REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 to the Agreement with Mesa Energy Systems, Inc. for As-Needed HVAC and Chiller Inspection and Maintenance Services for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On December 14, 2021, the City Council authorized the execution of the agreement (Agreement) with Mesa Energy Systems, Inc. (Mesa) for a maximum compensation of $750,000 over a five-year term, ending on December 31, 2026. Mesa provides as-needed maintenance, repair, and inspection services for the heating, ventilation, chiller, and air conditioning (HVAC) systems of the City's Electric Utility, Silicon Valley Power (SVP). SVP owns and operates buildings equipped with electronically controlled equipment that rely on HVAC systems to maintain proper operating temperature.
This Agreement resulted from a competitive procurement process. The maximum compensation was primarily calculated based on as-needed repair services and maintenance, repair, and inspection services for the City's three power plants. On February 22, 2024, Amendment No. 1 to the Agreement with Mesa was executed to include quarterly maintenance services for an additional 16 substation sites and adjust labor rates in accordance with the price escalation provisions of the Agreement.
DISCUSSION
Since the execution of the amendment, SVP has increasingly required Mesa's services for (1) quarterly substation maintenance; (2) large ongoing projects such as the upgrade of the HVAC system at SVP's 24X7 control room; and (3) maintenance of aging systems at the DVR power plant. In addition, SVP anticipates several new substations, which will be completed in the next few years, will also require Mesa's services. Consequently, staff anticipates that the need for future services will exceed the original maximum compensation of $750,000 by mid-2024. To ensure uninterrupted services, staff recommends increasi...
Click here for full text