Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
DATE: APRIL 22, 2025
SUBJECT: AUTHORIZATION FOR PROCUREMENT AND RENTAL OF PORTABLE
GENERATORS
EXECUTIVE SUMMARY
The City Council will consider authorizing procurement of portable generators, ratifying past monthly rental charges, and authorizing a purchase order with United Rentals to cover monthly rental of the portable generators. The proposed generators and rental units will be used at various groundwater well locations throughout the City to ensure sufficient power is provided to such wells to meet water demands of the City’s water system during power outages.
RECOMMENDATION
That the City Council:
1. Authorize procurement of portable generators deemed necessary or desirable up to the approved budget of $375,000; and,
2. Ratify past monthly portable generator rental charges in the amount of $162,000 and authorize the City Manager to execute a Purchase Order with United Rentals in the amount of $350,000 to cover past and future monthly rental of portable generators as deemed necessary or desirable within the approved budget.
BACKGROUND
In the past several years, the California Air Resources Board has required the City to phase out several of its portable generators due to strict air quality regulations making them unavailable for use within the City’s water operations. Additionally, the City recently experienced a power outage in all three of the City’s Southern California Edison service areas creating an interruption of power and loss of water pressure throughout the City.
In response, the City has procured the services of Untied Rentals to provide portable generators and associated equipment at various well site locations throughout the City
APPROVED BYCITY MANAGER
PROCUREMENT AND RENTAL OF PORTABLE GENERATORS
APRIL 22, 2025
PAGE 2
resulting in ongoing monthly expenses while it prepares to purchase additional generators to supplant the rented generators and those that have had to be retired.
ANALYSIS
Given the operational burden of having to phase out otherwise functional portable generators and the high cost associated with renting generators, City staff has explored the used generator market. Staff has subsequently found a number of used portable generators of adequate size with low operational hours from reputable manufacturers.
Such used generators are of good quality and operational ability and have been marketed at significant discounts from the high premium that the City would otherwise have to pay for new generators of similar size and quality. The used portable generator market, therefore, represents an advantageous means of supplanting those units, which have been phased out of use and defraying the long-term cost of the monthly rental of generators.
Due to the fluid conditions of the used generator market, where units with the exact specifications the City is looking for are not always available, staff is recommending that the City Council authorize the procurement of used portable generators deemed necessary or desirable up to the approved budget of $375,000 from the Water Fund.
Such authority will allow staff to move quickly with the procurement process should units with the correct specifications become available. Additionally, in order to pay for the rental units used to date and as needed in the months ahead, it is recommended that the City Council ratify past monthly rental costs and authorize the City Manager to execute a Purchase Order with United Rentals in the amount of $350,000 from the Water Fund to cover past and future monthly rental of portable generators as deemed necessary or desirable for emergency well usage within the approved budget.
CITY COUNCIL PRIORITIES
Efficiency & Adaptability
Quality of Life, Safety and Infrastructure
FISCAL IMPACT
Approval of the recommended actions will result in an expenditure of approximately $725,000 from budgeted Water Fund Operation funds to cover the Total Estimated Cost (break down listed in table below).
Description Amount
Procurement of Portable Generators $375,000
Monthly Rental of Portable Generators $350,000
Total Estimated Project Cost: $725,000
PROCUREMENT AND RENTAL OF PORTABLE GENERATORS
APRIL 22, 2025
PAGE 3
There is sufficient fund balance for the recommended actions. The budgeted funds proposed are Water Fund Operations Account Nos. 51-4-3510-0950, 51-4-3510-0870, and 51-4-3550-0700 as provided in the table below.
Account No. Funding Source Amount
51-4-3510-0950 FY 2024-25 Water Supply Operations Equipment $375,000 51-4-3510-0870 FY 2024-25 Water Supply Operations Equipment Rent $150,000 51-4-3550-0700 FY 2024-25 Water Program Support Contract Services $200,000 Total Project Funding: $725,000
ATTACHMENTS
None.