TITLE:
title
CHANGE ORDER FOR THE EMERGENCY GENERATOR UNITS FOR CITY HALL AND THE COMMUNICATIONS BUILDING
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DEPARTMENT: PUBLIC WORKS DEPARTMENT/GENERAL SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: PATRICK BAUER, DEPUTY PUBLIC WORKS DIRECTOR, (714) 754-5029
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Authorize the use of Sourcewell’s Cooperative Agreement #092222-CAT with Caterpillar Inc. for a change order of the original purchase of two (2) diesel emergency generators, two (2) automatic transfer switches, and two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems. The City Hall transfer switch is being removed from the quote and a manual transfer switch for the Communications Building is being added.
2. Authorize a change order to the original Purchase Order (PO) for an additional $5,818.50 pulled from the project budget for the purchase of one (1) manual transfer switch for the Communications Building. The PO, now for $395,361.69, originally $389,543.19, through Quinn Power Systems, 3500 Shepherd Street, City of Industry, CA 90601, shall encompass the purchase of two (2) diesel emergency generators, one (1) automatic transfer switch, one (1) manual transfer switch, two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems.
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BACKGROUND:
The City Council authorized the use of Sourcewelll’s Cooperative Agreement #092222-CAT on February 18, 2025, to authorize the purchase of two (2) diesel emergency generators, two (2) automatic transfer switches, and two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems in the amount of $389,543.19. Upon the submittal review process, it was noted that the automatic transfer switch at City Hall was only a few years old and didn’t need to be replaced. Additionally, a manual transfer switch was suggested as an additional item to be installed with the new generator to allow for a quick and safe hookup of a temporary portable generator to perform maintenance on the backup generator to prevent any failures or disruptions at the Communications Building.
ANALYSIS:
The original quote from Quinn Power Systems, Caterpillar, was received for two (2) new generators, two (2) fuel tanks, two (2) automatic transfer switches, and accompanying equipment in the amount of $389,543.19. The removal of the City Hall automatic transfer switch reduced the purchase price by $17,034, and the addition of the Communications Building manual transfer switch increased the purchase price by $22,434. The difference, including tax, resulted in an additional $5,818.50. The total PO amount will be $395,361.69. The project budget has enough funds to allow for the additional item to be added; however, City Council approval is required to adjust the PO amount.
Purchasing the additional equipment material through Sourcewell meets all requirements set forth in the City of Costa Mesa’s Purchasing Policy and all requirements set forth by the State of California in regard to regional cooperative purchasing agreements. This process confirms that the City still receives the lowest available pricing and meets the competitive bid process requirements. The City has utilized Sourcewell successfully for several previous related purchases.
The quote is included as Attachment 1 and totals a new amount of $395,361.69, which includes all parts, equipment, tax, and delivery.
ALTERNATIVES:
The alternative to this Council action would be to remove the manual transfer switch from the quote and purchase at a later date. Staff has determined that following this route will result in new shipping and processing fees as well as potentially higher prices. Additionally, if the manual transfer switch is installed at a later date, that will result in additional costs for installation.
FISCAL REVIEW:
Funding for the required change order for an additional amount of $5,818.50 is available in the Fiscal Year 2025-26 Capital Improvement Fund (Fund 401).
LEGAL REVIEW:
The City Attorney’s Office has reviewed this staff report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This project works toward achieving the following City Council goals:
• Maintain and enhance the City’s facilities.
• Strengthen the public’s safety and improve the quality of life.
CONCLUSION:
1. Authorize the use of Sourcewell’s Cooperative Agreement #092222-CAT with Caterpillar Inc. for a change order of the original purchase of two (2) diesel emergency generators, two (2) automatic transfer switches, and two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems. The City Hall transfer switch is being removed from the quote and a manual transfer switch for the Communications Building is being added.
2. Authorize a change order to the original PO for an additional $5,818.50 pulled from the project budget for the purchase of one (1) manual transfer switch for the communications building. The PO, now for $395,361.69, originally $389,543.19, through Quinn Power Systems, 3500 Shepherd Street, City of Industry, CA 90601, shall encompass the purchase of two (2) diesel emergency generators, one (1) automatic transfer switch, one (1) manual transfer switch, two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems.