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HomeMy WebLinkAboutStaff Report 3.A 12/16/2019DATE TO: FROM: Agenda Item #3.A December 16, 2019 Honorable Mayor and Members of the City Council through City Manager'{ n -- Kent Carothers, P.E. — Deputy Director of Public Works & Utilities / Operations SUBJECT: Resolution Approving the Purchase of Four Replacement Generators from All Star Rents in the Amount of $289,931.50 through Sourcewell Cooperative Purchasing Program and Authorizing the City Manager to Execute all Documents Necessary to Complete the Purchase RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Approving the Purchase of Four Replacement Generators from All Star Rents in the Amount of $289,931.50 through Sourcewell Cooperative Purchasing Program and Authorizing the City Manager to Execute all Documents Necessary to Complete the Purchase. BACKGROUND The Public Works and Utilities Department currently utilizes backup towable generators to supply emergency power for booster pump stations, buildings, lift stations, wells, and remote utility facilities. These generators are used for both planned and unplanned power outages, and are critical equipment in the City's De-energization Mitigation Plan, and are used to ensure water service delivery and sanitary sewer collection facilities continues during periods of power outages. The three existing generators currently used to provide emergency power for water pumping are over 20 years old, and next year will not meet Bay Area Air Quality Management District (BAAQMD) regulations for diesel emissions. The fourth generator to be purchased is to replace a generator staged at a critical lift station that is being leased, following the theft of a city -owned generator from that location. Security enhancements at the pump stations are being incorporated into capital improvement projects, such as the Country Club and Victoria Pump Station project, which came before Council on November 4, 2019. As outlined in more detail in the section below, staff followed three steps in researching and developing the recommend action. The first step was determining the requirements and specifications of the needed equipment. Next, staff researched and evaluated the best, currently available technologies to meet the requirements critical in providing water and collecting wastewater throughout the City in times of power outages and while addressing growing environmental concerns with internal combustion engines. Staff, unfortunately, found no current viable alternatives to the proposed the diesel engines to provide reliable power to deliver critical services during a power outage. Finally, staff evaluated procurement strategies as allowed for in our City Ordinance to identify the best value to the City while following competitively bid process. The recommended action, determined to provide the best value to the City, takes advantage of a competitively bid cooperative purchasing program. DISCUSSION The City pump stations require backup power providing 480 volts with 150 amps of current. The three -current mobile generators to power water facilities have become obsolete because they have tier zero diesel motors that are no longer in compliance with BAAQMD regulations. The Department developed specifications for the replacement generators to be utilized at all sites, allowing greater flexibility during emergencies and to be in accordance with BAAQMD guidelines. The new generators will be tier 4F, which means that the generators will meet the latest emission milestone established by the EPA and the California Air Resources Board applicable to new engines for power generation applications. For non -road compression ignition engines, i.e. diesel, tier 4 is the strictest tier, and the selected generators have the tier 4 engine/emission system. Mobile generators are required to have an integrated fuel tank which can be easily re -fueled on-site. With this feature staff can ensure generators are able to reliably provide the needed power. In researching alternatives to internal combustion engines, staff confirmed that there is no available mobile solar/battery system that could replace the existing small 70 KW or the larger 100 KW generators. All battery options for emergency backup power are intended for residential use with not enough kilowatts (KW) or voltage output needed for pump station in question. Additionally, staff reviewed the Regional Climate Protection Authority screening tool for emergency backup power and found no commercial grade battery alternatives for the pump station use. In researching alternative fuels, staff found no portable propane or natural gas generators on the market that would meet the requirements. As for the procurement strategy, the City of Petaluma is a member of the Sourcewell Cooperative Purchasing Program (Formerly National Joint Powers Alliance), which provides the City the opportunity to access competitively awarded, nationally leveraged cooperative purchasing contracts. Purchase of specialized equipment provides better prices on state and national cooperative lists since local vendors do not sell this type of specialized equipment. Participating in this competitively bid and awarded statewide purchasing program complies with the Petaluma Municipal Code, Section 4.04. 