HomeMy WebLinkAbout6. Village Manager's Report 12/04/2012Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: WATER & SEWER SUPERINTENDENT
DATE: NOVEMBER 29, 2012
SUBJECT: PURCHASE OF STANDBY EMERGENCY GENERATOR STATION 17 (CIP) -
($300,760)
Background
In the capital improvements program (CIP), funds have been requested to purchase and install
diesel - powered emergency generators for the Village's deep wells and booster pumping
stations. The deep wells are the Village's emergency water source in the event that flow from
the Northwest Suburban Municipal Joint Action Water Agency (NSMJAWA) is disrupted. The
adjacent booster pumping stations are used to pump water out of storage tanks and help
maintain distribution system pressure. The generators installed as part of this program are
designed to power the entire booster station facility; including simultaneously operating the deep
well and the booster pumps.
Presently, diesel generators are installed at Booster Station 5 and Booster Station 16. Both of
these generators are Caterpillar 750 KW. The current budget contains funds to purchase and
install an emergency generator at Booster Station 17. Staff proposes to purchase and install a
generator at Booster Station 11 in 2014 (CIP). Staff does not intend to install a generator at
Booster Station 4 due to space constraints and limited incremental water production /storage
capacity; it's a small station, on a small site, with small pumps.
The emergency stand -by generator project will be completed after installation of the generator
nt Rnnster Rtatinn 11 in 2014. Four (4) of the Village's five (5) deep well /booster pumping
stations will be fully functional under emergency electrical power. The Village will have the
ability to produce and distribute approximately 6 million gallons of water per day from wells and
booster pumps powered by emergency generators. This capability will satisfy average daily
demand (3.5 million gallons) and provide sufficient reserve for peak fire flows.
The Public Works Department obtained the services of the Burns & McDonnell consulting
engineers of Downers Grove, Illinois to develop a detailed set of specifications and bid
documents necessary to procure an appropriately sized generator for Booster Station 17. Burns
& McDonnell determined that a 750kw generator was of sufficient size and capability for this
purpose.
With each generator, there will be a super - critical muffler, a sound - attenuated enclosure to
house the generator, and an above - ground, fire - rated, and 4,000 - gallon concrete diesel fuel
Bid Results for Standby Emergency Generator— Station 17(CIP)
November 29, 2012
Page 2 of 4
storage tank. The physical size of these units (241 x 10'W x 8'H) makes it impractical for the
unit to be configured as a tow - behind portable and so the specifications call for a permanent
installation.
Bid Results
On Monday, August 27, 2012 at 1:00 P.M., sealed bids for the proposed purchase of an
emergency generator were opened and read aloud. Nine (9) invitational bids were distributed
and public notice was placed in a local newspaper as required by Village purchasing policy. Five
(5) additional bids were picked up by others. Only one bid was received. The bid result is as
follows:
Bidder Price
Patten Power Systems, Elmhurst, IL $348,000
Discussion
The sole bid received was submitted by Patten Power Systems of Elmhurst, Illinois. Patten is
an authorized Caterpillar equipment distributor. Staff reviewed the Patten bid and found that the
bidder satisfies specifications and is proposing similar equipment to what exists at Booster
Stations 5 and 16. Since Patten provided both of our current booster station generators, staff is
confident that they can deliver a satisfactory product.
Since only one (1) bid was received, staff contacted the other firms who obtained bid packages
to determine why there were not more bids. A total of 13 additional bid packages were
distributed as part of the bidding process:
• One (1) firm indicated they did not bid because they were bidding on larger projects and
devoted their efforts to those projects.
• One (1) firm indicated that they did not bid because they could not satisfy the
specifications; their product line does not include a large enough generator.
• One M firm indicated that they did not birl because they could not satisfy the
specifications; they could not satisfy fuel storage tank and sound attenuation
requirements.
• Two (2) firms were contractors who only install generators thus did not bid.
• Two (2) firms represented bid houses that collect bids for client referrals and they do not
bid.
• Five (5) firms explained that they include Caterpillar generators in their product lines and
elected not to bid to avoid infringing on the local Caterpillar dealer (Patten).
