08-07-2015 BPU RPT 09 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I F$ BOARD OF PUBLIC UTILITIES DATE: AUGUST 7, 2015 ITEM NO: 9 File ID — 15 -2459 - C SUBJECT: SUPPLY OF SPECIALTY GASES FOR CONTINUOUS EMISSIONS MONITORING SYSTEMS AT THE THREE POWER GENERATION FACILITIES FOR $61,707 ISSUE: The issue for Board of Public Utilities (Board) consideration is approval of a purchase order for $61,707 with Airgas for specialty gases at the Riverside's power plants, Riverside Energy Resource Center, Springs, and Clearwater. RECOMMENDATION: That the Board of Public Utilities approve the issuance of a purchase order in the amount of $61,707 with Airgas to supply specialty gases at Riverside's power plants BACKGROUND: The Continuous Emissions Monitoring Systems (CEMS) is a critical component that monitors air emissions at Riverside's power plants. The CEMS includes analyzers that sample and measure extremely low concentrations levels of air emissions discharged from each of Riverside Public Utilities' (RPU) nine generating units at its power plants. Emission concentration levels can be as low as two parts per million (ppm). The United States Environmental Protection Agency (EPA) and the South Coast Air Quality Management District (SCAQMD) require a properly functioning CEMS to measure and monitor compliance with RPU's operating permits. Maintaining proper CEMS operation for each generating unit involves EPA certified specialty gases to perform daily calibrations on over 40 emissions analyzers. The amount of specialty gases required each year depends on calibration test results and unit operations. Due to these variables, staff estimated the annual usage amounts when formulating the Request for Proposal (RFP). In April 2015, an RFP was issued to procure specialty gases for the generating sites. Three proposals were received and interviews were conducted with the top two respondents. After extensive review, the Airgas proposal was determined to be the most responsive and best operational value due to fixed, low costs and proven ability to integrate with existing, in -house gas calibration software. RPU manages the use of specialty gases through a certified - software program. This application transmits daily emissions to the SCAQMD automatically and this data is utilized extensively during annual emissions verifications and audits. Airgas' program will integrate very well with RPU's current software and enhances the overall air emissions compliance process. A three -year option was included as part of the RFP. Airgas offered fixed rates for all three years and the lowest cost for additional fees (i.e. rental, delivery, and hazardous materials). Staff recommends approval of an annual purchase order to Airgas for specialty gases through the next three years. Each fiscal year, staff will review the historical usage throughout the generation facilities, update annual estimated amounts, and request Board approval through the annual purchase order process.