson Tri-Gas, Inc., in substantially the same form as submitted, to extend the term of the Contract by an additional five-month period, for a total amount not-toexceed $15,000.
Background
The Malburg Generating Station (MGS) is a 139-Megawatt (MW) 2x1 combined cycle generating station comprised of two Siemens SGT-800 Combustion Turbines. MGS requires various specialty gases for its daily operations. To comply with the Environmental Protection Agency (EPA) rules and regulations, MGS uses a Continuous Emission Monitoring System (CEMS) to monitor and record emissions data from the power plant. Calibration gas, a type of specialty gas, is essential for the operations of the CEMS. These gases are carefully selected to meet strict guidelines and serve as a known source for the calibration of the CEMS, ensuring compliance with EPA regulations. Vernon Public Utilities (VPU) must procure the necessary calibration gases to operate within the permitted regulations.
Accordingly, following a Request for Bid (RFB) process, on September 15, 2022, the City Administrator approved a Labor and Materials Contract with Matheson Tri-Gas, Inc. (Matheson Tri-Gas) for the purchase of specialty gases in the amount of $80,000 for a term of three years.
Subsequently, on April 2, 2024, the City Council approved Amendment No. 1 to increase the contract amount by $90,000 due to the optimization of the MGS operating profile, which led to a rise in nitrogen usage. The current agreement is set to expire on September 14, 2025.
As per Vernon Municipal Code (VMC) Section 3.32.070, on July 24, 2025, staff issued an RFB to solicit bids for the supply of specialty gases for MGS. The RFB was advertised on the City’s Planetbids platform and in the local newspaper. However, only one bid was received during this process. Upon review, staff determined that the bid did not meet the city’s requirements due to concerns about product availability, reliability, and pricing as well as relevant experience. As a result, the City exercised its right to reject the bid in accordance with VMC Section 3.32.170.
To ensure the continuity of service and allow sufficient time to reissue the RFB and assess new bids, VPU staff recommends the City Council approve the proposed Amendment No. 2 to extend the term of the contract by an additional five (5) month period and increase the not-to-exceed amount by $15,000, bringing the total contract amount to $185,000. Pursuant to VMC Section
3.32.030(A), City Council Approval is required for the proposed amendment as the total value of the contract exceeds $100,000.
Amendment No. 2 has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $15,000. Sufficient funds are available in the Electric Fund, Malburg Generating Station, Repairs & Maintenance, Account No. 055-050-586-529000 for the current fiscal year.
Attachments
1. Amendment No. 2 – Matheson Tri-Gas, Inc.