100 (Cooperative purchasing programs), which supports the purchases of supplies and equipment made under a cooperative purchasing program with the State, County, or other public agencies that have been competitively bid and awarded. The following is provided as background information on the cooperative purchasing program. Sourcewell is continuously refining their Request for Proposal process to meet their members' needs, which will meet or exceeds those needs. Sourcewell identifies its members' needs by regular outreach to their members, through advisory committees, and researching best K approaches. After member need is established, permission to develop the solicitation and procurement process is sought from its publicly elected Board of Directors. A draft solicitation is created and publicly advertisement and noticed. A pre -conference is held to clarify and answer questions. If needed, addendums are issued. Proposals are date stamped when received. The evaluation of the proposals received by the bid closing date and time are done by a committee and the findings are given to the Chief Procurement Officer. Sourcewell and Fleets for the Future (174F) have created a partnership to coordinate the increased procurement of alternative -fuel vehicles (AFV) throughout the United States. F417 is a national partnership of regional council, Clean Air coalitions, and industry experts. Their purpose is to coordinate five regional and one national procurement initiatives to consolidate bulk orders of AFV. This helps to disseminate best practices, usage, procurement strategies for vehicle selection, and assists with vehicle cost reduction. The price for the generators is $289,931.50 under the Sourcewell Cooperative Purchasing program and is based on competitive bidding conducted by Sourcewell, with a bid awarded to All Star Rents. All Star Rents has met all the specifications for the generators under the Sourcewell cooperative purchasing program. PUBLIC OUTREACH This agenda item appeared on the City's tentative agenda document on Monday, December 2, 2019, which was a publicly -noticed meeting. ALTERNATIVES The following is provided to Council as alternatives to the recommended action: 1. The Council can reject the purchase and Staff will continue to rent the one backup generator for the lift station and rent three additional 100 Kw generators to provide emergency back up generators until a sustainable technology is developed and produced as an alternative. 2. The Council can reject the purchase of the four emergency back-up generators and the current generators will not comply with Air Resource Board requirements and may not be reliable in an emergency. FINANCIAL IMPACTS The purchase price of the generators is $289,931.50. This cost of this equipment is included in the FY 19/20 adopted budget. The source of funding is water and waste water operating accounts. ATTACHMENTS 1. Resolution Attachment 1 RESOLUTION APPROVING THE PURCHASE OF REPLACEMENT GENERATORS FROM ALL STAR RENTS IN THE AMOUNT OF $289,931.50 THROUGH SOURCEWELL COOPERATIVE PURCHASING PROGRAM AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE PURCHASE WHEREAS, the City of Petaluma seeks to purchase four replacement mobile generators to provide a needed emergency backup for City facilities and operations platform for the Public Works and Utilities Department; and WHEREAS, the current generators have exceeded their useful life, and are no longer in compliance with the latest Bay Area Air Quality Management District regulations for diesel emissions; and WHEREAS, the City is a member of the Sourcewell Cooperative Purchasing Program (formerly National Joint Powers Alliance) which supports cooperative purchasing, allowing the City the opportunity to access competitively awarded and nationally leveraged cooperative purchasing contracts; and WHEREAS, the Sourcewell Cooperative Purchasing Program provides an advantage by creating an opportunity to access competitively awarded nationally leveraged cooperative purchasing contracts in accordance with Petaluma Municipal Code Section 4.01.100; and WHEREAS, the lowest Sourcewell cooperative price meeting specifications for the generators was submitted by All Star Rents for $289,931.50; and WHEREAS, the Public Works and Utilities Department has funds budgeted in fiscal year 19/20 to purchase the replacement generators. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby approves the cooperative purchase of the replacement generators from All Star Rents and authorizes the City Manager to execute all necessary documents to complete the purchase. 0