REPORT TO COUNCIL
SUBJECT
Title
Delegation of Authority to the City Manager to Negotiate and Execute Various Agreements for Silicon Valley Power (SVP) for the Purchase of Supplies and Services Following Competitive Processes with the following vendors:
1. Bay Valve Service and Engineering, LLC for valve Inspection, maintenance, and repair services;
2. Associated Power Solutions for battery maintenance services;
3. Electrical Maintenance Consultants, Brush Americas, and Mitsubishi Powers Americas, Inc. for generator maintenance services;
4. Axis Mechanical Group, HPI, LLC., and Mitsubishi Power Americas, Inc. for Technical Field Advisor services;
5. Puretech and Evoqua Water Technologies LLC to provide portable mixed bed and anion demineralized bottle rental and exchange services;
6. Burns and McDonnell Engineering Company, Inc.; Electrical Consultants, Inc.; HDR Engineering, Inc.; Leidos Engineering, LLC; Power-Tech Engineers, Inc.; SEL Engineering Services, Inc.; Soudi Consultants, Inc.; TRC Solutions, Inc.; and Worley Group, Inc. doing business as Advisian to provide electric utility engineering services for electric protection, communications, and control;
7. BSI Services and Solutions, Inc. and ESCI, Inc. to provide Environmental Health and Safety consulting and training services;
8. TR International Trading Company for salt delivery services;
9. Pacific Star Chemical dba Northstar Chemical for delivery of bulk sulfuric acid; and
10. Univar for delivery of bulk chemicals
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
EXECUTIVE SUMMARY
In order to support the various maintenance and regulatory needs of the electric utility, SVP contracts with over one hundred contractors, consultants, and other vendors to provide services and products. During the last several months, the Purchasing Division of the Finance Department has published a number of solicitations pursuant to applicable provisions of City Code Section 2.105 using the City’s e-procurement system.
Staff recommends that the City Manager be authorized to negotiate and execute agreements associated with these solicitations to the following vendors:
1. Bay Valve Service and Engineering, LLC for valve Inspection, maintenance, and repair services in an amount not to exceed $1,500,000 for an initial three-year term with two one-year options to renew.
2. Associated Power Solutions for battery maintenance services in an amount not to exceed $1,500,000 for an initial five-year term with up to five one-year options to renew.
3. Electrical Maintenance Consultants, Brush Americas, and Mitsubishi Powers Americas, Inc. for generator maintenance services in an amount not to exceed $3,000,000 for an initial five-year term with up to five one-year options to renew.
4. Axis Mechanical Group, HPI, LLC., and Mitsubishi Power Americas, Inc for Technical Field Advisor (TFA) services in an amount not to exceed $1,050,000 for an initial five-year term with up to five one-year options to renew.
5. Puretech and Evoqua Water Technologies LLC to provide portable mixed bed and anion demineralized bottle rental and exchange services in an amount not to exceed $650,000 for an initial five-year term with up to five one-year options to renew.
6. Burns and McDonnell Engineering Company, Inc.; Electrical Consultants, Inc.; HDR Engineering, Inc.; Leidos Engineering, LLC; Power-Tech Engineers, Inc.; SEL Engineering Services, Inc.; Soudi Consultants, Inc.; TRC Solutions, Inc.; and Worley Group, Inc. doing business as Advisian to provide electric utility engineering services for electric protection, communications, and control in an aggregate amount not to exceed $20,000,000 for an initial five-year term with up to five one-year options to renew (four million dollars per year shared among nine engineering firms based on project assignment).
7. BSI Services and Solutions, Inc. and ESCI, Inc. to provide Environmental Health and Safety consulting and training services in an amount not to exceed $1,100,000 for an initial five-year term with up to five one-year options to renew.
8. TR International Trading Company for salt delivery services in an amount not to exceed $300,000 for an initial five-year term with five one-year options to renew.
9. Pacific Star Chemical doing business as Northstar Chemical for delivery of bulk sulfuric acid in an amount not to exceed $300,000 for an initial five-year term with five one-year options to renew.
10. Univar Solutions for delivery of bulk sulfuric acid in an amount not to exceed $200,000 until such time as the City can enter into an agreement through Bay Area Chemical Consortium.
Further details about each of these solicitations and the associated services is in the following background and discussion sections.
