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W A T E R I E N E R 5 Y , L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: March 5, 2010 ITEM NO: 8 SUBJECT: SERVICE PROPOSAL FOR DEMINERALIZED WATER TREATMENT SERVICES AT THE RIVERSIDE ENERGY RESOURCE CENTER ISSUE: Consideration of a Service Proposal from GE Water and Process Technologies Inc. for demineralized water treatment services at the Riverside Energy Resource Center (RERC). RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the three-year Service Proposal, with three one-year extension options, from GE Water and Process Technologies, Inc. of Fontana, California, in an amount not-to-exceed $350,000 per year for demineralized water services at the Riverside Energy Resource Center; 2. Authorize the Public Utilities General Manager to exercise the extension options as more fully described below; and 3. Approve cancellation of the existing contract for such services with GE Mobile Water, Inc., dated May 26, 2006. BACKGROUND: Since June 2006, the Riverside Energy Resource Center (RERC) has been providing peaking power to Riverside's electric customers. RERC is a zero liquid discharge facility and uses reclaimed water from the City's adjacent wastewater treatment facility as its primary source for industrial water. This reclaimed water requires multiple stages of treatment to meet water purity standards for gas turbines. Utilization of ultra pure demineralized water is vital to the operation of the RERC units to comply with air emission regulations and support both power augmentation and turbine efficiency processes. Normal demineralized water usage for each unit while in operation is 6,300 gals/hr. GE Water and Process Technologies, Inc. (formerly GE Mobile Water, Inc.) has been providing demineralized water treatment services to the RERC facility since commissioning. The current contract expires on June 30, 2010. The proposed contract will provide enhanced pricing and service levels compared to the existing contract. The enhanced pricing will provide approximately 5% in savings over the existing contract price, and increased service levels will result from the vendor's provision of additional equipment onsite to increase treatment capability and better serve expanded plant requirements. In November 2009, a Request for Proposals (RFP) was issued for the services provided by GE Mobile Water, Inc. GE Water and Process Technologies, Inc. was the lowest bidder and staff recommends awarding them a three-year contract, with three one-year extension options. Costs under the proposed contract will not exceed $350,000 per year, and are expected to cover the demineralized water needs of the two existing RERC units, as well as the two additional units now under construction (based on projected unit run profiles).