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  3.       
City Council Regular Meeting
Meeting Date: 05/10/2022  

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. Council approved the purchase of the two generators from Holt Power Systems (Caterpillar) in January 2022 with Resolution 22-R-12. 

The purchase of the two generators for the Nacogdoches and Morning Drive water facilities was only phase one of the larger generator project that staff has been working on. Phase two of the project consists 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. The electrical work will also make improvements to the electrical systems at each site to make them more resilient in emergency situations. Staff worked with M&S Engineering to design the generator installation and electrical upgrades required at each site.

Staff is proposing to award the generator installation and electrical upgrades to Gerard Electric, who is currently under contract with the City through an on-call agreement procured through a request for proposal, open bid solicitation process and the fee schedule was approved by Council July 27, 2021, Resolution 21-R-75. Gerard Electric has extensive experience working at the Schertz water sites, specifically the Nacogdoches site, which proved to be valuable during the design development and will also make the electrical upgrades go smoother during installation. Gerard Electric is proposing to complete the work for $133,000 for the Morning Site and $229,000 for the Nacogdoches Site for a total of $362,000. Staff is recommending awarding the contract with a 10% contingency for a total not to exceed amount of $398,200.
GOAL
The goal of this resolution is to gain approval from Council to proceed with the contract award for Gerard Electric for the installation of generators and related electrical upgrades 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. A reliable backup permanent power system 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-47 to award a contract to Gerard Electric in an amount not to exceed $398,200 for the installation of generators and related electrical upgrades 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. The total cost to date for the project is as follows:
Design: $30,000
Generator Purchase: $180,365 (22-R-12)
Generator Install and Related Electrical Work: $398,200 (Not-to-Exceed)
Total: $608,565
Funds from the Water Operation Fund will be used to cover any expenses over the $500,000 in ARP Funds.
RECOMMENDATION
Staff recommends that the City Council approve Resolution 22-R-47 to award a contract to Gerard Electric in an amount not to exceed $398,200 for the installation of generators and related electrical upgrades for the Nacogdoches and Morning Drive water facilities.
Attachments
22-R-47
Gerard Electric On-Call Contract
Proposal #1 - Naco Site
Proposal #2 - Morning Site

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