Authority to Negotiate and Execute
It is not typical to include this number of agreements in one Report to Council, but it is needed to continue to provide service under current staff limitations. In other words, this is a new procurement strategy to continue procurements within our limited capacity and receive the appropriate Council direction to proceed. Consolidating this action and obtaining delegated authority removes workload and allows for staff to focus on the actual procurement and contract process.
Recent Purchasing Activity
During the last two years, SVP and the Purchasing Division of the Finance Department have been working closely together to perform solicitations pursuant to applicable provisions of City Code Section 2.105. During this time, over fifty solicitations have been completed using competitive processes including cooperative purchases, informal bids, formal bids, Request for Proposals (RFP), and Statements of Qualifications (SOQ). Several of these solicitations have resulted in multiple awards. In some cases, a master agreement is awarded with multiple contractors and a secondary informal bidding process takes place for specific scopes. In addition to issuing new solicitations, SVP and Purchasing took action to extend the term of over fifty agreements from three years to five years in order to maximize the value of the solicitation process.
Staff Limitations
This activity has occurred while the contracts manager assigned to SVP has also been primarily assigned to support the Emergency Operations Center during the pandemic. On September 28, 2021; Council authorized the addition of a second Contracts Manager position in the Finance Department to be funded by SVP and assigned to support SVP. An offer was recently made to fill that position. In February, the Contracts Manager already assigned to SVP resigned leaving a new position vacant. Using the previous recruitment, staff has initiated the process to fill that newly vacant position. However, both purchasing positions are not currently filled and there is currently no dedicated purchasing staff for SVP. In addition, the Attorney assigned to SVP (who reviews and works on all these items) recently left the City. This will cause additional capacity constraints.
Upcoming Items
Based on current staffing constraints and the requirement to enter into contracts to operate the system, staff is taking a different procurement approach than past to facilitate the work with appropriate Council approval. There will be other items for Council consideration on upcoming agendas to maintain continuity of services.
BACKGROUND
Silicon Valley Power (SVP), the City of Santa Clara’s Electric Utility owns significant assets requiring ongoing maintenance including three power plants in City limits, several remote assets, substations, as well as transmission and distribution lines throughout the City. Additionally, SVP is required to comply with a number of safety and regulatory requirements including North American Electric Reliability Corporation (NERC), Western Electricity Coordinating Council (WECC), Occupational Safety and Health Administration (OSHA), and Bay Area Air Quality Management District (BAAQMD).
Most of the services referenced in this report are provided at SVP’s power generation facilities located in City of Santa Clara: (1) The main facility, the Donald Von Raesfeld Power Plant (DVR), is a 2x1 combined cycle power plant rated at 147 Megawatts of electrical power, (2) City of Santa Clara Cogeneration Plant (Cogen), is a cogeneration facility that utilizes two gas turbines for power generation. Waste heat from Cogen is collected to generate steam for supply to a paper mill. This facility is rated at 7 Megawatts, (3) The Gianera Generating Station (Gianera), the City’s peaking generation facility, is rated at 49.5 Megawatts of electrical power.
Through this action, staff recommends that the City Council authorize the City Manager to execute contracts based on awards from these solicitations to expedite processing time.
DISCUSSION
Valve Inspection, Maintenance, and Repair Services
SVP’s power plants have boiler system components including high pressure steam superheaters, high pressure steam drums, low pressure steam superheaters, low pressure steam drums, economizers, deaerator tanks, and flash tanks. These components have associated safety valves that require periodic testing, inspection, maintenance, repair, and replacement. Additionally, the plants contain air and gas systems that require valve testing, inspection, repair, and maintenance. The services are highly specialized and SVP requires a qualified contractor to perform these critical services.
In 2021, the City published a formal Request for Bids (RFB) for as-needed valve testing, inspection, maintenance, and repair services. The City did not receive any bids.
Because there were no bids submitted, staff reached out to Bay Valve Service and Engineering, LLC (Bay Valve) for rates. Bay Valve is the incumbent provided and has been providing services to SVP for almost 20 years. SVP has been satisfied with the services provided by Bay Valve. Staff recommends awarding an agreement to Bay Valve to provide the required valve testing, inspection, maintenance, and repair services. There are a number of critical projects requiring this service including annual and 3-year required safety valve testing, high pressure bypass valve replacement, and critical control valve replacements.
