4B, Approve the Purchase of a Used Generator

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DATE: November 15, 2010 7 AR N HILLS MEMORANDUM TO: Honorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Terry Maurer, Public Works Director Joe Mooney, Public Works Superintendent SUBJECT: Purchase of Generator for Lift Station #8 GAP‘P' Background In the 2010 Capital Improvement Plan (CIP), the Public Works Department budgeted for a generator and housing (concrete pad and chain link fencing with slats) for lift station #8. Lift station #8 is located at the intersection of Hamline Avenue and Ingerson Road. Currently the city fleet contains two generators intended for lift station emergency power in a power outage. One is a 1978 model and the other is a 1999 model. Whenever there is a power outage that affects lift station #8 a generator is placed there and left until the electrical service is reinstated. This is due to the fact that lift station #8 has the shortest timeline of all our lift stations in the case of a power outage until there is backup into a neighboring residence. Therefore, this generator is proposed as an addition to the City fleet and is planned to be located at lift station #8. The generator will be mobile and available for other uses if not needed at lift station #8. Budget The CIP contains a budget of $50,000 for the purchase of the generator and the construction of an appropriate housing area at lift station #8. Staff solicited quotations for a new generator and received two responses. The first was from Ziegler Power Systems in the amount of $42,817.49. The second was from Magnum Products LLC in the amount of $37,975.00 The quote from Magnum however did not fully meet our specifications as the generator was only a 4 cylinder engine and could not deliver 240 volt/3 phase power without an after market adjustment. Since this is a piece of equipment that is truly used only in an emergency staff also looked for a used generator. Zeigler Power Systems has a 2005 120kW generator with approximately 4500 hours that could be purchased for $29,000. In a typical year we would put about 50 hours on the generator mostly from monthly exercising of the equipment. This type of generator should easily operate for 10,000 hours without needing major engine work. Therefore, this used generator should provide years of service for the City.