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Agenda 09/15/2009 Item #16B19 Agenda Item No. 16B 19 September 15, 2009 Page 1 of 6 EXECUTIVE SUMMARY Recommendation to waive the formal competitive requirement of the County's Purchasing Policy, and authorize the purchase of a 750KW Generator in the amount of $75,000 from Metro Power Systems, Inc. for the CoHier Area Transit (CAT) Headquarters Building located at 8300 Radio Road OBJECTIVE: To purchase a generator for Collier Area Transit headquarters to enable the facility to remain operational in the event of a loss of electrical service. CONISDERATIONS: The Collier Area Transit System re-located its headquarters and maintenance facilities to the current location at 8300 Radio Road in February, 2008. The facility was formerly owned and occupied by a local car dealership. At the time the County took occupancy, the building did not (and still does not) have emergency electrical back up service. During the past year, the County leased a 750 KW Generator from Metro Power Systems, Inc. to supplement the existing generator in the Hannon Turner Building. Within the last few months, a new larger generator has been successfully installed in that building, hence eliminating the ongoing need for the leased unit. The lease agreement for that equipment expired at the end of July and shortly before the expiration of the lease, the generator vendor offered to sell the unit to the County at a discounted price. Upon receiving this offer, Facilities Management contacted staff from the Alternative Transportation Modes (A TM) Department to detennine if there would be an interest in purchasing this unit for the CAT facility. As part of the purchase, the vendor agreed to provide the labor to relocate the unit to th(l CAT building. The vendor offered to sell and re-Iocate the generator for a total cost of $75,000. Facilities Management and Purchasing Department staff reviewed the offer and compared it to prices for other used generators of similar design and age presently available on the open market. Staff has determined that the offered price is about half the cost of a new unit and is considerably less than the cost of used generators of similar size and age. Given that the offered price exceeds staffs purchase authority under the purchasing policy and given that there was not sufficient lead time to obtain prior approval of the purchase from the Board, the Purchasing Department issued a letter of intent to the vendor stating that the County intended to purchase the unit from the vendor at the offered price. In turn, the vendor relocated the generator to the CAT facility at the end of July. The vendor further agreed to remove the unit at no cost to the County if the Board elected not to authorize the purchase. In light of the considerations set forth herein, staff recommends waiving the fonnal competitive bidding requirements (as set forth under Section V.AA ofthe Purchasing Policy) and approve the purchase on the basis that it is in the best interests of the County to do so. Approval of this action will enable the CAT Facility to obtain a back up electrical service in a timely and cost-effective manner. .-. Agenda Item No. 16819 September 15, 2009 Page 2 of 6 FISCAL IMPACT: The funding for this generator is coming from an FT A 5309 grant under a separate BCC item. LEGAL CONSIDERATIONS: Section V (A) (4) of the Collier County Purchasing Policy provides in part, "[t]he requirement for formal competition may be waived by the Board of County Commissioners where pennitted by law, under the following circumstances: 4. Where it is determined to be in the best interests ofthe County to do so." If the Board chooses, it may waive the requirement for formal competition finding that it is in the best interests of the County to do so in light of the benefit realized by purchasing the used generator from this vendor. This item has been reviewed and approved by the County Attorney's Office and is a legally sufficient, rebrular agenda item only requiring a majority vote for approval-SR T GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. RECOMMENDATION: That the Board of County Commissioners waives the formal competitive bid requirements and authorizes the purchase of a 750 KW Generator from Metro Power Systems, Inc. in the amount of $75,000 for the Collier Area Transit (CAT) Headquarter Facility located at 8300 Radio Road. Prepared By: Y ousi Cardeso, Administrative Assistant, Alternative Transportation Modes Attachment: Letter of Intent ......