REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution authorizing the City Manager to Negotiate and Execute Master Service Agreements with General Electric Packaged Power LLC and TransCanada Turbines to Perform Gas Turbine Engine Field and Depot Services subject to the following conditions:
1. Each agreement shall have an initial term of five years and shall have a maximum amount not-to-exceed set by the City Manager subject to an aggregate maximum authority of $30,000,000 during the initial term with annual spending subject to the annual appropriation of funds;
2. The City Manager shall be authorized to add or delete services consistent with the scope of the agreements and allow future rate adjustments subject to justification by contractor and the appropriation of funds; and
3. Authorize the City Manager to execute up to five one-year options to extend the term of the master service agreements, subject to the annual appropriation of funds
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Silicon Valley Power (SVP), the City's Electric Utility Department, operates three gas fired power generation facilities within the City limits. The Donald Von Raesfeld Power Plant (DVR), the main facility, is a 2x1 combined cycle power plant rated at 147 Megawatts of electrical power. It is powered by two 50-Megawatt General Electric (GE) LM6000PC gas turbine engines. SVP also has a third LM6000PC turbine engine in storage that can be swapped out and placed into service when one of the two primary engines goes down or is taken offline.
The three engines have been in operation for over 16 years; the two main engines began operating in 2004, and the third engine came online in 2005. Each engine requires routine inspection, maintenance, and repair services in order to keep them operating at an optimal level. Additionally, each engine requires a major overhaul after 40,000 - 50,000 hours of service (about four to fi...
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