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Home My WebLink About _ 4.5(b)--Redding Power Plant VFD Cooling System Installation � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: December 3, 2024 FROM: Nick Zettel, Director of ITEIVI NO. 4.5(b) Redding Electric I7tility ***APPROVED BY*** � ��. ; � _ � v �� „ �� :k ct c. ��yrectc� �it e in�� lric�ttti}ity 1 tf19='?f�24 � � �p�zt�,C`i �� t t�� 1lr'26,''2{}� � nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(b)--Redding Power P1ant Variable Frequency Drive Cooling System Installation Recommendation Authorize and approve the following actions regarding Bid Schedule No. 5520 for the installation of the Redding Power Plant Variable Frequency Drive (VFD) cooling systems: (1) Authorize an amount not to exceed $300,000 for the installation of the VFD cooling systems; (2) Award Bid to Timberline Heating & Air Conditioning, in an amount not to exceed $300,000 including contingency($235,380 for installation and$64,620 for contingency); (3) Authorize the City Manager, or designee, to execute change orders up to the total amount of the project contingency to address unforeseen work items discovered during the installation process; and (4} Find that the project is categorically exempt from review under the California Environmental Quality Act, pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). Fiscal Impact The total cost for City of Redding Power Plant Variable Frequency Drive (VFD) Cooling System installation, including contingency, is outlined below: Descri tion Amount HVAC Installation, Bid Schedule 5520 $235,380 Contin enc $64,620 TOTAL $300,000 Al�hough increased project costs and unexpected maintenance needs have depleted the Major Maintenance Fund, sufficient funding, including contingency, remains available for this unplanned project. Report to Redding City Council November 26,2024 Re: 4.5(b)--Redding Power Plant VFD Cooling System Installation Page 2 Alternative Actions The City Council (Council) could choose not to award the bid to Timberline Heating & Air Conditioning and provide alternative direction to staff. Background/f1 nalysis The City of Redding (City} owns and operates a 183 MW natural gas fired power generation plant with six generating units. Generating Units 5 and 6 have prefabricated buildings adjacent to the turbine and generator enclosures containing power plant controls, the starting system variable freguency drive, power distribution panels, and other auxiliary eguipment. The cooling systems are integral to the operation of Generating Units 5 and 6. The existing cooling systems are original to the construction of Generating Units 5 and 6 (2002 and 2011 respectively), and are reaching their end-of-life. Replacement parts are only available from vendors outside of the United States, and cooling system contracted service personnel available to the City are unfamiliar with the cooling system design and parts, which makes it difficult to service the equipment. Staff intend to replace the equipment prior to failure to ensure continued generating unit reliability. In 2021, staff contracted with Pace Engineering Inc., which designed new systems using US-made industry- standard parts and equipment to retrofit these cooling systems. Request for Proposals number 5520 was published to solicit proposals for the installation of equipment specified by Pace Engineering Inc. Staff determined that Timberline Heating & Air Conditioning's proposal was the best value for the City. The evaluation summary is attached. Environmental Review Staff has reviewed the project and determined that it is categorically exempt from review under the California Environmental Quality Act, pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing public facilities. Class 2 exemptions consists of replacement or reconstruction where the new structure will be located on the same site and will have substantially the same purpose and capacity. The project involves the removal and replacement of the existing cooling systems at the Power Plant. This is a maintenance aetivity and the cooling systems will have substantially the same purpose and capacity with no proposed expansion. The project area has no underlying value for sensitive resources and the project has no potential to have a significant effect on the environment. Council P�ioNity/City Nlanager Goals • This is a routine operational item, Attachments RFP #5520 Evaluation Summary NOE RPP Cooling System Replacement 1ti�lir��n�irrr Prc�pc��l '�"�c�r��c�1 : Cc�st�u��t��n:: Bicicl�� l��t�u�r�rr�ent�-Me�'? ��r�ivativr��tir�, ; S��re �`+��I��vr�:: Timberline Yes 165 108 273 Redding Heating and Air Yes 105 99 204 U°I'IaCE t)F EXEMPTIQN To: � Office of P`lanning and Researcli FRt�M. Gity of Redding 1440 Tenth Street, Raam 121 Fublic Warks Department �acramenfo, CA 95814 777 Cypress Aveni�� Redding;CA 9b401 � Shasta County Cierk Caunty Qf Shasta P.t�, Box 990�80, 1643 1Vlarket Street Reddin;, CA 96099-0880 Praject Title: Reddin��'ower Plant Variable Frequencv I?rive C�olin�ystem Projec#Location—�peci�c; 361 l Avtech Parkway Project Location—City: Reddin� Praject Location—County: 5hasta Description of Projecti The 1Zeddin� Electric Uti1i will rep�ace the existin� variable frequencv drive cooling s sv tem far Generatin�Units 5 and 6 at the Redding Power Plant. TI�e existin c� ot�lin�;units were installed in 2002 and 2011 and are reaching the end of the�r service life.All work will occur within the Reddin�Pawer Plant facility. Name of Publie Agency Approving Praject: City�f Reddin� Name of Person or Agency+Carrying Out Prc�jectt Joe ZelesnY,Power Pla�t Engineer Exempt Status. (check one) ❑ Ministerial [Sectian Z 1080(b)(1); 152b8] ❑ Declared Emergency[Section 2108(�{b}(3); 15269(a}] � Emergency Praject[Sectian 21O8d(b){4}; 15269{b)] ❑ Statutc�ry Exemptions. State code number`: ❑ Ct�mmon Sense Exempfion(This project does not fall within an exempt class;but it can be seen with certainty that there is no passibility that the activity may have a signrficant effect on the environment(14 C�R 15061[b][3]). d Categorical Exernption: State tYpe arid section number: Section 15301. Existin�Facilities arld Sectian 15302. Replacement or Recc�nstructian G]x" No exceptians apply thaf would bar the use of a categoric�l exemption(PRD 21084 and i4 CCR 153Q0.2); Re�son� �why project is exempt. Class 1 exemptions include the c�peration, repair, maintenance, or minor alteration of existin��ublic facilities. Class 2 exemptions ct�ns�sts of replacement or reconstructitrn wl�ere the new structure will be lacated on the same site and will have substantiallv the same purpase and capacity. The praject involves the removal and replacement of the existing cooling systerns at the Power Plant. This is a maintenance activity and the coalin�svstems will have substantially the same purpase antl cat�acity with no propased expansion. The proiect area has na iinderl�g value for sensitive resources and the project has no potential to have a significant effect on the environment. Lead Agency Contact P`erson: Amber Kellev fielephone: 530.225.4046 If Filed by Appl�cant. l. Attach certified document of exemptian finding. 2, Has a natice c�f exemption been filed by the public agency approvii�g the project? a Yes o Na Sig�t�tare: � ��'� ��..�° Date. �� Titlet Environmental Compliance Ma�a�er ��igned by Lead Agency Date received fc�r filing at QPR: 0 Signed by Appiicant