REPORT TO COUNCIL
SUBJECT
Title
Action Authorizing the City Manager to Execute Amendment No. 2 to the Agreement with Nalco Company LLC for Water Treatment Services for Silicon Valley Power at Power Plants and to Extend the Term Through December 31, 2023, With No Change to the Maximum Compensation
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara, Silicon Valley Power (SVP), administers a comprehensive water treatment program at the Donald Von Raesfeld (DVR) and Cogeneration #1 (Cogen) power plants to comply with safety and environmental requirements, maximize plant reliability and availability, and extend the life of the assets by preventing corrosion.
SVP utilizes a third-party service provider to perform water quality tests, chemical delivery, inventory management, and onsite/offsite laboratory analysis services in support of its water treatment program. The contract with the current service provider, Nalco Company LLC (Nalco), was entered in 2018. In August 2021, the City Council approved Amendment No. 1 to extend the term by two years and increase the compensation by $470,215 for a revised not-to-exceed amount of $900,000.
The agreement with Nalco is set to expire on August 31, 2023. The purpose of this report is to request City Council approval to extend the term of the agreement through December 31, 2023, with no change to the maximum compensation.
DISCUSSION
In May 2023, staff issued a Request for Proposals (RFP) soliciting proposals from qualified vendors to provide water treatment services. The evaluation committee is currently in the final vendor selection process and requires additional time to complete the RFP process. As such, staff is requesting approval to execute Amendment No. 2 to the agreement to extend the term to December 31, 2023.
The rates for the extended term will remain unchanged. Furthermore, the agreement has sufficient funds for the services through December 2023, so no additional compensation is being requested.
Approval of this recommendation will allow staff time to complete the RFP process and avoid interruption in the services that are critical to SVP’s operations. Staff will return to the City Council for approval of the new agreement with the selected vendor in the November/December 2023 timeframe.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
There is sufficient authorized funding in the existing agreement for the extended term. Sufficient funds are available in the FY 2023/24 Adopted Biennial Operating Budget in the Generation and Pumping Expense allocation for the asset requiring products or services.
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 execute Amendment No. 2 to the Agreement for the Performance of Services with Nalco Company, LLC for water treatment services for Silicon Valley Power at power plants and to extend the term through December 31, 2023, with no change to the maximum compensation of $900,000; and
2. Authorize the City Manager to make minor changes to the attached proposed amendment subject to review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Original Agreement with Nalco Company, LLC DVR
2. Original Agreement with Nalco Company, LLC Cogen
3. Amendment No. 1 with Nalco Company, LLC
4. Proposed Amendment No. 2 with Nalco Company, LLC