City Council Agenda Report
Meeting Date: July 21, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Lilia Hernandez, Deputy City Administrator Subject
Report on Emergency Repair of Combustion Turbine Generator Approved by the City Administrator
Recommendation
Receive and file a report on the emergency repair of Combustion Turbine Generator No. 1 performed by Siemens Energy, including ABB Support, and D2 Industrial Services, LLC, as approved by the City Administrator pursuant to Vernon Municipal Code Section 3.32.250.
Background
On August 21, 2025, the Malburg Generating Station (MGS) experienced an unexpected outage when the Siemens Combustion Turbine Generator No. 1 (CTG 1) unit tripped while operating at a base load of 42.5 Megawatts (MW). The City Administrator and VPU Management were immediately notified of the failure, and the emergency response process was implemented, including notification to the City Administrator that CTG 1 expenditures for repair work and related replacement parts would be considered as Emergency Purchases, pursuant to Section 3.32.250 of the Vernon Municipal Code (VMC).
The initial cause of the trip was identified as a generator overload, which occurred when a permanent rotor segment was detached from the shaft, leading to damage in the exciter winding.
The exciter is a critical component of the generator system, and its failure rendered CTG 1 inoperable until repairs could be completed. With CTG 1 offline, the plant’s dispatch capacity was significantly reduced, affecting its ability to meet load obligations, respond to grid demands, as well as meeting Resource Adequacy (RA) requirements. To thoroughly inspect the unit, immediate mobilization of multiple vendors was necessary to assess the situation, develop a repair strategy, and provide support services to restore the unit to operation as quickly as possible. VPU engaged multiple vendors including Siemens Energy, Inc. and D2 Industrial Services LLC for the necessary repair work.
Siemens Energy, Inc.
Purchase Order (PO) No. 260321 was issued to Siemens Energy, Inc. (Siemens) with ABB as a subcontractor for immediate repairs to CTG 1. The PO was for an amount of $188,820.37 and covered the initial disassembly, diagnosis, repair strategy, and reassembly of the unit.
D2 Industrial Services LLC
Purchase Contract No. 20260096 with D2 Industrial Services, LLC (D2 Industrial) was initially issued for $4,690. During the repair process, additional support was required, resulting in increased expenses. Consequently, approval for a change order in the amount of $4,695 was necessary raising the total for the Purchase Contract to $9,385.
Section 3.32.250 of the VMC states: “In case of an actual emergency which requires immediate purchase of supplies, equipment, or services to address an immediate and unforeseen risk to health, life, property or the environment, or for emergency work to restore or prevent an imminent and unforeseen failure of utility service, the City Administrator may secure, without competitive bidding, at the lowest obtainable price, any supplies, equipment, or services regardless of the amount of the expenditure.” The inspection and repair of the CTG 1 unit was deemed an emergency, as the generator had become inoperable, leaving only one functional CTG to meet MGS operating requirements and meet system reliability. Given the complexity of the repairs and the urgent need for mobilization, the vendors required time to determine the total charges incurred for the CTG 1 emergency repairs. VPU requested approval of the final amounts for the emergency work once final invoices were received. Accordingly, on December 1, 2025, the City Administrator approved the POs and payment to Siemens for a total amount of $188,820.37 and Contract and related change order to D2 Industrial for a total amount of $9,385 for the emergency repair work of CTG 1. The City Administrator’s approval was based on the immediate need to minimize downtime and restore power plant operations, as well as to prevent an imminent failure of utility service.
Emergency purchases approved by the City Administrator pursuant to VMC Section 3.32.250 require that a report detailing the circumstances of the emergency work be provided to the City Council. It was recently identified by the Finance Department that the report related to the CTG 1 emergency repairs had not yet been provided to City Council. City Administration has since made changes to its approval process to ensure that moving forward required reports are provided timely.
Strategic Plan Goals
Goal 4: Enhance Community Infrastructure and Facilities Fiscal Impact
The fiscal impact is not-to-exceed $198,205.37. Sufficient funds to cover the costs were available in the Electric Fund, Malburg Generation Station, Repairs and Maintenance, Account No. 055- 050-586-529000 for Fiscal Year 2025-26.
Attachments
None.