The proposed agreement includes provision of all labor, materials, equipment, and technical expertise needed to provide the required valve testing, inspection, maintenance, and repair services. The contractor may perform the required services at SVP’s power plants or at the Contractor’s shop. Additionally, the contractor may be required to perform valve repair services at other SVP locations such as SVP’s remote facilities.
Staff recommends authorizing the City Manager to negotiate and execute an agreement with Bay Valve for an initial three-year term beginning on or about March 1, 2022 and to execute up to two one-year options to renew the agreement after the initial term at the discretion of the City. Costs for the initial three-year term are not to exceed $1,500,000.
Bay Valve’s hourly rates shall be fixed for the first two years of the agreement. Thereafter, any requests for compensation increases must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Battery Maintenance Services
SVP uses battery systems in order to ensure there is uninterrupted power to relay protection schemes, and control systems that provide monitoring and quick action in the event of electrical and process faults. SVP has several battery systems throughout its in-city power generating assets, including its power plants as well as at substations. The batteries must be maintained annually and quarterly in accordance with the most current version of the North American Electric Reliability Corporation (NERC) standard PRC-005, as well as state and federal regulations. The battery maintenance services ensure that critical protection systems will be available to protect the SVP grid and power plant equipment.
In 2021, the City published a formal Statement of Qualifications (SOQ) for Battery Maintenance Services. An SOQ is a solicitation where the award is based on the qualifications and expertise of the firm versus a proposed solution. One proposal was received from Associated Power Solutions (APS). Staff reviewed the response against the criteria included in the SOQ and determined that APS’s proposal met all of the SOQ requirements.
Staff recommends award of agreement to Associated Power Solutions. APS is the incumbent and has demonstrated experience and expertise providing quality battery maintenance services in compliance with NERC Standard PRC-005. Under the proposed agreement, APS will provide all labor, materials, equipment, and technical expertise needed to provide the required services including annual and quarterly battery inspection and maintenance; performance testing of batteries, load testing of battery systems, replacement of old batteries and disposal of old batteries. All services will be performed pursuant to NERC standards as well as industry best practices and state and local laws and regulations.
Staff recommends authorizing the City Manager to negotiate and execute an agreement with APS for an initial five-year term beginning on or about March 1, 2022, and to execute up to five one-year options to renew the agreement after the initial term at the discretion of the City. Compensation shall be paid on a time and materials basis with maximum compensation not to exceed $1,500,000 over the five-year initial term. APS’s hourly rates shall be fixed for the first two years of the agreement. Thereafter, any requests for compensation increases must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Electrical Generator Maintenance
The generators used at SVP facilities require ongoing preventative and corrective maintenance as well as scheduled major overhauls to ensure reliability. This includes annual inspections, testing and diagnostic services, and repairs using specialty tooling, equipment, and shop services. Local and remote generation facilities use multiple generator technologies from various manufacturers, and each has unique and specific maintenance schedules and parts specifications. Accordingly, multiple vendors are employed to properly maintain the fleet of generators.
In 2021, the City published a formal RFP for Generator Maintenance and Overhaul Services. A total of 69 companies viewed the RFP, and the City received proposals from five companies:
• Brush Americas (Turtle Creek, PA)
• Electrical Maintenance Consultants, Inc. (Rocklin, CA)
• Ethos Energy (Houston, TX)
• Kinectrics, Inc. (Naperville, IL)
• Mitsubishi Powers America, Inc. (Orlando, FL)
The RFP was comprised of three separate packages as follows:
• Package A: major inspections and repairs (overhauls) on two (2) Brush BDAX-7 generators located at the Donald van Raesfeld (DVR) Power Plant;
• Package B: major inspections and repairs (overhauls) on two (2) Ideal SM-100 generators located at the Santa Clara Cogeneration Plant; and
• Package C: Routine generator maintenance and repair services.
Proposers had the option to submit responses for one or multiple packages. Electrical Maintenance Consultants, Inc. (EMC) and Ethos Energy (Ethos) submitted responses for all three packages. Mitsubishi Powers America, Inc. (Mitsubishi) submitted a response for Packages A and C. Brush Americas (Brush) and Kinectrics, Inc. submitted responses for Package A and Package C, respectively.