- JL u5""" 1. VI. ~ Agenda Item No. 16819 September 15, 2009 Page 3 of 6 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16B19 Recommendations to waive the formal competitive requirement of the County's Purchasing POlicy and authorize the purchase of a 750 KW generator in the amount of $75,000 from Metro Power Systems, Inc, for the Collier Area Transit (CAT) Headquarters building located at 8300 Radio Road, Meeting Date: 9/15/200990000 AM Prepared By Yousi Cardeso Administrative Secretary Date Alternate Transportation Modes 8/24/2009 3:30:15 PM Approved By Norm E. Feder, AICP Transportation Division Administrator Date Transportation Services Transportation Services Admin. 8/24/2009 3:36 PM Approved By Glama Carter Operations Analyst Date Transportation Services Transportation Administration 8/24/2009 3:47 PM Approved By Michelle Edwards Arnold Alternative Transportation Modes Director Date Transportation Services Alternative Transportation Modes 8/26/200910:13 AM Approved By Barbara LaPierre Management/Budget Analyst Date Transportation Services Traffic Operations 8/26/20092:36 PM Approved By Therese Stanley Grants Coordinator Date Transportation Transportation Administration 8/26/20093:40 PM Approved By Scott R. Teach Assistant County Attorney Date County Attorney County Attorney Office 8/31/2009 1 :55 PM Approved By Jeff Klatzkow County Attorney Date County Attorney County Attorney Office 9/1/2009 3:11 PM Approved By Pat Lehnhard Executive Secretary Date Transportation Services Transportation Services Admin 9/1/20094:04 PM Cl__IIr'\.\ A ____.l_'T'__.L\T"_____.......L\1"A n ..L Ul5\".. ,.:., V~ ,.:., Agenda Item No, 16819 September is, 2009 Page 4 of 6 Approved By OMS Coordinator OMS Coordinator Date County Manager's Office Office of Management & Budget 9/2/2009 10:02 AM Approved By Mark Isackson Budget Analyst Date County Manager's Office Office of Management & Budget 9/2/2009 12:12 PM Approved By Leo E. Ochs, Jr. Board of County Commissioners Deputy County Manager Date County Manager's Office 9/2/2009 5:59 PM ~1_.110.\ A. ~__u..J_'T"__.....\T'__u_H.....\1""A C'! n/'-"'A1'- n/~r>..........r..r\.r>..\ 1 r ^/,................,....'" -.-_....-..... -.-~..... '....,... . _~_ ~ 4Cmmt.1 ~....~ AdninistJative Services Division Purcl1asing Agenda Itern No. 16819 September 15, 2009 Page 5 of 6 July 29, 2009 Mr. Robert Aull. Project Manager Metro Power Systems Inc. PO Box 6812 Fort Myers, FL 33911 Re: Letter of Commitment for the purchase of a generator for Collier Area Transit system building Dear Mr. Aull, In follow up to your previous conversations with John Clements, the Purchasing Department is forwarding to your attention this letter of commitment expressing Collier County's intent to purchase the following generator unit: (1) QST30-G1 (1800) 750KW Cummins Generator Set Engine Serial # 37198500 This unit is presently located at the Collier County Government Center. Pursuant to this commitment letter, Metro Power Systems Inc. will re-Iocate the generator to the Collier Area Transit Building located at 8300 Radio Road in coordination with Mr. Clements. The relocation of the generator is tentatively scheduled for Friday, July 31 st. In accordance with your price quotation of June 24,2009, Collier County intends to buy the generator from Metro Power Systems for the total price of $75,000. The agreed upon purchase price exceeds the purchase authority of County staff. Hence, staff will ultimately need to obtain the approval of the Board of County Commissioners for this transaction. The next meeting of the Board is scheduled for September 15, 2009. Subsequent to receiving appropriate authorization, the Purchasing Department will issue a purchase order to Metro Power Systems Inc. in the amount of $75,000 for the purchase. In the unlikely event that the Board for whatever reason elects not to authorize this purchase, Metro Power Systems will agree to remove the generator from the CAT facility within 15 days of being notified at no cost to Collier County. In accordance with customary practices, Collier County is requesting that Metro Power Systems furnish certificates of insurance that meet or exceed the following requirements: o $1 Million of general liability coverage o Identification of Collier County as an additional insured party for this coverage o $1 Million business auto coverage o Workers Compensation coverage (per Florida Statutes) (j) ~ 0eplwtrIft. 3301 Tamiami Trail East . Naples, Florida 34112, www.colliergov.netlpurtl\a$ing Agenda Item No. 16819 September 15. 2009 Page 6 of 6 Mr. Robert Aull, July 29, 2009 Page 2 of 2 Please forward these certificates of insurance to the attention of Lyn Wood, contracts specialist in the Purchasing Department as soon as possible. Should you have any questions concerning this commitment letter, please contact Lyn or me. Sincerely, ~#t U ,Qc,1/f{ Steve Carnell, t} Purchasing/General Services Director cc: John Clements, Facilities Management Michelle Arnold, Alternative Transportation Modes Department