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Home My WebLink About10C Emergency Generator 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: OCTOBER 6, 2008 10C STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PURCHASE OF AN EMERGENCY GENERATOR FOR CITY HALL DISCUSSION: Introduction The purpose of this agenda is for the City Council to approve the purchase and installation of an emergency generator for City Hall. Histont For emergency purposes, generators are installed both at the Police Station and City Hall. During construction the City allowed substitution of refurbished generators for new as a cost savings measure as long as the generators met specifications. The City received a credit of $13,000 to accept refurbished rather than new generators for the two buildings. The refurbished generator at the Police Station works well and has been accepted by the City. The City Hall 30 kW standby generator was refurbished and still does not work properly after more than 1 ~ years of repairs and adjustments by the Contractor. It has now been removed by the Contractor. This generator was only designed to operate critical functions at City Hall. Those functions include computer servers and computer system, phone system for the City Hall, Police Station and Maintenance Center. Additionally the generator operates the City Hall sewage lift station The reason this system is centralized to City Hall and not the Police Station is the staff that manages the data and voice systems are located at City Hall. The City Manager has notified the Contractor that the City is rejecting the generator and will purchase a replacement. The cost of the City Hall Generator and transfer switch was $8,200. Current Circumstances After more than 1 ~ years of un-reliable emergency power at City Hall, staff feels it is important to get this issue resolved. Prior to replacing the generator Staff believes the following questions should be considered: 1) Is a generator at City Hall needed? The generator is critical to maintaining phone and computer service to City facilities. The impacts of lost phone service to the Police Station, Fire Station and Maintenance Center during an emergency are of most concern. Of less importance is the lift station located at City Hall that provides sewer service is not operable without the generator. R\Council\2008 Agenda Reports\10 06 08\CH Generator Agenda - 2.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 2) Can the critical services be relocated to the Police Station? City Hall was designed to be the hub for computer and phone service for the City. Relocating the equipment to the Police Station is possible. Staff has received estimates from our phone and IT consultants in the amount of $23,500 to relocate these critical elements to the Police Station. Based on the costs of relocation and the importance particularly in communications Staff believes a new generator should be installed at City Hall. As part of our emergency plans for facilities the City has standardized emergency generators for all Public Works facilities and Fire Station NO.2. This allows City Staff to complete emergency repairs and allows one source monthly contract inspections. Currently the City has 14 emergency generators of which only 3 including the removed City Hall generator were not standardized to Caterpillar equipment. The City could utilize a different model of generator for City Hall. This would increase maintenance contract costs as the economies realized by sole source service as are negated. The City does also have Cummins and Onan generators maintained by City Staff at other facilities so repair parts for these are stocked or available. Public Works maintenance staff (not mechanics) which are the emergency responders to generator issues do not routinely work on either of these generator types, however a Cummins generator is being utilized long term at the Police Station and developing a familiarity with that manufacturer is warranted. Because the City has a Cummins generator in place at the Police Station, staff believes that a Cummins should also be considered. Staff solicited quotes for a new Cummins and Caterpillar generators. Staff also solicited quotes for a used Caterpillar Generator. It should be noted that the only available generator was as is, no warranty and more than 6,000 hours use which is excessive. I Cummins I New 30KW $20,379 I Used 30KW I NA *No warranty with 6,000 hours of use Caterpillar $19,860 I $14,800* Based on the quotes received Staff recommends purchase of a new 30kW Caterpillar Generator. The cost for installation by a licensed electrician is $1,658. The total cost for the generator and installation is $21,518.00. ISSUES: The existing generator did not work and has been removed by Shaw Lundquist. City Hall was designed to be the central location for computer and phone services. The costs to relocate control of those services to the Police Station will cost $23,500. Without relocation or purchase of a generator the City would be without phone services at City Hall, Maintenance Center and Police Station during power outages. R:\Council\2008 Agenda Reports\ 10 06 08\CH Generator Agenda - 2.doc FINANCIAL IMPACT: Funding for the replacement shall be drawn from the Building Fund which includes retainage being held for the City Hall project. The City has allowed 1 % years for the Contractor to resolve the issues. The replacement generator cost is $19,860 for a new 30kW D30-8 Cat Diesel Generator and $1,658.00 for electrical services required for connection and wiring of the generator. The total cost is $21,518 for the generator and installation. There are sufficient funds available in the building fund for this purchase. The unacceptable generator has been removed from the City Hall site. The vender offered the City $4,000 credit on the basis that they incurred shipping costs, costs for the generator pad, etc. We agree that $1,700 of the $8,200 costs (pad and transfer switch) should be paid by the City. This means we will withhold $6,500 from the final payment for the replaced generator. ALTERNATIVES: 1. Approve a resolution authorizing purchase and installation of an emergency generator for City Hall. 2. Deny this agenda item for a specific reason and provide staff with direction. 3. Table this item to a certain date in the future RECOMMENDED MOTION: Staff recommends alternative number 1. Reviewed be J Frank Boyles, City R\Council\2008 Agenda Reports\ 10 06 08\CH Generator Agenda - 2.doc A RESOLUTION APPROVING THE PURCHASE OF AN EMERGENCY GENERATOR FOR CITY HALL Motion By: Second By: WHEREAS, The contract for the construction of City Hall required the Contractor to furnish and install a stand-by emergency generator; and WHEREAS, The generator provided by the Contractor has not functioned properly or operated since the building was occupied over one-and-a-half years ago; and WHEREAS, The City has made repeated complaints to the Contractor regarding the malfunctioning generator, which has failed numerous tests despite adjustments by the Contractor; and WHEREAS, The City has provided the Contractor with written notice that its procrastination and failure to provide a reliable and operational generator over the past one-and-a-half years is not acceptable and instructed the Contractor to remove the existing generator from the City Hall building; and further advised the Contractor the City will purchase and have installed a new generator installed utilizing the $7,000 value of the refurbished generator and funds remaining in the building fund; and WHEREAS, The emergency generator is critical to the operation of the City's computer and phone systems; and WHEREAS, City Staff has obtained quotes for the purchase of a 30kW generator in accordance with the City's Purchasing Policy and the low quote of $19,860 was provided by Ziegler for a Caterpillar generator; and WHEREAS, Staff recommends purchase of the emergency generator 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 authorized to purchase and have installed a D30-8 Caterpillar diesel generator for a total amount not to exceed $21,518.00 including electrical services. 3. Funding for the purchase and installation of the generator shall come from the building fund account #420-70205-580. PASSED AND ADOPTED THIS 6th DAY OF OCTOBER 2008. www.cityofpriorlake.com R:\Council\2008 Agenda o 05 CEpH6fiel~5J2.1.~~OOJof Fax 952.447.4245 R:\Council\2008 Agellda Reports\10 06 C8'CH Gellel8tor Resolution doc I Hauqen I Erickson I Hedberg I leMair , Millar YES Haupen Erickson Hedberg leMair Millar Frank Boyles, City Manager NO