Title
Authorizing the City Manager to enter into a lease agreement for a temporary power generator for the Lake Pump Station to United Rentals in the amount of $144,613.81 using their Sourcewell Cooperative purchasing agreement.
Summary
As has been noted on previous City Council items, the Surface Water Treatment Plant and Lake Pump Station currently do not have backup power supply in the event of an extended power failure as was experienced from February 15, 2021 to February 17, 2021. This creates a significant risk for the City’s Public Water System as the plant produces most of the water that is used within the City. Due to this risk and the need to make the City's water system more resilient in the event of an emergency, the City Council approved a professional services agreement with Gupta and Associates, Inc. on September 22, 2020 to design the emergency generator power system.
City Council approved the construction contract for the Lake Pump Station Generator project in August 2021. Although the contractor has completed work for the installation of the generator, staff was notified in late December that there was going to be a delay in the permanent generator for the Lake Pump Station that was originally slated to be delivered in January 2022. City staff, along with the design engineer and the general contractor for the project, began to work with the generator manufacturer to quantify what that delay was going to be so we could better understand our options. Kohler (the generator manufacturer) let the general contractor for this project and City staff know that the estimated delivery window for this generator was now August 2022. Kohler has stated that they have been impacted by global supply chain disruptions that has impacted their manufacturing processes for generators that has caused delays across the board for their equipment. City staff has requested more detailed information from Kohler to better understand what has been impacted and to ensure that we won't see further delays, but have yet to get that information from Kohler. City staff then worked with our design engineer to evaluate the requirements for a rental generator to be installed temporarily with some of the equipment already installed on the Lake Pump Station site to ensure the City's water supply is resilient in the event of a power outage.
In order to facilitate the installation of the temporary generator, we are proposing to rent an automatic transfer switch for a 4-month period of time until the permanent switch is installed on the existing gear and a rental generator will be connected to this new electrical gear. The rental agreement for the generator itself is to rent the equipment for a 9-month duration which will allow for extra time in the event the generator is delayed again by the manufacturer. In the event that the generator arrives early, the City would not be required to pay the rental agreement for the full term, but only for the time used.
As the temporary generators and the related installation will bring this project over the original budget, if there isn't savings in other areas to fund the difference, a future budget amendment will be needed.
United Rentals was chosen to provide the rental generator as they already have a Sourcewell Cooperative purchasing agreement that has already been competitively bid. They also have the ability to deliver the generator within 72 hours after award by City Council.
Prior City Council Action
On September 22, 2020, City Council approved the selection of Gupta and Associates for professional services associated with the standby generator at the Water Treatment Plant and Lake Pump Station project and authorized the City Manager to execute a professional services agreement in the amount of $652,914 for design and engineering services for the emergency generator at the Water Treatment Plant and Lake Pump Station.
On March 23, 2021, staff provided an update regarding the possibility of expediting the project and feasibility options for a temporary power generation system installation to get completed before the permanent installation.
On May 11, 2021, City Council approved the Professional Services Supplemental Agreement with Gupta and Associates for professional services associated with the modification of the scope of work and the modification of the original schedule to expedite the generator project as much as possible.
On August 10, 2021, City Council approved the construction contract for the Lake Pump Station Emergency Generator to McDonald Municipal and Industrial to provide emergency power to the Lake Pump Station.
On September 14, 2021, City Council approved the Facility Extension Agreement to Oncor Electric to provide a redundant electrical feed to the Surface water Treatment Plant.
On September 28, 2021, City Council approved the pre-purchase of the emergency power generator and related switchgear from Cummins Southern Plains, LLC for the Surface Water Treatment Plant Standby Generator Project.
On November 30, 2021, City Council approved the construction contract for the Surface Water Treatment Plant Standby Generator project to McDonald Municipal and Industrial to provide permanent emergency power to the Surface Water Treatment Plant.
On December 14, 2021, City Council approved the lease agreement with United Rentals for the rental of the temporary generator at the Surface Water Treatment Plant.
On January 11, 2022, City Council approved the change order with McDonald Municipal and Industrial for the installation of the temporary generator at the Surface Water Treatment Plant.
Deadline for City Council Action
January 25, 2022
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X*__ No ___ N/A __
*This project is listed as Surface Water Treatment Plant Standby Generator in the Water CIP.
Amount: _$144,613.81_______
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A ___ Required _X__ Date Completed: ___________
Supporting documents attached:
United Rentals Rental Agreement, Purchasing Rider
Recommended Action
Staff recommends authorizing the City Manager to enter into a lease agreement for a temporary power generator for the Lake Pump Station to United Rentals in the amount of $144,613.81 using their Sourcewell Cooperative purchasing agreement.