Broward County Commission Regular Meeting
Director's Name: Trevor M. A. Fisher
Department: Public Works Division: Water & Wastewater Operations
Information
Requested Action
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MOTION TO APPROVE First Amendment to Agreement between Broward County and INNIO Jenbacher North America LLC for Planned and Corrective Maintenance Agreement WS20-DM006, Contract No. PNC2127849P1, to extend its duration and to increase the unit price for corrective on-site fees from $750 to $1,860; and authorize Mayor and Clerk to execute the same. (Commission District 2)
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Why Action is Necessary
In accordance with the Broward County Administrative Code, Section 21.53, Board approval is required for a contract to exceed five years in duration.
What Action Accomplishes
Approves the contract amendment to provide scheduled and planned maintenance and overhaul services for Broward County's North Regional Wastewater Treatment Plant.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE PUBLIC WORKS DEPARTMENT/WATER AND WASTEWATER SERVICES RECOMMEND APPROVAL OF THE ABOVE MOTION.
This agreement supports the Board’s Value of “Encouraging investments in renewable energy, sustainable practices and environmental protection” with the goal to “seek funding for, implement policies and pursue projects promoting, the use of alternative energy, resource conservation, sustainable practices and environmental protection” due to the reduction of greenhouse gas emissions associated with the GE Jenbacher engine as part of the waste-gas cogeneration facility.
On June 26, 2012 (Item No. 57), the Board approved an agreement between Broward County and Chevron U.S.A. Inc., for Guaranteed Energy, Water, and Wastewater Performance Savings Contract for Implementation of Energy Conservation Measures (Guaranteed Energy Savings Performance Agreement) for Water and Wastewater Services (WWS), RLI No. R0728501R1. The agreement provided for a waste-gas cogeneration facility for the North Regional Wastewater Treatment Plant utilizing General Electric (GE) Jenbacher engines that will allow curtailing the plant’s energy consumption by 30% (approximately $1.16 million savings per year) and achieve an annual reduction of 8,437 tons of eCO2 emissions. This agreement was assigned to OpTerra Energy Services on December 8, 2014. Effective January 22, 2018, OpTerra Energy Services changed their name to ENGIE Services U.S. Inc. This agreement specified a maintenance service contract is required to achieve the performance guarantee of the engines.
On April 6, 2015, WWS requested sole brand designation of GE Jenbacher to sole source Nixon Energy Solutions as they are the manufacturer appointed distributor for GE Jenbacher. The Director of Purchasing recommended the approval of the sole source, sole brand designation. The Office of Economic and Small Business Development did not assign participation goals to this agreement based on the sole source request. On June 7, 2016 (Item No. 54), the Board approved an agreement between Broward County and Nixon Energy Solutions, for Planned and Corrective Maintenance for GE Jenbacher engines in the waste-gas cogeneration facility. This agreement was reassigned to INNIO Jenbacher North America LLC on August 25, 2020. The current agreement expires June 8, 2024, and thus, is the reason Water and Wastewater Services is seeking this amendment. While the efforts to amend the agreement were initiated timely, due to the interactive process between the vendor and the County, the amendment seeks to retroactively renew the agreement back to June 8, 2024.
If approved, this contract amendment (Exhibit 1) will be retroactive to June 8, 2024 and will: (i) extend the duration of the agreement by 60,001 run time hours or until June 8 2032 and (ii) increase the corrective on-site fee for covered units at the North Regional Wastewater Treatment Plant. The only proposed pricing change is to the corrective on-site fee, which is increasing from $750 to $1,860, for a difference of $1,110. All other pricing structures under Agreement PNC2127849P1 will remain unchanged.
Historically, WWOD has averaged 13 requests for corrective on-site visits annually. WWOD estimates an increase of $75,000 for corrective on-site fees over the next 5 years. Payments will be based on the maximum amount payable under this agreement.
Source of Additional Information
Mark Darmanin, Director, Water and Wastewater Operations Division, (954) 831-0960
Alan W. Garcia, P.E., Director, Water and Wastewater Services, (954) 831-0704
Trevor M. A. Fisher, P.E., MBA, Director, Public Works Department, (954) 357-6410
Fiscal Impact
Fiscal Impact/Cost Summary
The estimated increase to the corrective on-site fee in this agreement over a five-year period is $75,000 and will be funded in the Water and Wastewater Operating Fund.