The proposals were evaluated and scored against the criteria and weights included in the RFP by a three-member evaluation team consisting of staff from SVP. Upon the evaluation team’s initial review, the proposals from Ethos and Kinectrics, Inc. were determined to be non-responsive and were eliminated from further consideration.
Staff recommends authorizing the City Manager to negotiate and execute agreements with EMC, Brush, and Mitsubishi for an initial five-year term beginning on or about March 1, 2022 and to execute up to five one-year options to renew the agreement after the initial term at the discretion of the City. Compensation shall be paid on a time and materials basis, with maximum compensation for all three agreements not to exceed $3,000,000 over the five-year initial term. EMC shall serve as the primary contractor for all three packages of services, while Brush and Mitsubishi shall serve as the secondary providers of services for their respective packages. The proposed agreements will include provision of all labor, materials, equipment, and technical expertise needed to provide the required generator maintenance and overhaul services.
Any requests for compensation increases during the term of the agreement(s) must be justified by the company and are subject to approval by the City and the annual appropriations of funds.
Technical Field Advisor (TFA) Services
The Turbines and Generators used at Silicon Valley Power (SVP) facilities require ongoing preventative and corrective maintenance as well as scheduled major overhauls to ensure reliability. This includes annual inspections, testing and diagnostic services, and repairs using specialty tooling, equipment, and shop services. In-town and remote generation facilities use multiple generator technologies from various manufacturers, each having unique and specific maintenance schedules and parts specifications.
Depending on the nature of the work, it is industry best practice for SVP to separately contract TFA service for expertise when undergoing overhauls or other in-depth maintenance activities. These TFA’s serve as SVP’s agents and provide expert guidance to oversee the contractors performing work.
In 2021, the City published a formal RFP for TFA Services. A total of 39 companies viewed the RFP, and the City received 3 proposals, from Axis Mechanical Group, Mitsubishi Power Americas, Inc and HPI, LLC. The proposals were evaluated independently by a three-member evaluation team, consisting of staff from SVP against the criteria and weights included in the RFP. Staff recommends negotiating and executing agreements with all three proposers. Having multiple TFA agreements will provide flexibility with scheduling and expertise needs for SVP’s various assets.
The proposed agreements will include provision of all labor, materials, equipment, and technical expertise needed to provide the required services including:
• Overseeing major turbine and engine overhauls at SVP’s power plants;
• Providing technical oversight of outage activities;
• Providing advice on available repair options;
• Developing and providing required reports.
Staff recommends authorizing the City Manager to negotiate and execute agreements with Axis Mechanical, Mitsubishi Power Americas, Inc., and HPI, LLC for an initial five-year term beginning on or about March 1, 2022, and to execute up to five one-year options to renew the agreements after the initial term, at the discretion of the City. Compensation shall be paid on a time and materials basis, with the maximum compensation not to exceed $1,050,000 for all three agreements over the five-year initial term. Any requests for or rate increases during the term of the agreements must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Portable Mixed Bed and Anion Demineralized Bottle Rental and Exchange Services
All three of SVP’s local generation facilities rely on processed or demineralized water for use in the condensate/steam cycle and for emissions control. Portable, mixed bed and ion exchange bottles are used at DVR, COGEN, and Gianera for water treatment as an economic solution for these water treatment needs.
In 2021, the City published a formal RFB for Portable Mixed Bed and Anion Demineralized Bottle Rental and Exchange Services with the award recommendation based on “lowest responsive, responsible bidder.” A total of 34 companies viewed the RFB, and the City received proposals from two bidders. The results are as follows:
|
Vendor Name |
Bid Price |
|
Puretech |
$91,107.00 |
|
Evoqua |
$130,496.98 |
Staff recommends an award to Puretech as the lowest responsive and responsible bidder and Evoqua as a secondary supplier in the event of an emergency or if Puretech is unable to perform. Puretech and Evoqua will supply portable mixed bed and anion demineralized bottle rental and exchange services to SVP’s power plants on an as needed basis.
