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HomeMy WebLinkAbout8 Generator Maintenance Servicesenda Item # CONSENT To: Board of Directors From: Jim Wilson Date: August 01, 2018 Subject: Consideration of a Contract for Generator Maintenance Services 1. WHY THIS MATTER IS BEFORE THE BOARD Board authorization is required for procurements in excess of $15,000. 2. HISTORY The District owns and operates 25 large backup power generators that provide continuous electric service during power outages. These generators are located at critical facilities including water wells, water pump stations, District offices and the Backup Data Center. Backup generators help to ensure that the District can provide uninterrupted water service to our customers during power outages. They also enable staff to perform essential operations and provide customer service during electric outage events. Backup power generators require routine maintenace to ensure their continued reliability and longevity. 3. NEW INFORMATION Staff recieved a cost proposal from Cummins, Inc. of Sparks, Nevada to provide the District with the necessary generator maintenance services. The cost of performing planned maintenance for all District generators is $15,090. This includes checking fluids, belts, hoses, batteries, and taking oil samples for labratory testing. Additional full service may be required based on test results. Full service for all generators would be an additional $17,2410 Sourcewell, formerly National Joint Purchasing Alliance, competitively bid generator maintenance services from Cummins, Inc. and other vendors through a competitive bid process. Section 3.08.060 of the District code (Joint Purchasing with the State of California and other public agencies) permits the District to take advantage of other agencies low bids, providing that competitive procurement procedures were followed. Cummins, Inc. is a qualified Sourcewell vendor, and their cost proposal to the District is in conformance to the Sourcewell competitive bid. 4. FISCAL IMPACT Sufficient funds exist in the Board adopted Electric and Water Utility's FY18 budget for this procurement. 5. RECOMMENDATION Authorize the General Manager to execute a two year contract, with an option to Wend for the second year, with Cummins, Inc. for generator maintenance services, in an annual amount of $32,331, for a possible contract amount of $64,662 plus a 5% change order authorization for a total not to exceed contract amount of $67,895. L Joe Horvath Electric Utility Director Michael D. Holley General Manager