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Home My WebLink About9C - Purchase of One Additional Generator CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: SEPTEMBER 20, 1999 9C GREG ILKKA, DIRECTOR OF ENGINEER CONSIDER APPROVAL OF APPROVING THE PURCHASE GENERA TOR. PUBLIC WORKS/CITY RESOLUTION ~_~/O t OF ONE ADDITIONAL AGENDA ITEM: DISCUSSION: HISTORY An Equipment Replacement Matrix was adopted by Council on May 19, 1997. The 1999-2003 Capital Improvement Program included $25,000 for the purchase of an additional generator for the Public Works Department. The additional generator will provide power at the Maintenance Center for the building and its fuel dispensing system, and to pump lift stations throughout the City during extended power outages. CURRENT CIRCUMSTANCES The City currently has two generators. One is a 1975 Onan genset and the other is a 1996 Caterpillar genset. Both are transportable units. The Cat genset is dedicated to the Wilds Booster station and would only be used at wellhouse #3 in order to run the well pumps long enough to fill both storage towers. During an extended power outage, generator power is needed at the Maintenance Center and at each of the 31 (soon to be 33 when South Shore Drive goes on-line) sanitary sewer lift stations in the City's sanitary sewer system. Continuous power is not required at each of the lift stations. Maintenance staff transports a genset from one station to the next, pumping each down and moving on to the next one in a continuous loop. After the 1998 storm, power was out for 18 hours and the crews were just barely able to keep up with lift station sewage flows. A longer 162(9&~ Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER power outage could not be accommodated with the current generators. This would lead to sewage backups in homes and businesses. The staff has investigated a number of options for providing generator service in emergencies. The City could attempt to rent a generator in emergencies. Success is unpredictable since other Cities are likely to have the same needs in the event of a widespread incident. If power outages occur because of a Y2K problem, generators are also not likely to be available. Consequently we have investigated the purchase of a . generator using two different scenarios. We solicited quotes on a new 60 KW generator. Ziegler Power Systems, while not selling a 60 KW genset, provided a quote on a new Cat 75 KW genset, of $32,213.00. Magnus Incorporated quoted a new MagneTek 60 KW genset at $24,500.00, and a new Cummins EDI 60 KW genset at $23,000.00. Because the genset will only be used during power outages, staff felt it was appropriate to investigate the availability of used units. Magnus Incorporated was unable to quote any used units. Ziegler quoted a used 1996 Olympian 70 KW unit with about 3,500 hours at $14,950.00. See the attached proposal. A generator of this size has a life expectancy of about 15,000 hours. At 3,500 hours of use, the Olympian unit has 77% of its expected life left. Estimating the cost of a new 70 KW generator at $30,000, 77% of the cost would be $23,100, but the price quoted is $14,950.00. Based on these results, staff proposes purchasing the used Olympian 70 KW genset from Ziegler Power Systems. ISSUES In addition to the generator, appurtenant cables and plugs required to make the electrical connections to multiple configurations such as: 1) Lift stations, 2) Maintenance building, and 3) well pumps, are required. Ziegler quoted these costs as not to exceed $2,300.00. They will not be able to be more specific until they have the generator back GENSET.DOC ./ FINANCIAL IMPACT: ALTERNATIVES: GENSET.DOC in their shop. The authorizing resolution is written to accommodate the purchase of the appurtenant equipment. The City does not currently have a sufficient number of generators to provide essential City services in the event of extended power outages. This would be the City's third transportable generator. Ideally, the Maintenance Center would have a dedicated generator, like the Fire Station, in addition to three transportables. The Equipment Matrix does not.anticipate acquisition of a dedicated generator for the Maintenance Center at this time. A used unit comes with a 30 day warranty. We intend to operate the unit on a regular basis during the warranty period to assure that it is dependable. In addition to