Staff recommends authorizing the City Manager to negotiate and execute agreements with Puretech and Evoqua for an initial five-year term beginning on or about March 1, 2022, and to execute up to five one-year options to renew the agreement after the initial term at the discretion of the City. Total costs are not to exceed $650,000 during the initial five-year term. Any requests for compensation increases during the term of the agreement must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Electric Utility Engineering Services
SVP uses consultants to support operations engineering of protection, communications, and control systems. Typical services include electrical safety hazard analysis, electrical engineering studies (short circuit and relay coordination), fiber optic multiplexer system support, power quality metering system support, compliance (NERC and WECC), and outages studies.
Sample tasks and studies performed by these consultants may include
• Electrical safety hazard analysis at each substation to determine safe approach distances and proper personal protection equipment (PPE) maintaining safety for employees and compliance with OSHA requirements.
• Relay overcurrent coordination studies to minimize the number of customers affected by a fault in the electric system such as a car a hitting power pole, tree branch falling on transmission line, or a mylar balloon contacting a transmission line.
• Support replacement of the fiber optic multiplexer system - the communication backbone of the electric utility.
In June 2021, the City published a formal SOQ for Electric Utility Engineering Services protection, communications, and control systems. A total of 141 companies viewed the SOQ, and the City received 17 proposals. The proposals were evaluated and scored independently by a three-member evaluation team, consisting of staff from SVP against the criteria and weights included in the SOQ.
Staff recommends negotiating and executing agreements with the following proposers, as the most advantageous proposals based upon the final evaluation rankings:
1. Burns and McDonnell Engineering Company, Inc.
2. Electrical Consultants, Inc.
3. HDR Engineering, Inc.
4. Leidos Engineering, LLC
5. Power-Tech Engineers, Inc.
6. SEL Engineering Services, Inc.
7. Soudi Consultants, Inc.
8. TRC Solutions, Inc.
9. Worley Group, Inc., doing business as Advisian
The proposed agreements will include provision of all labor, materials, equipment, and technical expertise needed to provide the required electric utility engineering services including:
• Performing engineering studies;
• Developing and reviewing protective device, metering, and automation device settings and logic;
• Preparing and documenting North American Electric Reliability Corporation (NERC) compliance reports; and
• Providing engineering support services for construction and testing crews.
Staff intends to establish a qualified shortlist consisting of the nine selected proposers. Depending on the requirement, a vendor may be awarded specific work to any vendor on the list, or a secondary “mini” competitive process may be conducted among these pre-qualified firms to award specific work.
Staff recommends authorizing the City Manager to negotiate and execute agreements with the nine consultants listed above for an initial five-year term beginning on or about March 1, 2022, and to execute up to five one-year options to renew each agreement after the initial term, at the discretion of the City. Annual costs for all agreements are not to exceed $20 million during the initial five-year term (four million dollars per year shared among nine engineering firms based on project assignment). Any requests for compensation increases during the term of the agreement(s) must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Environmental, Health & Safety Services (EH&S)
Silicon Valley Power (SVP) requires EH&S programs throughout the utility in order to maintain a safe and compliant working environment. The use of experts focused in the knowledge areas required assures the best possible quality for the programs being developed, prevents bias, and maintains the most current updates to federal and local laws and regulations. These firms have unique skills and tools at their disposal to provide services.
Services associated with Environmental Programs will support a number of required certifications and other compliance activities. A utility of SVP’s size is responsible for a number of environmental compliance activities including air permits, Environmental Protection Agency (EPA) Title V, Spill Prevention Control and Countermeasure (SPCC), Hazardous Materials Business Plan (HMBP), and storm water permits. This is only a sample list as there are a number of compliance programs associated with the utility’s operations.
Services associated with safety programs include written plans, training, tracking of training completed, audits, and drills that meet Federal and California OSHA, and local or other agency regulations or guidelines. In addition, these consultants will support activities that promote a safe working environment including development and update of safety standards across SVP, Injury and Illness Prevention Program (IIPP) and a Qualified Electrical Worker (QEW) program. Resulting programs will be available to staff throughout the utility.
In 2021, the City published a formal SOQ for EH&S services. A total of 104 companies viewed the SOQ, and six proposals were submitted. The proposals were evaluated and scored independently by a three-member evaluation team, consisting of staff from SVP against the criteria and weights included in the SOQ including: experience and qualifications of the firm/staff; expertise reviewing and developing EH&S plans; and the proposers’ approach to providing safety training.
