REPORT TO THE CITY COUNCIL
February 26, 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
Actions pertaining to the award of the sole source repair and rewind of one 2500kw ideal electric brushless AC generator for $260,712.69:
1. RESOLUTION - Authorizing the Purchasing Manager of the Finance Department or designee to award the repair and rewind of one 2500KW Ideal Electric Brushless AC Generator without advertised competitive bidding utilizing the sole source exception in the Fresno City Charter
2. Authorize the Purchasing Manager of the Finance Department or designee to issue a contract for said service to Stanley Electric Motor Company, Inc., without advertised competitive bidding
Body
RECOMMENDATION
Staff recommends that City Council Award a $260,712.69 repair contract to Stanley Electric Motor Company of Stockton, California.
EXECUTIVE SUMMARY
The Department of Public Utilities ("DPU"), Wastewater Management Division is seeking to award a repair contract in the amount of $260,712.69 for repair and rewind of one 2500KW Ideal Electric brushless AC generator.
BACKGROUND
The City of Fresno ("City") requires the use of a steam turbine generator to maximize the efficiency of power generation at the Wastewater Management Division's 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 further optimization is realized by capturing the excess steam and powering a steam turbine generator. This steam turbine generator has suffered a failure and requires rebuild and rewinding. The rewinding of a stator for a 2500KW generator requires special clean room protocols that only a handful of facilities nationally can facilitate. After investigation by DPU, it has been determined that Stanley Electric Motor Company, Inc. and their affiliate IPS are the only shop in the Western United States that has the high voltage clean room qualifications with the ISO certifications required to properly rebuild and rewind a 2500KW brushless AC generator. Additionally we will realize the benefit of a five year warranty on the stator rewind which is far superior to the standard one year warranty for a new stator. This California company has been determined to be the single closest most responsive and cost effective vendor to perform the repair and rewind required.
Staff recommends that the City Council award the sole source repair and rewind of one 2500KW Ideal Electric brushless AC generator for the amount of $260,712.69.
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" and is therefore exempt from the CEQA requirements.
LOCAL PREFERENCE
Local preference did not affect the award of this project because no local facility has the high voltage clean room qualifications with the ISO certifications required to properly rebuild and rewind a 2500KW brushless AC generator.
FISCAL IMPACT
This project has no impact to the General Fund and is located in Council District 3. Funds in the amount of $260,712.69 are available and appropriated in the 2015 Wastewater Enterprise Fund No. 40501. The fiscal impact of this award would be $260,712.69.
Attachment:
Resolution