• One (1) firm did not submit a bid and failed to respond to our follow -up inquiries.
Despite the fact that the bid was submitted as part of a public and competitive bidding process,
staff remained concerned that the cost of this generator was prohibitive. Specifically, the
engineer's estimate for the generator was $325,000. This sole competitive bid substantially
Bid Results for Standby Emergency Generator— Station 17(CIP)
November 29, 2012
Page 3 of 4
exceeds this estimate, placing the balance of the generator project (modifying electrical
connections and installing the generator), at risk of being over budget.
As an alternative, staff investigated opportunities to purchase the generator via a joint
purchasing agreement that satisfies the Village's public bidding requirements.
The Village Code specifically provides that competitive bidding is not required when the village,
pursuant to its home rule powers, enters into a joint purchasing contract for materials, supplies,
or equipment with another entity which has conducted competitive bidding for those materials,
supplies or equipment.
Staff has previously used joint purchasing for a variety of acquisitions ranging from road salt to
public works vehicles. Typically, staff utilizes the joint purchasing services of either the
Northwest Suburban Municipal Conference or the State of Illinois' Central Management
Services (CMS). Unfortunately, the Northwest Suburban Municipal Conference does not offer
the joint purchase of large diesel generators and CMS discontinued the joint purchasing of
generators in 2009.
However, the Village previously joined a joint purchasing group called the National Joint Powers
Alliance (NJPA), whose membership includes municipalities, counties, school districts, and non-
profit organizations. Originally a creature of Minnesota state government, the NPJA is now a
nation -wide joint purchasing facilitator that boasts over 48,000 member agencies and wields
considerable purchasing power.
The Village used the joint purchasing services of NJPA to acquire a snow removal tractor
( "Trackless ") vehicle that is utilized to remove snow from downtown sidewalks. The NJPA
currently has a cooperative joint purchasing arrangement for electric generators. NJPA
competitively bid the procurement of complete generator systems and awarded a joint
purchasing contract to Caterpillar, Incorporated of Peoria, Illinois. The Village attorney has
reviewed the arrangement and advises that the Village can participate in joint purchasing
through NJPA.
Staff contacted NJPA to obtain a quote for the generator package. NJPA can provide a
Caterpillar 750 KW diesel generator pursuant to our bid specifications at a cost not to exceed
$300,760.
Interestingly, NJPA has advised us to facilitate procurement of the generator through the local
Caterpillar distributor — Patten Power Systems of Elmhurst, Illinois.
Subsequently, staff contacted Patten Power Systems to obtain an explanation for the significant
variance between their competitive bid price ($348,000) and the NJPA joint - purchase price
($300,760). Patten explained that the NJPA discounts are applied at the corporate level and do
not impact distributor commissions or fees. Consequently, they are able to facilitate the NJPA
price because it costs less to obtain the generator from Caterpillar.
Bid Results for Standby Emergency Generator — Station 17(CIP)
November 29, 2012
Page 4 of 4
It is the opinion of staff that the best interests of the Village would be served by purchasing the
generator through the NJPA joint purchasing agreement. The NJPA agreement satisfies the
Village's bidding requirements and presents an opportunity to realize a $47,240 (14 %) savings
over the competitively bid price.
Additionally, the current NJPA price presents good value when compared to our last generator
purchase in 2007. The unit cost for an equivalent Caterpillar generator in 2007 was $263,566.
The increase ($37,194) between the current price ($300,760) and the 2007 price ($263,566)
can be wholly explained by considering nominal inflation (2 %) compounded over the course of
five (5) years, the addition of USEPA Tier II emission requirements (a federal mandate), the
addition of a Veeder -Root fuel management system (a Village requirement), and the addition of
load bank connections to facilitate resistive load bank testing (also a Village requirement).
Finally, since both of the existing 75OKW generators installed at the booster pumping stations
are of the same make, model, and manufacturer as the proposed NJPA generator (Caterpillar),
parts, supplies, and maintenance costs can be minimized. Most importantly, all of the
generators will have the same human - machine interfaces that should make them easier to
program and operate.
