Title
Approving a lease agreement with United Rentals in the amount of $1,062,390 for a temporary power generator associated with the Surface Water Treatment Plant Emergency Generator Project, and authorizing the City Manager to execute the same.
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.
As the global market has seen significant delays in electrical components, the emergency generator project has seen delays in the generators and transformers for the project which has created a problem with the project is critical to both the City’s core water infrastructure as well as the Surface Water Treatment Plant Expansion project as that construction will need to have the generator equipment installed. Even though the equipment was both pre-purchased by the City and ordered early in the project by the contractor, we have still seen a delay in the generators slip by roughly 4 months and the transformer for the project be delayed until November 2023.
As the temporary equipment that was provided by United Rentals is already on-site and installed, this agreement would only extend the time that the equipment is on-site until the permanent equipment arrives. Also, after the passage of SB3 after winter storm Uri, the City is now required to have the generators at the facility to comply with state law to always have the ability to maintain 35 psi within our water system at all times even during extended periods of power outages.
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 of temporary generator equipment from United Rentals for the Surface Water Treatment Plant Standby Generator project.
Deadline for City Council Action
November 29, 2022
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X__ No ___ N/A __
Amount: _$1,062,390_______
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A ___ Required _X__ Date Completed: ___10/24/22________
Supporting documents attached:
United Rentals Rental Agreement, Purchasing Rider
Recommended Action
Staff recommends approving a lease agreement with United Rentals in the amount of $1,062,390 for a temporary power generator associated with the Surface Water Treatment Plant Emergency Generator Project, and authorizing the City Manager to execute the same.