City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 21, 2023 FROM: GENERAL SERVICES DEPARTMENT WARDS: ALL SUBJECT: PURCHASE OF ONE ATLAS COPCO QAS 700 PORTABLE GENERATOR FROM VALLEY POWER SYSTEMS, INC. TO PROVIDE EMERGENCY POWER TO THE CORPORATION YARD ALTERNATIVE FUEL STATION IN THE TOTAL AMOUNT OF $316,359.19 – SUPPLEMENTAL APPROPRIATION ISSUE:
Approve the purchase of one Atlas Copco QAS 700 portable generator from Valley Power Systems, Inc. from the City of Industry to provide emergency power to the Corporation Yard Alternative Fuel Station in the total amount of $316,359.19.
RECOMMENDATIONS:
That the City Council:
Approve the purchase of one Atlas Copco QAS 700 portable generator from Valley Power Systems, Inc. from the City of Industry to provide emergency power to the Corporation Yard Alternative Fuel Station in the total amount of $316,359.19; and With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation in the Central Garage Fund, in the amount of $316,359.19 from the available fund balance in the Central Garage Fund, General Services-Motor Pool, Automotive Equipment account.
BACKGROUND:
Several City of Riverside (City) facilities are equipped with portable or stationary generators that provide emergency backup power during unexpected power outages. Some of these facilities include fire stations, police stations and police administration buildings, City Hall, Innovation and Technology Department, the Public Works Water Quality Control Plant, and the Riverside Public Utilities Operations Center. Another important facility that will be greatly impacted during a power outage is the Alternative Fuel Station located at the City of Riverside Corporation Yard. This facility has the capability to connect a portable generator in the event of an extended power outage which will allow the public and all City owned vehicles, such as the Refuse and Utility Line trucks, to continue to receive fuel.
Not having a backup power source for these, and many other facilities, could have a detrimental impact on daily operations. If one of these existing generators were to go out of service, there is currently not a spare unit that could be placed in temporary service while the permanent unit undergoes repairs. The proposed purchase of an additional portable generator will provide backup power to any of City facility during an unexpected power outage and prevent any City service disruption.
DISCUSSION:
Sourcewell is a national service cooperative created to provide government procurement resources and solutions to members in government, education, and nonprofit sectors. Since the City of Riverside is a member of Sourcewell, Atlas Copco Power Technique North America LLC is able to provide the best overall government pricing in accordance with Cooperative Agreement Number 041719-ACC that currently expires on July 17, 2023. Valley Power Systems, Inc. is an authorized dealer for Atlas Copco, as allowable within the terms of the cooperative agreement, and has offered pricing consistent with the discount in the agreement.
A generator of this magnitude has been particularly difficult to locate. After contacting various vendors, Valley Power Systems, Inc. was the only location that currently has this generator in stock and was also willing to honor the cooperative agreement pricing. The City is receiving a discount in the amount of $150,664 on the portable generator purchased from the Sourcewell contract, which reduced the total cost from $480,206.29 to a revised cost of $316,359.19.
The utilization of the Sourcewell contract is in accordance with Purchasing Resolution No. 23914, Section 602(f) which states that, “Competitive Procurement through the Informal Procurement or Formal Procurement process shall not be required in any of the following circumstances: …(f) When Cooperative Purchasing is available and undertaken or when goods can be obtained through Federal, State and/or other public entity pricing contracts or price agreements”. Due to the volume of sales accessible to vendors through the use of Cooperative contracts, they usually provide either lower set pricing or deeper discounts than would generally be available via competitive procurement by a single agency. For this particular contract there were 11 proposals received and evaluated. Atlas Copco’s discount percentage was greater than most and consistent with the best pricing submitted. The distributor, Valley Power Systems, Inc. is an approved distributor of Atlas Copco products as stated within the contract itself which means the distributor is offering some of the lowest pricing for this type of generator available for government agencies.
The Purchasing Manager concurs that the recommendation to approve the purchase is in compliance with Purchasing Resolution No. 23914.
STRATEGIC PLAN ALIGNMENT:
This item contributes to the City’s Strategic Priority No. 6 Infrastructure, Mobility, and Connectivity and Goal No. 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with EACH of the five Cross-Cutting Threads as follows:
Community Trust – This item builds community trust by ensuring that the City facilities will remain in operation during unforeseen power outages.
Equity – The purchase of this portable generator will benefit the entire community by enhancing the reliability of City operations in the case of an unexpected power outage.
Fiscal Responsibility – The General Services Department is proposing this purchase in accordance with Purchasing Resolution 23914, Section 602(f). Sourcewell offers a cooperative purchasing program with more than 400 competitively solicited contracts which ensures that the best price, terms and conditions are negotiated. The evaluations were reviewed for this contract and Atlas Copco’s overall total was among the top-rated proposers with their pricing being some of the lowest available.
Innovation – The purchase of a portable generator that will be utilized by various City facilities during emergency situations will allow the City to maintain daily operations with very minimal down time.
Sustainability & Resiliency – This purchase will enhance the City’s preparedness for the future.
FISCAL IMPACT:
The total fiscal impact of the action is $316,359.19. Upon Council approval, a supplemental appropriation will be recorded in the Central Garage Fund, General Services-Motor Pool, Automotive Equipment account 2215200-462100 from available fund balance. Central Garage Fund has enough available fund balance to cover the supplemental appropriation.
Prepared by: Carl Carey, General Services Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer Approved by: Kris Martinez, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Sourcewell Quote
Sourcewell Contract 041719-ACC
Purchase Portable Generator ● Page 2