The next phase of this project would be to prepare the bid specifications to secure an electrical
contracting firm to install the generator. A bid award for this work will be forthcoming for the
Village Board's consideration after the delivery window for the generator is established.
Recommendation
recommend that the Village Board reject all bids to supply the 750KW standby emergency
generator at Booster Station 17.
1 also recommend that the Village Board authorize staff purchase one (1) standby emergency
generator through the National Joint Power Alliance joint purchasing agreement in an amount
not to exceed $300,760.
Sufficient funds for this proposed expenditure exist in the current budget
Matt Overeem
Water & Sewer Superintendent
1
Se . Dorsey
Director of Public Works
MO /SPD
C:\ Users \sdorsey \Documents \Water \Generator 17 \emergency generator station 17 board award rev2.docx
Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
�M?/
TO: VILLAGE MANAGER, MICHAEL E. JANONIS
FROM: WATER/ SEWER SUPERINTENDENT
DATE: NOVEMBER 28, 2012
SUBJECT: DEEP WELL 5 EVALUATION AND REPAIR CHANGE ORDER ($40,282)
BACKGROUND
In July 2012, the Village Board authorized Municipal Well & Pump of Waupun, Wisconsin to
inspect, evaluate, and repair Deep Well #5. The contract award was in the amount of $163,165
and included a 20% contingency for repair work.
The work at deep well #5 entailed the removal of a 500 hp three -phase electric motor and the
pulling of the line shaft piping and pump bowl assembly from approximately 1,100 feet below
grade where the pump bowl assembly sits in the aquifer. All airlines, shaft couplings, shaft
piping and other appurtenances were checked. The entire depth of the deep well was televised
to determine if there are any defects that need to be addressed (defects in wells are typically
loose or broken pipe joints, cracks or holes in piping that may allow contaminants into the well
or aquifer).
Staff retained the professional engineering services of Manhard Consulting Ltd of Vernon Hills,
Illinois (Manhard) to provide oversight for this project.
DISCUSSION
Manhard has concluded that the well is in overall good shape. However, they also recommend
a number of repairs in order to assure the long term viability of the well as an emergency source
of potable water. The recommended repairs include:
• Replace 51 pieces of the 20 foot long, schedule 40 column pipe, along with all
associated bearings, couplings and fittings at a cost of $35,095.
• Repair (machine) 7 of the 18 pump bowl assembly impellers at a cost of $30,852.
• Brush scouring of the well's sidewalls to clean debris and other accumulations at a cost
of $24,080.
• After the well is cleaned, the well should be re- televised at a cost of $2,450.
The total cost for the above referenced repairs is $92,477.
The existing contract award is $163,165. Included in this award is an allowance that is sufficient
to cover a little more than half the repair cost. However, an additional $40,282 is needed to
complete all of the recommended repair work. The total cost to rehabilitate the well will increase
to $203,447 ($163,165 original award + $40,282 for additional repairs = $203,447).
Page 2 of 2
DEEP WELL 5 EVALUATION AND REPAIR CHANGE ORDER ($40,282)
November 28, 2012
Staff concurs with Manhard's repair recommendations. The column pipe replacement is
necessary in order to maintain water quality and prevent contamination of the well. The impeller
repairs are necessary in order to assure the production capacity of the well. The brush scouring
is necessary to remove scale build -up observed during closed circuit television inspection that, if
left unchecked, could affect raw water quality. Once completed, these repairs should enable the
well to serve as a reliable emergency water source until its next planned evaluation in 2027.
The engineer's estimate of cost for this project was $225,000. The 2012 budget allocation for
this project was $243,600. The revised total project cost ($203,447) is below both the
engineer's estimate of cost and the 2012 budget allocation.
RECOMMENDATION
I recommend that the Village Board authorize a change order to the contract of Municipal Well
and Pump of Waupun, Wisconsin in the amount of $40,282 for specified repairs to Deep Well
#5. This change order will be final. No additional expenditures are anticipated.
Matt Overeem
Superintendent
MEO /SPD
C:\ Users \sdorsey \Documents \Water \Well 5 \Rehab 2012 \VB CHANGE ORDER 1 RECOMMENDATION.docx
Sean P. Dorsey,
Director of Public Works