REPORT TO THE CITY COUNCIL June 18, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: TIMOTHY J. TOMPSETT- Provisional Chief of Wastewater Facilities Maintenance Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Award the purchase of one Ideal Electric Type "SAB" 4221.25 KVA Horizontal Brushless Synchronous Generator (Bid File 3403) for $277,921.80 and authorize the Purchasing Manager of the Finance Department or designee to issue a purchase order to Leete Generators (Council District 3). ..Body RECOMMENDATION Staff recommends that the Council award a contract to Leete Generators for one Ideal Electric Type "SAB" 4221.25 KVA Horizontal Brushless Synchronous Generator. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division, advertised for one Ideal Electric Type "SAB" 4221.25 KVA Horizontal Brushless Synchronous Generator. Due to the specialized nature of 12,000 volt generators there are a limited number of vendors available to supply this item. There was only one bid proposal received. The bid was from Leete Generators for $277,921.80. This bid is responsible and is responsive to the intent of the specifications. Staff recommends the City Council to accept this bid. BACKGROUND The City of Fresno ("City") utilizes two combustion turbine generators to maximize the power generation potential at the Wastewater Management Divisions power generation facility. Due to the large power and heat requirements of the City's Regional Wastewater Reclamation Facility (RWRF) power expenses are offset by utilizing a turbine driven cogeneration facility generating power from methane gas supplied by anaerobic digesters. Power and steam are generated by the turbines and used for plant power and heat requirements. One of the primary combustion turbine generators has suffered a failure and requires replacement. This unit was sent to Stanley Electric Motor Company, Inc. for evaluation, condition assessment and budgetary estimate of repair. This unit's repairs were estimated to exceed the estimated cost of a new unit. Staff determined it was in the best interest of the City to pursue replacement options. Technical specifications were developed to secure a replacement generator. A Notice Inviting bids was published April 27, 2015. Ten (10) Building Exchanges where faxed Notice Inviting Bids, and sixteen (16) specifications were distributed to prospective bidders. One (1) sealed bid was received and publicly opened on May 12, 2015. Staff has determined that Leete Generator of Santa Rosa, California is the lowest responsive and responsible bidder with a submitted bid of $277,921.80. The staff determination was posted on the City's website on May 22, 2015. Staff recommends that the City Council award a contract in the amount to $277,921.80 to Leete Generators of Santa Rosa, California as the lowest responsive and responsible bidder. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 this agreement does not meet the definition of a "project" as provided by CEQA. LOCAL PREFERENCE Local preference was not implemented as there was only one bid received. FISCAL IMPACT This project has no impact to the General Fund and is located in Council Districts 3. Funds in the amount of $277,921.80 are available and appropriated in the 2015 Wastewater Enterprise Fund No. 40501. The fiscal impact of this award would be $277,921.80. Attachment: Evaluation of Bid Proposals