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 t...
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