title
ADOPT RESOLUTION TO AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT FOR THE PURCHASE OF GENERATORS AND AUTOMATIC TRANSFER SWITCHES WITH HOUSING
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Transfer funds in the amount of $625,337.93 from the 5.17 Public Wi-Fi Pilot, Project No. WARP505, to the Citywide Generator Replacements, Project No. WARP507.
2. Transfer funds in the amount of $1,000,000 from the Generator Replacements at Fire, Project No. F024024, to the Citywide Generator Replacements, Project No. WARP507.
3. Approve the use of a Cooperative Purchase Agreement through Sourcewell Contract No. 092222-CAT to provide the City preferential pricing from Caterpillar, Inc. through affiliated vendor Holt of California.
4. Authorize a contract with Caterpillar, Inc. of Irving, TX, through affiliated vendor Holt of California of Stockton, CA, in the amount of $1,317,099.32, for the purchase of eight generators and equivalent automatic transfer switches with housing.
5. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
On September 14, 2021, by Motion No. 2021-09-14-1501, Council approved the use of $78,052,072 in the American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds. The purchase of various equipment, including generators and related equipment, was identified as an eligible expense. Public Works has identified eight emergency generators in need of replacement at various Fire Stations. The proposed replacement units have surpassed their stated lifecycle and have multiple mechanical issues. Additionally, Arnold Rue Community Center has been identified as a cooling center during triple-digit heat days. Arnold Rue Community Center does not currently have an emergency generator or an automatic transfer switch (ATS). Public Works is recommending the purchase of eight generators and eight ATS to provide emergency services to various Fire Stations and the Arnold Rue Community Center (Attachment A).
Sourcewell is a public agency based in Minnesota that issues cooperative purchasing agreements to simplify the procurement process for public agencies and take advantage of volume purchasing. Use of a cooperative purchasing agreement streamlines administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the generators and ATS available through Sourcewell meet the City’s requirements for this type of equipment.
It is recommended that Council adopt a resolution authorizing the City Manager to execute a Cooperative Purchase Agreement (COOP) through Sourcewell, for the purchase of eight generators and eight ATS, with Caterpillar, Inc. through affiliated vendor Holt of California in the amount of $1,317,099.32 (Attachments B and C).
DISCUSSION
Background
On September 14, 2021, by Motion No. 2021-09-14-1501, Council approved the use of $78,052,072 in the ARPA Coronavirus State and Local Fiscal Recovery Funds. The purchase of various equipment, including generators and related equipment, was identified as an eligible expense.
The phone lines and other emergency notification equipment at each fire station require uninterrupted power to ensure receipt of call notifications. These notifications are crucial and directly dispatch fire personnel to an emergency. The proposed replacement of generators and the installation of the appropriate hardware will allow the generators to automatically transfer the stations to backup power when a power outage occurs. This will ensure that the facilities and equipment will be able to operate consistently during blackouts and critical events. The planned replacements increase the resources available for preventative maintenance and are critical to the availability and performance of the Fire Department’s facilities and emergency responses.
In summer and other harsh weather conditions, PG&E, along with the California Independent System Operator, decides when rotating outages are necessary to reduce demand on the power grid. These outages rotate through California, affect large geographical areas, and can last for a few hours at a time. The City has designated the Arnold Rue Community Center to be a fully functional cooling center when we enter triple-digit weather. The Arnold Rue Community Center also serves as a warming center during the winter. Installing a backup generator at the Arnold Rue Community Center will allow it to continue to serve as a cooling and warming center for the community during power outages.
The City’s replacement criteria for emergency generators, based on industry standards for performance and efficiency, is 15-20 years. Adherence to this standard replaces equipment before routine failures and breakdowns are experienced, reducing the demand for extensive mechanical repairs. The replacement standard increases the resources available for preventative maintenance and is critical to the availability and performance of all fleet equipment, which includes emergency generators. Fleet staff identified eight in-service generators that have exceeded the age criteria and have recurring mechanical or operational problems. Replacement of the units located at Fire Station Nos. 1, 2, 3, 4, 10, 11, and Emergency Communications Dispatching (ECD) is recommended.
Present Situation
Staff recommends the replacement purchase of generators and ATS for Fire Station Nos. 1, 2, 3, 4, 10, 11, and ECD (Attachment B), along with the additional purchase of one generator and ATS for the Arnold Rue Community Center (Attachment C) utilizing a COOP with Sourcewell. Assessments were completed at each facility location to determine the power load requirement and equipment needed to ensure full backup power to the site. The specifications for the proposed equipment have been approved by Public Works’ staff.
Sourcewell is a public agency based in Minnesota that serves as a contracting agency to streamline the procurement process for public agencies and takes advantage of volume purchasing. All Sourcewell contracts have been competitively bid, solicited nationally, reviewed, evaluated by a committee, and recommended to the Sourcewell Board of Directors for consideration of award. The use of these contracts is optional and is available to California State and local government agencies.
It is recommended that Council adopt a resolution authorizing the City Manager to execute a COOP through Sourcewell, for the purchase of eight generators and equivalent ATS with housing, with Caterpillar, Inc. through affiliated vendor Holt of California in the amount of $1,317,099.32. The equipment being replaced will be removed from the fleet and sold at public auction.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bid process. These findings include:
1. Sourcewell established a COOP with Caterpillar, Inc. through affiliated vendor Holt of California for the purchase of eight generators and equivalent ATS with housing.
2. The Caterpillar, Inc. COOP was established pursuant to a formal competitive bidding process conducted by Sourcewell on behalf of its governmental members, of which the City is one.
3. Taking advantage of the leveraged procurement agreements negotiated by Sourcewell will save the administrative expense of City staff conducting separate procurements.
4. The specifications for the equipment available through the Sourcewell contract meet the City’s requirements for their type of equipment.
Staff recommends that Council adopt a resolution authorizing the City Manager to execute a COOP through Sourcewell, for the purchase of eight generators and eight ATS, with Caterpillar, Inc. through affiliated vendor Holt of California of Stockton, CA, in the amount of $1,317,099.32.
FINANCIAL SUMMARY
With the transfer of funds in the amount of $625,337.93 from the 5.17 Public Wi-Fi Pilot, Project No. WARP505, and $1,000,000 from the Generator Replacements at Fire, Project No. F024024, to the Citywide Generator Replacements, Project No. WARP507, there will be sufficient funding to authorize a contract with Caterpillar, Inc. through affiliated vendor Holt of California, in the amount of $1,011,928.75 for the purchase of seven generators and seven ATS.
There is sufficient funding available in the Fleet ISF Equipment Acquisition Fund, Account No. 4530-718-800004-500-000, to authorize a contract with Caterpillar, Inc. through affiliated vendor Holt of California, in the amount of $305,170.57 for the purchase of one generator and one ATS for the Arnold Rue Community Center.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Equipment Replacement List
Attachment B - Quote from Holt of California (Fire Stations)
Attachment C - Quote from Holt of California (Arnold Rue Community Center)