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HomeMy WebLinkAboutItem 10b - Change Order for Emergency Generator Rental STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: March 17, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Carlos Aguilar, General Services Superintendent SUBJECT: RESOLUTION NO. 7659 AMENDING THE FISCAL YEAR 2025-26 FACILITY MAINTENANCE OPERATING BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $25,000 FOR THE EMERGENCY GENERATOR RENTAL AT FIRE STATION 107, OFFSET BY A REDUCTION IN THE GENERAL FUND; AND APPROVE A CHANGE ORDER TO THE PURCHASE ORDER WITH VALLEY POWER SYSTEMS, INC. FOR THE EMERGENCY GENERATOR RENTAL AT FIRE STATION 107 IN THE AMOUNT OF $25,000 CEQA: Not a Project Recommendation: Adopt and Approve SUMMARY During the January 2025 Windstorm event, several components of the emergency generator at Fire Station 107 were damaged due to widespread power surges in the area. After thorough troubleshooting, it was determined that immediate repairs were not feasible. As a result, the Public Works Services Department (“PWSD”) opened a Fiscal Year 2024-25 Emergency Purchase Order with Valley Power Systems, Inc. for the rental of an emergency generator for Fire Station 107. Due to the equipment being needed for longer than anticipated, the PWSD subsequently opened a Fiscal Year 2025-26 Purchase Order with Valley Power Systems, Inc. to continue renting the emergency generator. The total cost of the Fiscal Year 2025-26 generator rental is estimated to exceed the Purchase Order amount by $25,000. Since the total rental cost from Valley Power Systems, Inc. now exceeds $30,000, the Change Order requires City Council approval. Change Order for Emergency Generator Rental March 17, 2026 Page 2 of 4 It is recommended that the City Council adopt Resolution No. 7659 amending the Fiscal Year 2025-26 Facility Maintenance Operating Budget, authorizing a supplemental budget appropriation in the amount of $25,000 for the emergency generator rental at Fire Station 107, offset by a reduction in the General Fund; and approve a Change Order to the Purchase Order with Valley Power Systems, Inc. for the emergency generator rental at Fire Station 107 in the amount of $25,000. BACKGROUND During the January 2025 Windstorm event, widespread power surges in the area damaged several components of the emergency generator at Fire Station 107, including the control board, transfer switch, and switchgear. After thorough troubleshooting, it was determined that immediate repairs were not feasible. As a result, the PWSD opened an Emergency Purchase Order for Fiscal Year 2024-25 with Valley Power Systems, Inc. for the rental of an emergency generator for Fire Station 107. Valley Power Systems, Inc. promptly supplied the requested emergency generator and connection to Fire Station 107, providing reliable backup power and ensuring readiness for any additional outages. The rental cost for the emergency generator for Fiscal Year 2024-25 totaled $35,439.70. Further evaluation of the damaged emergency generator revealed that many of the unit’s replacement parts are obsolete, making it necessary to purchase a new emergency generator. On October 7, 2025, the City Council approved the purchase of a new emergency generator for Fire Station 107. The new emergency generator will be a Cummins 80-kilowatt diesel unit that will provide adequate and reliable backup power to Fire Station 107. In addition, the new generator will operate with significantly reduced noise levels and will deliver improved fuel efficiency, consuming less diesel while maintaining optimal performance. Until the new generator is fully built and installed, the rented generator remains necessary to ensure uninterrupted backup power is available to Fire Station 107. Accordingly, the PWSD opened a Purchase Order for Fiscal Year 2025-26 with Valley Power Systems, Inc. to continue rental services. Installation of the new emergency generator is anticipated to be completed in April 2026. Therefore, the temporary unit is needed at Fire Station 107 through the end of April 2026. Change Order for Emergency Generator Rental March 17, 2026 Page 3 of 4 DISCUSSION Due to the rental emergency generator being needed for longer than anticipated, the Fiscal Year 2025-26 Purchase Order of $29,999 is insufficient to cover the generator rental costs through April 2026. The rented emergency generator needs to remain in place until a new emergency generator is built and installed. The rented equipment has been essential in ensuring uninterrupted power is maintained in the event of outages. The rental unit enables critical systems, such as emergency communications, dispatch equipment, lighting, bay door operations, and life-safety systems, to remain fully functional, even when the main power supply is down. The additional rental services that will be provided by Valley Power Systems, Inc. total $25,000, requiring an increase to the Fiscal Year 2025-26 Purchase Order. Since the City Manager’s signature authority is limited to $30,000, City Council authorization is now required to increase the Purchase Order. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT The temporary emergency generator has been needed longer than anticipated while the new permanent unit is being built and installed. The additional rental costs required through April 2026 were not included in the Fiscal Year 2025-26 Facility Maintenance Operating Budget. As a result, an appropriation of $25,000 from the General Fund is being requested and will be placed into the Facility Maintenance Operating Budget to pay for this expense. With the original Purchase Order for $29,999, and the requested $25,000 Change Order, the FY2025-26 Purchase Order now totals $54,999 for the emergency generator rental. Sufficient funds are available in the General Fund to cover this request. Change Order for Emergency Generator Rental March 17, 2026 Page 4 of 4 RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); adopt Resolution No. 7659 amending the Fiscal Year 2025-26 Facility Maintenance Operating Budget, authorizing a supplemental budget appropriation in the amount of $25,000 for the emergency generator rental at Fire Station 107, offset by a reduction in the General Fund; and approve a Change Order to the Purchase Order with Valley Power Systems, Inc. for the emergency generator rental at Fire Station 107 in the amount of $25,000. Attachment: Resolution No. 7659 1 RESOLUTION NO. 7659 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2025-26 FACILITY MAINTENANCE OPERATING BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $25,000 FOR THE EMERGENCY GENERATOR RENTAL AT FIRE STATION 107, OFFSET BY A REDUCTION IN THE GENERAL FUND WHEREAS, the emergency generator at Fire Station 107 failed to supply backup power during the January 2025 Windstorm Event and was damaged due to widespread power surges; and WHEREAS, a temporary rental emergency generator has been installed by Valley Power Systems, Inc. since the existing equipment failed; and WHEREAS, the temporary emergency generator has been needed longer than anticipated while the new permanent emergency generator is being built and installed; and WHEREAS, the total cost for the rental of the temporary emergency generator through April 2026 will exceed the Fiscal Year 2025-26 Purchase Order with Valley Power Systems, Inc by $25,000; and WHEREAS, the additional rental costs through April 2026 were not included in the Fiscal Year 2025-26 Facility Maintenance Operating Budget; and WHEREAS, the additional rental costs will exceed the Purchase Order with Valley Power Systems, Inc by $25,000, and a supplemental budget appropriation in 2 this amount is necessary to cover the rental expenses for the emergency generator at Fire Station 107, offset by a reduction in the General Fund. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The sum of twenty-five thousand ($25,000) is hereby appropriated, to the Fiscal Year 2025-26 Facility Maintenance Operating Budget for the purposes of funding the Change Order to the Purchase Order with Valley Power Systems, Inc for the emergency generator rental at Fire Station 107. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. [SIGNATUES ON THE NEXT PAGE] 3 Passed, approved and adopted this 17th day of March, 2026. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: Michael J. Maurer City Attorney