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09.b1 Staff Report Backup Generator purchase / Staff Report Date of Meeting: February, 15th 2022 To: City Council From: Mike Hinz, Fire Chief Re: Backup Generator Purchase Background: The Scandia fire station / public works building was built in 2000, at that time there was not a backup generator installed. For the last few years, installation of a generator was in the CIP for the fire/PW building. In 2019 the state of Minnesota agreed to allow us to apply for a sub applicant grant with them to FEMA. On November 12th 2019 we submitted an application to FEMA as a supplication with the state. As everyone knows shortly after submitting the grant, COVID-19 was found in the United States and our application spent some time waiting while FEMA worked on COVID specific grant funding. On January 26th 2022 we received final approval from FEMA and are now cleared to proceed with the project. The grant had an estimated total cost of $85,202.40 with a federal share of $63,901.80 and a city share of $21,300.60. Since the approval took so long, I did have to go out for updated quotes. I have received 2 updated quotes so far and anticipate the third before the meeting. Of the 2 quotes I have, the one from Allied generator is the lowest currently and was also the lowest initially. This generator will allow the fire department and public works to continue to operate in the event of a power outage. Issue: Should the city proceed with the backup generator project? Proposal Details: Install natural gas backup generator. Generator will be behind building by power transformer. Vendor will install cement pad & bollards for generator. They will also provide natural gas and electrical connections. They will obtain all necessary permits. This will be complete turnkey installation with training. Fiscal Impact: The fiscal impact to install the backup generator will be $72,625.00 plus the Gen tracker system with 1 year service at $1,150.00 for a total cost of $73,775.00 with the city portion being $21,300.60 or less. There will be an annual recurring cost of $350 for monitoring service. Options: Direct staff to proceed with the quote from Allied generator with monitoring system in the amount of $73,775.00 Approve Allied quote without monitoring system. Pick different vendor Not install a backup generator Recommendation: Option (1).