REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for the Performance of Services with Nalco Company, LLC to Provide Water Treatment Services at the Donald Von Raesfeld (DVR) Power Plant
Report
BACKGROUND
In order to maximize the asset life of the Donald Von Raesfeld (DVR) Power Plant and associated equipment, it is necessary to have in place a proper water treatment chemical program. This treatment program is specialized and specific to the machinery, operating profile, and regulatory requirements at the DVR Power Plant.
DISCUSSION
In November 2017, Silicon Valley Power (SVP) prepared an RFP which included posting on the City website and the solicitation of three industry known service providers. SVP received three qualified proposals. Staff reviewed each proposal to determine overall best value including cost and experience with similar facilities reducing the risk of equipment damage and higher maintenance costs due to corrosion and scale build-up. Nalco was selected as the provider based on the criteria, value, and expertise.
Staff proposes to enter into a three (3) year agreement with Nalco Company, LLC to provide chemicals, services, and a quality water treatment program that is economical and effective. Without a proper chemical program to protect the equipment from scaling and pitting, the life of the equipment would be reduced.
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.
FISCAL IMPACT
The total cost of this Agreement for the Performance of Services with Nalco Company, LLC shall not exceed $143,261 for the first year, for a total not-to-exceed amount of $429,785 over a three (3) year term. Sufficient funds are available in the Electric Department Operating Generation Pumping Expense account.
COORDINATION
This report has been coordinated with the Finance 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> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve an Agreement for the Performance of Services with Nalco Company, LLC to provide water treatment services in an amount not-to-exceed $429,785 over a three (3) year period.
Staff
Reviewed by: John C. Roukema, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement for the Performance of Services with Nalco Company, LLC