COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Shad S. Springer, Director of Utilities
DATE: March 3, 2026
SUBJECT: Adoption of a Resolution Authorizing the Purchase of Two Emergency Power Generators
Description:
The City Council will consider adopting a Resolution authorizing the purchase of two emergency power generators from United Rentals through the Sourcewell cooperative purchasing contract.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution authorizing the purchase of two emergency power generators from United Rentals through the Sourcewell cooperative purchase contract; and
2. Authorize the City Manager , or designee , to execute all necessary documents to complete the purchase.
BACKGROUND:
The City of Santa Maria owns and operates multiple groundwater wells that supply potable water to the community. During electrical outages, these wells must continue operating to meet water demand. Diesel-powered emergency generators provide backup power to pumps, controls, and monitoring equipmen t to support uninterrupted water production at each well site.
DISCUSSION:
Two emergency generators serving City well sites have exceeded their useful life and require replacement. One unit is currently inoperable due to an apparent lightning strike in late 2025, requiring the city to rent a standby generator at a cost of approximately $8,000 per month. Continued rental is not a cost -effective long-term solution. The other unit has serious mechanical issues with the motor reducing its reliability and long -term viability.
Staff identified appropriate replacement generators and obtained a sales quote from United Rentals (Attachment B). The quoted pricing is consistent with market expectations 2 for equipment of this nature. The generators are available throu gh United Rentals’ competitively awarded cooperative contract with Sourcewell.
Sourcewell is a government service agency that administers nationally solicited and awarded contracts available to public agencies. The City’s purchasing policy allows use of cooperative procurement when it serves the public interest and convenience. The City of San ta Maria is a Sourcewell member and has previously utilized its contracts for vehicles and major equipment purchases.
Staff obtained and reviewed Sourcewell’s request for proposals (RFP), award documentation, and executed contract with United Rentals (Attachment C), which are on file with the Utilities Department. Utilizing this cooperative contract ensures a competitively bid and transparent procurement process, significantly reduces procurement time (the lead time for the generators is currently estimated at 3-4 months), and avoids additional administrative costs associated with conducting a separate formal design and bid process.
Once this purchase is approved and the order placed for the generators, staff will complete minor site improvements at Well S ites 10 and 11 to accommodate the new trailer-mounted generators and install necessary electrical connections. This work will be completed through a combination of in-house labor and contracts, if necessary.
Approval of this purchase will ensure continuous power supply for water production during power outages.
Alternative(s)
The City Council may decline this request and direct staff to complete a formal design and bid process. This is not recommended as it will delay procurement by several months and require the city to continue renting the generator equipment at additional expense.
Fiscal Considerations
The estimated cost of the generators, including tax and delivery, is $382,017. Funds are available within the approved “Well Maintenance” account (PRJ-00000301), which has a current balance of $932,637 in the Water Enterprise Fund.
Impact on the Community
Operational emergency generators at the City well sites ensure uninterrupted power for groundwater wells to supply the community during power outages. Timely replacement of aging equipment strengthens system reliability and supports public health and safety.
ATTACHMENT(S)
A. Resolution-Emergency Generators Purchase
B. Sales Quote-Emergency Generators Purchase
C. Contract-Emergency Generators Purchase