City Council Agenda Report
Meeting Date: August 18, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Purchase Contract with Sulzer Pump Services (US) 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 or former use; B. Approve and authorize the issuance of a Purchase Contract with Sulzer Pump Services (US) Inc. for the complete overhaul and refurbishment of a Sulzer boiler feed water pump, for an amount not-to-exceed $142,217.61; and
C. Authorize a contingency amount of 10% (or $14,221.76) in the event of unforeseen expenses that might arise during the overhaul process, and grant authority to the City Administrator to approve and execute change orders up to the contingency amount, if necessary.
Background
The Malburg Generating Station (MGS) is equipped with two (2) high-pressure boiler feed pumps, each operating at 100 percent. These pumps are critical components of the steam generation process, supplying feedwater from the deaerator to the heat recovery steam generators (HRSGs). The pumps deliver water at a pressure sufficient to overcome the boiler's operating pressure and any system losses. The continuous supply of feedwater is crucial for steam production, which drives the steam turbine and generates electricity.
On July 7, 2026, plant personnel identified a thrust bearing failure on one of the high-pressure boiler feed pumps. The failure raised concerns about potential damage to the pump shaft and other critical internal components. As a precaution, the pump was taken out of service and sent to Sulzer Pump Services (US) Inc. (Sulzer), the original equipment manufacturer (OEM), for a comprehensive inspection and evaluation.
Sulzer inspected the pump and determined that a complete overhaul is necessary to restore it to a safe and reliable operating condition. During the inspection, Sulzer confirmed that the pump sustained damage to its shaft and other essential internal components. The recommended scope of work includes replacing worn and damaged components, restoring critical tolerances to OEM specifications, reassembling the pump, conducting performance testing, and final certification.
The overhaul is expected to extend the service life of the critical boiler feed pump and maintain the reliable operation of MGS.
The proposed Purchase Contract is exempt from competitive bidding and competitive selection pursuant to Vernon Municipal Code (VMC) Sections 3.32.110(A)(2) and 3.32.110(B)(1), respectively, because Sulzer is the OEM and maintains the proprietary engineering specifications, specialized tooling, and technical expertise required to perform the overhaul and certify the pump to its original performance specifications.
VPU staff recommends that City Council approve the issuance of a Purchase Contract with Sulzer for the complete overhaul and refurbishment of the high-pressure boiler feed pump at MGS, for a total amount not-to-exceed $142,217.61. Additionally, VPU staff recommends a contingency amount of ten percent (10%), or $14,221.76, in the event of unforeseen expenses that might arise during the overhaul process. Pursuant to VMC Section 3.32.030(A), City Council approval is required for the proposed contract, as the total value of the contract exceeds $100,000.
The Sulzer Quote has been reviewed and approved as to form by the City Attorney’s Office.
Strategic Plan Goals
Goal 6: Optimize Public Utility Operations to Ensure Affordable Services Fiscal Impact
The fiscal impact is not-to-exceed $156,439.37. Sufficient funds are available in the Electric Fund, Malburg Generating Station, Repairs & Maintenance, Account No. 055-050-586-529000.
Attachments
1. Sulzer Pump Services (US) - Quote – OP-2892801
2. Sulzer Pump Services (US) - Sole Source Letter