Agenda No. 8.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | January 11, 2022 |
| Department: | Public Works |
| Subject: | Resolution No. 22-R-12 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the purchase of two generators from Holt Power Systems to be installed at the Nacogdoches and Morning Drive Water Facilities. (C. Kelm/S. Williams/S. McClelland) |
BACKGROUND
After the snow storm of February 2021 when the electrical grid struggled to keep up with demand, it became apparent that a key component of any water utility is backup power generation. City Council identified a resilient water system as a key focus point when discussing how to allocate the funding received as part of the American Rescue Plan (ARP). Category 5 allowed for the ARP funding to be spent on Water, Sewer, and Broadband Infrastructure.
Also, because of the February 2021 snow storm, Senate Bill 3 was passed which mandated that water utilities must be prepared and able to maintain a minimum 20 pounds per square inch (psi) of pressure to all direct customers during a power outage lasting more than 24 hours caused by a natural disaster.
Based on the funding directive and the regulatory changes, City Staff moved forward with planning and procuring two new generators for two main water sites that do not currently have backup power generation onsite, the Nacogdoches Well Site and Morning Drive Booster Pump Station. Staff worked with M&S Engineering to identify the sizing and specifications of the generators required for each site. M&S Engineering also assisted with gathering proposals from three generator manufacturers to obtain the best value for the City through government purchasing cooperatives.
City Staff is recommending purchasing the generators from Holt Power Systems (Caterpillar) due to their competitive pricing and reputation in providing reliable equipment.
This resolution awarding the purchase of the two generators for the Nacogdoches and Morning Drive water facilities is only phase one of the larger generator project that staff is working on. Phase two will consist of reworking and updating the existing onsite electrical system at both Nacogdoches and Morning Drive water facilities to accept the generators. This electrical upgrade phase is also planned to use ARP funding as it is necessary to incorporate the generators in to the onsite systems. This phase is currently in the design development phase. Phase three will be to evaluate the backup power needs of the sewer lift stations and will likely involve the purchase of smaller mobile generators that can be moved and "plugged-in" to multiple different lift station sites.
Also, because of the February 2021 snow storm, Senate Bill 3 was passed which mandated that water utilities must be prepared and able to maintain a minimum 20 pounds per square inch (psi) of pressure to all direct customers during a power outage lasting more than 24 hours caused by a natural disaster.
Based on the funding directive and the regulatory changes, City Staff moved forward with planning and procuring two new generators for two main water sites that do not currently have backup power generation onsite, the Nacogdoches Well Site and Morning Drive Booster Pump Station. Staff worked with M&S Engineering to identify the sizing and specifications of the generators required for each site. M&S Engineering also assisted with gathering proposals from three generator manufacturers to obtain the best value for the City through government purchasing cooperatives.
City Staff is recommending purchasing the generators from Holt Power Systems (Caterpillar) due to their competitive pricing and reputation in providing reliable equipment.
This resolution awarding the purchase of the two generators for the Nacogdoches and Morning Drive water facilities is only phase one of the larger generator project that staff is working on. Phase two will consist of reworking and updating the existing onsite electrical system at both Nacogdoches and Morning Drive water facilities to accept the generators. This electrical upgrade phase is also planned to use ARP funding as it is necessary to incorporate the generators in to the onsite systems. This phase is currently in the design development phase. Phase three will be to evaluate the backup power needs of the sewer lift stations and will likely involve the purchase of smaller mobile generators that can be moved and "plugged-in" to multiple different lift station sites.
GOAL
The goal of this resolution is to gain approval from Council to proceed with the purchase of two generators for the Nacogdoches and Morning Drive water facilities.
COMMUNITY BENEFIT
Providing onsite backup power at the City's water sites provides our water utility independence from the electrical grid in times of emergencies where reliable power is not available. Owning generators provides for a more efficient response when power failures occur and rental generators become unavailable. The City's water system requires electricity to power pumps and controls to distribute water to our customers safely and reliably.
SUMMARY OF RECOMMENDED ACTION
Staff recommends that the City Council approve Resolution 22-R-12 to allow for the purchase of two generators for the Nacogdoches and Morning Drive water facilities.
FISCAL IMPACT
Funding for the generators was approved by City Council with American Rescue Plan (ARP) tranche one funding allocated to "Category 5: Investment in Water, Sewer, and Broadband Infrastructure". Council allocated $500,000 to generators from the ARP tranche one funds.
RECOMMENDATION
Staff recommends that the City Council approve Resolution 22-R-12 to allow for the purchase of two generators for the Nacogdoches and Morning Drive water facilities.