our ability to continue to deliver essential services during power outages caused by natural phenomenon it is prudent to add this generator at this time ,as another.stepinthe City's Y2K preparedness plan. CONCLUSION Based on the need for, and expected utilization of an additional generator, staff recommends purchase of the used 70 KW Olympian genset from Ziegler Power Systems. The funding source for this generator is the Equipment Revolving Fund. The current Equipment Replacement Matrix outlines this acquisition as an additional piece of equipment which does not replace an existing generator. The proposed cost is $14,950.00 plus appurtenant equipment not to exceed $2,300.00 (Total $17,250.00). The estimated cost in the Equipment Replacement Matrix is $25,000. There are two alternatives for the City Council to consider: 1. Approve Resolution 99-XX authorizing an expenditure not to exceed $17,250.00 plus applicable sales taxes from the Equipment Revolving Fund for the purchase of one additional used 1996 Olympian 70 KW generator and appurtenant equipment. 2. Deny this item for a specific reason and provide staff with direction. RECOMMENDED MOTION: REVIEWED BY: GENSET.DOC <, 3. Table this item for a specific reason and provide staff with direction. A motion and second to approve Resolution 99-XX. ~- RESOLUTION 99--'" 0 I RESOLUTION AUTHORIZING AN EXPENDITURE NOT TO EXCEED $17,250.00, PLUS APPLICABLE SALES TAXES, FROM THE EQUIPMENT REVOLVING FUND FOR THE PURCHASE OF ONE ADDITIONAL USED 1996 OLYMPIAN 70 KW GENERATOR AND APPURTENANT EQUIPMENT MOTION BY: rK SECONDED BY: \If WHEREAS, power outages within the City affect essential City services such as water and sanitary sewer, and WHEREAS, the City does not currently have an adequate number of generators to deal with such power outages, and WHEREAS, the addition of another generator will enhance the City's ability to continue delivery of essential City services during a power outage, and WHEREAS, the 1999 Equipment Replacement Matrix identifies the purchase of one (1) additional generator. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, an expenditure not to exceed $17,250.00, plus applicable sales tax, from the Equipment Revolving Fund for the purchase of a used 1996 Olympian 70 KW generator and appurtenant equipment from Ziegler Power Systems is hereby approved. Passed and adopted this 20th day of September, 1999. YES NO Mader ~ Mader Kedrowski Kedrowski Petersen Petersen Schenk Schenk Wuellner Wuellner {Seal} Frank Boyles City Manager City of Prior Lake 16200s~e Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER SEP-16-99 THU 04:40 PM ZIEGLER FAX NO. 6128874522 P. 01 I ZIEGLER lEI ZIEGLER POWER SlVSTEMS FAX COVER PAGE 8050 Slnle Highway 101 Shakopee,~N 55379 612/445~4292 888/320"4292 Date: 09/16/1999 .......,." Time 3:14PM To: Doug Wartman / qr~g,.!!.1ka Company: City of Prior Lake Subject: Portable Generator }<'ax: 447-4263 Prom: Jack DeYoe Phone: 612/887-4536 Pages Sent (iIlcluding this) z.. Fax: 612/887-4522 Comments: Per our leleC(ln ofthis AM please note the following information pcr your request: 1). Oly CT 8S Used Portable Generator rated at: 70 kW l)nmc, 277/480 & 120/208 & 120/240 volts (selectable), 60 HZ, 1800 RPM with: Sub-base fuel tank (in trailer) Sound attenuated enclosure power distribution panel for raled voltages Prior to last long term rental this unit had 3.458 hours of use Built in April 1996 SELL PRICE....$14.950.00 Avallahle before 11/15/99 (probably in 3-4 weeks) Options: 2). Addition of short cable to each voltage option (i.e. 277/480,120/208.120/240) with proper plug connector for amperage of the connection. Total of (3) assemblies provided. Price adder.....Not to exceed $1,000,00 3). Addition of plugs (male and female) fot the 277/480 volt cable. Price adder.....Not to exceed $600.00 4). Addition of plugs (mnte nnd female) for the 120/240 volt cable. Price ndder.....Not to exceed $200.00 5). Addition of plugs (male and female) for the 120/208 volt cable. Price adder.....Not to exceed $500.00 Note Deliverv ofolugs has vet to be determined. "" I :.~, .,....lII:ii::. '. ,:\t ',;~.~J,:olj., '...:" .:,., .~IlLl;>,~\''''-""Il....' ;, ~.~i~~.~ . ,*, <<, ~ I. r- ...." .'. ., SEP-16-99 THU 04:40 PM ZIEGLER FAX NO. 6128874522 All products ate FOB: Ziegler In closing if there any additional questions / comments please don't hesitate to call. Until Then, Jack DeYoe P. 02