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HomeMy WebLinkAboutApprove Sole Source Procurement from Valley Power Systems foCourvcil/Agency Meeting Held: ` ®V_ Deferred/Continued to: ErApproved ❑ Conditionally Approved ❑ Denied 3 /City Clerk's Signature Council Meeting Date: 11/7/2005 Department ID Number: PW 05-074 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS SUBMITTED BY: PENELOP CULBRETH-GRAFT, LISTNISTRATO PREPARED BY: ROBERT F. BEARDSLEY, PE, DI ECTO OF PUBLIC WO SUBJECT: Approve Sole Source Procurement for Large Natural Gas Engines Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Administrative Regulation 229 requires City Council approval for all sole source procurements over $50,000. The Public Works Utilities Division is requesting approval of sole source procurement for purchase of Waukesha natural gas engines. Funding Source: Funds are budgeted in General Fund Account 10040214.83700, sub ledger 10085502, ($300,000) and General Fund Account 10040314.83700 ($1,115,000) for replacement of natural gas engines. Recommended Action: Motion to: Approve Sole Source Procurement from Valley Power Systems of Mira Loma, California, for the purchase of Waukesha natural gas engines. Alternative Action(s): Do not approve the sole source procurement and instruct staff on how to proceed. This action may reduce the flexibility of staff in dealing with engine malfunctions, and result in a more costly maintenance program. Analysis: The City has 78 Waukesha brand engines at groundwater wells, booster stations and flood control stations. It is a durable and dependable product that the City has used exclusively for over 40 years. By standardizing to one brand of engine, the Utilities Division can interchange parts and, if necessary, entire engines in emergency situations. This allows for continuity in operation, service and parts. In addition, all Utilities Systems Technicians are trained in the operation and service of Waukesha engines and only need to train on one brand of engine. G 0 W 0Z ,-�` LJ c� � z REQUEST FOR ACTION MEETING DATE: 11/7/2005 DEPARTMENT ID NUMBER:PW 05-074 Valley Power Systems is the regional supplier of Waukesha engines and has exclusive rights in California to the Waukesha product line. Because of the volume of business the City does with Waukesha, the City Purchasing Division has negotiated a 10% discount on the base price of engines for the City of Huntington Beach. Environmental Status: Not applicable. Attachment(s): G:\R C A\2005\05-74 sole source Valley Systems 2005-06 (Dills).doc -2- 10/17/2005 9:46 AM ATTACHMENT #1 Administrative Services Central Services Division OR OP/OC SOLE -SOURCE JUSTIFICATION For use on all goods and services acquisitions. This justification document consists of two (2) pages. All information must be provided and all questions must be answered. The "Required Approvals" section must include a date for each signature, as appropriate for the transaction. Requesting Department Information Requestor Name: Division Manager: Jay Kleinheinz Howard Johnson (Type names. Do not sign.) Department: Department Head: Public Works — Utilities Division Robert F. Beardsley, P.E. (Type names. Do not sign. Must be same as signature below.) Department Contact Information Contact Name: Street Address: Jay Kleinheinz 19001 Huntington Street Telephone: 714 374-1512 FAX: Shipping Address: same Cellular phone: 714-334-9773 e!t ed s�nt ct information Contractor/Supplier Name: Valley Power Systems, Inc. Contractor/Supplier Address: 11300 Inland Avenue, Mira Loma, CA 91752 Original Contract Amount:* Amendment Amount:* (if applicable) New Contract Amount: $ $ $ // V/S7 ec�a I'D (*Includes original contract and previously (*Indludes original contract and all amendments, approved amendments) (*Current amendment only) including current amendment Natural gas Waukesha brand engines for flood control stations. $300,000 budgeted under 10040214.83700 subledger 10085502 and $1,115,000 budgeted under 10040314.83700. Contract Type: Select One: J�r Goods ❑ Service ❑ Goods & Services ent Head ❑ Denied l�'19'71 Remit completed form to: Contract Term: Begin: End: What account number will be used to purchase Bus Unit_10040314 and 10040214 (SL 10085502) Obj. Code 83700 Cen al Services Mana er Administrative Services D i Dire or. 47❑ Approved ❑ Denied C ntral ervices Manager/Date Adm. a ces Dir. /Date Central Services Division 2000 Main St, Huntington Beach, CA 92648 Assistant City Administrator MA r v d ❑ Denied I c(/1Qs IF Assisf0ty Adm./Date (Transacolls exceeding $50,000 mus6e council ap)roved) 10/10/2005 Administrative Services Central Services Division Complete responses must be provided for all of the following items. A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW: 1. Why is the acquisition restricted to this goods/services/supplier? (Explain why the acquisition cannot be competitively bid. Per the attached letter, Valley Power Systems, Inc. is the distributor for Waukesha engines in California and the City utilized this brand at its groundwater well, reservoir booster and flood control station facilities. 