RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt a resolution authorizing the City Manager to execute contract purchase agreement 3000336 with Performance Mechanical, Inc. to provide maintenance support services for the Roseville power plants.
| BACKGROUND
Roseville Electric Utility owns and operates two natural gas fired power plants, the Roseville Energy Park (REP) and Roseville Power Plant #2 (RPP2). Both plants utilize processes such as high pressure steam, rotating machinery, and combustion. The operation of these systems and processes, including repair and maintenance, is subject to Federal, State, and other regulatory safety and environmental requirements and standards.
Due to these requirements, repair and maintenance of the various systems at REP and RPP2 often require highly specialized labor, equipment and materials that Roseville Electric Utility does not possess. It is more cost effective to contract out these types of repairs than it is to hire certified staff and maintain all the required training and associated licenses. Additionally, in the event of unplanned equipment failure or forced outages, it is faster and more cost effective to use a standing agreement with a contractor for emergency repairs than it is to begin a contracting process under emergency circumstances.
Roseville Electric Utility solicited proposals through Request for Proposals (RFP) 07-067 for power plant support services. Multiple vendors responded to the RFP. After determining the vendors were responsive and responsible, the evaluation team reviewed and scored the proposals, finding Performance Mechanical, Inc. to be the most suitable vendor to provide the requested scope of services based on their safety, quality, demonstrated experience, completeness of proposal, and price.
| FISCAL IMPACT
This multi-year services agreement will be for a period of five years. The total costs are not to exceed $2,750,000.00 based on an assumed average cost of $550,000.00 per year. Funding is included in the Electric Operations Fund budget for FY2019-20 and funding for future years is subject to City Council approval.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. A contract purchase agreement for power plant maintenance support services meets the above criteria and is not subject to CEQA. No additional environmental review is required.
| Respectfully Submitted,
Matthew Garner, Power Generation Superintendent
Michelle Bertolino, Electric Utility Director | | | 
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Dominick Casey, City Manager
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