05-14-2018 BPU RPT 07 - Laserfiche WebLink

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W A I. R I w I R 6 Y L 1 r F RIVERSIDE PUBLIC UTILITIES Board Memorandum PURL IC OF IL.IIIES BOARD OF PUBLIC UTILITIES DATE: MAY 14, 2018 ITEM NO: 7 SUBJECT: REQUEST FOR PROPOSAL NO. 1787 FOR SUPPLYING AND DELIVERING CONTINUOUS EMISSIONS MONITORING SYSTEMS CALIBRATION CYLINDERS AND OTHER SPECIALTY GASES FOR THE POWER GENERATION FACILITIES TO AIRGAS USA LLC, OF LONG BEACH, CALIFORNIA, FOR THREE YEARS, WITH THREE OPTIONAL ONE-YEAR EXTENSIONS, IN THE ANNUAL AMOUNT OF $72,778 ISSUES: Award Request for Proposal No. 1787 to Airgas USA LLC, of Long Beach, California, to supply and deliver continuous emissions monitoring systems calibration cylinders and other specialty gases at Riverside's power plants - Riverside Energy Resource Center, Springs and Clearwater, for three years, with three optional one-year extensions, in the annual amount of $72,778. RECOMMENDATION: That the Board of Public Utilities award Request For Proposal No. 1787, for the supply and delivery of continuous emissions monitoring systems calibration cylinders and other specialty gases, to Airgas USA LLC, of Long Beach, California, for three years, with three optional one-year extensions, in the annual amount of $72,778. BACKGROUND: The Continuous Emissions Monitoring Systems (CEMS) is a critical component that monitors air emissions at Riverside's electric power plants. The CEMS includes analyzers that sample and measure extremely low concentration levels of air emissions discharged from each of Riverside Public Utilities' (RPU) nine electric generating units. Emission concentration levels can be as low as two parts per million (ppm), equivalent to about one minute in a year. 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). DISCUSSION: In August 7, 2015, the Board of Public Utilities (Board) approved the issuance of a purchase order to Airgas USA LLC (Airgas) for $61,707. Airgas provided the lowest prices and guaranteed fixed rates through June 30, 2018. Page 803