Based on the scores from the evaluation panel, staff recommends awarding agreements to two proposers as the most advantageous and best value to the City: BSI America Professional Services, Inc. (BSI), and Electrical Safety Consultants, Inc., doing business as ESCI, Inc. (ESCI). Both proposals met or exceeded all of the SOQ specifications. The expertise of each of these vendors is different; therefore, each agreement will include different scopes of work.
The proposed agreements will include provision of all labor, materials, equipment, and technical expertise needed to provide the required services including:
• Reviewing and updating SVP’s current EH&S plans;
• Developing new EH&S plans;
• Providing electrical safety training and drills;
• Conducting periodic electrical safety audits; and
• Creation and management of a comprehensive electrical safety compliance program (ESCI only).
Staff recommends authorizing the City Manager to negotiate and execute agreements with BSI and ESCI for an initial five-year term beginning on or about March 1, 2022 and to execute up to five one-year options to renew each agreement after the initial term at the discretion of the City. Compensation shall be paid on a time and materials basis, with the maximum compensation not to exceed $1,100,000. Any requests for compensation adjustments during the term of the agreements must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Vendor to provide Salt Deliveries
Maintaining power production at Cogen requires the water at the plant to be treated for use in its steam processes. The treatment includes softening the water by using dry coarse salt. SVP uses approximately 660 pounds of salt per day to treat the water at Cogen. If water is not softened for use in the power plant steam processes, Cogen would be forced to shut down, halting power production at the facility. A shutdown of Cogen would also impact its ability to supply steam to its thermal host, Greif Inc., Santa Clara Paperboard who uses steam for recycled paper processing.
In 2021, the City published a formal RFB for the delivery and supply of Morton Salt, using the City’s e-procurement system. Twenty-two (22) vendors viewed the bid, and two bids were received. Results are as follows:
|
Vendor NameBid Price |
|
|
TR International Trading Company (TRInternational) |
$49,680 |
|
John’s Salt Service |
$50,112 |
Staff recommends an award to TRInternational as the lowest-price responsive bidder. TR International will supply and deliver salt to Cogen on an as needed basis.
Staff recommends authorizing the City Manager to negotiate and execute an agreement with TR International for an initial five-year term beginning on or about March 1, 2022, and to execute up to five one-year options to renew the agreement after the initial term at the discretion of the City. Maximum compensation is not to exceed $300,000 during the initial five-year term. Any requests for compensation adjustments must be justified by the vendor and are subject to approval by the City and the annual appropriations of funds.
Vendor to Provide Delivery of Bulk Sulfuric Acid
SVP uses sulfuric acid for pH control of the cooling tower at DVR. This necessary process treatment for the cooling tower is required to maintain limits specified by the Industrial Waste Water Discharge Permit issued by San Jose Environmental Services Department. and preserve the integrity of the tower itself.
In 2021, the City published a formal RFB for the delivery and supply of Sulfuric Acid. Twenty-two (22) vendors viewed the bid, and one bid was received as follows:
|
Vendor Name |
Bid Price |
|
Pacific Star Chemical (dba Northstar Chemical) |
$40,320 |
Staff recommends an award to Pacific Star Chemical as the sole bidder. Pacific Star Chemical will supply bulk Sulfuric Acid to SVP’s DVR plant on an as needed basis.
Staff recommends authorizing the City Manager to negotiate and execute an agreement with Pacific Star Chemical dba Northstar Chemical for an initial five-year term beginning on or about March 1, 2022, and to execute up to five one-year options to renew the agreement after the initial term at the discretion of the City. Costs are not expected to exceed $300,000 during the initial five-year term. Any requests for compensation increases during the term of the agreement must be justified by the company and are subject to approval by the City and the annual appropriations of funds. Exercise of option terms after the initial five-year term will be based on renewal quotes from the Pacific Star Chemical.
Bulk Chemical:
Silicon Valley Power (SVP) uses several Bulk Chemicals including Sodium Bisulfite, Sodium Hydroxide, Sodium Hypochlorite at its DVR Power Plant for various water treatment processes.