2. Provide the background of events leading to this acquisition. The natural gas engines used for groundwater wells, booster stations and flood control stations are all Waukesha brand. This allows for continuity in operation, service and parts. In addition, all Utilities System Technicians are trained in the operations and service of Waukesha engines. 3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?) The City owns and operates 78 Waukesha brand engines at the aforementioned facilities. It is a durable, well - performing product that the City has utilized for over 40 years. 4. What are the consequences of not purchasing the goods/services or contracting with the proposed supplier? Please see the attached letter from Waukesha Engine. Valley Power Systems, Inc. has exclusive rights in California to the Waukesha product line. 5. What market research was conducted to substantiate no competition, including evaluation of other items considered? (Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not performed.) Please see the attached letter from Waukesha Engine. Valley Power Systems, Inc. has exclusive rights in California to the Waukesha product line. B. PRICE ANALYSIS 1. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.) Because of the volume of business that the City has done with Waukesha, we receive 10% discount off list price as a minimum. Please see the attached letter. 2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. By utilizing one standard brand of engine, the Utilities Division can interchange parts and swap out engines in emergency situations. In addition, staff only needs to train on one brand of engine. 10/17/2005 2 Waukesha September 21, 2005 To Whom It May Concern: Subject: Waukesha Engine Authorized Distributor Dear Sir/Madam, Please accept this letter confirming Valley Power Systems as the Waukesha Engine Distributor for entire state of California. As such they are authorized to sell new equipment, genuine Waukesha Engine repair and service parts, as well provide service, repair and warranty work for Waukesha Engine within that territory. Sincerely yours l ' David A. Hanson Director Channel Development Waukesha Engine, Dresser Inc. EC: Kevin Orchard Waukesha Engine, Dresser, Inc. 1000 West SL Paul Avenue • Waukesha, WI 531884999 - Phone: 262-547-3311 - Fax: 262-549-2795 • waukeshaengine.dresser.com A LEADER IN NATURAL GAS ENGINES AND POWER SYSTEMS 11300 Inland Ave. Mira Loma, Ca 91752 Main: (951) 681-9283, (800) 439-7595 Fax: (951) 681-6670 October 12, 2005 Huntington Beach Water Department 19061 Huntington St. Huntington Beach, CA 92648 (714) 374-1512 FAX (714) 847-1067 ATTENTION: Mr. Jay Kleinheinz REFERENCE: Waukesha Natural Gas Engine Pricing Dear Jay: The City of Huntington Beach has been a valued customer to Waukesha Engine for many years. Through the years of continued business with Waukesha Engine and the local distributor the City of Huntington Beach has earned preferred pricing on Waukesha Engine Pricing. Preferred pricing gives the customer 10% off list price as a minimum. Multiple engine orders will be given even a greater discount based on the number of the units and the model of engines ordered. Thank you for the past business and the opportunity to quote you on your future needs. Sincerely, James Myers Prime Power Sales www.valleydda.com Irvine Branch Bakersfield Branch Fresno Branch Mira Loma Branch San Diego Branch Valley Power Services, Inc. Northern Lights/Lugger 17192 Daimler St. 4000 Rosedale Hwy. 2935 S. Orange Ave. 11300 Inland Ave. 5725 Eastgate Dr. 13624 E. Nelson Ave. 4420 14'h Ave. NW Irvine, CA 92614 Bakersfield, CA 93308 Fresno, CA 93725 Mira Loma, CA 91752 San Diego, CA 92121 Industry, CA 91746 Seattle, WA 98107 Ph: (949) 221-8642 Ph: (661) 325-9001 Ph: (559) 486-6900 Ph: (909) 681-9283 Ph: (858) 587-8524 Ph: (626) 330-2210 Ph: (206) 789-3880 Fax: (949) 221-8185 Fax: (661) 323-2986 Fax: (559) 486-2675 Fax: (909) 681-6670 Fax: (858) 587-4664 Fax: (626) 330-0411 Fax: (206) 782-5455 Distributor for: Detroit Diesel • Deutz Corporation • Allison Transmission • Electro-Motive • Volvo Penta • Northern Lights/Lugger • GE Jenbacher RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Approve Sole Source Procurement from Valley Power Systems, Inc. for Purchase of Natural Gas Engines COUNCIL MEETING DATE: November 7, 2005 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Appiicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable ❑ Contract/Agreement (w/exhibits if applicable) Attached Not Applicable ❑ ❑ (Signed in full by the City Attorney) Subleases, Third Party Agreements, etc. Attached Not Applicable ❑ ❑ (Approved as to form by City Attomey) Certificates of Insurance (Approved b the City Attorne ( pp y y y) Attached Not Applicable ❑ ❑ Fiscal Impact Statement (Unbudget, over $5,000) Attached Not Applicable ❑ ❑ Bonds (If applicable) Attached Not Applicable ❑ ❑ Staff Report (If applicable) Attached Not Applicable ❑ ❑ Commission, Board or Committee Re ort If applicable P ( pp ) Attached Not Applicable ❑ ❑ Findings/Conditions for Approval and/or Denial g pp Attached Not Applicable ElFindin ❑ EXPLANATION FOR MISSING ATTACHMENTS. RCA Author: Dills:jg