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HomeMy WebLinkAboutItem 10h - Purchase Order for Repairs of Emergency GeneratorPurchase Order with Valley Power Systems, Inc. November 5, 2019 Page 1 of 3 DATE: November 5, 2019 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Carmen Masud, Senior Management Analyst SUBJECT: PURCHASE ORDER WITH VALLEY POWER SYSTEMS, INC. FOR REPAIR OF THE ORANGE GROVE WATER FACILITY EMERGENCY GENERATOR IN THE AMOUNT OF $216,733.66, AND AN APPROPRIATION FROM THE WATER RESERVE FUND Recommendation: Approve SUMMARY Due to catastrophic damage to the emergency generator at the Orange Grove Water Facility, the Public Works Services Department (the “PWSD”) issued an emergency purchase order to Valley Power Systems, Inc. to repair the generator and rent a temporary generator. Water from the generator’s cooling system mixed with the oil system and severely damaged the motor. The emergency generator at the Orange Grove Water Facility enables the City to continue to meet water and fire demands should a power outage or a natural disaster occur. It is recommended that the City Council approve a Purchase Order with Valley Power Systems, Inc. for repair of the Orange Grove Water Facility Emergency Generator in the amount of $216,733.66, and approve an appropriation from the Water Reserve Fund. BACKGROUND The Orange Grove Water Facility is a vital component in the City’s water distribution system. In May 2006, as part of the renovation of the Orange Grove Booster Station, a new Kohler 750 kW emergency generator was installed. The Orange Grove Booster Station pumps water from the Orange Grove Water Facility to reservoirs located in the north end of the City. In the event of a power outage or natural disaster, the emergency generator at the Orange Grove Water Facility will automatically start and supply power to the booster station. Purchase Order with Valley Power Systems, Inc. November 5, 2019 Page 2 of 3 DISCUSSION During a recent Southern California Edison (“SCE”) planned power outage at the Orange Grove Water Facility, the emergency generator automatically started up in response to the power outage. Upon startup, the generator engine produced loud, abnormal noises and excessive smoke began emitting from the exhaust system. As such, Public Works Services Department personnel shut down the generator. A preliminary inspection of the generator by PWSD mechanics revealed that the engine sustained major damage when an unidentified leak in the generator engine’s cooling system allowed water to mix with the engine oil system and greatly reduce the oil lubricating capability. The thinned engine oil resulted in the failure of numerous vital engine components. To repair the generator, the entire engine must be rebuilt. Without access to an emergency generator at this key facility, peak water system and/or fire demands would possibly not be met, should a power outage or natural disaster occur. In addition, the overall water system is further compromised by several wells being down due to contamination, ongoing repairs, and low water levels, leaving the City with very limited redundancies. Under City Code Section 2846.1, supplies, materials, and equipment may be purchased without complying with normal bidding procedures when an emergency situation occurs. For projects of more than $30,000, a report on the emergency and work performed shall be provided at the next regular meeting of the City Council. Based on the factors identified above, the City Manager determined that an emergency situation occurred when the emergency generator failed during key summer months and heading into peak fire season. As a result, the PWSD issued an emergency purchase order to Valley Power Systems, Inc. in the amount of $216,733.66. The purpose of this agenda item is to comply with the requirement to inform the City Council at the next regular meeting and ratify the purchase order. Valley Power Systems, Inc. is a local distributor for Kolar generators and specializes in Detroit MTU diesel engine repair, which is the type and brand of generator at the Orange Grove Water Facility. Valley Power Rental System, Inc. was also able to provide rental for a generator at the Orange Grove Water Facility until repairs to the emergency generator can be completed. It is anticipated that it will take approximately two months to repair the emergency generator at the Orange Grove Water Facility. ENVIRONMENTAL ANALYSIS Rebuilding the Orange Grove Well generator motor does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. In addition, this work would be considered Purchase Order with Valley Power Systems, Inc. November 5, 2019 Page 3 of 3 repair to an existing facility, which is also exempt from CEQA requirements. Thus, this matter is exempt under CEQA. FISCAL IMPACT The total cost to repair the Orange Grove Water Facility Generator is $216,733.66 and was not budgeted as part of the Fiscal Year 2019-20 Operating or Capital Improvement Budget. An appropriation of $216,733.66 from the Water Reserve Fund is being requested. The Water Reserve Fund exists to address emergencies such as this; sufficient funds are available to cover this request. RECOMMENDATION It is recommended that the City Council approve a Purchase Order with Valley Power Systems, Inc. for repair of the Orange Grove Water Facility Emergency Generator in the amount of $216,733.66, and an appropriation from the Water Reserve Fund.