Pursuant to City Purchasing ordinance, the City intends to enter into a cooperative purchase through the Bay Area Chemical Consortium (BACC), a cooperative group of public agencies each individually established and acting collectively through their authorized agents. BACC issues bids each January for over a dozen bulk chemicals, with responses due in late February and contract awards executed by each respective agencies around the second quarter of the calendar year. The City is unable to enter into the proposed cooperative purchase until around the second quarter of the calendar year. Therefore, staff requests authorization to enter into a purchase order with Univar in an amount not to exceed $200,000 until such time as the City can enter into an agreement through BACC.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Furthermore, the action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination. Moreover, the action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
Funding for the following agreements will come from the capital or operating budget based on the asset requiring products or services:
1. Valve inspection, maintenance, and repair services
2. Battery maintenance services
3. Electrical generator maintenance
4. Technical Field Advisor (TFA) Services
5. Portable mixed bed and anion demineralized bottle rental and exchange services
6. Engineering services for electric protection, communications, and control
7. Salt deliveries
8. Delivery of bulk sulfuric acid
9. Bulk chemical delivery services
Funding for consulting and training services for environmental health and safety including safety compliance, environmental consulting, consulting for emissions, stormwater, and hazardous waste are budgeted in the Electric Utility budget Electric Compliance Division.
Sufficient funding for the agreements is included in the FY 2021/22 and FY 2022/23 Biennial Adopted Operating Budget. Funding for future years is subject to future appropriation and will be included in future budget processes.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute an agreement for valve Inspection, maintenance, and repair services with Bay Valve Service and Engineering, LLC in an amount not to exceed $1,500,000 for an initial three-year term with two one-year options to renew;
2. Authorize the City Manager to negotiate and execute an agreement for battery maintenance services with Associated Power Solutions in an amount not to exceed $1,500,000 for an initial five-year initial term with up to five one-year options to renew;
3. Authorize the City Manager to negotiate and execute agreements for generator maintenance services in an aggregate amount not to exceed $3,000,000 for an initial five-year term with up to five one-year options to renew with:
a. Electrical Maintenance Consultants
b. Brush Americas
c. Mitsubishi Powers Americas, Inc.;
4. Authorize the City Manager to negotiate and execute agreements for Technical Field Advisor (TFA) services in an aggregate amount not to exceed $1,050,000 for an initial five-year term with up to five one-year options to renew with:
a. Axis Mechanical Group
b. HPI, LLC
c. Mitsubishi Powers Americas, Inc.;
5. Authorize the City Manager to negotiate and execute agreements to provide portable mixed bed and anion demineralized bottle rental and exchange services in an aggregate amount not to exceed $650,000 for an initial five-year term with up to five one-year options to renew with:
a. Puretech
b. Evoqua Water Technologies LLC;
6. Authorize the City Manager to negotiate and execute agreements to provide electric utility engineering services for electric protection, communications, and control in an aggregate amount not to exceed $20,000,000 (four million dollars per year shared among nine engineering firms based on project assignment) for an initial five-year term with up to five one-year options to renew with:
a. Burns and McDonnell Engineering Company, Inc.
b. Electrical Consultants, Inc.
c. HDR Engineering, Inc.
d. Leidos Engineering, LLC
e. Power-Tech Engineers, Inc.
f. SEL Engineering Services, Inc.
g. Soudi Consultants, Inc.
h. TRC Solutions, Inc.
i. Worley Group, Inc., doing business as Advisian;
7. Authorize the City Manager to negotiate and execute agreements to provide Environmental Health and Safety (EH&S) consulting and training services in an aggregate amount not to exceed $1,100,000 for an initial five-year term with up to five one-year options to renew with:
a. BSI Services and Solutions, Inc.
b. ESCI, Inc.;
8. Authorize the City Manager to negotiate and execute an agreement for salt delivery services with TR International Trading Company in an amount not to exceed $300,000 for an initial five-year term with five one-year options to renew;
9. Authorize the City Manager to negotiate and execute an agreement for delivery of bulk sulfuric acid with Pacific Star Chemical doing business as Northstar Chemical in an amount not to exceed $300,000 for an initial five-year term with five one-year options to renew;
10. Authorize a Purchase Orders with Univar Solutions in an amount not to exceed $200,000 for delivery of bulk chemicals until such time as the City can enter into an agreement through Bay Area Chemical Consortium; and
11. Authorize the City Manager to execute amendments to increase maximum compensation during the term of the agreements if the demand for services exceeds maximum compensation, subject to the appropriation of funds.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager