TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Quinn Company of the City of Industry, CA, for the purchase of a 375-kilowatt emergency generator and trailer, on the same terms and conditions afforded to Sourcewell, (formerly the NJPA), of Staples, MN, with Caterpillar, Inc., contract 120617-CAT, in a total amount not to exceed $289,983, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Quinn Company for the purchase of a 375-kilowatt emergency generator and trailer for the Energy Resources Department. This purchase was approved as a Fiscal Year 2022 mid-year enhancement request. Currently, Energy Resources is using a rented generator as a supplemental power supply for the Customer Service Call Center and Gas Services Dispatch Division. This equipment is a vital part of operational functions, and a permanent replacement for the rented generator will maintain services during a power outage.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies by purchasing under their contract on a voluntary and selective basis when authorized by a Resolution adopted by the City Council.
The Fleet Services Bureau and the Purchasing Division of the Department of Financial Management investigated procurement options, and the Sourcewell agreement with Caterpillar, Inc., through their local dealer Quinn Company (not a SBE, DBE, MBE, WBE or Local), was determined to provide the best discounted price while allowing for timely acquisition and delivery. All Sourcewell contracts are competitively bid and offer the best available pricing. There are currently no dealers or manufacturers of emergency generator sets and tandem-axle trailers with electric brakes in Long Beach.
This matter was reviewed by Deputy City Attorney Anita Lakhani on June 15, 2022, Purchasing Agent Michelle Wilson on June 3, 2022, and by Revenue Management Officer Geraldine Alejo on June 10, 2022.
SUSTAINABILITY
The generator uses a Tier 4 diesel-powered engine, certified by the California Air Resources Board for significantly lower emissions of particulates and oxides of nitrogen. The engine also has an oxidation catalyst, particulate filter, and catalytic reduction system.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on July 5, 2022 to ensure the contract is in place expeditiously, based on production and delivery estimates of 59 to 64 weeks.
FISCAL IMPACT
The contract will not exceed $289,983, inclusive of taxes and fees. The purchase will be funded within current resources budgeted in the Gas Fund Group in the Energy Resources Department. Annual replacement and maintenance costs of $33,348 will be collected through the regular Fleet Services Memorandum of Understanding (MOU) monthly billing process, beginning when the unit is delivered. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER