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Home My WebLink About5G - Emergency Standby Generator 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT JULY 17,2006 5G CRAIG ELDRED, STREET AND UTILITIES SUPERVISOR CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE EXECUTION OF THE CITY'S STANDARDIZED CONTRACT FOR THE PURCHASE OF AN EMERGENCY STAND-BY GENERATOR FOR THE MAINTENANCE CENTER Introduction The purpose of this agenda item is for the City Council to approve a resolution authorizing the purchase of one 100 kilowatt stand-by generator for the purpose of supplying emergency power at the City's Maintenance Center. Historv At the June 5, 2006, City Council meeting, staff was authorized to advertise for bids for a stationary stand-by generator at the City's Maintenance Center. The generator is needed for the following reasons: - Prior Lake's growth in population - Prior to 9/11, stand-by power was not a priority - Additional funding was not contemplated at the time of the Maintenance Center construction - Prior Lake Public Works has since been designated as an emergency service organization of the Prior Lake community - The Maintenance Center does not have any emergency power thereby rendering operations difficult and dangerous during power outages. Current Circumstances In accordance with City purchasing policy, staff obtained quotes from two sources which additionally provided pricing related to the City's Lift Stations Standardization and Water System Improvements. The companies providing quotes were Cummins N Power and Ziegler Power Systems. Related costs are listed in following chart: Vendor Cummins N/Power Ziegler Power Systems White Bear Lake, MN Shakopee, MN Unit Model 100DG-DB D100P4 Base Bid $ 35,900.00 $ 37,827.00 Fuel $ 2,000.00 Included Fill/Color Spec 2 Year $ 700.00 Included Warranty Subtotal $ 38,600.00 $ 37,827.00 Tax $ 2,509.00 $ 2,458.00 R:\Agenda Reports\July 17 2006\5G standby generator purchase agenda. doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 ISSUES: FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: Total Base $41,109.00 $ 40,285.76 Bid 224 Gallon Included ($4,300.00) Fuel Tank includes tax Add/Deduct Total $41,109.00 $35,985.76 Alternate Bid Conclusion Ziegler Power Systems provided a voluntary alternate deduct. This deduct provides a standard factory 224 gallon fuel tank 24 hour capacity in lieu of the 350 gallon fuel tank specification. The Cummins base bid included a 224 gallon tank. The total deduction is $4,300.00 Attached to the Agenda Report is the electrical systems consultant report. Below I have summarized the consultant comments recommending awarding Ziegler Power Systems the sale of the generator: 1. The Ziegler bid of $40,285.76 can be reduced by $4,300.00 to a total amount of $35,985.76 if the deduct for the smaller fuel tank is accepted. The Cummins bid was based on a smaller tank that is comparable to the Ziegler alternate. Additionally, the Cummins bid would need to be increased by $700.00 to meet the 2-year warranty requirements and by $1,500.00 to meet the color selection criteria in the specifications. This would result in a bid of $40,667.00 for the Cummins generator. Thus the Ziegler generator is less expensive. 2. The Cummins bid did not mention the fuel fill at the conclusion of the project. The fuel fill would result in increased cost to the City of about $500.00. 3. Additional items not confirmed in the Cummins bid are the interior lighting, engine heater shut off valves, the battery charger, sound protectors, and the amount of sound alteration offered. 4. If City Council approves the award of the generator to Ziegler Power Systems, the delivery date would be approximately 12 weeks for the stock generator, or 20 weeks for the new factory order. Cummins did not provide a delivery date. Staff agrees with the consultant and recommends purchasing the generator from Ziegler Power Systems as well as using the alternative deduct which will lower the cost to $35,985.76. This will result in financial savings of $4,300.00, and decreases the delivery time from 20 weeks to approximately 12 weeks. 1. Approve the resolution authorizing the purchase of one 100 kilowatt generator for the purpose of providing stand-by emergency power at the City's Maintenance Center from Ziegler Power Systems of Shakopee, Minnesota, for a total cost not to exceed $35,985.76. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item for a specific reason. Alternative #1. R:\A,genda Reports\July 17 2006\5G stardby generator purchase agenda,doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-xx A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE PURCHASE OF AN EMERGENCY STAND-BY GENERATOR FOR THE MAINTENANCE CENTER FROM ZIEGLER POWER SYSTEMS Motion By: Second By: WHEREAS, City staff has identified the need for stand-by power at the City Maintenance Facility; and WHEREAS, The adopted Capital Improvement Program for 2006-2010 has identified this item as a priority; and WHEREAS, This stand-by generator would provide a safe work environment during power outage periods for staff; and WHEREAS, Providing emergency services to residents of the Prior Lake community during power outage periods is of great importance; and WHEREAS, Two bids were received and compared on a line-by-Iine basis; the lower of the two being for $35,985.76 from Ziegler Power Systems; NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. City staff is hereby authorized to purchase the Stand-by Generator for the City's Maintenance Center from Ziegler Power Systems in an amount not to exceed $35,985.76. 3. Funds will be drawn from the Revolving Equipment Fund. PASSED AND ADOPTED THIS 17TH DAY OF JULY 2006. Hauaen Hauaen Dornbush Dornbush Erickson Erickson LeMair LeMair Millar Millar YES NO Frank Boyles, City Manager R:\Agenda Reports\July 17 2006\5G standby generator purchase resolution.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 KAEDING AND AsSOCIATES, INC. 7300 France Avenue South Suite 330 Minneapolis, Minnesota 55435-4545 Phone: (952) 831-0317 E-Mail: paulk@kaeding.com Fax: (952) 831-2179 June 20, 2006 CITY OF PRIOR LAKE PUBLIC WORKS DEPARTMENT Attn: Mr. Craig Eldred 17073 Adelmann Street SE Prior Lake, MN 55372 RE: CITY OF PRIOR LAKE MAINTENANCE DEPARTMENT STANDBY GENERA nON Dear Mr. Eldred: The bids for the generator sets and transfer switches submitted by Ziegler Power Systems and Cummins NPower have been reviewed. It is recommended that the generator project be awarded to Ziegler Power Systems based On the following: 1. The Ziegler bid of $40,285.76 can be reduced by $4,300, to a total of$35,985.76 ifthe deduct for the smaller fuel tank is accepted. The Cummins bid was based On a smaller fuel tank that would be comparable to the Ziegler alternate. Further, the Cummins bid would need to be increased by $700 to meet the warranty requirements, and $1,500 to meet the color selection criteria in the specifications. This would result in a bid of $40,667 for the Cummins machine. The generator set offered by Ziegler Power Systems is less expensive. 2. The Cummins bid did not mention the fuel fill at the conclusion of the project. The fuel fill would result in increased cost to the City of about $500, assuming 240 gallons of diesel fuel will cost about $2 per gallon. 3. The Cummins bid did not identify a delivery date. The Ziegler bid indicates 12 weeks from stock, or 20 weeks from the factory for new orders. 4. Additional items not confirmed in the Cummins bid are the interior light, engine heater shut off valves, the battery charger, sound protectors, and the amount of sound attenuation offered by the enclosure that Cummins NPower is proposing. However, the Ziegler bid appears to not be in compliance with the sound requirements, but the variation does not appear to be excessive. 5. The Cummins bid does not confirm that the transfer switch has in-phase monitoring, but it is believed this is a "standard" feature in the Cummins transfer switch. CITY OF PRIOR LAKE PUBLIC WORKS DEPARTMENT Attn: Mr. Craig Eldred June 20, 2006 Page 2 Please contact me if you have questions. If additional assistance is required regarding the ordering of the generator, let us know. Thank you. PFK:mj