To: Mark R. Hafner, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider a resolution approving the purchase of one (1) replacement emergency diesel generator and installation services from Fort Worth Electric of Fort Worth, Texas for the Municipal Service Center, through the interlocal agreement with the Tarrant Regional Water District (TRWD), and authorizing the City Manager to execute all related purchase documents on behalf of the City of Keller, Texas.
Action Requested:
Consider a resolution approving the purchase of one (1) replacement emergency diesel generator and installation services from Fort Worth Electric of Fort Worth, Texas for the Municipal Service Center through the interlocal agreement with Tarrant Regional Water District in the amount of $237,756.00.
Background:
The requested replacement emergency generator is to be utilized by the Municipal Service Center (MSC) for power during an emergency/outage. The generator replacement was already planned as a part of the City’s Facility Capital Replacement Program, but the February 2021 winter weather event adjusted the scope for replacement from a like sized generator to an upgraded generator which could power the facility in all events. The 17 year old existing unit was originally sized to provide power for City’s fleet fueling system, the water system’s Supervisory Control and Data Acquisition (SCADA) system and select emergency lighting for the facility. The requested generator will provide for regular operations capability.
Staff performed research to determine if other generator options were available based on different use cases. However, after consulting with several vendors, the costs of building modifications required to be made for the implementation of alternative use cases would make the project costs substantially the same as the replacement of the existing emergency generator. Timeframes were also taken into account at the time with a replacement unit expected to arrive within 12 months of the order date. However, supply chain bottlenecks and manufacturer delays have pushed an arrival date to as many as 18 months from the date the order is placed.
The City created a Facility Capital Replacement Program during Fiscal Year 2017-2018 to provide for the repair and/or replacement of capital items at various city facilities, to include roofs, air conditioners and generators. As the requested generator was included in the program, it was programmed to be requested during the current fiscal year. This planned replacement will take advantage of funds allocated through the American Rescue Plan Act of 2021 (ARPA), which provides funds for the acquisition and which the Council adopted through Resolution No. 4423.
City staff has reviewed and determined that the bid (See Exhibit A) from Fort Worth Electric of Fort Worth, Texas for the TRWD provides for the best value and most responsible unit prices for such services and recommends the approval and purchase of an emergency diesel generator and associated installation services in the amount of $237,756.00.
Financial Impact:
Funds for this replacement are included in the Facility Capital Replacement Fund. $200,000.00 will come from ARPA funding and $50,000 will come from the Facility Capital Replacement Fund. The total amount budgeted for this item is $250,000.00, but the resulting proposal arrived at a total of $237,756.00; a difference of $37,756.00. The vendor has proposed to purchase the existing generator in the amount of $5,000, reducing the overage to $32,756.00. Budgeted funds may need to be reallocated to the next fiscal year at a later date, depending on changes to delivery and installation timelines.
Citizen Input/Board Review:
Not applicable
Legal Review:
The City Attorney has reviewed and approved.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Staff recommends approval of this resolution as presented in the amount of $237,756.00.