HomeMy WebLinkAbout15 Purchase Portable Backup Generator-msC
MEETING DATE
TO:
FROM:
SUBJECT:
AGENDA ITEM #15
July 6, 2022
Board of Directors
Chad J. Reed, Water Utility Director
Consideration to Purchase Emergency Backup Generator
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a purchase agreement with Holt of California
to purchase a 400kW portable emergency backup generator in the amount of
$287,765.00 plus any additional taxes and fees.
BACKGROUND:
The Truckee Donner Public Utility District is solely fed by 11 active groundwater wells.
These wells require electrical power to pump water and this power can be interrupted at
any time. Historically these interruptions have occurred primarily during extreme winter
snow events. However this has recently changed with the introduction of NV Energy's
Public Safety Outage Management (PSOM) protocols, creating the potential for
prolonged outages triggered by high fire risk weather conditions (temperature, winds,
humidity, and fuel moisture). When the power is interrupted, ground water is only
produced at well locations equipped with backup generation. Currently the District has
backup generation installed at 3 of the 11 District wells.
Reliability in the water system is extremely important in preserving public health and
safety. One key component in system reliability is maintaining sufficient water storage
levels for potable water service and adequate fire flow protection. Equipping additional
groundwater wells with emergency backup generation will further enhance the District's
ability to maintain sufficient water storage levels during a prolonged power outage event.
The District has rented a backup generator for the past two summers with this year's cost
estimated at nearly $30,000 for the three months that a PSOM event is most likely to
occur. Staff is recommending a rental unit be secured for the 2022 fire season.
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ANALYSIS/BODY
Staff has been informed by several vendors that procurements for large generators are
experiencing relatively long lead times. In most cases, the availability of a 400kW
generator includes lead times in excess of 72 weeks. These long lead times are due to
the shortages being experienced across several different industries.
Holt of California CAT recently advised staff that a 400kW generator meeting District
specifications has been made available. Since this equipment is already in production
due to an order cancelled by another agency, the District has been presented the
opportunity to significantly reduce lead times with an estimated delivery in December of
2022.
One of the fundamental tenets of the District's mission statement is to "provide reliable,
high quality utility and customer service." This generator will increase the water
department's reliability by being able to pump more ground water during power
interruptions. The available generator unit is in a mobile configuration, adding potential
flexibility and redundancy to the District's current generator inventory.
Sourcewell has identified Caterpillar Inc. as a competitive bidder for diesel & natural gas
generators, parts and maintenance, through an RFP process. Section 3.08.060 of the
District Code states:
"The District may purchase materials, equipment, supplies, information technology
products and services through the State of California procurement program and jointly
with other public agencies"...
By utilizing a joint procurement, staff believes we can achieve an overall price that is lower
than the District can obtain through other purchasing channels. The overall savings to the
District comes in the form of reduced administrative and advertising costs associated with
the bidding process and by Sourcewell having negotiated a price relative to the market.
Goals and Objectives:
This item is in support of the following goals and objectives:
District Codel .05.020 Objectives:
3. Provide reliable and high quality water supply and distribution system to meet current
and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
Strategic Goals:
1.Manage for Financial Stability and Resiliency.
FISCAL IMPACT:
The generator purchase of $287,765.00 plus any additional taxes and fees is not in the
current Budget for FY22/FY23. Staff estimates $94,437 in grant funds can be utilized
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from the current generator grant of $300,000. The remaining $193,328 plus additional
taxes and fees are recommended to funded from water operating reserves. The water
operating reserve as of December 31, 2021 was $5.24 million and exceeded policy target
2021 balance by $340,000. Including this use of operating reserves in 2022, the
forecasted 2022 year-end operating reserve balance is $5.7 million and would exceed
policy target 2022 balance by $170,000. Utilizing operating reserve excess balance is
simplified recommended option, as compared to essentially the same similar option of:
transferring the excess balance to capital reserve and then utilizing capital reserves for
this expenditure.
ATTACHMENTS:
None.
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