HomeMy WebLinkAboutItem 10h - Purchase Order for Repairs of Emergency GeneratorPurchase Order with Valley Power Systems, Inc.
November 5, 2019
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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
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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
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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.