Subject
This resolution will award a contract to Gordon's Electric of Pendleton to install a backup power generator at Well #6 for $336,000.
Summary and Background
Well #6 is located in the south end of the City near the Wal-Mart Distribution Center, which, relative to the rest of the City, is at a much higher elevation. As such, that well is physically situated in such a way that, in the event of a city-wide power outage which knocks out pumping capacity to all of the City's wells, Well #6 has the ability to provide water at adequate pressure to supply the entire City. Therefore, installation of a backup generator at Well #6 was called out as a critical upgrade necessary in the 2019 Water System Master Plan.
Tie-In to Council Goals:
Goal 2: Exercise fiscal prudence and adhere to budgeted expenditures to improve financial sustainability.
Goal 6: Plan for City facilities that meet current and future needs.
Fiscal Information
This project has been included in the City's Capital Improvement Plan since the original plan adopted in 2019 with an estimated cost of $280,000, and was included in the FY '21-'22 adopted budget at $320,000.
As full-scale design began on the project, it was determined that this site works well for installing a natural gas powered generator, rather than relying on a base-level diesel generator. There are several significant benefits associated with a natural gas generator over a diesel generator, mainly in the ongoing operation and oversight of managing, ordering, and permit reporting for bulk diesel storage. These generators must be regularly "exercised" each week to ensure proper functioning when needed, which requires regular monitoring of, and deliver of, diesel fuel. In the case of natural gas, the unit is plumbed directly in to the delivery system, and the automated controls can be set to exercise the unit with very minimal oversight.
With the change to a natural gas generator, the engineer's estimate was $380,000. Bids were opened as follows:
- $336,000: Gordon's Electric & Heating, Inc.
- $380,000: Engineer's Estimate
- $384,742: The Automation Group
This project is a bit different from some that the City does, in that approximately 75% of the cost of the project is tied to the lump-sum item of acquisition of the Generator itself. In reviewing the line-items of each bid, compared to the engineer's estimate, the bid from Gordon's Electric appears appropriate to acquire the generator and complete the work.
There is adequate funding in the Utility Fund to cover the difference between the budgeted and actual expense.
Alternatives and Recommendation
Alternatives
1. Award the contract to Gordon's.
2. Reject all bids and re-bid.
Recommendation
Award the contract to Gordon's Electric.
Requested Action/Motion
Motion to Approve Resolution 2206.
Submitted By: Mark Morgan